economic sanctions

MNCs in the News-2019-01-11

During a meeting with Tesla CEO Elon Musk, Chinese Premier Li Keqiang stated his country welcomes investments from foreign firms and is open to deepening cooperation with them. An official from the Beijing Central Business District (CBD), which is undertaking steps to attract higher quality firms, touts foreign direct investment (FDI)’s contribution to CBD. Chinese merger & acquisition (M&A) activity in the US in 2018 plummets. Rising Committee on Foreign Investment in the United States (CFIUS) scrutiny of foreign attempts to purchase minority stakes in American companies has fueled a major drop in Chinese venture funding of United States (US) start-ups. Chinese FDI pours into Latin America as US presence wanes and Latin American technology firms thirst for funding. South Korea President Moon Jae-in accuses Tokyo of politicizing recent court decisions over wartime labor. Meeting with his British counterpart, Japanese Prime Minister Abe Shinzo urges the United Kingdom (UK) to avoid a no-deal Brexit. During his New Year Press conference last week, South Korean President Moon reiterated his support for economic cooperation between the two Koreas and called for a lifting of economic sanctions. State-run Korea National Oil Corp. (KNOC) moves to liquidate overseas resources development projects that generated huge losses for the firm in 2017.

Dr. Jean-Marc F. Blanchard's picture

Bad THAAD, THAAD’S Bad: Reflections about China’s Economic Sanctions and their Implications for Multinational Corporations

Dr. Jean-Marc F. Blanchard
Posted: Apr 22, 2017

For about the past three months, Beijing has been escalating economic pressure on South Korea because of the latter’s decision to deploy the Terminal High Altitude Area Defense (THAAD) anti-missile system to counter North Korea’s missile threat. Chinese economic coercion has encompassed barriers to Korean cultural products like K-Pop bands, television shows, and online games entering China, bans against Chinese tourists going to Korea, the shutdown of Korean stores in China, the cessation of investment deals, and reduced buying of Korean products.

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