PODCAST: Why the issues obstructing Chinese investment in US are here to stay

From capital controls and CFIUS to the intensifying trade war, Chinese investors trying to invest in the US are encountering many hurdles. David Blumenfeld and Paul Guan of the law firm Paul Hastings discuss these hurdles with PERE's Arshiya Khullar.


Subscribe to Spotlight on: iTunes | Stitcher | Podbean | RSS  

It was more than two years back that Chinese regulators first imposed restrictions on capital outflows. Since then, not only have these controls intensified in scope, but other issues like the expanding purview of the CFIUS regulations under President Donald Trump’s administration, and the relentless trade war between the two countries, have significantly reduced Chinese investment into US real estate and other industries.

PERE sat down with David Blumenfeld and Paul Guan, partners at law firm Paul Hastings to discuss how Chinese cross-border deals into the US are being structured, given this triple whammy of issues. Both lawyers, who have advised on several Chinese outbound deals, say it takes at least two months for Beijing regulators to approve Chinese cross-border deals of a significant size and in sensitive sectors, including real estate. They also say nowadays they almost always initiate a CFIUS discussion with their clients before closing a deal.

In this 25-minute podcast, PERE‘s Arshiya Khullar hears how US managers have altered their transacting approach in terms of firming up due-diligence and making contingency plans in light of these macro-challenges, and if these geopolitically uncertain times have in fact made them wary of partnering with Chinese institutions entirely.

Â