Many Chinse manufacturers have developed a standard form of payment, often termed 30/70 TT. This means: 30 percent down payment on placement of the order, with the remaining 70% due on shipment. This means 30% of the price is paid before the product is manufactured and 100% of the price is paid before the product
We have long advocated for prompt China trademark registration. For companies that manufacture and export from China, registration of the English language trademark is essential. For companies that sell products and services in China, registration of the existing English language marks and the Chinese language marks for the product is essential. China now has the
China Distributor Relationships Make Sense, Especially Now My law firm’s China lawyers have written more product distribution agreements in the last three years than in the ten years prior. This is happening because foreign companies want to profit from China’s consumer and industrial markets, but they are wary of going into the country in a
We have been drafting an increasing number of contracts for foreign companies licensing their concept or technology for use in China. In the old days, this type of licensing was primarily in the industrial sector. These days, much of our work has involved licensing agreements for companies that want to capture China business without having
China automakers Chery and Great Wall were recently forced to recall 23,000 autos exported to Australia due to components that contained asbestos. Asbestos is banned in Australia and 55 other countries and the hazardous nature of the product mandated the cars be recalled back to China since remediation in Australia was not possible. I assume
Virtually every Non Disclosure Agreement (NDA) our China lawyers see is defective. One of the things that most frequently makes them defective is that they call for disputes to be resolved in a U.S. court. The problem is that Chinese courts do not enforce US court judgments and so even if the American company prevails
Your enemy won’t do you no harm Cause you’ll know where he’s coming from Don’t let the handshake and the smile fool ya Take my advice I’m only try’ to school ya From the song, Smiling Faces, by the Temptations You know how when you buy a new car, you immediately start seeing your same
Companies often come to our China WFOE lawyers wanting a Wholly Foreign Owned Entity (WFOE) formed “right away” so they can “immediately” bring on a China-based employee or employees. No matter what anyone tells you, it is the rare WFOE that can be formed in less than three months, and three months is possible only
Clients often ask our China lawyers whether their buyers in China are telling the truth when they claim not to be able to pay them more than $50,000 in one year. The answer is both yes and no. China controls inbound and outbound foreign exchange flows. If a Chinese citizen or company needs to make
One of the many things that makes suing Chinese companies and individuals difficult is the requirement that service be done according to the Hague Convention on Service Abroad of Judicial and Extrajudicial Documents in Civil and Commercial Matters, to which China is a party. Service of an entity or person in China under the Hague
