China: Addressing the business environment in China
China, a fast developing country with potentially one of the largest economies in the world, has proved to be a magnet for foreign investment despite the legal issues inherent in operating in Beijing. Eu Jin Chua, Bryan Dunn and George Kleinfeld look at what investors' home governments can do to establish a level playing field
Like a powerful magnet, China continues to attract huge investment flows from Japan, the US and Europe. But legal problems with local partners and government regulators have served to dim the attraction of the Chinese market for many foreign investors. The lesson is not to avoid China, but rather to enter with eyes wide open to the different attitudes and expectations of local market participants, and develop appropriate legal strategies for coping with these differences. A new wave of treaty negotiations involving China provides cause for optimism by foreign investors who can position themselves to take maximum advantage.
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