Cutting your losses when restructuring China operations

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clpstaff &clp articles

Foreign companies are contemplating how to restructure their loss-making or low-profit China operations. There are several good options available, and several unwise choices, too. By Ghislain de Mareuil and Julie Tong, DLA Piper, Shanghai.

Although restructurings often involve mergers and acquisitions (for example, selling out the struggling business or combining it with another company), this article will not address those specific and wide-ranging options but will concentrate on other issues related to restructuring and closing down, from a strategic level.


When a China-incorporated foreign-invested company is loss-making or insufficiently profitable, several options are available to it, including downsizing or closing down. There are also specifics to consider when the company to be restructured is part of a larger group.

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