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

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

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