MOFCOM

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.

MNCs in the News-2020 June

China Ministry of Commerce data shows respectable year-over-year inward foreign direct investment growth (FDI) in April and May, with some hoping for continued growth in the 2nd half of the year. China’s new development initiatives for its Western regions are not succeeding in attracting inward FDI (IFDI) for both business and political reasons. The China Securities Regulatory Commission will look to allow big Chinese commercial banks into investment banking so they can help China fend off the growing challenge from foreign investment banking firms. The United States (US) Pentagon has submitted a list of 20 Chinese companies with ties to China’s military that operate “‘directly or indirectly’” in the US. The Indian government bans almost 5 dozen mobile apps. India’s state government of Maharashtra freezes investment proposals from three Chinese businesses. Japan adds select medical fields to the list of areas requiring special FDI reviews. Japan moves to allocate funds to domestic firms so they have a greater chance to participate in the 5G wireless technology race. Japan’s Kirin Holding will commission an audit of its Burmese joint venture (JV) partner over allegations its JV channels funds to Myanmar’s military. Japan is contemplating Indonesian proposals that Japan participate in its Jakarta-Bandung high-speed rail which is delayed and overbudget. The Korean Communication Commission announces that Google will revise select YouTube subscription practices following a large fine and negative ruling. South Korea outward FDI, which favors North America, plunged dramatically in March. Potential for Doosan Heavy Industries & Construction to start its Indonesian Jawa Thermal Power Plant Construction Project increases after project based second feasibility study. US Presidential election increases pressure on Korean carmakers and tiremakers to invest more in the US.

MNCs in the News-2020-04-24

According to China’s Ministry of Commerce (MOFCOM), more than 1000 companies including many from the United States (US), Germany, and Japan have registered from the 2020 November China International Import Expo. MOFCOM reports that China’s non-financial outward foreign direct investment (FDI) declined less than 1 percent year-over-year when compared to the 1st quarter of 2019. Many interpreted a recent India notification indicating special government scrutiny of FDI from bordering countries as directed against China as a time when Indian companies might be vulnerable. Canyon Bridge, the Chinese owner of the United Kingdom (UK)’s semiconductor designer Imagination Technologies, says the company’s headquarters will stay in the UK. Japan will add the medical sector to the list of sectors where FDI is subject to review pursuant to the Foreign Exchange and Foreign Trade Control Law. Japan’s NEC wins major deal to supply observation satellite to Vietnam. Korea’s Fair Trade Commission needs more time to review Delivery Hero’s deal to acquire Woowa Brothers due to concerns about the anti-competitive effects of the deal. Korea’s GS Engineering & Construction concludes a roughly $450 million deal with the Singapore’s Land Transport Authority to build an Integrated Train Testing Center.

MNCs in the News-2020-04-17

China’s Ministry of Commerce reported that inward foreign direct investment (FDI) plunged over the first three quarters of 2020 when compared to 2019 largely due to the effects of Covid-19. A Shanghai court ordered Chinese shoe company New Barlun to pay USD $1.41 million in damages and litigation costs for trademark infringement and unfair competition to American shoe company New Balance. Huawei responds to criticism in the United Kingdom (UK) and proposed restrictions on its involvement in the UK 5G network by noting its role in keeping Britain online and the damage done by the criticism. A British parliamentarian calls for the UK government to ensure Imagination Technology’s technology base is not moved to China. Yahoo Japan will cooperate with the Japanese government to provide data from consenting users that could help identify clusters. The Board of Investment of Thailand approves Mitsubishi Motors’ plan to improve manufacturing lines at one existing plant to allow for production of hybrids and electric vehicles. After the failure of arbitration, Netflix opts to take South Korea’s SK Broadband to court over special fees for data-heavy content that the latter wants to improve upon the former. LG Chem obtains special privileges from the Polish government enabling its employees dispatched to its electric vehicle plant there to avoid certain quarantine.

