Companies seeking to form a China WFOE are often confused about WFOE minimum registered capital requirements. Part of the confusion stems from disreputable entity formation companies that claim to know exactly how much will be required and boast of their ability to get the Chinese government to agree to a low amount. Under Chinese law,
A number of our clients manufacture products that sell for relatively high prices due in large part to distinguishing characteristics of our client’s company or product. In other words, the exact kind of product counterfeiters love to copy. Not sure why, but we have been spending more time lately in helping our clients prevent counterfeiting
Renaud Anjoran over at the Quality Inspection Tips blog recently wrote on How your Chinese suppliers might become your competitors. Renaud provides excellent suggestions for preventing your foreign product supplier from competing with you, based on his notes from a talk by Paul Melkebeke, Samsonite’s Vice President for Asia. Melkebeke talked of how Samsonite protects
Ever since the New York Times did an article, Wary of China, Companies Head to Cambodia, on companies leaving China for Cambodia, there has been media and play and real life discussions on how “everyone” is leaving China for places like Cambodia or Thailand or Vietnam or Mexico or Indonesia or Taiwan. First, let’s look
Product manufacturing in China’s coastal regions has become increasingly challenging for manufacturers and buyers alike. Wages and rent have risen dramatically over the past five years while at the same time the economies of major buyers have suffered severe setbacks. This has put tremendous pressure on the small and medium businesses that make up the
One of my law firm’s international trade lawyers recently got an email from a company that was having a problem with one of its employees. This employee had left the company and at that moment the company realized it should have made this employee sign various trade secret agreements long ago. They came to us
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
It Ain’t Easy Leaving China There is a long line of foreign companies looking to get out of China. These companies call the China lawyers at my law firm expecting their leaving China will consist of little more than flipping a switch and waving goodbye. But this being China, nothing could be further from the
Our China lawyers have seen a spike in queries from foreign companies not getting paid by private Chinese companies without affiliates or assets abroad. The Chinese company’s excuse for not paying is often “that the rules have recently changed so foreign payments are no longer possible.” Another one is that the Chinese company is simply
I was recently emailing with a reporter regarding how Memoranda of Understanding, (MOU) and Letters of Intent (LOIs) are so different in China than in the United States/Britain and how that difference often causes early discord between Chinese and American companies. We started the discussion by talking about the differences in the meaning of Memoranda
