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Category Archives: Basics of China Business Law

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Negotiating With Chinese Companies. The Pros And Cons of MOUs.

Posted in Basics of China Business Law, China Business

We have a number of times written on the problems that can arise from using memoranda of understanding (MOUs) with Chinese companies. See the following for some of those posts: The China MOU (Memorandum of Understanding). Use Them At YOUR Peril. China MOU. Like I Really Care. China MOUs. I Really Do Care. Deeply. Mostly… Continue Reading

China Trademarks. Register Them In China Not Madrid.

Posted in Basics of China Business Law, Legal News

Whenever clients ask about filing a trademark in China via the Madrid System, my answer is simple: filing a national application directly with the Chinese Trademark Office (CTMO) is better. Co-blogger Steve Dickinson takes an even stronger position. In his opinion, filing a China trademark via the Madrid System is a waste of time, and… Continue Reading

China Patents And Trademarks. Close The Barn Door Before The Pigs Are Gone.

Posted in Basics of China Business Law, Legal News

Sorry for the farm analogy, but I just finished looking at my itinerary for an upcoming Iowa trip. Got a call the other day from a U.S. company furious about a competitor in China who had registered both its trademark and its patent in China. How’s that you say? Let me explain. This U.S. company… Continue Reading

Four Common China Law Mistakes To Avoid

Posted in Basics of China Business Law, Legal News

I am now writing weekly on China law issues for the Above the Law Blog. In my first post, China Law Mistakes To Avoid — I’m Talking To You, I listed out “four common and egregious mistakes my law firm’s China lawyers often see American domestic lawyers make when representing their clients in doing business with or in… Continue Reading

Join Our China Law Blog Group On Linkedin

Posted in Basics of China Business Law, China Business, China Film Industry, China Travel, Events, Good People, Legal News, Recommended Reading

We started a China Law Blog Group on Linkedin with the goal of creating a spam-free source for China networking, information and discussion. We now have nearly 8,500 members and, more importantly, a number of lively discussions. We have had some absolutely terrific discussions, both based on the numbers (a number of the discussions have received around 100 comments… Continue Reading

China Contracts: Is That A Real Seal/Chop? Part II.

Posted in Basics of China Business Law, Legal News

A few months ago, I did a post on chops in China, entitled, China Contracts: Is That A Real Seal/Chop? “Clarence” yesterday left the following comment to that post: A valuable post would be “What does a real seal look like? What are its characteristics? What features does the law require? What are some examples of… Continue Reading

Where To Locate In China? Or Why Weifang Isn’t Suzhou.

Posted in Basics of China Business Law, Legal News

I am constantly telling our clients that just because something happens one way in Shanghai does not mean it is going to happen the same way in Datong.  It is more than cliche to say that China is a big and diverse country.  Shanghai has some of the most sophisticated infrastructure in the world, while… Continue Reading

China Employer Taxes / Employee Taxes. Are We Having Fun Yet?

Posted in Basics of China Business Law, Legal News

To describe employer and employee taxes in China as complicated is an understatement.  My law firm generally advices its clients to secure bookkeeping/accounting assistance for this, just as they generally use a payroll service back in their home country.  Because of this, we generally do not get much involved with calculating these figures.  However, a… Continue Reading

Everything You Always Wanted To Know About China Law. The Bibliography.

Posted in Basics of China Business Law, Legal News, Recommended Reading

I am going to be speaking at USC this weekend and in poring over old PowerPoints (to create a new PowerPoint for my talk), I came across one with a fairly extensive China law bibliography of some of our most helpful posts.  This bibliography is definitely slanted towards the legal issues that confront foreign companies… Continue Reading

China Business Contracts: Getting Them Signed.

Posted in Basics of China Business Law, Legal News

We recently did a set of tooling agreements for a client doing business in China and as a part of that, one of our China lawyers sent the client the following instructions on making sure those agreements were properly signed: As noted above, you must ensure that the tooling agreements are properly executed by the… Continue Reading

China Manufacturing Agreements

Posted in Basics of China Business Law, Legal News

It’s the weekend, which means that I watch the Seattle Seahawks annihilate an opponent (the Tennessee Titans are this week’s victim) while cleaning up my inbox. In my inbox was an email from one of our China attorneys to a client for whom we are working on an NNN Agreement, but who will likely eventually… Continue Reading

China Trademarks. Don’t Sweat The Delay.

