Xiaomi

Making Signals out of Tesla Turns and its Implications for Foreign Firms

Tesla’s top brass, employees, and shareholders must be charged up about the surfeit of good news in the People’s Republic of China (PRC) over roughly the past three months after the world’s most famous electric vehicle (EV) firm hit a slew of potholes there. In late April, PRC Premier Li Qiang hosted Tesla CEO Elon Musk.

MNCs in the News - 2022-February

Didi Global retreats from its announced decision to cease operations in Russia. Chinese businesses in Ukraine have taken various steps to protect their workers and projects following Russia’s invasion of Ukraine. Indian tax officials launch tax probe of Huawei’s offices in India, raising further concerns about India’s stance towards Chinese tech companies. China Unicom Global criticizes the United States (US) Federal Communication Commission’s decision to terminate the operating license of its US subsidiary. As part of its contribution to Western sanctions against Russia, Japan institutes various economic sanctions against Russian businesses in Japan and implements a number of export restrictions, too. Extant Japanese economic sanctions against Russia and the possibility of more increase Japanese corporate concerns about the adverse ramifications for payments, operations in Russia, and lost export sales. The Korea Communications Commission tells both Apple and Google that they need to redo their plans for complying with Korea’s Telecommunication Business Act which has ramifications for in-app payment systems. Korean construction firms encounter multiple challenges as a result of Russia’s invasion of Ukraine and the subsequent imposition of economic sanctions on Russia.

MNCs in the News-2020 July

Chinese President Xi Jining courts foreign direct investment (FDI) in encouraging letter to the Global CEO Council. China plans to impose sanctions on United States (US) company Lockheed Martin because of the latter’s weapons sales to Taiwan. China’s new, strict cybersecurity laws and regulations have driven Morgan Stanley, a US investment banking firm, to block its interns in China from remotely accessing its virtual network. The recent border clash with China has increased the pressure on New Delhi to reduce the country’s dependence on Chinese solar goods. Various special interest groups have called for the US to sanction China’s CRRC after the US Pentagon labeled it as backed by the Chinese military, saying it represents a security threat. Despite calls for a boycott in the wake of India’s border clash with China, many are skeptical Chinese smartphones can be displaced from the India market. Japanese and British trade negotiators agree they will not require encryption keys or the localization of data. Japan’s Mizuho Financial Group faces growing shareholder pressure to stop financing coal projects. Japan helps Japanese companies move to Vietnam and also helps them shift production lines to Japan as well as various Southeast Asian countries. Myanmar gives three Japanese firms permission to build a mega-liquified natural gas power plant. Korea to spend billions to promote an innovation-based economy. European Union to restart review of the merger of Daewoo Shipbuilding & Marine Engineering and Hyundai Heavy Industries Holdings. Incheon Port Authority joins the United Nations Global Compact. The backlash against Huawei creates some openings for Samsung, though it is unclear if the Korean firm can exploit them.

MNCs in the News-2016-06-10

Chinese Premier Li Keqiang stressed to global CEO’s that his government would be acting to create a better environment for foreign investors. Xiaomi strikes a deal to buy roughly 1500 patents from Microsoft. Political uncertainties surrounding the US presidential election expected to lead Chinese firms to become more cautious about investing in the US. United States (US) Commerce Department gives a subpoena to Huawei Technologies as part of a probe in the latter’s exports or re-exports of US technology. Alibaba says it is cooperating with a US Securities and Exchange Commission probe into its accounting practices. Newly elected Philippines’’ President Rodrigo Duterte states that he would welcome Chinese bids on two major railway projects despite bilateral tensions. Japan’s Transport Ministry raids the headquarters of Suzuki Motor Corp. as part of an investigation into the validity of the company’s fuel economy tests. Mitsubishi Materials settles case of World War II slave laborers. Mitsui is cooperating with the Malaysian government on the massive Iskandar Malaysia project. A Japanese-Indonesian consortium Bhimsena Power Indonesia will move forward on a long-delayed coal-fired power plant in Indonesia. Nissan corporate headquarters will file an administrative litigation against the South Korean government for actions taken by the Korean Ministry of the Environment against it. Korea’s Doosan Heavy Industries & Construction wins a 460 billion won deal from Kuwait’s Ministry of Electricity & Water to build a desalination plant. Experts criticize the implementation of Indonesia’s 12 reform packages. Indonesia’s Investment Coordinating Board (BKPM) touts the positive effects of its new investment licensing service, but challenges remain. BKPM pleased by Japanese interest in multi-billion dollar projects. Uber seeks Thai Transport ministry approval for its drivers. Experts call upon the Vietnamese government to tighten environmental regulations for FDI projects.

