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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

How To Sell Your Product To China. Which Of Us Is Most Local?

Posted in China Business, Legal News

My good friend Ben Shobert wrote an article a while back for Forbes entitled, A New Wrinkle For China’s Medical Device Market, with the following as its opening paragraph: This week, China’s National Health and Planning Commission (NHPC) threw foreign medical device manufacturers a wrinkle: going forward, the Chinese government would pursue policies explicitly designed to favor domestic manufacturers over… Continue Reading

Demand Letters For China Disputes: They Just Work

Posted in Legal News

Demand letters have become so common in the United States that they rarely elicit either fear or action from their recipients. Some lawyers no longer bother with such letters, believing that you should always sue first and discuss settlement later. China is different.   Our China lawyers have a much higher rate of success in… 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

Beijing Employment Rules: Tighter And Tighter

Posted in Legal News

In September 2014, the Beijing Human Resources and Social Security Bureau, Foreign Affairs Office of the Beijing Municipality and Beijing Education Commission jointly published the Circular on Further Strengthening the Employment of Foreigners in Beijing (关于进一步加强北京市外籍人员聘用工作的通知) (“the Circular”). In this post, I highlight a few key aspects of this Circular.  According to the Circular, foreigners… Continue Reading

CIETAC Arbitrations: U.S. Companies Can Win

Posted in Legal News

Charles Moure (my firm’s head of litigation) and I recently won a substantial award in a CIETAC arbitration in Shenzhen. Our client was a foreign entity. The defendant was a well established local businessperson. Before we filed for the arbitration, a number of China lawyers told us that it made no sense to bring such… 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

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

Maybe Owe Money To China? Don’t Go There.

Posted in China Business, Legal News

Back in 2011, Richard Wagner, a Chicago-based Baker & McKenzie international arbitration and litigation lawyer, wrote an article entitled, Permission denied: The curious case of exit restrictions in Chinese commercial litigation. The article explains why personnel of foreign companies involved in Chinese litigation are often denied permission to leave China. Most importantly, that article details… 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