US-China trade war

MNCs in the News-2019-02-22

Shanghai municipal government investment measures appear to have enabled the city to maintain strong foreign investment growth despite a challenging environment. BIStel says it will expand its investment in China despite the China-United States trade war because China is its biggest target market. Saudi Arabia’s Aramco signs Memorandum of Understanding (MoU) for investment in major refining and petrochemical investments in Liaoning that may substantially boost energy exports to China. According to China’s Ministry of Commerce (MOFCOM), Chinese non-financial outbound FDI in 47 countries participating in the Belt and Road Initiative (BRI) increased 8.1 percent year-over-year. Despite uncertainties over Brexit, Chinese companies remain interested in investing in the United Kingdom. Tokyo considers backing Russia’s Novatek’s Arctic liquefied natural gas project in the hopes of bolstering Japan’s negotiating position in territorial talks with Moscow. An increasing number of Japanese automakers are leaving or reconsidering their position in the UK as Brexit fast approaches. Seoul expects the second US-North Korea summit to facilitate inter-Korean investment projects including a Korea peninsula rail link. India and South Korea agreed to enhance cooperation in diverse economic areas, including many pertaining to investment.

MNCs in the News-2019-02-15

Per China’s Ministry of Commerce (MOFCOM), inward foreign direct investment (FDI) flows in January increased 4.8 percent versus the prior period in 2018. Despite United States (US)-China trade dispute, in January, China’s IFDI from the US increased 126.8 percent compared to the same period in 2018. European Parliament revamps European Union (EU) investment screening mechanism to give European Commission power to review deals, though ultimate decision making remains with EU states. U.S.-China Economic and Security Review Commission highlights personal and national security risks from Chinese investors taking stakes in American biotech companies. Israel will create an interagency body to oversee sensitive commercial deals partly to ensure foreign investments, above all by China, do not damage its ties with the US. Japanese and South Korean businesses fret about the impact of heightened tensions between the two governments relating to history and recent naval encounters. Per reports, following Malaysian Prime Minister Dr. Mahathir Mohamed’s visit to Tokyo last year, major Japanese companies invested hundreds of millions in Malaysia. Russia will take more steps to support Koreans firms doing business in Russia’s Far East. South Korea and Austria move to expand cooperation as Austria seeks Korean help to become a 5G leader in Europe.

Dr. Jean-Marc F. Blanchard's picture

Charged up about the Political Meaning of Tesla in China: Time to Apply the Brakes?

In 2017, it was revealed American electric vehicle (EV) maker Tesla had concluded an agreement with Shanghai to build a manufacturing complex in Shanghai that, per Tesla CEO Elon Musk, will be extremely advanced and produce cars customized for the China market.

MNCs in the News-2019-01-25

Sinochem’s chairman predicts Chinese foreign direct investment (FDI) abroad will decrease due to trade tensions with the United States (US) and China’s domestic economic slowdown. Former China Securities Regulatory Commission (CSRC) chairman says China should make sure that its investment and financing projects meet international standards to quieten overseas criticism of the Belt and Road Initiative (BRI). The chairman of DP World warns other countries to be careful of China because of the latter’s predatory practices. Former People’s Bank of China official opines restrictions imposed by Western governments on Huawei could lead to it significantly reduce investments in Silicon Valley. Japanese firms cautious about boosting investment given China-US trade war and uncertainty about the global economy. Sony to move its European headquarters from the United Kingdom (UK) to the Netherlands to avoid disruptions that might result from “Brexit.” South Korea will offer support for overseas construction and plant orders to offset weakening exports caused by the global trade disputes and China’s economic slowdown. South Korea’s major business associations and the Presidential Committee on New Southern Policy form alliance to help Korean entrepreneurs seek better opportunities in the Association of Southeast Asian (ASEAN) market.

MNCs in the News-2019-01-18

China Ministry of Commerce report shows anemic increase in inward foreign direct investment (FDI) flows in 2018 year-over-year (YOY), though strong growth in manufacturing inward FDI (IFDI) in 2018 YOY. Foreign automaker optimism about the China market increases due to the calming of the United States (US)-China trade war. JPMorgan Chase & Co.’s 2019 global M&A outlook report predicts Chinese companies will continue to look for overseas mergers and acquisitions (M&As), partly because of readily-available capital. Paitron Services and the China Overseas Development Association report Chinese outward FDI (OFDI) now riskier because of growing tensions with the US and threats posed by terrorist groups. During a recent visit to Israel, US Deputy Secretary warned Jerusalem bilateral intelligence sharing could be at risk if the latter did not implement tougher screening of Chinese investments. Hitachi Ltd. board decision to suspend plans to build two nuclear reactors in the United Kingdom (UK) flow from financial issues not the political turmoil flowing from Brexit. South Korea will pursue closer ties with United Arab Emirates in the energy sector. Seoul High Court upholds ruling ordering Japanese machinery maker Nachi-Fujikoshi Corp. to pay compensation to Korean forced laborers.

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-2019-01-04

Foreign companies remain cautious about increasing their foreign direct investment (FDI) in China because of the risk of trade war escalation. Multinational corporations (MNCs) in China worry not only about trade war’s impact on sales, but pressures to relocate their factories. China’s National People’s Congress reviews draft law than seems to more aggressively protect foreign investor interests than a previous version. Survey reveals US businesses finding trade war leading them to face increased Chinese non-tariff barriers. China’s State-owned Assets Supervision and Administration Commission and the Chinese Academy of Social Science have produced a report that central State-owned enterprises (SOEs) are delivering equal employment benefits to Chinese and locals. Attorneys representing former South Korean forced laborers for Nippon Steel & Sumitomo Metal file for the seizure of Nippon Steel assets in Korea. South Korean government will tighten rules on the acquisition of Korean companies by foreign firms to limit technology leaks. Seoul to designate OLED equipment and chemical sector as “national core technologies” to gain influence over their sale and export.

MNCs in the News-2018-10-26

China’s Ministry of Commerce (MOFCOM) says the country will accelerate its efforts to pass a new foreign direct investment (FDI) law that promotes and protects FDI. China’s Supreme People’s Court plans to act to improve the intellectual property rights protection system in China. Following Apple, Amazon and Super Micro call on Bloomberg to retract its story about Super Micro hardware hacked by Chinese intelligence agencies. United States (US) asset sellers and brokers turn away from Chinese buyers because of the delays and uncertainties that arise when Chinese companies are involved in FDI in the US. Multinationals contemplate moving supply chains out of China if the impact of US tariffs on China becomes too severe. Despite his close links with Saudi Arabia, Masayoshi Son cancels his speech at the Future Investment Initiative after Saudi Arabia admits the killing of journalist Jamal Khashoggi. US Committee on Foreign Investment in the United States torpedoes sale of Japanese Italian subsidiary to a Chinese firm on unclear grounds. Fears of the adverse economic impact of the US-China trade war, US rate hikes, and rising oil prices spur Seoul to announce economic package to fuel jobs and investment. Korean builder Dealim Industrial wins major engineering, procurement, and construction ammonia plant deal in Saudi Arabia.

Pages