the Philippines

In early October, the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations (Wong MNC Center) hosted a workshop entitled “The Effects of Chinese Outward FDI in Southeast Asia” in the San Francisco Bay Area (California, USA). This 1-1/2 day workshop, organized and sponsored by the Wong MNC Center, drew leading academics, researchers, and policymakers from China, Malaysia, Singapore, Thailand, and the United States.

China to release two enhanced negative list for inward foreign direct investment (FDI) in July. Australia keeps hanging up on Huawei despite the latter’s efforts to gain new business opportunities. British officials seem reluctant to let a Chinese-owned British firm’s deal for a small airplanes part maker take off. Warming political relations between China and India provide a fertile environment for the growth of Chinese outward FDI (OFDI) in Indian start-ups. Japan Automobile Manufacturers Association stresses Japanese carmakers’ investment contribution to the US in move to undermine criticism from President Donald Trump. Japan’s financial regulator tells Japanese banks to report suspicious money transfers involving ten Japan-North Korea joint ventures. Chinese government to give LG Display approval to launch USD $6.7 billion OLED plant in Guangzhou, though partnerships with Chinese competitors may be required. SK Engineering & Construction signs letter of intent with Manila on USD $2 billion investment plan for environmentally friendly coal-fired power plants. Mahathir says Malaysia could extend new tax incentives for foreign investment in areas such as technology and research and development. Malaysia seeks to recoup USD $4.5 billion of funding that was potentially lost through 1MDB corruption scandal

China takes steps/promises measures to draw in more foreign direct investment (FDI). China’s State Council details a slew of initiatives to increase greater inward FDI (IFDI) as well as to foster specific types of IFDI. Donald Trump signs executive order authorizing US Trade Representative to decide whether or not to investigate China’s theft of American intellectual property. China’s Ministry of Commerce reports small drop in IFDI over the first seven months of 2017 year over year (YOY) while outward FDI drops dramatically over the first seven months of 2017 YOY. The Philippines is looking to Japan and China to finance investments in energy and power generation projects worth over USD $135 billion. Mitsubishi UFJ Financial Group Inc. to expand operations in Saudi Arabia to support Saudi initiatives to reduce reliance on oil. Kumho Tire Co. to be bought out by its Chinese competitor Qingdao Doublestar Co. for USD $857 million after South Korean state-owned development bank sells its stake to Doublestar. Hyundai to promote Indonesia as Southeast Asian production base because of, among other things, the ASEAN Trade in Goods Agreement will remove car import duties in 2018. Indonesia and Vietnam to boost investment activity following 7th Indonesia-Vietnam Joint Commission on Economic, Science, and Technical Cooperation. Facebook opens full office in Indonesia due to tightening regulations on foreign Internet firms. Recent report touts that Malaysia’s strategic location and competitive position make it attractive for foreign investment. US deepening investigation into money stolen from Malaysian state investment fund allegedly used to obtain around USD $1.7 billion in real estate, jewelry and art.