debt trap

MNCs in the News-2020-04-03

Shanghai touts the signing of USD $16 billion in foreign direct investment (FDI) deals as well as a new investment platform. China’s Ministry of Commerce (MOFCOM) will move to open the oil and gas industry chain in East China’s Zhejiang Pilot Free Trade Zone (FTZ) to, among other things, bring in strategic FDI. Senior managers at the Gwadar Port in Pakistan state the coronavirus has not had a serious negative effect on the port’s operations. Hungarian government moves to classify details of loan to finance Budapest-Belgrade rail project, arguing it would help it secure the loan. The production of Japanese automakers in China plummets in February and global output likely to drop due to factory shutdowns in the United States (US) and Europe. Asashi Group (Japan) has received approved from Australian competition authorities to complete its purchase of Australia’s Carlton & United Breweries subject to certain divestitures. Korea’s HDC Hyundai Development Co. acquisition of Asiana Airlines slowed due to delays in competition authority review work resulting from the coronavirus. Korean battery manufacturers in China to benefit from Beijing’s extension of electric vehicle (EV) battery subsidies because they include foreign battery makers.

MNCs in the News-2019-12-13

UIBE Institute of International Economy 2019 Foreign Direct Investment (FDI) report recommends China do more to enhance the business environment for FDI such as allowing the market to play a greater role in the allocation of resources. Chinese government orders all government offices and public institutions to remove foreign computer hardware and software by 2022. United States (US) National Defense Authorization Act bans use of federal funds to purchase buses and passenger cars made by Chinese manufacturers, which will hurt BYD’s US operations. Pakistan established new China-Pakistan Economic Corridor (CPEC) authority to expedite the progress of the initiative. Labor Union at Uber Eats Tokyo cannot stomach the latter’s unilateral decision to lower the base pay of workers. Australian Competition and Consumer Commission suggests too early for Asahi Group to toast its plan to buy Anheuser-Busch InBev’s local Australia operations. South Korea’s reported inward FDI (IFDI) tops USD $20 billion for the fifth consecutive year, though realized IFDI often falls far short of reported figures. Korean consortium HPH Joint Venture may lose multi-billion bid to build metro in Panama due to reported Chinese pressures for a review of the bid award.

MNCs in the News-2019-11-01

Chinese Vice Minister promises better treatment and protections for foreign direct investment (FDI), no forced tech transfers, and more rapid opening of financial sector. United States (US) contemplates new methods for increasing China’s protection of US intellectual property (IP) such as blacklisting repeat IP right violators. Chinese Ambassador in Malaysia stresses the needs for Chinese companies to deliver the goods as well as respect local laws and customs. Massive Laos high-speed rail project has many problems and multiple critics, but likely to continue given country’s desire to surmount its landlocked status. Japan’s Finance Ministry works to counter anxieties about Japan’s new FDI review regime by, among other things, providing more specifics. Toyota breaks with Honda about backing California’s new automobile emissions standards. Executives at Samsung Electronics and Samsung BioLogics faced serious accounting fraud charges relating to the revaluation of a stake in a US joint venture. Rising number of Korean firms in China report that they are increasingly affected by US-trade war.

MNCs in the News-2019-08-30

China’s plan to apply its social-credit system to foreign companies is raising concerns about possible abuses. China’s State Council announces it will establish pilot free trade zones (FTZs) in Shandong, Jiangsu, Guangxi Zhuang, Yunnan, Hebei, and Heilongjiang. United States (US) companies likely to stay in China despite trade war, a problematic regulatory environment, and US President Donald Trump’s call for them to leave. Although frictions over maritime issues remain unsettled, Chinese President Xi Jinping proposes joint oil & gas development in Reed Bank area to visiting Philippines’ President Rodrigo Duterte. Japan is paying more attention to tax shifting activities by high-tech companies and has recently forced Facebook to pay more in taxes for some questionable tax shifting activities. After the 7th Tokyo International Conference on African Development (TICAD), Japan and 53 African countries signed the Yokohama declaration which stressed “‘quality infrastructure investment.’” South Korea’s new policy for network fees has led to frictions with Facebook and service problems that led to fines which Facebook fought successfully in court. The Korea Startup Forum, the Korea Internet Corporations Association, and local and foreign content providers have called upon the South Korean government “to completely overhaul its network fee calculation structure.”

MNCs in the news-2019-05-03

Inward foreign direct investment (FDI) into China shows decent growth in the first quarter of 2019 with United States (US) FDI showing particularly strong growth. China announces moves to open its banking and financial sectors further. The United Arab Emirates (UAE)’s strategic location allows it to snare USD $3.4 billion Belt and Road Initiative (BRI) deals. Cambodia throws the dice for more China FDI deals while shifting further away from the European Union (EU). Japan ponders proposing rules to increase transparency and responsible financing for infrastructure investment in developing countries during the upcoming Group of 20 (G-20) summit. Lawyers representing South Koreans forced to labor for Japanese corporations during World War II requested a court to sell assets seized from relevant Japanese firms. South Korea Prime Minister Lee Nak-yon lobbies Kuwait to allow more South Korean companies to participate in infrastructure project in the country.

Dr. Jean-Marc F. Blanchard's picture

Belt and Road Forum, II, part I-Cleaning Up the House

At the recent Belt and Road Forum, Chinese President Xi Jinping stressed China would adopt a zero-tolerance policy towards corruption regarding its Belt and Road Initiative (BRI).

MNCs in the News-2019-01-25

Sinochem’s chairman predicts Chinese foreign direct investment (FDI) abroad will decrease due to trade tensions with the United States (US) and China’s domestic economic slowdown. Former China Securities Regulatory Commission (CSRC) chairman says China should make sure that its investment and financing projects meet international standards to quieten overseas criticism of the Belt and Road Initiative (BRI). The chairman of DP World warns other countries to be careful of China because of the latter’s predatory practices. Former People’s Bank of China official opines restrictions imposed by Western governments on Huawei could lead to it significantly reduce investments in Silicon Valley. Japanese firms cautious about boosting investment given China-US trade war and uncertainty about the global economy. Sony to move its European headquarters from the United Kingdom (UK) to the Netherlands to avoid disruptions that might result from “Brexit.” South Korea will offer support for overseas construction and plant orders to offset weakening exports caused by the global trade disputes and China’s economic slowdown. South Korea’s major business associations and the Presidential Committee on New Southern Policy form alliance to help Korean entrepreneurs seek better opportunities in the Association of Southeast Asian (ASEAN) market.