Companies Targeted for Illegally Hiring Foreign Interns

In recent weeks, several of our clients in Shanghai were raided by the local Public Security Bureau (“PSB”, China's police). The PSB was looking for evidence of these companies hiring foreigners or foreign interns without the proper papers. Chinese laws establish that...

Demand letters matter in China

While a common practice, many international businesses are skeptical about the use of sending a demand letter (or in China, "lawyer's letter) to an opposing party after a dispute has occurred. It is often argued that Chinese managers will just ignore such a letter; or...

Non-Compete Clauses in China: New Rules

Recent interpretations by the PRC Supreme People's Court clarify a number of issues on implementation of Chinese labor laws. Arguably the most important clarifications are related to the compensation for and termination of non-competition clauses. Companies are...

New Trends in Cooperating with Staffing Firms

This article was written for, and first appeared in the January-February 2013 issue of Human Resources Magazine, a Thomson Reuters publication. There will be a stricter control on the deployment of staffing services in the Mainland. HR Professionals should ensure to...

How To Determine Your Optimal Investment Structure

Continued uncertainty in Europe and the US is leading more international companies to expand activities in China, both in terms of sourcing, and – increasingly – by selling directly on the Chinese market. The key question to this new boost of investment is how to...

New CIETAC Rules to Internationalize China Arbitration

Opting for arbitration when negotiating contractual dispute resolution clauses is increasingly common for Chinese and foreign business partners. Although many foreign companies prefer reputable international arbitration centers such as Sweden and Singapore, more often...

In Defense of Joint Ventures

Since the 1980s the joint venture was the most common route for structuring foreign direct investment into China. Two decades later, are joint ventures still the right choice? This article was written for, and first appeared in the May 2012 issue of China Law &...

Risks and Liabilities for Representatives in China

The legal representative occupies a powerful and important position in the company. Due to the broad scope of authority and access to the company’s most valuable properties, it is important to carefully choose the right person for the position, and even more, to make...

MOFCOM Tightens Sanctions on Unreported M&A Transactions

The Provisional Measures aim to deter violators and emphasize the existing rules on M&A notifications. Non-compliance with the law may have extreme consequences for the companies involved. This article was written for, and first appeared on Corporate Livewire Many...

Best Practices to Structure Investments into China

Choosing the optimal investment structure – RO, JV, or a WFOE in consultancy, trading or manufacturing – is one legal component to a successful China strategy. How to choose between a Representative Office, a Joint Venture and a Wholly-owned Subsidiaries In 2008 when...

Cooperating with Staffing Firms in China

This article was written for, and first appeared in the March 2011 issue of China Law & Practice, a Euromoney publication. One of the sections (Chapter 5, Section 2) of the PRC Labor Contract Law that altered China’s employment law landscape from 1 January 2008...

Intellectual Property Rights in China

[The below text will be published as Chapter 3.5 (IP) of “Equipment Manufacturing and Machinery in China: Business opportunities for Dutch SMEs in China”, written by the Netherlands Business Support Office (NBSO) Dalian, together with other NBSO’s, Consulates-General,...

RMB Bank Accounts for Foreign Companies Trading with China

On a recent trip to Europe, several clients asked me about the possibility of establishing Chinese currency (“RMB”) accounts in Hong Kong and other offshore jurisdiction, to facilitate trade with Chinese customers and suppliers. Since 2009, China has gradually made it...