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China Contracts: Why Hong Kong Courts Are A Really Big Mistake….Really Big.

Posted in Basics of China Business Law, Legal News

We continue to see contracts rendered unenforceable because the American or European party seeks to avoid application of Chinese law and enforcement in Chinese courts. By their own actions the foreign party guarantees the contract it drafted will be of absolutely no value to them. This is what is called “to be hoisted with one’s own… Continue Reading

Your Company Can Be Sued In China And That Matters

Posted in Legal News

A while back I got an email from a veteran China consultant I have known for a long time. Very prominent and very good at what he does. His email was essentially bragging about how he had managed to pull one over on Chinese factory that had hired him. Here is his email, with anything… Continue Reading

How to Execute a Chinese Contract So It Will Work

Posted in Basics of China Business Law, Legal News

A China-centric written contract is an effective tool for doing businesses in or with China. A first step in creating this effective tool is to carefully follow the rules for execution. Chinese courts are bureaucratic and formalistic. Make use of that tendency so that you can prevail. Don’t blunt the edge of your instrument with… Continue Reading

China Employment Contracts and the Double Wage Penalty

Posted in Basics of China Business Law, Legal News

China’s labor laws mandate that China employers must have written employment contracts with all of their full-time employees. If an employer goes more than one month without having a written employment contract with an employee, the employer will be required to pay the employee double the employee’s monthly wage and immediately execute a written labor contract with… Continue Reading

China NNN Agreements: Make Sure Yours Bites

Posted in Basics of China Business Law, Legal News

Last week, in China NNN Agreements and How to Give Them Real Teeth, I wrote about how you need to put teeth into your China NNN agreements. But what happens when you do? We have found that the use of a properly drafted NNN agreement dramatically reduces infringement by Chinese factories and litigation relating to these issues. Why is… Continue Reading

How To Protect Your Trade Secrets From China

Posted in Basics of China Business Law, Legal News

Our China lawyers draft more non-disclosure agreements (NDAs) than any other contract. We call our NDAs NNN Agreements because our clients nearly always need a lot more protection than an agreement that merely prohibits their Chinese counter-party from discussing our client’s trade secrets. The key component of our NNN Agreements is the non-compete portion, as it… Continue Reading

Exporting to China: Save On Your US Taxes With A DISC Election

Posted in Legal News

If you are an American company exporting products to China without an IC-DISC, you are probably overpaying on your US taxes. It’s that simple. The Interest Charge Domestic Sales Corporation (“DISC”) is a tax incentive that U.S. exporting companies should be using to reduce their overall U.S. tax liability. But very few do. IC-DISC Background. The… Continue Reading

China Manufacturing Agreements: Know These Nine Things

Posted in Basics of China Business Law, Legal News

Our China lawyers get a steady stream of emails from (mostly American and European) companies wanting to sue their China manufacturers. We respond by asking the potential client whether it has a written OEM Agreement with the Chinese manufacturer, whether that agreement is in Chinese, and whether the Chinese manufacturer signed and chopped that agreement…. Continue Reading

China IP Protection: The Force Is Strong With This Blog Post

Posted in Basics of China Business Law, China Film Industry, Legal News

Last week Disney staged a publicity stunt on the Great Wall of China, arraying 500 Imperial stormtroopers statues in formation to promote the upcoming film Star Wars: The Force Awakens. (Perhaps you’ve heard of it?) I might be a bit jaded, but when I see a company making a huge promotional push in China, the… Continue Reading

Eight Basic Rules For Your China Employment Contracts

Posted in Basics of China Business Law, Legal News

1. Use a written employment contract.  The employer penalties for not doing so can (and usually are) huge. This one is a no-brainer. Oh, and China pretty much does not have independent contractors. See China’s Tax Authorities Want You. 2. Use a China-centric employment contract. Your employment contracts should be written for China. Though it occasionally makes sense… Continue Reading

The Calm Before the TPP Storm

Posted in China Business, Legal News

Over the past year, the Trans-Pacific Partnership Agreement (“TPP”) has been the subject of intense debate and considerable international press. Understandably so as TPP represents intense efforts by twelve countries representing nearly forty percent (40%) of the world’s Gross Domestic Product (“GDP”) — but not China — to proactively reduce or eliminate their countries’ barriers… Continue Reading

Starting A China Business: The Eight IP Questions You Should Be Asking

Posted in Basics of China Business Law, Legal News

The below is a modification of a ten item list on the Heerlaw website. That list was geared towards Canada; this one is geared towards China. The Heerlaw list starts out advising new companies to concern themselves “with intellectual property rights at the start of any new business.” It goes on to note that if your new… Continue Reading

China Contract Damages: What To Do, What To Do

Posted in Basics of China Business Law, Legal News

Just noticed that an article I wrote with Chris Carr (an international business law professor at Cal Poly) is now live on Supply Chain Management Review. The article is entitled, China Supply Chain Contracts: The Contract (Liquidated) Damages Provision and I just love the subtitle the magazine has given it: A well crafted and reasonable liquidated damages… Continue Reading

Best Practices for Doing Business in China: The Two Minute Version

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

I often “clean” my computer on Saturday and in doing so today I found an email that contained my notes from an AmCham talk I gave four or five years ago in Beijing, focusing on what it takes to conduct business in China successfully. If I recall correctly, I was on a panel with a… Continue Reading