How Do I Decide Which Type of Foreign Entity to Use When Taking My Company Overseas?
In two recent posts, How To Succeed When Taking Your Company Overseas and Do I Always Need to Form a Company in a Foreign Country?, I discussed some common issues companies need to wrestle with when deciding whether and how to take their company overseas. Among those are the pitfalls of having a foreign entity
Splitting Salaries of Non-Chinese Employees: The Legal and Tax Issues
Our China lawyers are often asked whether it is legal to pay non-Chinese employees from both their China WFOE and from a company outside China (usually their home country parent company). The answer is an easy yes, but the tax issues that arise from doing so are where things get really difficult and why we
China Distribution Contracts: The Basics
China Distribution Contracts: Same-Same but Different Ever since COVID, our China lawyers have been seeing a big increase in foreign companies entering into distribution contracts with Chinese distributors, due mostly to the difficulties and risks foreign companies face when they go into China directly. Many of the companies that come to us to draft their
Giving Your IP to China Out of Love
One of our China IP lawyers tends towards sarcasm, and in cleaning out my email stack I found this email: Another company that loves China so much that they have already given all their IP to a Chinese company with nothing in return. American and European companies seem not to realize that if they teach
Four Common China Law Mistakes To Avoid
This post highlights four common and somewhat egregious mistakes my law firm’s China lawyers often see lawyers make when representing their clients in doing business with or in China, along with a very brief analysis of what causes each sort of mistake. 1. Not Realizing that China's Bureaucracy Puts Form Over Substance Many years ago, a U.S.
International Law Realities: The 90-10 Rule.
A few weeks ago, a client asked our law firm to handle a relatively routine domestic matter for them. We told them we do not handle such matters and we gave them a short list of excellent attorneys that do. The client expressed surprise at our unwillingness to take on their matter and remarked on
China Lawyer Scams and Bad China Contracts: How Foreign Companies Get Burned
China Lawyer Scams and Bad China Contracts: How Foreign Companies Get Burned Foreign companies doing business in China spend plenty of time worrying about dishonest suppliers, IP theft, unpaid invoices, disappearing manufacturers, and unreliable distributors. They spend much less time worrying about the person they hired to protect them from those problems. That can be
China Employee Non-Compete Agreements: Essential Guidelines and Compensation Requirement
Many American companies (at least outside California where employee non-competes are generally considered invalid) love non-competes and they use them as a matter of course with most (sometimes all) their employees. Generally, a non-compete agreement or a non-compete provision in an employee contract provides that the employee cannot work for one of the employer's competitors
China Expat Employment Contracts: Red Flags
As part of our China employment work, our China employment lawyers are often tasked with helping expats navigate the China employee onboarding process, including reviewing and revising their employment-related documents, such as employment contracts. This involves our making sure our clients' contracts protect their interests and achieve their goals and minimize the likelihood of confusion