Xinjiang

MNCs in the News-2022-January

China’s Ministry of Commerce (MOFCOM) touts that China will act to attract foreign direct investment (FDI) despite a challenging environment. In the wake of a backlash following its removal of Xinjiang products from its shelves, Guangdong Administration for Market Regulation fines Sam’s Club for deceptive consumer practices on its app. Beijing municipal government fines 7-Eleven China for the latter’s website maps that have problematic presentations of Taiwan and other territory. China’s work and the presence of dredgers at Cambodia’s Ream naval base concern the United States and others that China’s seeks to station military assets there. Indian tax authority probe causes it to demand Xiaomi India pay unpaid customs duties. Sri Lanka asks China for debt relief on loans used to pay for Belt and Road Initiative projects. Ruling parties from Japan and Taiwan agree to pursue cooperation on semiconductors to alleviate semiconductor shortages and address the China high-tech challenge. Japanese companies remain committed to Myanmar despite the latter’s serious political, economic, and other problems. The chair of Korea’s Fair Trade Commission (KFTC) promises to continue to improve the KFTC’s regulation while supporting innovation. Apple submits plan to Korea Communications Commission that allows alternative in-app payment systems and reduces payment fees.

MNCs in the News-2021-August

China’s utilized inward foreign direct investment (FDI) showed solid growth over the first seven months of 2021 compared to the prior year period. China’s Ministry of Commerce (MOFCOM) is working to develop an improved negative list for 2021. China’s MOFCOM orchestrates site visits for foreign Chambers of Commerce, industry associations, and businesses in Xinjiang. China’s outward FDI (OFDI) to Belt and Road Initiative (BRI) countries shows solid growth for the first seven months of 2021 year-over-year (YOY), though China’s total nonfinancial OFDI growth rate was negative YOY. India’s massive infrastructure plans attract the cautious interest of Chinese companies and investors. Chinese companies hope regime change in Afghanistan will lead to improved security and stability that facilitates restarting investment and infrastructure projects and initiating new ones. The Japanese government moves to implement a law limiting FDI or activities in sensitive areas such as near military installations or critical infrastructure. Japan’s Kirin Holdings has no intention to exit Myanmar despite the political turmoil that has flowed the military coup there. South Korea moves towards the approval of a law that will limit the ability of firms like Google and Apple for force software developers to use their payment systems on in-app purchases. Korea levies fines and penalty surcharges against Facebook and Netflix for improper data collection, disclosure, and/or cross-border data transfer practices.

MNCs in the News-2021-July

China’s Ministry of Commerce (MOFCOM) reports strong inward foreign direct investment (FDI) growth over the first half of 2021 relative to 2020. China MOFCOM spokesperson assures foreign investors that China’s national security review process for FDI will be done selectively and carefully and that China is still open. Ericsson says declining results in China affected by Swedish government’s decision to ban Huawei and ZTE from its 5G network. Reduced outward FDI (OFDI) activity by Chinese firms for various reasons including Covid is dramatically reducing their foreign currency-denominated borrowings. The United Kingdom is reconsidering the involvement of Chinese state-owned enterprise (SOE) China General Nuclear in two British nuclear power plants. Chinese President Xi Jinping highlights Belt and Road Initiative in conversations with leaders from Ukraine, Turkey, and Barbados. Japanese OFDI deal counts and volumes show notable increase in the 2nd quarter of 2021. Japanese government moves as well as the risk of boycotts and investment divestitures drive Japanese textile industry to work to purge its supply chain from human rights abuses. In the face of a social media backlash and the risk of a boycott, Japan’s Toyota once again ceases PAC donations to members of the United States (US) Congress that denied the legitimacy of the 2020 US Presidential election. Korea’s Minister for Science and ICT supports tax on overseas platform companies while warning of potential overseas taxes on Korean companies. Korea paying increasing attention to country’s OFDI flows, with some worrying it might lead to deindustrialization and unemployment.

