Malaysia

Wong MNC Center Executive Director Jean-Marc F. Blanchard Gives Two Speeches at 2023 International Studies Association Annual Meeting

In mid-March, Dr. Jean-Marc F. Blanchard, Founding Executive Director of the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations (Wong MNC Center), gave two speeches at the 2023 International Studies Association Annual Meeting, one of the largest global gatherings of international relations specialists, in Montreal, Canada.

Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations orchestrates successful workshop on the effect of Chinese outward FDI in Southeast Asia

In early October, the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations (Wong MNC Center) hosted a workshop entitled “The Effects of Chinese Outward FDI in Southeast Asia” in the San Francisco Bay Area (California, USA). This 1-1/2 day workshop, organized and sponsored by the Wong MNC Center, drew leading academics, researchers, and policymakers from China, Malaysia, Singapore, Thailand, and the United States.

MNCs in the News-2020 November

Foreign direct investment (FDI) into China continues to surge despite Covid-19 and other challenges. China’s Ministry of Commerce says China will take further measures to liberalize ownership restrictions for foreign firms in the service sector. Shanghai shows strength in attracting inward FDI (IFDI) and adds to its regional headquarters and research and development center totals. India moves to ban an additional 43 Chinese phone apps including Aliexpress due to concerns about consumer privacy and national security. China states it will continue to support the construction of the China-Pakistan Economic Corridor (CPEC). Malaysian state government of Melaka terminates $10.5 billion Melaka Gateway project. Nissan moves to sell only electric vehicle (EV) or hybrid cars in China to meet Beijing’s goal of all new vehicles being eco-friendly. The Regional Comprehensive Economic Partnership (RCEP) is expected to have notable impacts on Japanese FDI as well as supply chains given its provisions relating to tariffs, rules of origins, and intellectual property. Brexit may lead the European Union (EU) to slap tariffs and other requirements on EVs which have significant adverse effects on Japanese EV production in the United Kingdom. Tokyo Gas and Marubeni will construct a liquefied natural gas fired power plant in Vietnam. Korea’s Fair Trade Commission reportedly has come to the conclusion that Google abused its market position to prevent modified Android operating systems. The labor union at IKEA Korea strikes for similar wage treatment to workers at IKEA workers elsewhere. Some Korean steelmakers return back home due to government subsidy program. Korean consortium wins engineering, construction, and operations contract for $1 billion bridge project in Bangladesh.

MNCs in the News-2020-03-13

China’s State Council identifies measures to encourage greater foreign direct investment (FDI) into China. Shanghai continues to attract inward FDI and seeks to reach new heights in 2020. China’s TikTok to establish center in United States (US) to assuage worries that user data is being transmitted back to China. US Treasury Secretary Steven Mnuchin tells US Congressional committee that the US is working with the International Monetary Fund and World Bank to ensure their funds are not used to repay Belt and Road Initiative debts. Japan will not allow investors filing applications under its new FDI review system to submit notice online or in English. Japanese Ministry of Finance data shows Japan’s overseas investment earnings rose steadily in January 2019, offsetting deficits in other areas. Hyundai Heavy Industries’ acquisition of Daewoo Shipbuilding & Marine Engineering encountered another obstacle with the European Commission delaying its decision on the merger until the summer. Korea’s Samsung facing hindrances to its efforts to boost production at some of its Vietnam factories due to Vietnam’s restrictions on Korean travelers resulting from the coronavirus.

MNCs in the News-2020-03-06

China assures foreign investors measures to “help firms resume operations and restore supply chains” disrupted by the coronavirus epidemic will treat “foreign and domestic companies equally.” Foreign intellectual property filings (invention patents and trademarks) in China show respectable growth in 2019 over the prior year due to legal, regulatory, and processing improvements. Beijing Kunlun on the verge of fulfilling United States (US) Committee on Foreign Investment in the United States (CFIUS) to sell Grindr. CFIUS reportedly has advised US President Donald Trump to block German firm Infineon, who counts China as a major client, planned purchase of Cypress Semiconductor. Japan’s Council on Investment in the Future contemplating ways to protect the economy from supply chains disruption in China caused by the coronavirus epidemic. The Japan Institute for Overseas Investment has concluded a Memorandum of Understanding with Zambia to join a network to facilitate FDI flows to Zambia. Korea Communication Commission develops arbitration proposal that might serve as a template for resolving conflicts between content providers and service providers. Vietnam to quarantine all visitors from South Korea potentially hindering Korean companies that are becoming increasingly prominent investors there.

