METI

MNCs in the News-2019-07-12

Inward foreign direct investment (FDI) flows into China continue to grow, especially in the high-tech sector. Chinese Ministry of Commerce (MOFCOM) official states that Inward FDI (IFDI) is not leaving China en masse and that China will “protect the legitimate rights and interests of foreign investors.” Chinese outward FDI (OFDI) to Europe and North America over the first six months of 2019 shows a noticeable decrease over the same period the prior year. Despite a spying incident and Poland’s President saying he was opposed to Chinese OFDI (COFDI) in strategic infrastructure, Poland’s Foreign Minister told visiting Chinese State Councilor Wang Yi Poland is open to COFDI. Korea reacts strongly to Japanese media report in which a senior member of Japan’s Liberal Democratic party charged dual-use chemicals exported to South Korea ended up in the North. Japan is surprised at Seoul’s strong response to it instituting tighter controls on the export of certain chemicals to South Korea and Seoul making the issue a World Trade Organization (WTO) issue. Japan moving towards a formal WTO case regarding Seoul’s provision of subsidies to South Korean shipbuilders. Hyundai Engineering and Construction signs a $2.7 billion contract with Saudi Aramco for two projects relating to a massive oil and gas refining complex.

Mr. Naoyuki Haraoka's picture

Japanese Market Increasingly Attracts Asian Multinational Corporations

Mr. Naoyuki Haraoka
Posted: Apr 17, 2019

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.

Mr. Naoyuki Haraoka's picture

The Implications of the China-US Trade War Given the Growing Importance of Japanese Subsidiaries to Japanese MNCs

Mr. Naoyuki Haraoka
Posted: Oct 12, 2018

The latest Japanese Ministry of Economy, Trade, and Industry (METI) Statistical Survey on Japanese overseas subsidiaries published on September 26 revealed their sales, facility and equipment investment, and employment all achieved significantly high growth.

Mr. Naoyuki Haraoka's picture

SMEs Can Benefit from Globalization through Indirect Exports

Mr. Naoyuki Haraoka
Posted: Feb 20, 2018

Many anti-globalization activists doubt small and medium enterprises (SMEs) can profit from economic globalization given their competitive disadvantages versus multinational enterprises (MNEs). The good news for SMEs is that MNEs building global supply chains for products such as home electronics or electric appliances will need parts and components from SMEs to achieve competitiveness since many key components are made by SMEs.

Mr. Naoyuki Haraoka's picture

Japanese MNCs in China Are Increasing the Use of the Yuan in Intra-firm Trade with Japan

Mr. Naoyuki Haraoka
Posted: Aug 15, 2016

The internationalization of Chinese yuan is fully underway with rising use in trade, settlement, and financial transactions. To what extent do Japanese multinational corporations (MNCs) in China, which have numerous subsidiaries and extensive production chains there, use the yuan in their transactions?

Mr. Naoyuki Haraoka's picture

The Changed Mission of Japanese Firm Subsidiaries Overseas

Mr. Naoyuki Haraoka
Posted: Sep 18, 2015

“Supply chain” is a term that captures well the essence of the activities of Japanese firms’ subsidiaries abroad. Their overseas plants, particularly in the machinery industry in Asia, are geared towards manufacturing components to take advantage of cheap labor in other Asian countries. Later the components they produce will be assembled in factories in Japan or other sub headquarters in big cities near their components producing factories.