Harry Clark Comments on Accelerating Chinese Tech Industry

Bloomberg | September.30.2015

Harry Clark, Chair of Orrick’s International Trade & Compliance Group in Washington, D.C., was recently quoted in Bloomberg regarding China’s recent strides to boost the country’s domestic technology industry by investing in U.S. tech companies. 
 
With Chinese state-backed investors having committed $39 billion to acquiring U.S. tech companies in the past two years, major questions are arising about U.S. policy regarding dissemination of U.S. technology to China. China aims to strengthen its industry by acquiring Synaptics Inc., which makes touch screens—a deal that would help Chinese phone manufacturers compete with Apple Inc.—and investing in Western Digital Corp, a company that provides data storage. 
 
Unfortunately for Chinese investors, acquiring U.S. firms is not always easy. Not only must they convince corporate boards and shareholders to strike a deal, but prove to the Committee on Foreign Investment in the U.S.​ that the deal does not threaten national security.
 
“There’s no way around it,” said Harry. “All else being equal you take the very same deal and it’s a Chinese government buyer on one hand and it’s a Luxembourg buyer on the other hand, there’s just no question the former will viewed more critically.”