Mergers and Acquisitions and Takeovers in China: A Legal and Cultural Guide to New Forms of Investment

This hugely informative book - unique in its overarching emphasis on the laws governing M&As and takeovers in China - not only shows those interested in investing in China how to avoid legal mistakes and miscalculations. In addition to offering singular interpretive analysis of strictly legal matters, the authors concentrate extensively on the all-important cultural and environmental factors that can make business in China daunting for the uninitiated. Extending this double emphasis on cultural understanding and M&A and takeover expertise, the authors clearly explain such elements of how to enter the Chinese market (or expand a presence in it) as the following:

• concepts of guanxi and mienzi;
• understanding China’s rising middle class; ;
• valuation of state-owned assets;
• maximum permitted debt-to-equity ratios;
• key PRC government agencies involved in the approval of transactions;
• taxation framework for enterprise restructuring in China;
• employees as an asset;
• share swaps;
• prohibited trading activities when acquiring a listed company;
• legal framework for dispute resolution;
• administrative proceedings;
• liabilities for breach of contract; and
• responding to intellectual property rights abuse.

The authors provide precise details on the characteristics of, and procedures involved in, the wide range of investment options available in China, with knowledgeable guidance on the choice of investment options and protection of investor interests. Because China is clearly a major global economic force and will continue to be so in the foreseeable future, this thorough but down-to earth guide is of immeasurable practical value to foreign investors of every kind, from multinational corporations to individual venture capitalists.