China payment terms

China Payment Terms: Tricks Of The Trade

Whenever one of our China attorneys is retained to represent a client providing goods or services to China, we start by asking about the terms of payment. If the Chinese side is going to pay our client the full amount upfront, the contract provisions do not need to be too specific. But this almost never

China employer taxes

Splitting Salaries of Non-Chinese Employees: The Legal and Tax Issues

Our China lawyers are often asked whether it is legal to pay non-Chinese employees from both their China WFOE and from a company outside China (usually their home country parent company). The answer is an easy yes, but the tax issues that arise from doing so are where things get really difficult and why we

International distribution agreements

China Distribution Contracts: The Basics

Our China lawyers have been seeing an increase in work for foreign companies entering into distribution contracts with Chinese distributors, due mostly to China’s rapid growth as a consumer market and to the difficulties and risks foreign companies are seeing when they go into China directly these days. Many of the companies that come to

Chinese contract litigation

Do You Know What Your Chinese Language Contract Says?

If you don’t know this yet after reading our blog, you should tattoo on your forearm that “there is no such thing as boilerplate in a China contract.” That’s really true for any contract. I don’t care how long or short, important or casual. The boilerplate (or standard terms and conditions) section of a contract

How to Protect Your IP from China

Giving Your IP to China Out of Love

One of our China IP lawyers tends towards sarcasm, and in cleaning out my email stack I found this email: Another company that loves China so much that they have already given all their IP to a Chinese company with nothing in return. American and European companies seem not to realize that if they teach

Avoiding China Company Formation Problems

Avoiding China Company Formation Problems

Every so often, someone about to have their Chinese company shut down by the Chinese government contacts us. These sorts of contacts accelerate during economic slowdowns and times of tension and that has been the case of late as well. The following is a composite of some of the emails we have received relating to

China employee non compete agreements

China Employee Non-Competes: Do Not Try This at Home

Many American companies (at least outside California where employee non-competes are generally considered invalid) love non- competes and they use them as a matter of course with most (sometimes all) their employees. Generally, a non-compete agreement or a non-compete provision in an employee contract provides that the employee cannot work for one of the employer’s

China employment law

Key China Employment Documents

I recently read an email to one of my firm’s clients from one of our China employment lawyers. The email explained a large set of employment documents prepared initially just for the in-country China WFOE manager, but written to be used with various imminent China employee hires as well. Because this email so nicely sets