With the economic downturn hitting Asia hard, a significant number of foreign investors in China have simply closed their factories and vanished, leaving unpaid workers, unpaid social insurance, unpaid taxes and worried local and national officials.
Chasing foreign investors who abandon Chinese ventures
Foreign investors are abandoning their Chinese ventures prompting the issuance of new government guidelines. These raise the possibility of the use of cross-border legal and political action to force absconders to face liability in China. Although the implications are not completely clear, foreign parties must take care when attempting to withdraw from the country. By Susan Finder, Winston & Strawn.
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