China’s outbound investment faces greater scrutiny


China’s outbound investment may reach US$1.5-US$2.5 trillion in the next 10 years, as forecast by a recent Linklaters’ report, but investors must be ready to face tougher regulatory scrutiny overseas.

The Linklaters report titled The road to success: completing outbound investment in an increasingly regulated world identifies that about US$170 billion of Chinese outbound investment was announced in 2017. This is below the US$230 billion announced in 2016, but still the second- highest figure on record.

However, several high-profile deals were blocked or delayed due to regulatory and political concerns in 2017 and at the start of this year, although those deals may not have caused any real harm. Attaching more importance to the overseas regulators’ concerns is hence more necessary than ever.

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