The real economic threat posed by the US-China trade war is not tariffs. The real threat has always been the U.S. government prohibiting product sales to China and product purchases from China and focus on the tariff issue misses this. As we wrote in Who Pays the Tariffs on China Imports? there are various things companies
1. China has Broken its Promises to Open Its Economy I’ve had a front row seat to China for well over a decade. My law firm started this blog in January, 2006, and we were representing foreign companies in China and the rest of Asia long before that. When we started this blog we were
Image by Ixocactus In a series of recent posts, we discussed how the media and many commentators have wrongly ascribed great things to the new PRC Foreign Investment Law. See New China Foreign Investment Law: Not Good News, China’s New Foreign Investment Law and Forced Technology Transfer: Same As it Ever Was and China Approves New
In China’s New Foreign Investment Law and Forced Technology Transfer: Same As it Ever Was and in China Approves New Foreign Investment Law to Level Playing Field for Foreign Companies. MEH, we wrote how we were not impressed with China’s new Foreign Investment Law 中华人民共和国外商投资法. Since then, a number of commentators (who near as I can
1. Selling a China WFOE In the last year or so, our China lawyers have been seeing a steady increase in emails from people inquiring about selling their China WFOEs. I have gotten three or four of these in the last month alone, including the following one this week, which is fairly typical: I have
When I was a wee lad of maybe ten, growing up in small town middle America, one of my best friends, Pete Collins (a/k/a/ The Big Man), somehow managed to snare some tickets for a professional wrestling event in my town. So we went to some disgusting patched together arena for the event — and
1. China’s New Foreign Investment Law Under U.S. pressure, China recently adopted a new Foreign Investment Law 中华人民共和国外商投资法 (“FIL”) that had been under discussion for several years. Many believe this law will lead to foreign invested enterprises being treated the same as domestic Chinese private businesses. Unfortunately (and not surprisingly), the existing system that limits
1. Who Should Own Your China Subsidiary? One of the first tasks in forming a subsidiary company in China (often referred to as a WFOE or Wholly Foreign Owned Entity) is to determine what entity will be the shareholder of the subsidiary company. It is possible for an individual or individuals to own a China
1. Chinese Investment in U.S. Businesses is Down 95% Mergermarket, just published its global M&A report for 2018, revealing that investments from China in U.S. businesses fell by 95% as compared to 2016. A summary of the data in the Report shows the following: 1. Worldwide M&A activity was strong in 2018. “The transactions that
My law firm’s China company formation lawyers are often asked about the steps it takes to form a China WFOE. So often, in fact, that we long along drafted a stock response to that question. Figuring this response would be helpful to our faithful readers, I am running it below. Please note that the below
