semiconductors

MNCs in the News-2020-September

China’s Ministry of Commerce (MOFCOM) issues rules relating to China’s long-discussed “unreliable entities” list. MOFCOM tells foreign companies not to worry about unreliable entities list as it is not targeted at any specific country or company. China’s State Administration for Market Regulation is preparing to launch an antitrust investigation into Google relating to Google’s alleged abuse of the Android mobile operating system’s dominant position. MOFCOM, China’s National Bureau of Statistics, and the State Administration of Foreign Exchange issue report showing Chinese outward foreign direct investment (FDI) fell 4.3 percent year-over-year in 2019. Chinese outward FDI (OFDI) in the United States (US) plummets to record lows because of Covid-19 and US-China political frictions. Indian Minister says there will be no blanket ban on all Chinese mobile apps, nor will Chinese companies be excluded from 5G contracts for wireless equipment. The tightening of US restrictions on the export of semiconductors will have potent adverse effects on Japanese companies. Frictions relating to the fees Apple takes in conjunction with its App stores have sparked regulatory attention in Japan. Covid-19 and the resignation of former Prime Minister Abe Shinzo are hindering the expansion of Japanese OFDI in Africa. Hitachi may terminate its multi-billion-dollar project in the United Kingdom (UK) to build two nuclear reactors because of a failure to obtain UK government support to cover rising project costs. Korean semiconductor firms will suffer big loss of business due to new US restrictions on the export of semiconductors to Huawei. Korea Fair Trade Commission apparently sends signal to Google that it is being watched for its app store fee collection practices. Korea’s Hyundai Engineering & Construction led consortium wins $573 million railway project in the Philippines.

MNCs in the News-2020 May

China’s recently issued Guideline regarding its economy contains numerous favorable, albeit general, offerings for foreign direct investment (FDI). To retaliate against United States (US) exports controls against Huawei, China readies itself to add US companies to an “unreliable entity list” which may subject them to various sanctions. US Chamber of Commerce decries potentially excessive measures by US government to move supply chains away from China. United Kingdom looks to reduce Huawei involvement in its 5G network with Huawei potentially being removed from all telecommunications infrastructure by 2023. Chinese contractors plan to make substantial progress on Indonesia’s Jakarta-Bandung high-speed rail over the balance of 2020. US pressure influences Israel to reject Hong Kong firm’s bid on strategically located, large-scale desalination plant. Japan categorizes firms into three groups as part of its effort to clarify what review processes apply to FDI pursuant to its Foreign Exchange and Foreign Trade Act. New Japanese law requires technology companies operating e-commerce websites and apps to submit annual reports, notifications of contract changes, and establish complaint processes. In quest for supply chain resiliency, Japan will provide subsides to encourage Japanese firms to return to Japan or move to Southeast Asia. Realized inward FDI into Korea in the first quarter 2020 plunges over similar period last year due to shorter worker hours, higher minimum wages, and other factors. South Korean parliament passes legislation that likely forces content providers to share network costs with local internet service providers. US support for the Economic Prosperity Network raises fears among Korean companies they will be pushed to shift FDI to the US. Korean firm to make huge investment in UAE pipeline as part of its consortium’s winning bid.

MNCs in the News-2020-04-24

According to China’s Ministry of Commerce (MOFCOM), more than 1000 companies including many from the United States (US), Germany, and Japan have registered from the 2020 November China International Import Expo. MOFCOM reports that China’s non-financial outward foreign direct investment (FDI) declined less than 1 percent year-over-year when compared to the 1st quarter of 2019. Many interpreted a recent India notification indicating special government scrutiny of FDI from bordering countries as directed against China as a time when Indian companies might be vulnerable. Canyon Bridge, the Chinese owner of the United Kingdom (UK)’s semiconductor designer Imagination Technologies, says the company’s headquarters will stay in the UK. Japan will add the medical sector to the list of sectors where FDI is subject to review pursuant to the Foreign Exchange and Foreign Trade Control Law. Japan’s NEC wins major deal to supply observation satellite to Vietnam. Korea’s Fair Trade Commission needs more time to review Delivery Hero’s deal to acquire Woowa Brothers due to concerns about the anti-competitive effects of the deal. Korea’s GS Engineering & Construction concludes a roughly $450 million deal with the Singapore’s Land Transport Authority to build an Integrated Train Testing Center.

