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Category Archives: Basics of China Business Law

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China Manufacturing Contracts: Made In China Doesn’t Have To Mean “Dangerous”

Posted in Basics of China Business Law, Legal News

We are constantly — both on this blog and in the real world — extolling the virtues of foreign companies having appropriate contracts with their Chinese manufacturers. Yesterday provided me with two instances highlighting that need.  The first was an email from a company asking whether my firm’s China lawyers could assist them in seeking… Continue Reading

China Distributor Agreements: A Relatively Easy Way To Sell Your Products Into China

Posted in Basics of China Business Law, China Business

For most American SMEs, getting their products into China and then marketing, selling and delivering them is a difficult and massive task. Using an experienced Chinese distributor or distributors is oftentimes the best way for these companies to accomplish these things. Distribution contracts with Chinese companies are both similar to and quite different from US distribution agreements. U.S…. Continue Reading

China Treatment Of Foreign Businesses: Mr. Harris Goes To Washington

Posted in Basics of China Business Law, China Business

Earlier this week, Dan Harris (one of this blog’s co-editors) traveled to Washington, D.C. to testify before the U.S.-China Economic and Security Review Commission’s Hearing on the Foreign Investment Climate in China. I joined Dan at the hearing as an observer. By way of background on the Commission and this week’s hearing, the Commission was… Continue Reading

China Employee Layoff Laws

Posted in Basics of China Business Law, Legal News

China’s Labor Contract Law defines what constitutes a “mass layoff” (“经济性裁员”) as one of the following: An employer reduces its workforce by twenty or more employees, or A workforce reduction that exceeds 10% of the entire workforce. Under the Labor Contract Law, an employer may initiate mass layoffs only under one of the following four… Continue Reading

China Product Development Contracts: I Don’t Get No Respect

Posted in Basics of China Business Law, Legal News

When someone emails one of our China lawyers asking us what they need to protect themselves when manufacturing in China, we typically respond with something like the following: Our clients that manufacture product in China typically use us for some or all of the following: NNN/NDA Agreements. We do these NNN Agreements in Chinese (the official… Continue Reading

Six China Business Law Trends for 2015

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

  An article I wrote for Forbes, entitled, Six China Business Law Trends for 2015, just went live. Needless to say, the general theme is that we should expect China in 2015 to continue its crackdown on foreign companies doing business in China. The following are the six trends:China will increasingly crack down on foreigners in… Continue Reading

How To Use E-Commerce To Sell Your Products Into China

Posted in Basics of China Business Law, Legal News

The Seattle Times recently wrote a long article on the trials and tribulations and successes involved in selling consumer products to China online. The article is entitled, Seattle-area businesses plug into China’s love of online shopping and subtitled, American companies such as Blue Nile, Northwest Cherry Growers and Costco are dipping their toes into the waters of… Continue Reading

Tips For Doing Business in China

Posted in Basics of China Business Law, China Business

A while ago I was interviewed by Laurel Delany for her article, Legal Tips for American Small Business Owners Doing Business in China Laurel wrote the book, Exporting: The Definitive Guide to Selling Abroad Profitably, a truly excellent book on importing and exporting. My interview (modified slightly) is below.   LD: What are the top five legal pitfalls for… Continue Reading

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