China Joint Ventures

China Joint Ventures: This Time We Blame The Victims

We are writing about joint ventures because as doing business in and with China becomes more complicated and risky we are seeing a resurgence in companies wanting to go into Chinese joint ventures and in companies coming to us needing legal assistance with their failed and failing China joint ventures. In many cases we are

China WFOE local sales

“Going Local” to Preserve Your China Sales

Our clients in many industries that sell their products and/or services to Chinese state-owned (SOEs) and city owned companies are reporting increasing roadblocks to their sales. They are telling us that the Chinese government is increasingly favoring Chinese domestic companies over them, based on “orders” they are getting from on high. The Chinese government has

Transfer Pricing China

China Transfer Pricing Laws: Because They Matter

If you had told me ten years ago that I would one day be writing on transfer pricing, I would never have believed it. Heck, if you had told me ten years ago that I would one day be writing on transfer pricing, I might have considered going into a different field. Even three years

How to avoid going to jail when traveling internationally

How to stay out of Foreign Jails and What to do if Arrested

Yesterday, in Americans, Australians, British and Canadians Are Being Singled Out in China and I’ve Got Proof I wrote how the CCP singles out people for arrest on criminal charges based on their nationalities. In response to that post, I got the following email: I am an Australian citizen and you are right that we

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 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

Just say no to bad China contracts

How NOT To Write A China Contract

Many moons ago, an American company contacted us wanting to sue its Chinese joint venture partner for having “clearly” violated their joint venture agreement. We looked at their case and advised them not to bother with it. It had nearly every hallmark of a China deal gone bad, due almost entirely to the fault of