IPR

MNCs in the News-2019-11-01

Chinese Vice Minister promises better treatment and protections for foreign direct investment (FDI), no forced tech transfers, and more rapid opening of financial sector. United States (US) contemplates new methods for increasing China’s protection of US intellectual property (IP) such as blacklisting repeat IP right violators. Chinese Ambassador in Malaysia stresses the needs for Chinese companies to deliver the goods as well as respect local laws and customs. Massive Laos high-speed rail project has many problems and multiple critics, but likely to continue given country’s desire to surmount its landlocked status. Japan’s Finance Ministry works to counter anxieties about Japan’s new FDI review regime by, among other things, providing more specifics. Toyota breaks with Honda about backing California’s new automobile emissions standards. Executives at Samsung Electronics and Samsung BioLogics faced serious accounting fraud charges relating to the revaluation of a stake in a US joint venture. Rising number of Korean firms in China report that they are increasingly affected by US-trade war.

Dr. Jean-Marc F. Blanchard's picture

Pundits Posit China’s New Foreign Direct Investment Law Progresses!

In May, China passed a new law relating to Foreign Direct Investment (FDI) that comes into effect at the beginning of 2020. This law replaces three laws relating to wholly-owned foreign enterprises, contractual joint ventures (JVs), and equity JVs that previously constituted China’s formal FDI regime.

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-2019-07-19

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.

MNCs in the News-2019-06-28

President Donald Trump’s tough stance on intellectual property rights (IPR) violations seems to be driving China to treat foreign IPR more respectfully. At the Osaka G20 Summit, Chinese President Xi Jinping announces several measures China will undertake to open its market further to foreign direct investment (FDI) and improve IPR protection. This past week witnessed the creation of the Belt and Road Economic Information Partnership (BREIP). Two major BRI projects in Africa end. At the Osaka G20 summit, participating countries embrace Japan’s international principles for quality infrastructure. Japan tells two leading candidates for the British Prime Ministership it does not want a “no deal Brexit.” As part of its downstream growth and diversification strategy, Saudi Aramco and its affiliates have signed a dozen accords with South Korean companies covering sectors areas like shipbuilding, engine manufacturing, and petrochemicals. A consortium involving Korea Hydro & Nuclear Power (KNHP) and KEPCO Plant Service & Engineering (KPS) signs a five-year maintenance service deal for the Barakah nuclear power plant, but fails to garner responsibilities for maintenance services, nuclear scientists, and engineers.

MNCs in the News-2019-05-10

The ongoing China-United States (US) trade war coupled with other economic and political factors drives more firms to consider other locations besides China. China moves to take more steps to protect intellectual property (IP), partly to assuage the concerns of foreign investors. China poured record amounts of investment into US start-ups last year despite Sino-American tensions, but there are dark clouds on the horizon especially in regard to investment screening. Security and other concerns lead US Federal Communications Commission hangs up on China Mobile’s effort to operate and offer service in the US. Not a single European country has joined Washington’s call to boycott China’s Huawei. Japanese banks move to improve their anti-money laundering and terrorist financing practices so as to increase chances of good Financial Action Task Force review. Japanese foreign direct investment in the US surges for political and economic reasons, with some “red states” seemingly benefiting from the former. Seoul police investigate if BMW Korea’s Chairman covered up automobile defects. Lotte Chemical launches USD $3.1 billion ethylene cracker complex in Louisiana with strong political support from Korea and the US.

