Nomura

Tesla’s road in China becomes bumpier. China’s China Securities Regulatory Commission (CSRC) accepts application from France’s BNP Paribas to set up securities firm in China. China’s foreign direct investment (FDI) in and lending to Africa switch from a focus on energy to minerals which also has implications for the countries that it targets. China’s Ministry of Commerce reports that non-financial outward FDI (OFDI) in the first quarter of 2021 grew 4.6 percent over the same period in 2020, with solid growth in OFDI to Belt and Road Initiative (BRI) countries. Japan’s Line works to improve disclosures and employee data handling practices in the wake of revelations employees at an affiliate in China accessed some of its users’ data. Major investment by Tencent subsidiary in Japan’s Rakuten draws regulatory attention due to concerns about the leak of personal information and technology from the latter to the former. Korea Fair Trade Commission (KFTC) imposes fine on Apple Korea due to Apple Korea actions that disrupted a KFTC investigation of Apple Korea’s abuse of its market dominance. Korean actors move to organize lawsuit against Facebook which has been found by Korean regulators to have violated Korean law by sharing user data without consent. Korea’s Samsung and Hyundai Motor reportedly prepare big proposals for FDI in the US prior to upcoming summit between Korean President Moon and US President Biden. SK Innovation pays $1.8 billion to LG Energy Solutions to settle a dispute between the two firms relating to the former’s theft of electric battery trade secrets from the latter.

China National Development and Reform Commission (NDRC) states China will improve noticeably market access and operating conditions for foreign direct investment (FDI) this year. American Chamber of Commerce in South China reports that number one concern of American businesses in China because of the is China's cybersecurity law. European Union (EU) may adopt legislation relating to inward FDI this year as a result of rising security concerns especially where Chinese FDI involved. Beijing's controls on outward Chinese FDI do not dent Fosun acquisition spree in clothing and luxury goods areas. Nissan in talks with Renault to acquire bulk of French state's 15 percent Renault stake. Japanese companies still waiting to see what happens with Great Britain's EU Brexit negotiations before deciding how to react to Brexit. GM Korea to ask Korean government to make its Korean factory sites foreign investment zones so it can get tax concessions. Doublestar reaches agreement with Korea Development Bank on purchase of 45 percent stake in Kumho Tire as union protests continue. Jakarta makes it easier to invest in energy and mineral sector by reducing regulations and licensing burdens. Prudential in talks with Malaysia's second largest pension fund to sell 30 percent stake in Malaysian unit following Malaysian central bank move to reduce foreign investment stakes. Telekom Malaysia signs memorandum of understanding with Huawei to work together on expanding fiber broadband network reach in Malaysia. Vietnam revokes investment license for foreign-owned oil refinery project. Legal expert says that foreign investors are interested in developing infrastructure projects in Vietnam including the North-South highway but hesitate because of legal problems.