OFDI

MNCs in the News-2016-05-20

Chinese committee has been examining technology products (hardware, software, and other) sold by by big foreign companies for security risks. Apple CEO Tim Cook meets with Chinese officials in an additional effort to curry government favor. Beijing Automotive Industry Holding Co. has big globalization plans which include working with foreign government partners. Nissan faces South Korea fines and mandatory recall as well as consumer lawsuits over so-called emissions defeat device. South Korean CJ Group senior managers meet with top level Indonesian delegation to discuss cooperation. At forum in Seoul, Indonesian president welcomes more Korean investment and emphasizes his government’s progress in creating a better investment environment. Indonesian Energy and Mineral Resources Minister Sudirman Said meets with US companies to tout investment opportunities in the energy sector. Thailand and China continue negotiations to settle on cost estimates for the Bangkok-Nakhon Ratchasima high-speed rail project. Uber Technologies press Thai officials to legalize its services. Singaporean investors continue to remain important to Vietnam. Vietnam’s State Capital Investment Corporation and the Russian Direct Investment Fund sign MoU to establish a Russian-Vietnamese investment platform.

MNCs in the News-2016-05-13

Inward FDI into China between January and April rises almost 5 percent over the same period last year. Chinese Premier Li Keqiang touts China’s plan to take measures to encourage greater inward foreign direct investment. China is investigating foreign and domestic drug firms for possible violations of competition laws and regulations. Foreign pharmaceutical firms in China take action to offset profit pressures flowing from government actions. Apple invests $1 billion in Didi Chuxing, following various adverse actions against it in China. Beijing Municipal Court denies Zhujiang Beverage the ability to use the Facebook name on its products. China outward deals in 2016 to date already have topped the figures for 2015. Some Chinese state-owned enterprises are adopting the sovereign immunity defense to escape legal liability in the U.S. SK Group explores cooperation possibilities with Kuwaiti government and businesses officials visiting Seoul. Using investor state dispute measures Hanocal Holdings is suing the Korean government for compensation over excess taxes. Indonesian President urges his Cabinet to do more to improve the ease of doing business and to garner an investment grade rating from Standard & Poor’s. Indonesian Investment Coordinating Board Chairman Franky Sibarani touts his country’s reforms at the HSBC Economic Outlook 2016 conference. Indonesia President Joko “Jokowi” Widodo meets with Chinese State Council Yang Jiechi to discuss investment and trade cooperation. Vietnam calls on foreign firms to contribute more to Vietnam’s economic development.

MNCs in the News-2016-04-08

China fails to submit new negative list proposal to US. Chinese firms are pouring money overseas driven by a depreciating currency among other factors. The Washington Post calls for a new approach to Chinese outward foreign direct investment (FDI) that takes into account non-traditional risks. ZTE replaces three top executives in reaction to US sanctions and warns of possible further penalties. China’s Beijing Urban Construction Group wins bid to build a US $300 million international cargo hub and airport in Bolivia. Korea Electric Power Corp. wins its first overseas solar power plant contract. Indonesia’s Investment Coordinating Board warns it will annul the investment permits of foreign companies that are avoiding their tax obligations. Indonesia and France work to expand the possibilities for French infrastructure investment in Indonesia. Thailand’s United Power of Asia Plc has signed an agreement with Myanmar’s state utility to construct a gas-fired power plant in the Dawei special economic zone. Russia and the US are competing for investment opportunities in Vietnam. Vietnam moves to increase its harvest of investment, especially FDI, in the agricultural area. Vietnamese representatives court investors from the Chinese mainland, Hong Kong, and Macao at a seminar in Hong Kong.

MNCs in the News-2016-03-25

China announces a recall affecting BMW Mini Coopers. Chinese M&A and outward M&A deal values hit record amounts for the year to date. Leading Chinese brands are earning an increasing amount of their revenues from overseas. China Railway Group Limited to invest billions of dollars in an integrated office complex in Kuala Lumpur and will set up its regional headquarters there. China’s Railway No. 3 Engineering Group and SinoFortone Group conclude MOU with Scotland that has the potential for US $14 billion in infrastructure projects. Japan’s Inpex multibillion dollar LNG project in Indonesia may undergo a dramatic transformation due to a Presidential decision to move the project onshore. Korean prosecutors raid Volkswagen’s vehicle inspection center to probe emissions equipment on the German’s company’s new cars. Korea’s GS Engineering and Construction wins US $1.26 billion contract for world’s largest rolling stock and bus base in Singapore. A Korean consortium including Daewoo Engineering and Construction and Hanwha Engineering Construction have won a $18-20 billion housing project in Saudi Arabia. Korean firms will invest in Russian Far East for “fishy reasons.” At the BOAO Forum for Asia, Indonesia Vice President Jusuf Kalla says his country needs to improve its regulatory efficiency. Indonesia aims to secure a 30 percent increase in FDI from China in 2016. Thai Deputy Prime Minister courts South Korean investment. Vietnam grants Samsung Electronics Vietnam permission to establish a USD $300 million research and development project in Hanoi.

