Japan

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.

Mr. Naoyuki Haraoka's picture

Increasing Inward Mergers and Acquisitions of Japanese Companies and their Implications

Mr. Naoyuki Haraoka
Posted: Dec 16, 2016

Traditionally, outward mergers and acquisitions (M&As) of non-Japanese firms by Japanese firms have represented the dominant percentage of total M&As involving Japanese companies. However, past patterns are shifting with overseas companies’ acquisition of Japanese companies constituting a greater percentage of total M&A.

MNCs in the News-2016-12-09

China’s Ministry of Commerce (MOFCOM) and National Development and Reform Commission (NDRC) have reduced the number of sectors on its foreign investment catalog restricted and prohibited lists by more than 30 percent. China’s State Administration of Foreign Exchange (SAFE) has denied there are restrictions on foreign firms' crossborder profit transfers. The NDRC has imposed a more than $17 million fine on Medtronic for violating China’s anti-monopoly laws. China’s national cybersecurity standards body, The Technical Committee 260, ignores foreign company pleas about its technical standards for operating systems, microprocessors, and office software. China’s concerns about capital flight and money laundering led it to strengthen its review of overseas deals exceeding USD $10 billion and in an overseas entity unrelated to the investor’s core business. China launches $22 billion fund to support overseas investments by Chinese companies. Chinese investment in Europe soars over 2015 totals. Softbank owner Masayoshi Son promises Donald Trump he will make a massive investment in the US. South Korea’s largest steel pipe producer buys two oil country tubular goods (OCTG) related facilitates in the US to escape possible US trade barriers. Indonesia’s Ambassador to Singapore encourages greater investment from Singapore, Indonesia’s largest foreign investor. Chinese investment in Indonesia soars, helping with infrastructure development, but raising some concerns. Chinese delegation from Zhejiang province to travel to Indonesia to assess the political risk environment in the country. Foreign companies in Thailand ask Prime Minister to update its laws pertaining to foreign workers. Official Thai delegation to China hopes to attract more investment, reinforce the relationship, and increase cooperation on China’s One Belt, One Road initiative. Malaysian Prime Minister Najib Razak rejected the notion he was trading the country’s sovereignty for foreign investment. Vietnam’s FDI inflows reach record highs and Vietnam promises steps to attract more investment.

“New Developments for Japanese and Chinese Firms” Conference in Tokyo Yields Rich Information

At the “New Developments for Japanese and Chinese Firms” conference recently held in Tokyo academic presenters from China, Denmark, Germany, Japan, the United States, and Sweden gathered to discuss their research on a diverse set of topics relevant for Japanese and Chinese firms.

Wong MNC Center Executive Director Dr. Jean-Marc F. Blanchard delivers keynote address at the “New Developments for Japanese and Chinese Firms” Conference

At opening of the “New Developments for Japanese and Chinese Firms” conference, Dr. Jean-Marc F. Blanchard, Executive Director of the Wong MNC Center, delivered a keynote address entitled “Patterns in Chinese Outward FDI and its Implications for Japanese Firms.” Dr. Blanchard started by providing background information on Chinese outward foreign direct investment (OFDI) from the 1970s through the 1990s, covering its volumes, sectoral destinations, geographic patterns, and drivers at the macro- and micro (firm) levels.

Japan Economic Foundation Executive Managing Director Naoyuki Haraoka delivers keynote address at the “New Developments for Japanese and Chinese Firms” Conference.

At opening of the “New Developments for Japanese and Chinese Firms” conference, Mr. Naoyuki Haraoka, Executive Managing Director of the Japan Economic Foundation (JEF), delivered a keynote address entitled “Japanese FDI in Asia and Asian FDI in Japan.” Mr. Haraoka began his speech by providing background on JEF’s origins and its evolving areas of research.

Dr. Amitendu Palit's picture

India’s Demonetization will encourage more FDI from Asia-Pacific

Dr. Amitendu Palit
Posted: Dec 04, 2016

The Narendra Modi government in India recently banned the use of 500- and 1000-rupee notes. This unprecedented move resulted in the withdrawal of 86 per cent of currency in circulation. The ostensible objectives behind the government’s move was to tackle black money, reduce counterfeiting, and check terrorist financing.

