Non-Compete Clauses in China: New Rules

11 March 2013
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 strongly advised to review whether they have taken all necessary measures to ensure compliance and protection under the […]
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New Trends in Cooperating with Staffing Firms

18 January 2013
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 appoint staffing firms with the required license so that employer’s rights are enforceable. Chapter 5, Section […]
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Foreign Exchange Restrictions on Foreign Investment into China Eased

5 December 2012
Certain activities will continue to require approval, but application materials and approval processes will be simplified. Foreign exchange restrictions continue to be a challenge for international businesses that invest in a subsidiary in China. Approvals are necessary for just about every kind of transaction, from confirming the investment amount (registered capital) to contributions, to converting […]
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Change a Representative Office into a Wholly Foreign Owned Enterprises

5 December 2012
COMPARING INVESTMENT STRUCTURES: REPRESENTATIVE OFFICE ON THE WAY OUT? Since new regulations on representative offices came into effect in March 2011, cities such as Shanghai and Beijing have seen many such offices being replaced by wholly-owned subsidiaries in consultancy or trading. This trend is in part a direct result of the tightening of the supervision […]
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How To Determine Your Optimal Investment Structure

28 November 2012
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 optimally structure an investment into China, which we hereby divide […]
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New CIETAC Rules to Internationalize China Arbitration

20 July 2012
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 than not, a Chinese partner will only agree to arbitration in China due to the high costs and unfamiliarity with international […]
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Employment Termination in China - Compensation and Unfair Dismissal

20 July 2012
Termination of employees demands a careful assessment of the situation, as the employee’s interests enjoy stronger protection compared to other jurisdictions, and failure to comply with labor regulations may trigger rights for unfair dismissal compensation. Termination of employment contracts is a natural process in almost every company’s lifecycle. Whether the reasons for dismissal of an […]
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In Defense of Joint Ventures

16 July 2012
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 & Practice, a Euromoney publication. When China began opening up its […]
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How to do Safe Business in China: Due Diligence of Chinese Partners

13 July 2012
Chinese trading companies and factories are adept at raising smokescreens to hide their true circumstances, for example by use of Western perceptions on the differences in business culture and the importance of relationships (Guanxi) rather than documentation and contracts. The original Dutch version of this article was written for, and first appeared in Fenedex Press […]
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New Foreign Labor Regulations Sharpen Penalties for Illegal Employment of Expatriates

12 July 2012
In order to regulate and penalize illegal working relationships concerning foreigners more strictly, the National People’s Congress approved the Exit and Entry Administration Law, which will come into effect on July 1, 2013. The new regulations blend in an increasingly harsh approach towards illegal immigration, which recently culminated in Beijing’s announcement of a three-month police […]
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