Huawei

MNCs in the News-2020-01-17

China’s tax system has been improving and there are hopes this will boost inward foreign direct investment (FDI). Goldman Sachs contemplates major expansion of employees in mainland China if China’s financial sector opening continues and it can take full ownership of its securities joint venture (JV). JPMorgan moves to increase its ownership of its fund management business in China because of China’s financial sector opening and the attractive opportunities present in the sector. United States (US) pressures on the United Kingdom (UK) to shun Huawei’s presence in its 5G telecommunications system lead UK Prime Minister to query what are the alternatives. Lawsuit by various US states threatens to upend merger of Sprint, in which Japan’s Softbank has a huge stake, and T-Mobile. Softbank proposes huge investment in Indonesia’s planned move of its capital from Jakarta. Korea’s Fair Trade Commission action forces Netflix to revise some clauses in its customer agreements. Korea’s Samsung acquires TeleWorld Solutions, a US-based telecom firm, which may open 5G opportunities in the US.

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-2019-12-06

Per Chinese media, the Chinese government is on the verge of promulgating its “unreliable entities” list which will identify foreign companies that may be subject to sanctions. Beijing municipality moves to open its service sector to a wide variety of firms, though limitations will remain in some areas. Pledged foreign direct investment (FDI) from China into Vietnam surges to record levels over first 11 months of 2019. Online survey suggests that individuals in major Latin American countries have a generally positive view of Chinese FDI, though Japanese and German firms rank higher. Japan’s Internal Affairs Ministry proposes public-private team involving foreign and domestic players to develop mechanisms to fight fake news. Japan Bank for International Cooperation (JBIC) survey finds Japanese companies overseas increasingly pessimistic about effect of global events on their revenues. United States (US) chip firm Qualcomm fails to win overturning of record anti-monopoly fine by Korea’s Fair Trade Commission (FTC and will take its case to Korean Supreme Court. SK Innovation, spurred by changing Chinese government policies regarding electric vehicle (EV) batteries, increasing EV manufacturing presence in China.

MNCs in the News-2019-10-25

China’s draft implementing foreign direct investment (FDI) law regulations draw generally positive comments from key foreign industry associations. Senior China National Development and Reform Commission (NDRC) official touts his country’s progress in enhancing the enforcement of intellectual property rights (IPR). Senior United States (US) senators ask for review of TikTok for potential counterintelligence risks as well as censorship. Tanzania revamps terms of USD $10 billion Bagamoyo port project for China Merchants Holdings International. Brexit and slow growth prospects in Japan lead Japan’s Hitachi to pursue opportunities in the US and Thailand. Japan’s Uniqlo pulls commercial airing in Korea that seemed to mock victims of wartime forced labor as well as comfort women. Iraq’s Port Authority awards South Korea’s Daewoo contract for prefabrication yard that is part of its Al Faw new port project. South Korean firms both suffer and gain from US restrictions against Huawei.

MNCs in the News-2019-09-06

On the eve of German Chancellor Angela Merkel’s visit to China, China’s Ministry of Commerce (MOFCOM) reports German foreign direct investment (FDI) in China grew more than 60 percent over the first seven months of 2019 year-over-year. Chinese media delivered some packaged criticisms against FedEx for the latter’s alleged shipments of controlled goods and rerouting of packages destined for Huawei. Relatively small-scale protests took place in three Kazakhstan cities against potentially questionable Chinese factory FDI. The United States (US) concludes declaration with Poland for the rigorous evaluation of foreign suppliers involved in 5G networks which some see as directed at China and Huawei. Nissan considers leaving Korea as Korea-Japan frictions make its challenging situation there even worse. Uniqlo partners with the International Labor Organization (ILO) to support research on labor markets and social security systems in some of its production hubs in South and Southeast Asia. Korean economic difficulties due to frictions with Japan encourages Hyundai union to settle with management without a strike. Korean government official meets with LG Group and SK Group executives to try to get them to resolve trade secrets dispute that LG Chem has brought to the US International Trade Commission.

