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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-2019-01-18

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-2018-09-14

Reacting to Apple’s statement that new tariffs on Chinese goods would affect many of its products, United States (US) President called on it to manufacture more goods in the US. 16 members of US House of Representatives send letter to Google to inquire about its plans to comply with China’s search and surveillance policies. To improve its market prospects, Japan’s Toyota will share and license hybrid technology with China’s Geely. Japan’s Mitsubishi and a subsidiary of Singapore’s state-backed investment company Temasek have formed a joint venture for massive urban development projects. In Seoul, Indonesian President Joko Widodo calls for Korean companies to partner with Indonesia in the area of advanced technology. Korea’s state-owned Korea. Korea’s state-run company Korea Gas Corp. transforms into global player in energy exploration, development, and infrastructure.

MNCs in the News-2018-04-27

Foreign car makers hope China will speed up the auto reform parts that they desire. Puma hopping to consider other production venues if United States (US) imposes tariffs on shoes and apparel made in China. India does not offer support for China’s Belt and Road Initiative (BRI) at recent Shanghai Cooperation Organization (SCO) meeting. Toyota to sell Chinese partner’s electric vehicle in China to pave way for introducing own models next year. Itochu pulling out of Turkish nuclear power plant project due to surge in safety-related costs. General Motors reaches last minute deal with labor union and South Korean government to save Korean operations. State-owned Korea National Oil Corporation looking to sell Canadian Harvest oil field to repay debts incurred by its Canadian subsidiary. Opponent of incumbent Malaysian Prime Minister vows to reconsider Chinese contracts if elected. KWAP may consider stake in IAG if Prudential cannot met Malaysian central bank mandate that foreign insurers reduce ownership stakes to 70 percent.

MNCs in the News-2017-09-15

China’s potentially massive electric car market and regulatory pressure charge up foreign auto firms’ willingness to share technology and invest in the sector. China plans to blacklist and potentially punish blacklisted Chinese outward investors that become “discreditable.” National security concerns lead American President Donald Trump to crunch Lattice chip’s sale to Chinese buyer. The European Commission has come up with a pan-European measure to vet Chinese investments in the European Union (EU). Thailand’s military junta assures Japanese investors proposed plan for USD $45 billion injection into Thailand’s Eastern Economic Corridor will go ahead regardless of the results of the next election. Suzuki Motor partnering with Toshiba and Denso to invest in electric vehicle facilities in India in line with the latter’s “Make in India” initiative and increasing demand for green mobility. Hyundai releases plans for electric vehicle manufacturing plant in India after Indian government pledges to ban sales of non-EV cars by 2030. South Korean retail giant Lotte Group has begun making plans to sell its China shops due to politically-related pressures in China. Asian Development Bank to support Indonesia’s energy sector. China’s expanded investment in Thailand raises local anxieties. The divestment of numerous Vietnamese SOEs has problematic features that discourage foreign investment. Southern Vietnamese province promoting investment in several industrial sectors through policy reforms and other initiatives.

MNCs in the News-2016-08-05

Analysts speculate on the economic and political factors that drove the new British government to delay a decision on the Hinkley Point C project. Some conjecture British Prime Minister Theresa May has delayed the project due to national security considerations. Chinese government urges British government to move forward with Hinkley Point decision and hints at possible adverse consequences for relationship. France awards CGN one of its first industrial-scale offshore floating wind power projects. South Korea’s environmental ministry bans the sales and cancels certifications of 80 Volkswagen models over VWs fraudulent emissions and noise tests. South Korea’s National Tax Service Seoul Regional Office launches a tax probe into the Korean affiliate of Huawei Technologies Co. for possible tax evasion. Indonesia’s Investment Coordinating Board (BKPM) is confident of reaching its realized inward FDI (FDI) investment goals for 2016 because of its fast-track permitting process. BKPM chief downplays possibility that the South China Sea dispute will affect FDI flows, including from China, into Indonesia. Indonesian Energy and Mineral Resources Minister emphasizes the country plans to ensure all investors in the energy sector obey the country’s laws and rules. Thai oil and gas conglomerate PTT PLC says it is still in the process of developing a massive refinery and petrochemical plant in Vietnam. Registered inward FDI (IFDI) into Vietnam over the first seven months of 2016 soars over the same period year-over-year (YOY).

