JXD lawyers have actively participated in foreign investment activities. They have long term practice experience in this field and have helped to greatly accelerate the localization of our multinational clients. JXD has helped many clients set up Sino-foreign joint ventures, Sino-foreign cooperative enterprises, wholly foreign-owned enterprises and branch operations in China by offering comprehensive legal services and assisting in comprehension of Chinese law, investment risk avoidance and attainment of investment targets. Relying on their rich experience in this field, our lawyers are capable of offering the best solutions project-specific legal problems.

JXD’s foreign direct investment team offers client services, including, but not limited to:

		legal advice, strategic planning and due diligence for determining the most suitable foreign investment structure
		services related to the organization and setup of various foreign investment legal entities, including
		drafting and revising project application forms, feasibility study reports, technology licensing agreements, joint venture contracts, articles of association, and other company formation documents
		providing advice and assisting on procedures related to the government approval and registration process
		follow-on legal services for the ongoing operations of foreign invested enterprises
		commercial investigation of cooperation partners
		customs procedures, equipment and product import and export regulations, foreign exchange and commodity examination
		exit strategy
		Investment exit is also a form of capital operation activity and thus requires capital operation means. Generally, the exit strategy of an enterprise is realized through the flow of property rights. Strategic exit mainly occurs through the following routes: 1. Public offering. Public offering is the best route for investment exit, offering the benefits of low cost and high added value. The company should make full use of the value discovery function of the securities markets and take the invested company public in domestic or overseas securities markets directly or after spinning off. 2. Outright sale. In contrast to a public offering, an outright sale can result in the immediate return of cash or negotiable securities. The parent company can at once exit from the invested company and quickly take out its cash or negotiable securities as distributed profit. Outright sale also has the same effect as a common takeover for the acquiring party. However, an outright sale may result in a lower PE ratio making it more difficult for the seller to obtain a premium price for the company. 3. Exit after system reform and reorganization. It refers to exit through transfer of assets and shares, or sale, after the invested company changes its structure and reorganizes into a stock cooperative enterprise, joint-stock company or a listed company, for example: agreements to transfer shares to other shareholders of the invested company; agreements to transfer and sell to another strategic investor; and, transfer through a technology property right exchange. 4. Share repurchase. If the invested company is a listed company, investors can partially or totally recover capital investment through sale of shares back to the company. When dealing in ordinary shares, a seller’s option contract with the invested company can be used to sell shares back to the invested company. When dealing in preferred shares, mandatory repurchase clauses can be used. 5. Trust management. The trust management company manages the trusted company through a paid service contract after negotiation with the enterprise owner to maintain and add value to the trusted assets. Use of a trust vehicle enables the enterprise manager to separate from the enterprise and become an independent beneficial body.  In fact, it is an indirect way to exit. 6. Company’s internal merger and transfer. This is very widely used in holding companies and enterprise groups. If it has an associated listed company, the unlisted business can be merged into to the listed company to exit. Alternatively, bad assets can be peeled off from an affiliated enterprise and be consumed and given life through its affiliates or parent company. 7. Closing down, bankruptcy, liquidation. Once the enterprise is certain that the invested project has failed or grown too slowly and the anticipated return will not be realized, exit should be resolutely undertaken. In the event the invested project cannot be exited through other routes and is not worth maintaining, the project should also be closed or dissolved through an orderly process.
		management buy-out
		various legal matters in company’s reorganization, dissolution and liquidation