Contents of this Article: Employer Rules and Regulations Are Key to China Employer Compliance Chinese Law Requires Every Full-Time Employee to be Hired Pursuant to a Written Employee Contract Employer Audits Employee Terminations With China's economy in decline and so many foreign companies in China laying off employees, it should come as no surprise the
China Does Not Have an Attorney-Client Privilege In the United States and much of the rest of the world, private communications between a lawyer and their client are protected from disclosure without the client's consent. This fundamental protection does not exist in China. The Critical Risks of No Attorney-Client Privilege in China Confidentiality is the
Our clients are always asking us how they should set the employment term -- especially the initial employment term -- in their China employment contracts. The short answer is the typical lawyer answer: it depends on the situation. This being said, for new employees, our China employment lawyers usually recommend a three year initial term.
When my law firm represents a company that provides services to Chinese companies, we start by focusing on the payment terms. If the Chinese company will not be paying our client the entire amount upfront -- which rarely happens -- our China lawyers need to draft the contract to ensure our client gets paid. The
Old pirates, yes, they rob I Sold I to the merchant ships -- Bob Marley's Redemption Song 1. The Canton Fair The 125th Canton Fair will kick off on April 15th. For those unfamiliar with this event (formally known as the China Import and Export Fair), it is China’s largest trade show, held biannually in
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
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
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
Every month or so, someone calls one of our China lawyers wanting to discuss "working with you to help your clients get money out of China." These are nearly always phone calls (not emails) and we typically do not take the calls. We've been doing this long enough (and discussing this long enough with ultra-high
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
