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Category Archives: Legal News

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China’s New WFOE Minimum Capital Requirements. Waiting For The Dust To Settle.

Posted in Legal News

China (nationally) recently changed its minimum capital requirements to zero. Many commentators have written on this change but none as far as I can tell have written on what it really means in concrete terms for foreign companies seeking to form a WFOE in China. We have received a number of reader emails asking us… Continue Reading

The FCPA And China. Be Afraid. Be Very Afraid.

Posted in Legal News

The FCPA Blog recently did a post, China dominates the corporate investigations list, in which it listed out the number of ongoing FCPA (Foreign Corrupt Practices Act) investigations by country. This list appears to have been compiled using company disclosures so there are no doubt a number of investigations not reflected by it. Nonetheless, it is a… Continue Reading

China Challenges U.S. Antidumping Policies In WTO

Posted in Legal News

The U.S. Trade Representative (“USTR”) announced last week that China, in a follow-up to its December 3, 2013 request for World Trade Organization (“WTO”) consultations, has asked for a dispute settlement panel concerning certain U.S antidumping methodologies. The USTR requests public comments on the issues identified by China in its panel request. China challenges certain… Continue Reading

China Trademarks. Register Them In China Not Madrid.

Posted in Basics of China Business Law, Legal News

Whenever clients ask about filing a trademark in China via the Madrid System, my answer is simple: filing a national application directly with the Chinese Trademark Office (CTMO) is better. Co-blogger Steve Dickinson takes an even stronger position. In his opinion, filing a China trademark via the Madrid System is a waste of time, and… Continue Reading

China Patents And Trademarks. Close The Barn Door Before The Pigs Are Gone.

Posted in Basics of China Business Law, Legal News

Sorry for the farm analogy, but I just finished looking at my itinerary for an upcoming Iowa trip. Got a call the other day from a U.S. company furious about a competitor in China who had registered both its trademark and its patent in China. How’s that you say? Let me explain. This U.S. company… Continue Reading

Four Common China Law Mistakes To Avoid

Posted in Basics of China Business Law, Legal News

I am now writing weekly on China law issues for the Above the Law Blog. In my first post, China Law Mistakes To Avoid — I’m Talking To You, I listed out “four common and egregious mistakes my law firm’s China lawyers often see American domestic lawyers make when representing their clients in doing business with or in… Continue Reading

Doing Business In China Without An Anti-Corruption Compliance Program? Are You Crazy?

Posted in Legal News

Sorry for the strong title on this post, but a recent Department of Justice (DOJ) case and China’s recent relentless crackdown on corruption mandates it. The recent DOJ case was against Marubeni, a large Japanese trading company. The DOJ secured jurisdiction over Marubeni because some of the money used to bribe Indonesian government officials passed… Continue Reading

China Imports And Exports. “One Window” Process Coming Soon.

Posted in Legal News

This is a guest post by Chris Priddy, an international trade and compliance lawyer with our firm. If your company is engaged in U.S.-China trade, you know that clearing goods through Customs is the critical factor for on-time deliveries and realized budget projections. Streamlined border clearance procedures are in companies’ and governments’ mutual best interests…. Continue Reading

Join Our China Law Blog Group On Linkedin

Posted in Basics of China Business Law, China Business, China Film Industry, China Travel, Events, Good People, Legal News, Recommended Reading

We started a China Law Blog Group on Linkedin with the goal of creating a spam-free source for China networking, information and discussion. We now have nearly 8,500 members and, more importantly, a number of lively discussions. We have had some absolutely terrific discussions, both based on the numbers (a number of the discussions have received around 100 comments… Continue Reading

Getting Your China Employee Into Your WFOE From A Third Party Agency

Posted in China Business, Legal News

As China inexorably continues increasing its restrictions on hiring personnel via third party employment agencies (sometimes referred to as FESCO companies or as staffing agencies), our China lawyers are more and more often being tasked with helping our clients move their personnel from the third party hiring company to a newly formed (0r even existing)… Continue Reading

You Can’t Make A Good Deal With A Bad Chinese Company

Posted in China Business, Legal News

The title is stolen from the Warren Buffett line, “You can’t make a good deal with a bad guy, regardless of any piece of paper. And it is so true. Our China lawyers are always telling our clients the following: Legitimate Chinese companies do not want to get sued. In our experience, they are even… Continue Reading

Hiring A China Employee Through A Dispatch Company. Don’t Forget About Your IP.

Posted in Legal News

Despite the increasing restrictions on using employee dispatch companies for hiring of “your” China employees, our China lawyers have seen very little by way of a slowdown in smaller companies choosing to go that route, especially if doing so will allow them to delay having to form a China WFOE that much longer. The legal… Continue Reading

How To Write A China Contract. Liquidated Damages.

Posted in Legal News

Many months ago, I was in on an email exchange between a couple of our China lawyers regarding a liquidated damages provision in a product development agreement where our client was paying a Chinese manufacturer a lot of money to develop a new product that could be taken into production. Our biggest concern with the… Continue Reading

Cheated By China. Check Your Insurance.

Posted in China Business, Legal News

Though we have written about this scam a few times previously, I HAVE to write about it again because it just keeps happening, in even greater numbers and in even more diverse circumstances. And this is the one fraud to which I have time and time again seen extremely savvy and sophisticated companies fall prey…. Continue Reading

Enforcing China Court Judgments Overseas. Yeah, It’s Possible.

Posted in Legal News

When it comes to enforcing US court judgments in China, the law has been clear and remains clear. China won’t do it. Not now. Not later. Maybe not ever. For more on this, check out the following. Chinese Companies Can Say, “So Sue Me.” Taking Judgments To China (And Korea), Let’s Not Sue Twice Will… Continue Reading

China Employment Contracts. The Basics On Probation.

Posted in Legal News

There is some truth to an old expression about China employees, “once hired, never fired.” Terminating a Chinese employee is rarely going to be easy, but if that employee is on probation, you do have a better chance of not getting sued for doing so. China does allow probationary periods for Chinese employees, but only… Continue Reading

Suing Chinese Companies For Product Liability. It Is Possible….

Posted in Legal News

In the last couple of years, we have seen a tremendous increase in cases involving U.S. companies (and lawyers) wanting to sue Chinese companies for Chinese manufactured product that has injured someone. These cases coming to us typically involve one of the following scenarios: A US retailer or importer is being sued by someone injured… Continue Reading

China Business The Right Or The Wrong Way. The Home Office/China Office Tension.

Posted in China Business, Legal News

One of the tougher issues we as China lawyers face is what we call the Home Office/China Office tension. These situations are tough for us because we are so often put smack dab in the middle. Let me explain. On the one side you have the US home office, often replete with well trained in-house… Continue Reading

China Attorneys With LLM Degrees. Where Are The US Law Jobs?

Posted in Legal News

A while back we brought on a fully qualified Chinese attorney as a paralegal in our law firm. This person was working on obtaining her paralegal certificate at a local university. I asked her why she was pursuing a paralegal certificate, rather than going for an LLM degree (an advanced law degree), as is commonly… Continue Reading

Paying Your Non-Chinese Employees In Your China WFOE: Splitting The Salary Part 2

Posted in Legal News

This post is the second in a series of posts by Grace Yang, one of our China lawyers resident in Beijing. Grace has her B.A. from Beijing University and her J.D. (law degree) from the University of Washington. Grace is licensed to practice law in Washington and New York States and she will be sitting for… Continue Reading