US International Trade Commission

MNCs in the News-2021-April

Tesla’s road in China becomes bumpier. China’s China Securities Regulatory Commission (CSRC) accepts application from France’s BNP Paribas to set up securities firm in China. China’s foreign direct investment (FDI) in and lending to Africa switch from a focus on energy to minerals which also has implications for the countries that it targets. China’s Ministry of Commerce reports that non-financial outward FDI (OFDI) in the first quarter of 2021 grew 4.6 percent over the same period in 2020, with solid growth in OFDI to Belt and Road Initiative (BRI) countries. Japan’s Line works to improve disclosures and employee data handling practices in the wake of revelations employees at an affiliate in China accessed some of its users’ data. Major investment by Tencent subsidiary in Japan’s Rakuten draws regulatory attention due to concerns about the leak of personal information and technology from the latter to the former. Korea Fair Trade Commission (KFTC) imposes fine on Apple Korea due to Apple Korea actions that disrupted a KFTC investigation of Apple Korea’s abuse of its market dominance. Korean actors move to organize lawsuit against Facebook which has been found by Korean regulators to have violated Korean law by sharing user data without consent. Korea’s Samsung and Hyundai Motor reportedly prepare big proposals for FDI in the US prior to upcoming summit between Korean President Moon and US President Biden. SK Innovation pays $1.8 billion to LG Energy Solutions to settle a dispute between the two firms relating to the former’s theft of electric battery trade secrets from the latter.

MNCs in the News-2021 January

China receives the largest amount of inward foreign direct investment (FDI) in 2020. China’s 2020 revised catalog of encouraged FDI takes effect increasing the number of encouraged sectors. China issues rules to counteract foreign extraterritorial sanctions affecting its nationals and companies. Renewable energy investments dominate China’s Belt and Road Initiative (BRI) energy infrastructure investments in 2020, though coal remains prominent. India makes ban on dozens of Chinese mobile phone apps permanent due to national security and data privacy concerns. China asks India to clarify its permanent ban against Chinese mobile apps. Japan creates English-language, one stop shop to help foreign financial firms set up operations in Japan. United States (US) sanctions against Huawei and limits on Huawei’s involvement in foreign telecommunications infrastructure projects led Japan’s Sumitomo to turn elsewhere for business. Brexit deal between United Kingdom (UK) and European Union (EU) will keep Nissan producing electric vehicles in the UK. Japan unconvinced Korean President Moon Jae-In’s labeling of a 2018 Supreme Court decision on corporate assets as “undesirable” will solve anything. The head of GM Korea emphasizes labor issues as one of the factors that reduce South Korea’s appeal as a destination for FDI. SK Innovation to invest $895 million into a battery plant in Georgia, a move some feel is about winning a case before the US International Trade Commission. Daewoo Engineering & Construction wins major port facility contracting deal in Iraq. Korea Hydro & Nuclear Power gets contract for major dams in Pakistan.

MNCs in the News-2019-11-15

According to a German Chamber of Commerce survey, a large percentage of German companies plan on boosting their foreign direct investment (FDI) in China over the next two years. The United States (US)–China trade war and rising costs in China unlikely to led to exodus of FDI outside China because no country possesses the entire package of advantages China does. China MOFCOM reports that China’s non-financial outward FDI (OFDI) grew almost 6 percent over the first 10 months of 2019 year-over-year. US National Defense Authorization Act language may terminate the availability of federal funds to buy electric buses made by BYD at its California factory. South Korean airlines are closing offices in Japan as well as suspending or reducing flights to Japan because of falling tourism resulting from Korea-Japan tensions. Japanese Ambassador to Bangladesh calls on the latter to provide economic incentives and improve policy stability. LG Chem asks the US International Trade Commission to rule quickly on its trade secrets theft case against SK Innovation. Hyundai Heavy Industries submits formal request to European Union (EU) asking for approval of its planned merger Daewoo Shipbuilding & Marine Engineering

MNCs in the News-2019-09-06

On the eve of German Chancellor Angela Merkel’s visit to China, China’s Ministry of Commerce (MOFCOM) reports German foreign direct investment (FDI) in China grew more than 60 percent over the first seven months of 2019 year-over-year. Chinese media delivered some packaged criticisms against FedEx for the latter’s alleged shipments of controlled goods and rerouting of packages destined for Huawei. Relatively small-scale protests took place in three Kazakhstan cities against potentially questionable Chinese factory FDI. The United States (US) concludes declaration with Poland for the rigorous evaluation of foreign suppliers involved in 5G networks which some see as directed at China and Huawei. Nissan considers leaving Korea as Korea-Japan frictions make its challenging situation there even worse. Uniqlo partners with the International Labor Organization (ILO) to support research on labor markets and social security systems in some of its production hubs in South and Southeast Asia. Korean economic difficulties due to frictions with Japan encourages Hyundai union to settle with management without a strike. Korean government official meets with LG Group and SK Group executives to try to get them to resolve trade secrets dispute that LG Chem has brought to the US International Trade Commission.

MNCs in the News-2019-07-19

Reports suggest that following intensifying China-United States (US) trade frictions, a growing number of foreign multinational corporations (MNCs) are considering moving their manufacturing out of China. At a recent China State Council meeting, officials state China aims to provide better intellectual property rights (IPR) protections and that it will treat domestic and foreign firms equally. China courts Japan’s involvement in the Belt and Road Initiative (BRI) purportedly to improve the BRI’s image. Bangladesh works to calm foreign investors in the wake of a violent clash between local and Chinese workers at the Chinese-invested Payra thermal power plant. Japan’s Fair Trade Commission (FTC) moves forward on guidelines to regular IT giants’ use of personal data without consent. Korea preparing plan to “‘to reduce the country’s dependence on Japan’s materials, components and equipment industries.’” Korean firms threatened by possibility that Japan will “remove Korea from its export white list.” Hyundai Motor Co. and Hyundai Motor America have requested the US International Trade Commission to start an investigation against four auto part importers.

MNCs in the News-2017-11-24

Skype loses Apple app store connection in China due to government regulation. Illegal overtime at Apple supplier Foxconn plant in Henan stopped. Chinese official reports Chinese firms employed more than 1.3 million people abroad in 2016. According to Chinese railway authorities, China has 20 overseas railway projects right now with investment around $15 billion. Bad press on Uber’s data theft cover-up may push SoftBank to renegotiate the terms of USD $10 billion investment deal due to impending legal action. Air bag maker Takata finalizes agreement to sell assets to Chinese owned Key Safety Systems to obtain cash needed to cover court imposed penalties. US trade commission’s proposed import tariffs on washing machines may lead Samsung and LG to reassess whether building new US factories would still be beneficial. South Korea’s SK Group sells used car affiliate to Australia’s Carsales Holdings in face of government barriers to further expansion. Indonesian government looking for more than USD $800 million in private foreign investment to develop tourism near Lake Toba. Real Estate Indonesia invites Japanese developers to engage in housing projects after Japan’s Prime Minister reaffirmed his country’s commitment to increasing investment in Indonesia. DHL to invest over USD $350 million to develop its IT services in Malaysia, contributing to Kuala Lumpur’s national digital transformation agenda. Nestlé selects Malaysia for global procurement hub investment as Malaysian Minister announces Kuala Lumpur strives to position the country as a preferred investment destination. Jardine Matheson and Fraser and Neave seek to increase stakes in Vinamilk as Vietnam continues to divest in its state-owned industries, albeit cautiously. Hanoi cooperating with World Bank to create new regulations to increase FDI in Vietnam as country seeks to diversify FDI sources.