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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New Foreign Investment Guidelines in China Encourage Innovation

9 January 2012
China welcomes foreign investment in a broad range of sectors, but investment in some industries is encouraged more than in others. China continues to be the world’s destination for foreign direct investment, and this trend has only strengthened with the uncertainty that currently prevails in Europe and, to a lesser extent, the United States. Foreign […]
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Best Practices to Structure Investments into China

28 December 2011
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 the global financial crisis struck, European companies put on hold most of […]
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Company Liquidation in China: Key Challenges to Wind-up your Chinese Company

18 December 2011
Where a buyer cannot be found, or the income from a sale does not measure up to the remaining liquidation value of the assets, the most common alternative is to wind-up the business. Liquidation refers to the voluntary termination of the company’s operations and its formal termination. After layoffs of employees, selling remaining assets and […]
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