Seminar on Chinese Investment & Acquisition in Brazil

On October 22, 2019,MOFCOM Foreign Investment Promotion Bureau “Foreign M&A Working Committee”,Grandway Law Offices (Shanghai), Felsberg Advogados (Brazil) and ACG (ChinaChapter) co-hosted “Chinese Investment & Acquisition in Brazil” in Grandway’sShanghai Office.

Mr. Felipe Hees,Minister Counselor at Embassy of Brazil in Beijing and Barry Chen, Chair of ACGChina delivered welcome speeches. Mr. Hees introduced about the pro-businessand pro-foreign investor reforms and new policy initiatives under Brazil’s newadministration.

Grandway partner DavidZou talked about legal challenges Chinese companies faced investing or doingbusiness in Brazil. He particularly discussed how to manage legal, regulatory,and business risks by utilizing existing institutional insurances such as ChinaExport & Credit Insurance Company and multinational dispute settlementmechanism relating to investor-state disputes such as MIGA under the WorldBank.

Felsberg partner Joaoand lawyer Paulo presented on the legal and regulatory framework for a foreigninvestor to enter and carry on business in Brazil. Brazilian company law hascertain unique features such as resident director requirement and localattorney-in-fact requirement. In order to attract foreign investment, Brazilhas lifted the foreign shareholding interest restrictions in many sectors suchas airlines, banks. Brazil presented investment and acquisition opportunitiesin renewable energy, infrastructure, agribusiness, TMT, financial services.About 130 state-owned enterprises will be privatized over the next few years.Brazil also introduced significant change to its labor and trade union lawwhich will make hiring and firing local employees easier.

Counselor GensonGimenes and Advior Cristina Zhang from the Consulate General’s Office of Brazilin Shanghai and Frances Li from Brazilian Stock Exchange also shared about theirinsights on how Chinese investors can participate and benefit from Brazil’seconomic rebounding. The Brazilian currency is becoming stronger. The Brazilianstock index has risen more than 40% this year.  

This seminar broughtfirst-hand expertise, experience, local resources, and global resources toChinese companies with interest in Brazil.