China, China, China

In real estate, they say, the three most important things are location, location and location. In the 2000 contested US presidential election the mantra was Florida, Florida, Florida.  In reverse mergers these days, well it’s China, China and China. Fully one -third of the reverse merger transactions in the last few years have come from the land of the panda. Of course the majority are still US and some European based companies. But there remains enormous excitement and activity in working with mid-sized Chinese companies seeking the benefits of a US trading stock.

I head to China on Tuesday for a stop in Beijing before heading to Shanghai where I will moderate a panel at DealFlow Media’s International PIPE Conference serving as an introduction to reverse mergers. I am lucky to have some amazing panelists and I am looking forward to a lively exchange.  I am pleased that two of our Mandarin-speaking attorney colleagues will be joining me there. The rest of the conference, including many company presentations, looks to be terrific. I return just in time to enjoy Memorial Day weekend with the family.

Whenever I visit there I am consistently amazed by the determination, work ethic, depth of analysis and pure talent of the business people I encounter. Granted China has had less time as a more market-based economy than we have, and they are always anxious to learn new techniques to improve business. The truth is they teach us a lot as well. Their business culture is based on trust and relationships. They patiently build those relationships until they are comfortable with the individual or company in question. Yes, in any country that large there will be those who do not follow the rules. But all those I have dealt with have shown loyalty and integrity, while also ensuring that what is best for the business is paramount.

I look forward to my visit (I even get multiple visit visas these days!) and seeing my friends in the PRC. Hopefully I will see you there as well!

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