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Category Archives: Basics of China Business Law

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China Entertainment Contracts, 101

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

I touched on this topic during my recent webinar for the China-Britain Business Council about China Film Intellectual Property. Most of my comments apply equally to all industries, not just the film industry. Chinese contracts are usually simpler and shorter than contracts used in the West. The specialized vocabulary taken for granted in Western film… Continue Reading

China Foreign Investment in the U.S.: Beware of Easy Money

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

China is now the world’s third largest overseas foreign investor, behind only the United States and Japan. With the inception of China’s “Go Global Campaign” in the early 2000s, in just 10 years Chinese Overseas Foreign Direct Investment (OFDI) has grown from a mere trickle to an estimated $120 billion in 2014. Within two years,… Continue Reading

The China Twist: How To Do Business In China, Or Not

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

Just finished reading The China Twist, a fascinating, easy to read, and very helpful book on doing business in China. The China Twist is written by Wen-Szu Lin, and it is described as “the firsthand story of two Wharton MBAs who brought a beloved U.S. food franchise [Auntie Anne’s Pretzels] to Chin and encountered outrageous… Continue Reading

China Outsourcing: You Need a System and a Contract

Posted in Basics of China Business Law

Renaud Anjoran’s Quality Inspection Blog (which if you are not reading you absolutely should be) had an interesting post the other day, Setting a System in Place when Buying from a China Factory, stressing the importance of having system in place with your China contract manufacturer. The post starts out noting that satisfactorily completing most product orders… Continue Reading

11 Key Issues When Starting A China Business

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

With China ceaselessly increasing its tax crackdown on foreign companies operating improperly in China without a China entity (WFOE, Joint Venture or Rep Office), forming a China entity and starting a business in China is very much in vogue right now. Starting a business in China usually involves forming a Wholly Foreign Owned Entity or WFOE. Forming… Continue Reading

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