William Rosoff Discusses Chinese Foreign Direct Investment in China Forex
Chinese-language magazine China Forex has published “Recent Developments in Chinese FDI in the United States” by William Rosoff, partner in charge of Akin Gump’s Beijing office.
The article discusses the growth in Chinese outbound investment in the United States through a record year in 2012 and a resurgence in 2013 after a late-2012 slowdown. Rosoff notes that privately owned companies are catching up with state-owned enterprises in the area of overseas transactions, citing a recent report that “16 out of the 17 deals closed in Q1 2013 by Chinese companies, were done by privately-owned enterprises.” He adds that areas for foreign direct investment expansion are broadening and that provincial governments have been “encouraging privately owned firms in their regions to ‘go out,’” a trend he identifies as having important economic, financial, regulatory and legal implications.
After elaborating on these points, Rosoff notes, in conclusion, that while CFIUS (Committee on Foreign Investment in the United States) review should not be a hurdle to most Chinese acquisitions, “[a]ttention must also be paid, however, to the political process and potential use of political opposition to support other financial or competing interests that may oppose a particular transaction.”
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