Reviews of Chinese Investments in Europe and Australia

March 13, 2023 | BY

Susan Mok

In one of a series of feature articles, Nathan Bush, Alistair White, Juliette Ginsberg, James Stewart and Richard Sterneberg of DLA Piper look at the varying and sometimes complex network of mechanisms which Chinese outbound investors face across Europe and Australia, as well as their effects on China onshore M&As

Summary

|
  • Chinese outbound investment is increasing, but so are the number of regulations and reviews in destination jurisdictions
  • In the EU, there is no central authority to review inbound investment
  • A new EU regulation has created a framework for coordinating investment screening among Member States, but other divergences create complications depending on the target jurisdiction
  • In Australia the Foreign Investment Review Board has been given teeth
  • Particular attention should be paid to whether an Australian target could be classified as a 'national security businesses'
  • Both EU and Australian FDI reviews may affect China onshore M&As

Chinese outbound investors face a growing gauntlet of Foreign Direct Investment ("FDI") reviews extending beyond their targets' home jurisdictions—the sites of incorporation, headquarters, or principal operations of the immediate investment target—to indirectly impacted jurisdictions (such as export markets, locations of subsidiaries or branches, or sites of securities listings).

The European Union

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]