Fascinating article by Matthew Robertson, Fellowes, American Stationary Giant, Brought to Its Knees in China. A couple of readers sent me the article and both commented on how it proves what “you are always saying about Chinese joint ventures.” I am not so sure it does. The article is about Fellowes, one of the leading
One of the things I love about blogging is how I get my stories. This one came to me via an international lawyer in Portugal who sent me a link on Buddha Steel (more on that later) from the China Accounting Blog. First, I am going to briefly discuss Variable Interest Entities (VIE) and how
The 19th Session of the 11th National People’s Congress last week revised the criminal code to make it a crime for a company to intentionally withhold employee wages. A company that does this is subject to criminal fines and the responsible individuals are subject to imprisonment for up to seven years. This is a significant
It sometimes seems all of our clients from China possess both a China and a United States passport. That’s an exaggeration, of course, but an increasing number of Chinese businesspeople appear eager for dual citizenship, especially as China makes it more difficult to leave. Though many in China covet a second passport, they often underestimate
Understanding Letters of Credit Avoiding Pitfalls in International Transactions Letters of credit are complex financial tools that can be risky if not properly understood. This post will explain what letters of credit are, delve into potential complications, and provide advice to avoid risks when using them for international transactions. A Cautionary Letter of Credit Tale
China is Killing Rep Offices For many years, Representative Offices (Rep Offices) were the go-to choice for foreign companies entering the Chinese market. They offered a faster, cheaper setup process and tax advantages compared to Wholly Foreign-Owned Enterprises (WFOEs). However, the landscape is changing rapidly. A recent conversation with a fellow lawyer friend revealed a
In Cashing in on Internet Censorship, CNN News writes how VPN companies is booming, thanks largely to China. The article discusses how “foreign companies are profiting from software that allows circumvention of government internet controls.” The article quotes one of my law firm’s international attorneys on how businesses that offer firewall avoidance software in China are
When the media and the blogosphere started going crazy writing about China’s plans to ban the eating of dog meat, I made clear to myself that I was going to stay out of it. There was just no way I was going to join that bandwagon. First off, I just did not see it as
There usually is one right way for businesses to act legally in China and if you are a foreign company, your best bet is to know and follow Chinese law. One of the problems businesses face in China is too many laws, some of which conflict with others. In Do Too Many Rules Erode the
The Matt Schivenza blog has a new post, Foreign Woman Removes Top At Beach in Qingdao, Causes Major Disturbance. [link no longer exists]. Matt’s post tracks what I was talking about this morning with a client: not nudity, but rule of law, and how foreigners that do business in China often misunderstand misperceive what China
