My law firm represents many foreign companies that do OEM manufacturing around the world -- mostly China, but India, Mexico, Brazil, Vietnam, Thailand, Taiwan, Korea, Malaysia, Indonesia, Bangladesh, and Cambodia as well. In our discussions with our clients that manufacturing in foreign countries, we nearly always discuss what they can and should be doing to
China Employee Confidentiality and Noncompete Agreements are confusing and often drafted and/or handled incorrectly by foreign companies.
If you are a China employer, you need written employment contracts with enforceable provisions for all of your China employees. But merely putting the terms and conditions regarding the employment relationship in writing is not sufficient to protect you. An unenforceable employment contract or even an unenforceable provision in an otherwise well-written employment contract can hurt you as the employer.
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
Last week a relatively large company emailed me to ask what our law firm charges for "template Thailand and Vietnam Manufacturing Agreements." A few hours later, I got the same request from a different company for Mexico. In response to these emails, I explained why we never do "template" manufacturing agreements anywhere in the world
When our employer clients seek our counsel on new China employee hires, we usually (but not always) advise they use an initial fixed term of three years. We also recommend that before the initial employment term is up, they consider whether to extend the employee’s contract for a second employment term.
Contract manufacturing is fundamentally the purchase of a product. For any product purchase, the key terms are price, quantity and delivery date. And yet many buyers treat these key term as secondary issues. As buyers focus on exciting issues like product design and "getting to market", buyers frequently fall into a trap. They assume that price, quantity and delivery terms will never be an issue. When these issues arise, as they virtually always do, the product buyer is in a situation where it has little to no room to negotiate. The overseas factory is now in control, and then it springs the price trap.
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's online gaming market is the largest in the world in terms of revenue, but its online gaming laws, market access restrictions, and censorship make it difficult for non-Chinese developers to sell their online games into China. This post sets out the basics on what it takes for foreign companies to get their online games into China.
At the end of each calendar year, many nonprofit organizations, including nonprofits in China, start to appear more frequently on everyone’s radar. Recently I counseled a nonprofit organization that wanted to set up China operations in some way. Technically they are a U.S. not-for-profit (501(c)(6)) organization, rather than a 501(c)(3) charitable nonprofit, but I use
