China Reverse Mergers

China Reverse Mergers: Good Luck with That

The big story in the China business/legal community this week is the back and forth between Muddy Waters and Sino-Forest (see here).I will reserve my comments on the specific situation until things develop further, but I will add my two-cents about something called a “Reverse Merger” or “RTO,” the corporate structure at the center of

Best books on China

The Best Books on China

About a week ago, I did an article, The Five+ Best Books for Understanding China  [link no longer exists]. The article was a public response to a  request that I reveal “3-5 good books to read to understand China that are contemporary, but also something providing some historical perspective to current doings.” I listed the

eating dog in China

Eating Dogs in China

Earlier this year, I was on a slow highway on the outskirts of Hanoi when my daughters said something like “look at those dogs being prepared for eating. Eewww.” Without looking, (and thinking they were referring to live dogs in cages) I tried to put the best spin on things for my 13-year old by

China ready International lawyers

Publicly Traded Chinese Companies are Risky as Hell

Muddy Waters is a hedge fund company that targets dodgy US-listed Chinese companies, shorts them, and then documents the fraud in which those Chinese companies engage. Muddy Waters has an impressive list of Chinese companies it has exposed, including China Media Express, Duoyuan Water and RINO International. These companies appear to have two things in

100 chinese yuan bill

China as Currency Manipulator: Why Can’t We All Just Get Along?

I just read an article by Shaun Rein, entitled, “Why A Fast Appreciating Yuan Won’t Help US Economy,” and I have bones to pick with it. Let me start out by saying that I “talk China” pretty much every day and I have never spoken with anyone who believes all of the United States’ economic

Sexism in China

How China Sexism Benefits Foreign Companies

Had an interesting discussion the other day with two international entrepreneur clients on global prejudices. Both told me of how they “take advantage” of it by hiring women, racial and ethnic minorities, and persons with disabilities in countries where other businesses are reluctant to hire these people. And let’s face it, these prejudices exist, at

China future business

Rare Earths and Polysilicon: Does China Control Our Green Future?

China is virtually the sole supplier of rare earths to the world and it is heading towards that same position for polysilicon. The reasons are almost exclusively related to the peculiar way primary industry operates in China. What is occurring is an exchange with few benefits to either side. There are two areas of dispute

international compliance lawyers

China Guanxi: You Ain’t Got It

David Wolf at The Silicon Hutong blog just came out with a superb post riffing on the meaning of guanxi. The post A Few Notes on Guanxi [Link no longer exists] more accurately and concisely defines guanxi than anything I’ve seen. It is so good and so important, I feel I have no choice but

China versus Vietnam and Thailand for foreign investment

China is a Good Place for Foreign Companies

Our clients are always talking about where to invest in Asia, even more so in light of recent concerns about China no longer being a preferred destination for foreign investment. I have argued consistently that China is one of the best places for foreign investment in Asia. The World Economic Forum’s most recent Global Competitiveness