MNCs in the News-2020-03-27

The China Council for the Promotion of International Trade (CCPIT) has issued more than 6400 force majeure certificates to help suppliers deal with their inability to meet their contractual obligations. Per China’s Ministry of Commerce, Chinese outward foreign direct investment (FDI) for the first two months of 2020 totaled USD $15.5 billion, a 1.8 percent year-over-year (YOY) increase. China’s MOFCOM reports that Chinese companies put $2.72 billion into 48 countries along the Belt and Road, an 18.3 percent jump YOY. Chinese construction companies prove adept at rapidly building hospitals in countries facing medical infrastructure challenges in coronavirus era. In the first defense product export deal since Japan eased its arms trade ban in 2014, Mitsubishi will sell air radar systems to the Philippines. In an atmosphere where automobile companies are expected to help by producing supplies to deal with Covid-19, Toyota North America moves to step up production of related goods. Samsung Electronics and LG Electronics get exemptions to send engineers to their plants in Vietnam. US International Trade Commissions released documents explaining its default judgement supporting LG Chem’s accusations of trade secret theft by SK Innovation.

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-2020-02-07

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-2019-11-22

China’s National Development and Reform Commission (NDRC) and Ministry of Commerce (MOFCOM) issues new negative list for market access. Despite trade war with United States (US) and slowing economic growth, China witnesses solid inward foreign direct investment (FDI) flows for 1st 10th months of 2019. FDI in China’s insurance sector shows notable developments in 2019. All-China Federation of Returned Overseas Chinese encourages overseas Chinese businesspeople to get involvement in China’s Belt and Road Initiative (BRI). Japan’s Diet passes new investment law that tighten review criteria for inward FDI. Japanese firms may not see worse repercussions from Japan-South Korea political frictions. South Korea Fair Trade Commission (FTC) to create special task force to examine potential unfair business practices by domestic and foreign technology companies. Korea will leverage Korea-ASEAN 2019 Smart City Fair to promote Korean business involvement in smart city development.

MNCs in the News-2019-11-15

According to a German Chamber of Commerce survey, a large percentage of German companies plan on boosting their foreign direct investment (FDI) in China over the next two years. The United States (US)–China trade war and rising costs in China unlikely to led to exodus of FDI outside China because no country possesses the entire package of advantages China does. China MOFCOM reports that China’s non-financial outward FDI (OFDI) grew almost 6 percent over the first 10 months of 2019 year-over-year. US National Defense Authorization Act language may terminate the availability of federal funds to buy electric buses made by BYD at its California factory. South Korean airlines are closing offices in Japan as well as suspending or reducing flights to Japan because of falling tourism resulting from Korea-Japan tensions. Japanese Ambassador to Bangladesh calls on the latter to provide economic incentives and improve policy stability. LG Chem asks the US International Trade Commission to rule quickly on its trade secrets theft case against SK Innovation. Hyundai Heavy Industries submits formal request to European Union (EU) asking for approval of its planned merger Daewoo Shipbuilding & Marine Engineering

MNCs in the News-2019-10-18

At a State Council meeting, China promised more action to eliminate restrictive policies on foreign direct investment (FDI). China’s State Council announced new measures to expand the opening of its financial sector to foreign banks and insurers. China’s Ministry of Commerce (MOFCOM) reported that China’s non-financial outward FDI grew 3.8 percent for the 1st three quarters of 2019 year-over-year (YOY), a slight improvement over the prior YOY period. Per a high ranking Cambodian official, for the period 2016 to August 2019 China was his country’s largest investor, with the Belt and Road facilitating this. Japan may exempt asset management companies, including hedge funds, from its new FDI review regime. A no-deal Brexit might significantly impair the value of Nissan’s FDI in the United Kingdom (UK). Strikes at GM Korea and other issues have dented Korea’s exports. Doosan Group’s move to transfer its data storage and protection system to Amazon Web Services raises concerns about development of local cloud computing sector.

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