China Law Blog

China Law for Business

When our employer clients seek our counsel on new China employee hires, we usually (but not always) advise they use an initial fixed term of three years. We also recommend that before the initial employment term is up, they consider whether to extend the employee’s contract for a second employment term. Because China is not an employment at will jurisdiction and terminating a China employee is generally very difficult, you as the employer should be…
China manufacturing contracts are very different from Western manufacturing contracts, for a whole host of reasons, most of which stem from either differences in laws or differences in economics. This means our China lawyers often must explain why they are doing something in a China manufacturing so different from the way the client “always does it” in the West. One of the more complicated things our China lawyers often must explain is how we usually…
Like so many other U.S. industries, the U.S. vaping industry is now in the crosshairs of a 25% tariff on products imported from China. The first two waves of President Trump’s proposed tariffs against China covered about $50 billion worth of Chinese products but they did not include any vaping products. After China retaliated and proposed its own equivalent tariffs on an estimated $50 billion worth of U.S. products imported into China, President Trump proposed…
I recently wrote about how the China attorneys at my firm often hear something like the following from our clients: “I am not worried about this deal/contract/transaction with this Chinese company because” [choose one or more]: “The owner and I are great friends.” “I trust the owner implicitly.” “There is no way they [the Chinese company] would do this because it would destroy their business.” I went on to write how I like to start…
If you have or are going to have employees in China, you need both a well-written China employment contract with all of your employees (both foreign and domestic) and a set of China-centric Rules and Regulations (often referred to as an employee handbook). An increasing number of China employers have realized how crucial it is to have both of these documents, but many fail to ensure these two documents actually work together. When conducting HR audits
When our China lawyers provide the first draft of a contract to a client, we typically explain a bit about why we did what we did in the contract. The below email is an amalgamation of various emails from our China manufacturing lawyers explaining their first draft of a China Contract Manufacturing Agreement. I am providing this here because it nicely highlights the sort of things that should go into a China Contract Manufacturing Agreement,…
Currently, the number one film in China is the smash hit Hello Mr. Billionaire (US$306M and counting). It’s a comedy about a hapless soccer player who stands to inherit 30 billion RMB, but only if he can spend 1 billion RMB in a month (albeit with a number of complicated conditions, like no gambling, donating the money, or purchasing illegal substances). If the story sounds like déjà vu all over again, that’s because it’s the…
China employees during their employment contract term can generally resign by giving 30 days’ written notice. China employees during their probation period generally can leave their employment by giving a mere 3 days’ notice. Under China’s employment law, when an employee voluntarily resigns, the employee’s resignation is deemed to have been a “unilateral termination” initiated by the employee and no statutory severance is owed to the employee. Even when dealing with an employee’s voluntary resignation, it…
Chinese companies (especially SOEs) increasingly require their contracts with foreign companies provide for disputes to be resolved by arbitration in China. In these situations, we are seeing mostly CIETACand BAC arbitration clauses. Many of our American and European clients are uncomfortable with arbitrating against a Chinese company in China as they are convinced they cannot “get a fair trial” there. Our China lawyers explain how in our experience, the nationality of the parties…
Because of this blog, our China lawyers get a fairly steady stream of China law questions from readers, mostly via emails but occasionally via blog comments or phone calls as well. If we were to conduct research on all the questions we get asked and then comprehensively answer them, we would become overwhelmed. So what we usually do is provide a super fast general answer and, when it is easy to do so, a link…