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What Does A China Business Lawyer (for Foreigners) Do?

Every time I introduce myself as a lawyer, I would be asked, “so what’s your area of expertise?” My simplified answer would be, “foreign-related business matters in China.” If they ask for more detail, I would tell them that my team and I provide consultancy to foreign investors and help resolve any disputes they may […]

Business Consulting from a Lawyer

I’m a lawyer by trade, but over the past few years, I found that my team and I would spend over 70% of our time consulting on corporate management issues rather than legal matters. In doing so, we’ve been able to provide better services, both legal and commercial, for our clients as we’re able to […]

Frequently Made Mistakes in Governing a Joint Venture

From the numerous JV shareholder and board meetings that I’ve attended, I’ve noticed some frequently made mistakes in the foreign shareholders’ approach to gaining or maintaining control of their JV business in China. They include, but are not limited to: [pullquote align=”right” size=”32″]Lawyers are responsible for whomever pays them.[/pullquote] Inadequate due dili…

Are contracts in China ineffective?

Here are some frequently asked questions that I have received and answered about contracts in China, particularly in dealing with factories. These have been edited for clarity and privacy. Q: I have heard from colleagues in China and Hong Kong that contracts with factories are generally not worth the paper they are written on. Is […]

Trademark Infringement and OEM

In this article I cite a case about trademark infringement risk related to OEM (“Original Equipment Manufacturer”, its interpretation subject to PRC law) and how to take advantage of positioning your China factory as OEM to protect your rights and interests. Below are two basic trademark-related information for you to keep in mind: One of […]

Before Getting Hitched in a Joint Venture

In joint ventures, the powers vested on shareholders are rarely balanced. From the foreign shareholder’s side, oftentimes it either loses control over board decisions, or it gets the ability to control everything but as a result makes the company function poorly and miss business goals. For the purpose of this article, “joint venture” hereof strictly […]

WFOE Requirements on Restaurants (Part 2)

This article is an update to our previous article WFOE Requirements on Restaurants. Previous article has been revised pursuant to current applicable laws and regulations. This article depicts a different approach for establishing a company and running a restaurant business in China. Restaurant WFOE or Restaurant Management WFOE A restaurant WFOE is a company stipulates […]

On Cause-of-Action

In our recent weekly staff meeting, Ms. Zhang, our managing partner, stressed the importance of choosing a suitable “cause-of-action” when filing litigation. “Many cases were lost just because the cause-of-action was inaccurately being chosen,” she said. There are 424 causes-of-action listed in the Notice of Supreme People’s Court on Cause of Action of Civil Lawsuits […]

Wholesale & Retail

We are currently processing a 30 million USD wholesale and retail business formation project in Shanghai. If you are looking for some legal resources in this field, we hope you find our experience useful for reference. Under Chinese law, wholesale and retail companies are regarded as “Commercial Enterprises”.  The establishment of foreign-funded commercial enterprises shall […]

Franchise your Way to China

Looking for franchising opportunities in China? Read this article as a quick guide. For the purpose of this article, the term “franchisor” shall specifically refer to WFOE and Joint Venture, and the term “franchisee” shall specifically refer to all Chinese enterprise, including Chinese domestic company, WFOE, Joint Venture and others. Threshold Neither franchisor nor franchisee […]

Labor Disputes Recourse Options

During dismissal labor disputes, which are heard by the Labor Committee, the employer and the employee often disagree on the facts. PRC Labor Contract Law is a little confusing, so I will do my best to shed light on the employee’s options, which should be helpful information for employers, as well.  What complicates matters is that PRC […]

Be Careful Who You Purchase From

Out of all legal representation inquiries emailed to me from expat businessmen in the past three months, over a third were China-related international transaction disputes. Those disputes share a few common characteristics: 1) the disputed amount was less than 200,000 CNY; 2) the opposing party was a small trading company which often has a less-than-great financial […]