Saudi Arabia

MNCs in the News-2017-11-17

China’s Ministry of Commerce (MOFCOM) reports slow growth in inward foreign direct investment (FDI) over the first 10 months of 2017. China dangles prospect of freer car ventures for foreign investors if they meet certain conditions regarding where they invest and what they produce. To meet government requirements, Amazon Web Services sells the physical assets for its China cloud business to local Chinese partner. MOFCOM announces plunge in growth of outward FDI (OFDI) between January and October 2017, linked to its effort to control irrational investment. Troubled Toshiba to sell TV and visual solutions subsidiary to China’s Hisense to obtain cash needed to deal with the fallout of regulatory changes that bankrupted its American nuclear business. SoftBank to invest up to USD $25 billion in Saudi Arabia to support Crown Prince’s agenda. Hyundai sent Vice Chairman to US to develop response to Trump Administration’s desire to revise Korean-US Free Trade Agreement. Hyundai confirmed expansion of its Alabama plant ahead of KORUS FTA negotiations. Tadmax Resources partnering with Korea’s state-owned Korea Electric Power Corp to build USD $840 million power plant in Malaysia. Malaysia’s state-owned Tenaga Nasional Bhd and Indonesian state-owned utility company PT PLN to build coal-fired power plant in Kalimantan.

MNCs in the News-2017-10-27

Shanghai Customs touts 18,000 firms registered in Shanghai Free Trade Zone (SFTZ) since its creation in 2013. State-Owned Assets Supervision and Administration Commission head stresses that state-owned enterprises (SOEs) will play a “leading role” going forward. Toyota claims reduced investment and production at Trump targeted planned Mexican plant not due to politics. Toyota calls for more clarity regarding Brexit plans before deciding to finalize its planned plant in Britain. South Korea’s minister of trade met with Saudi Arabian counterpart to discuss Korea’s planned bid for two nuclear reactors. Korea Development Bank planning to sell stake in Daewoo Engineering and Construction, prompting bids from various notable firms. Airbus planning on partnering with Indonesian state-owned aerospace company Dirgantara Indonesia to build maintenance facility in Indonesia. Riau Andalan Pulp and Paper requests legal certainty for Indonesian investment regarding environmental regulations. Thai Airways International granted permission by the government to enter into joint investment project with Airbus. Thailand’s National Council for Peace and Order approves guidelines for land development in the country’s EEC. Belt and Road Property Development Forum 2018 to draw USD $1.5 billion investments from Malaysia to China. Malaysian minister says no investment deal was finalized during Malaysian government delegation visit to the US. Korean companies shifting investment away from China’s politically difficult market into Vietnam. Southern Vietnam province continues to attract Japanese investment as local People’s Committee aims to ease business concerns.

MNCs in the News-2017-09-22

China’s National Development and Reform Commission (NDRC) promises measures to create a better environment for foreign direct investment (FDI). China courts foreign investment in its energy sector to advance its reform initiatives. European Union (EU) Chamber of Commerce in China releases position paper detailing many areas of concern among its members about China’s policies towards inward FDI (IFDI). Chinese expresses concern about possible implications of proposed EU wide investment screening scheme. Toshiba selects consortium to take over its politically contentious USD $21 billion semiconductor business. Prime Minister May visits Japan as Japanese firms become more hesitant about continued investment in Britain due to Brexit’s slow and uncertain progress. Economic and security concerns prompt Korea’s Industry Ministry to review investment plans by South Korean semiconductor and display companies seeking expansion in China. State-owned Korea Electric Corp. represents South Korea in a bid to build Saudi Arabia’s first nuclear energy plant. Indonesia’s demand for steel is expected to rise substantially within the decade, triggering calls to improve investment conditions for steel producers. Foreign investment in Indonesian startups reaches USD $3 billion so far this year with Chinese FDI patterns shaped by government initiatives. New Thai Digital Park proposed, opening new potential vistas for foreign investors. Sumitomo Corporation starts construction third industrial park in Vietnam with Vietnam’s Deputy Prime Minister calling for best possible conditions for investors. With central government support, Hanwha Techwin to open first of three Vietnamese aircraft engine parts factories early next year.

