Monthly Archives: September 2013

Shanghai Free-Trade Zone: so what does it mean for foreign investors?

The ambitious Shanghai Free-Trade Zone or SFTZ is the first free trade zone in mainland China. Xi Jinping’s careful and deliberate plans for economic reform has been hailed by some analysts as the Chinese government’s most liberalized plan for economic reform in more than a decade. By selecting a nearly 29 square-kilometer (11 square-miles) area of docks, hangars and warehouses for the commercial zone, Chinese authorities now have a controlled space in which to experiment with loosened trade regulations on everything from interest rates to foreign investment initiatives.

Title: Post-Acquisition Issues To Manage Employee’s Expectations

Despite current economic challenges, foreign mergers and/or acquisitions (M&A) of businesses in mainland China are on-going and can present great opportunities for a foreign company/business owner. Such M&A usually occur because the foreign party:

wishes to benefit from cost advantages in terms of talent or raw materials;
wants to gain a first mover advantage in a country that is becoming wealthier, and thus purchasing imported goods and services; and
sees opportunities in the 12th Five Year Plan of the People’s Republic of China (PRC), particularly with the plan’s focus on domestic consumption and clean tech industries.