Germany

MNCs in the News-2020-04-10

United States (US) financial giant JPMorgan strikes terms for taking 100 percent stake in its Shanghai mutual fund joint venture (JV). US trade bodies write to US Department of Commerce head to warn about adverse effects of contemplated changes to US export controls of semiconductors and semiconductor equipment to China, stressing for the first time the importance of chips in healthcare equipment. Reported attempted Board coup at United Kingdom (UK) graphic chipmaker Imagination Technologies blocked by UK government. China rejects reported charge that it was donating masks to France on the condition Huawei could participate in France’s 5G network. Japan prepares massive supplemental budget to facilitate Japanese firms leaving China for Japan or Southeast Asia. Indonesia’s partial lockdown in Jakarta drives Japanese firms to temporary shutter their factories there. Korean regulatory authorities will conduct a comprehensive review of Germany’s Delivery Hero’s acquisition of Woowa Brothers, the operator of food delivery app Baemin. India’s Mahindra & Mahindra says it will not inject fresh funding into SsangYong Motor.

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-2019-11-22

China’s National Development and Reform Commission (NDRC) and Ministry of Commerce (MOFCOM) issues new negative list for market access. Despite trade war with United States (US) and slowing economic growth, China witnesses solid inward foreign direct investment (FDI) flows for 1st 10th months of 2019. FDI in China’s insurance sector shows notable developments in 2019. All-China Federation of Returned Overseas Chinese encourages overseas Chinese businesspeople to get involvement in China’s Belt and Road Initiative (BRI). Japan’s Diet passes new investment law that tighten review criteria for inward FDI. Japanese firms may not see worse repercussions from Japan-South Korea political frictions. South Korea Fair Trade Commission (FTC) to create special task force to examine potential unfair business practices by domestic and foreign technology companies. Korea will leverage Korea-ASEAN 2019 Smart City Fair to promote Korean business involvement in smart city development.

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.

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