China Ministry of Commerce

MNCs in the News-2016-04-22

China’s Ministry of Commerce underscores reasons to be optimistic about inward foreign direct investment flows into China. China experiences a massive creation of foreign-funded enterprises between 2011 and 2015. China’s National Development and Reform Commission will test a “negative list” approach in Fujian, Guangdong, Shanghai, and Tianjin. The American Chamber of Commerce in China expresses concern about China’s policies and what it sees as a lack of serious commitment to reform. In testimony before Congress, Apple denies that it had provided iPhone source code to China. Chinese anti-trust investigators now seem to be turning their attention to Korean firms after targeting German and Japanese firms. China’s Chinese outward foreign direct investment (COFDI) and M&A deals show significant growth in the first quarter of 2016. EY forecasts strong Chinese outward FDI growth averaging 10 percent partly because of the One Belt, One Road program. South Korea’s Fair Trade Commission reports it succeeded in getting Apple to revise the problematic Authorized Service Agreement it had concluded with six Korean repair service providers. Government data indicates the Korea-China Free Trade Agreement is stimulating COFDI into Korea. Indonesia’s President Joko "Jokowi" Widodo will visit four European countries to promote European investment in Indonesia. Denmark concludes Memorandum of Understanding with Indonesia involving capital and technology in exchange for land. Experts call for Vietnam to be more selective in granting tax incentives to foreign investors and encourage it to strengthen its FDI management capabilities. Myanmar grants a license to Vietnam’s military-run Telecommunications Group (Viettel) to build a multi-billion dollar telecommunications network.

MNCs in the News-2016-03-18

Chinese Ministry of Commerce spokesman voices confidence China will remain attractive to foreign investors and promises new efforts. China’s State Power Investment Corp. buys Taralga Wind Farm project for nearly $230 million. Former Turkish energy minister expects China to bid aggressively during the bidding process for Turkey’s third nuclear power plant. China’s Three Gorges International Corp. will bid on Brazil’s Tapajos hydroelectric dam project. Japan’s Toshiba reveals that US Justice Department and US Securities and Exchange Commission are investigating the accounting practices of its US units. Political infighting in Indonesia results in postponement of major oil bloc development by Japan’s Inpex. Japanese firm partners with government controlled Indian private venture on major wind power project across seven Indian states. Bank of Tokyo-Mitsubishi UFJ will become the first Japanese lender to provide Islamic compliant financing through an overseas branch. Influx of Japanese businesses into Myanmar’s Thilawa special economic zone drives drives Myanmar’s CB Bank to open a branch there. Korea Electric Power Corporation (KEPCO) has signed a Memorandum of Understanding with Ecuador linked to its plans to build EV charging infrastructure operation systems in the country. The Korea Rural Community Corporation is expected to secure a government of Gujarat (India) contract for the construction of the Kalpasar sea wall project. Indonesia aims to bring more European investment into the country. The President of the European Association for Business and Commerce called upon the Thai government to embrace a number of changes in order to draw more investment.

MNCs in the News-2016-03-11

China’s Ministry of Commerce (MOFCOM) reports that foreign direct investment flows into China topped USD $22.5 billion in the first two months of 2016. Bristol-Myers Squibb moves to deal with fallout of US Securities and Exchange Commission (SEC) Foreign Corrupt Practices Act settlement relating to its China joint venture. Chrysler to recall nearly 21,000 vehicles in China that have an oil pipe defect. Chinese outward foreign direct investment (COFDI) soars YOY with smaller and private enterprises becoming more important proportionally. Statistics for 2015 show strength of COFDI in Europe. China sees room for more COFDI in Russian agriculture as well as agricultural cooperation. Some believe COFDI in the US has the potential to influence voting patterns in some localities. Chicago Transit Authority awards CSR Sifang America a USD $1.3 billion railcar supply order. Mitsubishi partners with Korean firm on government awarded coal-fired power plant project in Vietnam. Foreign businesses in Korea voice concern about the discretionary legal and regulatory environment and call for greater stability. Korea Trade-Investment Promotion Agency has concluded a Memorandum of Understanding with Italy’s SIMEST that will facilitate more Italian investment in Korea. Korea and Egypt expand their bilateral cooperation increase infrastructure and cooperation opportunities for Korean firms in Egypt. The liberalization of Indonesia’s cinema sector draws increases foreign investor interest in cinema screen construction in the country. The Thai Business Development Department (TBDD) and Franchise License Association (FLA) will cooperate to assist franchise business operators conduct business in ASEAN countries, China, and Japan. State Railway of Thailand (SRT) governor welcomes foreign construction companies to participate in government investment projects provided they find a Thai partner and obey Thai rules and regulations.

