The hidden traps in investment contracts can cost entrepreneurs their entire personal fortune—unwittingly.

I’m Hong Rongshun, CEO of Eden Network. Today, I’d like to share with you some critical pitfalls you must avoid when signing investment contracts. Many young entrepreneurs today often skip reading the contract thoroughly before signing. If the investor adds, “This is a standard contract—we use it for everyone,” many feel reassured and skip reviewing it altogether. In fact, this is fatal. Especially if you’re raising U.S. dollar-denominated investment, the contract you receive will almost certainly be an English-language document exceeding 300 pages. Faced with dense, technical English, you’ll likely lack both the time and expertise to scrutinize it carefully. Please pay close attention: the fine print in your contract matters more than the amount of money you receive. Here are several key points you must watch for: First: How long is the founders’ equity subject to a lock-up period? Typically, the contract stipulates that once investment funds are injected, the founders’ or founding team’s equity is locked up. A reasonable lock-up period is usually two to three years. Second: Equity vesting schedule Vesting on an annual basis is highly unreasonable; monthly vesting is the norm. Third: Valuation adjustment mechanisms (‘ratchet’ or ‘betting’ clauses) Startups should categorically reject such clauses. Early-stage companies inherently face uncertainty—unclear strategic direction, undefined business models, unpredictable timelines and amounts of profitability. A valuation adjustment clause requires you to hit specific targets within a set timeframe—for example, achieving a certain revenue figure, user count, market share, or transaction volume. If you fail to meet these targets, investors may either demand heavy dilution of your equity—or require you to repay the investment. Both outcomes are extremely dangerous. Some experts therefore advise startups not to accept valuation adjustment clauses before Series C funding. Fourth: Joint-signature (co-signature) clause What is a joint-signature clause? It means that for expenditures above a specified threshold, both the investor and the investee must jointly sign off before funds can be disbursed.

A wave of large-scale steel projects has come online nationwide, creating tens of thousands of jobs—what’s the next big trend?

From south to north, and from domestic markets to overseas destinations, a wave of steel projects—each attracting investments in the billions or even tens of billions of RMB—is rapidly advancing through signing, groundbreaking, and commissioning phases. In the first half of 2026 alone, nearly 50 steel projects across China officially broke ground or were completed. Behind these mega-projects lies a massive release of employment opportunities. This surge in production capacity isn’t merely an expansion of China’s industrial map—it’s also a livelihood initiative affecting tens of thousands of workers. I. Domestic Capacity Expansion: Private Steel Enterprises Lead Job Creation Steel projects are flourishing nationwide, with private enterprises taking the lead. On July 8, the Fujian QingShan Special Materials stainless-steel deep-processing project officially commenced operations. Covering over 330 mu (approx. 55 acres), it is projected to generate over 2 billion RMB in annual output value and directly create more than 700 jobs—a mere snapshot of the broader trend. The Zhonggang Xingji relocation and upgrading project in Xingtai Economic Development Zone involves a total investment of 4.323 billion RMB, occupies over 1,400 mu (approx. 233 acres), and is scheduled to enter trial production by year-end. It aims to produce 208,000 tons annually of rolls and metallurgical equipment, targeting an annual output value of 6 billion RMB and generating 3,000 jobs. The Longteng Special Steel high-end offshore and shipbuilding structural steel project is also slated to commence operations this year, with an annual production capacity of 800,000 tons of premium specialty structural steels. Its core products include large-section shipbuilding bulb flats and L-shaped steel, construction machinery track steel, and large-section power transmission tower angle steel—high-value-added structural materials that likewise drive substantial job creation. Even larger-scale initiatives are underway in Guangdong and Shandong provinces. The Phase II, Zone III (1,780 mm hot strip mill line) of the Guangdong Jingshenglan 8-million-ton-per-year premium special steel project is accelerating progress, with a total investment of 2.5 billion RMB and a planned commissioning date of November 2027. Upon full operation, it is expected to generate over 5,000 jobs. The Linyi Iron and Steel Investment Group Special Steel Co., Ltd. 2.7-million-ton-per-year premium special steel project will begin trial production by year-end, directly creating more than 3,000 new jobs. … Green steel is likewise emerging as a major new source of employment. Baosteel’s Zhanjiang Iron and Steel—the site of China’s first one-million-ton-per-year near-zero-carbon steel production line—achieved full operational integration at the start of this year. Compared to conventional processes, its carbon emissions are reduced by 50%–80%, simultaneously catalyzing the emergence of new job categories in hydrogen-based metallurgy, electric smelting, and related fields. II. Overseas Capacity Expansion: Chinese Steel Enterprises Export Jobs “Going global” is no longer just a slogan—it translates into real production lines and tangible local jobs abroad. Zhongtian Iron and Steel’s Egypt project has been formally signed and established in the Suez Canal Economic Zone, with a total investment of USD 300 million (approx. 2.03 billion RMB). It is designed to produce 120,000 tons of steel cord and 50,000 tons of tire bead wire annually. Upon commissioning, it will create approximately 1,000 local jobs.

Green Steel Startup Hydnum in Talks to Sell Up to 50% Stake

16 hours ago

Spanish green steel startup Hydnum is in advanced talks to sell up to 50% of its equity for over €150 million. The deal aims to fund its hydrogen-based steel production project targeting 2.7 million tons annually by 2029.

bloomberg

2026-09-23

Green Steel Startup Hydnum in Talks to Sell Up to 50% Stake

Green Steel Startup Hydnum in Talks to Sell Up to 50% Stake

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