China-Latam ties are growing. This is an important development for businesses, and not just those in China and Latin America. For businesses in the United States and most of the global north, China presents a conundrum. The lure of its vast markets remains strong, and for many companies it remains the go-to location for manufacturing or sourcing their products. At the same time, there's increasing concern at home about China's behavior. If it was "just" a matter of human rights violations, there might be less concern overall with possible spill-on effects. However, there's also a—not unjustified—feeling that China has unfairly muscled its way to economic dominance. As a result, companies must walk a fine line as they seek the benefits of China engagement, in order to placate increasingly frustrated customers at home. But things are different in the global south.

On December 23 of last year, President Biden signed into law the Uyghur Forced Labor Prevention Act (UFLPA). The new law's most salient feature is the establishment of a rebuttable presumption that any product made in Xinjiang violates the forced labor statute (19 U.S.C. § 1307). This will have a major impact for all importers of products from China. Fortunately they have a chance to be heard on the issue of forced labor compliance.

Two contract International deals. I have one word for them. Don't. If you feel you are being led down a complicated multi-contract or multi-company deal or structure path, you should stop, look, think, and get help from someone interested in helping and protecting you, not in creating complications to profit from you or to try to prevent criminal prosecutions. 

Due diligence is an investigation of a business or person prior to entering a contract. It often involves a comprehensive appraisal to establish assets and liabilities or to evaluate commercial potential. Though due diligence is important anywhere, it is especially important when dealing with companies in countries where things are often not what they seem and where the legal system is less than ideal.

Common factors used for choosing a location for an international business.