Foreign Companies Fall Victim to Fraud in China

20 May 2014
To: Managers and financial staff of companies doing business in China or with Chinese counterparts Fraud is not new to China, but over the past year we have been approached by several companies who were each defrauded in a similar way, via seemingly legitimate payment instructions that later proved to have been arranged by email […]
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Application of New Trademark Law in Transition Period

8 May 2014
The new PRC Trademark Law came into force on 1 May 2014. In order to avoid ambiguity and prevent disputes during the transition the transition from the old to the new system, the State Administration for Industry and Commerce of the People’s Republic of China (“SAIC”) recently released a notice on relevant enforcement issues: 1.Trademark […]
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New PRC Trademark Law Effective

8 May 2014
On 1 May 2014, the new PRC Trademark Law came into effect.  New provisions do not overhaul the system in place for the protection of trademarks, on the other hand the impact on brand owners could be considerable in specific areas. We summarize some of the key changes with regards to: Procedures: more convenience in […]
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Litigating Effectively: When in China, do as the Chinese do?

31 March 2014
Whenever a Western company loses a business dispute, it usually accepts the ruling of the court and pays up (assuming appeal is no longer possible). Chinese businessmen tend to hold a different view: it ain’t over until it’s over. When entering into a transaction with a Chinese counterpart, enforcement of the agreement should already be […]
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Employment Law Update: New Framework for Dispatch Services in China

18 March 2014
The Chinese legal framework is always in development, but no sector has received so much attention lately as that of dispatch services. The business of employing people and then dispatching them to another company for work has come under severe scrutiny, with a huge impact not only on foreign-invested companies that are engaging in this […]
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Registered Capital Focus of Amendments to PRC Company Law

7 January 2014
A legal development announced for 2014 will have a huge impact on how foreign investors plan their investment in China. The amended of the PRC Company Law, approved by China's top legislative organ on 28 December 2013 and to become effective on 1 March 2014, radically changes the way that registered capital is managed under […]
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Selling Offline and Online in China - How to establish a Trading WFOE / FICE

26 December 2013
Several structures are available to a foreign investor who invests directly in China. One commonly-used legal entity is the WFOE, which is a limited liability company that is wholly owned by its foreign investor(s); a Wholly Foreign Owned Enterprise.  However, setting up a limited liability company does not mean that it can engage in every […]
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Lawful Termination in China: Severance Pay Calculations and Conditions

17 December 2013
The Labor Contract Law provides an exhaustive list of situations under which an employer may lawfully dismiss its employee. It depends on the situation whether severance pay is required; severance pay (or termination pay) is the amount an employer has to pay to an employee that is lawfully terminated. Situations that require severance pay include […]
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Overseas Employment in China: New Rules on Secondment

17 December 2013
Over the past few years, Chinese tax authorities have been focusing increasingly on secondment (also referred to as dispatchment) arrangements of foreign companies in China. Under a secondment arrangement a foreign company assigns a foreign manager to its Chinese subsidiary, while the employee remains an employee of the foreign company. This structure is often used […]
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SPC Orders Courts to Publish Judgments Online

2 December 2013
China's is a civil law system, and one important consequence is that decisions made by one Chinese court are not binding on other Chinese courts. Nonetheless, precedent can be a strong factor when arguing cases, especially so in a society where courts want to avoid being proved wrong. One major challenge for lawyers, so far, […]
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