MOFCOM

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.

MNCs in the News-2019-09-13

Despite the United States (US)-China trade war, renowned economist highlights that US firms continue to remain in China because of the attractiveness of China as well as limits associated with the alternatives. During a meeting with a Japanese business delegation, Chinese Premier Li Keqiang welcomes more Japanese foreign direct investment (FDI) in China. Although it decreased compared to 2017, Chinese outward FDI in 2018 was the second highest globally after Japan. China is moving to expand “internet plus healthcare” cooperation with BRI countries generally and BRI countries specifically. Japan’s Fair Trade Commission (FTC) is investigating whether BMW’s Japan subsidiary abused its market power to punish dealers that failed to meet sales quotas. Japan’s trade minister notes South Korea’s filing of a World Trade Organization (WTO) complaint will not affect Japan’s export control measures and that it will decide later if it wants consultations. Korean employer and business groups express worries about government plan to ratify parts of International Labor Organization (ILO) convention which they fear will make Korean labor unions more powerful. Head of LG Chem opines that his company’s lawsuit against SK Innovation in the US does not undermine the national interest.

MNCs in the News-2019-09-06

On the eve of German Chancellor Angela Merkel’s visit to China, China’s Ministry of Commerce (MOFCOM) reports German foreign direct investment (FDI) in China grew more than 60 percent over the first seven months of 2019 year-over-year. Chinese media delivered some packaged criticisms against FedEx for the latter’s alleged shipments of controlled goods and rerouting of packages destined for Huawei. Relatively small-scale protests took place in three Kazakhstan cities against potentially questionable Chinese factory FDI. The United States (US) concludes declaration with Poland for the rigorous evaluation of foreign suppliers involved in 5G networks which some see as directed at China and Huawei. Nissan considers leaving Korea as Korea-Japan frictions make its challenging situation there even worse. Uniqlo partners with the International Labor Organization (ILO) to support research on labor markets and social security systems in some of its production hubs in South and Southeast Asia. Korean economic difficulties due to frictions with Japan encourages Hyundai union to settle with management without a strike. Korean government official meets with LG Group and SK Group executives to try to get them to resolve trade secrets dispute that LG Chem has brought to the US International Trade Commission.

MNCs in the News-2019-08-16

China’s Ministry of Commerce (MOFCOM) announced inward foreign direct investment (FDI) over the first seven months of 2019 grew 7.3 percent over the same period last year. The city of Beijing intends to relax controls over FDI in cultural and entertainment businesses. Chinese FDI into Europe has slowed as a result of economic uncertainties and trade frictions. A survey suggests Vietnam, Singapore, and Indonesia are the top three Asian countries presenting the best opportunities for participating in China’s Belt and Road Initiative (BRI). Japanese firms in Hong Kong are becoming cautious given tumultuous situation there. Japan alerts new Andhra Pradesh Chief Minister that talk of renegotiating power purchase agreements raises risks. Korean lawmakers contemplate limiting Korea Investment Corp.’s ability to invest in Japanese companies with ties to wartime forced labor. Korean consumer boycott of Japanese goods and services produces decline in imports of Japanese goods of 14 percent over the same period the prior year.

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.

MNCs in the News-2019-06-14

People’s Bank of China willing to back “pilot program based in Shanghai to remove the foreign ownership limit in firms providing securities and fund management services.” According to China Ministry of Commerce report, the growth rate of United States (US) foreign direct investment in China seems to be slowing. Chinese firms have been become increasingly active in hydropower sector overseas. Shanghai’s new technology board seen offering opportunities for Chinese firms encountering limits in dealing with the US or US companies. Tokyo Electron not to supply “Chinese clients blacklisted by Washington.” Japan’s Inpex ready to agree in principle with Indonesia to build a USD $18.4 billion liquefied natural gas plant. Renault Samsung Motors union cancels plans for an all-out strike due to workers going on strike against union management. LG Chem forms 50-50 joint venture with China’s Geely to position itself for new market opportunities after Chinese government electric vehicle battery subsidies cease.

MNCs in the News-2019-06-07

China’s Ministry of Commerce (MOFCOM) reports United States (US) tariffs on Chinese goods have not significantly affected the country’s flows of inward foreign direct investment (FDI). MOFCOM announces China will blacklist “unreliable” foreign businesses which violate market rules, take discriminatory measures hurting Chinese business rights and interests, or threaten China’s national security. China’s plan to build a $1.9 billion light-railway system in Kazakhstan has stalled as China Development Bank cuts off funding due to possible corruption problems. China keeps open non-money-making Vietnam-China Economic and Trade Cooperation Park (VCEP) because of VCEP’s contribution to better image of Chinese FDI. Japanese and other multinational corporations call for more standardized and clearer rules and greater freedom for data transfer and storage. Airbnb experiences revival in Japan after new regulations caused tens of thousands of listers to check-out. Recent arrests of several Samsung Electronics senior executives for an alleged accounting fraud may distract Samsung from taking advantage of the woes of major competitor Huawei. In light of its recent retreat from overseas ventures, Korea National Oil Corp.’s announcement it planned to invest roughly USD $253 million in the UAE in an oil development project has caused controversy.

MNCs in the News-2019-05-17

According to China’s Ministry of Commerce (MOFCOM), the growth rate of inward foreign direct investment (FDI) from the United States (US) into China over the first four months of 2019 dropped noticeably year-over-year (YOY). Beijing moves to tighten controls over technologies such as cloud computing, big data, and industrial security systems to bolster national information security. Expansion of American tariffs on Chinese goods drives more companies out of China. US Commerce Department’s proposed ban on hardware and service exports to Huawei could severely affect the firm and its American suppliers. Japanese companies working to use more foreign directors to enhance corporate governance and benefit from new thinking. Japan’s Toyota expresses dismay at US President Trump’s statement that “the US needs to defend itself against foreign cars and components.” FDI flows into South Korea for the first quarter of 2019 plummet YOY with some attributing it to the end of tax breaks. Hoping to position itself for the time when subsides for new energy vehicles (NEV) end, South Korea’s SK Innovation plans to open a second battery factory in China.

MNCs in the News-2019-03-22

According to China’s Ministry of Commerce (MOFCOM), inward foreign direct investment (FDI) for the first two months of 2019 grew 5.5 percent year-over-year (YOY). China’s State Administration of Foreign Exchange (SAFE) makes it easier for foreign companies to manage their foreign exchange. Italy may open four ports to Chinese FDI as part of its participation in the Belt and Road Initiative (BRI). Germany to establish state-owned fund to protect key companies from takeovers by foreign companies, especially Chinese ones. Koreans forced to work for Japanese corporations without compensation during World War II are rushing to file lawsuits before the statute of limitations runs out. Toyota announces it will build a new hybrid car in Britain for its Japanese peer Suzuki despite Brexit uncertainties. South Korea’s Gyeonggi Province considers bill requiring schools to put “‘war criminal tags’” on products manufactured by Japanese firms. South Korea’s S-Oil and Hyundai Oilbank will pay USD $127 million in fines to the United States (US) Justice Department for fixing fuel prices at US military bases in Korea.

Pages