MNCs in the News-2016-03-04

According to China’s Ministry of Commerce, China plans to “lower entry barriers for foreign investors.” MOFCOM representatives also indicate that “China will support foreign participation in its drive to reform state owned enterprises (SOEs).” Foreign Ambassadors present letter to China’s Ministry of Public Security to express their anxieties about China’s new counterterrorism law, draft security law, and draft law on the management of foreign non-government organizations. Qualcomm reaches settlement with U.S. Securities and Exchange Commission regarding allegations of improperly hiring the relatives of Chinese officials and giving lavish gifts. According to news reports, in contrast to its battles with the US FBI, Apple is showing great flexibility towards the Chinese government. Three members of the US Congress ask for increased scrutiny of Zoomlion’s purchase of US Terex Corp. Problems caused by increased scrutiny of Chinese outward investments led to deals with unusual termination fees and deal terms. Massive Chinese state-owned enterprise investments in Europe fuel concerns. Olympus Corp. will pay the US Justice Department a $623 million fine due to kickback payments and its giving of luxurious gifts. Korean government-business delegation journeys to Iran and concludes numerous deals. A South Korean wins Bolivian deal to build a new city in Bolivia. Indonesia plans to set up a “China Desk” to better Chinese investors. Vietnam shows substantial increases of FDI during the first two months of 2016. Vietnam needs to provide more information to solve problems of foreign investors.

MNCs in the News-2016-02-19

China’s State Council will work to expand service and merchandise trade by giving foreign businesses new opportunities. Chinese Ministry of Commerce think tank researcher expects Chinese outbound M&A to hit new record in 2016. Regulatory issues in China and abroad appear to impact some Chinese outward foreign direct investment (FDI). Industrial and Commercial Bank of China Europe) and the Chinese embassy in Spain scramble to react to Spanish police raid in connection with suspected money laundering by ICBC Madrid. COSCO formally declared the preferred bidder for the privatization of of Greece’s Piraeus port. Visit of South Korea’s Trade Minister to eBay Korea’s Incheon facility leads the latter to promise to help small Korean merchants tap the online export market. Volkswagen Korea faces ongoing pressure from Korean regulators in connection with recall orders relating to its emissions-data cheating cars. South Korean outward FDI experiences strong growth in 2015. South Korea accuses North Korea of using Kaesong moneys for its military programs. Korean government agencies mobilize to encourage foreigners to participate in the development of Korean startups. Indonesia’s e-commerce sector lauds government’s plan to open the e-Commerce to FDI. Indonesian president tells businesspeople at US-ASEAN Business Council Conference that his country will undertake more FDI-related reforms. Thai officials express optimism about the Thai-Chinese negotiations about a medium-speed rail project. Vietnamese and American companies strike numerous deals on the sidelines of the US-ASEAN Summit. Vietnam’s southern Binh Dinh Province will take steps to attract more FDI.

MNCs in the News-2016-01-08

China’s inward foreign direct investment in 2015 hits record levels. China plays hard with Mister Softee. Uber Technologies hails local partners to build up its presence in China and win favor with local governments. Japanese firm becomes first foreign firm to obtain permission to sell automobile insurance in Myanmar. Korean construction firms witness dramatic drop in overseas construction contracts. Indonesia does not necessarily subscribe to Netflix’s planned entry into the country. New Thailand-Singapore double taxation treaty has important implications for Thai investment in Singapore. Singaporean health care players stand ready to exploit a more favorable environment in China’s health care sector. FDI flows into Vietnam hit record in 2015. Vietnam’s State Bank of Vietnam publishes rules about foreign financial institutions planning to establish non-banking financial companies

MNCs in the News-2015-12-18

Inward FDI in China continues to show growth year-over-year. European Chamber of Commerce in China President questions China’s interest in attracting foreign investment. Chinese NGO files a lawsuit against VW for its emissions testing cheating fraud. At the 2nd World Internet Conference (WIC), China’s President Xi Jinping promises to protect foreign companies’ legal rights. At the WIC, the Cyberspace Administration of China announces “China will manage cyberspace according to the rule of law, while providing more room for development based on the market” while President Xi stresses cyber sovereignty and the avoidance of internet hegemony. China shifts “Ten-Year Review of the World Summit on the Information Society” in a direction more to its liking. Microsoft partners with Chinese company to create joint venture that will allow it to sell Windows 10 to government market. AstraZeneca to increase investment in China. Chinese outward FDI for the first 11 months of 2011 exceeded $104 billion. Sinopec to build a fuel station on Woody Island in the South China Sea. Australia’s Defense Department strongly criticizes anxieties about the security implications of a long-term lease of a port in northern city of Darwin to a Chinese firm. Chinese state-owned enterprises purchase significant Australian infrastructure assets. Japan provides massive concessional loan to support India’s construction of its first bullet train. French government pledges not to interfere in Nissan. Japan looks to win Singapore-Malaysia bullet train project. Korean government will create industrial complexes in China and Vietnam and business centers around the world to help Korean firms expand abroad. Changes in Korean cloud market draw substantial foreign investor interest. South Korea gives China Everbright Bank permission to set up a branch in Seoul. Indonesian think tank calls for government to move against Freeport Indonesia contract extension.

