EAGAN, Minn., 4/22/2009 - The People's Republic of China is now the world's third-largest economy and the recipient of more foreign investment each year than any other country, yet its business laws and the practice of deal-making have long been a source of confusion or mystery.
West, part of Thomson Reuters, is releasing two books that provide relevant information for doing business in China: Mergers and Acquisitions in China and Shareholder Agreements and Joint Ventures in China.
Mergers and Acquisitions in China examines steps involved in acquiring a business in China, including the antitrust, tax and labor laws that affect M&A deals. The book provides practice-oriented examples and case studies to illustrate legal principles to address this fast- changing and challenging environment.
Shareholder Agreements and Joint Ventures in China deals with the legal framework and structuring of a joint venture in China, focusing on both the more traditional forms of joint ventures and the more recent use of shareholder agreements when acquiring shares in an existing company.
Nee believes the failure of many joint ventures is linked to basic misunderstandings of the deal-making process, which too often occur because the investor or its counsel fail to study the applicable legal ground rules.
"I think the principal reason for failure is that often the mistakes are made right at the beginning of the negotiations of a joint venture in China. The foreign side is quite unfamiliar with what the rules of the game are," says Nee. "When the Chinese talk about a joint venture, they mean something that is quite different than what an American lawyer or what an American business has in mind - to use the Chinese phrase, 'sleeping in the same bed but dreaming different dreams' - and this leads to problems down the road."
Headquartered in Eagan, Minn., West is the foremost provider of integrated information solutions, software and services to the U.S. legal market. West is part of Thomson Reuters. For more information, please visit the West Web site at west.thomson.com.
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