MNCs in the News-2019-06-21

China Premier Li Keqiang works to lure foreign direct investment (FDI) during the Global CEO Council in Beijing. In 2018, the deal value of European mergers and acquisitions (M&A) activity in China soared by 856 percent to USD $9.94 billion. European Union (EU)-China talks on a Comprehensive Agreement on Investment and China’s negative list show better progress than expected. Brazilian Vice President welcomes Chinese FDI in infrastructure as long as it creates jobs and respects Brazilian rules. Around the time of the G-20, French President Emmanuel Macron will discuss issues about the Renault-Nissan alliance with Japanese Prime Minister Abe Shinzo. Numerous Japanese corporate subsidiaries in the United States have voiced opposition to Donald Trump’s proposal to slap tariffs of 25 percent on another $300 billion of Chinese products. Tokyo has requested Seoul to establish an arbitration panel consisting of representatives selected by other countries to help deal with their wartime forced labor compensation dispute. Seoul prepared to block a deal that would sell Taihan Electric Wire to a Chinese company because it deems Taihan’s high-voltage cable technologies a “‘national core technology.’”

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-2019-05-31

Foreign direct investment (FDI) and domestic firms, lured by, respectively, China’s consumer stimulus and attractive valuations may mitigate the adverse effects of the US-China trade war on China. The trade war and new regulatory environment is driving Fosun to limit its investments in United States (US) biotech companies and to turn its attention to emerging markets. Namibia amenable to China National Uranium Corporation taking over the world’s longest-running open pit uranium mine provided it respects Namibian employment laws. Japan tightens restrictions on FDI in its high-tech sectors. Japan’s Inpex Corp. strikes USD $20 billion framework deal with Indonesia to develop an onshore liquefied natural gas facility. Large Korean companies remain on the sidelines in the wake of the US’s action to limit the supply of parts to China’s Huawei. To protect their interests in China, Korean firms are courting Chinese party leaders, forming joint ventures, and investing billions of dollars in Chinese high-tech sectors.

MNCs in the News-2019-05-24

China’s Cyberspace Administration releases draft document stating, “operators of the country’s critical information infrastructure…will be required to take into account national security risk when purchasing foreign products and services.” A recent European Union (EU) Chamber of Commerce in China survey suggests the problem of forced technology transfers in China has worsened. The US is considering cutting off the flow of American technology to five other Chinese firms putatively because of these companies’ role in supporting Beijing’s actions in Xinjiang. With the United Arab Emirates (UAE) aiming to become a major China’s Belt and Road Initiative (BRI) partner, China’s East Hope Group conglomerate contemplates $10 billion port investment there. China’s chargé d'affaires in London warns if Huawei banned from Britain’s 5G network there might be “substantial” repercussions for Chinese foreign direct investment (FDI) in the United Kingdom (UK). The Japan unit of US e-commerce giant Amazon has decided to stop direct sales of all Huawei products through its online store. Mizuho Financial Group Inc. said it will tighten standards for lending to coal-fired power plants with high emissions of CO2. Renault Samsung workers in Korea reject draft wage and bargaining agreement which may lead to an “indefinite all-out strike” that drives the joint venture’s upcoming XM3 production to Spain. Iraq’s Ministry of Petroleum awards Korea’s Hyundai Engineering and Construction a $2.45 billion contract to build a seawater supply facility in Iraq.

MNCs in the News-2019-05-17

According to China’s Ministry of Commerce (MOFCOM), the growth rate of inward foreign direct investment (FDI) from the United States (US) into China over the first four months of 2019 dropped noticeably year-over-year (YOY). Beijing moves to tighten controls over technologies such as cloud computing, big data, and industrial security systems to bolster national information security. Expansion of American tariffs on Chinese goods drives more companies out of China. US Commerce Department’s proposed ban on hardware and service exports to Huawei could severely affect the firm and its American suppliers. Japanese companies working to use more foreign directors to enhance corporate governance and benefit from new thinking. Japan’s Toyota expresses dismay at US President Trump’s statement that “the US needs to defend itself against foreign cars and components.” FDI flows into South Korea for the first quarter of 2019 plummet YOY with some attributing it to the end of tax breaks. Hoping to position itself for the time when subsides for new energy vehicles (NEV) end, South Korea’s SK Innovation plans to open a second battery factory in China.

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