Shutting down a China WFOE

Shutting Down a China WFOE: Don’t Go There

For reasons that ought to be apparent to anyone who reads the news, our China lawyers have of late been getting many emails from foreign companies looking at shutting down their China WFOE or just flee from China. Reduced to their essence, these emails usually focus on one of the following questions: 1. How do I do it correctly? 2. If I don't do it correctly, what are the possible repercussions? Will I be safe in China? We answer both questions in this post.

China Cyber Hacking

China Cyber Hacking: The Full Story

China cyber hacking obviously affects companies that do business in or with China but it is becoming increasingly apparent that it also impacts companies with no direct business connections to China. This post explains the Chinese government's cyber hacking goals, how it does its hacking, and why it is virtually impossible for foreign companies to avoid being hacked by the Chinese government or to fight back against it.

best practices for tech companies when dealing with China

Best Practices for Tech Companies When Dealing With China

Recently I sat in a presentation with some executives who were sharing best practices for tech companies when dealing with China and the world generally. These were companies that had great success at home and abroad but not surprisingly found China a more difficult market to tackle. Here are some of their tips, along with

COVID and China supply chain problems

Omicron and Supply Chains: Buckle Up

Omicron is incredibly contagious and China is not well-equipped to slow it down to the same extent it has done with previous COVID variants. Omicron will likely lead to shutdowns of China's factories and convince more foreign product buying companies to diversify out of China.

China Business Proposals that Work

China Business Proposals that Work

Chinese businesses typically want a simple, specific, concrete proposal to which they can respond. If the foreign side leaves the structure vague, the Chinese side will usually have nothing to say. In this situation, a deal that may be good for both sides never gets done because neither side can bring it to the point where the real bargain is negotiated. The Chinese side virtually always wants to show its cards last. If you do not show your cards first, there will be no cards back from the Chinese side.

What the future holds for China

What the Future Holds for China

On December 6, I was a guest lecturer at Florida State University (FSU), providing an overview of what’s happening in China these days. I ended the lecture by making some educated guesses about what the future holds for China. Here is the gist of it. 1. One More Decade of Xi It is fair to

Doiong business in China means walking a tightrope

How to Maintain Control of Your China Operations: WFOE or JV or Something Else?

How to control your China operations while avoiding China government control is critical and companies looking to do business in China need to decide what the China market means to them and what they are willing to risk. Companies looking to do business in China should decide what the China market means to them and what they are willing to risk. There is no way to entirely avoid China regulatory risk, but depending on your product or service and your company’s and owner’s risk appetites, there is always a way forward. The question of how to control your China operations is just one of many questions to ask.

US Corporate Transparency Act (CTA)?

Doing Business with China and Your Reputation Risks

Doing business with China just got another level of riskier. That's because these days, what The CCP Does In China Does NOT Stay in China. Ten years ago, our China lawyers would explain to our clients how what they did in China might redound to their detriment outside China. Three years ago, our China lawyers would explain to our clients how what the CCP is doing in China might redound to our client's detriment outside China. And now, our clients are explaining to us how what the CCP is doing in China might redound to our client's detriment outside China.

Doing business in or with Taiwan

Doing Business in or with Taiwan Could Mean Trouble with China

Doing business in or with Taiwan is likelier to get tougher for those who also do business in or with China. As China ramps up its attempts to pressure and intimidate Taiwan, we expect it to expand the scope of what is unacceptable cooperation with Taiwan's government. If political donations to Taiwan's governing party are verboten, why not paying taxes? Or establishing a company in Taiwan? Or selling equipment to Taiwan's military? Or even simply doing business in or with Taiwan?