China

MNCs in the News-2019-07-12

Inward foreign direct investment (FDI) flows into China continue to grow, especially in the high-tech sector. Chinese Ministry of Commerce (MOFCOM) official states that Inward FDI (IFDI) is not leaving China en masse and that China will “protect the legitimate rights and interests of foreign investors.” Chinese outward FDI (OFDI) to Europe and North America over the first six months of 2019 shows a noticeable decrease over the same period the prior year. Despite a spying incident and Poland’s President saying he was opposed to Chinese OFDI (COFDI) in strategic infrastructure, Poland’s Foreign Minister told visiting Chinese State Councilor Wang Yi Poland is open to COFDI. Korea reacts strongly to Japanese media report in which a senior member of Japan’s Liberal Democratic party charged dual-use chemicals exported to South Korea ended up in the North. Japan is surprised at Seoul’s strong response to it instituting tighter controls on the export of certain chemicals to South Korea and Seoul making the issue a World Trade Organization (WTO) issue. Japan moving towards a formal WTO case regarding Seoul’s provision of subsidies to South Korean shipbuilders. Hyundai Engineering and Construction signs a $2.7 billion contract with Saudi Aramco for two projects relating to a massive oil and gas refining complex.

MNCs in the News-2019-07-05

Chinese Premier Li Keqiang announces China plans to create a better environment for foreign direct investment (FDI) in China. China’s financial opening leads various foreign investors to move to take control of their China joint ventures (JVs). Chinese outbound mergers and acquisitions (M&A) volume for the first six months of 2019 is the lowest since 2013. During a visit to China, Turkey’s President works to attract Chinese FDI and take advantage of the Belt and Road Initiative (BRI). With the activities of information technology giants gaining increased Japanese government scrutiny, the Japan unit of Facebook joins Keidanren. Japan’s export curbs on semiconductor materials bound for South Korea due to their dispute over forced labor compensation could pressure Samsung and the broader Korean economy. Japanese export controls on high-tech materials and chemicals used in South Korean semiconductor and smartphone manufacturing will stress Korean companies already feeling market and trade pressures. After a gathering between United States (US) President Donald Trump and the heads of major South Korean business groups, some Korean firms stated they would boost their US investments.

Executive Director Dr. Jean-Marc F. Blanchard invited to participate on panel for Bay Area Council “2019 California Technology Business Matchmaking” forum (Shanghai, China)

On June 24, Dr. Jean-Marc F. Blanchard, Executive Director of the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations, participated on a Panel entitled “Exploring the Benefits and Challenges of Cross-Border Collaboration on Innovation” at the Bay Area Council orchestrated “2019 California Technology Business Matchmaking” forum in Shanghai, China, which included entrepreneurs, investors, consultants, government officials, and industry association representatives. As part of the panel, Dr.

Dr. Jean-Marc F. Blanchard's picture

Belt and Road Forum II, Part III-Quality Quashes Quantity? Quackery!

Many observers viewed the 2nd Belt and Road Forum (BRF) as a time for China to make amends, at least verbally, for the shortcomings of its Belt and Road Initiative (BRI), which has been associated with inter alia corruption, excessive debt burdens, environmental damage, opacity, and the displacement of local labor.

MNCs in the News-2019-06-28

President Donald Trump’s tough stance on intellectual property rights (IPR) violations seems to be driving China to treat foreign IPR more respectfully. At the Osaka G20 Summit, Chinese President Xi Jinping announces several measures China will undertake to open its market further to foreign direct investment (FDI) and improve IPR protection. This past week witnessed the creation of the Belt and Road Economic Information Partnership (BREIP). Two major BRI projects in Africa end. At the Osaka G20 summit, participating countries embrace Japan’s international principles for quality infrastructure. Japan tells two leading candidates for the British Prime Ministership it does not want a “no deal Brexit.” As part of its downstream growth and diversification strategy, Saudi Aramco and its affiliates have signed a dozen accords with South Korean companies covering sectors areas like shipbuilding, engine manufacturing, and petrochemicals. A consortium involving Korea Hydro & Nuclear Power (KNHP) and KEPCO Plant Service & Engineering (KPS) signs a five-year maintenance service deal for the Barakah nuclear power plant, but fails to garner responsibilities for maintenance services, nuclear scientists, and engineers.

