With all that has been happening with China lately on trade, Thailand is emerging as a very attractive investment destination. Thailand has consistent and well-defined investment policies, increasing regional connections, and a government committed to improving its transportation infrastructure. It also (for the most part) has had long-term political and economic stability. Thailand is emerging
China Law Professor Donald Clarke sent me a great article this week from New York Magazine, entitled, How China Drove Out Mister Softee. Professor Clarke’s email with the link said the following: Thought you might like this. Interestingly, it is NOT a story of “guy skirts rules, naively trusts Chinese partner, gets screwed.” It’s “guy does
I have been writing too much about foreign companies looking to leave China and not enough about foreign companies looking to get into China. For the last few months, the work lives of the international lawyers at my law firm have been tilted towards those looking to leave China, rather than to get into China,
I got an angry email yesterday in response to my having predicted a decline in manufacturing orders from China. The email accused me of “hating China” and wanting “to impede its peaceful” rise and of being “jealous of its progress.” All this because we have lately been writing how many of our law firm’s clients
If I were to list the ten biggest/most common mistakes my law firm’s China lawyers see, not forming a China subsidiary when necessary and forming a China subsidiary when not unnecessary would both be on that list. We write constantly about the risks of doing business in China without a subisidiary. See Doing Business in
I do mean to sound alarmist here. Almost since this blog’s inception, we have written about how if you are doing business in China you need a Chinese legal entity, be it a Wholly Foreign Owned Entity (WFOE), a Joint Venture (JV) or a Representative Office (RO). And pretty much each time, our writings on
When it comes to company formations, China is from Mars and the Western world is from Venus. For most things related to doing business in China, I often stress the similarities. But when it comes to forming a China Wholly Foreign Owned Enterprises (WFOE) I make it a point to stress the differences. I do
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
The basic rule for foreign companies hiring an employee in China is that you cannot do so unless and until you have a Chinese legal entity (e.g., a WFOE), and violating this rule can (and nearly always does) cause problems. See Doing Business in China with Deportation or Worse Hanging Over Your Head. What though
Companies often use share incentive programs to motivate their employees. It is possible for a PRC employee of a foreign company’s Chinese subsidiary to participate in the foreign company’s employee share incentive plan (“SIP”). However, due to China’s currency controls, whether such an employee can actually “cash out” on the benefits of such a program
