LG Electronics

MNCs in the News-2018-09-28

China State Council meeting decides to pursue numerous measures to increase foreign direct investment (FDI) flows as well as the realization of major FDI projects. Rising United States (US)’ tariffs are driving Asian firms to leave or contemplate departing China for other places in the region. Despite pressures, China Ministry of Commerce (MOFCOM) official notes Chinese outward FDI (OFDI) is to be expected and Beijing will encourage firms with ‘good reputation’ and ‘strength’ to invest. Per MOFCOM the profits of Chinese companies overseas hit USD $137.8 billion in 2017, a 52 percent jump year-over-year (YOY). The Japan Overseas Infrastructure Investment Corp. for Transport & Urban Development (JOIN) and the Japan Bank for International Cooperation will invest $300 million in the $16 billion Texas high-speed rail project. Seeing shifting trade patterns due to China’s Belt and Road Initiative (BRI) and the US-China trade war, Japan’s Nippon Express will seek to expand its shipments on Chinese rail companies. South Korea’s Daewoo to cooperate with state-owned Korean enterprises and other firms to bid on massive nuclear power projects in the Czech Republic and Poland. South Korea and Chile look to build up their infrastructure cooperation.

MNCs in the News-2018-01-08

Chinese drug approval authorities likely to approve several blockbuster foreign drugs in 2018. Hyundai Motor Group faces declining sales growth in 2018 in large part due to political and economic challenges in China. China State-Owned Assets Supervision and Advisory Commission (SASAC) to issue new guidelines to improve behavior of state-owned enterprises (SOEs) in various areas. United States (US) Committee on Foreign Investment in the United States (CFIUS) concerns leads China’s Ant Financial and US MoneyGram to terminate the former’s acquisition of the latter. Japan’s Toshiba Corp sells floundering US nuclear business Westinghouse, which went bankrupt after regulations and other factors stalled many of its projects, to Canada’s Brookfield. US legal process for Takata Corp.’s US unit coming to completion, which should allow company to make payouts to claimants who suffered from Takata’s faulty airbags. Korea urges US policy makers to reconsider the US International Trade Commission's recommended special tariff on imported Korean washers. Lotte Group struggling to shed its politically troubled Chinese hypermarket chain after talks with Thai conglomerate failed to produce agreeable sale price. Indonesia’s state-owned energy company Pentamina took back control of Indonesia’s largest oil and gas block helping Jakarta to expand its control over domestic energy production. Indonesia’s Investment Coordinating Board launches several measures to spur 10 to 14 percent year on year growth in FDI. Thailand’s Board of Investment expects FDI into its EEC to continue to grow as new EEC policies are implemented and foreign companies become familiar with EEC requirements. Chinese FDI into Malaysia is expected to move out of infrastructure and property development and into new sectors due to China’s Belt and Road Initiative. Japanese Ambassador touts that Japanese firms have a good chance to win Kuala Lumpur-Singapore high-speed rail project. Vietnam’s Ministry of Transport has set a new deadline for long delayed Chinese-funded Cat Linh rail project

MNCs in the News-2017-10-06

China’s Ministry of Commerce (MOFCOM) spokesperson stresses that China’s industrial policies will not discriminate against foreign firms. China’s favoritism towards state-owned enterprises (SOEs) not only pressures domestic firms, put foreign companies, too. Bain led consortium still hopes to conclude Toshiba deal despite litigation by competing bidder Western Digital. Chinese authorities announce Honda will recall over 245,000 vehicles in China because of concerns about Takata made air bags. China’s MOFCOM allows HP Inc. to buy Samsung Electronics’ printer business subject to certain restrictions. Samsung and LG to invest in US production facilities to avoid Trump administration protectionist tariffs and setbacks. Tesla Motors to increase investment in Korean electric vehicle infrastructure because of recent changes in Korean government subsidy policies. Only 27 percent of foreign investment pledges for Indonesia fulfilled in the last 10 years causing Indonesian government to undertake corrective action. Freeport-McMoran rejects Indonesian government’s latest divestment plan. Singha Estate Plc announces USD $1.5 billion project spurred by Thai and Maldivian governments’ efforts to promote tourism in both countries. Honeywell first multinational company to participate in the Malaysian Investment Development Authority’s Principle Hub Initiative. Moody’s calls attention to fact that tensions on Korean peninsula may seriously affect Korean investment in Vietnam. Vietnam’s Chamber of Commerce and Industry to host events to attract more Japanese investment.

MNCs in the News-2017-07-07

Speakers at event in Beijing argue greater market openness in China might facilitate greater Chinese outward foreign direct investment (FDI) in the United States (US). Iranian, Chinese, and French, public and private firms, sign massive USD $4.8 billion deal to develop Iran’s South Pars (SP11) gas field. US considers applying economic sanctions on Chinese companies that do business with North Korea even if such activities are not prohibited by the United Nations Security Council. Japan and EU agree to broad outlines of new free trade agreement against the backdrop of US protectionist turn. China’s growing labor shortages, flowing from government policies, among other things, provide Japanese robotic manufacturing companies with investment opportunities. Hyundai Heavy Industries signs memorandum of understanding with state owned Saudi Aramco for engine plant in Saudi Arabia. Joint Korean and US Chambers of Commerce business summit results in Korean firms investing USD $12.8 billion in US. PT Freeport’s contract extension yet to be decided by Jakarta contrary to some media reports. Tender for Kuala Lumpur-Singapore high-speed rail attracts strong global interest from potential bidders. Malaysia’s Ministry of Finance issues Request for Proposal for firms interested in developing the Bandar Malaysia project. Singaporean Prime Minister Lee Hsien Long and German Chancellor Angela Merkel discuss enhancing defense, cyber security and trade ties between both countries. Vietnam to cooperate with Saudi Arabia in renewable energy projects, reflecting country’s bid to increase electricity from renewable energy sources. Real estate FDI second most popular sector for foreign investment in Vietnam because of economic growth and new government policies.

MNCs in the News-2017-03-03

China’s elderly care needs create space for foreign investors. China’s efforts to control capital flight are leading to increased bureaucratic review and deal delays. Japan’s Takata Corp. enters into a settlement pursuant to which it accepted a felony charge and will create two compensation funds worth USD $1 billion. Nissan Motor Co. faces fines relating to worker injuries at its Mississippi and Tennessee auto factories. Despite the threat of Chinese sanctions, Lotte Group exchanges land with the Korean government that the latter wants for its THAAD missile system deployment. In the face of US President Donald Trump’s threat of tariffs on goods imported from Mexico, LG Electronics announced plans for a home appliance plant in Tennessee that will produce for the US market. Freeport McMoran and Indonesia battle it out with some optimistic a settlement will be reached and others fretting about adverse political and economic consequences for Indonesia. Saudi Arabia and Indonesia strike numerous deals following King Salman’s visit to the latter, though Indonesia hopes for tens of billions of dollars more.

Dr. Scott MacDonald's picture

The Hanjin Bankruptcy and Choppy Seas

In early September the Korean shipping company, Hanjin, went into bankruptcy, no longer able carry the burden of its $5.5 billion debt, a long string of losses, and brutally intense competition coupled with the loss of support from its bankers.