cybersecurity

China’s Ministry of Commerce pushes Chinese Chambers of Commerce to provide force majeure certificates to Chinese firms struggling to meet their contractual obligations due to disruptions caused by the coronavirus crisis. Wuhan Institute of Virology move to apply for a patent to use United States (US) firm Gilead’s remdesivir to treat pneumonia like symptoms raises intellectual property issues. Huawei’s Chief Representative to European Union (EU) institutions says the firm will build 5G manufacturing bases in Europe. US Attorney General Bill Barr advocates US and its allies taking controlling stakes in Nokia, Ericsson, or both to fend off Huawei 5G challenge. Japan’s Ministry of Defense reveals two new Japanese defense-related companies that suffered cyberattacks, without stating if classified information was leaked. Japanese company plans to cope with Brexit subject to change depending upon trade negotiations between the United Kingdom (UK) and the EU. Japan files petition with the World Trade Organization to challenge planned merger between Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering. Panama re-awards Metro Line 3 to Korean consortium, rejecting challenges from Chinese firms and a consortium with a Chinese company.

China’s Cyberspace Administration releases draft document stating, “operators of the country’s critical information infrastructure…will be required to take into account national security risk when purchasing foreign products and services.” A recent European Union (EU) Chamber of Commerce in China survey suggests the problem of forced technology transfers in China has worsened. The US is considering cutting off the flow of American technology to five other Chinese firms putatively because of these companies’ role in supporting Beijing’s actions in Xinjiang. With the United Arab Emirates (UAE) aiming to become a major China’s Belt and Road Initiative (BRI) partner, China’s East Hope Group conglomerate contemplates $10 billion port investment there. China’s chargé d'affaires in London warns if Huawei banned from Britain’s 5G network there might be “substantial” repercussions for Chinese foreign direct investment (FDI) in the United Kingdom (UK). The Japan unit of US e-commerce giant Amazon has decided to stop direct sales of all Huawei products through its online store. Mizuho Financial Group Inc. said it will tighten standards for lending to coal-fired power plants with high emissions of CO2. Renault Samsung workers in Korea reject draft wage and bargaining agreement which may lead to an “indefinite all-out strike” that drives the joint venture’s upcoming XM3 production to Spain. Iraq’s Ministry of Petroleum awards Korea’s Hyundai Engineering and Construction a $2.45 billion contract to build a seawater supply facility in Iraq.

The ongoing China-United States (US) trade war coupled with other economic and political factors drives more firms to consider other locations besides China. China moves to take more steps to protect intellectual property (IP), partly to assuage the concerns of foreign investors. China poured record amounts of investment into US start-ups last year despite Sino-American tensions, but there are dark clouds on the horizon especially in regard to investment screening. Security and other concerns lead US Federal Communications Commission hangs up on China Mobile’s effort to operate and offer service in the US. Not a single European country has joined Washington’s call to boycott China’s Huawei. Japanese banks move to improve their anti-money laundering and terrorist financing practices so as to increase chances of good Financial Action Task Force review. Japanese foreign direct investment in the US surges for political and economic reasons, with some “red states” seemingly benefiting from the former. Seoul police investigate if BMW Korea’s Chairman covered up automobile defects. Lotte Chemical launches USD $3.1 billion ethylene cracker complex in Louisiana with strong political support from Korea and the US.

Almost five dozen global business groups send letter to top Chinese officials asking China to postpone the implementation of its cybersecurity law. Foreign pharmaceutical companies seek new ways to get high off China’s pharmaceutical policy reforms. Several American senators scream that Ant Financial’s takeover of MoneyGram is a national security threat. Joint strategic and security concerns over China’s Belt and Road initiative drive Japan and India to engage in new economic partnership. China’s economic retaliation against South Korea following South Korea’s adoption of THAAD missile system decreases after the installation of a new Korean government. Daewoo E&C and Hanwha E&C partner with Saudi Arabian government to develop new Saudi Arabian city. Wanda Group Chairman meets with Malaysia’s Prime Minister and considers investment exceeding USD $10 billion in Bandar Malaysia development. Malaysia’s troubled carmaker Proton seeks to sell up to 51 percent stake to foreign investor. Survey shows that despite government encouragement to go overseas smaller Singapore businesses emphasize local investments. Vietnam’s President welcomes Chinese hi-tech investment as Hanoi pursues a green economy and economic growth. Transfer pricing continues to be a serious problem with foreign investment in Vietnam.