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
Our China business lawyers see 5-10 China contracts a month written by others. We often are sent these from a potential or actual client who wants us to review and revise their contract or determine how it might fare were they to pursue a breach of contract claim. Other times, we get them simply because
Companies often contact our China lawyers on “how to get money out of China”. These questions usually arise from a Chinese entity purchasing assets like real estate or stock and other securities and then failing to perform on its deal payment obligations. The Chinese side claims it wants to pay, but the Chinese government will
Not a week goes by without one of the China attorneys at my firm getting an email or a phone call from someone (usually an American or a European) wanting us to help them complete a house sale to a Chinese citizen or with some plan for selling houses to Chinese citizens. They want to
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
Foreign companies doing business in China must onboard their employee hires correctly. Unfortunately, there are many myths that make doing this less likely. This post briefly explains four common and potentially dangerous China hiring myths. 1. Hiring Without a Chinese Legal Entity (WFOE or Joint Venture) is Fine if You Bring on Only Independent Contractors.
Chinese manufacturers are notorious for making and sending bad products. Not surprisingly, foreign buyers of these bad products often refuse to pay their Chinese factory anything more for those products. This unpaid amount is often substantial. The foreign buyer then moves on to a new factory. This new factory is often located in the same
If you are an expat working or seeking a job in China, your China employment contract matters. If you plan to travel to China to take a new job there (or even just take a new job there) you should do all of the following Have your proposed employment contract checked by a China employment
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
The PRC National People’s Congress last week promulgated a second discussion draft of the PRC E-Commerce Law (电子商务法草案). This statute is an attempt to gain greater control over China’s online consumer markets, which have exploded with little regulation. The lack of regulation has not slowed development of e-commerce in China. The success of online marketing
