As we pointed out in SaaS in China: Build a compliant Go-to-Market Plan by Looking Beyond the Regulations and again in Foreign SaaS in China: Get Off of My Cloud, the PRC does not permit foreign entities to make direct sales of SaaS products from servers located within China. For foreign software companies, this is a major
Under Chinese law a foreigner who comes to China to complete a “short-term work task” and stays no more than 90 days, must get a work visa (a Z visa). A “short-term work task” is defined as one of the following: Tasks such as those involving technology, scientific research, management and guidance at the place
China Contract Formalities Contracts with Chinese companies often generate a unique set of legal and procedural intricacies. China’s legal landscape differs significantly from that of American, European, or Australian jurisdictions, primarily due to its distinct regulatory frameworks and business culture. These differences require a China-centric approach to both the drafting of China contracts and to
As businesses are rapidly moving to the cloud, the Chinese government seems to be taking its lead from the Rolling Stones: Hey! You! Get off of my cloud. China wants to run its own private cloud, and foreigners need not apply. The primary issue for Internet businesses in China is that all commercial Internet businesses
Most of our clients know little about China employment law, but most know well that China has high expectations on how China employers must treat pregnant and nursing employees. Our clients know this because they all seem to know of a foreign company that had to pay a lot of money for not knowing this.
When I spoke in Ohio last year at a China function, I met Eric McGraw. Eric lived in China for seven years and he is now based in Columbus, Ohio, where he and his company help American companies navigate China and Chinese companies navigate the United States. Eric and I talked about the increase in
January 19, 2015 marks the date of the death of the VIE investment structure in China. On this day, China’s State Council issued a discussion draft of legislation setting out the plan for overhauling China’s Chinese foreign investment legal regime. The new system is set out in the PRC Investment Law Discussion Draft (the “Draft”),
China Arbitration Clauses Chinese companies frequently require contract disputes be resolved through arbitration, often designating CIETAC in China as the arbitral institution. Many foreign companies are apprehensive about the fairness of arbitration in China. However, it’s important to understand Chinese arbitrators weigh both legal correctness and ethical equities when making decisions. This post discusses why
China has liberalized its minimum capital requirements for WFOEa and the amounts required have been reduced in many Chinese cities. But even if the Chinese government is going to let you get away with very little registered capital, you may want to pay more. You should think about the registered capital you should be paying
Media reports state that online gambling in China soared during the recent World Cup. The punters put their money into online gambling on the World Cup, with revenue at China’s government run lottery site increasing by over 80% during this period. The general ban on gambling in China is subject to one exception. The Chinese
