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
It is not news that Chinese labor authorities have been cracking down on employers that fail to make social insurance payments for their employees. What is news is that Chinese labor authorities are taking that enforcement to the next level. Last week, 28 government departments (including the National Development and Reform Commission, the People’s Bank
On September 5, 2018, the PRC National People's Congress issued a new draft of Several Sections of the PRC Civil Code (the "Draft") for public comments until early November. The Draft would provide heightened protection against sexual harassment on a national level and would also impose more obligations on China employers. Below are a few highlights
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
