Header graphic for print
China Law Blog China Law for Business

Tag Archives: JV

Four Keys To A China Joint Venture That Works

Posted in Legal News

Not sure why joint ventures seem to go in waves, but our China lawyers have been getting more than usual lately. I suspect it has something to do with increased flexibility on the Chinese side as a reaction to recent fears regarding China’s economy. In any event, our recent joint venture work has gotten me… Continue Reading

How To Do A China Joint Venture. Take Your Sweet Time.

Posted in China Business, Legal News

As regular readers know, both my co-blogger (Steve Dickinson) and I have written extensively on China Joint Ventures, both here and elsewhere. This is because we find them fascinating, mostly because they are so difficult to make work. Here are some of our previous writings on joint ventures in China that focus on when to… Continue Reading

China Joint Ventures Are Back And Contracts Are The New In Thing. The New Reality Of China Foreign Investment.

Posted in China Business, Legal News

During the first 25 years of China’s opening up process, joint ventures were the favored vehicle for FDI in China. In 2005, the favored form of investment shifted away from JVs to direct investment through WOFEs (Wholly Foreign Owned Entities). During the last year, however, foreign SMEs have been shifting away from WFOEs and back… Continue Reading

FICE — A China WFOE Or Joint Venture By Any Other Name.

Posted in Legal News

A couple of years ago, we did a post on FICEs, entitled, The China FICE — Foreign Invested Commercial Enterprise.  The reason we did that post then (and the reason we are doing this post now) was to clear up common confusions regarding FICEs, which really are nothing more than a subset of Wholly Foreign Owned… Continue Reading

When In China …. China Labor Law Controls

Posted in Legal News

Just received an email from a friend stating/asking the following (note that I have changed some elements of the email to strip it of any even potentially identifying information): I am heading off again to work for a few years at our China Rep Office.  My new employment contract with the head office says that… Continue Reading

How To Form A China Company (WFOE or JV). Hong Kong Entities. They’re Baaaaack. Part II.

Posted in Uncategorized

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

How To Form A China Company (WFOE or JV). Hong Kong Entities. They’re Baaaaack.

Posted in Legal News

By: 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

Top Ten China Mistakes

Posted in China Business

Came across a really good list of mistakes businesspeople make in China.  The list, entitled, “Top Ten Mistakes Businessmen Make in China,” was compiled by  Stanley Chao, of All In Consulting. It really is a nice collection of tips and I present them below, with my comments in italics. Take the trust factor out. All actions… Continue Reading

China Joint Ventures And WFOEs. Don’t Jump The Gun On Your Capital Contribution.

Posted in Legal News

Not sure why (the bad economy?) but we have been getting a rash of China joint venture deals and possible deals over the last six months or so, many of which involve a United States company wanting to enter into a Joint Venture with their China manufacturer so as to work jointly on manufacturing and… Continue Reading

Doing Business In China By Starting A Business In China. The Legal Basics.

Posted in Basics of China Business Law, Legal News

One of the most common calls my law firm receives is the one from someone saying that they want to “start a business in China.” The first thing we do with that sort of caller is to seek to ascertain whether a China business is actually necessary.  Forming and then operating a business entity in… Continue Reading

How To Survive A China Joint Venture. Or Not.

Posted in Legal News

Earlier this week, I was talking with a client regarding a potential China Joint Venture (JV).  In our initial conversation, I told him of how difficult and yet important it is to do joint ventures correctly from a legal perspective and of how negotiating joint venture deals can be so time consuming and then had… Continue Reading

China Joint Ventures Tips. You Have Been Warned.

Posted in China Business

The Foreign Entrepreneurs in China blog is in the midst of a very worthwhile three part series, entitled, “A China Joint Venture Survival Guide. 22 Facts and 22 Practical Tips.” The series is now at tips 9 through 15 and I like all of them. Not only are they good tips for those contemplating doing… Continue Reading

The Most Common China Law Issues.

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

Clients, potential clients and the press are always asking me what foreign companies that do business in China need to know to stay out of legal trouble.  Next time I get such a question, I will refer them to the list below as it sets out the most common legal issues foreign companies face when… Continue Reading

How To Form a China WFOE. Scope Really Really Matters.

Posted in China Business, Legal News

Pretty much every week my law firm gets contacted by an American or European company with big plans for China. Almost invariably (and this is a good thing), this company has spent tens of thousands of dollars in researching China for their business and in travelling back and forth to China to scope things out…. Continue Reading

China Joint Ventures. Who’s Your Partner?

Posted in Legal News

By 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

The China Joint Venture. It’s BACK!!!

Posted in Legal News

AmCham 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

Your Chinese-American VP Don’t Know Diddley ‘Bout China Law And I Have Friggin Had It.

Posted in Legal News

Before my law firm hires anyone, we make sure they do not have a problem with swearing. Because I do. I know I shouldn’t, but darn, certain swear words are absolutely critical for communication. But when I started this blog, I swore (pun intended) I would strive never to write anything I would not want… Continue Reading

Danone/Wahaha — China Business Lessons To Be Learned

Posted in China Business, Recommended Reading

As regular readers know, China Law Blog loves the Danone-Wahaha dispute, having written the following posts on it: China’s Joint Venture Jeopardy Danone v. Wahaha — Which Of Us Is The Most China Rookie? Danone and China’s Wahaha: A Lecture on How (Not) to Make Allies Enemies New York Times And Steve Dickinson On The… Continue Reading

Danone v. Wahaha: China Business And Law Lessons To Be Learned

Posted in Legal News

This month’s China Economic Review contains an article by China Law Blog’s own Steve Dickinson on the Danone Wahaha dispute. The article is an offshoot of a speech Steve recently gave for JP Morgan (Hong Kong) and it is entitled “Danone v. Wahaha: The lessons to be learned from the tensions within China’s largest beverage… Continue Reading

A Legal Checklist For China Business

Posted in Legal News

Lawyers love checklist and China lawyers are, of course, no exception. Me, I love clients, not only because they are the lifeblood of my law firm and thus my livelihood, but also because they so often are the ones who stimulate the ideas for this blog. I just spoke with a client who asked me… Continue Reading

Entity Formation For China Real Estate Investing

Posted in Legal News

This is the second in my series detailing the presentations made at the Doing Business in China Seminar in SFO last week.  This post is on the first day presentation given by Marshall Horowitz, the head of Dreier, Stein & Kahan’s Asia Pacific Practice Group. Marshall began his career with Coudert Brothers in Hong Kong… Continue Reading

Danone v. Wahaha — Which Of Us Is The Most China Rookie?

Posted in Legal News

‘You sit by yourself grasshopper. What do you think of?’ -Master Po ‘My mother, my father. Both gone. I am alone.’ ‘You hear the flock of birds flying overhead? You hear the fish? The beetle?’ To all of this the young Caine nods. ‘In this crowded place you feel alone. Which of us is the… Continue Reading

Foreign Ownership Of Real Estate In China/China’s New Forex Rules

Posted in Legal News

In July 2006, the Chinese government issued rules prohibiting foreign individuals and companies from directly owning commercial real estate in China. Just this month, China’s State Administration of Foreign Exchange (“SAFE”) issued new foreign exchange rules. In my experience dealing with real estate investors here in Shanghai and elsewhere in China, both of these rules… Continue Reading