Latin America

 

In this century, Latin America has become one of the leading areas of China's overseas investment and trade. Industries like mining, forestry, agriculture, fisheries, bio-energy and infrastructure construction are greatly attracting China’s enterprises. In 2005, Latin America for the first time took the place of Asia to become the largest invested area by China’s businesses.
However, due to local legal, political, cultural and police-relating reasons, investment risk in Latin America is considerably unignorable. China's enterprises encounters the most frequent anti-dumping and other trade protection measures in Latin America, and business activities there such as establishing factories and mines, cross-border mergers and acquisitions, purchasing forest land or farms also repeatedly encounter legal, political, social-opinion-involving and cultural and traditional risks. For example, in 2006, Peru’s made high welfare requirements to Capital Iron and Steel Company, and upon refusal, the latter suffered a loss of millions of dollars from their shrike; Bolivia nationalized the oil companies and caused gross losses to Chinese companies; the locally popularized practices of credit sale made some enterprises lose considerably large sum of profits; the D / A or D / P and other payment methods greatly increase the risk of losing exchange earnings; the local trade unions exert powerful influence upon the local labor forces and make investment costs increase; restrictive provisions concerning land, forestry and water sometimes  obstruct business operation.
Kaipu lawyers have expertise in legal issues of major laws relating to foreign investment, mineral resources and employment in resources-abundant big guys in Latin America, especially Brazil and Chile, establish close business relationship with well-known local law firms in such countries, and have provided fruitful legal services to Chinese enterprises investing there, such as Jin Pei Investment Group.