EU

MNCs in the News-2020 July

Chinese President Xi Jining courts foreign direct investment (FDI) in encouraging letter to the Global CEO Council. China plans to impose sanctions on United States (US) company Lockheed Martin because of the latter’s weapons sales to Taiwan. China’s new, strict cybersecurity laws and regulations have driven Morgan Stanley, a US investment banking firm, to block its interns in China from remotely accessing its virtual network. The recent border clash with China has increased the pressure on New Delhi to reduce the country’s dependence on Chinese solar goods. Various special interest groups have called for the US to sanction China’s CRRC after the US Pentagon labeled it as backed by the Chinese military, saying it represents a security threat. Despite calls for a boycott in the wake of India’s border clash with China, many are skeptical Chinese smartphones can be displaced from the India market. Japanese and British trade negotiators agree they will not require encryption keys or the localization of data. Japan’s Mizuho Financial Group faces growing shareholder pressure to stop financing coal projects. Japan helps Japanese companies move to Vietnam and also helps them shift production lines to Japan as well as various Southeast Asian countries. Myanmar gives three Japanese firms permission to build a mega-liquified natural gas power plant. Korea to spend billions to promote an innovation-based economy. European Union to restart review of the merger of Daewoo Shipbuilding & Marine Engineering and Hyundai Heavy Industries Holdings. Incheon Port Authority joins the United Nations Global Compact. The backlash against Huawei creates some openings for Samsung, though it is unclear if the Korean firm can exploit them.

MNCs in the News-2020-03-13

China’s State Council identifies measures to encourage greater foreign direct investment (FDI) into China. Shanghai continues to attract inward FDI and seeks to reach new heights in 2020. China’s TikTok to establish center in United States (US) to assuage worries that user data is being transmitted back to China. US Treasury Secretary Steven Mnuchin tells US Congressional committee that the US is working with the International Monetary Fund and World Bank to ensure their funds are not used to repay Belt and Road Initiative debts. Japan will not allow investors filing applications under its new FDI review system to submit notice online or in English. Japanese Ministry of Finance data shows Japan’s overseas investment earnings rose steadily in January 2019, offsetting deficits in other areas. Hyundai Heavy Industries’ acquisition of Daewoo Shipbuilding & Marine Engineering encountered another obstacle with the European Commission delaying its decision on the merger until the summer. Korea’s Samsung facing hindrances to its efforts to boost production at some of its Vietnam factories due to Vietnam’s restrictions on Korean travelers resulting from the coronavirus.

MNCs in the News-2020-02-28

American Chamber of Commerce in China survey shows foreign businesses want tax breaks, clearer and more consistent policies, and greater transparency to help their recovery from the coronavirus epidemic. Survey of European businesses in China reflects, among other things, dissatisfaction with “unpredictable rules, highly restrictive quarantine demands and extensive pre-conditions to restart operations.” Huawei plans to build its first European Union (EU) manufacturing plant in France to address security and other concerns. United States (US) Transportation Security Agency requests its employees to cease using China’s TikTok app to create public content and promotional materials. Tokyo may revise its Foreign Exchange and Foreign Trade Act to lighten advance notice requirements for certain entities such as university endowments and corporate pension funds. Nissan warns that the failure to strike a free trade agreement with the EU post-Brexit may affect the future of its factory in the United Kingdom. Seoul to modify laws and boost incentives to lure more large South Korean companies to come home.

MNCs in the News-2020-02-07

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.

MNCs in the News-2019-11-15

According to a German Chamber of Commerce survey, a large percentage of German companies plan on boosting their foreign direct investment (FDI) in China over the next two years. The United States (US)–China trade war and rising costs in China unlikely to led to exodus of FDI outside China because no country possesses the entire package of advantages China does. China MOFCOM reports that China’s non-financial outward FDI (OFDI) grew almost 6 percent over the first 10 months of 2019 year-over-year. US National Defense Authorization Act language may terminate the availability of federal funds to buy electric buses made by BYD at its California factory. South Korean airlines are closing offices in Japan as well as suspending or reducing flights to Japan because of falling tourism resulting from Korea-Japan tensions. Japanese Ambassador to Bangladesh calls on the latter to provide economic incentives and improve policy stability. LG Chem asks the US International Trade Commission to rule quickly on its trade secrets theft case against SK Innovation. Hyundai Heavy Industries submits formal request to European Union (EU) asking for approval of its planned merger Daewoo Shipbuilding & Marine Engineering

MNCs in the News-2019-11-08

China’s Ministry of Justice promulgates draft implementation rules for the country’s new foreign direct investment (FDI) law which contains a lot of positive news regarding intellectual property rights (IPR) and trade secrets. China rejects European Chamber of Commerce claims about the possibility of “promise fatigue.” China’s State Council issues 20 opinions with a strong emphasis on breaking down foreign entry and operating barriers in the banking, securities, and fund management sectors. Consultancy reports that China’s mergers and acquisitions (M&A) activity jumped in 3rd quarter of 2019 versus 2nd, though it remained far under the highs of 2014. Japan’s Fair Trade Commission survey points out a number of internet giant practices that may violate the country’s anti-monopoly law. The United Kingdom’s Brexit is affecting an increasing amount of Japanese there such as by forcing them to develop alternative supply chains. China’s move to end subsidy programs for electric vehicles may give South Korean companies in China new business opportunities. South Korea’s Alliex partners with Vietnam’s Central on cashless payment system in Korea.

Dr. Jean-Marc F. Blanchard's picture

No Promise Left Behind: The Effort to Court EU FDI through a China-EU BIT

China and the European Union (EU) have been discussing a bilateral investment treaty (BIT) for a long time. Indeed, the two sides held their 21st round of China-EU BIT negotiations in June 2019.

Executive Director Jean-Marc F. Blanchard speaks at EU-China Roundtable on “The Business of Trade, Investment, and Global Politics.”

Dr. Jean-Marc F. Blanchard, Executive Director of the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations, participated in a EU-China Roundtable on “The Business of Trade, Investment, and Global Politics” organized by the University of Pittsburgh Asian Studies and European Studies Centers. At the Roundtable in Pittsburgh, held on October 24, Dr.

MNCs in the News-2019-06-21

China Premier Li Keqiang works to lure foreign direct investment (FDI) during the Global CEO Council in Beijing. In 2018, the deal value of European mergers and acquisitions (M&A) activity in China soared by 856 percent to USD $9.94 billion. European Union (EU)-China talks on a Comprehensive Agreement on Investment and China’s negative list show better progress than expected. Brazilian Vice President welcomes Chinese FDI in infrastructure as long as it creates jobs and respects Brazilian rules. Around the time of the G-20, French President Emmanuel Macron will discuss issues about the Renault-Nissan alliance with Japanese Prime Minister Abe Shinzo. Numerous Japanese corporate subsidiaries in the United States have voiced opposition to Donald Trump’s proposal to slap tariffs of 25 percent on another $300 billion of Chinese products. Tokyo has requested Seoul to establish an arbitration panel consisting of representatives selected by other countries to help deal with their wartime forced labor compensation dispute. Seoul prepared to block a deal that would sell Taihan Electric Wire to a Chinese company because it deems Taihan’s high-voltage cable technologies a “‘national core technology.’”

MNCs in the News-2019-05-24

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.

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