China Questions

Foreign investors can be caught out by China's registered capital or reserve fund requirements. Where an investment with funding primarily obtained from outside mainland China produces cash investment returns, the onshore structure may restrict the amount of cash that can be remitted out of the country

For inbound investors, navigating the maze of available structures can be tricky. The development of the PRC Anti-monopoly Law has led to more scrutiny of acquisitions of Chinese companies, causing potential foreign investors to look at other ways of investing in the country; Danone's experience with Wahaha has in turn revealed potential pitfalls for joint ventures