The Asia Reassurance Initiative Act and ASEAN, e-Commerce Rules in India – China Outbound
Our weekly round up of other news affecting foreign investors throughout Asia.
On December 31, 2018, US President Donald Drumpf signed the “Asia Reassurance Initiative Act” or ARIA into law following its approval by the US Senate on December 19, 2018.
The ARIA’s main aim is “to develop a long-term strategic vision and a comprehensive, multifaceted, and principled United States policy for the Indo-Pacific region”. More specifically, the enacted law is focused on the promotion of American interests in the Indo-Pacific region in terms of defense and security partnerships.
It is shaping up to be a tough year for foreign e-commerce firms in India.
From February 1, 2019, e-commerce platforms with foreign investment will not be able to sell products of companies in which they own equity, or form exclusive marketing arrangements with sellers to directly, or indirectly influence the price of their product.
Foreign investment from the West has significantly dropped off since the imposition of sanctions on Russia.
However, with the immediate Kremlin response a call to “Go East”, as well as to become more self sufficient, opportunities are now presenting themselves in the wake of many European businesses exiting the Russia market.
India has agreed to fund Sri Lanka’s Kankesanthurai Harbour Port, a three year development set to handle general cargo.
The US$45 million project sees the existing, Sri Lanka Navy facilities be re-positioned as a commercial port, capable of handling larger vessels.
In 2018, investments in Vietnamese startups reached US$889 million, nearly triple the deal value compared to US$291 million in 2017, according to a report released by Topica Founder Institute (TFI), a startup accelerator programme.
The number of deals in 2018 was the same as 2017, at 92.
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