Free Trade Zone

MNCs in the News-2022-January

China’s Ministry of Commerce (MOFCOM) touts that China will act to attract foreign direct investment (FDI) despite a challenging environment. In the wake of a backlash following its removal of Xinjiang products from its shelves, Guangdong Administration for Market Regulation fines Sam’s Club for deceptive consumer practices on its app. Beijing municipal government fines 7-Eleven China for the latter’s website maps that have problematic presentations of Taiwan and other territory. China’s work and the presence of dredgers at Cambodia’s Ream naval base concern the United States and others that China’s seeks to station military assets there. Indian tax authority probe causes it to demand Xiaomi India pay unpaid customs duties. Sri Lanka asks China for debt relief on loans used to pay for Belt and Road Initiative projects. Ruling parties from Japan and Taiwan agree to pursue cooperation on semiconductors to alleviate semiconductor shortages and address the China high-tech challenge. Japanese companies remain committed to Myanmar despite the latter’s serious political, economic, and other problems. The chair of Korea’s Fair Trade Commission (KFTC) promises to continue to improve the KFTC’s regulation while supporting innovation. Apple submits plan to Korea Communications Commission that allows alternative in-app payment systems and reduces payment fees.

MNCs in the News-2019-10-18

At a State Council meeting, China promised more action to eliminate restrictive policies on foreign direct investment (FDI). China’s State Council announced new measures to expand the opening of its financial sector to foreign banks and insurers. China’s Ministry of Commerce (MOFCOM) reported that China’s non-financial outward FDI grew 3.8 percent for the 1st three quarters of 2019 year-over-year (YOY), a slight improvement over the prior YOY period. Per a high ranking Cambodian official, for the period 2016 to August 2019 China was his country’s largest investor, with the Belt and Road facilitating this. Japan may exempt asset management companies, including hedge funds, from its new FDI review regime. A no-deal Brexit might significantly impair the value of Nissan’s FDI in the United Kingdom (UK). Strikes at GM Korea and other issues have dented Korea’s exports. Doosan Group’s move to transfer its data storage and protection system to Amazon Web Services raises concerns about development of local cloud computing sector.

MNCs in the News-2019-08-30

China’s plan to apply its social-credit system to foreign companies is raising concerns about possible abuses. China’s State Council announces it will establish pilot free trade zones (FTZs) in Shandong, Jiangsu, Guangxi Zhuang, Yunnan, Hebei, and Heilongjiang. United States (US) companies likely to stay in China despite trade war, a problematic regulatory environment, and US President Donald Trump’s call for them to leave. Although frictions over maritime issues remain unsettled, Chinese President Xi Jinping proposes joint oil & gas development in Reed Bank area to visiting Philippines’ President Rodrigo Duterte. Japan is paying more attention to tax shifting activities by high-tech companies and has recently forced Facebook to pay more in taxes for some questionable tax shifting activities. After the 7th Tokyo International Conference on African Development (TICAD), Japan and 53 African countries signed the Yokohama declaration which stressed “‘quality infrastructure investment.’” South Korea’s new policy for network fees has led to frictions with Facebook and service problems that led to fines which Facebook fought successfully in court. The Korea Startup Forum, the Korea Internet Corporations Association, and local and foreign content providers have called upon the South Korean government “to completely overhaul its network fee calculation structure.”

MNCs in the News-2019-06-07

China’s Ministry of Commerce (MOFCOM) reports United States (US) tariffs on Chinese goods have not significantly affected the country’s flows of inward foreign direct investment (FDI). MOFCOM announces China will blacklist “unreliable” foreign businesses which violate market rules, take discriminatory measures hurting Chinese business rights and interests, or threaten China’s national security. China’s plan to build a $1.9 billion light-railway system in Kazakhstan has stalled as China Development Bank cuts off funding due to possible corruption problems. China keeps open non-money-making Vietnam-China Economic and Trade Cooperation Park (VCEP) because of VCEP’s contribution to better image of Chinese FDI. Japanese and other multinational corporations call for more standardized and clearer rules and greater freedom for data transfer and storage. Airbnb experiences revival in Japan after new regulations caused tens of thousands of listers to check-out. Recent arrests of several Samsung Electronics senior executives for an alleged accounting fraud may distract Samsung from taking advantage of the woes of major competitor Huawei. In light of its recent retreat from overseas ventures, Korea National Oil Corp.’s announcement it planned to invest roughly USD $253 million in the UAE in an oil development project has caused controversy.

MNCs in the News-2016-10-14

China’s inward foreign direct investment (FDI) for the first nine months of 2016 grows a modest 4.2 percent year-over-year (YOY). China takes various steps to ease process for inward FDI, but foreign observers reserve judgement. Shanghai Municipal Food and Drug Administration imposes several million dollars in fines on Shanghai Husi and OSI Group’s China office for distributing reprocessed and expired meat. GlaxoSmithKline has been moving over the past two years to enhance its R&D capabilities in China and to take other steps to enhance its ability to serve Chinese patients. Chinese outward FDI in the US hits a record in 2015, spurring increased sensitivity. Chinese President Xi Jinping promises Portuguese Prime Minister his country will encourage more investment in Portugal. Alibaba plans to help Thailand with small business development, e-commerce, and e-payments. Chongqing actively engages with China’s One Belt, One Road scheme giving it all kinds of new export and logistics opportunities. Fujitsu plans to downside in the UK and denies the move relates to Brexit, though there are doubts. Japan’s SoftBank partners with Saudi Arabia’s sovereign wealth fund to create massive tech investment fund. Korean construction firm Doosan wins approximately billion dollar power plant project in Saudi Arabia. Korea Electric Power Corporation wins more than $35 billion coal-fired thermal plant contract in South Africa, the country’s first independent power project. Investors enthused about Indonesia infrastructure opportunities, but worry about requirement they be paid in rupiah. Malaysia welcomes investment in the biomass industry and announces major new investment by Korean petroleum refiner. Samsung’s massive global Galaxy7 smartphone recall may have an adverse impact on Vietnam’s growth rate. Ho Chi Minh City see big drop in investment in industrial parks and export processing zones as it pushes investment in tech rather than labor-intensive sectors.

MNCs in the News-2016-09-02

China’s National People’s Congress Standing Committee adopts amendments that allow for the permanent suspension of four foreign investment related laws in the Fujian, Guangdong, Shanghai, and Tianjin Free Trade Zones (FTZ). China has decided to allow for the creation of six new provincial FTZs as well as one municipal level FTZ, with each place expected to play to its features and comparative advantages. The European Chamber of Commerce in China asserts China’s market barriers are politically unsustainable. China’s Ministry of Commerce confirms to reporters that it is investigating the proposed Didi-Uber merger. British Prime Minister Theresa May confirms she would have her National Security Council examine the potential security implications of China’s participation in the massive Hinkley Point C nuclear power plant project. Japan pledges USD $30 billion investment in Africa at the 6th Tokyo International Conference on African Development. Japanese trading firms find electrifying power project opportunities in Africa. Korean free economic zones are not achieving the anticipated results. Indonesian state-owned enterprises seek funding from multiple sources to fund the country’s massive infrastructure plans. Vietnam and Cuba aim to boost bilateral investment flows.