Insure against the risks of investing in China

A recent survey by the Financial Times revealed that China has now supplanted the USA as the most attractive destination for foreign direct investment. While there remain some concerns about investing in China, insurance is available for companies investing in China to protect against the following risks:

• confiscation, expropriation, nationalisation, deprivation of assets (permanent e.g. equity or buildings and mobile e.g. plant, equipment, stocks) or other investments;
• strikes, riots, civil commotion or political violence (including terrorism) causing physical damage to fixed or mobile assets;
• exchange controls imposed by the PRC Government (as seen in Argentina recently) or currency inconvertibility problems imposing remittance restrictions on outcoming dividends or other payments, including loan repayments;
• licence cancellation by the PRC Government, or the imposition of embargos which prevent exports and imports;
• contract frustration to protect against the payment/credit risk on clients' export contracts with Government buyers, or import contracts against the delivery or performance risk on those contracts due to, amongst other reasons, the imposition of export/import embargoes;
• unfair calling of performance bonds or other contract bonds.

To read more about doing business in China, please visit our Doing Business in China Toolkit on the site under www.law-now.com.hk

If you require further information on the opportunities China presents, or would like to speak to us about assisting you with your plans in China, please contact Luke Filei on +86 21 628 96363 or via email at [email protected].