Media Focus on Multinational Corporations[2021.08.09]






Flipkart Faces $1.35bn Fine Threat Over Alleged Foreign Investment Law Breaches

Walmart’s Flipkart and its founders have been threatened with a $1.35 billion fine by India’s financial-crime agency over allegations that they broke foreign investment laws.

An Enforcement Directorate official told Reuters the case concerned an investigation into claims that Flipkart attracted foreign investment and a related party, WS Retail, then sold goods to consumers on its shopping website, which was prohibited under law.

The agency has been investigating e-commerce giants Flipkart and Inc for years for allegedly bypassing its foreign investment laws which strictly regulate the marketplace.


State Grid and Shaanxi Geopower are officially reorganized!

State Grid Shaanxi Electric Power Co., Ltd. has recently completed industrial and commercial registration. According to public information, the cooperation between the State Grid Corporation of China and Shaanxi Geoelectricity, which has received much attention before, has made substantial progress, and the shareholders of both parties have registered and established a new company, State Grid Shaanxi Electric Power Co., Ltd.

The new company was established on July 20, 2021, with a registered capital of 3.53 billion yuan. Among them, the State Grid Co., Ltd. invested 2.53 billion yuan, holding 71.6714% of the shares; Shaanxi Provincial State-owned Assets Supervision and Administration Commission invested 10 million yuan, holding 28.3286% of the shares. The chairman and legal representative of the new company are Mr. Hu Weidong, the former chairman of the State Grid Shaanxi Company. The current operating status of State Grid Shaanxi Electric Power Co., Ltd. is opening.




BASF and SINOPEC to further expand their Verbund site in Nanjing, China

Nanjing, China – August 5, 2021 – BASF and SINOPEC will further expand their Verbund site operated by BASF-YPC Co., Ltd. (BASF-YPC), a 50-50 joint venture of both companies in Nanjing, China. It includes the capacity expansion of several downstream chemical plants, including a new tert-butyl acrylate plant to support the growing Chinese market.

The partners will expand the production capacities of propionic acid, propionic aldehyde, ethyleneamines, ethanolamines and purified ethylene oxide, and build a new tert-butyl acrylate plant. The tert-butyl acrylate plant will be an extension to the downstream using acrylic acid and isobutene of the existing Verbund as feedstock, which marks the first time this advanced production technology is applied outside of Germany. The expanded and new plants are planned to come on stream in 2023.

JPMorgan Chase Securities

“Catfish” is here!JPMorgan Chase Securities will become the first wholly foreign-owned securities firm and foreign investors will compete to increase the layout of the Chinese market

As the opening up of China’s capital market continues to increase, foreign-funded institutions are increasing their deployment in China.

In the evening of August 6, a reporter from 21st Century Business HeraldJPMorganIt is learned that the China Securities Regulatory Commission hasJPMorganSecurities (China) Co., Ltd. holdingshareholder——JPMorganThe matter that International Finance Co., Ltd. transferred the equity held by five domestic shareholders and became the sole shareholder of JPMorgan Chase Securities (China) was approved for record. JPMorgan Chase Securities (China) will become China’s first wholly foreign-owned securities company.

On a larger scale, foreign holdingsBrokerageAt present, it has increased to 9 companies, including JPMorgan Chase Securities (China) Co., Ltd., Credit Suisse Securities,Goldman SachsGao Hua Securities, UBS Securities,Morgan StanleySecurities (China) Co., Ltd., Nomura Orient International Securities, HSBC Qianhai Securities, DBS Securities, Daiwa Securities (China).


Huawei's net profit margin hit 9.8% in H1 2021

Huawei Technologies Co said on Friday it generated 320.4 billion yuan ($49.6 billion) in revenue in the first half of this year, with its net profit margin reaching 9.8 percent.

The Chinese tech giant said its overall performance was in line with forecasts.

Specifically, its carrier business group recorded 136.9 billion yuan in revenue, the revenue for its enterprise business was 42.9 billion yuan and the revenue for its consumer business was 135.7 billion yuan.

Xu Zhijun, rotating chairman of Huawei, said 'We've set our strategic goals for the next five years.”

Singapore Airlines Group

Scoot gears up for growth amid COVID woes

Scoot, the low-cost arm of Singapore Airlines Group, said it has upgraded its services and health and safety measures during the downturn of global air travel market since the COVID-19 pandemic began, and is confident in the future growth potential of its business, especially in Asia.

So far, it has resumed flights for more than one-third of its total routes, reaching 12 countries and 26 destinations. Before the pandemic, its network expanded to 68 destinations across 15 countries, it said.

In the Chinese mainland, the budget carrier currently operates once-a-week round-trip flights that connect Singapore with Tianjin, Guangzhou, Guangdong province, Nanjing, Jiangsu province, Zhengzhou, Henan province, and Wuhan, Hubei province. Those five routes between Singapore and the Chinese mainland resumed flying between June and December last year.

In addition, Scoot also resumed flights between Singapore and Hong Kong, Macao and Taiwan. Most flights of Scoot are under code share agreements with Singapore Airlines.