Posted in Basics of China Business Law, Legal News

Today was a good day for our clients for whom we sought to register a China trademark.  For today, we received no fewer than five notices from the Chinese Trademark Office granting preliminary approval to the various marks we sought to register for them in China. It is very common is for us to receive… Continue Reading

The Basics On Doing Business In China. Big Risks, Bigger Rewards?

Posted in Basics of China Business Law, Legal News

Just read a CNN article entitled, China offers big risk, bigger reward.  The article quotes me and a nice range of other attorneys on what it takes for foreign companies to succeed in doing business in China — from a legal perspective.  I really like the article, but I have a beef with its title. If… Continue Reading

Now That You Have Your China Trademark, What Next?

Posted in Basics of China Business Law, Legal News

We here at China Law Blog constantly emphasize the need to secure trademark registrations in China, as evidenced by the China trademark posts below: China: Do Just One Thing. Trademarks. WHEN To Register Your China Trademark. China Trademarks — Do You Feel Lucky? Do You? Register Your China Trademark Or Go Home Register Your China… Continue Reading

Hiring “Independent Contractors” In China. Don’t Do It.

Posted in Basics of China Business Law, China Business, Legal News

We spoke with a software company the other day that has nearly fifteen “independent contractors” in China, who it views as “part of the corporate family.”  This company was contacting us to see about forming a WFOE in China.  They told me that they were not in any rush. The first thing I did was… Continue Reading

China Contracts And Choice Of Law. Dance With The One That Brung Ya.

Posted in Basics of China Business Law, Legal News

Yesterday, at lunch, a couple of lawyers and I were discussing choice of law provisions.  I know that makes us geeks, but what can I say?  The discussion started when I talked of how I had been receiving an increasing number of “draft contracts” that called for applying “China and US law” to any dispute…. Continue Reading

English Translations Of Chinese Laws. Don’t Call Us.

Posted in Basics of China Business Law

Pretty much every week someone asks me for an English translation of a Chinese law or cites one to me as an explanation for a decision they made or are contemplating. China’s laws are too precise/too vague/too changing/too real world/too dependent on regulations to use English language translations of one or two laws for making… Continue Reading

Protecting Against Trademark Infringement in China. The Basics For Fashion Apparel.

Posted in Basics of China Business Law, China Business, Legal News

A few weeks ago, one of the lawyers in my office, emailed me an article co-written by a law school friend of hers.  The article was on trademark infringement in the clothing industry and on what clothing companies/fashion companies should do to protect their China trademarks, written by Yujing Shu and Hai-Ching Yang of KLGates.  The note with the… Continue Reading

Your China Contract Should Be In Chinese. Here’s Why.

Posted in Basics of China Business Law, Legal News

It is widely believed by American lawyers that their clients should do whatever they can to avoid finding themselves in a Chinese court.  This widespread belief is usually wrong.  It is usually wrong because most of the time it is the American company that will want to sue the Chinese company, not vice-versa. That being… Continue Reading

China Non-Competes. The Basics Have Become Clearer.

Posted in Basics of China Business Law, Legal News

Earlier this year, China’s Supreme People’s Court of China promulgated various interpretations of various employment law issues.  These interpretations were intended to clarify and for the most part, they did.  In particular, what was once unclear about non-competes signed by China employees has now become much clearer.  I am not going to compare the old… Continue Reading

The Three Rules For Your China Contract

Posted in Basics of China Business Law, Legal News

In several recent posts (see here and here), I have stressed that written contracts are the key to the next wave of doing business in China. I mentioned that relying on written contracts now makes sense in China because of the major improvements in the legal system that have been implemented in China over the past… Continue Reading

A Legal Checklist For Doing Business In China

Posted in Basics of China Business Law, Legal News

Clients, potential clients and/or the press are always asking me what foreign companies doing business in China need to know to stay out of legal trouble. My initial response is usually just a sigh.  Since a client recently asked me to speak at his company about the legal issues of which it should be aware,… Continue Reading

How To Start A Business In China. The Minimum Capital Requirements For A WFOE, Part II — The Goldilocks Rule

Posted in Basics of China Business Law, Legal News

Companies seeking to form a WFOE in China are often confused about Chinese law regarding the minimum registered capital requirements for forming a WFOE.  Part of the confusion stems from disreputable entity formation companies that encourage their hiring by claiming they know exactly how much will be required and that they have the ability to… Continue Reading