state-owned enterprise

China’s Ministry of Commerce (MOFCOM) reports strong inward foreign direct investment (FDI) growth over the first half of 2021 relative to 2020. China MOFCOM spokesperson assures foreign investors that China’s national security review process for FDI will be done selectively and carefully and that China is still open. Ericsson says declining results in China affected by Swedish government’s decision to ban Huawei and ZTE from its 5G network. Reduced outward FDI (OFDI) activity by Chinese firms for various reasons including Covid is dramatically reducing their foreign currency-denominated borrowings. The United Kingdom is reconsidering the involvement of Chinese state-owned enterprise (SOE) China General Nuclear in two British nuclear power plants. Chinese President Xi Jinping highlights Belt and Road Initiative in conversations with leaders from Ukraine, Turkey, and Barbados. Japanese OFDI deal counts and volumes show notable increase in the 2nd quarter of 2021. Japanese government moves as well as the risk of boycotts and investment divestitures drive Japanese textile industry to work to purge its supply chain from human rights abuses. In the face of a social media backlash and the risk of a boycott, Japan’s Toyota once again ceases PAC donations to members of the United States (US) Congress that denied the legitimacy of the 2020 US Presidential election. Korea’s Minister for Science and ICT supports tax on overseas platform companies while warning of potential overseas taxes on Korean companies. Korea paying increasing attention to country’s OFDI flows, with some worrying it might lead to deindustrialization and unemployment.

China’s National Development and Reform Commission (NDRC) notes China will strive to help foreign businesses resume normal operations, will shorten the negative list for foreign direct investment (FDI), and will advance major foreign-invested projects. Shanghai city government highlights that major foreign financial firms continue to inject FDI into the brokerage, asset management, and securities sectors, among others, despite the Covid-19 epidemic. China State Construction Engineering Corporation places first tower cap in mega skyscraper project for Egypt’s new administrative capital, part of the Belt and Road Initiative. Japan’s Ministry of Finance starts to solicit public comment on future revisions to the Foreign Exchange and Foreign Trade Act. List of Japanese companies suspending operations at factories in the United States (US) due to coronavirus grows. Korea Rail Network Authority (KRNA) wins a bid from Thailand to manage a high-speed railway linking three airports. Hyundai Rotem, a subsidiary of Korea’s Hyundai Motor Group, ordered by Brazil’s Ministry of Labor to pay large fine plus moneys due workers for failing to pay workers overtime pay.

China’s Ministry of Commerce (MOFCOM) reported that inward foreign direct investment (FDI) over the first seven months of 2018 grew 5.5 percent year-over-year (YOY) with strong growth in inward FDI (IFDI) in high-tech industries. MOFCOM noted that there was major growth in IFDI from countries such as the United Kingdom (UK), South Korea, and Japan over the first seven months of 2018 YOY. Hundreds of Google employees raise concerns internally about the firm’s plans to produce a censored search engine for China. China National Petroleum Corporation (CNPC) takes over Total’s stake in Iran’s South Pars Phase II project as Total must abandon it due to re-imposition of United States (US) sanctions. Japanese regulators investigating Apple over allegations that it unfairly pressured Yahoo Japan to slow the expansion of online games platform. Japan makes economic cooperation with the Indo-Pacific region a diplomatic priority in attempt to counter China’s Belt and Road Initiative. South Korea places ban on over 20,000 BMWs after more than 30 engines caught fire this year due to faulty hardware. South Korean Prime Minister calls for increased cooperation with Qatar especially in infrastructure projects.

American businesses not uniformly in favor of Washington moving aggressively against China about the latter’s intellectual property right (IPR) violations. China’s Ministry of Commerce (MOFCOM) approves HP-Samsung printer deal subject to conditions. China’s high-speed rail project in Thailand off track due to environmental approval issues. Sinopec to sell Argentine oil assets and incur major losses in the process. Denso Corp. announces plans for USD $1 billion EV plant in Tennessee, designed to meet changing government automobile and environmental demands. Toyota reaffirms intent to build new Auris in UK, provided the British government avoids hard Brexit deal. Chinese investment in South Korea drops due Chinese government restrictions, hitting the South Korean economy. Korean retailers to shift from China to Southeast Asia as business and political tensions between Korea and China show no signs of improvement. Indonesia needs foreign investment to develop 30 ports and airports and Jakarta is supporting great foreign investment through deregulation and other measures. Indonesian and Belgian firms sign three infrastructure development memoranda of understanding to profit from Indonesia’s attractiveness. Sumitomo forms Thai real estate market joint venture (JV) to profit from the Thai government development of the country’s infrastructure. Thailand’s National Legislative Assembly approves new Eastern Economic Corridor stimulus bill in a move to attract foreign investment. Malaysian government attracts Chinese firm to build USD $3 billion steel production plant in the Malaysian state of Sarawak. Vietnam attracted over USD $25 billion in foreign direct investment in the first three quarters of this year owing to its political stability. Asian investors turning to Vietnam for expansion opportunities as domestic markets shrink and Hanoi opens key industries to investors.

The Information Technology & Innovation Foundation (United States) has called for global action in the face of China’s Made in China 2025 plan. Chinese Ministry of Industry and Information Technology (MIIT) official defends his country’s “Made in China 2025” plan. China’s Food and Drug Administration issues draft policy that would allow foreign drugs to be tested and approved much more quickly in China. During a visit to China, Apple CEO Tim Cook announces Apple will open new R&D centers in Shanghai and Suzhou. Microsoft touts the development of a China-specific Windows 10 operating system that is “secure and controllable.” Chinese government agencies are working on a policy that would specify those sectors where outward foreign direct investment (FDI) was encouraged and those where it was restricted. Tokyo says it does not plan to support troubled Toshiba and that it will share information with Washington about Toshiba and its bankrupt US nuclear division. Japanese and Russian officials meet to discuss ways to jointly develop the islands off Hokkaido they both claim. South Korea asks the World Trade Organization to review Chinese sanctions against Korean companies relating to its deployment of THAAD. South Korea’s SK Engineering & Constructions partners with Turkey’s UNIT International to win multi-billion dollar power plant construction project in Iran. Energy firms urge Indonesian government to enhance its policies in the upstream and downstream oil and gas sectors.