What are the key risks to doing M&A deals in China?
From the day Deng Xiaoping opened China’s doors to the international market it has, and continues to be, one of the countries that holds great appeal to foreign investors. This interest has given rise to an exponential increase in the volume of M&A transactions involving Chinese companies, some of which have been great success stories while others have been never-ending challenges for the investors.
To reap the rewards, risk exposures need to be managed. The most common risks are those related to the political or regulatory climate in China; the documented historical bribery and corruption risks; financial risks related to the ability to move monies in and out of China; among other operational risks.
In this chapter published in Practice Guides: China M&A, Lexology Getting The Deal Through (GTDT), FRA experts Jerry Hansen, Weng Yee Ng, Michelle Zhao and Kezia Hardingham take a closer look at several specific risks within these general categories of doing M&A deals in China.
