Acquisitions are a form of foreign direct investments (FDI) in China and can
be divided into asset and equity acquisitions. Both, equity and asset acquisitions,
can be conducted through a direct acquisition mode, meaning that the
actual transaction takes place inside China. Also, equity acquisitions can be
carried out indirectly through the purchase of an offshore company, holding
a Chinese foreign invested enterprise (FIE). In this way, the actual transaction
takes place outside China.
By acquiring an enterprise in China, the legal natures of the target as well as
the industrial sector plays...