MNCs in the News-2019-03-08

China’s National People’s Congress (NPC) to consider new draft law on foreign direct investment (FDI) that seeks to provide stronger legal guarantees to overseas investors. About 1/3rd of North American-based corporations on the CNBC Global CFO Council say Chinese companies have stolen their intellectual property (IP) at some point in the past ten years. Mirroring global trends, Chinese FDI in Europe fell drastically in 2018 and a recent survey suggests the European Union (EU)’s new investment screening framework likely will curb Chinese EU mergers and acquisitions even more. Italian economic development ministry official announces Italy is planning to join China's Belt and Road Initiative (BRI). Faced with Mitsubishi Heavy Industries Ltd.’s refusal to negotiate, South Korean plaintiffs who won a wartime forced labor case against the company file court request to seize the company’s assets. Toyota Motor Corp. announced last week it may pull out of production in Britain due to the likely increase of tariffs in the case of a no-deal Brexit. Hyundai Motor is considering suspending operations at its Beijing manufacturing plant partly due to plummeting sales and partly due to budding opportunities elsewhere. South Korea’s Ministry of Economy and Finance reports Korea’s OFDI reached a record high in 2018 partly due to Korean companies going abroad to enjoy a better manufacturing environment.

MNCs in the News-2019-03-01

China’s Ministry of Commerce (MOFCOM) announces China will keep improving the legal and market environments for foreign investors. United States (US) President Donald Trump recently announced the US has made substantial progress in talks with Beijing on improving its IP protection. American Chamber of Commerce in China survey indicates some positive views about China’s progress in protecting intellectual property rights (IPR), though concerns about profitability and the future are rising. Following the European Parliament’s approval of a mechanism to control foreign investment in strategic sectors, Chinese official calls upon the EU to adopt an open and inclusive attitude towards foreign companies. Per JETRO survey, Japanese parts suppliers in China hit worse by US-China trade frictions than other Japanese firms there. British business secretary will travel to Japan to ask Honda Motors to reconsider its recent decision to shut down Swindon car plant. Abu Dhabi National Oil Company awards South Korea Engineering and Construction contract for USD $1.2 billion underground oil project. South Korea’s Financial Supervisory Service will tighten monitoring of foreign firms’ unfair trading practices.

MNC in the News-2019-02-01

A German Chamber of Commerce in China (AHK) survey makes clear German companies are concerned by China’s slow progress in resolving persistent problems facing foreign direct investment (FDI). European Commission considering taking action to prevent EU businesses from using 5G mobile networks provided by any country or company suspected of using its equipment for spying or sabotage. In 2018, Chinese firms were the biggest buyers of overseas mining assets, especially minerals needed for clean energy technologies and electric car batteries. French President Emmanuel Macron tells Japanese Prime Minister Shinzo Abe he is worried about Carlos Ghosn’s jail conditions and suggests Tokyo intervene in the selection of Nissan’s new chairman. Japanese lawmakers call for Japanese government to take a stronger stance against South Korea on historical disputes pertaining to Japanese companies. Seoul will focus on attracting foreign companies with high-end technologies by offering better incentives and fewer regulations. Rising trade barriers and a poor local economic situation are pushing an increasing number of Korean manufacturers abroad.

MNCs in the News-2018-12-14

Inward foreign direct investment (FDI) into China for the first 11 months of 2018 year-over-year relatively stable. Beijing stops requiring its local governments to support the Made in China 2025 policy. European Union Ambassador to China calls on China to stop requiring companies to transfer technology for market access. Apple considers moving some production out of China due to possibility of increased tariffs on its China-produced smartphones and laptops. 2018 proves a tough year for Chinese outward FDI (OFDI) in the oil sector. Huawei accepts various UK technical requirements “to address risks in its equipment and software.” Following a Japanese government’s decision that effectively excluded China’s Huawei Technologies Co. and ZTE Corp. from public procurement, Japan’s three major mobile phone carriers Softbank Corp., NTT Docomo Inc., and KDDI Corp. plan to stop using various products from these companies. Japanese expert panel calls on Tokyo to take measures to protect the usage of consumer data. Korea Electric Power Corp. report on Northeast Asia power grid notes it would face serious challenges because of sanctions on North Korea. Beginning July 2019, Korea will impose a value-added tax on a wider range of services provided by global technology giants to level the playing field for Korean firms.

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