MNCs in the News-2015-12-11

Cisco says it will give its source code to no one while seeking a “win-win” arrangement with China. Chinese media report that Google has set up a shell company in the Shanghai Free Trade Zone. Chinese Ministry of Commerce (MOFCOM) official says that the government will work to facilitate greater outward investment by Chinese firms. Chinese nuclear firms radiate over opportunities presented by China’s Silk Road Economic Belt and 21st Century Maritime Silk Road Initiative. Taiwan struggles to set policy regarding mainland Chinese investment in its chip sector. Chinese firms look to expand abroad to escape limits on their ability to test and sell GMO crops at home. Following the China-Africa summit, Chinese firm wins new railway deals with Kenya. Japan to sign major high-speed rail contract with India. Japanese firms will participate in Brazil urban rail projects. Korean Finance Ministry will create a major fund to support Korean businesses in China. Samsung Engineering scores major petrochemical project awards from Petronas. Nestle acknowledges some working in its Thai seafood supply chain are treated like modern-day slaves. Former Malaysian (Sabah) Chief Minister believes government can create the conditions facilitating a Chinese firm building a bridge connecting Labuan and Sabah. China Railway Engineering Corp. makes investment in Malaysia to lay a possible foundation for bidding on a high-speed rail link between Kuala Lumpur and Singapore.

MNCs in the News-2015-12-04

China’s General Administration of Quality, Supervision, Inspection, and Quarantine announces recall of more than 10,000 Mercedes cars due to airbag defects. China moves to develop “Made in China” drugs. China’s rising overseas economic presence reflected in its negotiations with Djibouti to build a logistics hub. Top Chinese Ministry of Commerce (MOFCOM) leader highlights potential for further Chinese investment in Africa. At the latest China-Africa Cooperation Summit, Xi Jinping oversees expansion of Chinese economic cooperation with South Africa and other African countries. Ambitious $50 billion Nicaragua canal plan delayed by at least one year, intensifying doubts about its viability. Sino-Russian joint venture (JV) set up to build rail equipment for Moscow-Kazan high-speed rail line. Xiamen University to invest in campus in Malaysia that will support the One Belt, One Road (OBOR) initiative. Bank of China facing $50,000/day fine under US District Court contempt order. Nissan moves to limit French government and Renault interference in Nissan-Renault alliance. Japan agrees to provide funding to Indonesia for various mass transit and power projects. Japanese firm lands power deals with Botswana. British firms eager to exploit public-private partnership opportunities in Thailand. Thai Prime Minister emphasizes need for Thai-China railway to move forward. Indonesian government seems reluctant to start early negotiations with Freeport-McMoRan about the Grasberg mine. Vietnam reports significant increase in foreign direct investment inflows up to November 2015.

MNCs in the News-2015-11-27

Google Play app store ready to play in China. Chinese investment in the American financial sector dwarfs American investment in the Chinese financial sector. U.S.-China Joint Commission on Commerce and Trade meeting reportedly yields agreement on the protection of trade secrets and opens Chinese market further to certain types of American firms. Payoff of GlaxoSmithKline’s measures to recover from its 2014 China bribery scandal remain unclear. MOFCOM touts China’s opportunities to Japanese firms and hopes they will invest in “emerging sectors.” Premier Li Keqiang says China will invest $1 trillion overseas in the next five years. Chinese outward foreign direct investment (FDI) and contract work continues to record impressive results. Chinese firm private firm outward FDI (OFDI) shows impressive growth. Chinese OFDI in Africa, though, collapses. China promises $10 billion in infrastructure loans to Association of Southeast Asian Nation countries. Chinese train company motoring along in Malaysia. China National Corporation for Overseas Economic Cooperation fires up over Mexican energy sector investment. Chinese companies power up nuclear energy cooperation with Argentina. Japan opens its purse strings to win more infrastructure deals and counter China. Japan expresses its displeasure to Indonesia about Indonesia’s awarding of a high-speed rail contract to China. Japanese public private fund steps forward to finance Texas high-speed rail. Indonesia will act to revise its negative investment list to exclude e-commerce companies.

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