MNCs in the News-2017-08-18

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.

MNCs in the News-2017-08-04

Donald Trump administration contemplates using Section 301 of the 1974 Trade Act to challenge China’s technology transfer and intellectual property right protection practices. Foreign businesses increasingly fret about the burdens to be flowing from China’s rejection of non-approved virtual private networks (VPNs) and other data controls/restrictions. China’s Ministry of Finance issues a guideline to limit risk of overseas investments by state-owned enterprises (SOEs). Foxconn Technology Group announces major planned investment in the United States (US) to do R&D work relating to self-driving vehicles perhaps due to Trump’s efforts to bring more manufacturing to the US. Workers at Nissan’s Mississippi factory vote on whether to join the United Auto Workers. Japan’s JFE Holdings Inc. considers further investment into India’s JSW Steel Ltd as a way to profit from increased steel demand potentially flowing from Indian Prime Minister Modi’s economic plans. South Korean firms struggle in the Middle East due to government indifference and rising political tensions. South Korea’s LA Cable & System signs USD $195 million contract with Qatar’s state owned utilities firm. Jakarta focuses on simplifying investment application process for foreign firms seeking investment licenses. Indonesia’s government will start taking bids in September for construction of six massive geothermal power plants. Thailand and Australia discuss revising the Thailand-Australia Free Trade Agreement to increase investment and trade. Indian Oil Corp Ltd in talks with partners to search for cheaper location for Pacific Northwest LNG terminal after recent withdrawal of Petronas. South Korea’s Lotte signs Eco-Smart city development contract with Vietnam’s People’s Committee of Ho Chi Minh City. Vietnam’s Prime Minister confirms that creation of Vietnam’s first three special economic zones would enjoy special rules to attract greater investment.

MNCs in the News-2017-07-07

Speakers at event in Beijing argue greater market openness in China might facilitate greater Chinese outward foreign direct investment (FDI) in the United States (US). Iranian, Chinese, and French, public and private firms, sign massive USD $4.8 billion deal to develop Iran’s South Pars (SP11) gas field. US considers applying economic sanctions on Chinese companies that do business with North Korea even if such activities are not prohibited by the United Nations Security Council. Japan and EU agree to broad outlines of new free trade agreement against the backdrop of US protectionist turn. China’s growing labor shortages, flowing from government policies, among other things, provide Japanese robotic manufacturing companies with investment opportunities. Hyundai Heavy Industries signs memorandum of understanding with state owned Saudi Aramco for engine plant in Saudi Arabia. Joint Korean and US Chambers of Commerce business summit results in Korean firms investing USD $12.8 billion in US. PT Freeport’s contract extension yet to be decided by Jakarta contrary to some media reports. Tender for Kuala Lumpur-Singapore high-speed rail attracts strong global interest from potential bidders. Malaysia’s Ministry of Finance issues Request for Proposal for firms interested in developing the Bandar Malaysia project. Singaporean Prime Minister Lee Hsien Long and German Chancellor Angela Merkel discuss enhancing defense, cyber security and trade ties between both countries. Vietnam to cooperate with Saudi Arabia in renewable energy projects, reflecting country’s bid to increase electricity from renewable energy sources. Real estate FDI second most popular sector for foreign investment in Vietnam because of economic growth and new government policies.

