Industry

MNCs in the News-2020-01-10

China Banking and Insurance Regulatory Commission (CBIRC) makes it yet easier for foreign banks to set up and expand in China. China’s Ministry of Resources moves to lubricate the way for greater foreign direct investment (FDI) in energy exploration and extraction in China. Chinese outward FDI in North America and Europe plummeted in 2019 for multiple reasons. China ranked as Cambodia’s largest source of FDI in 2019. Japan’s Financial Service Agency (FSA) is preparing a guidebook on the registration process for investment management, investment advisory, and related businesses to boost Tokyo’s status as a financial capital. Iranian action against United States (US) troops in Iraq led various Japan companies to send staff out of Iran and limit travel to Iran and/or Iraq. Korea’s inward FDI in 2019 dropped notably versus the highs of 2018, though the second half of 2019 was relatively promising versus the 1st half. Korean construction firms have gone on high alert due to the tensions in the Middle East and the Korean government is mobilized to help such businesses.

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-2019-10-11

China Ministry of Foreign Affairs (MOFA) spokesman rejects claim that Beijing is forcing American companies to abandon their values. China Securities Regulatory Commission (CSRC) has put forth the specific timetable when 100 percent foreign direct investment (FDI) stakes in brokerages, futures, and fund management companies will be allowed. United States (US) Senator Marco Rubio has sent a letter to the US Department of the Treasury requesting a national security review of China’s Beijing ByteDance Technology Co.’s acquisition of Musical.ly. US sanctions may have driven China National Petroleum Corporation’s dismissal from Iran’s South Pars field Phase 11 project. Japan and South Korea will soon have consultations relating to South Korea’s World Trade Organization case against Japanese export controls. Pressure from international institutions and business considerations are driving Japanese firms to pay more attention to corporate social responsibility (CSR) issues in their Southeast Asian supply chains. Korea witnesses growth in inward FDI for the first time in five quarters, with strength in new industrial sectors. Samsung Electronics contemplate major semiconductor FDI in Xian despite poor macro-political and economic conditions because of needs of Chinese government and customers.

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-2019-08-23

Exploiting the opening of China’s financial sector, Goldman Sachs moves to increase its ownership stake in its China securities joint venture (JV). The city of Beijing launches a plan to allow foreign direct investment (FDI) in VPN services in a trial zone by the end of 2019. Moody’s Investors Service sees the growth of China’s outward FDI slowing or even declining because of increasing global geopolitical and economic risks. To garner Chinese support over the Kashmir issue, Pakistan announces it will set up the China-Pakistan Economic Corridor Authority to fast-track Belt and Road Initiative (BRI) projects. Survey shows significant number of polled Japanese firms generally back Prime Minister Abe Shinzo’s creation of a stricter export trade regime for goods going to South Korea and feel Japan would prevail in a World Trade Organization case if Seoul filed one. Report shows that Japan became a less important source of materials and components for Korea over the first five months of 2019, though trade deficit patterns remain unchanged. Korean research institute survey reveals many surveyed Korean firms feel Japan’s trade restrictions will affect not just their sales, but also their profits. Korea’s Ministry of the Environment finds Audi Volkswagen Korea and Porsche Korea illegally manipulated vehicle exhaust emissions and penalizes and reports the firms for prosecution.

MNCs in the News-2017-11-03

The door partly closes on North Korean businesses in China as Beijing tightens sanctions. Analysis reveals Springer Nature has been blocking access to articles in China. Consultancy report highlights expectations of greater Chinese outward investment over the next 12 months with the Belt and Road Initiative anticipated to be a key causal force. The Philippines secures USD $6 billion in Japanese investments after President Duterte’s official visit to Japan. Mitsui Engineering and Shipbuilding Co. to build crane manufacturing plant in Indonesia’s Batam Island free trade zone to take advantage of incentives. South Korean government hopes to prepare host of large-scale investments in China to be announced during upcoming China-South Korea summit. South Korea’s Ministry of Trade, Industry and Energy to decide upon approval of LG Display’s politically sensitive proposed multibillion-dollar OLED production facility investment in China. Indonesia’s FDI shows good growth in the third quarter. Indonesia’s Finance Minister challenges stigmas associated with Chinese investment. Central Group and JD.com announce USD $528 million open system online marketplace JV that links to government’s 4.0 initiative. Thailand’s state-owned PTT Exploration and Production booked another impairment charge due to its delay in moving ahead with investment on its Canadian Mariana Oil Sands project. In its annual report, the Malaysian government stresses positive impacts of the Belt and Road Initiative for the country and the region. Japanese ODA programs increasingly attracting Japanese investors to Vietnam. Vietnam expects USD $30 billion FDI by end of 2017 with majority of investment coming from APEC countries.

