Whenever an impactful revised law is issued in China, our lawyers see two things happen: panic by those now caught operating illegally, or dismissal by those motivated to make all things China seem rosy. Recently, there has been much concern and buzz around the latest revision to China’s laws on the Implementation of the Private
In two recent posts, How To Succeed When Taking Your Company Overseas and Do I Always Need to Form a Company in a Foreign Country?, I discussed some common issues companies need to wrestle with when deciding whether and how to take their company overseas. Among those are the pitfalls of having a foreign entity
Way back in 2010, I wrote Ten Reasons Chinese Companies Fail In The U.S. for Forbes Magazine. Then in 2015, I did a blog post on the same topic, entitled Top Ten Reasons Chinese Companies Fail in America My top ten list in that article was as follows: 1. Chinese companies focus on a Chinese
In yesterday’s post (How To Succeed When Taking Your Company Overseas) I briefly mentioned one of the most common problems companies face when going international: having a foreign entity when you do not really need one (and relatedly, having the wrong type of foreign entity, which I will discuss in a future post). This mistake
We international lawyers often get calls and emails from companies looking to set up a subsidiary or other company overseas. This is one of the most exciting but also daunting prospects for a company more accustomed to domestic laws, regulations, financiers, and business partners. In this post, we will briefly look at the key things
Chovanec nails it and his tweet instantly reminded me of something I read in a recent email from a China consultant I have known for years. His new email address was for a strange sounding company so I followed the URL from that address and discovered this China consultant now has two companies. One focuses
As foreign companies tire of China’s increasing randomness and expenses, and as the COVID vaccines begin rolling out, our China lawyers are getting an increasing number of calls about China WFOE closures. These calls are not coming from companies that have their WFOEs in China to make product or service sales in China; they are
Most China watchers have spent the past three months trying to decide what a Biden Presidency means for U.S.-China relations. And over the past week, some China watchers also have been watching as mainland Chinese users flocked to discussions on the Clubhouse app, seemingly without sparking concern among Great Firewall monitors. That brief window into
Got an email the other day enclosing a link to a Globe and Mail article, Vancouver miner says China trying to steal Xinjiang gold mine, and stating the following: I literally chuckled when I read this. Only for the reason that it pretty much checked off every point you have warned about. They certainly would
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
