China has long been associated with high levels of corruption and is one of the BRIC (Brazil, Russia, India and China) countries often cited as having higher risk. Frequently, at least in the compliance context, the term ‘BRIC countries’ carries the negative connotation of being high risk. However, the BRIC countries are, as we all appreciate, the economies anticipated to represent nearly half of global GDP by 2050. So, there are clearly good reasons to seek to invest in these countries, even with the risks and challenges associated.
FRA Partner Jerry Hansen, Director Weng Yee Ng and Senior Associate Yueting Wang share their insights and look at several specific risks within general categories of carrying out M&A deals in China. The chapter concludes with steps to mitigate the risk of doing business in China.
Topics covered include:
• Bribery and corruption risks
• China’s social credit system
• Successor liability risk
• Third party due diligence
• Considerations with different types of M&A transactions
• Data privacy and data security risks
• Impact of trade war, sanctions and anti-competition
• Foreign currency transactions and profit repatriation from China
• National secret
• Environmental risks
• Money laundering
Download the full chapter here.
Forensic Risk Alliance Senior Associate Yueting Wang also contributed to this book chapter.