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Category Archives: Basics of China Business Law

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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

Five Top Tips For Protecting Your Trade Secrets From China

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

In a post entitled, Trade Secrets and Third Parties: Top Tips to Prevent Theft, Create.org lists its “five top tips” for protecting your trade secrets, all of which apply to China. Nothing earth-shattering here, but this is actually a really good list (meaning I agree with it 100%) and it never hurts to review the basics,… Continue Reading

China WFOE Lease Reviews

Posted in Basics of China Business Law, Legal News

Our China lawyers often review leases for companies early in the WFOE registration process. Our work in this area has been growing exponentially as word has gotten around regarding WFOE registrations increasingly going awry and landlord problems stemming from WFOE leases. The pendency of a WFOE formation is a complicated time for a commercial lease… Continue Reading

“Hiring” Your China Employees Through A Staffing Agency. What To Do.

Posted in Basics of China Business Law, Legal News

With the costs and the hassles of forming and operating a WFOE in China always increasing, we are finding more of our clients are choosing to retain personnel in China via third party staffing agencies. Doing so is relatively easy and relatively inexpensive, assuming you can find a third party staffing agency willing to do… Continue Reading

How To Terminate A China Employee Non-Compete Agreement. Very Carefully.

Posted in Basics of China Business Law, Legal News

China allows for non-compete agreements that prohibit high level employees from working for another company that competes with the employer. However, these agreements are generally limited to senior management, senior technicians and other personnel who have a confidentiality obligation to the company. In exchange for the employee’s promise to maintain the non-compete requirement, the employer… Continue Reading

China Employment Law. Watching A Bit Of The Sausage Being Made.

Posted in Basics of China Business Law, Legal News

As the Chinese government starts taking its employment laws more seriously (at least with respect to foreign companies doing business in China), our China employment law work just keeps increasing, as does our blogging on it.  The below is an email from one of our China lawyers (who is doing China employment law about half… Continue Reading

Social Insurance For China Expats. It Depends.

Posted in Basics of China Business Law, China Business

Our clients often ask us whether as China employers they must contribute to social insurance for their expat employees. The answer is that it depends on the employer’s location. The Provisions on the Employment of Foreigners in China (《外国人在中国就业管理规定》), mandate that expat participation in social insurance programs must comply with applicable Chinese law. But before… Continue Reading

Changing Your China Factory? Be Careful.

Posted in Basics of China Business Law, Legal News

Just read an article, Toy supplier sues maker in reshoring fight about an American toy maker’s lawsuit against its Chinese supplier. The article describes the lawsuit as being based largely on allegations that the Chinese supplier ceased providing the American company credit and delayed deliveries, all in an attempt to make it impossible for the American… Continue Reading

China Law For Foreign Companies Doing Business In China. It’s Real.

Posted in Basics of China Business Law, Legal News

Pretty much since we started this blog, we have written posts that essentially set forth the following mantra: China has laws. China increasingly is enforcing those laws, against both domestic companies and foreign companies operating in China. Probably more against foreign companies operating in China than against domestic companies. You are entitled to complain about… Continue Reading

China Product Development Contracts: The Questions We Ask

Posted in Basics of China Business Law, Legal News

We often write on how foreign companies outsourcing their product manufacturing to China need an NNN Agreement (in Chinese), an OEM Agreement (in Chinese), and their trademarks registered in China. For most companies seeking to manufacture product in China, those three are enough. But for those foreign companies that do not have a finished product ready for manufacturing, a fourth… Continue Reading

China Compliance: The Mooncake Version

Posted in Basics of China Business Law, Legal News

The Mid-Autumn Festival is coming and mooncakes will soon be given to Chinese family, friends, and colleagues to demonstrate appreciation for these individuals’ generosity throughout the year. Most will exchange delicious mooncakes during the Mid-Autumn Festival with the purest of intentions. However, the holiday also provides an opportunity for individuals with less admirable intentions to… Continue Reading

China Employee Probation: Don’t Let It Slip Away

Posted in Basics of China Business Law, Legal News

In China, employment contracts for new employees often include a probation period  (试用期) designed to give the employer (mostly) and the employee time to test each other out. Generally speaking, the longer the initial employment term, the longer the probation period may be. However, the length of the probation period is not without limitation. Under… Continue Reading

China Joint Ventures That Work

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

China joint ventures are notorious for their high failure rate. An old Chinese saying that is often applied to joint ventures is “same bed, different dreams.” This Chinese saying (同床异梦) actually far predates joint ventures — it applies to any sort of partnership without a meeting of the minds. Far too often, American companies and Chinese companies… Continue Reading

China Employment Offer Letters: Be Careful.

Posted in Basics of China Business Law, Legal News

In China, an offer letter (录用通知书) is a written document delivered by an employer to an employee stating the employer’s intent to enter into a labor relationship with the employee. An offer letter typically proposes the employee’s work title, work location, wages, and the term of the employment arrangement. Despite the relatively common use of… Continue Reading