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Danone v Wahaha: If not a war against foreign acquisitions, what else?

Bu, Qingxiu 2007. Danone v Wahaha: If not a war against foreign acquisitions, what else? Australian Journal of Corporate Law 21 (2) , pp. 173-184.

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Multinational Companies may result in culture clashes, incompatibility of Western corporate governance and legal resolution strategies. As one of the most successful joint venture models, the high-profile Danone/Wahaha dispute has been accelerated into a two-year legal feud against the infringement of the famous brand of WAHAHA across jurisdictions. The case represents a significant watershed which reflects the status quo of controversies over cooperation and competition in China. Under the current legal framework, Danone’s withdrawal would serve as a wake-up call for both foreign investors and Chinese companies in the dramatically increasing cross-border merger & acquisitions. The seminal case perfectly illustrates unwritten issues about public opinion, nationalism and the rule of law. Danone v. Wahaha has also been commonly conceived as a landmark case through which Chinese side may verify the fairness of the Western judicial system, while the European party may regard it as a touchstone for China’s investment environment as well as the specific sphere of contract spirit. It also offers myriad lessons, including the need for watertight contracts, IP rights, and international arbitrations.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Law
Subjects: H Social Sciences > HF Commerce
K Law > K Law (General)
Publisher: Lexis Nexis
ISSN: 1387-2370
Last Modified: 13 Oct 2016 16:18

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