We hear so many half-truths and misconceptions about registered capital that it’s hard to keep track of them all, let alone dispel them. Not for lack of trying, though: see e.g. China Company Law Myths: Registered Capital and Personal Liability and China WFOE Minimum Capital Requirements: The Goldilocks Rule. Without further ado, following please find
Forming a WFOE in China and then operating that business in China is difficult and expensive. See e.g., Forming a China WFOE: Ten Things To Consider and See also Doing Business in China Without a WFOE: Will the Defendant Please Rise on why having a WFOE is a must if you will be doing business
The Chinese government is constantly working to push Chinese manufacturing up the value chain. More recently, the push from the central government has become more formalized, resulting in the 2015 issuance of the State Council manufacturing modernization manifesto: Made in China 2025《中国制造2025》(State Council, July 7, 2015). Made in China 2025 focuses less on the types
President Trump has his trade war, but it is not just against China. This trade war is the United States against the World. President Trump has announced tariffs of 25% on steel imports and 10% on aluminum imports under Section 232 of the United States’ National Security law. Because Section 232 is not a trade
Earlier this year, China released the final version of the national standard on personal information protection, GB/T 35273-2017 Information Technology – Personal Information Security Specification (信息安全技术 个人信息安全规范) (the “Specification”). The Specification will take effect on May 1, 2018. The Specification is not a law or regulation that requires mandatory compliance. However, it likely will be
According to the Hong Kong Free Press (and a number of other newspapers) The Shanghai government this week “ordered the closure of one of the city’s top maternity hospitals saying it was illegally built on land owned by the armed forces, according to an official notice.” According to the article, the hospital, Shanghai International Women’s
The Trump Administration is claiming China’s government forces American companies to relinquish its IP to China. Having worked on hundreds of China transactions that involve IP, I view things rather differently. I have never been involved in a China transaction where it has been clear that the Chinese government has forced our client to relinquish
China does not like direct marketing and its direct marketing laws are so restrictive the direct marketing industry has little in common with direct marketing in the United States or even Europe. The other day, one of my law firm’s international corporate lawyers received an email from a potential client with a link to a
Indemnification is “to make compensation for incurred hurt, loss, or damage” and our clients often request indemnity to protect against a product that injures people or infringes on some third party’s intellectual property right. Seeking such indemnification makes complete sense because the last thing you want when you buy a product from overseas is to
Multi-level companies want to go into China. But as the following portion from a memorandum from one of our China compliance lawyers shows, multi-level marketing in any form is prohibited in China per the Regulations for the Prohibition of Pyramid Selling (2005). Article 7 of the Pyramid Selling regulations prohibits the following: Payment to promoters
