Moving manufacturing from China to Mexico or Poland will help the world by reducing energy consumption and pollution. Sourcing products from China has all sorts of hidden costs. This post focuses on the environmental costs. I my next post, I will discuss various other "hidden costs" that come from China sourcing, beyond just the environmental ones.
How to handle China factory disputes is a question our international manufacturing lawyers have been getting a lot of lately. Many China factories are in deep trouble due to declining sales stemming from the US-China Cold War, from its energy issues, and from its declining economy. I say this not just because of the economic statistics everyone sees, but also on the steady stream of emails our international manufacturing lawyers are getting from foreign companies reporting the usual range of problems whenever China's factories are suffering. See China's Slowdown and You.
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.
How to control your China operations while avoiding China government control is critical and companies looking to do business in China need to decide what the China market means to them and what they are willing to risk. Companies looking to do business in China should decide what the China market means to them and what they are willing to risk. There is no way to entirely avoid China regulatory risk, but depending on your product or service and your company’s and owner’s risk appetites, there is always a way forward. The question of how to control your China operations is just one of many questions to ask.
In this post, we explain what Sinosure is, how Sinosure works, what causes Sinosure to put foreign companies in its crosshairs, why Sinosure is so dangerous, and, how to fight back and win against it.
Doing business with China just got another level of riskier. That's because these days, what The CCP Does In China Does NOT Stay in China. Ten years ago, our China lawyers would explain to our clients how what they did in China might redound to their detriment outside China. Three years ago, our China lawyers would explain to our clients how what the CCP is doing in China might redound to our client's detriment outside China. And now, our clients are explaining to us how what the CCP is doing in China might redound to our client's detriment outside China.
Doing business in or with Taiwan is likelier to get tougher for those who also do business in or with China. As China ramps up its attempts to pressure and intimidate Taiwan, we expect it to expand the scope of what is unacceptable cooperation with Taiwan's government. If political donations to Taiwan's governing party are verboten, why not paying taxes? Or establishing a company in Taiwan? Or selling equipment to Taiwan's military? Or even simply doing business in or with Taiwan?
As we regularly point out in these pages, registering your trademark "is as close to a no-brainer as there is in China IP." We say trademark, because in most cases that is the key IP, but copyrights and patents could be a part of the mix. Trademark registrations, however, are not - or at least should not be - objectives in and of themselves. Though a registered trademark has inherent value as a deterrent against counterfeiting and other bad-faith actions, it is best to conceive of the registration as a tool to be actively used. Here are some tips on what to do once you have registered your China trademark.
What can you learn from what Nike is doing? You can learn that there are plenty of countries other than China that manufacture quality items at a price that makes sense for a highly sophisticated international company like Nike and that alone ought to open your eyes to the manufacturing world outside China. Due to tariffs and shipping costs, manufacturing outside China makes increasing sense for many companies.
The best time for implementing a set of China employer rules and regulations is when your China entity is being formed and you start recruiting employees. This allows you to have your first group of hires sign off on your employer rules and regulations and ensures you are fully covered. Our China employment attorneys recommend a yearly audit of every China company's employment documents (including their rules and regulations) to ensure they are up to date with all legal and company and employee changes.
