Insight Report

Linklaters Zhao Sheng Guide to investment in mainland China

18 Feb 2021

Linklaters Zhao Sheng’s Guide to investment in mainland China offers insight to foreign investors who are interested in this increasingly open market which promises equal treatment for domestic and foreign investors.

This guide examines the key legal and regulatory considerations for foreign businesses in their evaluation of possible investment opportunities in mainland China, in the context of an increasingly open market and burgeoning private sector and more recently. You can also click here for more information.

Key takeaways

  1. Foreign Investment Environment: We profile the ground-breaking Foreign Investment Law of mainland China, which promises equal treatment of domestic and foreign investors in accessing the Chinese market, and its related regulations which are intended to uphold this.
  2. Simplified Procedure for Setting up a New Business Vehicle: The Foreign Investment Law has substantially simplified incorporation procedures. However, investors will still require guidance on the technicalities arising in its implementation.
  3. Forms of Business Vehicles Harmonised: The Foreign Investment Law of China has simplified mainland China’s corporate landscape, harmonising the unique corporate forms for Sino-foreign joint ventures with those in use by domestic investors.
  4. Buying a Business in Mainland China – Mergers & Acquisitions: Foreign investors still need to be aware of the defining characteristics of M&A in mainland China including, sectoral filings/registrations, state-owned asset rules, merger control and national security review.
  5. Corporate Governance in Mainland China: We profile the unique aspects of governance of Chinese companies, including statutory veto matters and pre-emptive rights, constitutional checks and balances, and the special position of the legal representative.

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