MNCs in the News-2020-04-17

China’s Ministry of Commerce reported that inward foreign direct investment (FDI) plunged over the first three quarters of 2020 when compared to 2019 largely due to the effects of Covid-19. A Shanghai court ordered Chinese shoe company New Barlun to pay USD $1.41 million in damages and litigation costs for trademark infringement and unfair competition to American shoe company New Balance. Huawei responds to criticism in the United Kingdom (UK) and proposed restrictions on its involvement in the UK 5G network by noting its role in keeping Britain online and the damage done by the criticism. A British parliamentarian calls for the UK government to ensure Imagination Technology’s technology base is not moved to China. Yahoo Japan will cooperate with the Japanese government to provide data from consenting users that could help identify clusters. The Board of Investment of Thailand approves Mitsubishi Motors’ plan to improve manufacturing lines at one existing plant to allow for production of hybrids and electric vehicles. After the failure of arbitration, Netflix opts to take South Korea’s SK Broadband to court over special fees for data-heavy content that the latter wants to improve upon the former. LG Chem obtains special privileges from the Polish government enabling its employees dispatched to its electric vehicle plant there to avoid certain quarantine.

Dr. Jean-Marc F. Blanchard's picture

The Free Trade Zone that Ate Shanghai

The Shanghai Free Trade Zone (SFTZ) came into being in 2013. Since its birth, it has scored accomplishments such as faster customs processing times and easier business establishment.

MNCs in the News-2018-04-27

Foreign car makers hope China will speed up the auto reform parts that they desire. Puma hopping to consider other production venues if United States (US) imposes tariffs on shoes and apparel made in China. India does not offer support for China’s Belt and Road Initiative (BRI) at recent Shanghai Cooperation Organization (SCO) meeting. Toyota to sell Chinese partner’s electric vehicle in China to pave way for introducing own models next year. Itochu pulling out of Turkish nuclear power plant project due to surge in safety-related costs. General Motors reaches last minute deal with labor union and South Korean government to save Korean operations. State-owned Korea National Oil Corporation looking to sell Canadian Harvest oil field to repay debts incurred by its Canadian subsidiary. Opponent of incumbent Malaysian Prime Minister vows to reconsider Chinese contracts if elected. KWAP may consider stake in IAG if Prudential cannot met Malaysian central bank mandate that foreign insurers reduce ownership stakes to 70 percent.

MNCs in the News-2015-09-11

China’s Ministry of Commerce (MOFCOM) reports that inward foreign direct investment (FDI) rose 22 percent in August year-over-year (YOY). Foreign companies express concern about China’s reform direction and stance towards foreign business. US business community hopes Chinese President Xi Jinping’s state visit to the US will push forward a US-China Bilateral Investment Treaty (BIT). Sources report Google will develop China-mainland version of its Google Play online store that meets government requirements. China’s Ministry of Finance charges Apple with underpaying more than $65 million of taxes in 2013, which Apple has since paid. China plans to host major technology meeting in Seattle in late September around the same time as Xi’s state visit to Washington. Taiwan liberalizes rules governing investment by local chip firms on the Chinese mainland. China’s National Development and Reform Commission (NDRC) Guangdong branch fines Dongfeng Nissan and 17 dealers more than $22 million for price fixing. Chinese and Russian firms conclude numerous investment deals on sidelines of China’s 70th anniversary V-Day ceremonies. Pakistan leases 2000 acres of land at Gwadar Port to facilitate China’s construction of the port’s first free economic zone. Indonesia will lengthen from 2 to 10 years the time before a contract expires that mining investors can seek a contract extension. Indonesia opts to retain ban on unprocessed mineral ore exports. Vietnam Decree 60 fails to boost foreign investment.