MNCs in the News-2017-06-16

American and other trade unions shake and flip over potential risks to McDonald’s workers after the firm sells its self-owned China stores to Citic and Carlyle Group. United States (US) moving to strengthen review processes to encompass Chinese investment through mechanisms that are not yet subject to Committee on Foreign Investment in the United States (CFIUS) review processes. Responding to news that US is striving to tighten the CFIUS review process, China calls on the US to avoiding politicizing “commercial takeovers.” Canyon Bridge files for third time for CFIUS review of its deal with Lattice Semiconductor. Thailand’s government may loosen licensing requirements for Chinese engineers working on Thai-Sino railway to the consternation of local engineer associations. Japan’s Maritime Air Systems and Technologies (MAST) show offers Tokyo venue to boost military sales with Southeast Asia. Japanese firms carefully evaluate business relations and assets in Qatar following country’s crisis. China blacklists 24 South Korean companies following continued anger over THAAD system. Daewoo Engineering and Lotte Engineering & Construction each sign MOU with Laos’s Petroleum Trading Lao Public Co for infrastructure projects. Indonesian government invites Chinese investors to participate in railway construction project in Bali. CAT Telecom infrastructure development plans continue to drive Thailand to be Greater Mekong Subregion’s digital hub. Lawsuit alleges money misappropriated from Malaysian state fund was used to finance USD $2.2 billion acquisition of US energy firm. Malaysian Minister announces that Malaysian companies will continue to invest in Indonesia. Vietnam’s Deputy Prime Minister encourages businesses from both countries to foster their investment partnership. Vietnam has come up with a new decree to deal with transfer pricing by multinational corporations.

MNCs in the News-2017-05-19

Almost five dozen global business groups send letter to top Chinese officials asking China to postpone the implementation of its cybersecurity law. Foreign pharmaceutical companies seek new ways to get high off China’s pharmaceutical policy reforms. Several American senators scream that Ant Financial’s takeover of MoneyGram is a national security threat. Joint strategic and security concerns over China’s Belt and Road initiative drive Japan and India to engage in new economic partnership. China’s economic retaliation against South Korea following South Korea’s adoption of THAAD missile system decreases after the installation of a new Korean government. Daewoo E&C and Hanwha E&C partner with Saudi Arabian government to develop new Saudi Arabian city. Wanda Group Chairman meets with Malaysia’s Prime Minister and considers investment exceeding USD $10 billion in Bandar Malaysia development. Malaysia’s troubled carmaker Proton seeks to sell up to 51 percent stake to foreign investor. Survey shows that despite government encouragement to go overseas smaller Singapore businesses emphasize local investments. Vietnam’s President welcomes Chinese hi-tech investment as Hanoi pursues a green economy and economic growth. Transfer pricing continues to be a serious problem with foreign investment in Vietnam.

MNCs in the News-2017-05-12

Germany’s top financial regulator generically welcomes Chinese investment in Germany’s financial sector. Tokyo and Beijing discuss bilateral economic relations and cooperation, as Japan fears potential spillover of China’s economic problems. India’s Finance Minister invites Japanese companies and financial institutions to engage in India’s “Made in India” initiative. POSCO and SeAH Steel join growing list of Korean multinationals joining American Chamber of Commerce Korea. Malaysian federal government’s support increases Johor’s appeal as a foreign direct investment (FDI) destination. Failure of Chinese bailout deal fuels speculation about future of Chinese investments in Malaysia. Formosa accelerates investment in USD $11.03 billion integrated steel mill project in Vietnam. Vietnam’s Prime Minister meets with Hong Kong delegation to promote infrastructure investment in Vietnam.

MNCs in the News-2017-04-14

China announces draft rule that would require certain firms to obtain permission to transfer data out of China. Apple promotes the adoption by yet more of its China suppliers of renewable energy. A Chinese think tank and corporate collaborator release a report showing that Chinese firms have been substantially boosting their investment in the manufacturing sector. Potential seen for greater Chinese involvement in ambitious American infrastructure programs. China and Myanmar agree to open oil pipeline linking Myanmar’s Kyaukpyu port to Yunnan, China. Likely opposition from Japanese and US government may drive Toshiba to reject highest bid from Taiwan’s China-connected Hon Hai. Korean companies participate in Saudi Arabia’s Vision 2030 project and, accordingly, will get special support from the Saudi government. Foreign firms pour money into South Korea’s IT, fashion, and entertainment startups to profit from Korea’s cultural power. News reports reveal Malaysia Korea Partners funneled money to the leadership in Pyongyang for decades, violating UN sanctions. China’s Alibaba Group and the Malaysia Digital Economy Corporation (MDEC) jointly establish Digital Free Trade Zone. Cheaper labor, less stringent legal structure, and better intellectual property right protections spur Italian corporate pivot from China into Vietnam. Local officials in Can Tho court French investment in various sectors including agriculture.

Pages