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China Employment Contracts: Ten Things To Consider

Posted in Basics of China Business Law, Legal News

Following in the footsteps of our recent post Forming a China WFOE: Ten Things To Consider, I present to you: China Employment Contracts: Ten Things to Consider. Here goes, the top ten things you should consider when employing anyone in China. Term of employment. China’s employment system is a contract employment system. This means each employee… Continue Reading

China, Indiegogo, Kickstarter, The Internet of Things, Marshall Goldsmith, and Suing Your Lawyers and Sourcing Agents Because It Is Getting Really Really Bad Out There

Posted in China Manufacturing, Internet, Legal News

One of our internet of things hardware clients recently told me how none of what he has learned about the need to protect his intellectual property from China had ever been even hinted at in any of the many IoT seminars he had attended nor in the Indiegogo Hardware Handbook he had “religiously consulted” before he did… Continue Reading

China Work Injury Insurance: A Few New Rules

Posted in Legal News

Late last month, China’s Ministry of Human Resources and Social Security (“MOHRSS”) implemented  Opinions on Several Issues Concerning the Implementation of the Regulation on Work Related Injury Insurance (II)(人力资源社会保障部关于执行《工伤保险条例》若干问题的意见(二))(the “Opinions”). The Opinions offer some (but as is fairly typical, not enough ) clarification on various current regulations. This post highlights a few key aspects of… Continue Reading

China Employer Rules and Regulations and Why You Must Have One

Posted in Basics of China Business Law, Legal News

As I wrote in China Employment Contracts: If Yours Are Not Current, You Have A Problem, China employers must have written labor contracts with each of their full-time employees. Not having a written labor contract exposes employers to penalties (to their employees) administrative fines and the risk of being deemed to have entered an open-term labor contract with… Continue Reading

Worthless China Contracts: First, Let’s Sue All The American Lawyers

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

No more Mr. Nice Guy. In the last year or so, China has rapidly stepped up its technology game. It’s larger, better known companies (and many of its smaller and lesser known companies as well) are rapidly seeking to up their technology game. To put it bluntly, their first goal is to get high end… Continue Reading

China Technology Licensing Versus China Joint Ventures: Same Same

Posted in China Business, Legal News

My firm’s China lawyers have recently been hit with an influx of American tech companies with the following characteristics: They have a good, but not great technology (chip, internet of things, environmental, hardware or software). They were heavily funded but they have only around six months of cash left, at their present burn rate. They… Continue Reading

Getting Sued in China: Get Ready Now

Posted in Legal News, Litigation and Arbitration

Yesterday’s post, China Civil Litigation: Tain’t No Big Thing, was on how litigation risks for foreign companies doing business in China or with China are considerably lower than, for instance, the litigation risks those companies face by doing business in the United States or with the United States. My explanation for this was two-fold: one, damage… Continue Reading

China Non-Competes: How To Choose Your Contract Damages Amount

Posted in Legal News

In previous posts, I talked about various legal issues surrounding China employee non-compete agreements/provisions. This post briefly explains how a non-compete contract damages provision works. Generally speaking, an employer in China is not allowed to impose a penalty on one of its employees, not even by agreement. An employee non-compete agreement is one of the… Continue Reading

China’s New Online Publishing Rules

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

On March 10, 2016, the PRC government will impose new rules to govern online publishing in China. These are the Online Publishing Service Administration Rules (OPS Rules), promulgated by the State Administration of Press, Publication, Radio, Film and Television (SAPPRFT) and the Ministry of Industry, Administration and Technology. Under the rules, all entities that intend… Continue Reading

China Air Pollution: It is YOUR Issue Too

Posted in China Business, China Manufacturing, Internet, Legal News

Thought-provoking article by InTouch Quality on why foreign companies doing business in China should consider their connection to China pollution. The article is entitled, China’s Pollution: A Story of Imports and Canned Air and it starts by discussing China’s well-known pollution problems and then segues into how “importers share some of the responsibility for growing pollution concerns.” The article… Continue Reading

China Employee Vacation Law

Posted in Legal News

Under Chinese labor laws, employees who have worked continuously for one year are entitled to paid annual leave (年休假). The statutory vacation period, based on years of service, is as follows: More than 1 and less than 10 years service: 5 days vacation More than 10 and less than 20 years service: 10 days vacation… Continue Reading

China and the Internet of Things: A Love Story

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

I posted this article on our China Law Blog Facebook page yesterday: I have seen the future of media, and it’s in China. That spurred the following comment from one of our readers: Wow, you posted something positive about China. Congratulations. We have been unusually downbeat about China both here and even more so on our Facebook… Continue Reading

China Product Development Agreements

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

Foreign companies that outsource their product manufacturing to China often co-develop their products with Chinese manufacturers. In some cases, the foreign company has completed its product development and the Chinese manufacturer’s only involvement is in setting up to manufacture the product in high volumes. In other cases, the foreign company side has only a general product “idea”… Continue Reading

Getting Money out of China by Losing in Arbitration

Posted in China Business, Legal News, Litigation and Arbitration

File this one under “just when I thought I had seen/heard everything.” A month ago (exactly) we wrote about how it is getting a lot tougher to get money out of China. See Getting Money Out of China: What The Heck is Happening? Two weeks later, our own Steve Dickinson was interviewed by Bloomberg for a video… Continue Reading

Having A Hong Kong Business Does NOT Make You Legal in Mainland China

Posted in Basics of China Business Law, Legal News

As China steps up its tax and deportation crackdown on foreign companies and foreigners doing business in China without a China WFOE, our China lawyers are getting a massive (well once a week anyway) influx of emails from people looking for inexpensive solutions. Let me explain. If you are doing business in China without a… Continue Reading

China Employee Probation

Posted in Legal News

With China’s economy slowing, our clients with employees in China are focusing even more on hiring and firing flexibility. One of the best ways to maintaining employee flexibility (at least for at time) is to take advantage of a probation period to evaluate an employee’s performance. If the employee does not work out, you generally may… Continue Reading

China Product Development, Part 2

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

As I discussed in yesterday’s post (China Product Development) product development in China is a risky process. To properly address those risks, a development agreement enforceable in China is required. A development agreement is intended to cover the very important period between the NNN agreement stage when you are testing the waters and the vendor… Continue Reading