As the nation’s economic strategies mature so does the necessity for more sophisticated methods of managing inbound investment, and for a greater level of understanding of global markets for the enterprises that are urged to forge their futures abroad.
The era of an opaque and uncertain environment for foreign business is receding as reforms aim to lift standards to international norms. And just as surely the picture of a new Chinese entrepreneur is emerging, with a greater understanding of legal and cultural divides that had previously impeded investment success. These new levels of clarity and perception are by no means coincidental, and in this issue of China Business Law Journal we explore issues that directly relate to these phenomena.
Raw deals looks at mining and energy at home and abroad. In the past year China launched a series of regulations and measures aimed at further relaxing controls over inbound and outbound investment; we examine the major developments that will influence flow in both directions.
External factors including oil and commodity prices are also factoring in a reshaping of investment markets for Chinese business. Some well-established relationships are beginning to wane, while new horizons beckon for big-ticket mineral and energy projects. Raw deals puts you in the picture with where the smart money is going, and what to watch out for in terms of regulatory advantages and pitfalls in these markets.
One of the most established markets in the world is also one of the most difficult for Chinese entrepreneurs to crack with success. US-bound businesses are increasingly encountering legal challenges, with US corporate governance among the most common of a variety of legal challenges that puzzle Chinese business executives.
Game on offers some practical advice and common sense answers to typical questions on distinctive aspects of the US corporate law system. The article refers more specifically to the Delaware corporation laws, the most favoured for business incorporations. If you are considering a US investment, or even if you are already entrenched in the US, Game on is a must read for both your executive and your corporate legal team. To be in the game you need to be up to speed.
For foreign investors and their legal advisers, Foreign infusion provides an insightful assessment of the draft Foreign Investment Law. The draft will replace a raft of laws that in many cases are behind the times. It represents a complete overhaul of the current pre-establishment approval regime governing foreign investment, and aims to create a more consistent, predictable and transparent legal framework for foreign investors.
While not yet finalised, it is all too clear that if you are considering investing in China, these reforms are likely to profoundly affect the structure and timing of those investments.