Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations

MNCs in the News-2020-04-03

Shanghai touts the signing of USD $16 billion in foreign direct investment (FDI) deals as well as a new investment platform. China’s Ministry of Commerce (MOFCOM) will move to open the oil and gas industry chain in East China’s Zhejiang Pilot Free Trade Zone (FTZ) to, among other things, bring in strategic FDI. Senior managers at the Gwadar Port in Pakistan state the coronavirus has not had a serious negative effect on the port’s operations. Hungarian government moves to classify details of loan to finance Budapest-Belgrade rail project, arguing it would help it secure the loan. The production of Japanese automakers in China plummets in February and global output likely to drop due to factory shutdowns in the United States (US) and Europe. Asashi Group (Japan) has received approved from Australian competition authorities to complete its purchase of Australia’s Carlton & United Breweries subject to certain divestitures. Korea’s HDC Hyundai Development Co. acquisition of Asiana Airlines slowed due to delays in competition authority review work resulting from the coronavirus. Korean battery manufacturers in China to benefit from Beijing’s extension of electric vehicle (EV) battery subsidies because they include foreign battery makers.

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.

Pichamon Yeophantong, Ph.D., has joined the Wong MNC Center as a Senior Research Fellow

Dr. Pichamon Yeophantong has joined the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations as a Senior Research Fellow. Dr. Yeophantong is an Australian Research Council Fellow, Senior Lecturer at the University of New South Wales Canberra, and leads a project examining the impacts of Chinese resource and infrastructure investment. For more information, please see http://www.mnccenter.org/research-fellows.

Dr. Jean-Marc F. Blanchard's picture

The New Online World Could Mean Offline for FDI in China: Political and Economic Factors Affecting Future FDI in China’s Online World

The coronavirus, otherwise known as Covid-19, has hit foreign direct investment (FDI) flows into China hard. This should surprise no one—money is scarce; the payback from FDI now seems far away; and resources are being husbanded on the home front.

MNCs in the News-2020-03-20

China’s National Development and Reform Commission (NDRC) notes China will strive to help foreign businesses resume normal operations, will shorten the negative list for foreign direct investment (FDI), and will advance major foreign-invested projects. Shanghai city government highlights that major foreign financial firms continue to inject FDI into the brokerage, asset management, and securities sectors, among others, despite the Covid-19 epidemic. China State Construction Engineering Corporation places first tower cap in mega skyscraper project for Egypt’s new administrative capital, part of the Belt and Road Initiative. Japan’s Ministry of Finance starts to solicit public comment on future revisions to the Foreign Exchange and Foreign Trade Act. List of Japanese companies suspending operations at factories in the United States (US) due to coronavirus grows. Korea Rail Network Authority (KRNA) wins a bid from Thailand to manage a high-speed railway linking three airports. Hyundai Rotem, a subsidiary of Korea’s Hyundai Motor Group, ordered by Brazil’s Ministry of Labor to pay large fine plus moneys due workers for failing to pay workers overtime pay.

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.

Dr. Jean-Marc F. Blanchard's picture

De virus, Decoupling, De-globalization, Downsizing, and FDI in China

China’s coronavirus epidemic has had profound economic effects including dramatically reducing travel within and outside China, severely suppressing business activity in the education, entertainment, food & beverage, and leisure and recreation industries, among others, and disrupting or freezing manufacturing and the delivery of production i

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.

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