Hyundai Motor Co.

Reports suggest that following intensifying China-United States (US) trade frictions, a growing number of foreign multinational corporations (MNCs) are considering moving their manufacturing out of China. At a recent China State Council meeting, officials state China aims to provide better intellectual property rights (IPR) protections and that it will treat domestic and foreign firms equally. China courts Japan’s involvement in the Belt and Road Initiative (BRI) purportedly to improve the BRI’s image. Bangladesh works to calm foreign investors in the wake of a violent clash between local and Chinese workers at the Chinese-invested Payra thermal power plant. Japan’s Fair Trade Commission (FTC) moves forward on guidelines to regular IT giants’ use of personal data without consent. Korea preparing plan to “‘to reduce the country’s dependence on Japan’s materials, components and equipment industries.’” Korean firms threatened by possibility that Japan will “remove Korea from its export white list.” Hyundai Motor Co. and Hyundai Motor America have requested the US International Trade Commission to start an investigation against four auto part importers.

American businesses not uniformly in favor of Washington moving aggressively against China about the latter’s intellectual property right (IPR) violations. China’s Ministry of Commerce (MOFCOM) approves HP-Samsung printer deal subject to conditions. China’s high-speed rail project in Thailand off track due to environmental approval issues. Sinopec to sell Argentine oil assets and incur major losses in the process. Denso Corp. announces plans for USD $1 billion EV plant in Tennessee, designed to meet changing government automobile and environmental demands. Toyota reaffirms intent to build new Auris in UK, provided the British government avoids hard Brexit deal. Chinese investment in South Korea drops due Chinese government restrictions, hitting the South Korean economy. Korean retailers to shift from China to Southeast Asia as business and political tensions between Korea and China show no signs of improvement. Indonesia needs foreign investment to develop 30 ports and airports and Jakarta is supporting great foreign investment through deregulation and other measures. Indonesian and Belgian firms sign three infrastructure development memoranda of understanding to profit from Indonesia’s attractiveness. Sumitomo forms Thai real estate market joint venture (JV) to profit from the Thai government development of the country’s infrastructure. Thailand’s National Legislative Assembly approves new Eastern Economic Corridor stimulus bill in a move to attract foreign investment. Malaysian government attracts Chinese firm to build USD $3 billion steel production plant in the Malaysian state of Sarawak. Vietnam attracted over USD $25 billion in foreign direct investment in the first three quarters of this year owing to its political stability. Asian investors turning to Vietnam for expansion opportunities as domestic markets shrink and Hanoi opens key industries to investors.

In rare praise for foreign firms, Chinese President Xi Jinping lauds their contribution to China and says the Chinese government must do more to attract and retain them. The China Banking Regulatory Commission imposes strict limits on Chinese banks providing support for overseas deals by Dalian Wanda. Some feel the United States (US) Committee on Foreign Investment in the United States is becoming stricter which, in turn, may hinder Chinese investment flows in the US. Toyota continues USD $310 million UK plant expansion after receiving Brexit reassurances from British government. Japanese financial institutions move to set up subsidiary businesses in the EU as Brexit jeopardizes their financial services licenses. Hyundai to open fifth Chinese assembly plant as compact vehicle sales are expected to rise before Chinese government’s increase in purchase taxes next year. South Korea’s Nexen Tire Corp. signs memorandum of understanding with United Arab Emirates’ state-owned Mubadala Development Co. Indonesian branch of ExxonMobil drops talks on East Natuna natural gas block, with Jakarta saying it intends to invite firm to discuss project again. Economist says Malaysia to become key economic corridor because of strong economic fundamentals, strategic geographical location and Prime Minister’s diplomatic efforts. China’s restrictions on bank loans to Dalian Wanda Group diminish prospects of Bandar Malaysia project. Vietnam’s Prime Minister signs decision to boost his country’s solar power development which is spurring much foreign investor interest. At HCM City conference, Laotian provinces court investment from Vietnam.