We have put the kibosh on many China-related deals, and that is what this post is about, especially in this environment with financially distressed companies popping up all around thanks to the trade war and Covid. For ease of explanation and to camouflage the identities of those involved, I have amalgamated a bunch of them into one. This scenario is incredibly typical, including the retirement of the owner precipitating the need for the deal.
Contents of this Article: Mexico is Highly Focused on the USMCA Mexican Agriculture Has Lessons for the U.S. and Beyond Mexican Manufacturing Cannot Replace China Yet Mexican Business Leaders are Ready in Spite of Their Government Utah is Focused on Mexico’s Success as a Solution to Several Problems All together now: “¡Bienvenidos a México!” The
At the end of each calendar year, many nonprofit organizations, including nonprofits in China, start to appear more frequently on everyone’s radar. Recently I counseled a nonprofit organization that wanted to set up China operations in some way. Technically they are a U.S. not-for-profit (501(c)(6)) organization, rather than a 501(c)(3) charitable nonprofit, but I use
China WFOE Closures Are Increasing China WFOE closures/shutdowns are rising due to China’s economic slowdown, its deteriorating relations with the rest of the world, and the difficulty and risks of sending people to China. There is an old saying about how lawyers do well in good times and in bad times, just not in times
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.
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?
China company due diligence is needed now more than ever.
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
In yesterday’s post (How To Succeed When Taking Your Company Overseas) I briefly mentioned one of the most common problems companies face when going international: having a foreign entity when you do not really need one (and relatedly, having the wrong type of foreign entity, which I will discuss in a future post). This mistake
