Blogs » Society » A Checklist For International (China Too) Acquisitions

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• A Checklist For International (China Too) Acquisitions
• Doing Business In China. Speed Kills.
• Party Official Flips Out After Missing His Flight At Kunming Airpot
• Bo Xilai Apparently Has A Chest-Length Beard, Maybe Like This?
• Chinese Politicians Who Advocate For The Environment Risk Career Setback: Report
• Awesome: South Korea Air Force Parody Of Les Mis, “Les Militaribles”
• Friday Night Musical Outro: Antwon – 3rd World Grrl
• Friday Links: Evangelists in Tibet, David Beckham coming to China (for real this time?), and the Beijinger’s short story contest
• Henan villagers rebuild 1 million graves demolished by officials
• Blarney Stone to Yongkang Lu
• Three Wuhan doctors diagnosed with cancer blame poor hospital radiation controls
• Presented By:
• Pearl River Delta air pollution even worse than Beijing, expert says

A Checklist For International (China Too) Acquisitions Posted: 24 Feb 2013 04:48 AM PST Every lawyer loves a great checklist, particularly those relating to company acquisitions, where checklists are so critical. Adam O. Emmerich, a leading M & A lawyer with super-firm Wachtell Lipton Rosen & Katz, recently wrote a Checklist for Successful Acquisitions in the U.S. for The Harvard Law School Forum on Corporate Governance and Financial Regulation (h/t to International Business Law Advisor). The checklist is meant for foreign companies acquiring U.S. companies, but virtually all of it applies with equal force to foreign companies acquiring Chinese companies.  I particularly liked the last two items on the list, as those two apply with great force to China deals: Due Diligence. Wholesale application of the acquiror's domestic due diligence standards to the target's jurisdiction can cause delay, waste time and resources or result in missing a problem. Due diligence methods must take account of the target jurisdiction's legal regime and, particularly important in a competitive auction situation, local norms. Many due diligence requests are best channeled through legal or financial intermediaries as opposed to being made directly to the target company. Making due diligence requests that appear to the target as particularly unusual or unreasonable (not uncommon in cross-border deals) can easily cause a bidder to lose credibility. Similarly, missing a significant local issue for lack of local knowledge can be highly problematic and costly. Collaboration. Most obstacles to a deal are best addressed in partnership with local players whose interests are aligned with those of the acquiror. If possible, relationships with the target company's management and other local forces should be established well in advance so that political and other concerns can be addressed together, and so that all politicians, regulators and other stakeholders can be approached by the whole group in a consistent, collaborative and cooperative fashion. I recommend you check it out.

Doing Business In China. Speed Kills. Posted: 23 Feb 2013 02:19 PM PST Time – He's waiting in the wings He speaks of senseless things His script is you and me boys. David Bowie, Time Just read a really good/really interesting blog post on Learning Chinese Business, entitled, "Closing Deals in China: A Study in Relativity."  The post is written by Justin Shuttleworth, who is described as having "lived and worked in the Middle Kingdom from 2006 to 2010 as a sale manager for a high-end Western brand."  His post is on the differing conceptions of time as between the West and China and on how that impacts business between the two cultures.  Its "money" paragraph is definitely the following: Therefore, my advice to any Westerner seeking to close a deal in mainland China is as follows: Doing business with the Chinese business community is far more akin to a marathon than a dash. The race can often seem as long and slow as the Yangtze River, but this is what separates the professionals from the amateurs: true champions know how to pace themselves in order to achieve their goals. Justin is saying something we constantly both on this blog and to our clients doing business in China: patience.  Or as I say in one of my speeches, "Chinese companies are more patient than you and they know this and they use it to their advantage in negotiating." For more on this patience deficit, check out the following: Don't Just Be Leaving On That China Jet Plane Managing The China Dragon: Patience As Virtue China Business. Patience As Virtue, Part II.   What are you seeing out there?

Party Official Flips Out After Missing His Flight At Kunming Airpot Posted: 23 Feb 2013 01:28 AM PST We all know the stress of traveling, but how many of us, after missing a flight, would start banging on doors and kicking tables like this guy? How many of us have the power to do so? This man is a CPPCC committee member of Shizong county in Yunnan province, say netizens, identified as Yan Linkun. We're told that airport security is currently investigating the matter. How do we know no punishment will come to Yan? Because the police say they'll deal with this matter "in strict accordance with the law," according to the Youku description.

