financial sector opening

MNCs in the News-2020-02-14

JPMorgan (China) intends to assume full ownership of all its mainland China operations by 2021 to take advantage of China’s financial sector opening. Chinese regulators approve United States (US) credit card firm Mastercard Inc.’s application to establish a bankcard clearing house joint venture. Peter Navarro urges the US to reduce its reliance on Chinese pharmaceutical and medical supplies. New US regulations expanding the authority of the Committee on Foreign Investment in the United States (CFIUS) with respect to the review of foreign direct investment (FDI) have gone into effect, with notable implications for Chinese FDI in the US. Coronavirus impact on supply chains and production in China accelerates move already occurring because of US-China trade war and rising labor costs in China. Japan is excluded from list of countries exempted from new CFIUS review ambit, but this may change. Merger of Korean shipbuilding giants potentially affected by Japanese filing of World Trade Organization petition, charging illegal subsidies. Korea’s SK Engineering & Construction wins mega-deal to build a beltway in Kazakhstan.

MNCs in the News-2019-08-23

Exploiting the opening of China’s financial sector, Goldman Sachs moves to increase its ownership stake in its China securities joint venture (JV). The city of Beijing launches a plan to allow foreign direct investment (FDI) in VPN services in a trial zone by the end of 2019. Moody’s Investors Service sees the growth of China’s outward FDI slowing or even declining because of increasing global geopolitical and economic risks. To garner Chinese support over the Kashmir issue, Pakistan announces it will set up the China-Pakistan Economic Corridor Authority to fast-track Belt and Road Initiative (BRI) projects. Survey shows significant number of polled Japanese firms generally back Prime Minister Abe Shinzo’s creation of a stricter export trade regime for goods going to South Korea and feel Japan would prevail in a World Trade Organization case if Seoul filed one. Report shows that Japan became a less important source of materials and components for Korea over the first five months of 2019, though trade deficit patterns remain unchanged. Korean research institute survey reveals many surveyed Korean firms feel Japan’s trade restrictions will affect not just their sales, but also their profits. Korea’s Ministry of the Environment finds Audi Volkswagen Korea and Porsche Korea illegally manipulated vehicle exhaust emissions and penalizes and reports the firms for prosecution.

Dr. Jean-Marc F. Blanchard's picture

Chump Change? The risks of Banking on financial sector opening in China

China has long assured others of its intent to open up its financial sector. While it has never been entirely clear what this means, many have expected China not just to let in more foreign companies, but also to let them hold greater ownership stakes in their China operations and conduct more lines of business.