CHINA Law and Practice Contributed by: Jeff Liu, Jeanette Wang, Yulong Lai and Yun Bi, Shihui Partners
11. Outlook and Practical Guidance 11.1 Expected Legislative, Policy and Enforcement Developments One area which will be interesting to watch this year is how Chinese authorities will treat mergers and acquisitions in the technology, semiconductor and data space, especially those involving AI-related busi - nesses and where the acquirer is a foreign company given concerns over market concentration, control of critical technologies and data security. One additional emerging regulatory concern may be the evolving impact of export control restrictions (technology, critical natural resources, etc) on China- related M&A. Chinese authorities are increasingly con - cerned about the development of key technologies in China, including control of such technologies and resources as well as supporting domestic enterprises. 11.2 Practical Tips for Deal-Makers and Counsel It is critical to identify regulatory approvals required for a transaction early in the evaluation process and assess transaction restrictions. Additionally, where regulatory approvals are required, it is essential to pro - actively engage with regulators early in the process as well as, in some cases, with local non-governmental stakeholders such as industry associations. 11.3 Cross-Border and Geopolitical Considerations International buyers should assess the impact of regu - latory approvals (eg, merger control, the NSR, sector- specific reviews) needed in China early in the process, especially if the businesses involved operate in regu - lated sectors in China.
and historical industry data. To prevent overcompen - sation, speculative future gains are typically excluded unless they can be proven with reasonable certainty. 10.4 Settlements, ADR and Arbitration Settlements and alternative dispute resolution are highly prevalent in China, driven by a judicial policy of “prioritising mediation”. Courts and arbitral insti - tutions proactively organise mediation throughout proceedings. This is especially common in M&A dis - putes involving trade secrets or sensitive information exchange, where parties prioritise confidentiality and Parties can negotiate creative solutions (eg, instal - ment payments or equity restructuring) that sustain long-term business co-operation. Enforceability Under the PRC Civil Procedure Law, a court-issued Civil Mediation Statement has the same legal effect as a judgment. For out-of-court settlements, parties can seek “judicial confirmation” to ensure compulsory enforcement. Limitations Private settlement agreements without judicial or arbi - tral confirmation are merely contractual. If breached, the non-defaulting party must initiate new proceedings to enforce the settlement terms, potentially extending the dispute timeline. reputational protection. Flexibility and Continuity
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