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China's rapid economic growth and accompanying policy reforms have created many new commercial opportunities. As previous restrictions on foreign investment have been eased, they are being replaced with legal and regulatory frameworks that encourage investment so that the PRC can compete effectively with other countries in the Asia-Pacific region. This progress accelerated in preparation for China's accession to WTO, and has continued in the period following accession.

Although many international companies successfully participate in China's economy, new investors need to be aware that certain fundamental economic, political and social challenges remain. These challenges are unique to the Chinese environment and, despite increasing integration into the world economy, will likely cause occasional downturns in an otherwise upward trend. Companies that are committed to long-term participation in China and have developed a solid investment structure, however, will enjoy significant opportunities from investment in the PRC.

Morrison & Foerster has developed a Guide which is designed to provide a brief introduction to the principle forms of direct investment available to foreign companies in the PRC as well as the commercial and regulatory considerations that affect the structuring of such vehicles.

Morrison & Foerster's provides business, strategic and regulatory advice with regard to business ventures in the PRC. For many of our clients, this work includes assistance in the structuring and establishment of regional investment structures, PRC investment vehicles, financings and related transactions such as technology transfer and IP licensing. We have assisted in the successful completion of numerous projects, taking our clients from feasibility studies through negotiation and on to implementation and operation. To learn more about our services in China, please contact Charles Comey in Shanghai or Steven Toronto in Beijing.

Please note that this Guide is not meant to be comprehensive nor offer professional advice. Investors contemplating establishing operations in China should seek appropriate legal advice.