China has liberalized its minimum capital requirements for WFOEa and the amounts required have been reduced in many Chinese cities. But even if the Chinese government is going to let you get away with very little registered capital, you may want to pay more. You should think about the registered capital you should be paying
Media reports state that online gambling in China soared during the recent World Cup. The punters put their money into online gambling on the World Cup, with revenue at China’s government run lottery site increasing by over 80% during this period. The general ban on gambling in China is subject to one exception. The Chinese
In China, employment offer letters (录用通知书) are written documents employers give to employees stating the employer’s intent to enter into a labor relationship with the employee. These offfer letters typically propose the employee’s work title, work location, wages, and the term of the employment arrangement. Despite the relatively common use of employment offer letters in
By Lucas Blaustein* U.S. agricultural exports to China have increased by 120% since 2008, to nearly 28.9 billion dollars in 2013 and agriculture now accounts for nearly 24% of US-China trade . Since China’s admittance to the World Trade Organization (WTO), China and the United States have increasingly traded their comparative advantages. Daily, Chinese made
Many of our clients that went to China years ago to have their products made there are now interested in selling those same products within China. One way to do that is to form a WFOE for selling the products, but oftentimes the cost and the hassle of doing that is not worth it, especially
China’s labor law provides for a 44-hour work week, but its regulations provide for a 40 hour work week and most municipalities enforce the 40-hour work week, but recognize that this workweek may not be practical for certain employees. A “flexible” working hours system is thus permitted for “senior management” as an exception to this
The goal of this post is to start a discussion on how and why to diversify away from China. Does a China plus one strategy make sense and if so, why? Earlier this week, I wrote an article, China Plus One: How Vietnam’s Riots Help American Businesses, the theme of which is that Vietnam —
The Three Fundamental Rules for China Contracts To ensure that your contracts are enforceable in China, it is important that they adhere to these three fundamental rules: Jurisdiction: Always specify a court within China for resolving legal disputes. Governing Law: Ensure that Chinese laws govern the contract. Language: Use Mandarin Chinese as the official language
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) enforces U.S. economic and trade sanctions. OFAC sanctions generally block all U.S. individuals and entities – including in some cases U.S. companies’ foreign subsidiaries – from transacting business with comprehensively sanctioned countries, such as Cuba, Iran, North Korea, Russia, and Syria, or sanctioned
Just got off the phone with a client who asked me to provide it with a “term sheet template” for buying product from a Vietnamese manufacturer. We generally advise our clients reach agreement on “key terms” before we start drafting their Manufacturing Contract. It is not productive for us to start drafting a manufacturing contract
