How to Avoid China Factory Scams
How to prevent China manufacturing scams: Due Diligence, China-specific manufacturing contract, good payment terms.
Dan Harris is a founding member of Harris Sliwoski, an international law firm where he mostly represents companies doing business in emerging market countries. Most of his time is spent helping American and European companies navigate foreign countries by working with the international lawyers at his firm in setting up companies overseas (WFOEs, Subsidiaries, Rep Offices and Joint Ventures), drafting international contracts, protecting IP, and overseeing M&A transactions.
In addition, Dan writes and speaks extensively on international law, with a focus on protecting foreign businesses in their overseas operations. He is also a prolific and widely-followed blogger, writing as the co-author of the award-winning China Law Blog.
How to prevent China manufacturing scams: Due Diligence, China-specific manufacturing contract, good payment terms.
About a year ago, I spoke at a Berkeley Law School class regarding hostage taking in China. I presume I was brought on to speak about this because I helped Professor Chris Carr write an academic article on hostage taking in China, Commercial Hostages: Local vs. Foreigner Business Disputes in China. At my Berkeley talk,
China company due diligence is needed now more than ever.
What should go into China Technology and Trademark Licensing Agreements between foreign and Chinese companies. The key terms are usually the following: Approved products; Territory; Royalty payments; Payment Terms; Term and Termination.
The Five keys to succeeding in a foreign country.
Third party hiring agencies and PEOs are risky for China.
The contracts Chinese companies provide to their foreign counter-parties are typically terrible because the Chinese company wants them to be terrible.
Avoid China contract problems with the proper company chop or seal.
The above is a direct quote from a client for whom my law firm is now in the process of helping his company move its production from China to Mexico. He said this about China and Mexico, right after setting saying that he “is done with China” because his company is unable to sell a