Italy

MNCs in the News-2020 October

China’s Ministry of Commerce (MOFCOM) says that inward foreign direct investment (FDI) increased 5.2 percent for the first nine months of 2020 when compared to the same period the prior year. China’s National People’s Congress Standing Committee approves revised export control law. Germany says reciprocity needed if there is to be a European Union-China investment agreement and notes barriers facing European companies in China remain too high. State-owned Assets Supervision and Administration Commission (SASAC) of the State Council points out Central State-owned Enterprises (SOEs) contribution to China and the realization of is 13rd Five-Year Plan. Sweden bans Huawei and ZTE from its core 5G mobile networks. Italy prevents Fastweb, the Italian unit of Swisscom, from using Huawei equipment in its core network. Japan will not participate in US initiative to block Chinese companies from participating in its telecommunications systems. Japan’s NEC Corp. will support United Kingdom government in its effort to develop a next generation 5G wireless network. Consortium led by Japan’s Sumitomo Corp. will develop massive $4.29 billion smart-city project in Hanoi. Mitsubishi Motors will work with Thailand agency to develop system that would allow electric vehicle batteries to power homes. Korean Fair Trade Commission to set up plan to investigate Google for potential abuses of its mobile operating system. Seoul to require Korea Resources Corp. to sell off certain assets to improve its financial condition. Samsung Fire & Marine and Samsung Life face criticisms for support of coal projects and investments through project financing, bonds, and insurance underwriting. Korea’s Doosan Heavy Industries & Construction signs $2.2 billion contract with Vietnam’s VAPCO for massive coal power plant.

Dr. Scott MacDonald's picture

Italy Signs on to the Belt and Road Initiative

Dr. Scott MacDonald
Posted: Apr 01, 2019

In late March 2019, Chinese President Xi Jinping traveled to Rome, where he met with Prime Minister Giuseppe Conte, who signed a memorandum of understanding pursuant to which Italy signed on to China’s Belt and Road Initiative (BRI), making it the first Group-7 country to do so.

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.

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.

Dr. Jean-Marc F. Blanchard's picture

Europe and Chinese Foreign Direct Investment: Screening the Screen

Dr. Jean-Marc F. Blanchard
Posted: Dec 02, 2018

Chinese outward foreign direct investment (FDI) is not a particularly new story as far as European Union (EU) countries are concerned.

MNCs-2017-12-29

Foreign direct investment (FDI) into China’s service sector shows strong performance in 2017 with observers recommending various improvements to draw in more. China’s National Development and Reform Commission (NDRC) is concerned about surges in mobile chips and may launch an investigation. The China Banking Regulatory Commission has published draft rules that would make it easier for foreign banks to enter China and expand their businesses there. NDRC minister says China is considering passing legislation that would improve supervision of outward FDI (OFDI) and clarify the limits that exist. Japan’s Sumitomo among foreign bidders for Indian Railways’ first global tender. Japan’s Kubota to join USD $92 million project to improve water supply infrastructure in Yangon following local government order. LG Display receives green light from Seoul to build USD $4.5 billion OLED production plant in Guangzhou. South Korea’s state-owned Korea Gas Corporation finally collects return on its 2010 investment into Australia’s liquefied natural gas sector. Mitsubishi UFJ Financial Group posed to gain approval from Jakarta to purchase 73.8 percent of Bank Danamon Indonesia. Major foreign motorbike companies to build production and assembly plants in Thailand as government investment packages continue to proliferate. UK firms looking to bid on light rail transit and construction projects from Malaysian government. Japan surpasses South Korea to become largest investor in Vietnam in 2017 as Hanoi attracts more foreign money for infrastructure investment.

MNCs in the News-2017-09-15

China’s potentially massive electric car market and regulatory pressure charge up foreign auto firms’ willingness to share technology and invest in the sector. China plans to blacklist and potentially punish blacklisted Chinese outward investors that become “discreditable.” National security concerns lead American President Donald Trump to crunch Lattice chip’s sale to Chinese buyer. The European Commission has come up with a pan-European measure to vet Chinese investments in the European Union (EU). Thailand’s military junta assures Japanese investors proposed plan for USD $45 billion injection into Thailand’s Eastern Economic Corridor will go ahead regardless of the results of the next election. Suzuki Motor partnering with Toshiba and Denso to invest in electric vehicle facilities in India in line with the latter’s “Make in India” initiative and increasing demand for green mobility. Hyundai releases plans for electric vehicle manufacturing plant in India after Indian government pledges to ban sales of non-EV cars by 2030. South Korean retail giant Lotte Group has begun making plans to sell its China shops due to politically-related pressures in China. Asian Development Bank to support Indonesia’s energy sector. China’s expanded investment in Thailand raises local anxieties. The divestment of numerous Vietnamese SOEs has problematic features that discourage foreign investment. Southern Vietnamese province promoting investment in several industrial sectors through policy reforms and other initiatives.

