Overseas Companies With US Presence
There were 1,236 foreign companies registered and reporting with the U.S. Securities and Exchange Commission as at December 31, 2005. China is eager to expand into outward investments, with many of its companies hoping to accelerate the start-up process by acquiring technology and distribution networks, along with well-known names on which to build larger businesses.
Chinese auto maker Changfeng believes selling in the U.S. is important because it will assist in boosting their corporate image of vehicles in China, due to the fact that some consumers in the United States are wary of the quality of Chinese brands. China has set up an investment agency to diversify $1.1 trillion in foreign exchange holdings, although private companies have been leading the way. Beijing views the entire world at its fingertips for potentially hundreds of billions of dollars in acquisitions. Many of China's foreign purchases have been focused on energy resources, dominated by big state-owned enterprises like PetroChina and Cnooc. They have recently spent billions of dollars acquiring oil and natural gas fields. Because of this, China’s outbound acquisitions soared from $18.6 million in 1990 to almost $14 billion on more than 100 deals last year, according to Thomson Financial, which tracks global investment trends. Hong Kong, on the other hand, states that the government is now giving companies a mandate to go out and make acquisitions, compared to five years ago when this sort of thing would have been very difficult to get approved, according to Jonathan Anderson, chief economist for Asia at UBS in Hong Kong. Companies in the United States are eager to assist and advise foreign companies newly entering or introducing new products into the American marketplace. They offer such advise that it is wise to consider a few additional, important steps to prevent the possibility of unnecessary and expensive trademark, patent, or product liability litigation. These steps include obtaining pre-entry trademark, patent or technology clearance searches, as well as appropriate guidance as to product liability issues. This will avoid potential lawsuits for willful infringement of trademarks or patents, as well as costly claims under product liability laws.
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