The United States and its allies continue to use sanctions to attack adversarial governments and their perceived allies, putting companies and individuals with tenuous or merely alleged ties at risk.
Recent sanctions have targeted Russia, but PRC companies were designated in the February 2024 round, signaling increasing risk to PRC individuals and business if China-U.S. relations deteriorate.
At-risk individuals and business should take proactive steps to prepare.
Unfavorable economic conditions in China are putting many offshore companies in distress.
In a worst-case scenario, joint venture partners and private credit lenders may have to attempt to take over onshore projects, companies and assets.
A new Chinese company law coming into effect on July 2024 could smoot this path to recover – including by making it easier to replace legal representatives.
Brazil is seeking more investment from China, with almost half of China’s investments in South America being in Brazil.
However, the recent wave of insolvencies in Brazil could threaten these investments, particularly if fraud is uncovered, leaving investors to navigate the complex Brazilian insolvency landscape.
By undertaking a more assertive, multijurisdictional approach, combined with new insolvency tools in Brazil, investors can seek to gain the upper hand.
Investments from the Middle East into Mainland China are growing recently as many see increasing opportunities for returns.
However, there are risks that may materialize if investors become embroiled in a global dispute with Chinese companies.
Investors should consider ways to increase their leverage and expand their options, including by bringing disputes directly into China through Hong Kong.
Many Chinese debt issuers are still undergoing a wave of defaults, putting offshore general unsecured creditors at risk.
One way to secure substantial recovery is to enforce keepwell agreements, promises by a PRC onshore parent company to maintain a debt issuer’s liquidity and solvency.
This can expand the range of enforcement targets, increasing creditors’ options and chances of success.
The U.S., UK and their allies are continuing to find tools to exert pressure on China.
Businesspeople in Greater China with global interests could become targets of financial sanctions if diplomatic relations between China and the U.S. deteriorate further.
We explain how financial and wealth advisors can mitigate the risks these clients face if they act early and decisively.
More Chinese companies are entering the Korean market, running head-on into family-owned conglomerates known as chaebols.
In a dispute, the overwhelming dominance of chaebols and the intricacies of the Korea legal market make it hard for Chinese companies to find a way out.
However, by combining creative legal and PR strategies, Chinese companies can put pressure on their competitors and protect their business interests.
In Chapter 11 bankruptcy cases where the chances of recovery seem slim, global unsecured creditors may have to get creative and look outside the U.S. to improve their prospects.
Assets in the People’s Republic of China (PRC) – the world’s second largest economy – offers a surprising source of asset recovery opportunities.
We explain how creditors can unlock value in China and maximize their recovery.
As geopolitical tensions heighten, Chinese ultra-high-net-worth individuals may become increasingly at risk of becoming the target of forfeiture by hostile foreign governments.
Governments around the world have shown increasing willingness to go after assets owned by those in disfavored jurisdictions.
By deploying a coordinated global strategy, Chinese UHNWIs can lawfully defend their legitimately earned wealth.
A Chinese court recently recognized a commercial judgment issued by the English High Court in a landmark judgment.
China has also made it easier for Hong Kong arbitrations to be recognized and enforced in China, as well as opening the door to interim measures.
Our Claim Monetization team analyzes what these developments mean to foreign judgment and award creditors looking for opportunities in a historically tricky jurisdiction.
Offshore bondholders of distressed Chinese real estate companies often lack leverage in restructuring negotiations, with those companies’ assets located mostly in China.
China Evergrande Group is just one of the many Chinese real estate companies teetering on default, with wide-ranging consequences.
However, by taking deploying creative strategies and taking positions against competing stakeholders, activist bondholders can carve out a direct path to monetization.
In light of the ongoing PRC-U.S. trade dispute, Chinese companies are more likely to face charges in U.S. courts against civil claims of trade secret theft.
Civil trade secret misappropriation cases in U.S. courts can be particularly complex and high-stakes for Chinese companies on the defensive end of cross-border disputes.
Chinese companies, their executives and legal representatives should familiarize themselves with U.S. IP protection standards in the face of pending cross-border litigation.
For those considering investing in projects tied to China’s Belt and Road Initiative (BRI), corruption and bribery are major areas of concern.
In the event of fraud or misconduct allegations, parties and their counsel will need to understand and anticipate how global anti-corruption enforcers might approach such investigations.
Carrying out a series of “stress tests” or appointing an independent third-party examiner are two examples of proactive measures companies can take to mitigate the risk of being on the wrong end of an anti-corruption investigation.
Chinese businesses tend to favor offshore jurisdictions for setting up joint venture (JV) structures, but deadlock can ensue if partners differ into a dispute.
A litany of offshore legal tools exists, from provisions in the JV's constitutional documents to the appoint of a receiver to restore control to the wronged party.
However, the process for deploying these options differ based on each jurisdiction, and it is advisable to seek counsel before acting on any strategy.
