I spoke yesterday at the 2010 U.S. China Business Conference in Atlanta. I was tasked with talking about the legal issues American businesses face in China and the legal issues Chinese businesses face in the United States. I was given ten minutes. The below is my speech: I am going to be talking about the
China Represenative Offices Why Representative Offices in China Seldom Make Sense I am always saying that for every 100 China WFOEs and Joint Ventures my law firm helps set up in China, it does one representative office. Why so few, when it is generally agreed that representative offices are the easiest type of offices for
The International Business Law Advisor Blog did a post, entitled, 6 Key Provisions You Should Include in Your International Licensing Agreements. I borrow extensively from that post for this one, but tailor it more towards China. I list out IBLAB’s tips in bold and then provide its explanation in normal font. My comments in italics
David Wolf at The Silicon Hutong blog just came out with a superb post riffing on the meaning of guanxi. The post A Few Notes on Guanxi [Link no longer exists] more accurately and concisely defines guanxi than anything I’ve seen. It is so good and so important, I feel I have no choice but
Our clients are always talking about where to invest in Asia, even more so in light of recent concerns about China no longer being a preferred destination for foreign investment. I have argued consistently that China is one of the best places for foreign investment in Asia. The World Economic Forum’s most recent Global Competitiveness
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
As China moves from “factory to the world” to a growth engine for the world, the number of foreign businesses wanting to sell into and within China is rapidly increasing. These days, product companies that contact our law firm are just as likely to ask about selling their product in China as to ask how
Why NDAs Fail in China: Use an NNN Agreement Instead A few years ago, in The Power of China-Specific NNN Agreements, I explained why China NNN Agreements are so important when doing business with China. Within a few hours of that post, one of my law firm’s China lawyers pointed out that if we are
Protecting Your Business When Manufacturing in China This latest recession has caused many businesses to look to cut costs by outsourcing their product manufacturing to China. Unfortunately, many of these companies now engaging in outsourcing their manufacturing to China fail to take the legal steps necessary to protect themselves. When problems arise, they can do
