In this three part report, IFLR looks at three separate aspects of the trade war between the US and China; tariffs and their impact on deal flow, banking regulations, and the ever changing face of the Committee on Foreign Investment in the United States .
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 corporate and investment banking at JPMorgan, whose clients are largely north American subsidiaries of multinational corporations from China.
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, CFIUS, which is throttling Chinese investment into the US.
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, which looks at tariffs, can be found here
Part two, on banking regulations, can be found here
Part three, on CFIUS, can be found here
© 2021 Euromoney Institutional Investor PLC. For help please see our FAQs.