In the news: CFIUS clears ChemChina-Syngenta, China tightens car emissions standards, selfie app maker Meitu files for an IPO and Apple invests in R&D
August 23, 2016 | BY
Katherine Jo &clp articles &This week the $43B Sino-Swiss deal received U.S. regulatory approval, proposed emissions rules dampened China's auto profit outlook, the Hong Kong stock exchange's attempts to lure tech firms were discussed and Apple announced a new R&D center
CFIUS clears $43B ChemChina-Syngenta deal CFIUS has emerged as a significant risk for Chinese acquisitions—Unisplendour Corp. scrapped a $3.8 billion investment in Western Digital Corp. in February after CFIUS said it would investigate the deal. The Syngenta approval is a positive signal, but market observers say a U.S.-China bilateral investment treaty must be signed soon so similar U.S. investments will be possible in China. Currently, the Foreign Investment Industrial Guidance Catalogue (China's FDI bible) places the seed and crops industry in the 'restricted' category (i.e. subject to approval), while it prohibits the production of certain transgenic crop and seed varieties. The seed industry also appears on the latest Free Trade Zone negative list . NDRC draft eases outbound regulatory approvals Lawyers split over breakup fees in U.S.-China M&A U.S. and EU cartel risks to Chinese companies China Outbound Investment Guide: United States 2015 New emissions rules threaten auto industry profits Overseas carmakers may be better placed than their domestic rivals to cope with stricter standards because they already face similar requirements in other markets. Many have brought hybrid and electric vehicles into their Chinese fleets to avoid non-compliance issues, while their local counterparts' product ranges are increasingly dominated by somewhat gas-guzzling SUVs. Complying with emission targets are expected to cost foreign carmakers Rmb5,000 to Rmb7,000 per vehicle, while domestic brands may have to fork out more. Daimler interview: Driving compliance forward Ministry of Commerce and Seven Other Departments, Several Opinions on Promoting the Pilot Project for Parallel Import of Motor Vehicles The draft auto AML guidelines explained Vehicles & vertical restraints Ministry of Commerce, Measures for the Administration of the Sale of Motor Vehicles (Draft for Comments) How to properly conduct an auto recall in China Selfie app maker Meitu files for HK IPO The NYSE and NASDAQ have long been preferred by China's internet giants due to share-structure rules that let executives retain more control and U.S. investors' familiarity with tech business models. Hong Kong's more rigid listing regulations, meanwhile, don't allow companies to have multiple share classes with different voting rights and frown on structures that let executives control their companies despite relatively small holdings. This was one reason why Alibaba Group Holding Ltd. chose to list in New York, following which Hong Kong said it would look at reforming its listing regime in order to attract more diverse companies. With the rapid rise of neighboring bourses like in Shenzhen, now may be the time to do so. Regulating U.S.-listed Chinese companies Opinion: China's financial markets enter global arena Apple to open China R&D center The company's China challenges have made headlines this year, such as the blocking of its iTunes books and movies services in April as well as a host of IP cases involving smartphone patents and Apple logos on cheap leather wallets. Despite some of its online tech offerings being said to operate in legal grey areas, one lawyer said “regulators have largely tolerated Apple in China because [it] has behaved well and maintains a good reputation and relations with the government.” If Apple is indeed trying to stay on the right side of China leaders, the R&D investment plan will go a long way to help. China question: How do I set up an R&D center? International uproar over China's internet curbs R&D tax breaks ease corporate burdens Circular on Improving the Policy of Pre-tax Super-deduction of Research and Development Expenses Announcement on Issues Relevant to the Policy of the Pre-tax Super-deduction of the Research and Development Expenses of Enterprises Navigating national and cybersecurity risks in China Cybersecurity Law sparks data concern for MNCs CFIUS clears $43B ChemChina-Syngenta deal CFIUS has emerged as a significant risk for Chinese acquisitions—Unisplendour Corp. scrapped a $3.8 billion investment in
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now