MNCs in the News-2020-02-28

American Chamber of Commerce in China survey shows foreign businesses want tax breaks, clearer and more consistent policies, and greater transparency to help their recovery from the coronavirus epidemic. Survey of European businesses in China reflects, among other things, dissatisfaction with “unpredictable rules, highly restrictive quarantine demands and extensive pre-conditions to restart operations.” Huawei plans to build its first European Union (EU) manufacturing plant in France to address security and other concerns. United States (US) Transportation Security Agency requests its employees to cease using China’s TikTok app to create public content and promotional materials. Tokyo may revise its Foreign Exchange and Foreign Trade Act to lighten advance notice requirements for certain entities such as university endowments and corporate pension funds. Nissan warns that the failure to strike a free trade agreement with the EU post-Brexit may affect the future of its factory in the United Kingdom. Seoul to modify laws and boost incentives to lure more large South Korean companies to come home.

MNCs in the News-2020-02-21

China’s Ministry of Commerce reports that inward foreign direct investment (FDI) in January reflected a small increase over the same period last year, with South Korea’s inward FDI (IFDI) surging and IFDI in medical equipment and instrumentation showing strong increases. Foreign businesses seem attracted by the Greater Bay Area’s promise of market opportunities and ongoing market liberalization, though policy, legal, and regulatory barriers still deter/concern some. The coronavirus’s adverse effect on the movement of goods within and outside China has affected some Belt and Road Initiative projects. Chinese contractors in Indonesia reject foreign media reports coronavirus has had a significant adverse impact on the Jakarta-Bandung high-speed rail project. Japan issues new rules relating to FDI screening in the wake of the passage of its Foreign Exchange and Foreign Trade Act. Japan’s Shimizu and Indonesian state-owned enterprise form joint venture to extend Jakarta’s mass transit system. Korea’s LG Chem wins default judgement from United States (US) International Trade Commission regarding its lawsuit against SK Innovation for violating its electric vehicle rechargeable battery trade secrets. Korea’s Samsung faces Iranian retaliation for restricting Galaxy stores app services to Iranian users.

MNCs in the News-2020-02-14

JPMorgan (China) intends to assume full ownership of all its mainland China operations by 2021 to take advantage of China’s financial sector opening. Chinese regulators approve United States (US) credit card firm Mastercard Inc.’s application to establish a bankcard clearing house joint venture. Peter Navarro urges the US to reduce its reliance on Chinese pharmaceutical and medical supplies. New US regulations expanding the authority of the Committee on Foreign Investment in the United States (CFIUS) with respect to the review of foreign direct investment (FDI) have gone into effect, with notable implications for Chinese FDI in the US. Coronavirus impact on supply chains and production in China accelerates move already occurring because of US-China trade war and rising labor costs in China. Japan is excluded from list of countries exempted from new CFIUS review ambit, but this may change. Merger of Korean shipbuilding giants potentially affected by Japanese filing of World Trade Organization petition, charging illegal subsidies. Korea’s SK Engineering & Construction wins mega-deal to build a beltway in Kazakhstan.

MNCs in the News-2020-02-07

China’s Ministry of Commerce pushes Chinese Chambers of Commerce to provide force majeure certificates to Chinese firms struggling to meet their contractual obligations due to disruptions caused by the coronavirus crisis. Wuhan Institute of Virology move to apply for a patent to use United States (US) firm Gilead’s remdesivir to treat pneumonia like symptoms raises intellectual property issues. Huawei’s Chief Representative to European Union (EU) institutions says the firm will build 5G manufacturing bases in Europe. US Attorney General Bill Barr advocates US and its allies taking controlling stakes in Nokia, Ericsson, or both to fend off Huawei 5G challenge. Japan’s Ministry of Defense reveals two new Japanese defense-related companies that suffered cyberattacks, without stating if classified information was leaked. Japanese company plans to cope with Brexit subject to change depending upon trade negotiations between the United Kingdom (UK) and the EU. Japan files petition with the World Trade Organization to challenge planned merger between Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering. Panama re-awards Metro Line 3 to Korean consortium, rejecting challenges from Chinese firms and a consortium with a Chinese company.

MNCS in the News-2020-01-31

The coronavirus is affecting the operations of numerous multinational corporations (MNCs) in China, though many remain hopeful about the longer-term and are not overreacting. The former Chairman of China’s Sinopec opined that Chinese foreign direct investment (FDI) in sensitive areas and big deals would be avoided due to the contemporary political environment. Chinese firms win railway tenders in Namibia, where they already have a noteworthy presence. Japanese Diet bill proposes requiring major technology firms, foreign and domestic, to report annually to Japanese authorities on practices like data collection and also to establish complaint procedures. Due to the coronavirus, Toyota Motors suspends operations in China pending further review. South Korea seeks to create a better environment for domestic and foreign startups to promote growth. South Korean FDI in the US hits USD $10 billion for the fourth consecutive as relatively higher growth rates and lower taxes prove attractive.

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