China Seeks Technology

Acquiring rights to U.S. and European technologies has become a priority for Chinese companies—as well as national policy. "Large state-owned companies possess phenomenal production capacity, but generally lag in R&D and technological advancement," says Morrison & Foerster Beijing-based partner Sherry Xiaowei Yin. "Acquiring technology assets allows them to diversify their products and ascend the global supply chain." Also in Beijing, Morrison & Foerster partner Thomas Mannotes that "small to medium-sized U.S. companies in cleantech, IT, and biotech are attractive targets."

This fast-expanding deal cosmos has unique complexities, starting with U.S. government security concerns over sensitive technologies. Differing corporate governance, financial reporting, and accounting standards can be thorny, too–along with a transactional learning curve.