China Law FAQs
Do you need help understanding the law in China? We’re here to resolve these FAQs on China’s law.
How does the law work in China?
China’s legal system is a socialist system with codified statutes to ensure equal law application to all members of society. The country characterizes it as “The Socialist Legal System of Laws with Chinese Characteristics.”
While China has courts, they do not directly hear constitutional claims. Laws become effective by presidential order and originate with the National People’s Congress and its associated standing committee. The Standing Council of the National People’s Congress also interprets the law.
What are the requirements for business registration in China?
Registering a business in China demands a registered address, a business scope that meets China’s industrial policies, a Chinese business name and a feasibility study. You also need to register sufficient capital to cover expenses and provide identity documents for all foreign investors. Other requirements may depend on your business’s industry and location.
How is intellectual property protected in China?
China subscribes to territoriality principles, meaning intellectual protection is only valid in the country or territory of registration. It is a member state of the World Intellectual Property Organization (WIPO) and part of various international treaties to protect IP rights globally.
What should employers know about labor law in China?
Key labor laws in China include mandatory written contracts, mandatory social insurance, overtime for working hours beyond the 40-hour workweek and anti-discrimination laws. These laws are complex and designed to ensure employee safety.
What are the key compliance requirements for businesses?
China has a comprehensive range of compliance requirements, including labor compliance, taxation compliance and even social responsibility compliance. Please contact us to help you navigate the complexities of Chinese business compliance.
How are disputes resolved under Chinese law?
Chinese law resolves disputes through court litigation, arbitration or mediation.
What are the basics of taxation for foreign companies?
In China, most foreign-owned companies are subject to a standard 25% tax requirement unless their country of origin has a tax treaty with China. Taxation is based on net profits and may also differ by sector or industry. Other taxes, incentives or treaties may apply.
How does China regulate data privacy and cybersecurity?
China has three legal umbrellas covering these aspects — the Personal Information Protection Law (PIPL), Data Security Law (DSL) and Cybersecurity Law (CSL). Implementation of these laws in an evolving landscape is more complex.
Is there judicial review in China?
Due to the complexities of its legal structures, China has limited ability to practice judicial review. Legislative and executive reviews are more common.
What happens if you break the law in China?
Chinese criminal law applies to all citizens and foreign visitors equally. If you break the law in China, they may arrest and detain you for an allowable period before prosecuting you. You’ll be subject to the same penalties and punishments as a Chinese citizen if found guilty.
More China Law Questions? We Can Help
Do you have additional questions about the law in China? At Harris Sliwoski, our international law experts are ready to help you navigate the complexities of law and business registration in this country. Contact our professionals today to discuss your legal questions.
