A growing number of Chinese companies have made acquisitions, entered into joint ventures or engaged in Greenfield investments in the United States. Many Chinese companies consider these transactions to be attractive, strategic opportunities, though some may hesitate to proceed due to concerns regarding the U.S. transaction process and business and legal requirements that may impact operation of the required U.S. company post-acquisition, as well as the non-U.S. business of the Chinese company. This article provides an overview of key considerations for Chinese companies making acquisitions or conducting business in the United States, and discusses the advantages of the U.S. legal and business climate as compared to other systems and markets, which can heighten the benefits of engaging in such transactions.
This article was originally published by Bloomberg Finance L.P in the Vol. 3, No. 7 edition of the Bloomberg Law Reports – Asia Pacific. Permission for article reprint has been granted.
Andrew M. Ross is a partner and chair of the Mergers and Acquisitions Practice Group in the New York office of Loeb & Loeb LLP, as well as Co-Chair of the firm's Corporate Group. He practices in the areas of domestic and international mergers and acquisitions, debt and equity financing, venture capital and bank financing, and general corporate representation. He can be reached at email@example.com or 212.407.4838.