MNCs in the News-2016-11-24

China’s Ministry of Commerce notes that it will continue to welcome and support foreign direct investment (FDI) from the European Union (EU). Very senior Chinese Communist Party official meets with Microsoft CEO and calls for the company to share its technology with China. China’s State Administration for Industry and Commerce imposes almost a $100 million fine on Sweden’s Tetra Pak for abuse of its market position. Qualcomm’s joint venture with the Guizhou provincial government will start to produce China-customized server chips in 2018. I order to enter China, Facebook reportedly is working on a tool that would empower the Chinese government to censor content. The Committee on Foreign Investment in the United States (CFIUS) said it would recommend a Chinese investment consortium not be allowed to purchase Germany’s Aixtron. The U.S.-China Economic and Security Review Commission said Washington should take action to ban China’s state-owned firms from acquiring U.S. companies. Japan’s Itochu Corporation and Electric Power Development Co. Ltd. will provide full support for the construction of a coal-fired Batang power plant in Central Java. Japan and Argentina work to boost Japanese investment in Argentina. New China Ministry of Industry and Information battery production standard will severely limit Korean battery sales in China. China takes adverse actions against Korean financial companies to, it is believed, punish Korea for its acceptance of the THAAD system. Despite uncertainties flowing from the US presidential election result, the Indonesian Investment Coordinating Board still has faith in its investment realization targets. The Indonesia-Japanese investment relationship remains robust. Following on the heels of his efforts to court Chinese investors, Malaysia Prime Minister Najib Razak is lobbying Japanese investors to put money in higher-value added activities in his country. Vietnam welcomes foreign investors to participate in the restructuring of the country’s banking sector. Vietnam pushes for investment in the food processing sector.

MNCs in the News-2016-11-11

China approves cyber security law despite intense lobbying by foreign business associations, firms, and governments. China reportedly is considering allowing foreign investment banks to have wholly owned operations on the mainland. China Development Bank Capital (CDBC) and Microsoft have formed a partnership to “promote technology innovation and smart city development.” Germany withdraws approval for a group of Chinese investors’ 670 million euro purchase of Aixtron. The German government is seeking greater powers to investigate and potentially block Chinese acquisitions of German companies. China has expressed concerns about Germany’s seeming new protectionist stance towards Chinese investment. German Vice Chancellor Sigmar Gabriel speaks strongly about protecting German interests and gets the cold shoulder during a visit to China. High-level officials from the United Kingdom (UK) and Britain meet to discuss new investment collaborations in the financial sector. The Japanese government pushes Japanese firms to invest in Russia to help facilitate a resolution of the Russo-Japanese Northern Territories/Southern Kurils dispute. Japanese Trade minister Hiroshige Seko and Russian Far East Development Minister Alexander Galushka agreed to promote economic development projects in Russia’s Far East ahead of a summit between their leaders in December. Japan’s JFE Engineering Corporation will start constructing greenhouses in Primorsky Krai in cooperation with a Russian federal state enterprise. The President of the Japanese chambers of commerce in Britain and the European CEO of Mitsubishi warns that more than general assurances about Brexit are needed to comfort Japanese firms in the UK. Korea and Oman establish basis for Korean companies to participate in almost $27.1 billion in energy and infrastructure projects in Oman. Korea Gas Corporation moving forward on cooperation with China National Petroleum Corporation on natural gas trading, joint international projects, and information sharing. Chinese foreign direct investment (FDI) in Indonesia has jumped following repeated high-level meetings between the Presidents of the two countries. Donald Trump’s victory dampens the opportunities for US energy companies in Indonesia. Jack Ma opts to serve as an advisor to Malaysia rather than Indonesia about the e-commerce economy. Chinese technology giants like Alibaba, Tencent, and Wanda Group have expressed their interests in participating in Malaysia’s digital economy plan. During his recent visit to China, Malaysian Prime Minister Najib Razak signed 14 memorandum of understandings totaling USD $47.5 billion. Pundits note both future opportunities and risks relating to increase Chinese investments in Malaysia.

MNCs in the News-2016-10-28

Chinese outward foreign direct investment (FDI) exceeds inward FDI (IFDI) by an increasing amount in September and for the first nine months of 2016. Chinese companies embrace diverse strategies to ensure host country stakeholders embrace their investments. ChemChina’s interactions with the European Union (EU) over its Syngenta acquisition raise new uncertainties about the deal. Chinese FDI flows into Germany now are almost double what they were for the prior ten years! Businesses from the Philippines glom in large numbers onto President Roberto Duterte mid-October trip to China. China Everbright Ltd. CEO criticizes the motives behind some COFDI. Toyota is waiting for news from the United Kingdom (UK) about the post-Brexit tariff situation before making any decisions about future investments in the UK. Despite Brexit, Nissan opts to built its new Qashqai model in the United Kingdom (UK). Japanese firm wins new contract work for Delhi-Mumbai freight railway. Marubeni and Sojitz win multi-billion dollar gas-fired power plant station contract in Indonesia. Korea Electric Power Corporation signs mega-contract to operate four UAE nuclear power plants that it also will build. FDI flows into Indonesia increased 7.8 in the third quarter year over year (YOY). Japanese firms show increasing confidence in increasing their investments in Indonesia. FDI flows into Thailand increase minimally, reflecting limited confidence in the country’s growth prospects. Foreign technology firms push Thailand to undertake various measures to maintain and advanced its status as a “digital nation.” Malaysian Prime Minister Najib Razak will focus on getting more Chinese investment during his trip to China. PowerChina International, Shenzhen Yantian Port Group, and Rizhao Port Group will work with Malaysia on a deep sea port in the Strait of Malacca.

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