The Misconception of Foreign Ownership of Chinese Factories A common assumption among Western companies is that partnering with a Chinese manufacturer owned by a Western entity will lower risks and simplify the transaction. However, this belief is often based on a fundamental misunderstanding of Chinese business law and ownership structures. This post aims to dispel
On February 14, 2024, antidumping (AD) and countervailing duty (CVD) petitions were filed against imports of Melamine from Germany, India, Japan, the Netherlands, Qatar, and Trinidad and Tobago. The petitions were filed on behalf of Cornerstone Chemical Company. Melamine is used to produce surface coatings and laminates that are used in products like kitchen and
Factory Visits Help Build Strong Relationships and Ensure Product Quality Your choice of a foreign manufacturer and the relationship you build with it are critical in determining your product quality. Visiting the factory where your products are made—or appointing a trusted delegate to do so — goes a long way in improving your odds of
China Factory Prices are Falling: How to Get Yours The Plight of Chinese Factories In China’s tumbling prices push some exporters to the brink, Reuters News wrote about something the international manufacturing lawyers at my law firm have been seeing for quite some time now. Desperate Chinese factories are lowering their prices, and most Chinese
The Shift in Global Manufacturing Contracts Tensions between China and the West have prompted US and European companies to diversify their supply chains and to re-examine their manufacturing contracts. Companies that manufactured their products in China under single contract systems are now adapting to work with factories worldwide. Previously focused on a single country, these
China Manufacturing Risks Are at Level 11 Making products in China is much more complex than it was five years ago, due to these factors: 1. The U.S. tariffs have profoundly impacted companies that ship products from China to the United States or make products in China. Many of my law firm’s clients will not
China’s Current Business Climate: Questions Answered Because of our vantage point as an international law firm, we frequently get asked questions by boards of established companies, startup founders, regulators, and reporters. Below are some of the questions about China we have received lately. What is the threat level for foreign individuals and companies doing business
China’s Evolving Manufacturing Landscape Rising geopolitical uncertainties around China have transformed the landscape of Chinese manufacturing and IP asset protection. This post examines the escalating challenges faced by Western enterprises, and provides steps companies should take to safeguard their products and intellectual property from increasingly desperate Chinese factories. It focuses on essential, yet frequently undervalued, mold
Offshore companies are widely used by businesses and individuals for a variety of purposes. So pervasive is their use in China that even smalltime accountants in Hong Kong offer incorporation services in jurisdictions like the British Virgin Islands (BVI). While there is nothing inherently wrong with the use of offshore entities, you should be wary
Protecting Your Brand Name as Manufacturing Leaves China The recent decade-low in China’s manufacturing exports has pushed many Chinese factories into survival mode, leading to an escalation in trademark theft incidents as they seek new revenue channels. The ongoing trade skirmishes between China and economic powerhouses like the United States and the European Union have
