On 30 December 2020, the EU and China reached an agreement “in principle” for a new EU-China Comprehensive Agreement on Investment (“CAI”) (see our previous update here). The CAI concludes seven years of investment negotiations, that begun in October 2013, and is expected to come into force later this year. In its press release (see here), the EU stated that the CAI was the “most ambitious agreement that China has ever concluded with a third…
Recent media reports indicate that the EU and China are making progress in long-running negotiations towards a deal to remove barriers to foreign investment. Agreement may potentially be reached by the end of 2020, after seven years of often difficult talks. Negotiations regarding an EU-China investment agreement initially kicked off in 2013. The aim of the agreement is to provide certainty, protection and predictable market access for EU and China investors, with the key sticking…
The New Zealand government has announced that it is retaining the temporary emergency notification regime in the Overseas Investment Act 2005 (the OIA) for another 90 days. While New Zealand is free of Covid-19 in the community, it was no surprise that the ministers concluded that the ongoing economic effects of the COVID-19 pandemic justify the notification regime continuing. The next review of the temporary regime is due by 24 February 2021. Since 16 June…
On 6 November 2020, the UK Government launched a website (see here) designed as a guide for digital and tech firms doing business in China. The guidance explains that the UK and China can develop new technology to tackle climate change for example, create new jobs and rebalance the British economy and includes case studies showing the scale of opportunities linked to China’s growing economy. However, it also seeks to raise awareness of what the…
In brief Earlier last week, Sheikh Khalifa bin Zayed Al Nahyan, President of the United Arab Emirates (UAE), issued a decree introducing a number of fundamental changes to the UAE Commercial Companies Law (CCL Amendment) and to the UAE’s approach towards foreign direct investment (FDI) in general. The CCL Amendment adopted a new general rule of, in principle, allowing foreign investors to fully own certain types of companies in the mainland of the UAE. The current…
On November 13, 2020, the Trump Administration issued Executive Order 13959, “Addressing the Threat from Securities Investments that Finance Communist Chinese Military Companies” (the “China Securities EO”), which aims to prevent US investors from financing the development of the People’s Republic of China’s military, intelligence, and security capabilities by prohibiting purchases of securities of certain “Communist Chinese military companies.” This development builds on US Government concerns over China’s civil/military fusion and access to US capital…
With global foreign investment scrutiny on the rise, not least in the current COVID-19 environment, obtaining concise, accessible advice has never been more important. Enter Baker McKenzie’s bespoke Foreign Investment Review Evaluation (FIRE) tool. FIRE is a Baker McKenzie analysis platform that answers 51 detailed questions on foreign investment review regimes across 26 key jurisdictions. It is updated in real time and provides depth and legal certainty for companies. FIRE is an automated database. Users…
From 13 to 17 October 2020, the 22nd Session of the Standing Committee of the 13th National People’s Congress (“NPC”) deliberated on the third review draft (草案三次审议稿) of China’s Export Control Law (“ECL”) before its final passage into law on 17 October 2020. The ECL will come into effect on 1 December 2020. This is the first comprehensive and consolidated export control law in China. Prior to the law’s enactment, export controls were imposed via…
Overview The COVID-19 crisis, and resulting increased global demand for medical equipment and supplies, has shone a light on the fragility of many critical supply chains. This has led to a broad strengthening of foreign investment review (“FIR”) rules, as countries seek to safeguard such critical supply chains against perceived hostile foreign takeovers, resulting in increased regulatory hurdles for companies in strategically important sectors. In-depth National FIR rules allow governments to review and potentially to…