MNCs in the News-2016-07-15

China’s State Administration of Taxation has issued new guidelines for evaluating domestic and foreign companies’ tax performance. Under pressure, IKEA agrees to massive recall of Malm products in China. Anhui Jianghuai Automobile Co. stops producing the iEV6s sport utility vehicle featuring Samsung SDI’s batteries because the Chinese government did not approve the Samsung SDI battery possibly to retaliate against South Korea’s decision to accept the THAAD system. American Enterprise Institute analysis finds large percentages of Chinese outward foreign direct investment (FDI) in 2016 are for mergers & acquisitions, by private firms, and going to the US. China to make good on its promise to invest $2.21 billion in European Fund for Strategic Investments. For some, Chinese investments in film sector raise questions about China’s impact on film distribution and content. After Brexit, Japanese car makers forced to revisit the logic of their investments in the United Kingdom. Korea’s Ministry of Environment will impose a series of harsh penalties against Volkswagen for the latter’s fraud regarding noise and gas emission data. Korea’s Fair Trade Commission is likely to impose a nearly $900 million fine on Qualcomm for the latter’s abusive technology licensing practices. Indonesian government seeks billions of dollars in investment to help develop tourist zones. Vietnamese government targets greater tourism sector investment. Vietnam seeks foreign investment to plug it highway system funding gap.

MNCs in the News-2016-04-22

China’s Ministry of Commerce underscores reasons to be optimistic about inward foreign direct investment flows into China. China experiences a massive creation of foreign-funded enterprises between 2011 and 2015. China’s National Development and Reform Commission will test a “negative list” approach in Fujian, Guangdong, Shanghai, and Tianjin. The American Chamber of Commerce in China expresses concern about China’s policies and what it sees as a lack of serious commitment to reform. In testimony before Congress, Apple denies that it had provided iPhone source code to China. Chinese anti-trust investigators now seem to be turning their attention to Korean firms after targeting German and Japanese firms. China’s Chinese outward foreign direct investment (COFDI) and M&A deals show significant growth in the first quarter of 2016. EY forecasts strong Chinese outward FDI growth averaging 10 percent partly because of the One Belt, One Road program. South Korea’s Fair Trade Commission reports it succeeded in getting Apple to revise the problematic Authorized Service Agreement it had concluded with six Korean repair service providers. Government data indicates the Korea-China Free Trade Agreement is stimulating COFDI into Korea. Indonesia’s President Joko "Jokowi" Widodo will visit four European countries to promote European investment in Indonesia. Denmark concludes Memorandum of Understanding with Indonesia involving capital and technology in exchange for land. Experts call for Vietnam to be more selective in granting tax incentives to foreign investors and encourage it to strengthen its FDI management capabilities. Myanmar grants a license to Vietnam’s military-run Telecommunications Group (Viettel) to build a multi-billion dollar telecommunications network.

MNCs in the News-2016-02-05

Shanghai’s Jiading People’s Court imposed fines and jail terms on OSI China for 2014 safety scandal. China’s General Administration of Quality Supervision, Inspection, and Quarantine orders Volkswagen to recall defective cars. Chinese outward foreign direct investment (FDI) shows no meaningful adverse impact from Chinese efforts to control capital outflows. China rejects media reports that the China-Indonesia high-speed railway project connecting Jakarta with Bandung has been suspended. COSCO looks to win bids for port contracts in Cyprus. Yahoo Japan besieged by criticism about its efforts to deal with the sale of illegal ivory on its website. Japan and Iran conclude investment pact. Korea’s Fair Trade Commission (FTC) fines Lotte founder and Lotte subsidiaries for false and incomplete reporting of ownership stakes and structures. Korea Water Resources Corporation to partner with Asian Development Bank to limit water waste and improve resource management. Indonesia’s Telekomunikasi blocks Netflix. Indonesia moves to remove barriers hindering infrastructure projects. Indonesia religious group calls for additional study of Jakarta-Bandung high speed rail. Japanese investors encourage Thailand to join the TPP, saying it will have positive investment effects. Vietnam’s Foreign Investment Agency reports positive figures in January for investment growth and disbursements.

MNCs in the News-2016-01-22

China’s inward foreign direct investment (IFDI) falls in December 2015, though its FDI totals for 2015 show growth. The American Chamber of Commerce in China Business Climate Survey shows significant numbers of companies still favor China despite having many concerns and notable profit pressures. Guizhou concludes USD $280 million semiconductor joint venture with Qualcomm. Saudi Aramco looks to increase its investment footprint in China especially in the refinery sector. Iran and Egypt court greater Chinese investment, economic cooperation, and tourism during Xi Jinping’s Middle East tour. Egypt TEDA Special Economic Zone (SEZ) Development Company will soon begin work to expand the China-Egypt Suez Economic and Trade Cooperation Zone. Wanda Group to invest in USD $10 billion industrial park in northern India. US National Highway Traffic Safety Administration (NHTSA) orders new recall of Takata air bags. South Korean environmental ministry will bring criminal case against Audi Volkswagen Korea managing director. Foreign governments challenge South Korea over the terms of legislation governing the operations of foreign law firms in Korea. Amnesty charges firms like Samsung and Sony do not do enough to ensure the minerals they use are not produced with child labor. Thailand secures pledge of reduced interest rate from China for joint Thai-Chinese medium-speed rail project. Deloitte pushes Singapore to improve its tax regime for treasury centers and headquarters to fend off competition from neighboring countries.

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