Contracts Negotiation & Signing

For most foreign-invested enterprises in China, business plans and decisions that need to be carried out are heavily relying on the competency and loyalty of its local partner, or their hired management team. For example, if a WFOE wanted to build, develop the China local market for certain brands owned by its mother-company, they probably […]

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Are contracts in China ineffective?

Here are some frequently asked questions that I have received and answered about contracts in China, particularly in dealing with factories. These have been edited for clarity and privacy. Q: I have heard from colleagues in China and Hong Kong that contracts with factories are generally not worth the paper they are written on. Is […]

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Joint Venture Management

I’m a lawyer by trade, but over the past few years, I found that my team and I would spend over 70% of our time consulting on corporate management issues rather than legal matters. In doing so, we’ve been able to provide better services, both legal and commercial, for our clients as we’re able to […]

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Preparing for Legal Action in China

Lawsuits and arbitrations in China are costly and time-consuming – isn’t it everywhere? Before you making a decision on how to settle a dispute, you ought to have a clear picture of possible alternatives. There are definitely other more efficient and effective ways to settle a dispute rather than taking the case to court. For […]

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Labor Disputes Recourse Options

During dismissal labor disputes, which are heard by the Labor Committee, the employer and the employee often disagree on the facts. PRC Labor Contract Law is a little confusing, so I will do my best to shed light on the employee’s options, which should be helpful information for employers, as well.  What complicates matters is that PRC Labor […]

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Before Getting Hitched in a Joint Venture

In joint ventures, the powers vested on shareholders are rarely balanced. From the foreign shareholder’s side, oftentimes it either loses control over board decisions, or it gets the ability to control everything but as a result makes the company function poorly and miss business goals. For the purpose of this article, “joint venture” hereof strictly […]

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Frequently Made Mistakes in Governing a Joint Venture

From the numerous JV shareholder and board meetings that I’ve attended, I’ve noticed some frequently made mistakes in the foreign shareholders’ approach to gaining or maintaining control of their JV business in China. They include, but are not limited to: Inadequate due diligence, or no due diligence exercised at all, before entering into a JV […]

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Franchise your Way to China

Looking for franchising opportunities in China? Read this article as a quick guide. For the purpose of this article, the term “franchisor” shall specifically refer to WFOE and Joint Venture, and the term “franchisee” shall specifically refer to all Chinese enterprise, including Chinese domestic company, WFOE, Joint Venture and others. Threshold Neither franchisor nor franchisee […]

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