natural resources

Dr. Jean-Marc F. Blanchard, Founding Executive Director of the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations, queried by Finance Asia about Chinese Outward FDI Trends

This October 15, 2024 Finance Asia piece by Han Shih Toh discusses evolving patterns in the volumes, geographic, and sectoral destination of Chinese outward foreign direct investment (FDI). Responding to queries from Toh, Dr. Jean-Marc F. Blanchard, Founding Executive Director of the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations, said he did not accept that Chinese outward FDI (OFDI) is becoming “small and beautiful.’” He noted that it was shifting to manufacturing and that there was a much greater emphasis on Southeast Asia.

MNCs in the News-2020 December

China’s National Development and Reform Commission (NDRC) and Ministry of Commerce (MOFCOM) release revised 2020 catalog of encouraged industries for foreign direct investment (FDI). China’s NDRC issues rules relating to FDI national security reviews. China’s Standing Committee of National People’s Congress considering amendment to criminal law that would increase prison terms for intellectual property rights (IPR) crimes. Chinese outward FDI (OFDI) in Latin America in 2020 a bright spot versus Chinese OFDI (COFDI) in other regions like Europe. China’s Ministry of Foreign Affairs stresses at news briefing that FDI in Belt and Road Initiative (BRI) and CPEC has not declined with many projects showing good results despite Covid-19. United States (US) Congress to provide billions of dollars to fund removal of ZTE and Huawei equipment from US telecommunication carriers’ systems. Japan not succeeding in attracting foreign financial firms due to tax, red tape, language barriers, and other factors. Japan 5G players gain potential new openings due to global crackdown on Chinese companies such as Huawei and ZTE. United Kingdom (UK) and European Union (EU) post-Brexit deal may not prevent Japanese carmakers from leaving the UK. Japanese group to supply $1.8 billion for coal-fired power plant in Vietnam despite complaints about the environmental impact of the plant. Korea Fair Trade Commission (KFTC) will administer a survey to Google Play Store users to accelerate its review of Google’s plan to increase application transactions to 30 percent. Hyundai Heavy Industries Holdings receives Chinese government approval for its $1.8 billion acquisition of Daewoo Shipbuilding and Marine Engineering. Korea electric vehicle (EV) battery makers move to diversify away from China, turning to other countries and local firms for raw materials and components. LG Group has signed a major investment deal with Indonesia that would facilitate its access to EV battery raw materials and product.

Dr. Jean-Marc F. Blanchard's picture

Casting after Covid-19 or Premature Predictions about COFDI’s Demise

Dr. Jean-Marc F. Blanchard
Posted: Apr 28, 2020

Last month, I wrote pessimistically about the prospects for foreign direct investment (FDI) in China in the post-coronavirus world. Contrastingly, I am not so pessimistic about the future of Chinese outward FDI (OFDI), though China’s economic situation, the challenged cash flows and balance sheets of Chinese investors (state-owned and private), and China’s ever present worries about capital flight will constrain OFDI amounts. This seemingly pollyannaish view derives from home (China) and host (recipient) country factors shaping Chinese OFDI (COFDI).

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.

MNCs in the News-2019-01-11

During a meeting with Tesla CEO Elon Musk, Chinese Premier Li Keqiang stated his country welcomes investments from foreign firms and is open to deepening cooperation with them. An official from the Beijing Central Business District (CBD), which is undertaking steps to attract higher quality firms, touts foreign direct investment (FDI)’s contribution to CBD. Chinese merger & acquisition (M&A) activity in the US in 2018 plummets. Rising Committee on Foreign Investment in the United States (CFIUS) scrutiny of foreign attempts to purchase minority stakes in American companies has fueled a major drop in Chinese venture funding of United States (US) start-ups. Chinese FDI pours into Latin America as US presence wanes and Latin American technology firms thirst for funding. South Korea President Moon Jae-in accuses Tokyo of politicizing recent court decisions over wartime labor. Meeting with his British counterpart, Japanese Prime Minister Abe Shinzo urges the United Kingdom (UK) to avoid a no-deal Brexit. During his New Year Press conference last week, South Korean President Moon reiterated his support for economic cooperation between the two Koreas and called for a lifting of economic sanctions. State-run Korea National Oil Corp. (KNOC) moves to liquidate overseas resources development projects that generated huge losses for the firm in 2017.