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

Shutting down a China WFOE

How To Close A China WFOE Without Going To Jail

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

international litigation and 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

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