1. Mergers and Acquisitions in China
1.1. Mergers
Chinese law does not allow mergers between foreign enterprises and Chinese enterprises. Cross-border mergers are therefore not permitted under Chinese law.
Mergers between FIEs are subject to the Regulations of the Ministry of Foreign Trade and Economic Cooperation1 and the SAIC on Merger and Division of Foreign Invested Enterprises (Merger Regulation), which also applies mutatis mutandis to mergers between FIEs and domestic enterprises.
1.1.1. Restrictions
In order to be party to a merger, an FIE must have its registered capital fully paid up. If the merger involves an FIE and a domestic enterprise, the following requirements must be met:
− The domestic enterprise ...
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