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Category Archives: Legal News

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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

Four Things Importers From China Should Know About U.S. Antidumping Cases

Posted in China Business, Legal News

Companies importing products into the United States from China may be unfamiliar with terms such as “non-market economy (NME),” “respondent,” and “surrogate values.” However, this quickly changes when such companies’ imported goods are subject to a U.S. antidumping proceeding. U.S. antidumping or “AD” cases are complex. This is especially true for “non-market economy” or “NME”… Continue Reading

China Law Blog’s Linkedin Group Reaches 10,000 Members

Posted in China Business, Good People, Legal News, Recommended Reading

A couple years ago, we started a China Law Blog Group on Linkedin to create a spam-free forum for China networking, information and discussion. This week we surpassed 10,000 members and the number and quality of our discussions continues to increase as well. We have had some absolutely terrific discussions, both based on the numbers (discussions… Continue Reading

TPP Will Hurt China Companies

Posted in China Business, Legal News

China, the world’s second largest economy, is not one of the twelve countries currently negotiating a Trans-Pacific Partnership (“TPP”) multilateral trade agreement. The United States and Japan, respectively the world’s No. 1 and No. 3 largest economies, are anchoring the negotiations. Nonetheless, a concluded TPP could adversely impact companies in China that manufacture and export goods…. Continue Reading

China Transfer Pricing Laws, Because They Matter

Posted in China Business, Legal News

Last week I wrote an article for Forbes, entitled, China’s Tax Authorities Want You. The theme of that article was how China’s slowing economy is causing the Chinese government to step up its tax collection efforts against foreign companies with off-the-grid “employees” in China. China is also stepping up its tax collections on transactions that implicate transfer… Continue Reading

Alibaba Takedowns And A Lawsuit

Posted in China Business, Legal News

We have many times written about our near 100% success rate at getting counterfeit products removed from the big name Chinese websites like Alibaba. See, for instance, Register Your Trademark In China Because Alibaba Is Serious About IP, written way back in 2013: Alibaba International has a formal procedure for requesting and securing the removal of… 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

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 VIEs Are Dead And I Told You So

Posted in Legal News

The Wall Street Journal just published an article on the threat of the proposed PRC foreign investment law on major companies in China that have used the VIE structure to enter into prohibited business sectors. Among the companies in the cross hairs are a number of major foreign businesses such as Amazon, Pearson and CBS…. Continue Reading