Weekly Highlights of Global Investment | Issue 80, July 27, 2024

Brief

Ministry of Commerce and seven other departments of China have jointly pushed for further facilitation of accommodation for overseas personnel in China; Tesla's plant project in Mexico has been suspended; Direct investment from China to Kenya has plunged; Chinese solar firm Junta shares has invested $280 million in the Middle East; China's Qineng Photovoltaic has jointly built a 10GW solar panel plant in Oman with Qineng Photovoltaic; Baosteel will increase its investment in its steel plate joint venture in Saudi Arabia to $1 billion; the energy giant of the UAE has teamed up with Wanhua Chemical to build a special polyolefin project in Fuzhou; Foxconn has started building an electric vehicle factory in Zhengzhou; iFLYTEK has invested $51.6 million to open an international headquarters in Hong Kong; and TotalEnergies and SSE will launch an electric vehicle charging network in Ireland.

Policy and Industry  Dynamics 

On July 25, the Notice on Several Measures to Facilitate the Accommodation of Overseas People through High-Standard Opening-up in the service industry (hereinafter referred to as the Notice) focuses on eight aspects: operating in accordance with the law and compliance, improving the reception capacity, strengthening the self-discipline of the industry, giving full play to the role of platforms, optimizing registration management, unclog service channels and improving payment convenience and creating a friendly atmosphere. These measures are to further facilitate the accommodation of overseas people in China.In particular, the circular emphasizes that local departments and online operating platforms should not apply qualification requirements to restrict accommodation operators from receiving accommodation from overseas. Operators should respect the privacy of accommodated personnel. At the same time, accommodation operators should ensure the legality and compliance of business activities, improve service capabilities, simplify information collection patterns, improve communication and service channels for overseas personnel, and provide convenience for international travelers.

Construction of Tesla's plant in Mexico suspended until U.S. election

On July 25, Tesla CEO Elon Musk said that the construction of Tesla's assembly plant in Mexico has been suspended until at least after the US presidential election in November. Musk said it would make no sense for Tesla to invest heavily in Mexico after Republican presidential candidate Donald Trump said he would impose tariffs on cars made in Mexico if he won the election.

Indonesia officially launched a "Golden Visa" program to attract foreign investors

On July 25, Indonesia has officially launched a long-term visa programme aimed at attracting foreign investors. Under this scheme, a five-year "golden visa" requires an individual investor to set up a company in Indonesia worth $2.5 million, while a 10-year visa requires an investment of at least $5 million. 

China's Direct Investment in Kenya Declines Sharply

Report on July 19 claimed that China’s directinvestment in Kenya has fallen by over a third in the past three years, according to Kenya’s National Bureau of Statistics. This decrease, particularly in the construction sector, reflects a shift in China's focus towards exporting products rather than investing. Despite this drop, China remains Kenya's top source of imports due to its extensive involvement in the Belt and Road Initiative. Meanwhile, US investments in Kenya have slightly increased, and India has overtaken China as the leading investor. The US continues to invest in sectors like health, ICT, and pharmaceuticals, areas where Kenya is seeing growing interest from international firms.

MNCs Global Investment

Junta shares announced that it plans to invest $280 million in Oman 

On July 25 evening, Junta shares announced that it plans to invest $280 million in Oman to build a 5GW high-efficiency battery production base. The project is expected to have a total investment of $280 million and a construction cycle of about 9 months. It is expected to be put into operation in 2025.

 "The investment is based on a comprehensive consideration of the political environment, fiscal and financing environment, trade environment, land and water policies, etc.," Junta shares said. As a leading global photovoltaic battery industry leader, the investment and construction of the high-efficiency battery production base in Oman will enable the company to fully utilize Oman's geographical and resource advantages and leverage its core photovoltaic battery technology advantages to effectively deploy its advanced battery capacity overseas. This will enable the company to flexibly respond to the complex and changing international trade environment and radiate the Middle East and Europe and the United States markets, thereby promoting the company's business development in the international market and enhancing its international market competitiveness. It will also promote the high-quality development of the company's overseas market business.

China Photovoltaic and Oman Investment are jointly building a 10 GW solar module plant in Oman

On July 25, Anhui Qineng Optoelectronics Co., LTD., a Chinese solar photovoltaic company, and Bakarat Investment Co., a well-known Oman renewable energy company, signed an agreement to jointly build a 10 GW solar module factory in Oman. The plant will have a PV module manufacturing capacity of 8 GW and PV cell production capacity of 2 GW.Ahmed Bin Saudi Al-Salmi, CEO of Bakarat Investments, said: "This project demonstrates our commitment to introducing cutting-edge technologies, supporting Vision 2040 through concrete actions, and contributing to economic growth through job creation and technological advancement."

