Reform will improve foreign firms’ treatment in China

2020 ◽  
Keyword(s):  
Foreign Investment ◽  
Structural Changes ◽  
The United States ◽  
Foreign Firms ◽  
Foreign Investors ◽  
Content Type ◽  
Playing Field ◽  
Investment Law ◽  
The Law ◽  
Over Time

Subject Reform of China's foreign investment law. Significance The new Foreign Investment Law that took effect on January 1 is a response to a slowing economy and pressure from other governments, particularly the United States, to ‘level the playing field’ for foreign investors. Impacts There will not be a flood of new investment as a result of the law, but it will make a difference over time. Companies will have five years to prepare for structural changes as rules specific to foreign-invested companies disappear. The regulations contain few specifics on enforcement, indicating that Beijing is not yet ready to give teeth to the law.

scholarly journals China’s New Foreign Investment Law

Amicus Curiae ◽  
2020 ◽  
Vol 2 (1) ◽  
pp. 79-94
Author(s):  
Zhang Xiaoyang
Keyword(s):  
Foreign Investment ◽  
Legal Framework ◽  
Foreseeable Future ◽  
Foreign Investors ◽  
Domestic Firms ◽  
Playing Field ◽  
Market Opening ◽  
Investment Law ◽  
Opening Up

China’s legal framework for governing foreign investment has recently been considerably streamlined in comparison to its former self. The newly promulgated Foreign Investment Law of the People’s Republic tends to level the investment playing field in the country so that foreign investors can no longer enjoy significant privileges that have been unavailable to domestic firms and entrepreneurs. Operating a relatively nondiscriminatory mechanism, such as has been introduced, will in practice mean reliance on a negative list approach to confine inflows of overseas capital to specifically identify sensitive sectors. As China has committed its market to opening up on a much grander scale in the foreseeable future, the new foreign investment regime and accompanying ideology may not necessarily deter foreign investors from looking for opportunities in the foreseeable future. Keywords: China; foreign investment; negative list; market opening-up

China's FDI reform will increase capital inflows

2019 ◽  
Keyword(s):  
Foreign Investment ◽  
Market Access ◽  
The United States ◽  
Capital Inflows ◽  
Foreign Firms ◽  
Trade Surplus ◽  
Content Type ◽  
China Trade ◽  
Long Run ◽  
The Right

Subject Reform of foreign investment laws in China. Significance US-China trade talks resume in Washington this week, though little detail has emerged to support reports that the two sides are making progress on core issues such as 'forced technology transfer' -- the requirement for a foreign investor to yield intellectual property in return for market access. A new law on foreign investment was passed at the National People’s Congress on March 15 and takes effect in January next year. The law establishes “national treatment” for foreign enterprises, to improve market access and treatment. Foreign firms and officials have generally described the new law as a step in the right direction, but not far enough. Impacts The new law should help ease tensions with Washington by giving US firms the greater market access they demand. Further ahead, increased inflow of capital might reduce China’s trade surplus with the United States. Greater capital inflows will not necessarily boost overall GDP growth in the long run.

Qatar and Prospects of Foreign Investment from a Developing Legal Perspective

2020 ◽  
pp. 1-13
Author(s):  
Faten Hawa
Keyword(s):  
Foreign Investment ◽  
The State ◽  
Foreign Investor ◽  
Foreign Investors ◽  
Legal Perspective ◽  
Investment Law ◽  
The Law

Abstract The current research focuses on the most important features of the Foreign Investment Law of 2019 in the State of Qatar, including guarantees and incentives for foreign investors. These include customs, tax, financial and investment advantages and exemptions, in addition to protection for the foreign investor from non-commercial risks that may be caused by his investment in the country. This research reached a number of conclusions and made recommendations that focus on strengthening as well as enforcing incentives and guarantees based on the Executive Regulation of the Law. These guarantees, along with some proposed recommendations, will be issued shortly, making the enforcement law a real and attractive element for foreign investment.

Proposed Mexico energy reforms would be radical

2021 ◽  
Keyword(s):  
Foreign Investment ◽  
The United States ◽  
Foreign Firms ◽  
Gdp Growth ◽  
Negative Consequences ◽  
Manufacturing Costs ◽  
Content Type ◽  
Market Dominance ◽  
Energy Reforms ◽  
The Eu

Significance The aim is to restore the market dominance of the state-owned Federal Electricity Commission (CFE). The move would sideline private players and potentially force the closure of some private generation plants. It would also have serious ramifications for hydrocarbons and mining. Impacts Approval could lead to insufficient electricity supplies, increased manufacturing costs, reduced foreign investment and lower GDP growth. The proposed changes could affect foreign investment in areas beyond the energy sector. Negative consequences for foreign firms in Mexico and for the environment could increase tensions with the United States and the EU.

US government’s investment intervention will grow

2018 ◽  
Keyword(s):  
United States ◽  
Intellectual Property ◽  
Foreign Investment ◽  
The United States ◽  
Foreign Firms ◽  
Donald Trump ◽  
Foreign Investments ◽  
Content Type ◽  
The Us ◽  
Trump Administration

Subject Government intervention in foreign inward and outward investments and mergers. Significance The Trump administration is increasingly moving to control undesired foreign investments, as the March 12 presidential order blocking overseas-based Broadcom from merging with US-based Qualcomm showed. President Donald Trump was working on advice from the Committee on Foreign Investment in the United States (CFIUS). Since 1990, there have been only five cases where presidents have blocked mergers; two of these have been under Trump since his inauguration in January 2017. Impacts Foreign firms will face constraints on accessing US intellectual property and tech patents. Trump will impose new visa requirements for Chinese nationals working and studying in the United States. US vetoes of foreign investment and mergers could see other countries respond in the same way. The Broadcom-Qualcomm veto should help the US semiconductors industry maintain a global role in 5G technology. Foreign firms may sidestep the CFIUS by incorporating in the United States, as Broadcom hopes to do next month.

