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April 2006 Highlights of a PricewaterhouseCoopers Transaction Services Forum in 2005
"In China, we always have a saying, 'Everything is negotiable.'" These words, spoken by our partner, Benjamin Ye at a forum for U.S. companies interested in China, should give pause to any corporate dealmaker about to make a major move into that exploding market. In a country where "everything is negotiable," anything can change.
And change is rampant in China. As everyone knows, the economy is booming, and that alone fosters tremendous change. In addition, the nation's stock market is undergoing a major reform that will affect the ownership structure of 1,300 companies. Regulations governing foreign exchange payments to offshore holding companies have recently been revamped, as have those governing management buyouts. The nation's tax structure is due for a major overhaul in the next several years. Membership in the World Trade Organization is opening previously restricted industries to outside investors. The country is governed by a matrix of national, provincial and local authorities, often in competition with one another.
The implications of all these factors and more were discussed at the forum, held in New York in the fall of 2005 by our Transaction Services practice.
In this issue, we'll look at the following topics:
- Investing in China's next wave: the basic data;
- Overview: too many opportunities, too little information;
- Recent regulatory changes have restored investor confidence;
- Protecting intellectual property; new strategies needed;
- Understanding tax implications vital to deal success; and
- Chinese investment abroad accelerates.
Understanding China and the enormous opportunities it offers is a job that requires the full concentration of a wide range of specialists. Our US Transaction Services group works with our Transactions team in China to provide services throughout the whole deal process, from the strategic deal planning phase to assistance with deal execution, integration, and divestitures, as well as assistance with raising capital.
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Read more by downloading our Investing in China's next wave: finding opportunities, building value (pdf file, 1.1MB) for your reference. |
