Outbound Investment

In 2024, the U.S. continued placing wide-ranging restrictions on Chinese interests. What made that year different was the impact those restrictions have on third countries. Charles Wu of Clyde & Co reviews the legislative changes, and offers practical insights into their potential impact with a focus on third countries, and the path forward in 2025

U.S. attempts to exclude Chinese access to AI chips by designating ‘gatekeeper’ companies; Shein’s UK IPO application scrutinized over forced labor concerns; and China’s AI Standards Committee to include executives from tech giants

While companies from third countries do not necessarily need to divest from China to invest in the U.S., they should be prepared for CFIUS scrutiny of their China operations

EU to ban products and components involved in forced labor; EU plans to require tech transfers for Chinese companies to obtain subsidies; and Shanghai court’s opinion allows Chinese individuals to own cryptocurrency

Pilot project allows Tesla and HSBC to independently operate data centers in China; WeRide's lead legal adviser comments on overseas IPOs; and Austria's Starlinger settles patent infringement case with Chinese machine manufacturers.

Calvin Klein parent PVH investigated by Chinese government after pulling out of Xinjiang; Chinese biotech firms targeted by U.S. BIOSECURE Act seek to sell U.S. subsidiaries; and China promises to protect private business while maintaining the existing economic order is still important.

Geopolitical tensions, tightening foreign investment restrictions, and a poorly performing Chinese economy are some of the challenges facing private equity investors trying to exit their investments. Whilst the preferred exit method depends on the transaction itself, there are ways to minimize the general risks of exit methods

China will implement new cybersecurity rules that include stricter consent requirements and also expand cross-border data exemptions; A Beijing court rules that consent is not required for presenting lawfully collected personal information in court; and China is increasingly exporting its technology, engineering, supply chain, and financing capacity.

Bayer successfully files for the first cross-border data transfer in Beijing Free Trade Zone; Yuanbao plans to list on Nasdaq after some Chinese IPO successes, but setbacks also exist; and China's environmental regulator merges approval procedures to encourage private business