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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

Made In China?

Posted in China Business, Legal News

  Before you read this post, take a moment to look at the back of your computer monitor or handheld device. Do you see a tag that states “Made in China?” My computer monitor does; my iPhone states it a little differently as Assembled in China. For products imported into and sold in the United… Continue Reading

China Bank Technology Rules: Not the Same Old Thing

Posted in China Business, Legal News

The latest hot issue in China/U.S. trade relations is the highly restrictive bank technology rules recently announced by PRC banking regulators. As reported in the foreign press, these rules will require all Chinese banks prove that their computer technology and software is “secure and controllable.” The following are the most controversial provisions: The source code… Continue Reading

How To Give Away Your IP In China

Posted in Basics of China Business Law, Legal News

We represent a large number of foreign companies that do OEM manufacturing in China. In our discussions with these companies, one of the first issues we raise is how to protect the intellectual property of the foreign party. Foreign designers of products are quite properly concerned that by using a Chinese manufacturer, they are simply training… Continue Reading

China Manufacturing Contracts: Made In China Doesn’t Have To Mean “Dangerous”

Posted in Basics of China Business Law, Legal News

We are constantly — both on this blog and in the real world — extolling the virtues of foreign companies having appropriate contracts with their Chinese manufacturers. Yesterday provided me with two instances highlighting that need.  The first was an email from a company asking whether my firm’s China lawyers could assist them in seeking… Continue Reading

Exporting From China By The Numbers: HTS (US)

Posted in China Business, Legal News

Companies deciding whether to export products from China must carefully weigh immediate and long-term profit potential against the costs of shipping and entering their products into foreign markets. The most important considerations are whether the laws of China and the foreign country allow the products to be traded and, if so, whether licenses must be… Continue Reading

China Distributor Relationships: Why Don’t They Get No Respect?

Posted in China Business, Legal News

Yesterday’s post China Distributor Agreements: A Relatively Easy Way To Sell Your Products Into China, was on how companies can sell their products into China via a China-based distributor. On Linkedin, in response to that post, Shanghai businessperson, Bill Cosgrove wrote the following: Dan, You make a compelling case for distributors. Why do you think the distribution… Continue Reading

Beijing Touts “Cyber-Sovereignty” In Internet Governance: Global Technology Firms Could Mine Silver Lining

Posted in China Business, Legal News

A Guest Post By Scott Livingston* It has been a difficult few weeks for global technology companies operating in China. Chinese officials strengthened the Internet firewall by blocking the use of virtual private networks (VPNs), reasserted demands that web users register their real names, and issued a new regulation requiring enhanced scrutiny of imported IT products… Continue Reading

China Arbitration: Second Thoughts on Clarity

Posted in Legal News

Steve Dickinson’s Monday post summarizes a spate of recent Shanghai Number 2 Intermediate People’s Court decisions and makes clear that in Shanghai, if a contract calls for arbitration by the CIETAC Shanghai subcommission, the one and only proper arbitral body is the Shanghai International Arbitration Center (SHIAC). I agree with Steve’s conclusion that the matter is now… Continue Reading

China Arbitration: An End To Uncertainty

Posted in Legal News

As we reported in earlier posts, international arbitration in China entered a period of uncertainty in 2012. See Will The Real CIETAC Arbitration Please Stand Up. For many years, Beijing based CIETAC controlled international arbitration in China. To expand its scope, Beijing CIETAC established sub-commissions in both Shanghai and Shenzhen. Tiring of the oppression of their… Continue Reading