If Beijing Prevents U.S. Owned Oaktree from Seizing Evergrande’s Yellow Coast Project “Venice,” Foreign Financing for China will Dry Up
If there is no recourse in mainland China for foreign financiers to seize assets in mainland China, as their contract stipulates when Westerners financed the construction project, then foreign investment in China will dry up for two reasons:
- Creditors cannot seize assets in mainland China as the result of a default on payments; and,
- China, mainly the powers that be in Beijing, refuse to follow the rule of law and honor the terms of the contract signed to receive the financing.
And the world will know, China will not honor the terms of contracts with foreigners.
Of course, if the financier was Chinese, they would allow the assets to be seized.