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Taiwan: Navigating regulatory and deal risks in a rapidly shifting landscape

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Cross-border trends for Taiwanese investors and businesses

Executive Summary

Rapid shifts in global regulatory policies and deal trends are creating challenges and tantalizing cross-border opportunities for Taiwanese investors and companies.

By Noah A. Brumfield, Taiwan Practice Head

Halfway through 2018, the world's policy dramas and other disruptions show no sign of slowing. How will the latest global legal changes and market trends affect cross-border business and Taiwan in particular?

Our Taiwan report this year spotlights two appealing opportunities. First, Taiwan's emergence as an exciting energy investment destination may create new openings for Taiwanese companies far beyond the energy sector. In addition, Taiwanese businesses are poised to spend record amounts on overseas M&A transactions and further increase their presence in global M&A markets.

Even some obvious challenges still contain room for optimism. Prudent investment and supply chain strategies can reduce the impact of international trade upheavals on Taiwan-based exporters facing US and China trade policy changes. And Taiwanese businesses that understand shifting geopolitics and financing trends affecting deals in the Asia-Pacific region can unlock funding and capital opportunities.

Several US-centered developments also may be highly relevant for Taiwanese companies engaged in cross-border business. A rare court decision that clarified US merger control rules for vertical deals has provided judicial guidance for transactions involving companies with complementary businesses. A US clampdown on potential security threats is intensifying the scrutiny of cross-border M&A. And Taiwanese companies, already affected by US enforcement actions in recent years, can benefit from making sure all investment strategies and global operations include an assessment of the latest US economic sanctions and export control policies.

We hope you find this useful, and look forward to seeing Taiwanese businesses flourish worldwide in the months and years ahead.

Taiwan's energy renaissance: seizing the opportunity

Taiwan has recently emerged as an exciting new investment destination for international investors and financiers in the energy sector

wind turbines

Taiwanese firms expand their M&A horizons in Q1 2018

While Taiwan traditionally attracts global attention for its semiconductor assets, local firms are increasingly looking to move into markets overseas

Systems Applications and Products in Data Processing

Weathering the storms

Investment and supply chain strategies for a volatile international trade environment

container ship

Asia-Pacific financing trends: Key issues and opportunities for Taiwan

Changing geopolitics and financing flows impact deals in the region

Yuan currency

Rare court decision clarifies US merger control rules for vertical deals

By Noah A. Brumfield and Charles Miller

A recent US district court decision rejecting a US government challenge to the AT&T/Time Warner merger provides judicial guidance for deals involving companies with complementary businesses.

telecommunication tower

Raising the bar for US security clearance of cross-border transactions

A clampdown on potential security threats has increased the scrutiny of participants seeking clearance for cross-border mergers and acquisitions


Taiwanese companies are not insulated from US export controls and economic sanctions

Today’s integrated global supply chains meet enhanced US enforcement against even non-US individuals and entities

colorful pattern

Raising the bar for US security clearance of cross-border transactions

A clampdown on potential security threats has increased the scrutiny of participants seeking clearance for cross-border mergers and acquisitions

1 min read

With governments around the world placing foreign direct investment under ever-greater scrutiny, an increasing proportion of big cross-border mergers and acquisitions are being subject to national security review procedures. Keeping abreast of new laws and engaging early with national bodies have never been more important when navigating this new landscape.


New US legislation would extend investment oversight

The Committee on Foreign Investment in the United States (CFIUS) has the authority to review any transaction that results in foreign control of a US business. Under the Trump administration, there has been rising sensitivity towards in-bound investment and acquisitions by Chinese companies, as well as investment from traditional allies in certain sectors. Politicians have proposed strengthening the CFIUS process against emerging threats in sensitive technologies. In November 2017, US Senator John Cornyn and Representative Robert Pittenger introduced the Foreign Investment Risk Review Modernization Act of 2017 (FIRRMA), which intends to expand the scope of the CFIUS review process. As currently proposed, the legislation would extend the CFIUS review time frames, increase the scope of transactions subject to CFIUS's jurisdiction, make certain notifications mandatory, and establish a process for expedited review of certain transactions.



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