Common Key Red Flags in Chinese Legal Due Diligence

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

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.
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Terminating Employees in China through Negotiations

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.
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Employees Setting up Competing Business Becomes Crime in China

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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New Chinese Rules Relax Compliance on Data Export

26 March 2024
Last Friday, the CAC finally published the Provisions on Promoting and Regulating Cross-border Data Flow, which became effective immediately.
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New Company Law to Impact Foreign Investors and their Directors / Managers

The new Company Law will have a material impact on international investors in China, below we summarize some of the key changes.
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Financing Chinese Subsidiaries through Foreign Loans

Besides registered capital and financing through operational payments, a keyway for international investors to finance their Chinese operations is through foreign loans to their subsidiary.
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Foreigner Tax Benefits Extended to 2027

In a recent move, the Ministry of Finance and the State Administration of Taxation have jointly issued two announcements, each designed to reduce the financial load on taxpayers in China.
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Draft Rules Require Companies to Conduct Regular Data Compliance Audits

By Connie Chen and Maarten Roos On 3 August 2023, the Cyberspace Administration of China (CAC) released the Management Measures for Compliance Audits on Personal Information Protection (Draft for Comments). These Compliance Audit Measures, once adopted, will oblige all companies in China that handle personal information (PI), to complete regular audits on whether personal information is processed in accordance with the PRC Personal […]
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Collecting Data From China: What Companies Should Know

China has been a prime market for foreign investors seeking opportunities. Investors may now have to take steps to ensure data compliance as per the PIPL.
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