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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

The Fake China Law Firm Scam

Posted in Legal News

Way back in 2006, I wrote about fake China law firms in China  Where Even The “Law Firms” Are Fake. In that post I talked about fake Chinese lawyers taking money from American companies for trademark registrations: There are those who take money to file trademarks in China and then simply run away. A new… Continue Reading

China Consultant Or All Knowing China Expert

Posted in Basics of China Business Law, Legal News

China’s recently stepped up efforts to root out unregistered foreign businesses in China has caused a rash of China consultants to retain the China lawyers in my firm. From our work in forming China WFOEs (wholly foreign owned entities) for these consultants, we have discovered that many China consultants are falling dangerously short in various… Continue Reading

Short Work Stays In China: Work Visa Now Probably Required

Posted in Legal News

In November 2014, China’s Ministry of Human Resources and Social Security (“MHRSS”), Ministry of Foreign Affairs, Ministry of Public Security, and Ministry of Culture jointly published the Circular on the Issuance of Interim Processing Procedures Regarding Foreigners Who Enter China to Complete Short-Term Tasks (人力资源社会保障部 外交部 公安部 文化部关于印发《外国人入境完成短期工作任务的相关办理程序(试行)》的通知), effective January 1, 2015. In this post,… Continue Reading

China Contract Signing Formalities: You Are Not In Kansas Anymore

Posted in Basics of China Business Law, Legal News

Contracts in China are more formal than contracts here. This is particularly true with how they should be signed. When we draft a contract between an American client and a Chinese company, we instruct our client on what it should do to ensure a proper signing by its Chinese counterpart. This instruction is usually along… Continue Reading

Terminating China Employees: The Basics

Posted in Basics of China Business Law, Legal News

Under China’s labor laws, terminating a China employee who has completed his or her probation period is virtually never easy. Termination usually requires good cause and a severance payment. Most importantly a China employer must be able to show that any unilateral termination was based on statutory grounds. In this post, I lay out some basic… Continue Reading

China Joint Ventures: How To Give Away Your IP In China, Part 2

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

  Last month I wrote a post entitled, How To Give Away Your IP In China, explaining how foreign companies so often “gift” their intellectual property to their Chinese manufacturers by not initially making clear in a Chinese language contract who will own the intellectual property that will be developed jointly by the Chinese manufacturer and… Continue Reading

The DOJ In China: Second-Guessing Corporate Cooperation*

Posted in Legal News

For years, China has featured prominently in the US Department of Justice’s investigations under the Foreign Corrupt Practices Act, or FCPA. That’s not news to the readers of this blog, who can refresh their memories here, here and definitely here. But as a colleague recently reminded me, there is a big difference between settling an… Continue Reading

What Your Chinese Operations Needs To Know About Iran Sanctions

Posted in China Business, Legal News

Recent news about a framework agreement between Iran, the United States, China, France, Germany, Great Britain, and Russia raises important geopolitical issues – and also important business considerations. The agreement basically rests on two important representations. Iran would allow monitoring of its nuclear programs and the United States and Europe would agree to eliminate restrictive… Continue Reading

Foreign Investment in China: Beware of Local Governments Bearing Gifts

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

Recent news reports suggest that Foxconn is having trouble securing investment benefits promised them by the Zhengzhou government. The rumor is that Foxconn was lured to Zhengzhou with promises of over 5 billion RMB in tax benefits and related incentives. These incentives were granted in direct opposition to central government policy. Beijing found out and laid… Continue Reading