MNCs in the News-2019-06-21

China Premier Li Keqiang works to lure foreign direct investment (FDI) during the Global CEO Council in Beijing. In 2018, the deal value of European mergers and acquisitions (M&A) activity in China soared by 856 percent to USD $9.94 billion. European Union (EU)-China talks on a Comprehensive Agreement on Investment and China’s negative list show better progress than expected. Brazilian Vice President welcomes Chinese FDI in infrastructure as long as it creates jobs and respects Brazilian rules. Around the time of the G-20, French President Emmanuel Macron will discuss issues about the Renault-Nissan alliance with Japanese Prime Minister Abe Shinzo. Numerous Japanese corporate subsidiaries in the United States have voiced opposition to Donald Trump’s proposal to slap tariffs of 25 percent on another $300 billion of Chinese products. Tokyo has requested Seoul to establish an arbitration panel consisting of representatives selected by other countries to help deal with their wartime forced labor compensation dispute. Seoul prepared to block a deal that would sell Taihan Electric Wire to a Chinese company because it deems Taihan’s high-voltage cable technologies a “‘national core technology.’”

MNCs in the News-2019-06-14

People’s Bank of China willing to back “pilot program based in Shanghai to remove the foreign ownership limit in firms providing securities and fund management services.” According to China Ministry of Commerce report, the growth rate of United States (US) foreign direct investment in China seems to be slowing. Chinese firms have been become increasingly active in hydropower sector overseas. Shanghai’s new technology board seen offering opportunities for Chinese firms encountering limits in dealing with the US or US companies. Tokyo Electron not to supply “Chinese clients blacklisted by Washington.” Japan’s Inpex ready to agree in principle with Indonesia to build a USD $18.4 billion liquefied natural gas plant. Renault Samsung Motors union cancels plans for an all-out strike due to workers going on strike against union management. LG Chem forms 50-50 joint venture with China’s Geely to position itself for new market opportunities after Chinese government electric vehicle battery subsidies cease.

MNCs in the News-2019-06-07

China’s Ministry of Commerce (MOFCOM) reports United States (US) tariffs on Chinese goods have not significantly affected the country’s flows of inward foreign direct investment (FDI). MOFCOM announces China will blacklist “unreliable” foreign businesses which violate market rules, take discriminatory measures hurting Chinese business rights and interests, or threaten China’s national security. China’s plan to build a $1.9 billion light-railway system in Kazakhstan has stalled as China Development Bank cuts off funding due to possible corruption problems. China keeps open non-money-making Vietnam-China Economic and Trade Cooperation Park (VCEP) because of VCEP’s contribution to better image of Chinese FDI. Japanese and other multinational corporations call for more standardized and clearer rules and greater freedom for data transfer and storage. Airbnb experiences revival in Japan after new regulations caused tens of thousands of listers to check-out. Recent arrests of several Samsung Electronics senior executives for an alleged accounting fraud may distract Samsung from taking advantage of the woes of major competitor Huawei. In light of its recent retreat from overseas ventures, Korea National Oil Corp.’s announcement it planned to invest roughly USD $253 million in the UAE in an oil development project has caused controversy.

Executive Director Dr. Jean-Marc F. Blanchard gives invited speech for “China Crossroads” Talk Series (Shanghai, China)

On May 29, Dr. Jean-Marc F. Blanchard, Executive Director of the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations gave a speech entitled “Belt and Road, Neither Boom nor Bust: The Continuing Relevance of Politics and Economics” for the popular “China Crossroads” Talk Series. Dr. Blanchard addressed the heated debate about if China’s Belt and Road Initiative (BRI) is booming, on the road to stagnation, or, worse, failure and sought avoid the problem of overly broad BRI treatments by concentrating on China’s Maritime Silk Road Initiative (MSRI). Dr.

Executive Director Dr. Jean-Marc F. Blanchard gives invited talk for UNNC Faculty of Humanities and Social Sciences’ Distinguished Speaker Series (Ningbo, China)

On May 8, the Executive Director of the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations Dr. Jean-Marc F. Blanchard was invited to give a talk for the University of Ningbo Nottingham China (UNNC) Faculty of Humanities and Social Sciences’ Distinguished Speaker Series. Dr. Blanchard spoke about China and Global Economic Governance (GEG), specifically focusing on China’s stance towards inward foreign direct investment (FDI) as a way to gauge the extent to which China is a status quo, revisionist, or revolutionary player with respect to GEG.

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