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
Despite trade tensions, China's declining economy, and overall uncertainty, our China lawyers have been getting a steady stream of requests from companies looking to set up their own factories in China. These are mostly companies that supply parts to multinational manufacturers that make products in China and are getting pressure from the multinationals to set
1. What is an NNN Agreement? A Non-disclosure, Non-use and Non-circumvention Agreement (NNN) is an agreement used to protect confidential information, and to prevent a company or person from using your information to compete against you or go around you to your own customers. These contracts are commonly used before revealing anything important to anyone
China M&A: Should You Use an SPV to Acquire a Chinese Company? Most foreign buyers should not add a special purpose vehicle to a China acquisition unless they can say what it does. A single corporate buyer that expects to hold the business for years and does not plan to bring in outside investors can
An article titled, Kickstarter Prototype to Production: $100K is not Enough, is getting a lot of play on Linkedin among the China manufacturing crowd, with those I know who know China manufacturing agreeing with it. The article provides compelling reasons why getting an electronics product manufactured in China will nearly always require more than $100,000.
China Enforces Good Contracts Contrary to popular belief, China's legal system offers robust mechanisms for contract enforcement, outperforming not only common perceptions, but also the judicial systems of the United States, Canada, and the United Kingdom in efficiency. At least this is what the World Bank said in its last (2020) report ranking countries on
1. Typical Boilerplate Provisions The Western world -- particularly the Anglo-Saxon/common law world -- is used to ultra-long contracts for everything. A contract to buy $6,000 worth of rubber duckies will include all sorts of boilerplate provisions, such as one making clear that buying rubber duckies does not make the buyer and seller parties a
1. The Huawei Indictments On January 28, the U.S. Department of Justice unsealed two indictments against Huawei. The first indictment concerns ongoing claims against Huawei and its CFO, Meng Wanzhou, for allegedly violating U.S. sanctions against Iran. The second and more interesting indictment concerns alleged trade secret thefts by Huawei's U.S. subsidiary under the direction
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
One of the most important things our China attorneys do with every contract we write is to determine who exactly is on the other side. This is often no small feat. When the process goes smoothly, our client instructs us to draft a contract with XYZ Mainland Chinese Company. Our role then involves thoroughly researching