MNCs in the News-2017-01-06

China forces Apple to withdraw New York Times apps from its China App store. During a visit to Korea, Chinese Foreign Ministry official warns Korean businesses of possible adverse consequences because of South Korea’s adoption of THAAD system. US government report may result in tighter restrictions on foreign involvement in US semiconductor sector with particular ramifications for Chinese investors. There are doubts Chinese foreign direct investment (FDI) in the US will be able to maintain the same volume in 2017 as in 2016. Sri Lanka will strike agreements with Chinese investors to advance the Hambantota Port project, but large local protests dampen the atmosphere. Donald Trump blasts Toyota’s plans to invest in Mexico and sell to the US, with Japanese officials defending the contribution of Japanese firms to the US. While growing slowly, inward FDI (IFDI) into South Korea hits new heights with European Union (EU) investors representing a big proportion of investing firms. Indonesia remains optimistic about its ability to attract IFDI despite the fracturing of its partnership with JP Morgan Chase. Thailand plans new measures and new focuses in its efforts to reach new IFDI targets for 2017.

MNCs in the News-2016-12-23

American firms fret that Trump’s stances on China trade and Taiwan may lead China to retaliate against them. Chinese firm drops contract with Korean software and platform provider due to sensitivities about Korea’s decision to deploy the THAAD system. Foreign decision makers strongly distrust Chinese state-owned enterprises where merger and acquisition deals are concerned. China retorts those critics arguing One Belt, One Road is a massive dumping scheme do not understand the idea of a double circulation economy. Japan is moving to force foreign pharmaceutical product prices to undergo annual reviews. Softbank pledges $1 billion investment in United States (US) as a partial fulfillment of a commitment made to US president-elect Trump. Russia, Japan, and many private companies strike new deals leading to cooperation possibilities in new areas. Japanese firms still intrigued by opportunities in the United Kingdom (UK) despite Brexit. The UK and Japan glow about a major nuclear cooperation agreement. The European Commission has fined Sony Corp., Panasonic Corp., and Sanyo Electric Co. regarding rechargeable lithium-ion battery price fixing. Investment in South Korea’s free economic zones is soaring but below prior highs. Hyundai Heavy Industries Co. wins two orders including one from Iran’s state-owned Islamic Republic of Iran Shipping Lines, the latter’s first post sanction order. Indonesia and Google fail to come to a settlement about Google’s alleged tax underpayments. Thai Prime Minister Prayuth Chan-ocha orders mine operated by Australian gold miner Kingsgate subsidiary Akara Resources to shut down for health and environmental reasons. Vietnam’s inward FDI hits new low for the year.

MNCs in the News-2016-06-17

China’s inward foreign direct investment (IFDI) shows a slight decline in May year-over-year (YOY), though the figures for the first five months of 2016 showed a moderate increase (YOY). Chinese Premier Li Keqiang tells German officials and executives that China plans to improve the investment environment for them as well as others. In China, German Chancellor Angela Merkel calls for independent judiciary and level playing field for foreign firms. XpressWest unilaterally terminates its contract with China Railway International for the construction of a high-speed railway linking Las Vegas and Los Angeles. China National Chemical Corp. (ChemChina) resubmits its Syngenta deal to the Committee on Foreign Investments in the U.S. for national security review. South Korean investigators descend on Lotte Group in connection with allegations of a slush fund. Korea and Azerbaijan agree to expand economic cooperation in areas like investment and infrastructure. South Korea plans to reform government-run energy companies to improve their financial soundness and operating efficiency. Indonesia and Japanese oil giant Inpex reach a deal on the multi-billion dollar Masela onshore liquefied natural gas (LNG) plant which may bring more new opportunities for Japanese business to invest in Indonesia. Japanese firms look very favorably upon Vietnam as an investment destination.

MNCs in the News-2016-02-26

China will ban foreign companies, including foreign-invested joint ventures (JVs), from publishing online media, games, and other creative content within China’s borders. Deals involving Chinese companies receive the highest number of Committee on Foreign Investment in the United States (CFIUS) reviews for the third straight year. US administration and Congressional sensitivity to Chinese investments in the US reportedly grows. Indian bullet train deal with Japan leads to new construction and parts opportunities for Japanese companies. Violent protests in Rohtak forces Maruti Suzki to suspend its production activities. Korea Industrial Complex Corporation will help Hoa Khanh Industrial Complex develop industrial symbiosis projects. Korea’s Ministry of Culture, Sports, and Tourism awards integrated casino resort project to U.S. casino operator Mohegan Sun. Indonesia negative list and other policy measures directed at foreign investors draw increasing attention to the country. Indonesia’s Investment Coordinating Board plans to boost foreign investment from Southeast Asia countries, especially Singapore and Malaysia. Indonesia’s cold-storage industry hopes government will act to shape the form and location of FDI in its sector. The Thai Payment Network will issue millions to card to advance government’s national e-payment initiative. Thailand’s Board of Investments will open branches abroad to help Thai companies invest overseas.

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