When I spoke in Ohio last year at a China function, I met Eric McGraw. Eric lived in China for seven years and he is now based in Columbus, Ohio, where he and his company help American companies navigate China and Chinese companies navigate the United States. Eric and I talked about the increase in
January 19, 2015 marks the date of the death of the VIE investment structure in China. On this day, China’s State Council issued a discussion draft of legislation setting out the plan for overhauling China’s Chinese foreign investment legal regime. The new system is set out in the PRC Investment Law Discussion Draft (the “Draft”),
China Arbitration Clauses Chinese companies frequently require contract disputes be resolved through arbitration, often designating CIETAC in China as the arbitral institution. Many foreign companies are apprehensive about the fairness of arbitration in China. However, it’s important to understand Chinese arbitrators weigh both legal correctness and ethical equities when making decisions. This post discusses why
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 —