Dr. Amitendu Palit's picture

India as the New Destination for East Asian Assembling and Its Implications

Chinese smartphone producer Xiaomi has tied up with Taiwanese electronics contract manufacturer Foxconn to manufacture mobile phones in India. The first batch of Xiaomi phones (Redmi 2 Prime) assembled by Foxconn in India’s southern state of Andhra Pradesh was launched recently. Greater low-cost phone production by Xiaomi in collaboration with Foxconn will be enthusiastically welcomed by Indian consumers given their voracious appetite for mobile phones:

MNCs in the News-2015-06-26

China and US will exchange revised Negative Lists pursuant to their Bilateral Investment Treaty (BIT) negotiations. China undertakes various initiatives to bolster the e-commerce sector in China including opening the sector to foreign investors. Chinese steel companies contemplate investment in Southeast Asia, pushed by government and pulled by host country attractions. Taiwan’s Hon Hai will build vertically integrated supply chain in India to tap into Indian Prime Minister Narendra Modi’s “Make in India” scheme. Japanese development agency, Japanese companies, and Myanmar work together on training initiative to lay a foundation for future railway investment opportunities. Indonesia works to court Chinese and Japanese investors in labor-intensive and export-oriented areas. Outward investment from Singapore plummets 78.1 percent year-over-year in first half of 2015

MNCs in the News-2015-05-29

Hewlett-Packard (HP) sells majority stake in Chinese networking division to Tsinghua University. Beijing will open its service sector to spur greater foreign investment. Blocked Twitter actively courts Chinese companies at Shanghai event. China’s Ministry of Industry and Information Technology contemplates new software security guidelines. Chinese gold miners in Sudan face unexpected loss of business opportunities due to sudden government termination order. Japanese Prime Minister Abe proposed huge increase in infrastructure financing to aid Japanese businesses and counter China. Indonesia’s Investment Coordinating Board and Indonesian Consulate General in Osaka sign agreement to cooperate on attracting Japanese investment into Indonesia’s maritime sector. Indonesia reaffirms it will takeover Total’s Mahakam gas block and a PT Freeport Indonesia controlled gold site. Vietnam expects law changes to spur new foreign direct investment (FDI) flows into its construction sector. Russia and Vietnam probe expanded investment cooperation.

MNCs in the News-2015-05-01

China slaps Beijing Simplot Food Processing Co. Ltd. with record fine for water pollution. Qualcomm finds new ways to bolster its position in China. Chinese companies expand the range of investment projects they consider in Brazil despite the latter’s political and economic challenges. Chinese energy companies face multiple political complexities when they invest in Canadian oil sands assets. Chinese companies engage in capacity building due to local supplier problems and negative impact on government relations. Tokyo Electron-Applied Materials Merger fails. Korean firms face troubles relating to China’s new stance towards Variable Interest Entities. Korea’s Foodpolis draws Chinese food firm investments for political and economic reasons. Indonesian moves to leverage its market raise foreign government concerns in regards to Indonesia’s World Trade Organization compliance. Indonesia’s investment board pursues diverse measures to attract “green investment.” Realized foreign direct investment in Vietnam continues to grow.

MNCs in the News-2015-04-17

China will delay rules on banking IT to solicit feedback. China grapples with rising foreign business concern about data storage and access regulations. Foreign investment in China continues to show despite evidence of a slowdown in other areas. China’s National Development and Reform Commission stresses that China will be moving to a “Negative List” management system for inward foreign direct investment (FDI). Shanghai vows to protect Disney Resort’s intellectual property (IP). Qualcomm moves to reconnect with China after its $1 billion antitrust fine. China Metallurgical Group (MCC) struggles to mine the riches of its Afghanistan copper mine. Indonesian government “Made in Indonesia” plan drives Xiaomi to explore component assembly in Indonesia. Korea seeks to fatten up foreign investment its food hub, Foodpolis, with various incentives and high-quality assets.

MNCs in the News-2015-03-13

Shanghai Administration for Industry & Commerce (SAIC) takes a bite out of Crest. Workers strike at Stella International Holdings, a major shoe supplier to global brands. China will eliminate restrictions on foreign investment in the steel sector as part of effort to ease foreign investment in the country. Xiaomi looks to expand its footprint in India. Japan firms and the Japanese government on track in competition with others railway powers. Korea will enhance Incheon Free Economic Zone to attract foreign investment and spur growth. Policy and business representatives from Korea and Qatar probe investment, knowledge transfer, and other forms of cooperation.

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