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Doing your China due diligence

Conducting thorough due diligence is essential in China, but there are decisions to make about the proper priorities as well as the best processes to choose

Issue: March 2010

Keywords (click to search): due diligence

I know I need to conduct some due diligence in China before entering into any definitive agreements, but I’m worried this will take a long time, and I’m not sure how much information I’ll be able to get. Should I carry out independent investigations as well as doing the normal financial and legal due diligence? Is there anything else I should bear in mind that is specific to China?

What should I watch out for when doing my China due diligence?



The international perspective

While each matter is different, some key elements of due diligence in China include: ensuring the Chinese party is well advised, independently verifying what you are told, proceeding with standard information requests and speaking with management.

If the Chinese company is small or inexperienced at dealing with foreign counterparties, they may fail to provide sufficient information because they do not know what is...

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