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Category Archives: Legal News

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China Company Indemnification From Product Defects. Yeah, Whatever.

Posted in Legal News

American lawyers love using indemnification provisions in product manufacturing agreements. They love them so much that they often use them in China manufacturing contracts (OEM Agreements) even though they do not work well at all there. American lawyers often put in a provision stating that if there is a product recall, the Chinese company must indemnify the… Continue Reading

China Copyrights: China Piracy Means Whack A Mole

Posted in Legal News, Recommended Reading

Just read a really good, really comprehensive article on China copyright law with a focus on the music industry, entitled, Whack-A-Mole: A Brief History of Music Piracy in China. Its conclusion says it all, but I certainly suggest you read the whole thing: In short, piracy’s root causes evade simple explanations and solutions, and piracy remains… 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

Your China Expat Employee Contract. It Depends….

Posted in Legal News

Your China expat employees are covered by China’s Provisions on the Employment of Foreigners in China (《外国人在中国就业管理规定》) (hereinafter “the Provisions”). These provisions require you comply with applicable Chinese law regarding such things as working time, rest and vacation, labor safety and health, and social insurance. What is left open to question, however, is whether matters… 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

China Employee Leaving Employment Early. Forget About Payment In Lieu Of Notice

Posted in Legal News

China allows employees to terminate labor contracts by giving 30 days written notice to the employer during the standard employment term or 3 days written notice during the probation period. Our clients occasionally ask us whether it is permissible under Chinese law to require an employee to pay a certain amount of money (代通知金 or… 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

Why Alibaba Is Good For China VIEs

Posted in Legal News

Our China lawyers have a long history of skepticism regarding China VIE structured entities.  In Buying Into A China VIE. What Me Worry? we had this to say about them: Years ago, we here at China Law Blog made clear our views on VIEs and nothing about those views has changed.  For that reason, and because VIEs… 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

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 Non-Competes. Oh, Oh, The Price You’ll Pay

Posted in Legal News

A Non-Compete Agreement is a contract where one party agrees not to compete with the other. These agreements reduce the likelihood of someone using information you provide them to compete against you. Non-compete agreements are fairly common between Western companies and their more important employees and it is common for those Western companies to want similar… Continue Reading