Europe

MNCs in the News-2021 January

China receives the largest amount of inward foreign direct investment (FDI) in 2020. China’s 2020 revised catalog of encouraged FDI takes effect increasing the number of encouraged sectors. China issues rules to counteract foreign extraterritorial sanctions affecting its nationals and companies. Renewable energy investments dominate China’s Belt and Road Initiative (BRI) energy infrastructure investments in 2020, though coal remains prominent. India makes ban on dozens of Chinese mobile phone apps permanent due to national security and data privacy concerns. China asks India to clarify its permanent ban against Chinese mobile apps. Japan creates English-language, one stop shop to help foreign financial firms set up operations in Japan. United States (US) sanctions against Huawei and limits on Huawei’s involvement in foreign telecommunications infrastructure projects led Japan’s Sumitomo to turn elsewhere for business. Brexit deal between United Kingdom (UK) and European Union (EU) will keep Nissan producing electric vehicles in the UK. Japan unconvinced Korean President Moon Jae-In’s labeling of a 2018 Supreme Court decision on corporate assets as “undesirable” will solve anything. The head of GM Korea emphasizes labor issues as one of the factors that reduce South Korea’s appeal as a destination for FDI. SK Innovation to invest $895 million into a battery plant in Georgia, a move some feel is about winning a case before the US International Trade Commission. Daewoo Engineering & Construction wins major port facility contracting deal in Iraq. Korea Hydro & Nuclear Power gets contract for major dams in Pakistan.

Dr. Jean-Marc F. Blanchard's picture

Europe Facing Disconnection Disaster over Huawei and Curbs on Chinese Companies?

European countries like Germany, the United Kingdom, and Norway have been struggling over the extent to which they should use equipment and services and accept foreign direct investment (FDI) from Chinese telecommunication firms.

MNCs in the News-2019-09-27

At an event in the United States (US), Chinese Foreign Minister Wang Yi stressed China’s opening, the value of its new foreign investment law, and its improving negative list. Chinese analysts criticized a European Chamber of Commerce in China report for blaming the woes of European firms in China on China’s state-owned enterprises (SOEs) rather than the highly competitive business environment in China. The joint investment fund between China’s China Investment Corporation and US bank Goldman Sachs has only recently made its first investment due to problematic the problematic political environment. China Power International Holdings concludes memorandum of understanding (MoU) with Norway’s SOE energy producer Equinor for cooperation in renewable energy. Japan concludes MoU with European Union calling for cooperation on infrastructure, transport, and digital project and the need for projects to be environmentally and fiscally sustainable. Japan and Indonesia sign a deal for a more than USD $4.2 billion medium speed train project which is partially politically motivated. Korea’s trade war with Japan is fueling the development of domestic supply chains and the reshoring of Korean firms. Concurrent with Korean President Moon Jae-In’s visit to the US many Korean companies announced their investments in the US.

MNCs in the News-2019-08-16

China’s Ministry of Commerce (MOFCOM) announced inward foreign direct investment (FDI) over the first seven months of 2019 grew 7.3 percent over the same period last year. The city of Beijing intends to relax controls over FDI in cultural and entertainment businesses. Chinese FDI into Europe has slowed as a result of economic uncertainties and trade frictions. A survey suggests Vietnam, Singapore, and Indonesia are the top three Asian countries presenting the best opportunities for participating in China’s Belt and Road Initiative (BRI). Japanese firms in Hong Kong are becoming cautious given tumultuous situation there. Japan alerts new Andhra Pradesh Chief Minister that talk of renegotiating power purchase agreements raises risks. Korean lawmakers contemplate limiting Korea Investment Corp.’s ability to invest in Japanese companies with ties to wartime forced labor. Korean consumer boycott of Japanese goods and services produces decline in imports of Japanese goods of 14 percent over the same period the prior year.

Dr. Scott MacDonald's picture

China Expands the BRI in the Caribbean: Jamaica on the Mind

In April 2019, Jamaica signed on to China’s Belt and Road Initiative (BRI). The two countries have had a positive relationship in recent years, with Chinese companies and banks active in the Caribbean country through such actions as Jiuquan Iron and Steel (JISCO)’s acquisition of Alpart in 2016, the proposed development of an Industrial Park and Special Economic Zone, and the completion of two state-of-the art early childhood institutions.

Mr. Naoyuki Haraoka's picture

Japanese Market Increasingly Attracts Asian Multinational Corporations

Foreign direct investment (FDI) into Japan has been increasing recently, contradicting the belief Japan is a closed market. Per the Japan External Trade Organization (JETRO), total FDI for 2016 increased more than USD $30 billion over the prior year and 2016 represented the third consecutive yearly increase. Increased FDI from Asian multinational corporations (MNCs) has been noteworthy, recording a 16.7 percent jump over 2015.

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. Hwy-Chang Moon's picture

The Global Trade War and Korea’s FDI Strategy

Concerns about the possible negative impact on Korea’s economy from the global trade war, sparked by the escalation of American trade protectionism, are serious and real. However, aside from what news reports discuss as a potential threat to world trade, the most critical area that deserves our attention is foreign direct investment (FDI).

Wong MNC Center Co-Organizes and Co-Sponsors Conference entitled “Coping with Global Backlash”

The Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations (Wong MNC Center) is co-organizing and co-sponsoring the “Coping with Global Backlash” Conference at the University of California Berkeley (UC Berkeley) in October 2018. The two-day event, which runs from October 18 to 19, is hosted by the UC Berkeley Asia Pacific Economic Cooperation Study Center (BASC), Center for Long Term Cybersecurity, Clausen Center, and IEAS, which also are event co-organizers and co-sponsors.

MNCs in the News-2018-05-25

China’s State Council moves to spread best practices from China’s Free Trade Zones (FTZs) elsewhere in China. Muji hung out again for its improper treatment of the Taiwan issue. In Beijing, German Chancellor Angela Merkel warns of further potential restrictions on Chinese investment in the absence of reciprocity. Fears of having to disclose details of loans for China-Pakistan Economic Corridor (CPEC) spur Chinese financial institutions to continue to bank on Pakistan. Motivated by forthcoming regulatory changes, Mitsui Sumitomo Insurance Co. to buy 37.5 percent stake in state-backed Chinese life insurer. Nissan and Renault reviewing tie-up driven by French Government. Trump’s cancellation of US-North Korea summit dashes hopes of lifting international sanctions against North Korea and jumpstarting inter-Korean projects. South Korean electric battery firms charged up as China Association of Automobile Manufacturers’ whitelist highlights capabilities of Korean batteries. Chinese investors pledge to continue investing in Malaysia given new government offers conducive business environment and political stability. Foreign investors increasingly concerned about Malaysia’s fiscal health as national debt is far higher than previously revealed.

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