US-China trade war part two: banking regulations

Author: John Crabb | Published: 26 Nov 2019

Regulations are impacting deal flow between the US and China as much, if not more, as imposed tariffs. The landscape is very unusual. On the US side is the beefed up multi-agency-led Committee on Foreign Investment in the United States (Cfius), which is throttling Chinese investment into the US. Cfius will be the focus of chapter three of this series.

On the other hand, however, the Chinese government is implementing a number of regulatory reforms designed to attract foreign investment, including from the US. A strange paradox.

Part one of this series, which looks at tariffs, can be found here

Trade friction obviously has an impact on cross-border activities, but when it comes to China, it is important to not focus too narrowly and just look at M&A and initial public offerings. "If you look at it holistically there are risks and opportunities," said Lu Cao, executive director of...