joint venture

On October 1, China will establish a new compliant mechanism that, among other things, will allow foreign business associations to raise concerns about the investment environment. China’s Banking and Insurance Regulatory Commission has given permission for a second foreign asset management joint venture (JV), involving BlackRock and Temasek. Looking to exploit China’s financial sector opening, JPMorgan will spend a huge amount of money to take full control of its China mutual fund JV. Foreign pharmaceutical companies fail to win public hospital bulk medicine purchase contracts in China due to an apparent unwillingness to cut prices to near zero. China based firms such as Foxconn reportedly looking at expanding their presence outside China in countries such as Mexico due to troubled political economic environment. Sino-Indian tensions drive Alibaba to suspend plans for new investments in India. US backlists 24 Chinese firms because of their role in the building of South China Sea artificial islands. Chinese outward foreign direct investment (FDI) in Belt and Road countries jumps nearly 29 percent for the first seven months of 2020 year-over-year. Japan will move to improve administrative procedures, such as allowing English paperwork, to draw in more FDI and improve Japan’s prominence as a financial center. Japan is considering tax and other measures to enhance Japan’s role as an international financial center. A Japanese ruling party official raises concerns about TikTok with respect to data privacy and national security. Japan, Australia, and India are discussing a supply chain resilience initiative. South Korean regulators are watching what the US, Japan, and India do vis-à-vis TikTok before they decide how to address relevant data privacy and national security concerns. India’s exclusion of Chinese telecommunications players like Huawei and ZTE from its 5G network may create openings for Korean players.

United States (US) financial giant JPMorgan strikes terms for taking 100 percent stake in its Shanghai mutual fund joint venture (JV). US trade bodies write to US Department of Commerce head to warn about adverse effects of contemplated changes to US export controls of semiconductors and semiconductor equipment to China, stressing for the first time the importance of chips in healthcare equipment. Reported attempted Board coup at United Kingdom (UK) graphic chipmaker Imagination Technologies blocked by UK government. China rejects reported charge that it was donating masks to France on the condition Huawei could participate in France’s 5G network. Japan prepares massive supplemental budget to facilitate Japanese firms leaving China for Japan or Southeast Asia. Indonesia’s partial lockdown in Jakarta drives Japanese firms to temporary shutter their factories there. Korean regulatory authorities will conduct a comprehensive review of Germany’s Delivery Hero’s acquisition of Woowa Brothers, the operator of food delivery app Baemin. India’s Mahindra & Mahindra says it will not inject fresh funding into SsangYong Motor.

China’s tax system has been improving and there are hopes this will boost inward foreign direct investment (FDI). Goldman Sachs contemplates major expansion of employees in mainland China if China’s financial sector opening continues and it can take full ownership of its securities joint venture (JV). JPMorgan moves to increase its ownership of its fund management business in China because of China’s financial sector opening and the attractive opportunities present in the sector. United States (US) pressures on the United Kingdom (UK) to shun Huawei’s presence in its 5G telecommunications system lead UK Prime Minister to query what are the alternatives. Lawsuit by various US states threatens to upend merger of Sprint, in which Japan’s Softbank has a huge stake, and T-Mobile. Softbank proposes huge investment in Indonesia’s planned move of its capital from Jakarta. Korea’s Fair Trade Commission action forces Netflix to revise some clauses in its customer agreements. Korea’s Samsung acquires TeleWorld Solutions, a US-based telecom firm, which may open 5G opportunities in the US.

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.

China’s Ministry of Commerce (MOFCOM) reports United States (US) tariffs on Chinese goods have not significantly affected the country’s flows of inward foreign direct investment (FDI). MOFCOM announces China will blacklist “unreliable” foreign businesses which violate market rules, take discriminatory measures hurting Chinese business rights and interests, or threaten China’s national security. China’s plan to build a $1.9 billion light-railway system in Kazakhstan has stalled as China Development Bank cuts off funding due to possible corruption problems. China keeps open non-money-making Vietnam-China Economic and Trade Cooperation Park (VCEP) because of VCEP’s contribution to better image of Chinese FDI. Japanese and other multinational corporations call for more standardized and clearer rules and greater freedom for data transfer and storage. Airbnb experiences revival in Japan after new regulations caused tens of thousands of listers to check-out. Recent arrests of several Samsung Electronics senior executives for an alleged accounting fraud may distract Samsung from taking advantage of the woes of major competitor Huawei. In light of its recent retreat from overseas ventures, Korea National Oil Corp.’s announcement it planned to invest roughly USD $253 million in the UAE in an oil development project has caused controversy.