China does not like direct marketing and its direct marketing laws are so restrictive the direct marketing industry has little in common with direct marketing in the United States or even Europe. The other day, one of my law firm’s international corporate lawyers received an email from a potential client with a link to a
Because labor remuneration is an often-litigated issue in China, employers should be careful when reducing employee salaries and they should take that action only when prepared to defend it before an arbitrator or a judge. As with China-based employee terminations, the best way to proceed and avoid employment disputes will usually via a mutual agreement
Our China lawyers have written countless articles on China joint ventures (for this blog, for the Wall Street Journal, for Above the Law, and for many others), so it is good when someone we know and respect says the same basic thing about them, which is that you should watch out. The writer is my friend Randall
The below is what our China company formation lawyers have been telling our clients about China’s new minimum capital requirement rules when forming a WFOE. Note that China the country has its laws/rules on this and many of China’s cities have their own rules on this as well. And in addition to the rules “on
By popular demand we are reprising our “Ten Things To Consider” series, starting anew with forming a China WFOE. Here goes. Make Sure Your Business Scope is Legal. Too many WFOEs never get past the starting line. A number of industries are restricted to foreign-invested companies, so before you sign a lease in Shanghai or
China has become adept at spotting and hunting down foreign companies doing business in China without a required Chinese entity. What exactly constitutes doing business in China at a level requiring a Chinese corporate entity ? That is far too complicated to answer in a blog post, but suffice it to say that the Chinese
I am an international lawyer, not an investment advisor or a stock analyst. So when I tell you that I have never invested in a publicly traded Chinese company and I cannot see myself ever investing in a publicly traded Chinese company, you should completely ignore me and not change your behavior in any respect.
January 19, 2015 marks the date of the death of the VIE investment structure in China. On this day, China’s State Council issued a discussion draft of legislation setting out the plan for overhauling China’s Chinese foreign investment legal regime. The new system is set out in the PRC Investment Law Discussion Draft (the “Draft”),
Muddy Waters is a hedge fund company that targets dodgy US-listed Chinese companies, shorts them, and then documents the fraud in which those Chinese companies engage. Muddy Waters has an impressive list of Chinese companies it has exposed, including China Media Express, Duoyuan Water and RINO International. These companies appear to have two things in
Fascinating article by Matthew Robertson, Fellowes, American Stationary Giant, Brought to Its Knees in China. A couple of readers sent me the article and both commented on how it proves what “you are always saying about Chinese joint ventures.” I am not so sure it does. The article is about Fellowes, one of the leading
