Ever since China opened its borders to FDI for the first time in 1979, China has been slowly adopting and emulating the Western system of economy and its financial structures. However, progress has been slow, as China needed a balance between maintaining its economic growth while preserving its unique political system. Over time, as China is taking on a greater geopolitical role, it’s forced to more progressive financial policies – not until recently has there even been possible for foreign financial institutions to establish themselves as majority owners in the Chinese market.

Besides, the recent trade war between China and U.S. has resulted in a significant reduction in China’s many decades of reliance on U.S. financing regarding FDI, M&A, VC, JV, and other capital in- and outflows by up to 90%. As to respond against the new U.S. tariff initiatives, the Chinese banks have adopted harsh regulatory requirements against U.S. capital going in and out of China as well.

Finally, as the old saying goes “money never sleeps”, the above situation is forcing the fast-growing Chinese economy to adapt to this new reality. Consequently, many Chinese financial institutions are forced to look towards the European partners for new sources of financial platforms.

Unfortunately, currently, there are very few professional Scandinavian M&A boutiques that specialize in the Chinese market…