MNCs in the News-2016-03-11

China’s Ministry of Commerce (MOFCOM) reports that foreign direct investment flows into China topped USD $22.5 billion in the first two months of 2016. Bristol-Myers Squibb moves to deal with fallout of US Securities and Exchange Commission (SEC) Foreign Corrupt Practices Act settlement relating to its China joint venture. Chrysler to recall nearly 21,000 vehicles in China that have an oil pipe defect. Chinese outward foreign direct investment (COFDI) soars YOY with smaller and private enterprises becoming more important proportionally. Statistics for 2015 show strength of COFDI in Europe. China sees room for more COFDI in Russian agriculture as well as agricultural cooperation. Some believe COFDI in the US has the potential to influence voting patterns in some localities. Chicago Transit Authority awards CSR Sifang America a USD $1.3 billion railcar supply order. Mitsubishi partners with Korean firm on government awarded coal-fired power plant project in Vietnam. Foreign businesses in Korea voice concern about the discretionary legal and regulatory environment and call for greater stability. Korea Trade-Investment Promotion Agency has concluded a Memorandum of Understanding with Italy’s SIMEST that will facilitate more Italian investment in Korea. Korea and Egypt expand their bilateral cooperation increase infrastructure and cooperation opportunities for Korean firms in Egypt. The liberalization of Indonesia’s cinema sector draws increases foreign investor interest in cinema screen construction in the country. The Thai Business Development Department (TBDD) and Franchise License Association (FLA) will cooperate to assist franchise business operators conduct business in ASEAN countries, China, and Japan. State Railway of Thailand (SRT) governor welcomes foreign construction companies to participate in government investment projects provided they find a Thai partner and obey Thai rules and regulations.

MNCs in the News-2016-02-19

China’s State Council will work to expand service and merchandise trade by giving foreign businesses new opportunities. Chinese Ministry of Commerce think tank researcher expects Chinese outbound M&A to hit new record in 2016. Regulatory issues in China and abroad appear to impact some Chinese outward foreign direct investment (FDI). Industrial and Commercial Bank of China Europe) and the Chinese embassy in Spain scramble to react to Spanish police raid in connection with suspected money laundering by ICBC Madrid. COSCO formally declared the preferred bidder for the privatization of of Greece’s Piraeus port. Visit of South Korea’s Trade Minister to eBay Korea’s Incheon facility leads the latter to promise to help small Korean merchants tap the online export market. Volkswagen Korea faces ongoing pressure from Korean regulators in connection with recall orders relating to its emissions-data cheating cars. South Korean outward FDI experiences strong growth in 2015. South Korea accuses North Korea of using Kaesong moneys for its military programs. Korean government agencies mobilize to encourage foreigners to participate in the development of Korean startups. Indonesia’s e-commerce sector lauds government’s plan to open the e-Commerce to FDI. Indonesian president tells businesspeople at US-ASEAN Business Council Conference that his country will undertake more FDI-related reforms. Thai officials express optimism about the Thai-Chinese negotiations about a medium-speed rail project. Vietnamese and American companies strike numerous deals on the sidelines of the US-ASEAN Summit. Vietnam’s southern Binh Dinh Province will take steps to attract more FDI.

MNCs in the News-2016-02-05

Shanghai’s Jiading People’s Court imposed fines and jail terms on OSI China for 2014 safety scandal. China’s General Administration of Quality Supervision, Inspection, and Quarantine orders Volkswagen to recall defective cars. Chinese outward foreign direct investment (FDI) shows no meaningful adverse impact from Chinese efforts to control capital outflows. China rejects media reports that the China-Indonesia high-speed railway project connecting Jakarta with Bandung has been suspended. COSCO looks to win bids for port contracts in Cyprus. Yahoo Japan besieged by criticism about its efforts to deal with the sale of illegal ivory on its website. Japan and Iran conclude investment pact. Korea’s Fair Trade Commission (FTC) fines Lotte founder and Lotte subsidiaries for false and incomplete reporting of ownership stakes and structures. Korea Water Resources Corporation to partner with Asian Development Bank to limit water waste and improve resource management. Indonesia’s Telekomunikasi blocks Netflix. Indonesia moves to remove barriers hindering infrastructure projects. Indonesia religious group calls for additional study of Jakarta-Bandung high speed rail. Japanese investors encourage Thailand to join the TPP, saying it will have positive investment effects. Vietnam’s Foreign Investment Agency reports positive figures in January for investment growth and disbursements.

MNCs in the News-2015-10-16

Inward foreign direct investment (FDI) flows into China grew 7.1 percent in September over the prior year. China’s National Development Reform Commission expects to produce first draft of antirust guidelines for the automobile sector by the end of October. China’s State Administration of Taxation moves forward with plan to deal with tax avoidance issues such as transfer pricing. Google reported activates Google Maps and Google Earth on and moves servers to the Chinese mainland. IBM to allow China to view its security codes in a clean room to assuage Chinese concerns about foreign technology. Chinese OFDI continues to show strength, especially along One Belt, One Road. Russian subnational units court Chinese investment. Dakang New Zealand pulls out of massive dairy investment in New Zealand blaming regulatory obstacles. Chinese anticorruption authorities move against Sam Pa as part of investigation of Su Shulin and Sinopec. Japan works with Iran to bolster its investment opportunities in the country. Korea’s Trade-Investment Promotion Agency holds job fair to help young Korean jobseekers land positions with foreign companies in Korea and abroad. Starbucks Coffee Korea brews up a new mix of programs to give back to the community in Korea. Korean firms score well in winning packages to build a massive oil refinery in Kuwait. Freeport favors IPO divestment method to satiate Indonesian government requirements for ownership stake reallocation.

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