man throwing money into retirement bank

Hiring a Retired Person in China: The Legal Issues

Foreign companies doing business in China fairly often ask our China employment lawyers whether they can legally hire someone who has passed the legal retirement age. The short answer is that doing so is legal, but somewhat complicated. Consider this hypothetical. Employer employs Employee (male) for several years. Employee turns 60, the statutory retirement age,

stack of old files

China Employee Terminations for Misconduct: Get Your Documents in Order

Our China employment lawyers often get the following question from both potential and current clients: We have an employee who did something clearly wrong. However the conduct in question is not directly addressed in either his employment contract nor in our employer rules and regulations. Given how wrong his conduct is though, can we terminate him

China company due diligence

China Employment Contracts: It’s Not Too Late to Check Yours

If you have employees in China, you must have a written employment contract with each and every one of your employees. Employing anyone (Chinese citizen or expat) in China without a current, enforceable, China-centric employment contract puts you at massive risk for financial penalties and worse. Late last month, China’s Ministry of Human Resources and

men in suit with computer screens as heads with images of eyes, ears, and mouths

Understanding the U.S. Foreign Agents Registration Act (FARA)

We Americans do not like foreign governments or their agents meddling in our domestic affairs, whether it is China, Russia, Iran, Syria, or some less reprehensible regime. We do not even like friendly foreign governments meddling in our affairs. I am not talking about traditional CIA/007 spies or agents who operate in the shadows, mainly

Walking the China tightrope

How To Survive an Increasingly Difficult China

Since October 6, 2018, one of our recurring themes has been that China has become far more difficult for foreign companies. It is what we have been calling the New Normal. This New Normal extends to all foreign companies that do business in or with China, but it has hit U.S. and Canadian companies particularly

China Cyber Law

China’s New Cryptography Law: Still No Place to Hide

The PRC National People’s Congress on October 26 enacted the long awaited Encryption Law (密码法), which will come into effect on January 1, 2020. The official text of the law can be found here and an English language summary can be found here:  The Law is another piece of the comprehensive cybersecurity system China is rolling

row of lego stormtroopers

Do Not Let Force Majeure be a Major Force In Your China Contract

Pull out and look at your contract with your Chinese counter-party. Does it have a force majeure clause? If it does not, put it away and count yourself lucky. If it has a force majeure clause, pour gasoline or lighter fluid or nail polish all over it and light it. JUST KIDDING. Well only sort

Just say no to bad China contracts

NDAs Do NOT Work for China but NNN Agreements Do

You Need an NNN Agreement for China IP Protection Relying on a standard Western-style NDA to protect your IP from China sets you up for IP theft because NDAs have critical limitations that render them ineffective for China. You need an NNN agreement tailored specifically for China. This post explains what an NNN agreement is,

Chinese man on court trail

How to Avoid China Prisons: Know YOUR China Risks

Contents of this Article: The Situation: Foreigners at Risk in China The Inconsistency of Chinese Law and Punishment Important Points of Chinese Criminal Law The Risks of Working and Living in China The Increasing Risk of Doing Business in China Stay Within Chinese Law How Can You Protect Yourself and Your Company A NOT New

China Employers

China Employee Terminations: Unilateral is Tough

Employee terminations in China are almost never easy and employer-initiated unilateral terminations are exponentially more difficult. Foreign companies terminating their employees in China can and often do get tripped up when they attempt unilateral employee terminations. Consider this hypothetical. Employee is a regular, full-time employee of Employer. Employer and Employee executed a few fixed-term employment