David Wolf at The Silicon Hutong blog just came out with a superb post riffing on the meaning of guanxi. The post A Few Notes on Guanxi [Link no longer exists] more accurately and concisely defines guanxi than anything I’ve seen. It is so good and so important, I feel I have no choice but
Our clients are always talking about where to invest in Asia, even more so in light of recent concerns about China no longer being a preferred destination for foreign investment. I have argued consistently that China is one of the best places for foreign investment in Asia. The World Economic Forum’s most recent Global Competitiveness
Understanding Letters of Credit Avoiding Pitfalls in International Transactions Letters of credit are complex financial tools that can be risky if not properly understood. This post will explain what letters of credit are, delve into potential complications, and provide advice to avoid risks when using them for international transactions. A Cautionary Letter of Credit Tale
China is Killing Rep Offices For many years, Representative Offices (Rep Offices) were the go-to choice for foreign companies entering the Chinese market. They offered a faster, cheaper setup process and tax advantages compared to Wholly Foreign-Owned Enterprises (WFOEs). However, the landscape is changing rapidly. A recent conversation with a fellow lawyer friend revealed a
Retailing in China: Three Hard Truths for Foreign Brands As China evolves from the “factory of the world” to a global growth engine, more foreign businesses are shifting their focus from manufacturing in China to selling their products there. These days, companies reaching out to our law firm are just as likely to ask how
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
Protecting Your Business When Manufacturing in China This latest recession has caused many businesses to look to cut costs by outsourcing their product manufacturing to China. Unfortunately, many of these companies now engaging in outsourcing their manufacturing to China fail to take the legal steps necessary to protect themselves. When problems arise, they can do
In Cashing in on Internet Censorship, CNN News writes how VPN companies is booming, thanks largely to China. The article discusses how “foreign companies are profiting from software that allows circumvention of government internet controls.” The article quotes one of my law firm’s international attorneys on how businesses that offer firewall avoidance software in China are
China is watching you. I am convinced about 99.99% of all emails go through. But for me, that means at least a few of the emails I send each week will not reach their destination. If I do not hear back from someone quickly, I assume they did not get my email and I send
When the media and the blogosphere started going crazy writing about China’s plans to ban the eating of dog meat, I made clear to myself that I was going to stay out of it. There was just no way I was going to join that bandwagon. First off, I just did not see it as
