Louis Meng, George Wang and James Zhang in The Wall Street Journal: Chinese Investment to U.S. Faces Hurdles In Both Countries

03/31/2015

With the rapid increase of Chinese investments to the U.S., companies need to be focused not only on complying with U.S. laws and regulations, but making sure they are taking the right steps with Chinese authorities.

Along with understanding and navigating the bureaucratic mazes regulating investments in both countries, companies need to understand the cultural differences in matters including use of attorneys and how to properly handle compliance problems or questions from regulators …

Despite these efforts, vagueness and unclear rules remain in the legislation on state-owned enterprises’ outbound investment regulation, said Louis Meng, a partner and co-head of Haynes and Boone’s Asia practice group. There have been transactions where a state-owned enterprise received quick regulatory approval because the proposed investment was encouraged by the government, but in other cases there were delays because of inefficient internal reporting and approval processes, he said.

“Compared to state-owned enterprises, a private companies’ deal timelines  are generally more predictable because the governmental formalities applicable to them are relatively more straightforward,” said Mr. Meng.

Excerpted from The Wall Street Journal. To read the full article, click here.

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