International Joint Ventures

International Joint Ventures: Testing the Dream

With international joint ventures, the biggest issue is invariably whether or not it makes sense to form one. One of the most important questions relating to whether it makes sense to form a joint venture is whether you will be able to work well with your putative joint venture partner.  And the most important question

China employee non-compete

China Employee Non-Compete Agreements and Their Appropriate Geographic Scope

When drafting China employee agreements, I often have to deal with the issue of non-compete provisions. One of the recurring non-compete issues is the geographic scope appropriate for the employee. The general rule for China on this is quite simple: China will enforce a “reasonable” geographic scope. But what does that even mean? The analysis

China contract lawyers and due diligence

Chinese Contracts Work, but You Can’t Make a Good Deal With a Bad Company

The title is stolen from the Warren Buffett line, “You can’t make a good deal with a bad guy, regardless of any piece of paper.” And it is so true. Our China lawyers are always telling our clients the following: 1. Legitimate Chinese companies do not want to get sued. In our experience, legitimate Chinese

China employee non-compete

China Employee Non-Compete Agreements: The Price You’ll Pay

A Non-Compete Agreement is a contract where one party agrees not to compete with the other. These agreements reduce the likelihood of someone using information you provide them to compete against you. Non-compete agreements are fairly common between Western companies and their more important employees and it is common for those Western companies to want

How to Sue a Chinese company in a court or via arbitration

How to Write a Bad International Arbitration Clause

Yesterday, I attended a fantastic webinar on alternative dispute resolution. Its focus was on arbitration and mediation in Latin America, but pretty much all of what was said applies worldwide. I wrote down one thing said at the event, thinking I would use it for a blog post and today I am. That one thing

The U.S. Government Hates Companies That Do Business with China Get Used to It

The U.S. Government Hates Companies That Do Business with China: Get Used to It

Got an email from an American client this morning asking me whether I was aware of how American companies that do “significant” business with China cannot receive Paycheck Protection Program (PPP2) loans. I replied that I was not, because my focus is not on domestic U.S. law or business. But then I started thinking more

China WFOE Formation lawyers

The Eight Core Issues in Forming a China WFOE

China was the largest recipient of FDI in 2020 and for China lawyers that translates into WFOE formations. In Why NOW Is a Good Time to Double Down on Doing Business IN China we essentially predicted this trend. We talked about how companies that manufacture in China are looking to get out (COVID has slowed

China employee termination because of the economy

China Employee Terminations when Economic Circumstances Change

Terminating a China-based employee usually requires good cause. A serious breach of employer rules and regulations can be a basis for an employer’s unilateral termination of an employee, but China employers have other options as well. A China-based employer may terminate an employment contract if the economic circumstances which formed the basis for the parties signing the