Chinese law firms are expanding their interest in the United States with Chinese firm Yingke Law Firm expanding from its New York office to open in Chicago.
China Daily reports that in addition to Chicago and New York, Yingke, whose headquarters is in Beijing, has 14 other offices outside of China and 21 branches in China.
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“It’s been a fruitful year for us,” Zoe Qiao, managing partner at Yingke, told China Daily. “This year has been a relatively busy year because we have a lot more expansion, and it’s been a good time for cross-border transaction.”
Chinese investors were involved with a lot of outbound investment in the US, Qiao said, which is in line with the country’s broader economic transformation and restructuring. Chinese IPOs are making a comeback after almost two years of silence, and China became the third largest exporter of foreign direct investment in the world, with firms spending $7.5 billion in the third quarter of this year alone, according to research firm Rhodium Group.
As US-China economic cooperation grows, Chinese business leaders are learning how important it is to deftly navigate the rule-laden waters of the US legal system.
“A lot of Chinese companies make the step to go outbound, but the rate of failure is really high,” Qiao said. “From previous examples, we saw a lot of publicly-listed Chinese companies get delisted due to SEC compliance and accounting issues.”
In October, research firm Muddy Water called mobile security company NQ Mobile a “massive fraud,” sending the company’s stock plummeting. Muddy Water’s report followed a long string of accounting scandals from Chinese companies doing business in the US, sending Chinese IPOs in the US to a standstill for the past two years.
