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Category Archives: Legal News

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China NNN Agreements

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

The first step in doing OEM manufacturing in China finding a good factory to make your product. To protect your product at this early stage, you must require the Chinese party to execute an appropriate agreement before you reveal any information. This agreement must comply with three basic rules: First, do not use a U.S…. Continue Reading

China Sinosure: What You NEED to Know

Posted in Legal News

Nearly all Chinese companies that provide credit to foreign businesses do so because their invoices are insured by Sinosure. Sinosure is a massive China-based export and credit insurance company, as explained by Wikipedia: Sinosure offers coverage against political risks, commercial and credit risks. This includes short-, medium- and long-term export credit insurance, investment insurance, bond… Continue Reading

China Non-Competes

Posted in Legal News

This post explains the type of China employee that can be bound by a non-compete provision and on the likelihood a China court will enforce such a non-compete. Or not. One of the big issues in China employment law is against whom non-compete provisions will work. China’s labor laws explicitly limit non-compete agreements to senior… Continue Reading

China Arbitration and Litigation, Part 2: First Check Your Insurance Policy

Posted in China Business, Legal News, Litigation and Arbitration

If I were to list out the most common litigation-inducing problems our China lawyers have seen in the last few years, that list would consist of the following: Bad product received from a China manufacturer Late product received from a China manufacturer No product received from a China manufacturer An investment into a China company or project… Continue Reading

China Litigation and Arbitration: What we are seeing

Posted in Legal News

Had a nice conversation yesterday with a bunch of my firm’s China lawyers and litigators, mostly on what is causing the increase in litigation and arbitration against Chinese companies and about some of the pitfalls peculiar to suing Chinese companies. The impetus for this discussion was my having signed on to speak (twice) about how… Continue Reading

Quick Question Friday, China Law Answers, Part XII

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

Because of this blog, our China lawyers get a fairly steady stream of China law questions from readers, mostly via emails but occasionally via blog comments or phone calls as well. If we were to conduct research on all the questions we get asked and then comprehensively answer them, we would become overwhelmed. So what… Continue Reading

China Employment Laws: Dealing With Pregnant and Nursing Employees

Posted in Basics of China Business Law, Legal News

  Now that China has amended its Law on Population and Family Planning, it is a good time to review how China’s employment laws treat pregnant and nursing employees. As I wrote previously, Chinese labor law generally takes a pro-employee position regarding such employees. The first thing you as an employer in China must keep… Continue Reading

On Being a China Lawyer and on Doing Business In China: An Interview, Part 2

Posted in Good People, Legal News

I was interviewed last year by Jason Aquino of Scouts Consulting as part of an ongoing interview series on strategy and innovation in business, sports, and national security. Jason will be releasing this series of interviews in the future, but in the meantime he is allowing me to publish mine here, mostly after I begged him to… Continue Reading

On Being a China Lawyer and on Doing Business In China: An Interview

Posted in China Business, Events, Legal News

I was interviewed last year by Jason Aquino of Scouts Consulting as part of an ongoing interview series on strategy and innovation in business, sports, and national security. Jason will be releasing this series of interviews in the future, but in the meantime he is allowing me to publish mine here, mostly after I begged him to… Continue Reading

Litigating or Arbitrating Against Chinese Companies

Posted in Legal News

This is the first in what will be a long series on what it takes to litigate or arbitrate successfully against Chinese companies. Disputes between foreign and Chinese companies are on the rise both because both sides on China-foreign transactions are becoming less tolerant of infractions and because China’s economy is on the decline. There… Continue Reading

Getting Money Out of China, Part 2: Don’t Fall for the Scams

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

Last week I wrote a post entitled, Getting Money Out of China: What the Heck is Happening?  The post focused on how the China lawyers at my firm have in just the last week or so received more communications regarding difficulties in getting money out of China than in the last year. Since that post, the… Continue Reading

How to Form a WFOE in China, Part 13: What About A Licensing Agreement Instead?

Posted in Basics of China Business Law, Legal News

This is part 13 of our series imaginatively entitled, How to Form a WFOE in China. The last post in this series was How to Form a WFOE in China, Part 12: Do You Really Even Need One? In that post we reiterated how difficult it is to form a WFOE, to operate a WFOE in China, and even to shut down a… Continue Reading

China WFOEs Rising: the Official Explanation vs. the Real Explanation

Posted in China Business, Legal News

Shanghai Daily is out with an article detailing increased foreign investment into China, both in terms of foreign companies having established more new enterprises in China (WFOEs and Joint Ventures and Representative Offices) and in terms of the amount of foreign direct investment in dollars: China’s foreign direct investment last year rose 6.4 percent to… Continue Reading

Register Your Trademark with China Customs: NOW, While It’s FREE

Posted in Basics of China Business Law, Legal News

If you want to protect your brand in China, file a trademark application in China now, before someone else does it for you. If you want to stop counterfeit goods bearing your trademark from leaving China, register your China trademark again with Chinese Customs. China Customs recently issued a notice stating that they are temporarily suspending registration fees… Continue Reading

China’s Two Children Policy: What China Employers Should Know

Posted in Basics of China Business Law, Legal News

I previously wrote about how China would be amending its Law on Population and Family Planning (《中华人民共和国人口与计划生育法》).  This law has now been amended, replacing China’s “one-child policy” with a two children one. The Chinese government is now officially encouraging Chinese families have two children. To fully understand the impact this new policy will have on employers in China requires we… Continue Reading

How to Avoid China Manufacturing Problems, Part 2: Focus on These Five Things

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

In yesterday’s post, the first in this series, we focused on the need to have an OEM Agreement with your Chinese manufacturer. In this post, we focus on what is truly important to include in that agreement, and even more importantly, the terms on which you should reach agreement with your Chinese manufacturer, before you… Continue Reading

Are Your China Trademarks Dirty?

Posted in Basics of China Business Law, Legal News

Read an interesting Linkedin post today, entitled, Does your business have ‘dirty’ IP? The post is by an Intellectual Property (IP) and branding specialist and it emphasizes the importance of domestic companies cleaning making sure their IP is clean. But what it says about domestic companies applies with equal force to foreign companies doing business in China…. Continue Reading

China Employment Law: Local and Not So Simple

Posted in Basics of China Business Law, Legal News

  Earlier this year, Dan Harris of my firm wrote a Forbes Magazine article (China’s Hourly Work Week: Think Locally) emphasizing how China’s employment laws are so localized. Dan started that article with the following explanation: I have avoided writing on China employment law because it is so complicated and so localized. My fear has… Continue Reading