JETRO

MNCs in the News-2019-11-08

China’s Ministry of Justice promulgates draft implementation rules for the country’s new foreign direct investment (FDI) law which contains a lot of positive news regarding intellectual property rights (IPR) and trade secrets. China rejects European Chamber of Commerce claims about the possibility of “promise fatigue.” China’s State Council issues 20 opinions with a strong emphasis on breaking down foreign entry and operating barriers in the banking, securities, and fund management sectors. Consultancy reports that China’s mergers and acquisitions (M&A) activity jumped in 3rd quarter of 2019 versus 2nd, though it remained far under the highs of 2014. Japan’s Fair Trade Commission survey points out a number of internet giant practices that may violate the country’s anti-monopoly law. The United Kingdom’s Brexit is affecting an increasing amount of Japanese there such as by forcing them to develop alternative supply chains. China’s move to end subsidy programs for electric vehicles may give South Korean companies in China new business opportunities. South Korea’s Alliex partners with Vietnam’s Central on cashless payment system in Korea.

Mr. Naoyuki Haraoka's picture

Japanese Market Increasingly Attracts Asian Multinational Corporations

Foreign direct investment (FDI) into Japan has been increasing recently, contradicting the belief Japan is a closed market. Per the Japan External Trade Organization (JETRO), total FDI for 2016 increased more than USD $30 billion over the prior year and 2016 represented the third consecutive yearly increase. Increased FDI from Asian multinational corporations (MNCs) has been noteworthy, recording a 16.7 percent jump over 2015.

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.

MNCs in the News-2018-10-19

Google defends its development of a censored search engine for China saying most queries will succeed. Exxon’s foreign direct investment (FDI) in liquid natural gas (LNG) facilities in Papua New Guinea and Mozambique will allow it to sidestep the barriers emanating from Chinese taxes on United States LNG. Consultancy asserts that regardless of the bad news about plummeting Chinese outward FDI the good news is that Chinese OFDI is being more sophisticated and culturally skilled. Tokyo will work to support FDI in heirless businesses to ensure they do not close. Japanese logistics firms look to partner with Chinese ones to avoid political risks, expedite shipments, and profit from subsidies. South Korea’s Ministry of Oceans and Fisheries will carry out a feasibility study about developing Russia’s Slavyanka port. South Korea is enhancing its efforts to support Korean firms in winning project orders from the United Arab Emirates and Vietnam.

MNCs in the News-2018-06-29

China’s National Development and Reform Commission (NDRC) unveils new nationwide negative list which opens about 17 more sectors and reduces various restrictions. China’s Ministry of Commerce (MOFCOM) and NDRC released a revamped negative list for foreign direct investment (FDI) in China’s free trade zones (FTZs) that has some better features than nationwide negative list. United States apparently to go with enhanced Committee on Foreign Investment in the United States (CFIUS) review process rather than establish mechanisms that specifically focused on restraining Chinese FDI. Nissan picks Thailand as first export market for new hybrid cars which may lead to local production if results and investment incentives are attractive. Sumitomo Mitsui Banking Corporation signs memorandum with Thailand’s governmental agency that the latter hopes will boost FDI. Samsung’s managing leaders recently convened to discuss a growing “China problem” as company confronts various political and regulatory problems. Taiwan’s GlobalWafers intends to follow through on USD $450 million Korean production facility amid increased Sino-US trade tensions. Malaysian government optimistic that investors’ confidence will be restored partly due to Prime Minister Mahathir’ effort to court FDI. Survey reveals Japanese companies interested in setting up manufacturing bases in Malaysia and are looking to invest in new sectors.

MNCs in the News-2017-07-14

Chinese inward foreign direct investment (FDI) in June shows slow growth year-over-year (YOY) while the first half of 2017 showed a very slight decline in inward FDI (IFDI) YOY. Twenty percent of American firms in Shanghai plan to redirect their investment elsewhere. China’s non-financial outward FDI (OFDI) over the first six months of 2017 YOY plummets due to capital controls, tight loan supervision, and overseas factors. Almost a dozen members of American Congress ask US Securities and Exchange Commission to block Chinese-led consortium from buying Chicago Stock Exchange. At a recent conference, Chinese officials tout dramatic future growth in Chinese OFDI and moneys supplied for One Belt, One Road projects. Japan External Trade Organization and India’s provincial governments increase investment cooperation for special industrial zones to meet expansion needs of Japanese firms. Toshiba still negotiating with bidders, as company strives to fulfill government demand to keep chip technology under domestic ownership. SK Group moving to aggressively increase relations with Chinese officials. China considers investment to connect Thailand's Eastern Economic Corridor with Kunming's special economic zone. Malaysian financier central figure in probes related to plundered Malaysian state development fund 1Malaysian Development Bhd. Vietnamese government gradually opens its transportation and logistics sector, providing investment opportunities for foreign firms.

MNCs in the News-2017-06-02

China’s Global Times touts that China remains a popular investment destination for foreign investors. China delays the implementation of a cybersecurity law rule on cross-border data movement for 18 months. Surging Chinese investment in Malaysia is oriented towards the construction sector and creates many, albeit low-skilled, jobs. Qatar may force Japanese companies out of investments in Qatar Petroleum projects. Japanese corporations increasingly partnering with South Korean firms in establishing overseas projects. Hyundai Engineering wins USD $890 million power plant deal in Malaysia. Samsung Heavy Industries snares multi-billion dollar LNG facility construction contract off Mozambique. Jakarta plans to ease business for investors operating in special economic zones. Malaysia and China to organize meetings on construction of three new ports and Bandar Malaysia project. Survey shows this year’s Japanese investment in Malaysia may rise by at least 30 percent. Vietnamese lawmakers call for public private partnerships to attract investment in railway sector. Vietnam’s Prime Minister says time is ripe for American companies to further engage in economic restructuring of his country

MNCs in the News-2017-05-05

The Cyberspace Administration of China will begin hardware and software checks starting June 1. Foxconn Technology Group Chairman indicates it is looking at investment prospects in the United States (US) following meetings with US officials. Japanese Prime Minister Shinzo Abe asks British Prime Minister Theresa May to ensure a smooth transition for Japanese business following Brexit to limit problems for Japanese investors. Japan launches various initiatives to ease the way for greater foreign investment. Russia and Japan agree on key terms and conditions for launching a joint investment fund to boost their investment cooperation. Chinese economic retaliation due to South Korea’s deployment of the US THAAD system has potentially cost the Korean economy USD $7.6 billion. E-Mart to close China outlets by the end of this year partly due to anti-Korean sentiments flowing from Seoul’s deployment of THAAD. Japan’s bid for high-speed rail connecting Kuala Lumpur with Singapore to include financing, talent development, and collaboration with local companies. Foreign technology companies increase Singaporean investment following strong demand and government incentives. Vietnam licensed major gas pipeline project which represents its second billion-dollar foreign investment project in 2017 and an increase of total FDI. Vietnamese Deputy Prime Minister encourages Sumitomo Mitsui to increase investment in the country’s infrastructure.

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.