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When M&A Encounters Anti-Monopoly Gatekeeper: PRC Anti-Monopoly Enforcement Authority’s Decisions in Three Recent M&A Proposals Triggering Concentration of Operators
The PRC Anti-Monopoly Law has changed the face of mergers and acquisitions in China. Now, parties to a transaction have to provide the PRC’s Anti-Monopoly Enforcement Authority a notification of their transaction for approval and review. The Anti-monopoly Enforcement Agency has used this power to impose conditions on two of the transactions (Coca-Cola’s acquisition of Huiyuan, and Inbev’s acquisition of Anheuser-Busch )that it has reviewed, and it said no on another transaction (Mitsubishi’s acquisition of Lucite). This article reviews the reasons why the conditions were imposed on the two approved transactions and why the other one was prohibited. Furthermore, it discusses possible future actions that the Anti-monopoly Enforcement Agency might take to prevent monopolistic businesses from taking over Chinese markets, and what businesses should consider when they are planning merging or acquiring businesses in the Chinese market.
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The Battle for the Company Seal: Competition for Control between Foreign Private Equity Investors and Management
There are several procedural barriers that foreign investors must cross when they lose control of a Chinese foreign invested enterprise that they have invested in. This article discusses the common loopholes that foreign investors lose control of their enterprises, and how they can regain control. It also provides an overview of how Chinese law allows a Chinese foreign invested enterprise remove directors and senior managers from their positions in companies. Furthermore, it discusses how a Chinese foreign invested enterprise can retrieve its company seal from a terminated legal representative when the representative will not return the seal.
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The Validity of Arbitration Agreements under Chinese Law
In China, arbitration is a popular way for contracting parties to resolve their disputes. However, some entities have been unable to take advantage of this option because they failed to properly create an arbitration clause or agreement that is enforceable under Chinese law. This article describes some of the common mistakes that contracting parties make when they are creating an arbitration clause or agreement, and tips for how parties can be sure that when they do create an arbitration clause or agreement it will be valid and any awards made under it are enforceable.
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Opportunities and Challenges: Tianjin Climate Exchange
As China's environmental problems worsen, efforts to harness the power of market forces to combat the serious challenges of pollution and climate change have risen to the top of the domestic agenda. The establishment of the Tianjin Climate Exchange is a landmark development in China's efforts to establish a framework for its national energy efficiency and pollutant emissions reductions. This article provides an overview of the history, operation and challenges of the TCX project and looks at the broader implications for the Chinese emissions market, the national economic and legal environment, and China's international environmental protection obligations.