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Category Archives: Basics of China Business Law

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How To Protect Your Intellectual Property In China: May 21 Seminar In Irvine, California

Posted in Basics of China Business Law, Events

On Thursday, May 21, I will be speaking at the UC Irvine Law School at an all day China IP seminar organized by the U.S. Commercial Service, the Southern California District Export Council, UC Irvine Law School, and the John S. and Marilyn Long U.S.-China Institute for Business and Law. For the agenda, click here…. Continue Reading

China Employment Contracts: If Yours Are Not Current, You Have A Problem

Posted in Basics of China Business Law, Legal News

Under China’s labor laws, China-based employers are required to have written employment contracts with all of their full-time employees. At minimum, that employment contract must contain the following mandatory provisions: Basic information about the employer and the employee The explicit term/duration of the employment contract A description of the work the employee will be performing… Continue Reading

Terminating Your China General Manager

Posted in Basics of China Business Law, Legal News

Under China’s labor laws, most employees can only be terminated with cause and a severance payment. But what about terminating a general manager? Pursuant to China’s Company Law, the board of directors may terminate a general manager in accordance with the relevant procedures without cause. Based on this provision, many companies assume that the Company… Continue Reading

China Consultant Or All Knowing China Expert

Posted in Basics of China Business Law, Legal News

China’s recently stepped up efforts to root out unregistered foreign businesses in China has caused a rash of China consultants to retain the China lawyers in my firm. From our work in forming China WFOEs (wholly foreign owned entities) for these consultants, we have discovered that many China consultants are falling dangerously short in various… Continue Reading

China Contract Signing Formalities: You Are Not In Kansas Anymore

Posted in Basics of China Business Law, Legal News

Contracts in China are more formal than contracts here. This is particularly true with how they should be signed. When we draft a contract between an American client and a Chinese company, we instruct our client on what it should do to ensure a proper signing by its Chinese counterpart. This instruction is usually along… Continue Reading

Terminating China Employees: The Basics

Posted in Basics of China Business Law, Legal News

Under China’s labor laws, terminating a China employee who has completed his or her probation period is virtually never easy. Termination usually requires good cause and a severance payment. Most importantly a China employer must be able to show that any unilateral termination was based on statutory grounds. In this post, I lay out some basic… Continue Reading

China Joint Ventures: How To Give Away Your IP In China, Part 2

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

  Last month I wrote a post entitled, How To Give Away Your IP In China, explaining how foreign companies so often “gift” their intellectual property to their Chinese manufacturers by not initially making clear in a Chinese language contract who will own the intellectual property that will be developed jointly by the Chinese manufacturer and… Continue Reading

Doing Business In China: Lessons From The Music Industry

Posted in Basics of China Business Law

Loyal China Law Blog reader Declan Nolan, of Shanghai SIP Engineering Consulting, sent me a really excellent Smart Shanghai article the other day on Archie Hamilton. Hamilton is the Managing Director of Splitworks, a China-based concert promotion agency, and the interviewee in the article. Hamilton has been in the China music business for ten years and in his… Continue Reading

Foreign Investment in China: Beware of Local Governments Bearing Gifts

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

Recent news reports suggest that Foxconn is having trouble securing investment benefits promised them by the Zhengzhou government. The rumor is that Foxconn was lured to Zhengzhou with promises of over 5 billion RMB in tax benefits and related incentives. These incentives were granted in direct opposition to central government policy. Beijing found out and laid… Continue Reading

How To Give Away Your IP In China

Posted in Basics of China Business Law, Legal News

We represent a large number of foreign companies that do OEM manufacturing in China. In our discussions with these companies, one of the first issues we raise is how to protect the intellectual property of the foreign party. Foreign designers of products are quite properly concerned that by using a Chinese manufacturer, they are simply training… Continue Reading

Justifying China Bribery

Posted in Basics of China Business Law, Recommended Reading

I met Richard Bistrong while both of us were speaking at last year’s Dow Jones Global Compliance Symposium and I have been reading his blog ever since. Bistrong’s blog provides “An International Perspective on FCPA, Anti-Bribery and Compliance.” Beyond knowing a ton about these subjects, what makes Bistrong and his blog so interesting is his perspective. If… Continue Reading

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