Governance implications of CFIUS reform for US investment funds with foreign investors

2019 ◽  
Vol 20 (1) ◽  
pp. 36-39
Author(s):  
Michael Leiter ◽  
John Caccia ◽  
Heather Cruz ◽  
Michael Hoffman ◽  
James Schnell ◽  
...  
Keyword(s):  
National Security ◽  
Foreign Investment ◽  
Design Methodology ◽  
The United States ◽  
Investment Risk ◽  
Investment Funds ◽  
Foreign Investors ◽  
Content Type ◽  
Practical Guidance ◽  
Risk Review

Purpose To explain how corporate governance is likely to be affected by drastic changes to national security reviews by the Committee on Foreign Investment in the United States (CFIUS), especially for US funds with foreign investors. Design/methodology/approach The article summarizes the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) and then details the pilot program and how to qualify for exceptions. Findings While many questions and considerations remain, including how FIRRMA will play out across various industries, we concluded that there will be an increase in CFIUS filings. Originality/value Practical guidance from experienced national security and CFIUS lawyers.

Nicaragua election criticism will not shake Ortega

2021 ◽  
Keyword(s):  
United States ◽  
Foreign Investment ◽  
Bilateral Trade ◽  
The United States ◽  
Economic Hardship ◽  
Political Repression ◽  
Content Type ◽  
Run Up ◽  
Increased Pressure

Significance The outcome comes as little surprise, given the repressive tactics used by the Ortega administration in the run-up to the vote, which included the disqualification or imprisonment of numerous opposition candidates. The United States and other international actors are now poised to put increased pressure on the re-elected government. Impacts The prospect of extended sanctions will act as a further disincentive to foreign investment. Ortega’s efforts to boost regional support through increased alignment with Honduras may lead to greater bilateral trade. More undocumented Nicaraguan migration looks inevitable, whether due to continuing political repression or worsening economic hardship.

Club convergence of crime rates in the United States of America

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kolawole Ogundari
Keyword(s):  
Violent Crime ◽  
Property Crime ◽  
The United States ◽  
Crime Rates ◽  
Community Level ◽  
Club Convergence ◽  
Content Type ◽  
Level Data ◽  
Convergence Club ◽  
Over Time

Purpose The cyclical behavior of US crime rates reflects the dynamics of crime in the country. This paper aims to investigate the US's club convergence of crime rates to provide insights into whether the crime rates increased or decreased over time. The paper also analyzes the factors influencing the probability of states converging to a particular convergence club of crime. Design/methodology/approach The analysis is based on balanced panel data from all 50 states and the district of Columbia on violent and property crime rates covering 1976–2019. This yields a cross-state panel of 2,244 observations with 55 time periods and 51 groups. In addition, the author used a club clustering procedure to investigate the convergence hypothesis in the study. Findings The empirical results support population convergence of violent crime rates. However, the evidence that supports population convergence of property crime rates in the study is not found. Further analysis using the club clustering procedure shows that property crime rates converge into three clubs. The existence of club convergence in property crime rates means that the variation in the property crime rates tends to narrow among the states within each of the clubs identified in the study. Analysis based on an ordered probit model identifies economic, geographic and human capital factors that significantly drive the state's convergence club membership. Practical implications The central policy insight from these results is that crime rates grow slowly over time, as evident by the convergence of violent crime and club convergence of property crime in the study. Moreover, the existence of club convergence of property crime is an indication that policies to mitigate property crime might need to target states within each club. This includes the efforts to use state rather than national crime-fighting policies. Social implications As crimes are committed at the local level, this study's primary limitation is the lack of community-level data on crime and other factors considered. Analysis based on community-level data might provide a better representation of crime dynamics. However, the author hopes to consider this as less aggregated data are available to use in future research. Originality/value The paper provides new insights into the convergence of crime rates using the club convergence procedure in the USA. This is considered an improvement to the methods used in the previous studies.

Reforms will help clean up China's securities market

2021 ◽  
Keyword(s):  
Insider Trading ◽  
Stock Price ◽  
The United States ◽  
Securities Market ◽  
Foreign Firms ◽  
Financial Fraud ◽  
Content Type ◽  
Listed Firms ◽  
Wide Range ◽  
Political Priority

Significance China's securities market has grown dramatically, but the rules that underpin its functioning have failed to keep pace and have been poorly enforced because regulators and courts lacked resources and the issue was never a political priority. Insider trading, stock price manipulation and other fraud is relatively common. Impacts A wide range of sectors and institutions will need to adjust, including investors, listed firms, traders, law enforcers and courts. Foreign firms investing in China will benefit from better protection from financial fraud. China may send judges abroad to learn from other systems; Europe is a more likely destination than the United States.

Introduction

2013 ◽  
Author(s):  
Noel Maurer
Keyword(s):  
United States ◽  
Latin America ◽  
West Africa ◽  
Institutional Reform ◽  
The United States ◽  
American Government ◽  
Foreign Investors ◽  
The U.S ◽  
Over Time

This introductory chapter discusses the shift from politicized confrontations like the imbroglio of 1900 to legalized disputes like the more orderly affair of 2007. It advances four basic findings. First, American government intervention on behalf of U.S. foreign investors was astoundingly successful at extracting compensation through the 1980s. Second, American domestic interests trumped strategic concerns again and again, for small economic gains relative to the U.S. economy and the potential strategic losses. Third, the United States proved unable to impose institutional reform in Latin America and West Africa even while American agents were in place. Finally, the technology that the U.S. government used to protect American property rights overseas changed radically over time.

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