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Category Archives: Basics of China Business Law

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CIETAC Arbitration: Different But Fair

Posted in Basics of China Business Law, Legal News

Every year, an increasing number of Chinese companies require that their contracts with American companies provide for disputes to be resolved via arbitration in China. In these situations, we are seeing mostly CIETAC arbitration clauses Many of our clients “freak out” about the idea of having to arbitrate in China, with their concerns usually focusing… Continue Reading

China’s Foreign Company Double Standard: How To Fight Back

Posted in Basics of China Business Law

Last week, China government news agency Xinhua announced that the government would be cracking down on foreign company tax avoidance. To anyone familiar with doing business in China, the Chinese government singling out foreign businesses should come as no surprise; the only surprise should be that it would announce that openly. Foreign companies doing business in China… Continue Reading

China Employment Contracts: Why Ours Are In Chinese

Posted in Basics of China Business Law, Legal News

Our China lawyers sometimes get “simple” questions from our WFOE clients regarding China’s labor law. One such question is whether they must use Chinese as the prevailing language for their labor contracts with their employees, especially with their expat employees. This question is not as simple as it may first appear. First off, there is… Continue Reading

Starting A China Company: Seven Basic Issues

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

Though China’s economy is slowing, our work in helping foreign companies start a business in China is soaring. Though this might sound counterintuitive, it actually makes complete sense. It makes complete sense because whenever China’s economy slows, China’s government steps up its crackdown on businesses operating in China without an entity and, in turn, foreign… Continue Reading

China Manufacturing: How To Hang On To YOUR Molds

Posted in Basics of China Business Law, Legal News

Every couple of months, someone calls or emails one of our China lawyers for help in “getting their molds” back from their Chinese manufacturer. Whenever a foreign company terminates its Chinese manufacturer, it is at great risk of having the Chinese manufacturer keep the foreign company’s molds. The Chinese manufacturer typically holds on to the… Continue Reading

China Trademark Registrations: The Latest News From The Front

Posted in Basics of China Business Law, Legal News

One of our China lawyers sent an email to a client yesterday, updating the client on the status of its trademark filings. I am republishing that email below because it succinctly sets out the current timelines for the various stages of trademark filings in China: Good to hear from you. We submitted the trademark applications… Continue Reading

Want Good China Product? Use A Good China Spec Sheet

Posted in Basics of China Business Law, China Business

There are all sorts of things you should be doing to increase your odds of securing good product from your Chinese manufacturer. When I speak on what it takes to successfully source product from China, I always emphasize the following four things: Good manufacturer (due diligence) Good OEM Agreement Good IP protection Good quality control… Continue Reading

China WFOE Formation And Minimum Capital Requirements

Posted in Basics of China Business Law

China has liberalized its minimum capital requirements for a WFOE and the amounts required have been reduced in many Chinese cities/districts. But even if the Chinese government is going to let you get away with a very small amount of registered capital, you may want to pay more. You should think about the registered capital… Continue Reading

China Employment Law: How To Avoid LIFETIME Employees

Posted in Basics of China Business Law, Legal News

In China, an open-term labor contract (无固定期限劳动合同) is a contract where the employer and its employee agree that there is no definitive ending date for the labor relationship. Such a contract generally means the employer must retain the employee until his or her retirement age, though the employee can terminate at any time, with no… Continue Reading

Five Keys To Getting Good Quality Products From China

Posted in Basics of China Business Law, China Business

Our China lawyers have assisted hundreds of Western companies with the legal side of having product manufactured in China. That experience has enabled us to see what works and what doesn’t for China manufacturing. If you want to greatly increase your odds of getting good quality manufactured product from China, you should do the following… Continue Reading

Preventing China Counterfeiting: The Basics

Posted in Basics of China Business Law, Legal News

When Christmas is approaching, China counterfeiting goes into overdrive, and this year has been no different. The real trick to reduce counterfeiting is to do the things earlier in the year that can help to prevent it. The more you do before you face an infringement problem, the less likely you are to have an… Continue Reading

China Employee Vacations: Don’t Stop Them. Just Don’t.

Posted in Basics of China Business Law, Legal News

China’s Regulation on Paid Annual Leave for Employees (《职工带薪年休假条例》) entitles employees (including dispatched workers) who have worked continuously for one year to paid annual leave. Their statutory vacation period is as follows: More than 1 and less than 10 years service: 1 week (5 days) vacation More than 10 and less than 20 years service:… Continue Reading

China Trademarks: The First Thing To Do When Someone Already Has “Yours”

Posted in Basics of China Business Law

It used to be rare for one of our clients to be unable to secure a desired trademark in China because someone had beaten them to it. With the proliferation of trademark filings in China over the last 3-5 years, those halcyon days are over. When our pre-application screening turns up a conflict with a… Continue Reading