Selling Offline and Online in China - How to establish a Trading WFOE / FICE

26 December 2013
Several structures are available to a foreign investor who invests directly in China. One commonly-used legal entity is the WFOE, which is a limited liability company that is wholly owned by its foreign investor(s); a Wholly Foreign Owned Enterprise.  However, setting up a limited liability company does not mean that it can engage in every […]
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Lawful Termination in China: Severance Pay Calculations and Conditions

17 December 2013
The Labor Contract Law provides an exhaustive list of situations under which an employer may lawfully dismiss its employee. It depends on the situation whether severance pay is required; severance pay (or termination pay) is the amount an employer has to pay to an employee that is lawfully terminated. Situations that require severance pay include […]
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Overseas Employment in China: New Rules on Secondment

17 December 2013
Over the past few years, Chinese tax authorities have been focusing increasingly on secondment (also referred to as dispatchment) arrangements of foreign companies in China. Under a secondment arrangement a foreign company assigns a foreign manager to its Chinese subsidiary, while the employee remains an employee of the foreign company. This structure is often used […]
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SPC Orders Courts to Publish Judgments Online

2 December 2013
China's is a civil law system, and one important consequence is that decisions made by one Chinese court are not binding on other Chinese courts. Nonetheless, precedent can be a strong factor when arguing cases, especially so in a society where courts want to avoid being proved wrong. One major challenge for lawyers, so far, […]
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Time to Protect the Chinese Language Translations of International Trademarks

24 September 2013
In cooperation with Lisa Qin Foreign companies should register their Chinese-language trademarks in China, to ensure protection under Chinese law. But for those that don't or haven't, a new court case offers some hope.  As the Chinese market continues to grow at a rapid pace, an increasing number of international and transnational companies seize business opportunities […]
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Foreigners residing in China: Important visa application and extension issues

30 August 2013
The PRC Exit-Entry Administration Law took effect on 1 July, and the supplementing Exit-Entry Administration Regulations were implemented on 1 September 2013. Together these new policies implement stricter requirements for expatriates that work in China for shorter or longer periods. !!! All expatriates and companies hiring expatriates are strongly advised to review their practices, and […]
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Managing New Risks: Time to Revise Arbitration Clauses

31 July 2013
This article was first published in Corporate LiveWire on July 26, 2013   For many foreign companies and their Chinese subsidiaries dealing with Chinese counterparts, arbitration is the preferred choice to resolve disputes. Perhaps the single most important reason for the popularity of arbitration in China, is that it avoids the risk of having to […]
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Companies Targeted for Illegally Hiring Foreign Interns

21 June 2013
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 foreigners can only work in China if they obtain a proper employment permit […]
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Demand letters matter in China

4 June 2013
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 worse, the letter could forewarn them on any actions that […]
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Toy Industries of Europe: Interview Maarten Roos - IPR Protection

17 May 2013
1. What do you see as the biggest issues for toy companies in relation to protecting their IPR in China? At the moment, few toy companies focus on the Chinese market. Thus for most, the biggest challenge is combroatting counterfeit products coming from China. One particularly prevalent issue is that toy companies may have not […]
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