Bo Xilai Apparently Has A Chest-Length Beard, Maybe Like This? Posted: 22 Feb 2013 11:58 PM PST Not only has the Bo Xilai trial still not happened, but the public hasn't seen him in 11 months. When we do finally glimpse him (though at this point, it might be if, not when), indications are he'll look remarkably different from before. That's because Bo Xilai has a "chest-length beard." Reports Reuters: A second source confirmed that Bo had been on a hunger strike and also said he had refused to shave to protest against what he saw as his unfair treatment. "His beard is long, chest-length," the source said. Oh, right, he's also on a hunger strike and being uncooperative. "He refused to cooperate," the source said. "He wouldn't answer questions and slammed his fist on a table and told them they were not qualified to question him and to go away." But the beard, the beard. We must know: what does Bo Xilai looks like? Better yet, can you guess whose facial hair Bo is wearing in each of the above images? Hint: all but the beard in the top-right panel belong to Americans. We'll update this post with answers on Monday. Happy guessing.

Chinese Politicians Who Advocate For The Environment Risk Career Setback: Report Posted: 22 Feb 2013 10:48 PM PST For years now, people have claimed that being green is profitable. For even longer, however, companies and countries have engaged in greenwashing, the act of deceptively marketing oneself as environmentally friendly to gain public trust and consumer karma. What exactly is the difference between a truly green institution and one that pretends to be? The question is important because when the bottom line is the same, the answer is: it doesn't matter. And that's troubling. We bring this up in light of a recent report that suggests in China, those who focus on environmental issues are not only doomed to fail, but doom their careers. Via WSJ's China blog: Local officials who spend heavily to reduce pollution instead end up reducing their chances for promotion. Those, on the other hand, who spend big on highways and other transportation infrastructure, which may damage the environment but boost GDP, are more likely to get ahead. Of course, this could change. It has to — in much the same way that logic dictates companies must green to remain profitable. We're playing with slightly higher stakes here though: there are many who argue that China needs to clean up if it wants to preserve social stability. Herein lies the conflict. For social stability, the country needs those highways and that infrastructure, too, and to keep people employed. How many truly great projects are there that boost GDP and actively improve the environment? A few — e.g., wind, solar energy, smart cars — but not enough. A mandate must come from the top, but how much GDP growth is the central government willing to sacrifice, knowing a certain amount is necessary to keep its citizens content? For now, this does not bode well: The economists compared the political outcomes of spending on the environment and spending on transportation infrastructure between 2000 and 2009. Higher transportation infrastructure turned into higher GDP – and higher GDP growth brings promotions, they say. Higher environmental investment didn't lead to the necessary jump in GDP. Career-wise, that's a loser. The political outcome also probably reflects a reticence to spend more on green projects. Investment in environmental improvements, as a percentage of total urban infrastructure investment, dropped from 25.4% in 2000 to a low of 19.1% in 2006, before increasing somewhat to 21.3% in 2009. Meanwhile, investment in urban transportation infrastructure, including roads and bridges, jumped from 60.2% of total urban infrastructure investment in 2000 to 72.7% in 2009. In China, Being Green Can Kill Your Career (WSJ)

Awesome: South Korea Air Force Parody Of Les Mis, “Les Militaribles” Posted: 22 Feb 2013 06:00 PM PST You know what's equally impressive as a Peking Opera adaptation of Les Mis? This South Korean adaptation by the ROK Air Force. It's been on the Internet for a little over two weeks now and has more than 4 million views, so there's a good chance you've already seen it. Just in case you haven't though, please watch. Also check out LinkAsia's news story about this, featuring an interview with the director. Russell Crowe, who starred in the recent movie version of Les Mis, gave the South Korean version a thumbs up, apparently. The film cost only $900.

