South Korea

Chinese outward foreign direct investment (FDI) exceeds inward FDI (IFDI) by an increasing amount in September and for the first nine months of 2016. Chinese companies embrace diverse strategies to ensure host country stakeholders embrace their investments. ChemChina’s interactions with the European Union (EU) over its Syngenta acquisition raise new uncertainties about the deal. Chinese FDI flows into Germany now are almost double what they were for the prior ten years! Businesses from the Philippines glom in large numbers onto President Roberto Duterte mid-October trip to China. China Everbright Ltd. CEO criticizes the motives behind some COFDI. Toyota is waiting for news from the United Kingdom (UK) about the post-Brexit tariff situation before making any decisions about future investments in the UK. Despite Brexit, Nissan opts to built its new Qashqai model in the United Kingdom (UK). Japanese firm wins new contract work for Delhi-Mumbai freight railway. Marubeni and Sojitz win multi-billion dollar gas-fired power plant station contract in Indonesia. Korea Electric Power Corporation signs mega-contract to operate four UAE nuclear power plants that it also will build. FDI flows into Indonesia increased 7.8 in the third quarter year over year (YOY). Japanese firms show increasing confidence in increasing their investments in Indonesia. FDI flows into Thailand increase minimally, reflecting limited confidence in the country’s growth prospects. Foreign technology firms push Thailand to undertake various measures to maintain and advanced its status as a “digital nation.” Malaysian Prime Minister Najib Razak will focus on getting more Chinese investment during his trip to China. PowerChina International, Shenzhen Yantian Port Group, and Rizhao Port Group will work with Malaysia on a deep sea port in the Strait of Malacca.

China’s Foreign Ministry downplays worries about its cybersecurity law. Apple launches numerous initiatives to enhancing its operating environment in China. China’s Ministry of Commerce (MOFCOM) asserts its rights to review Didi Chuxing-Uber Technologies China merger for potential antitrust issues. Second Australian rejection of a major Chinese investment this year spurs MOFCOM to warn Australia of consequences and to call upon the latter to create a better investment environment. Iran courts increased Chinese investment and prods China for greater involvement in the latter’s One Belt, One Road (OBOR) scheme. Korea’s Ministry of Environment will conduct a major investigation to find out if other foreign carmakers falsified emissions and noise level test data. Seoul’s Central District Prosecutors’ Office grills second Volkswagen Korea executive over allegations the company illegal changed car parts to pass emission tests. Korea’s Fair Trade Commission concludes that Google Korea’s preloaded apps and subsidies for search ads did not restrict market competition. Korea is moving to deal with map data requests from global companies. The Malaysian government continues to support the Iskandar Malaysia economic corridor, with foreign investment representing 40 percent of the money committed to the project. Vietnam’s realized inward foreign direct investment (IFDI) flows fall far below committed IFDI.

Inward FDI into China grew slowly over the first six months of 2016 year-over-year. The Permanent Court of Arbitration’s unfavorable ruling against China’s South China Sea claims sparks protests and boycott calls against American “icons” in China to the chagrin of the Chinese government. A Chinese consortium’s effort to buy the entire Opera Software company falls apart reportedly due to a failure to get sufficient Chinese government approvals. Japanese official travels to Singapore to tout the advantages of Japan high speed rail system for the Malaysia-Singapore high-speed rail project. South Korea’s Fair Trust Commission watchdog relaunches investigation into Google Inc.’s requirement that smartphone makers using its Android operating system preload its search engine. Indonesia’s Investment Coordinating Board (BKPM) is conducting a roadshow in Guangzhou to tout the country’s improving investment environment. Indonesia is working to help investors surmount problems that hinder them from realizing their investments and has developed special initiatives. The Malaysia Investment Development Authority (MIDA) is working on getting more companies to participate in its principle hub scheme. Vietnamese Deputy Prime Minister calls on his country to be more selective in its FDI attraction efforts and to work on getting better FDI.

Apple struggles to ensure China does not turn into a lemon. Walmart workers in China take widespread action against the company’s new working hours system. British Trade Ministry touts that losing pounds is good for Chinese investors. China Road and Bridge Co. wins first state project awarded to a Chinese company since new government came to power in Myanmar. Chinese banks work to bolster risk management and compliance abilities as they expand overseas. Japanese financial firms licensed in London forced to consider whether they should relocate elsewhere in the European Union (EU). After massacre in Dhaka, Japan’s Fast Retailing Co. suspends all but critical travel to Bangladesh. South Korea begins investigation of Ford Motor’s Explorer for possible leakage of exhaust fumes inside the vehicle. GM Korea is under the microscope in Korea because of repeated bribery/corruption scandals and selling inferior quality cars. The Indonesian Chamber of Commerce and Industry urges the government to take action to allow for full implementation of its policy packages. Contemporary Korean investment in Vietnam represents a third wave of Korean investment in the country.

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.