Dalian Wanda

MNCs in the News-2017-10-20

At 19th Party Congress, China promises greater market openness for foreign investors, but foreign businesses and governments cautious. Top China Banking Regulatory Commission (CBRC) official says foreign banks may get more latitude in entering and operating in China’s banking sector. Chinese outward foreign direct investment (FDI) plummeted 41.9 percent over the first nine months of 2016 year-over-year. In the first three quarters of 2016, Chinese outward merger and acquisitions activity drops significantly in both deal volume and size. Toyota and Mazda seek USD $1 billion incentive package from US states bidding for their joint car factory. SoftBank Group struggling to carry out US investments after several of its deals have been caught up in the CFIUS review process. US Department of Justice demands Kobe Steel release all information related to it falsified steel and metal data. SK-Sinopec JV to expand its Wuhan Petrochemical plant mirroring success of SK Innovation’s China Insider strategy. Korean battery manufacturers finding backdoors into the Chinese market despite Chinese government’s preferential treatment of domestic firms. Indonesia works to attract private investment despite bad atmosphere created by problems with Freeport-McMoran. Freeport-McMoRan facing labor union protests over anticipated layoffs. New US-Thai joint committee formed to increase bilateral investment following Thai Prime Minister’s recent US visit. Malaysia’s Ministry of International Trade and Industries leads trade mission to Europe to attract German investment. MITI reports a decline in investments this year. Vietnamese government begins implementing its divestment plan for Dung Quat Oil Refinery, attracts foreign investors. Foreign brewers eagerly awaiting Vietnamese government’s divestment plans for country’s largest domestic brewer Sabeco.

MNCs in the News-2017-08-11

Beijing’s actions to curb overseas foreign direct investment (FDI) by private firms coupled with other factors generate uncertainty among potential Western investment targets. American credit/debit card companies Visa and MasterCard move to gain access to China market, but licensing uncertainties remain. Nissan to sell battery subsidiary to Chinese private equity firm, following recent Chinese government policy changes on purchase of batteries for electric vehicles. Facing pressure to invest in US, Toyota and Mazda plan USD $1.6 billion partnership to establish US based electric vehicle production plant. SK Engineering & Construction Co. announces deal to upgrade Iranian oil plant, reflecting Teheran’s bid to bring in foreign companies to boost its oil industry. Daewoo Engineering & Construction and Samsung Engineering win mega construction projects in Oman. Vale Indonesia experiencing difficulties finding nickel smelter partners for new investments after rule change. Indonesian President courting China for investment but concurrently preparing the military for potential confrontation. EXIM Thailand plans to open new branches in Cambodia and Laos to support outward FDI by Thai firms. China and Malaysia launch USD $13 billion rail project connecting peninsular Malaysia's East and West. Mitsubishi’s CEO tells Vietnamese Prime Minster it plans to produce electric vehicles in Vietnam. Long Son Petrochemical Co Ltd announces Hyundai Engineering and Construction won building contract for petrochemical plant in Vietnam.

MNCs in the News-2017-07-28

The China Banking Regulatory Commission moves to allow foreign banks to purchase Chinese lenders through a locally incorporated subsidiary. Analysis claims China is cracking down on acquisitive private actors, so-called “Grey Rhinos,” because of risks they pose to the Chinese economy. The United Kingdom is moving to tighten its foreign investment regime partly to deal with investors like China which have been investing in sensitive areas. Toyota to produce electric vehicles in Thailand to take advantage of various economic incentives. Consortium led by government sponsored Innovation Network Corp. of Japan announces final bid for Toshiba's flash memory division. South Korea following up on USD $10 billion infrastructure development deal with India. Recent data reveals Korean companies increased spending on US lobbying after inauguration of US President Donald Trump. Indonesian Investment Coordinating Board says Singapore remains largest investor in Indonesia, with Chinese investment increasing in both quantity and quality. Thailand’s Board of Investment confident overall applications for investment privileges will reach target of USD $18 billion in 2017. Malaysia’s Second Finance Minister states country has some well-run government-linked companies and rebuts concerns about Chinese investment. Two Japanese and seven Chinese state-owned enterprises bid for Bandar Malaysia project. Vietnam Steel Association proposes limiting foreign investment to certain kinds of steel projects.

