Less than a month ago, we wrote a post, entitled, How To Form A China Company (WFOE or JV). Hong Kong Entities. They’re Baaaaack. The gist of that post was that my law firm was now favoring the forming of Special Purpose Entities in Hong Kong to hold the soon to be formed Mainland China Wholly Foreign… Continue Reading
Tag Archives: China JV
How To Handle Chinese Negotiating Tactics. Part Three.
Posted in China BusinessBy: Steve Dickinson This is the final of our three part series on how to handle Chinese negotiating tactics. Part One can be found here. Part Two can be found here. Following on my previous two posts on Chinese negotiating techniques, in this post I will discuss two additional and common techniques used by Chinese companies to drive… Continue Reading
How To Form A China Company (WFOE or JV). Hong Kong Entities. They’re Baaaaack.
Posted in Legal NewsBy: Steve Dickinson When making a WFOE (Wholly Foreign Owned Enterprise) or JV (Joint Venture) investment in China, the investor must consider: who will be the shareholder in the PRC entity? Will the investor invest directly, or will the investor create a special purpose subsidiary company (an SPV or Special Purpose Vehicle/a/k/a SPE or Special… Continue Reading
Eight Big Mistakes To Avoid In China.
Posted in China Business, Legal NewsOne of the favorite topics among China lawyers is the big mistakes they have seen their clients, rejected clients, and others make when trying to navigate China. The discussion usually transpires with one attorney telling the facts, with the others then giving a knowing laugh and nod and then trying to top it. Had this… Continue Reading
How We Really Feel About China, Part II: Joint Ventures. We Love Them AND We Hate Them.
Posted in Legal NewsThis is part II of our relatively new series setting forth how we “really feel” about the issues that have generated controversy on our blog over the years. Part I dealt with guanxi and the comments to that post alone have made it a great read. We started this series because “we have taken many… Continue Reading
China Law. Making Money Off The Misery Of Others.
Posted in Legal NewsA truism about lawyers is that we benefit when the economy is either rising or falling, so long as there is change. I was talking with a China lawyer friend the other day regarding his firm’s very small China office and we both talked of how we were getting all sorts of work related to… Continue Reading
China Joint Ventures. Who’s Your Partner?
Posted in Legal NewsBy Steve Dickinson The Chinese Supreme Court recently issued a set of regulations to be used in court cases involving disputes within foreign invested enterprises (最高人民法院关于审理外商投资企业纠纷案件若干问题的规定). These regulations came into effect on August 16, 2010. The official Chinese version can be found on the Supreme Court website here. Though the Regulations are technically concerned with… Continue Reading
Fear The China Joint Venture And Front-Load Your China Licensing Agreements.
Posted in Legal NewsThe China Economic Review just published a piece on China business relationships by Andrew Hupert, a professor of negotiation at NYU in Shanghai. The article is entitled, “Trouble in commercial paradise,” and its thesis is that Chinese companies usually view their relationships with Western companies as short-term. Hupert starts out by talking of how even… Continue Reading
The China Joint Venture. It’s BACK!!!
Posted in Legal NewsAmCham China just posted an interview here [mp3] of me regarding the return of joint ventures to China. Josh Gartner conducted the interview and he did a great job. Though joint ventures obviously never left China, there has definitely been a post-recession resurgence. Whereas in the past, most American companies that did joint ventures in… Continue Reading
China Rising In More Ways Than One
Posted in China BusinessSSL International PLC recently announced it is taking control of Qingdao London Durex Company Ltd. by buying out the 50 percent stake held by its former Chinese joint venture (JV) partner, Qingdao Double Butterfly Group Company Ltd. for around $37 million. The Qingdao London Durex Company Chinese joint venture had around $18 million in 2004-2005… Continue Reading
China is Booming — Go There for Growth, Part III, Retail Works Just Fine
Posted in China BusinessChina Daily just ran a story entitled, “Tesiro Unveils Sparkling Diamond Strategy,”discussing Belgian diamond brand Tesiro’s plans to spend 100 million dollars to open over 300 stores in China in the coming three to five years. The plan is for 20 to 30 per cent of the stores to be wholly owned by the company,… Continue Reading
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