I recently received a message from an American lawyer interested in working abroad. In this post I share part of my reply, together with some additional comments. While this post is China-focused, most of what I say applies to other countries. It’s also important to note that much of what follows is moot at this

Tomorrow, March 17, I will be a panelist at a Washington State Bar Association (WSBA) event on dual nationality, together with Dr. Dana Raigrodski and David Freeburg. Registration is FREE for everyone and the event is approved for CLE credit in Washington State. Click HERE to register! The event’s scheduling on St. Patrick’s Day is

The panelists will also discuss the different legal approaches to dual citizenship. In the United States, acquisition of a foreign citizenship does not jeopardize status as a U.S. citizen. On the other hand, countries such as China do not recognize dual citizenship. This makes dual citizenship a dynamic legal issue, with different implications depending on the two countries in question. Though the United States does not prohibit its citizens from holding a second passport, there are still important considerations to be taken into account by Americans who are or are. contemplating becoming citizens of a foreign country. Fred will draw on his experience as a former U.S. consular officer to illustrate some of the potential risks. In some cases it may be more convenient for an American to use a second passport to enter a particular country (perhaps because that country requires Americans to obtain visas). However, in case of arrest, the person may be denied access to U.S. consular assistance. A second citizenship could also complicate efforts to obtain security clearances from the U.S. government.

Not surpisingly, our China lawyers have been getting a ton of questions on how to close a China WFOE. It is difficult and time consuming to form a WFOE in China. As you might expect, the procedure for shutting down a WFOE is also subject to formal procedures and regulations. You cannot simply abandon your company; PRC law requires a formal de-registration procedure be followed for the shutting down of all companies. The most important part of this de-registration process is a formal liquidation of the company, similar to a Chapter 7 bankruptcy proceeding under U.S. law. Many foreign investors figure they have already suffered enough from Chinese bureaucracy so they avoid this formal process and simply abandon their WFOE. In taking this course of inaction, they assume there will be an administrative dissolution and that will be the end of the matter. They are wrong.

If you are a China employer, you need written employment contracts with enforceable provisions for all of your China employees. But merely putting the terms and conditions regarding the employment relationship in writing is not sufficient to protect you. An unenforceable employment contract or even an unenforceable provision in an otherwise well-written employment contract can hurt you as the employer.