MNCs in the News-2017-07-21

In rare praise for foreign firms, Chinese President Xi Jinping lauds their contribution to China and says the Chinese government must do more to attract and retain them. The China Banking Regulatory Commission imposes strict limits on Chinese banks providing support for overseas deals by Dalian Wanda. Some feel the United States (US) Committee on Foreign Investment in the United States is becoming stricter which, in turn, may hinder Chinese investment flows in the US. Toyota continues USD $310 million UK plant expansion after receiving Brexit reassurances from British government. Japanese financial institutions move to set up subsidiary businesses in the EU as Brexit jeopardizes their financial services licenses. Hyundai to open fifth Chinese assembly plant as compact vehicle sales are expected to rise before Chinese government’s increase in purchase taxes next year. South Korea’s Nexen Tire Corp. signs memorandum of understanding with United Arab Emirates’ state-owned Mubadala Development Co. Indonesian branch of ExxonMobil drops talks on East Natuna natural gas block, with Jakarta saying it intends to invite firm to discuss project again. Economist says Malaysia to become key economic corridor because of strong economic fundamentals, strategic geographical location and Prime Minister’s diplomatic efforts. China’s restrictions on bank loans to Dalian Wanda Group diminish prospects of Bandar Malaysia project. Vietnam’s Prime Minister signs decision to boost his country’s solar power development which is spurring much foreign investor interest. At HCM City conference, Laotian provinces court investment from Vietnam.

MNCs in the News-2017-03-03

China’s elderly care needs create space for foreign investors. China’s efforts to control capital flight are leading to increased bureaucratic review and deal delays. Japan’s Takata Corp. enters into a settlement pursuant to which it accepted a felony charge and will create two compensation funds worth USD $1 billion. Nissan Motor Co. faces fines relating to worker injuries at its Mississippi and Tennessee auto factories. Despite the threat of Chinese sanctions, Lotte Group exchanges land with the Korean government that the latter wants for its THAAD missile system deployment. In the face of US President Donald Trump’s threat of tariffs on goods imported from Mexico, LG Electronics announced plans for a home appliance plant in Tennessee that will produce for the US market. Freeport McMoran and Indonesia battle it out with some optimistic a settlement will be reached and others fretting about adverse political and economic consequences for Indonesia. Saudi Arabia and Indonesia strike numerous deals following King Salman’s visit to the latter, though Indonesia hopes for tens of billions of dollars more.

MNCs in the News-2017-02-17

American business community becomes more favorable towards “reciprocity” policy towards China. Hejun Vanguard Group files complaint against sale of McDonald’s China and Hong Kong assets. Chinese firms’ pursuit of investment in critical sectors leads Germany, France, and Italy to ask European Union (EU) to give it more powers to investigate and block investments. The United States (US) Federal Trade Commission asks Syngenta for more information regarding its proposed acquisition by China’s ChemChina. In the face of potential restrictions on Chinese firm investments in non-core businesses, Dalian Wanda eyes European bank deals. Japanese companies face investigation by South Korea’s transport ministry which has begun to investigate more firms in the wake of the Volkswagen emission manipulation scandal. Toshiba will remove itself from work on the UK’s new Moorside nuclear plant. South Korea’s Korea Electric Power Corp. (KEPCO) has started its first wind power plant in Jordan. Korean outward foreign direct investment (FDI) grows significantly in 2016 with a large increase in money flowing to the US. Indonesian loosening of ban on raw mineral ore exports has many implications. Indonesian regional elections have big implications for Indonesia’s inward FDI (FDI)

Dr. Jean-Marc F. Blanchard's picture

Freedom is Slavery: Localization and CSR Strategy

Dr. Jean-Marc F. Blanchard
Posted: Jul 30, 2016

Chinese companies like Bright Foods, Dalian Wanda, Fosun Group, Midea, and State Grid have been active buyers of European companies over the past few years. In 2014, they invested USD $18 billion while in 2015 they poured $23 billion into Europe.

MNCs in the News-2016-07-15

China’s State Administration of Taxation has issued new guidelines for evaluating domestic and foreign companies’ tax performance. Under pressure, IKEA agrees to massive recall of Malm products in China. Anhui Jianghuai Automobile Co. stops producing the iEV6s sport utility vehicle featuring Samsung SDI’s batteries because the Chinese government did not approve the Samsung SDI battery possibly to retaliate against South Korea’s decision to accept the THAAD system. American Enterprise Institute analysis finds large percentages of Chinese outward foreign direct investment (FDI) in 2016 are for mergers & acquisitions, by private firms, and going to the US. China to make good on its promise to invest $2.21 billion in European Fund for Strategic Investments. For some, Chinese investments in film sector raise questions about China’s impact on film distribution and content. After Brexit, Japanese car makers forced to revisit the logic of their investments in the United Kingdom. Korea’s Ministry of Environment will impose a series of harsh penalties against Volkswagen for the latter’s fraud regarding noise and gas emission data. Korea’s Fair Trade Commission is likely to impose a nearly $900 million fine on Qualcomm for the latter’s abusive technology licensing practices. Indonesian government seeks billions of dollars in investment to help develop tourist zones. Vietnamese government targets greater tourism sector investment. Vietnam seeks foreign investment to plug it highway system funding gap.