28 SEPTEMBER 2022View in Browser
 
 
 

This week's primary foreign investment news
from our ASEAN, China, India, Russia, Belt & Road and Vietnam Briefings.
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HEADLINES: This week in Asia, we examine the EU position paper on China, coupled with a look at the foreign direct investment results YTD, and take a look at the NEV scene in Guangxi. ASEAN remains bouyant as China risk evaluations push some businesses into the region, we examine Indonesia’s investment zones, the Thai Halal market and the possibilities for expats to relocate to Malaysia under the new ‘Digital Nomad’ visa.

In India we take a look at why Gujarat on the Western seaboard is booming and the opportunities for investors in this dynamic region, and examine the countries growing ties with the UAE. Turkey is developing as an East-West manufacturing hub; we discuss setting up proiduction lines in the country.

We see how Russia is poised to accept cryptocurrency in international trade and provide the 100th issue of our popular Belt & Road Investment Intelligence roundup. Finally, we finish with a look at the geopolitical situation in Europe as the Ukraine conflict is poised to come to a potential conclusion, while EU voters begin to question their politicians wisdom over Russian sanctions.

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CHINA
EU Chamber in China Releases Position Paper for 2022/23
European businesses are concerned about China’s business environment but remain optimistic about the country’s long-term prospects, according to the EU Chamber’s annual position paper for 2022/2023. Among others, the Chamber urges that China should make more pragmatic efforts to rebuild investor confidence and continue its reform and opening up.
 
China 2022 FDI Roundup: Strong Growth as China Looks to Strengthen Policies
Foreign investment in China saw rapid growth in the first eight months of 2022, particularly in sectors such as high-tech and manufacturing. However, foreign direct investment from the European Union became more concentrated – among certain sectors and countries – and hedge funds experienced the highest net outflows in 15 years. Meanwhile, Chinese officials are attempting to address foreign investor concerns surrounding COVID-19 control measures and market reforms by rolling out relevant policies.
 
China's Guigang City: The New South Asian Hub For NEV Manufacturing
Guigang City, in south China's Guangxi Province has been focusing on developing an industrial cluster of new energy vehicles and electric bikes, and promoting their use to new markets across ASEAN. It already has an annual production capability of 5 million e-bikes, 500,000 electric tricycles and 5 million sets of e-bike parts.
 
ASEAN
Choosing the Ideal Investment Location in Indonesia’s Special Economic Zones
For foreign investors, entering Indonesia’s special economic zones (SEZ) and taking full advantage of what they offer requires a long-term outlook. Companies must first ensure their industry is suited to the infrastructure and benefits afforded in the SEZs and understand the long-term domestic and regional policies that could impact their industry.
 
Malaysia Issues Digital Nomad Visa: What are the Requirements?
Malaysia has issued a special work permit specifically for digital nomads called De Rantau. The program aims to attract foreign and local digital professionals to work in the country for between three and 12 months. Applications are open from October 1, 2022.
 
Opportunities For Islamic Exporters To Access Thailand’s Halal Market
Despite Muslims making up only eight to 12 percent of Thailand’s economy, the country is one of the largest exporters of Halal food in the world, accounting for 20% of its total food exports. Accordingly, there are significant opportunities to Islamic exporters familiar with the Halal markets to sell to the Thai market, which also offers a gateway to a regional South Asian Muslim market of 500 million consumers.
 
INDIA
Investing in Gujarat: Industrial Capacity, Preferential Zones, Exports
Gujarat is India’s top industrial state in terms of manufacturing capacity, investment opportunities, operational special economic zones and other investment-friendly locations for industrial set-up, logistics and connectivity infrastructure, opportunities for emerging sectors like renewables and financial services, and a stable policy environment.
 
India-UAE Bilateral Trade: Trends and Outlook
In FY 2021-22, the United Arab Emirates (UAE) was India’s third largest trade partner, with total non-oil bilateral trade valued at US$72.87 billion. Following their recent CEPA trade agreement, India-UAE annual bilateral non-oil trade is set to grow to US$100 billion and trade in services to over US$15 billion in the next five years. The latest reports already point to a significant 14% increase in India’s non-oil exports to UAE.
 
MIDDLE EAST
Establishing A Foreign-Invested Manufacturing Production Line In Turkey
Developing trade corridors between West and East have assisted Turkey become an export manufacturing hub with access to Europe as well as markets in the Middle East, Central Asia, and South Asia, and this will only increase as routes such as the INSTC and others from the Caspian Sea continue to develop.
 
RUSSIA
Russia Moves Closer To Legalizing Cryptocurrencies In International Trade
Russia’s Central Bank and the Finance Ministry have agreed on a draft bill to introduce the use of bitcoin and cryptocurrencies in international trade settlements. The Russian Deputy Finance Minister said the bill “describes how cryptocurrency can be purchased, what can be done with it, and how cross-border settlements can or cannot be made.”
 
BELT & ROAD INITIATIVE
Belt And Road Weekly Investor Intelligence #100
China is powering ahead in its receipt of foreign direct investment and is continuing to invest in the energy sectors in both gas and NEVs while also engaging in significant transport infrastructure connectivity. Much of this focus now centers on the Middle East. Intra-Central Asian trade continues to be buoyant while Russia continues its new adventures into new markets at both the federal and regional levels. The US now threatens Turkish banks with SWIFT disconnections, with both China and Russia taking steps forward with digitizing their currencies.
ANALYSIS
An Introduction To The Russian/Ukrainian Referendum Regions
Controversial referendums are taking place in four disputed regions between Russia and Ukraine. We provide a regional overview and map, identify the demographics and discuss the geopolitical implications on the Ukraine conflict should they be annexed.
 
OPINION
How Europe’s Dysfunctional Democratic Politics Are Creating Regional Mayhem
European Prime Ministers are now making strategic long-lasting decisions while holding on average just 20% of the popular vote and disallowing referendums.
 
 
 
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Import and Export in India: Procedures, Policies and Opportunities for foreign investors
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Webinar | October 6, 2022 | 4:00 PM Vietnam / 5:00 PM China / 11:00 AM CET
 
 
 
 
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