MNCs in the News-2021 March

China Ministry of Commerce spokesperson says China’s new foreign investment security review will not impose unnecessary burden on normal foreign businesses. China’s National People’s Congress Standing Committee Chairman says China will press forward on efforts to combat the extraterritorial application of foreign sanctions. China Banking and Insurance Regulatory Commission gives foreign investors the right to acquire a 51+ percent stake in Chinese insurance companies. China’s economic sanctions against members of European Parliament threaten to disrupt the ratification process of the EU-China Comprehensive Agreement on Investment (CAI). Sweden’s H&M faces backlash because of its stance of working with factories in or products from Xinjiang. Chinese executives in state-owned enterprises in Myanmar say turmoil in the country has not affected Belt and Road Initiative projects. Brexit has adversely affected Japanese foreign direct investment (FDI) in the United Kingdom. The head of SBI Holdings says he will move the firm’s brokerage out of Hong Kong due to the evolving political situation. Line takes steps to limit the access of Chinese affiliates and contractors to Japanese data and shift data from Korea to Japan. Japan’s Fast Retailing suffers disruptions due to fires set at two of its Myanmar suppliers in wake of military coup. Korea advances industrial cluster scheme to increase its local production capabilities in the wake of tensions with Japan and Covid-19 related disruptions. In response to complaints, Google Korea will lower in-app purchase commission for smaller app developers. South Korean companies partnering with Chinese internet platform and fintech firms worry that Beijing’s increasing regulation of the latter may adversely affect their joint ventures. The governor of Georgia asks US President Biden to overturn a United States International Trade Commission ruling that threatens a SK Innovation factory in Georgia.

MNCs in the News-2020 June

China Ministry of Commerce data shows respectable year-over-year inward foreign direct investment growth (FDI) in April and May, with some hoping for continued growth in the 2nd half of the year. China’s new development initiatives for its Western regions are not succeeding in attracting inward FDI (IFDI) for both business and political reasons. The China Securities Regulatory Commission will look to allow big Chinese commercial banks into investment banking so they can help China fend off the growing challenge from foreign investment banking firms. The United States (US) Pentagon has submitted a list of 20 Chinese companies with ties to China’s military that operate “‘directly or indirectly’” in the US. The Indian government bans almost 5 dozen mobile apps. India’s state government of Maharashtra freezes investment proposals from three Chinese businesses. Japan adds select medical fields to the list of areas requiring special FDI reviews. Japan moves to allocate funds to domestic firms so they have a greater chance to participate in the 5G wireless technology race. Japan’s Kirin Holding will commission an audit of its Burmese joint venture (JV) partner over allegations its JV channels funds to Myanmar’s military. Japan is contemplating Indonesian proposals that Japan participate in its Jakarta-Bandung high-speed rail which is delayed and overbudget. The Korean Communication Commission announces that Google will revise select YouTube subscription practices following a large fine and negative ruling. South Korea outward FDI, which favors North America, plunged dramatically in March. Potential for Doosan Heavy Industries & Construction to start its Indonesian Jawa Thermal Power Plant Construction Project increases after project based second feasibility study. US Presidential election increases pressure on Korean carmakers and tiremakers to invest more in the US.

MNCs in the News-2019-05-24

China’s Cyberspace Administration releases draft document stating, “operators of the country’s critical information infrastructure…will be required to take into account national security risk when purchasing foreign products and services.” A recent European Union (EU) Chamber of Commerce in China survey suggests the problem of forced technology transfers in China has worsened. The US is considering cutting off the flow of American technology to five other Chinese firms putatively because of these companies’ role in supporting Beijing’s actions in Xinjiang. With the United Arab Emirates (UAE) aiming to become a major China’s Belt and Road Initiative (BRI) partner, China’s East Hope Group conglomerate contemplates $10 billion port investment there. China’s chargé d'affaires in London warns if Huawei banned from Britain’s 5G network there might be “substantial” repercussions for Chinese foreign direct investment (FDI) in the United Kingdom (UK). The Japan unit of US e-commerce giant Amazon has decided to stop direct sales of all Huawei products through its online store. Mizuho Financial Group Inc. said it will tighten standards for lending to coal-fired power plants with high emissions of CO2. Renault Samsung workers in Korea reject draft wage and bargaining agreement which may lead to an “indefinite all-out strike” that drives the joint venture’s upcoming XM3 production to Spain. Iraq’s Ministry of Petroleum awards Korea’s Hyundai Engineering and Construction a $2.45 billion contract to build a seawater supply facility in Iraq.