The Three Fundamental Rules for China Contracts To ensure that your contracts are enforceable in China, it is important that they adhere to these three fundamental rules: Jurisdiction: Always specify a court within China for resolving legal disputes. Governing Law: Ensure that Chinese laws govern the contract. Language: Use Mandarin Chinese as the official language
VIE stands for variable interest entity and they are entities used to allow a company in China to technically be a Chinese domestic company, but be de facto controlled by a foreign-owned entity or entities. VIE structures are usually used to allow foreign companies to get involved in various sectors of China’s economy forbidden to
The Chinese Portion of Your Contract is What Matters One of the most common trix employed by Chinese companies against American and European companies is fooling the American/European company into believing that the English version of their contract actually matters. My law firm’s China lawyers often see this from companies that come to us for
The International Business Law Advisor Blog did a post, entitled, 6 Key Provisions You Should Include in Your International Licensing Agreements. I borrow extensively from that post for this one, but tailor it more towards China. I list out IBLAB’s tips in bold and then provide its explanation in normal font. My comments in italics
Why NDAs Fail in China: Use an NNN Agreement Instead A few years ago, in The Power of China-Specific NNN Agreements, I explained why China NNN Agreements are so important when doing business with China. Within a few hours of that post, one of my law firm’s China lawyers pointed out that if we are
“I hear that sometimes Satan comes as a man of peace.” Bob Dylan, Man of Peace “I am a man of peace.” Kwai Chang Caine, Kung Fu, Episode 8 “Peace lies not in the world…but in the man who walks the path.” Master Po, Kung Fu, Episode 8 When I took on this task of
China Joint Venture Lessons The China Economic Review recently featured an article by Steve Dickinson [a former China lawyer with our law firm, who retired in 2021] on the Danone-Wahaha dispute, an outgrowth of a presentation he gave at JP Morgan on China joint ventures. The article, titled Danone v. Wahaha: The lessons to be
We will be discussing the practical aspects of Chinese law and how it impacts business there. We will be telling you about what works and what does not and what you as a businessperson can do to use the law to your advantage. Our aim is to assist businesses already in China or planning to go into China, not to break new ground in legal theory or policy. We want to start a conversation with, for and about the person who wants to know “what is what” in China and the practical aspects of starting and growing a business in or involved with China.
Doing Business in Australia: A Comprehensive Legal and Compliance Guide for Foreign Companies The US may not be Australia’s biggest trading partner, but it is easily the biggest investor in Australia. Major US corporations routinely select Australia for their South-East Asian or Asia Pacific headquarters. Australia routinely ranks as a top place to do business,
Earnest Money Deposits in Oregon Real Estate: What Buyers and Sellers Need to Know In Oregon’s competitive real estate market, earnest money disputes have become increasingly common. The average dispute now involves tens of thousands of dollars, and missed deadlines are the leading cause. Just last month, a Portland couple lost their $20,000 deposit after