Unilever unit joins in rural revitalization with efforts in Tibet autonomous region

The United-Kingdom-based ice cream brand Wall's is working with the China Environmental Protection Foundation to run a cultural and recreational program in communities in Doilungdeqen district of Lhasa, the Tibet autonomous region, to help contribute to the nation's rural revitalization drive.

Two cultural and recreational centers have been built in villages in Doilungdeqen this year. The centers will offer leisure activities to more than 2,000 local residents.

The two centers will use professional visual and acoustic equipment for Tibetan musical and dance routines to promote Tibetan culture. The venues are also equipped with computers, artificial intelligence learning machines and many other facilities to educate students.

For children, the two centers have legos, magnetic sticks, drawing books and other materials for learning purposes alongside slides, scooters and other sporting goods for physical education.

Through the program, Wall's hopes to provide not only material resources, but also spiritual joy to local communities, bring residents better cultural and recreational facilities and also increase the utilization rate of entertainment facilities in rural areas. The company's eventual goal is to empower local residents and help with the country's overall rural revitalization drive, said Xu Yucong, vice-president of foods and refreshment North Asia of Unilever, a global food and personal care conglomerate that owns Wall's. Local rural residents also received 10,000 ice creams for free from the company through the program.


CECEP eyes BRI markets in new energy

China Energy Conservation and Environmental Protection Group, or CECEP, a centrally-administered State-owned enterprise, will widen its market presence in businesses like new energy and environmental protection in markets involved in the Belt and Road Initiative during China's 14th Five-Year Plan period (2021-25), said the group's top executive on Thursday.

The planned diversification fits in with a global trend of continually deploying resources to further bring down carbon intensity, enhance the functions of the carbon trading system and make technological breakthroughs in related fields.

'The next decade will be critical for governments and businesses across the world to respond to climate change,' said Song Xin, chairman of Beijing-headquartered CECEP.

He said the group will introduce new technologies and solutions to seize more civil and environmental protection projects in economies participating in the BRI in the coming years, while attracting foreign investment, and advanced energy conservation and environmental protection technologies to benefit both home and global markets.


Bupa readies high-end health insurance

Bupa Global, a UK-based premium health insurer, is upbeat about the huge market opportunity that China's high net worth individuals or HNWIs present, and will keep investing in the country to offer more personalized products and high-end services, its top executive said.

HNWIs are consumers with a net worth of over $1 million each.

Sheldon Kenton, managing director of Bupa Global, said: 'China is home to one of the world's fastest-growing community of HNWIs and this is set only to grow. As consumers demand more digital services, we have to move fast. We are focused on urban areas, large populations, and maximizing access to high-end insurance to people across the country. Now that we're beginning to see the light at the end of the tunnel when it comes to COVID-19, we can focus on opportunities in China.'


Healthcare firm 'excited' over China's innovation

China's staunch commitment to promoting high-quality development and further opening up its market to foreign investors and companies will help accelerate innovation, which will allow high-tech companies to flourish and help foreign enterprises to operate successfully in the nation, said a top executive of Insightec, a global healthcare company headquartered both in Haifa in Israel, and Miami in the United States.

Founded in Israel, Insightec is the first in the world to launch a magnetic resonance-guided focused ultrasound (MRgFUS) platform to treat targets in the brain for movement disorders without incisions.

Maurice R. Ferre, CEO and chairman of Insightec, said China's pursuit of high-quality development and deepening of reforms is beneficial for people and businesses alike.


DTS eyes China's home theater market with IMAX program

United States-based DTS, a leading high-definition audio solutions provider and a wholly owned subsidiary of Xperi Corp, has seen new growth opportunities in China's rising home entertainment market.

DTS said it will continue to speed up efforts to support the IMAX Enhanced program, which was launched in partnership with IMAX and combines IMAX digitally remastered 4K HDR content and DTS premium audio delivered through high-end consumer electronics and streaming platforms.


DEC opens its first overseas wind farm project in Ethiopia to the world

It is the first wind power project in the Somali Region of the country and the first of its kind to be generally contracted by DEC overseas.

Equipped with 48 sets of 2.5-megawatt permanent magnet direct drive wind power generator units, the project has a total installed capacity of 120 MW.

In addition to the generator units, booster stations, turbine groups, power transmission lines and areas for living can also be found at the project site.

The construction site of the modern booster station designed and built to Chinese standards was livestreamed at the event, as was the hoisting of the wind turbines.

Once operational, the project with an annual power output of 467 gigawatt-hours will provide power to the Addis Ababa-Djibouti railway, the Dire Dawa Industrial Park and the Republic of Djibouti and will also ensure stable and sufficient power for the Addis Ababa-Djibouti Economic Corridor.

It's worth noting that the project has provided more than 300 local jobs.

China Mobile

China Mobile forges tie-ups in 5G push

China Mobile, the largest telecom operator in China, is partnering with dozens of companies, including Huawei Technologies Co and Qualcomm Inc, to unveil an action plan for 5G evolution technologies over the next five years.

