China Law Blog

China Law for Business

As regular readers of this blog should know, employers in China, (especially foreign employers) face myriad, complicated and hypertechnical local employment laws. One little employer mistake can lead to big and expensive problems. As much as we wish all our employment law clients would first come to us requesting we audit their employment program to bring it into compliance, truth is that about half the time they come to us only after they’ve been hit with…
Well I was stranded in the jungle trying to take in all the heat they was giving The night is dark but the sidewalk’s bright And lined with the light of the living From a tenement window a transistor blasts Turn around the corner things got real quiet real fast I walked into a Tenth Avenue freeze-out Tenth Avenue freeze-out And I’m all alone, I’m all alone And kid you better get the picture And…
A long long time ago, my law firm was pretty much known as West Coast law firm for the Russian Far East. We ate, drank and slept Russia and Russian law. If there was a mining deal, an oil and gas deal, a timber deal or a fishing deal between an American company and a Russian company in the Russian Far East, there was a good chance our law firm was a part of it.…
Before I explain what to do if arrested in China, I should set out the following “whys” behind this post: Foreigners get arrested overseas all the time. Not just in China. Foreigners get arrested all the time in China, for all sorts of things, including for things that would be crimes in countries like Canada and Denmark. Foreigners get arrested all the time in China, for all sorts of things, including for things that would…
International distribution contracts are the new black and this is a good thing. I estimate that the international lawyers at our firm will have done about double the number of international distribution contracts in 2018 than in 2017. I see this increase due in large part to companies better realizing that doing business in a foreign country by setting up a company in that country (be it a wholly owned subsidiary or a joint…
https://youtu.be/LlyOom0bwwY Yesterday, in Would the Last Foreign Company in China Please Turn Off the Lights: A Sort of Part 2, I wrote about a Wall Street Journal article on foreigners are leaving China. In that post, I discussed the recent arrest of Meng Wanzhou and Chinese government threats by the Chinese government against the United States and Canada for that arrest. A lot has been written about how China may retaliate against US and…
Oh, baby this town rips the bones from your back It’s a death trap, it’s a suicide rap We gotta get out while we’re young Cause tramps like us, baby we were born to run     From Born to Run, by Bruce Springsteen About a month ago, I wrote what I will now call Part 1 of this series: Would the Last Company Manufacturing in China Please Turn Off the Lights. After…
It is fairly easy for China-based employees to leave their employment. Regardless of the circumstances surrounding an employee’s departure/termination, China employers must issue a proof of termination of employment relationship document to the departing employee. It is generally not possible for a China employer to hold the employee to specific performance by making the employee come back work or continue working. Sometimes it is possible for the employer to pursue the departing employee for contract…
Our China lawyers are often asked about the steps it takes to form a China WFOE. So often, in fact, that we long along drafted a stock response to that question. Figuring this response would be helpful to you-all, our faithful readers, I am running it below. Please note that the below is a generic roadmap for WFOE formation and the exact details for forming a WFOE in China will depend on, among other things,…
One of the things we often stress on here is that our posts should NOT be used as a substitute for real world advice. Like ever. This holds true (oftentimes in triplicate) about every other site out there that writes about Chinese law as well. I am saying this again today because there are apparently a bunch of people out there who believe things about China personal income taxes because someone on WeChat is saying…