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China’s utilized inward foreign direct investment (FDI) showed solid growth over the first seven months of 2021 compared to the prior year period. China’s Ministry of Commerce (MOFCOM) is working to develop an improved negative list for 2021. China’s MOFCOM orchestrates site visits for foreign Chambers of Commerce, industry associations, and businesses in Xinjiang. China’s outward FDI (OFDI) to Belt and Road Initiative (BRI) countries shows solid growth for the first seven months of 2021 year-over-year (YOY), though China’s total nonfinancial OFDI growth rate was negative YOY. India’s massive infrastructure plans attract the cautious interest of Chinese companies and investors. Chinese companies hope regime change in Afghanistan will lead to improved security and stability that facilitates restarting investment and infrastructure projects and initiating new ones. The Japanese government moves to implement a law limiting FDI or activities in sensitive areas such as near military installations or critical infrastructure. Japan’s Kirin Holdings has no intention to exit Myanmar despite the political turmoil that has flowed the military coup there. South Korea moves towards the approval of a law that will limit the ability of firms like Google and Apple for force software developers to use their payment systems on in-app purchases. Korea levies fines and penalty surcharges against Facebook and Netflix for improper data collection, disclosure, and/or cross-border data transfer practices.

The coronavirus is affecting the operations of numerous multinational corporations (MNCs) in China, though many remain hopeful about the longer-term and are not overreacting. The former Chairman of China’s Sinopec opined that Chinese foreign direct investment (FDI) in sensitive areas and big deals would be avoided due to the contemporary political environment. Chinese firms win railway tenders in Namibia, where they already have a noteworthy presence. Japanese Diet bill proposes requiring major technology firms, foreign and domestic, to report annually to Japanese authorities on practices like data collection and also to establish complaint procedures. Due to the coronavirus, Toyota Motors suspends operations in China pending further review. South Korea seeks to create a better environment for domestic and foreign startups to promote growth. South Korean FDI in the US hits USD $10 billion for the fourth consecutive as relatively higher growth rates and lower taxes prove attractive.

Despite falling global foreign direct investment (FDI), China continues to show strength in attracting inward FDI (IFDI). Shanghai continues to be a magnet not only for IFDI, but also for regional headquarters and research and development facilities. The United States (US) has issued a regulation that will give the Committee on Foreign Investment in the United States new powers to scrutinize FDI which many believe are directed at China. US Senators send Federal Communications Commission a letter asking it to review the operating licenses of Chinese telecommunications providers in the US. Japan’s Fair Trade Commission (FTC) pushes Internet companies “to create a system to eliminate fake news and discriminatory postings.” Regarding Korea’s recent filing of a World Trade Organization complaint related to Japanese export controls, Japan has agreed to consultations. Korea FTC to decide if it will accept Apple Korea’s pledge to fix its alleged illegal collection of advertising fees from mobile carriers. Korea Electric Power Corp.’s coal mine development project in New South Wales rejected by Australia’s Independent Evaluation Committee.

China’s Ministry of Commerce (MOFCOM) reported October inward foreign direct investment (FDI) flows reflected a 7.3 percent rise over the previous year. MOFCOM looks to aid Chinese private companies invest overseas albeit in an “orderly,” guided way. German officials are pressing their government to hang up on Chinese corporate participation in the country’s early 2019 5G spectrum auction. American Enterprise Institute report suggests Belt and Road Initiative investment by Chinese companies is losing steam. Tokyo reassures Japanese businesses of its opposition to any actions requiring Japanese companies to pay compensation to forced laborers, saying the matter was settled in 1965. Japan succeeds in getting member countries of the Asia-Pacific Economic Cooperation (APEC) forum to adopt new guidelines relating to the quality of infrastructure development and investment. Korean price rigging conspiracy at US military bases in Korea fuels massive USD $200 million in criminal and civil penalties. South Korean legislatures considers broadened value-added tax on global information and communication technology companies to create a level playing field for Korean firms.