China WFOE Closures Are Increasing China WFOE closures/shutdowns are rising due to China's economic slowdown, its deteriorating relations with the rest of the world, and the difficulty and risks of sending people to China. There is an old saying about how lawyers do well in good times and in bad times, just not in times
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.
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.
In this post, we explain what Sinosure is, how Sinosure works, what causes Sinosure to put foreign companies in its crosshairs, why Sinosure is so dangerous, and, how to fight back and win against it.
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 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?
What can you learn from what Nike is doing? You can learn that there are plenty of countries other than China that manufacture quality items at a price that makes sense for a highly sophisticated international company like Nike and that alone ought to open your eyes to the manufacturing world outside China. Due to tariffs and shipping costs, manufacturing outside China makes increasing sense for many companies.
There have always been benefits to international licensing, but the benefits of international licensing have increased due to COVID. and too many business owners miss the opportunity to generate revenue and increase their business' value by licensing their technology internationally.
Is your Company Sufficiently Diversified? Is your company "too" dependent on China for its products or its sales? What are you doing about it?
Bad manufacturing contracts lead to bad products. Nearly all companies that have product problems would have avoided those problems had they used a good contract or done their due diligence on their product supplier before paying. In this post, we explain how best to avoid these common mistakes.
