When I was in Shenzhen last month, I had a long lunch with China manufacturing guru, Renaud Anjoran of Sofeast. During our lunch, we talked extensively about what we are seeing in China manufacturing, particularly in the electronics and Internet of Things sectors. As we always do, we shared horror stories and from those the lessons
Many believe that forming a China WFOE consists mostly of filling in lines on an application and submitting it to a China government office and then sitting back and waiting. If you share this belief, you are, among other things, ignoring all that goes into deciding how to manage the WFOE once formed. I was
For the last few months, I alone have been averaging a call or email a day from someone inquiring about getting money out of China. Yesterday’s calls were typical. One was from a realtor wanting to know how the Chinese buyer of a two-million-dollar house could get her money out of China to pay for it.
This post focus on two commonly held misconceptions regarding “partnering” with Chinese companies in deals that involve foreign technology. Due to a partnership relationship, the foreign side often wrongly believes it is somehow better protected against IP theft. The foreign side then lets down its guard, only to learn that its China partner has appropriated
China Working Hours and Overtime Issues Navigating the complex landscape of China’s employment laws is a crucial task for foreign companies operating in China. Among the many challenges these businesses face, understanding and complying with China’s employment laws, especially those pertaining to working hours and overtime, are paramount. Misconceptions about these regulations can and do
The Wall Street Journal wrote how China is increasingly becoming the venue of choice for foreign company patent litigation. That's right. China.
The PRC Ministry of Human Resources and Social Security recently released a set of rules regarding providing public notice of China employer labor violations (《重大劳动保障违法行为社会公布办法》). The goal of these new rules is to deter employers from violating China’s labor and employment laws and regulations. These rules will take effect on January 1, 2017, and they
It is far cheaper to avoid China employment law problems than to deal with one that has arisen. If you follow the following eight rules, your chances of having a China employment problem will markedly decrease. 1. Use written employment contracts. China employers without a written employment contract are exposing themselves to penalties, administrative fines and the risk of
Just read an article, What do Suppliers do with Rejected Products? that starts with the following nightmare scenario: Imagine you are walking down a busy street in China full of vendors. Suddenly, you notice something: your company’s flagship product, distinctive luxury handbags, is being sold by a random merchant you have never met. Upon closer inspection,
With the last quarter of the year approaching and with China increasing its scrutiny of foreign businesses operating in China, now seems like the right time to talk about what foreign businesses (WFOEs, joint ventures, representative offices) should be doing to protect themselves on the China compliance front. If you have familiarized yourself with applicable
