outward FDI

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-2016-02-12

Shanghai Zhangjiang National Innovation Zone allows new possibilities for foreign pharmaceutical companies to focus on their core competencies. Sharp’s acceptance of a buyout bid from Foxxconn suggests Japan really may start to welcome more foreign direct investment (FDI). Japan’s Mitsubishi willing to do all work in Australia to win major Australian next generation submarine contract. Gaeseong Industrial Complex falls victim to tit-for-tat between South and North Korea over the latter’s missile and nuclear tests. Daewoo Engineering & Construction wins project commissioned by Indian state-run enterprise at a time of a special strategic partnership between India and South Korea. Indonesia to undertake major FDI liberalization. Indonesian filmmakers cheer opening of the film industry and cinema sector to foreign investment. Indonesian government plans to provide legal guarantee to PT Kereta Cepat Indonesia China (KCIC) for Indonesia’s high-speed rail project. Thailand’s Board of Investment (BOI) touts the successes of its new investment promotion policy and cluster-promotion scheme. Thailand’s Commerce Ministry aims to bolster the overseas investment capabilities of Thai small- and medium-enterprises. Malaysia sees greater Chinese inward FDI in the future. European Chamber of Commerce expresses its hopes for legal and policy changes during the next Filipino presidency.

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-2015-12-18

Inward FDI in China continues to show growth year-over-year. European Chamber of Commerce in China President questions China’s interest in attracting foreign investment. Chinese NGO files a lawsuit against VW for its emissions testing cheating fraud. At the 2nd World Internet Conference (WIC), China’s President Xi Jinping promises to protect foreign companies’ legal rights. At the WIC, the Cyberspace Administration of China announces “China will manage cyberspace according to the rule of law, while providing more room for development based on the market” while President Xi stresses cyber sovereignty and the avoidance of internet hegemony. China shifts “Ten-Year Review of the World Summit on the Information Society” in a direction more to its liking. Microsoft partners with Chinese company to create joint venture that will allow it to sell Windows 10 to government market. AstraZeneca to increase investment in China. Chinese outward FDI for the first 11 months of 2011 exceeded $104 billion. Sinopec to build a fuel station on Woody Island in the South China Sea. Australia’s Defense Department strongly criticizes anxieties about the security implications of a long-term lease of a port in northern city of Darwin to a Chinese firm. Chinese state-owned enterprises purchase significant Australian infrastructure assets. Japan provides massive concessional loan to support India’s construction of its first bullet train. French government pledges not to interfere in Nissan. Japan looks to win Singapore-Malaysia bullet train project. Korean government will create industrial complexes in China and Vietnam and business centers around the world to help Korean firms expand abroad. Changes in Korean cloud market draw substantial foreign investor interest. South Korea gives China Everbright Bank permission to set up a branch in Seoul. Indonesian think tank calls for government to move against Freeport Indonesia contract extension.

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.

MNCs in the News-2015-06-19

Foreign direct investment (FDI) in China in May increases by 7.8 percent year-over-year (YOY). New York Times expects Chinese leaders to take heed of foreign business opposition to proposed restrictive Chinese policy measures. Cisco touts plan to invest US $10 billion in China to fund innovation, equity investment, and research and development. China’s National Development and Reform Commission (NDRC) may turn its attention to cases similar to Qualcomm where there is suspect abuse of intellectual property rights (IPR). China’s Ministry of Industry and Information Technology expands opportunities for foreign investors in e-commerce sector. Stabilized bilateral political relations prop up Japanese FDI in China while China’s less appealing economic prospects and labor issues spur a decline. China’s outward FDI continues to surge with massive increases in Chinese FDI in the EU. Australian government touts investment benefits of recently signed China-Australia Free Trade Agreement

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