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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Risks and Liabilities for Representatives in China

21 June 2012
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 use of best practices to prevent abuse of power. The legal […]
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Why protecting your Trademarks in China is a Top Priority for Doing Business - PART II

6 April 2012
Navigation through the broad scope of enforcement methods in China requires knowledge and a sense for the reasonableness of means. Unfortunately albeit not surprisingly, even registered trademarks are far from being safe from infringement. As one marketing expert put it, if your product is not being counterfeited in China, you did a bad job. Enforcement […]
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How to fire your General Manager (or Chief Representative) in China

5 March 2012
Firing a General Manager in China is not easy. Chinese employment law is generally regarded pro-employee and so firing any employee is difficult except with due cause. It is all too common that a foreign investor appoints a Chinese or expatriate as the General Manager of its Chinese wholly-owned subsidiary or joint venture (or respectively […]
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Why protecting your Trademarks in China is a Top Priority for Doing Business - PART I

5 March 2012
Protecting your trademarks in China can be tricky, especially where legal provisions differ from those in your own legal environment, but this does not mean that you should refrain from bringing your trademarks to China. When evaluating the opportunities for doing business in China, most entrepreneurs are more or less aware of the fact that […]
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MOFCOM Tightens Sanctions on Unreported M&A Transactions

9 February 2012
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 foreign companies are expanding into China by taking over a Chinese entity, others acquire foreign businesses […]
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