MNCs in the News-2017-08-04

Donald Trump administration contemplates using Section 301 of the 1974 Trade Act to challenge China’s technology transfer and intellectual property right protection practices. Foreign businesses increasingly fret about the burdens to be flowing from China’s rejection of non-approved virtual private networks (VPNs) and other data controls/restrictions. China’s Ministry of Finance issues a guideline to limit risk of overseas investments by state-owned enterprises (SOEs). Foxconn Technology Group announces major planned investment in the United States (US) to do R&D work relating to self-driving vehicles perhaps due to Trump’s efforts to bring more manufacturing to the US. Workers at Nissan’s Mississippi factory vote on whether to join the United Auto Workers. Japan’s JFE Holdings Inc. considers further investment into India’s JSW Steel Ltd as a way to profit from increased steel demand potentially flowing from Indian Prime Minister Modi’s economic plans. South Korean firms struggle in the Middle East due to government indifference and rising political tensions. South Korea’s LA Cable & System signs USD $195 million contract with Qatar’s state owned utilities firm. Jakarta focuses on simplifying investment application process for foreign firms seeking investment licenses. Indonesia’s government will start taking bids in September for construction of six massive geothermal power plants. Thailand and Australia discuss revising the Thailand-Australia Free Trade Agreement to increase investment and trade. Indian Oil Corp Ltd in talks with partners to search for cheaper location for Pacific Northwest LNG terminal after recent withdrawal of Petronas. South Korea’s Lotte signs Eco-Smart city development contract with Vietnam’s People’s Committee of Ho Chi Minh City. Vietnam’s Prime Minister confirms that creation of Vietnam’s first three special economic zones would enjoy special rules to attract greater investment.

MNCs in the News-2017-04-14

China announces draft rule that would require certain firms to obtain permission to transfer data out of China. Apple promotes the adoption by yet more of its China suppliers of renewable energy. A Chinese think tank and corporate collaborator release a report showing that Chinese firms have been substantially boosting their investment in the manufacturing sector. Potential seen for greater Chinese involvement in ambitious American infrastructure programs. China and Myanmar agree to open oil pipeline linking Myanmar’s Kyaukpyu port to Yunnan, China. Likely opposition from Japanese and US government may drive Toshiba to reject highest bid from Taiwan’s China-connected Hon Hai. Korean companies participate in Saudi Arabia’s Vision 2030 project and, accordingly, will get special support from the Saudi government. Foreign firms pour money into South Korea’s IT, fashion, and entertainment startups to profit from Korea’s cultural power. News reports reveal Malaysia Korea Partners funneled money to the leadership in Pyongyang for decades, violating UN sanctions. China’s Alibaba Group and the Malaysia Digital Economy Corporation (MDEC) jointly establish Digital Free Trade Zone. Cheaper labor, less stringent legal structure, and better intellectual property right protections spur Italian corporate pivot from China into Vietnam. Local officials in Can Tho court French investment in various sectors including agriculture.

MNCs in the News-2017-02-17

American business community becomes more favorable towards “reciprocity” policy towards China. Hejun Vanguard Group files complaint against sale of McDonald’s China and Hong Kong assets. Chinese firms’ pursuit of investment in critical sectors leads Germany, France, and Italy to ask European Union (EU) to give it more powers to investigate and block investments. The United States (US) Federal Trade Commission asks Syngenta for more information regarding its proposed acquisition by China’s ChemChina. In the face of potential restrictions on Chinese firm investments in non-core businesses, Dalian Wanda eyes European bank deals. Japanese companies face investigation by South Korea’s transport ministry which has begun to investigate more firms in the wake of the Volkswagen emission manipulation scandal. Toshiba will remove itself from work on the UK’s new Moorside nuclear plant. South Korea’s Korea Electric Power Corp. (KEPCO) has started its first wind power plant in Jordan. Korean outward foreign direct investment (FDI) grows significantly in 2016 with a large increase in money flowing to the US. Indonesian loosening of ban on raw mineral ore exports has many implications. Indonesian regional elections have big implications for Indonesia’s inward FDI (FDI)

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