Zhang Huawei: China Investment Corporation's acquisition of a South Korean semiconductor company was blocked, and it had to pay a large breakup fee.

Phoenix Finance News: June 28-29, the "2025 China Enterprise Overseas Expansion Summit" was held in Shenzhen. The forum was hosted by Phoenix, with the premium series brand - Li of Snowflake as the chief sponsor, and jointly organized by the China Enterprise Overseas Expansion Globalization Council. With the theme of "For an Open World," the summit aims to build a high-level platform for Chinese enterprises to exchange ideas, connect resources, and discuss rules during the deep restructuring of the global supply chain, systematically solving the challenges of overseas expansion and exploring paths for ecological win-win transformation.

Zhang Huawei, vice chairman of the Global Board of King & Wood Mallesons and director of the Institute of Foreign Rule of Law at King & Wood Mallesons, attended the forum. She engaged in a dialogue with Phoenix Finance on the compliance challenges faced by enterprises expanding overseas.

Zhang Huawei, vice chairman of the Global Board of King & Wood Mallesons and director of the Institute of Foreign Rule of Law at King & Wood Mallesons

Zhang Huawei stated that with the changes in the international political and economic situation, the national security review of Chinese enterprises' investments by developed countries such as the United States and Europe has become increasingly strict. When Chinese enterprises invest overseas, they may be subjected to review by the target country on the grounds of national security, leading to obstacles or failure in transactions, causing economic losses to the enterprises.

She cited the case of a Chinese private equity investment company's acquisition of a South Korean semiconductor company being blocked as an example. A South Korean semiconductor company had announced the signing of an acquisition agreement, but two months later, due to the fact that the South Korean semiconductor company was listed in the U.S., the U.S. Committee on Foreign Investment (CFIUS) intervened and required the submission of a U.S. national security review. In the end, because it could not obtain CFIUS approval, the transaction parties terminated the deal, and the Chinese company had to pay a large breakup fee.

Original article: https://www.toutiao.com/article/7523487875984392746/

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