Friday Night Musical Outro: Antwon – 3rd World Grrl Posted: 22 Feb 2013 07:30 AM PST San Jose rapper Antwon – who's weird in all the good ways — may not have the strongest connection with China, but he's our Outro tonight thanks to the above video, shot at The Geisha Club in Shanghai. The song is off his latest mix tape, In Dark Denim, which SPIN describes as "a collection of apocalyptic sex raps." Directed by Alessio Avezzano and produced by Live Circus. (H/T Buzzfeed via Alicia)

Friday Links: Evangelists in Tibet, David Beckham coming to China (for real this time?), and the Beijinger’s short story contest Posted: 22 Feb 2013 04:00 AM PST New kits! Via Wild East Football   Spring Festival officially ends this weekend, sadly. Drink your sadness away with links. Oh, swell. "Proselytising has been illegal in China since 1949, when Mao Zedong declared western missionaries 'spiritual aggressors' and deported them en masse, so today's evangelists work undercover as students, teachers, doctors, and business owners. Moreover, Tibetans are tough customers in the market for souls – Buddhism is central to their cultural identity, making them notoriously difficult to convert. // Despite all that, experts say that changing economic circumstances could make foreign Christians more influential in Tibetan society now than at any point in history." (Guardian) Meanwhile, double immolation. "Two Tibetan teenagers have died after staging self-immolation protests in China's Sichuan province, highlighting the human rights plight of the new generation of Tibetans born under Chinese rule, sources inside Tibet and exile leaders said Wednesday." (RFA) Mandiant as "digital Blackwater"? "Mandiant, which took in some $100 million in business last year — up 60 percent from the year before — is part of a lucrative and exploding market that goes beyond antivirus software and firewalls. These 'digital forensics' outfits can tell a business whether its systems have been breached and — if the company pays extra — who attacked it." (AP) Netizens on the case. "Since then, netizens have continued to point out evidence from across the Chinese Internet–including thisXinhua article from August 2008 [zh] that states PLA Unit 61398 specifically installed flooring for use in high-security environments." (China Digital Times) Everyone gets hacked. "Either way, let's all try not to jump to the conclusion that it was China the next time you hear a hacking story. Or, if you do jump to a conclusion, at least try not to print it in The Atlanticbefore it has actually been confirmed." (Charlie Custer, Tech in Asia) David Beckham to China rumors again. "A senior executive in the Chinese Football Association (CFA) has told Xinhua that perennial football gossip magnet David Beckham is likely to become the 'international ambassador' for the upcoming 2013 Chinese Super League (CSL)." (Shanghaiist) What's going on here? "It's reminiscent, perhaps, of the trials of people accused of Nazi-era crimes, a John Demjanjuk, or a Samuel K.: in China this week, a man was tried for murdering a doctor during the Cultural Revolution, the China News Service reported." (Rendezvous, NYT) Cancer villages. "The admission by China's Environment ministry came in a five-year plan on tackling pollution. // 'In recent years, toxic and hazardous chemical pollution has caused many environmental disasters, cutting off drinking water supplies, and even leading to severe health and social problems such as "cancer villages"' the document says." (The Telegraph) I thought it was two flies? "Chinese Health Ministry is planning to improve the hygiene standards of China's public toilets – it even intends to restrict the number of flies in them. Under the new requirements, no more than three flies will be allowed per square metre in each toilet." (SCMP) Beijing travel video set to music interlude: Finally… "A 4.8-magnitude quake jolted Heyuan city in southern Guangdong Province at 11:34 a.m." (Xinhua) Short story contest! (The Beijinger) Xi Jinping's first 100 days. (China Digital Times) Weird monuments in China. (io9) 23 million Chinese escape poverty in 2012. (Xinhua) Finally, finally… This doesn't look safe, via The Nanfang

Henan villagers rebuild 1 million graves demolished by officials Posted: 22 Feb 2013 11:30 PM PST An estimated one million tombs have been rebuilt after being demolished last year in a controversial land reclamation campaign, the South China Morning Post reports. [ more › ]

Blarney Stone to Yongkang Lu Posted: 22 Feb 2013 10:22 PM PST Date: Feb 23rd 2013 2:18p.m. Contributed by: geofferson

Three Wuhan doctors diagnosed with cancer blame poor hospital radiation controls Posted: 22 Feb 2013 09:00 PM PST Three female doctors working at Wuhan Union Hospital in Hubei province were diagnosed with thyroid carcinoma this year. They released a statement Monday accusing the hospital of lacking proper controls on radiation, and protection for doctors and staff. They said they have suffered both physically and mentally from exposure to radiation. [ more › ]

Presented By: Posted: 22 Feb 2013 09:00 PM PST

Pearl River Delta air pollution even worse than Beijing, expert says Posted: 22 Feb 2013 07:30 PM PST The air pollution in the Pearl River Delta (PRD) is more harmful to residents' health than Beijing's due to the higher level of nitrogenous organic compounds, Hong Kong website House News reported Thursday. [ more › ]

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