LDP

MNCs in the News-2021-May

According to China Ministry of Commerce statistics, China’s utilized foreign direct investment (FDI) over the 1st four months of 2021 showed impressive growth. In a recent report, the British Chamber of Commerce in China highlighted China’s data rules and data flow restrictions as new areas of concern on top of continuing issues like market access and the lack of a level playing field. The China Banking and Insurance Regulatory Commission has given the United States (US)’s Goldman Sachs approval to enter into a wealth management joint venture (JV). In the wake of new data rules and various image problems, Tesla announced the construction of a new data center in Shanghai to store information on gathered on local users and their vehicles. China’s initiation of economic sanctions against various European Union (EU) officials in response to EU sanctions against China has raised questions about whether or not the ratification process for the EU-China Comprehensive Agreement on Investment will move forward. China’s Landbridge rejected concerns that its 99-year lease of Australia’s Darwin port presents any kind of a national security threat. A Japanese Liberal Democratic Party group investigating methods to enhance Japan’s economic security has proposed the creation of a public-private body to develop solutions for public policy issues like supply chain resiliency. An official Chinese media piece warned various prominent Japanese apparel companies’ decisions to stop using Xinjiang cotton might cause them to lose business in China. Japanese export restrictions against South Korea are driving Japanese semiconductor material companies to increase their activities and in South Korea as a way to circumvent Tokyo’s economic sanctions. During Korean President Moon Jae-in’s summit with US President Joseph Biden, Korean companies proposed massive investments in manufacturing plants

MNCs in the News-2020 August

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.