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MNCs in the News-2019-03-22

According to China’s Ministry of Commerce (MOFCOM), inward foreign direct investment (FDI) for the first two months of 2019 grew 5.5 percent year-over-year (YOY). China’s State Administration of Foreign Exchange (SAFE) makes it easier for foreign companies to manage their foreign exchange. Italy may open four ports to Chinese FDI as part of its participation in the Belt and Road Initiative (BRI). Germany to establish state-owned fund to protect key companies from takeovers by foreign companies, especially Chinese ones. Koreans forced to work for Japanese corporations without compensation during World War II are rushing to file lawsuits before the statute of limitations runs out. Toyota announces it will build a new hybrid car in Britain for its Japanese peer Suzuki despite Brexit uncertainties. South Korea’s Gyeonggi Province considers bill requiring schools to put “‘war criminal tags’” on products manufactured by Japanese firms. South Korea’s S-Oil and Hyundai Oilbank will pay USD $127 million in fines to the United States (US) Justice Department for fixing fuel prices at US military bases in Korea.

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.

Dr. Jean-Marc F. Blanchard's picture

Europe and Chinese Foreign Direct Investment: Screening the Screen

Chinese outward foreign direct investment (FDI) is not a particularly new story as far as European Union (EU) countries are concerned.

MNCs in the News-2018-11-16

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.

MNCs in the News-2018-11-02

Shanghai moves to make life easier for foreign direct investment (FDI) as anxieties grow that FDI may leave. Germany’s Federation of Germany Industries’ position paper calls for German businesses in China to limit their dependence on China. Australia’s exclusion of firms with government ties from its new 5G network mean no involvement by Huawei, leading to Chinese government criticisms. Chile signs on to China’s Belt and Road Initiative. During an official meeting between Japanese Prime Minister Abe Shinzo and his Indian counterpart Narendra Modi, Tokyo pledged USD $2.8 billion in new loans for seven projects in India including the construction of a high-speed shinkansen system and roads. Recent South Korea Supreme Court ruling that Japan’s Nippon Steel must pay compensation to Korean World War II forced laborers leaves roughly 70 Japanese firms facing similar cases on edge. Samsung pledges to increase its contribution to Vietnam while Vietnam pledges to keep improving business environment for the firm.

MNCs in the News-2018-09-28

China State Council meeting decides to pursue numerous measures to increase foreign direct investment (FDI) flows as well as the realization of major FDI projects. Rising United States (US)’ tariffs are driving Asian firms to leave or contemplate departing China for other places in the region. Despite pressures, China Ministry of Commerce (MOFCOM) official notes Chinese outward FDI (OFDI) is to be expected and Beijing will encourage firms with ‘good reputation’ and ‘strength’ to invest. Per MOFCOM the profits of Chinese companies overseas hit USD $137.8 billion in 2017, a 52 percent jump year-over-year (YOY). The Japan Overseas Infrastructure Investment Corp. for Transport & Urban Development (JOIN) and the Japan Bank for International Cooperation will invest $300 million in the $16 billion Texas high-speed rail project. Seeing shifting trade patterns due to China’s Belt and Road Initiative (BRI) and the US-China trade war, Japan’s Nippon Express will seek to expand its shipments on Chinese rail companies. South Korea’s Daewoo to cooperate with state-owned Korean enterprises and other firms to bid on massive nuclear power projects in the Czech Republic and Poland. South Korea and Chile look to build up their infrastructure cooperation.

MNCs in the News-2018-09-21

China takes a softer stance on dominating the Artificial Intelligence (AI) sector at the World AI Conference in Shanghai. Summer Davos observers and participants stress the progress of the [China] Greater Bay Area in attracting foreign direct investment (FDI). Alibaba’s Jack Ma retreats from promise to create 1 million jobs in United States (US). Germany looks to pursue more measures, including a billion euro investment fund, to control Chinese FDI flows into the country. Japanese chemical firms boost FDI in Southeast Asia to ramp up production to fill the space flowing from reduced production of Chinese firms that cannot meet China’s environmental requirements. Building upon the foundation created by Japanese and Indian leaders, Japanese companies and investors are pouring money into India to support IT startups. South and North Korea agreed to take steps to reconnect infrastructure links and restart discontinued inter-Korean projects. South Korea’s Hyundai Engineering signed Memoranda of Understanding with Indonesian officials regarding the expansion of its industrial facilities and the construction of a hydroelectric power plant there.

MNCs in the News-2018-08-03

Shanghai’s release of 100 policies seems to be drawing in foreign direct investment (FDI) in advanced manufacturing and benefitting foreign firms in remanufacturing. Google reportedly will launch censored search engine in China in 6-8 months. China’s National Development and Reform Commission lightens up restrictions on overseas borrowings by Chinese companies. Negative security review leads Yantai Taihai Group to drop plan to buy Germany’s Leifeld Metal Spinning AG. Japan, US, and Australia agree to invest in infrastructure projects in the Indo-Pacific in an apparent move to counter China. Japan seeks to cooperate with Moscow on construction of liquefied natural gas transfer hub in Russia’s Far East to minimize supply risks. Korean government to invest USD $1.3 trillion in 10-year next-generation semiconductor project to attract global semiconductor firms to set up plants in Korea. South Korea bolstering efforts to win bid for Saudi Arabia nuclear project after losing bid for United Kingdom construction project.

MNCs in the News-2018-07-20

BMW and Tesla roll forward in China as government paves the road to greater ownership stakes. Foreign financial institutions banking on increasing role in China’s Belt and Road Initiative (BRI). Cambodia’s Minister of Agriculture, Forestry, and Fisheries opined that Chinese outward foreign direct investment (FDI) in Cambodia’s agricultural sector was bearing substantial fruit for his country. Sumitomo hopes to use agreements with Japanese local government to entice Japanese manufacturers to use rental plant areas at its Vietnamese industrial parks. Takeda optimistic about getting China’s sign-off for USD $62 billion Shire acquisition deal despite concerns of Chinese retaliation over US tariffs. LG Chem plans new battery plant in Nanjing to take advantage of the Chinese government’s electric car incentives, which are expected to disappear by 2020. New investment wave expected to hit Vietnam’s textile and garment industry boosted by Vietnam-South Korea FTA.

MNCs in the News-2018-07-13

China’s Ministry of Commerce (MOFCOM) says inward foreign direct investment (FDI) was solid for the first six months of 2018 year-over-year. Some observers see China opening to foreign deals because of external pressure as well as slowing inward FDI (IFDI). Merkel praises Chinese market opening moves as a sign of action, not just talk. Shaanxi Ligeance Mineral Resources Co. deal for United Kingdom (UK)’s Northern Aerospace grounded apparently for national security reasons. Japanese regulators mashing Apple over forcing customers to opt for particular product/service plans. Recent report reveals Japan moves up to third in US FDI while overall FDI drops due to US government plans to toughen regulations. Taisho Pharmaceutical Holdings to raise stake in top Vietnamese drugmaker DHG Pharmaceutical as Vietnamese authorities approve removal of foreign ownership limit at DHG.Chinese government approves LG Display’s OLED display production facility in Guangzhou. South Korea and Singapore sign two agreements aimed at strengthening bilateral investments and trade by promoting collaboration between companies.

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