China Law Blog

China Law for Business

Latest from China Law Blog - Page 2

It has been a tough year, what with the US-China trade war and all and with all that has been happening with China and Canada and China and the EU. Most of our law firm’s clients are looking at China in a new light and many have moved some or all of their business elsewhere. Relations between the people of China on the one hand and the people of the United States and Canada and…
Unilaterally terminating a female employee in China, especially one who is pregnant, nearly always leads to the terminated employee bringing some sort of legal action. Though there are a few legally permissible grounds for an employer unilaterally terminating a pregnant employee without having to pay severance, those grounds are few and far between and the burden will always be on the employer to prove such ground: e.g., the employee failed to satisfy her conditions of…
This is part 3 of our series on China Joint Ventures. We are writing this series now because our China lawyers are seeing a record number of potential joint ventures, due largely to China’s declining economy, the belief that truly foreign companies will not be well-treated in China, and a desire to try to “share the risk” of all this uncertainty. In part one of this series, China Joint Ventures: The Long Version, we…
This is part 2 of our series on China Joint Ventures. We are writing this series now because our China lawyers are seeing a record number of potential joint ventures, due largely to China’s declining economy, the belief that truly foreign companies will not be well-treated in China, and a desire to try to “share the risk” of all this uncertainty. In part one of this series, China Joint Ventures: The Long Version, we…
With China’s economy in a downturn and so much uncertainty regarding the future of US/China (and even EU/China) relations, our China lawyers have of late been seeing a massive uptick in companies looking to do China joint ventures “to share in the risk.” When done right, China joint ventures do share risk. But when done wrong they actually increase the risk, but only for the non-Chinese company. This is part one in a series of…
Got two emails this morning that were similar and yet could not have been more different. They both were in response to yesterday’s seemingly neutral blog post The 101 on Overseas Manufacturing Contracts (OEM, CM and ODM), in which we talked about what should go into your manufacturing agreements around the world, and did not mention China even once (other than in the form of one link to a previous post). The first email…
This post outlines how creating a clear manufacturing agreement can alleviate the various legal issues inherent in manufacturing overseas. Before we discuss the key terms for your manufacturing contract, we will briefly address why it is so important to have such a contract at all, even in countries with weak legal systems. There are three reasons why it makes sense to have a contract with your manufacturer and only one of those reasons is enforceability…
The re-opening of the U.S. government has brought with it a renewed assault on Chinese telecoms manufacturer Huawei and its U.S. subsidiary. On January 28, the U.S. Department of Justice unsealed two indictments against Huawei. The first indictment concerns ongoing claims against Huawei and its CFO, Meng Wanzhou, for allegedly violating U.S. sanctions against Iran. This indictment can be found here. The second and more interesting indictment concerns alleged trade secret theft conducted by Huawei’s…
  For reasons that ought to be apparent to anyone who reads the news, our China lawyers have of late been getting a whole host of emails from foreign companies looking to shut down or just flee from their China WFOEs. Reduced to their essence, these emails usually focus on one of the following questions: How do I do it correctly? If I don’t do it correctly, what are the possible repercussions? Will I be…
With widespread use of WeChat in China (it is China’s leading multi-purpose messaging, social media and mobile payment app by far), both employers and employees need to be careful with what they do and say on there. Put simply, what you say or write on WeChat may be used against you in an employment dispute. There have been written Chinese employment decisions where an employer used evidence from WeChat (such as screenshots of an employee’s…