The tie-ups coincide with the global telecom industry's active exploration of ways to evolve 5G technologies for technical improvements and wider commercial use, following the progress made globally in rolling out superfast 5G networks.

China Mobile said the 5G Advanced Innovation and Industry Chain Integration Action Plan is designed to clarify the goals and key measures of promoting 5G advanced technologies, lower industry thresholds and provide continuous momentum for the healthy development of the entire industry.

The company proposed three major targets for the action plan: building advanced capable network; advanced intelligent system; and advanced energy-efficient industry.

Such goals take cognizance of China's 916,000 5G base stations as at mid-July, which account for 70 percent of the world's total. The number of 5G connections has exceeded 365 million, accounting for 80 percent of the world's total.



Huawei to invest $100m in Asia-Pacific startup ecosystem over 3 yrs

Huawei Technologies Co on Tuesday announced its plan to invest $100 million to support startups over the next three years, as the Chinese tech heavyweight aims to help build a sustainable startup ecosystem for the Asia-Pacific region.

The plan was unveiled at the inaugural Huawei Cloud Spark Founders Summit, which took place simultaneously in Singapore and Hong Kong.

Huawei said the investment would go toward its Spark Program in the Asia-Pacific region, which aims to build a sustainable startup ecosystem for the region over the next three years.


L'Oreal expands beauty presence in China market

L'Oreal Group, the world's top cosmetics company by revenue, is upping its ante in China with a series of product introductions, a new headquarters campus opening and the roll-out of customized social initiatives to stay relevant in its local agenda.

First half sales in Chinese mainland, a major contributor to L'Oreal's overall performance, reported an increase of 34.2 percent year-on-year, outperforming its global reading of 20.7 percent during the same period, the company said on Friday.

The beauty giant, which in May announced that Shanghai is its North Asia headquarters, will debut a number of new brands, beauty-tech solutions and a unique beauty triangle featuring skincare highlights of China, Japan and South Korea during the fourth China International Import Expo in November.


GCL New Energy unveils hydrogen energy plan

As China has been supporting the development of the hydrogen energy industry, which is one of the important technological paths to achieve the country's carbon emissions peak and carbon neutrality, an increasing number of companies are making plans in the sector.

GCL New Energy Holdings Ltd, a new energy company under GCL Group, whose primary business is solar power generation, announced its hydrogen energy strategy recently.

According to Zhu Gongshan, founder and president of GCL Group, the company's plan is composed of two units - 'blue' hydrogen and 'green' hydrogen.

For the first phase, GCL New Energy will produce 2.3 million tons of ammonia annually, which can supply 700,000 tons of 'blue' hydrogen for the domestic market.

In terms of the 'green' hydrogen unit, the company plans to build 100 comprehensive energy stations by 2025 with an annual production capacity of 400,000 tons.

The 'blue' hydrogen is produced by transforming methane into hydrogen plus carbon dioxide, while the 'green' hydrogen – also referred to as 'clean hydrogen' is produced by using clean energy from surplus renewable energy sources, such as solar or wind power.

'There is a huge market demand for hydrogen energy in China,' Zhu said. 'GCL New Energy will build itself into a comprehensive hydrogen service provider without subsidies.'

To further form a complete industrial chain for hydrogen energy, the company signed strategic cooperation agreements with two financial companies to build a hydrogen industry investment fund with a scale of 10 billion yuan ($1.54 billion) and a new energy industry investment fund with a scale of less than $800 million.


Airbus building vertical integration supply chain

European aircraft manufacturer Airbus said it has been rebuilding and diversifying the layout of its global supply chain since the outbreak of the COVID-19 pandemic, and is willing to see more Chinese enterprises become its suppliers as it is forming a 'vertical integration supply chain in China'.

Over the past decade, Airbus has constantly expanded its supply chain network in China, its largest market. So far, it has more than 200 suppliers in China, including 23 tier-one suppliers from whom Airbus purchases parts and components directly.

Last year, Airbus' annual industrial spending on the commercial aircraft business in China reached about $1 billion, up almost 60 percent from the 2016 level, it said.

China Resources Land Ltd

China Resources Land plans more shopping centers in northeast to tap growing demand

China Resources Land Ltd, a business unit of centrally administered State-owned conglomerate China Resources Group, is planning to run more than a dozen mega integrated shopping complexes in the country's northeastern region by the end of the 14th Five-Year Plan period (2021-25), a senior executive said.

The plan was triggered by the fast growing consumption power in the area, especially among millennials (those born in the 1980s and 1990s). Leveraging the advantages of 'first-store economy', one-hour high-speed train journeys between major cities and its surrounding towns, as well as the nation's demand for building smart and green cities while preserving their unique features and history, the company mulled the steps to tap the sector, said Wang Yong, general manager for the northeastern region of CR Land Ltd.

The company to date operates six commercial property projects of CR Land Ltd in cities including Shenyang, Dalian and Anshan in Liaoning province, and Harbin in Heilongjiang province.

It is building six more projects in the northeastern and northern cities such as Changchun, Jilin province and Hohhot, the Inner Mongolia autonomous region. All will be put into operation by the end of 2025.