More haste, less speed: the secret to investing in China

Author: | Published: 1 Jan 2000

Ariel L Ye and Stuart Valentine of Clifford Chance, Hong Kong, suggest ways of preveting cooperative investments from turning into commercial nightmares.

Despite the recent slowdown in the pace of new foreign investment in China, international companies still view it as a market of strategic importance, and continue to acquire new Chinese businesses or to restructure and expand their operations there. This trend is likely to accelerate as new opportunities for foreign investors emerge as part of China's continuing reform of its state-owned enterprises through restructurings and public offerings of securities, and foreign companies position themselves for China's accession to the WTO.

At the same time, however, the number of disputes between Chinese and foreign investors has never been higher, and the cries for help to resolve intractable problems between the investors in Chinese joint ventures is getting louder and louder. It is no coincidence that China's international economic and trade arbitration commission is now...