New Rule on foreign company backed M&A; in China

A new Chinese law that would come into effect on 12 April 2003, will allow foreign companies to acquire or merge Chinese companies with themselves, of course, subject to certain conditions. 

The government will also seek foreign funds to transform state enterprises. It may be recalled that a lot of foreign JVs in the telecom services sector under the FCC (foreign-China-China) fashion has drawn the government's wrath sometimes back. The companies had to back out. 

Shyamanuja Das in China