Doing your China due diligence

March 11, 2010 | BY

clpstaff &clp articles

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

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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.