China's Baosteel to Increase Investment in Saudi Steel Plate Venture to $1 Billion

On July 25, China's largest steelmaker, Baoshan Iron and Steel Co (Baosteel), has announced it will raise its investment in a steel plate joint venture in Saudi Arabia to $1 billion, up from $437.5 million. This venture, in partnership with Saudi Aramco and the Saudi Public Investment Fund (PIF), aims to enhance steel plate production in the region.Baosteel will also lower the financing collateral for the joint venture to approximately $1.1 billion from $1.3 billion. The joint venture, which Baosteel shares equally with Saudi Aramco and PIF, will have an annual capacity of 2.5 million tonnes of direct reduced iron and 1.5 million tonnes of steel plate, further solidifying its role in the global steel market.

The UAE energy giant joined hands with Wanhua Chemical to build a special polyolefin project

On July 24, according to the announcement of Wanhua Chemical Group Co., LTD. (Wanhua Chemical), its holding subsidiary Wanrong New Materials (Fujian) Co., LTD. (Wanrong New Materials) successfully signed the Project Cooperation Agreement with Abu Dhabi National Oil Company (ADNOC) and its affiliated companies Borealis and Borouge. According to the agreement, the four parties will jointly build an integrated special polyolefin facility in Fuzhou City, Fujian Province, and carry out a special polyolefin project with a capacity of 1.6 million tons per year.This cooperation marks another important layout of Wanhua Chemical in the field of high-end new materials. The parties will establish a sino-foreign joint venture company with a shareholding ratio of 50% : 50% after the approval of laws and regulations, and jointly promote the feasibility study and follow-up construction of the project.

Novo Nordisk plans to build a new plant in Denmark potentially to be used to expand production of weight-loss drugs

On July 23, Danish pharmaceutical giant Novo Nordisk announced that it had acquired planning permission for a 200-acre site in Odense, Denmark's third-largest city, earlier this month. Although Novo Nordisk did not disclose the purpose of the land, information available suggests that the company may use it to expand its production capacity for weight-loss drugs.The success of Wegovy, a weight-loss drug, and Ozempic, a diabetes drug, made Novo Nordisk the most valuable company in Europe last year. The Danish economy grew by nearly 2% last year, but without Novo Nordisk's contribution, the Danish economy would likely have stagnated.The company will soon begin preparatory excavations on the site and, after an internal review, will make a final decision on whether to invest in the new site by the end of the year, a Novo Nordisk spokesman said.

Foxconn will invest 1 billion yuan to build a new business headquarters in Zhengzhou

On July 22, Foxconn Technology Group signed a strategic cooperation agreement with the Henan provincial government. Foxconn will invest in the construction of a new business headquarters building in Zhengzhou to host the functions of the new business headquarters. The first phase of the project is located in Zhengdong New District, with a construction area of about 700 mu and a total investment of about 1 billion YUAN. It mainly builds seven centers, including headquarters management center, research and development center and engineering center, strategic industry development center, strategic industry financial platform, industrial research institute and key talent center, marketing center and supply chain management center. Foxconn will also focus on the layout of electric vehicle trial production center, solid state battery and other projects in Zhengzhou Airport Economic comprehensive experimental zone.

iFlytek Invests $51.6 million in Hong Kong, Opens International Headquarters

On July 19, Chinese tech company iFlytek claims that it is investing HK$400 million ($51.6 million ,348 million Yuan) in Hong Kong. They’ve opened their new international headquarters at Cyberport, a major tech hub in the city. The investment will fund a new team of 150 researchers who will work on large language models (like ChatGPT) and AI technologies for speech, education, and healthcare. iFlytek plans to expand its AI tools and work with local businesses in Hong Kong, including in education and healthcare. The Hong Kong government is already using iFlytek’s voice-to-text tools for meetings. If the initial investment goes well, the company may invest further.

TotalEnergies with SSE  launching an EV charging network in Ireland

On July 16, TotalEnergies and SSE (UK energy business) plan to form a joint venture called Source, which aims to expand the EV charging infrastructure in Ireland and the UK. Source will deploy up to 3,000 high-power charging stations over the next five years, the companies said. Source aims for a 20% market share in EV charging infrastructure. 

The establishment of the joint venture is depending on the approval of the relevant authorities.Source plans to build EV charging centers in prime locations in and around the city, which will be powered by renewable energy from SSE and Total Energy.

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