Operating overseas is always difficult. Companies that start out in a new country rarely know the culture or the laws or the rules or the people that can be the deciders between success and failure. It is of course possible to bring in good people who know all of these things, but that can be
Got an email the other day enclosing a link to a Globe and Mail article, Vancouver miner says China trying to steal Xinjiang gold mine, and stating the following: I literally chuckled when I read this. Only for the reason that it pretty much checked off every point you have warned about. They certainly would
Got an email from an American client this morning asking me whether I was aware of how American companies that do “significant” business with China cannot receive Paycheck Protection Program (PPP2) loans. I replied that I was not, because my focus is not on domestic U.S. law or business. But then I started thinking more
Our international manufacturing lawyers are always being asked how to structure product development relationships with Chinese companies so the foreign buyer company actually ends up with the rights to the product that gets developed. This post addresses that issue. The key is to focus on manufacturing rights, rather than on intellectual property rights, especially when
On January 3, U.S. Customs and Border Protection (CBP) announced a ban on cotton products and tomato products produced in Xinjiang, based on information “that reasonably indicates the use of detainee or prison labor and situations of forced labor.” This does not come as a surprise: We warned about such a ban on cotton in
In a recent op-ed, I wrote how the controversy over Disney’s Mulan embodies some of the ethical dilemmas and pitfalls that face companies doing business in China. On one hand, to maintain their presence in China these companies must comply with the demands and expectations of the Chinese Communist Party (CCP). On the other hand,
1. Sorry, But Overseas Factory Problems are Likely YOUR Fault The genesis for this post is an excellent post written by Renaud Anjoran and a series of Linkedin comments on that post. The post is on Renaud’s Quality Inspection Blog and it’s called 28 Common Problems Chinese Suppliers Cause Importers. Renaud is the long-term owner of
U.S. companies’ relationships with their Chinese business partners have been strained in the past year, and that has only accelerated the past few months, as we have noted in prior blog posts (see The US-China Trade War: What’s Next?, When Will the US-China Trade War End? It’s the New Normal, and The US-China Trade War:
1. LaoWhy86 on YouTube Spent the last few days catching up on my China reading and viewing, mostly those articles and videos friends, clients and readers wrote me insisting I read. One of the sites I checked out — at the recommendation of many people — is LaoWhy86 on YouTube. I’m hooked LaoWhy86 is an
On December 23, President Biden signed a new law that bans all imports from Xinjiang. Specifically, the new law establishes a rebuttable presumption that any product from Xinjiang was made using forced labor. Some observations: 1. Not Just a Xinjiang Problem We have repeatedly pointed out in these pages that even a total ban on
