International creditors continue to face significant challenges when monetizing claims against debtors based in the People's Republic of China.
Actions such as a standalone freezing injunction can be used in English common law jurisdictions to freeze assets that are held by innocent third parties.
Injunctions and receiverships can be made without giving notice to the debtor, bestowing the "element of surprise."
Rising cyber security breaches place global companies at risk.
The New York State Department of Financial Services (NYDFS) recently imposed new regulations requiring companies to certify compliance with their cybersecurity programs by February 15 of every year.
To prevent a breach, noncompliance or litigation, Chinese companies with U.S.-incorporated subsidies ought to ensure their programs comply with these new regulations.
The U.S. government has made its intentions clear that it will investigate and prosecute PRC-based companies and individuals that it believes employ illegal tactics to compete with U.S. companies in key sectors.
Future U.S. actions could come from any number of directions.
Whatever action comes next, a cross-border perspective and willingness to represent PRC-side clients against the U.S. government will be essential to an effective response.
In recent history, investments originating from China have accounted for nearly a quarter of CFIUS reviews, with investments from the UK, Japan, Hong Kong, Israel and South Korea also among the most reviewed.
The U.S. has indicated it intends to more aggressively review and regulate foreign investment in industries that may implicate national security via the Committee on Foreign Investment in the United States (CFIUS), an interagency committee headed by the U.S. Department of Treasury.
While CFIUS is largely a voluntary regime, it is important for foreign investors to consider the potential implications of an investment in, or the purchase of, a U.S. company.
