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.

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.

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.

Domestic factors will weigh on Central Europe’s autos

2018 ◽  
Keyword(s):  
The United States ◽  
Consumer Confidence ◽  
Gdp Growth ◽  
Foreign Trade Policy ◽  
Short Term ◽  
Content Type ◽  
Car Industry ◽  
Investor Confidence ◽  
Per Capita ◽  
The Eu

Subject Central Europe’s car industry. Significance The uncertainty surrounding US foreign trade policy has created headwinds to growth for Central Europe (CE) and its automotive sector, even though CE auto exports are highly concentrated on the EU, and CE has only limited trade exposure to the United States. Business and consumer confidence is patchy among some of the fastest-growing economies in the region, such as Poland. Impacts CE auto production will be an important driver of economic growth in 2018-19; Slovakia has the highest per capita auto production globally. Robust GDP growth should help partly offset declines in business or investor confidence in the short term. However, the worsening price competitiveness of the car industry will be a concern.

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.

Misusing historical analogies limits US policy options

2021 ◽  
Keyword(s):  
United States ◽  
Middle East ◽  
The United States ◽  
Policy Options ◽  
Negative Consequences ◽  
Content Type ◽  
White House ◽  
Decision To Leave ◽  
Us Military ◽  
The Future

Significance The Vietnam analogy implies that President Joe Biden’s decision to leave Afghanistan will have deeply negative consequences for the United States. However, Afghanistan is not Vietnam and the Biden withdrawal needs to be considered within the wider context of his administration’s review of US commitments abroad. Impacts The White House will be pressured to clarify the future of other US military commitments, particularly in Iraq. Biden will seek to reassure allies, particularly those in NATO, that his commitment to multilateralism will not diminish. Biden may seek an opportunity for a military show of force, possibly in the Middle East, to refute accusations of weakness.

Creeping authoritarianism is a real risk in Tunisia

2021 ◽  
Keyword(s):  
United States ◽  
United Arab Emirates ◽  
Prime Minister ◽  
The United States ◽  
Political Crisis ◽  
Content Type ◽  
Real Risk ◽  
Chief Prosecutor ◽  
Moderating Role ◽  
The Eu

Significance He did not name a new prime minister. Over July 25-26, Saied dismissed Prime Minister Hicham Mechichi, dissolved his government, suspended parliament for 30 days, lifted parliamentary immunity and declared himself chief prosecutor, triggering Tunisia’s worst political crisis in a decade. Impacts The Ennahda party could be persecuted once again, this time on corruption charges, as the reconciliation offered excludes its members. Tunisia may become a new ideological battleground, pitting Turkey and Qatar against the United Arab Emirates (UAE), Saudi Arabia and Egypt. The EU, the United States and Algeria have some influence on Tunisia and could perhaps play a moderating role.

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.

EU may struggle to enforce social standards via trade

2021 ◽  
Keyword(s):  
United States ◽  
The United States ◽  
Environmental Standards ◽  
Content Type ◽  
Social Standards ◽  
Investment Agreement ◽  
Trade Deals ◽  
First Time ◽  
Trade Partners ◽  
The Eu

Significance In 2020 the European Commission appointed a Chief Trade Enforcement Officer for the first time, signalling that Brussels is intent on enhancing its capacity to enforce standards agreed in trade deals. However, the EU's experience with South Korea suggests that holding trade partners to account over breaching standards will be difficult. Impacts Relations with trade partners could deteriorate if the EU is seen to be aggressive in enforcing its standards. Concern over China’s willingness to improve labour and environmental standards could impede ratification the EU-China investment agreement. The EU may be reluctant to sanction some partners, such as the United States, that breach labour or environmental standards.

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.

Quitting globalization: trade-related job losses, nationalism, and resistance to FDI in the United States

2019 ◽  
pp. 1-20 ◽  
Author(s):  
Yilang Feng ◽  
Andrew Kerner ◽  
Jane L. Sumner
Keyword(s):  
Foreign Investment ◽  
The United States ◽  
Foreign Firms ◽  
Survey Experiment ◽  
Domestic Investment ◽  
Business Investment ◽  
The Public ◽  
Chinese Investment ◽  
Chinese Business ◽  
Public Imagination

AbstractExisting research has found that American politicians benefit from trying to attract investment and creates jobs. In this paper, we build on this work by describing the drivers of Americans' attitudes toward inward foreign investment (FDI). We posit that foreign and Chinese investment are different than domestic investment in the public imagination and that nationalism and proximity to deindustrialization interact to shape public opinion about them. We propose and test two theories of this interaction using a survey experiment that randomizes whether a respondent is responding to a statement about “business investment,” “foreign business investment,” or “Chinese business investment”. We find that (1) Americans are skeptical of business investments by Chinese, and, to lesser degree, “foreign” firms; (2) the gap in enthusiasm for generic business investment and foreign/Chinese business investment rises with local trade-related job losses; and (3) the distinction between nationalists' and non-nationalists' attitudes toward FDI declines in local job losses.

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