telecommunications

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-2020-04-17

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.

MNCs in the News-2020-02-28

American Chamber of Commerce in China survey shows foreign businesses want tax breaks, clearer and more consistent policies, and greater transparency to help their recovery from the coronavirus epidemic. Survey of European businesses in China reflects, among other things, dissatisfaction with “unpredictable rules, highly restrictive quarantine demands and extensive pre-conditions to restart operations.” Huawei plans to build its first European Union (EU) manufacturing plant in France to address security and other concerns. United States (US) Transportation Security Agency requests its employees to cease using China’s TikTok app to create public content and promotional materials. Tokyo may revise its Foreign Exchange and Foreign Trade Act to lighten advance notice requirements for certain entities such as university endowments and corporate pension funds. Nissan warns that the failure to strike a free trade agreement with the EU post-Brexit may affect the future of its factory in the United Kingdom. Seoul to modify laws and boost incentives to lure more large South Korean companies to come home.

MNCs in the News-2020-02-07

China’s Ministry of Commerce pushes Chinese Chambers of Commerce to provide force majeure certificates to Chinese firms struggling to meet their contractual obligations due to disruptions caused by the coronavirus crisis. Wuhan Institute of Virology move to apply for a patent to use United States (US) firm Gilead’s remdesivir to treat pneumonia like symptoms raises intellectual property issues. Huawei’s Chief Representative to European Union (EU) institutions says the firm will build 5G manufacturing bases in Europe. US Attorney General Bill Barr advocates US and its allies taking controlling stakes in Nokia, Ericsson, or both to fend off Huawei 5G challenge. Japan’s Ministry of Defense reveals two new Japanese defense-related companies that suffered cyberattacks, without stating if classified information was leaked. Japanese company plans to cope with Brexit subject to change depending upon trade negotiations between the United Kingdom (UK) and the EU. Japan files petition with the World Trade Organization to challenge planned merger between Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering. Panama re-awards Metro Line 3 to Korean consortium, rejecting challenges from Chinese firms and a consortium with a Chinese company.

MNCs in the News-2020-01-17

China’s tax system has been improving and there are hopes this will boost inward foreign direct investment (FDI). Goldman Sachs contemplates major expansion of employees in mainland China if China’s financial sector opening continues and it can take full ownership of its securities joint venture (JV). JPMorgan moves to increase its ownership of its fund management business in China because of China’s financial sector opening and the attractive opportunities present in the sector. United States (US) pressures on the United Kingdom (UK) to shun Huawei’s presence in its 5G telecommunications system lead UK Prime Minister to query what are the alternatives. Lawsuit by various US states threatens to upend merger of Sprint, in which Japan’s Softbank has a huge stake, and T-Mobile. Softbank proposes huge investment in Indonesia’s planned move of its capital from Jakarta. Korea’s Fair Trade Commission action forces Netflix to revise some clauses in its customer agreements. Korea’s Samsung acquires TeleWorld Solutions, a US-based telecom firm, which may open 5G opportunities in the US.

Dr. Jean-Marc F. Blanchard's picture

Europe Facing Disconnection Disaster over Huawei and Curbs on Chinese Companies?

European countries like Germany, the United Kingdom, and Norway have been struggling over the extent to which they should use equipment and services and accept foreign direct investment (FDI) from Chinese telecommunication firms.

Dr. Jean-Marc F. Blanchard's picture

Dialing In or Head in the Clouds? China’s Prospective Opening of its ICT Sector

There are many sectors in China that are closed or highly-restricted as far as foreign direct investment (FDI) is concerned. Drivers of this include political nationalism, a desire to protect domestic firms, and concerns about economic independence.

MNCs in the News-2019-01-11

During a meeting with Tesla CEO Elon Musk, Chinese Premier Li Keqiang stated his country welcomes investments from foreign firms and is open to deepening cooperation with them. An official from the Beijing Central Business District (CBD), which is undertaking steps to attract higher quality firms, touts foreign direct investment (FDI)’s contribution to CBD. Chinese merger & acquisition (M&A) activity in the US in 2018 plummets. Rising Committee on Foreign Investment in the United States (CFIUS) scrutiny of foreign attempts to purchase minority stakes in American companies has fueled a major drop in Chinese venture funding of United States (US) start-ups. Chinese FDI pours into Latin America as US presence wanes and Latin American technology firms thirst for funding. South Korea President Moon Jae-in accuses Tokyo of politicizing recent court decisions over wartime labor. Meeting with his British counterpart, Japanese Prime Minister Abe Shinzo urges the United Kingdom (UK) to avoid a no-deal Brexit. During his New Year Press conference last week, South Korean President Moon reiterated his support for economic cooperation between the two Koreas and called for a lifting of economic sanctions. State-run Korea National Oil Corp. (KNOC) moves to liquidate overseas resources development projects that generated huge losses for the firm in 2017.

MNCs in the News-2018-12-07

China says will lift all barriers to foreign direct investment (FDI) not included on the negative list and launch a special inspection to ensure foreign investors are treated fairly. China is advancing its promise to open its financial sector as evidenced by its approval of Swiss UBS Group’s control of a local joint venture (JV). Tesla has opened the bidding to build its “gigafactory” in Shanghai that will help it avoid Chinese tariffs on imported US-built cars. Sensitive to rising national security concerns, British telecom firm BT Group has blocked Huawei from supplying equipment for its core 5G technology. Diverging from other countries, Portugal allowed its major network provider to sign a contract with Huawei. Japan and Mitsubishi Heavy Industries Ltd. are contemplating abandoning a nuclear project in Turkey due to ballooning costs. Tokyo will issue guidelines for the acquisition of telecommunications equipment by central government ministries and the Self-Defense Forces that implicitly relate to Chinese makers. South Korean and Chinese officials hold investment promotion meeting in Beijing to seek ways to lower trade barriers and boost bilateral investment. Korean delegations makes urgent visit to the United Arab Emirates to dispel worries of Korea’s possible loss of the exclusive right to operate the Barakah nuclear power plant.

Pages