Archives: China Law Blog
A few weeks ago, we did a webinar on moving manufacturing from China to Mexico. To watch the webinar, go here. To see the Powerpoints from the webinar, go here.
During the webinar we promised to post answers answers to questions we were asked but were unable to answer during the webinar. The below are an initial set of questions and answers. We will follow up with a part 2, with more questions and answers, in a few days. These questions are in no particular order. We received a number of questions that were very particular to a company or an industry and we will not be answering those questions on here, but if you email us, we will do so to the extent possible.
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 WFOE closures/shutdowns are rising due to China’s economic slowdown, its deteriorating relations with the rest of the world, and the difficulty of sending people to China because of its COVID restrictions. There is an old saying about how lawyers do well in good times and in bad times, just not in times when not
How to handle China factory disputes is a question our international manufacturing lawyers have been getting a lot of lately. Many China factories are in deep trouble due to declining sales stemming from the US-China Cold War, from its energy issues, and from its declining economy. I say this not just because of the economic statistics everyone sees, but also on the steady stream of emails our international manufacturing lawyers are getting from foreign companies reporting the usual range of problems whenever China’s factories are suffering. See China’s Slowdown and You.
About a year ago, I spoke at a Berkeley Law School class regarding hostage taking in China. I presume I was brought on to speak about this because I helped Professor Chris Carr write an academic article on hostage taking in China, Commercial Hostages: Local vs. Foreigner Business Disputes in China. At my Berkeley talk,