Protecting Your Business from Competing Employee Ventures in China

3 July 2024
As we navigate the evolving legal landscape in China, it is imperative to stay informed about recent legislative changes that may impact your business operations. The latest amendments to the PRC Criminal Law, effective March 1, 2024, introduce stringent provisions to address employee misconduct related to establishing competing businesses and engaging in transactions that disadvantage their employers.

Addressing the Hidden Challenges: Overseeing & Protecting Your China Operations

28 June 2024
Business leaders are uncovering significant issues within their local teams. This article sheds light on common HR and operational risks, illustrated by a real-world case study, and offers actionable strategies to safeguard your business in China.

Compliance Instead of Prosecution – How A Tech Company Was Saved from Criminal Litigation

26 June 2024
A Shanghai-based technology company and its de facto manager were suspected of using another company to issue fraudulent VAT special invoices worth hundreds of millions of CNY without conducting any substantial business operations.

Risks to VAT Exemptions on Cross-border Service Income in China

18 June 2024
Last year, a European client asked us to conduct a tax due diligence on their subsidiary in Shanghai, to determine whether all taxes had been duly paid. One of the key issues that we uncovered, was that the Chinese entity had been wrongfully claiming VAT exemption on services provided to their HQ.

Establish a Chinese Subsidiary: Deciding on the Right Location

11 June 2024
While concerns remain over geopolitics and economics, we are once again supporting an increasing number of Western companies to establish manufacturing, trading or service subsidiaries in China. One of the key questions for foreign investors that we need to respond to is: where to best locate such a subsidiary?

Common Key Red Flags in Chinese Legal Due Diligence

4 June 2024
When completing LDDs on Chinese Targets for European and North American multinationals, we often come across the same kinds of issues. Here is a selection:

How to Lose Your Trademarks in China (and how not to)

28 May 2024
In a recent case, a potential client asked for our advice. Their Chinese registered trademark had been cancelled because a competitor had filed a non-use cancellation application, and the client’s local trademark agent had failed to notify the client thereof in time.

Terminating Employees in China through Negotiations

21 May 2024
Chinese labor laws are relatively strict when it comes to unilateral termination by the employer. This is only permitted for one of several grounds listed in the law.

China Lifts Restrictions in Value-Added Telecom Services

16 May 2024
On 10 April 2024, China’s Ministry of Industry and Information Technology issued a Notice aiming to loosen foreign investment restrictions on certain Value-Added Telecom Services (VATS) in pilot areas.

Employees Setting up Competing Business Becomes Crime in China

13 May 2024
The latest update to the PRC Criminal Law includes provisions to tackle employees have set up a parallel, competing business; and employees who disadvantage their employer when dealing with “friendly” customers or suppliers.
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