Last year, we assisted a European client whose China subsidiary faced a classic trade secret issue. A senior sales manager resigned and joined a direct competitor.
Early this year, a client called with an unusual problem. He was in China to attend the annual party of his Chinese subsidiary, but when he tried to return to Europe, he was informed that he could not board the plane.
When structuring cross-border agreements with counterparties in the Chinese mainland, it can be tempting to choose a familiar legal framework — particularly U.S., English or an EU governing law — combined with a neutral and reputable arbitral seat like Hong Kong (which is part of China, but retains its own legal system under the One Country, Two Systems principle).
For international companies operating in China, non-compete agreements remain a key instrument to protect trade secrets and preserve competitive advantage.
On 29 December 2025, the Cyberspace Administration of China (CAC) issued the Announcement on Submitting the Compliance Audit Status of Minor Personal Information Protection (the "Announcement").
One of our US-invested clients recently faced a challenging claim from an employee who had been working from home under an approved remote-working arrangement. During normal working hours the employee took a short break, entered his kitchen, and suffered a serious injury while preparing lunch.
In commercial disputes in China, being named as a third party in litigation is not uncommon. The real risk often lies not in the designation itself, but in failing to assess the situation promptly and take appropriate steps at an early stage.
Employment law in China is in constant flux, but changes to the law – or to how the law is interpreted – are generally quite limited. Recent Interpretations by the Supreme People’s Court (SPC) are the exception; international companies that operate in China, need to take notice and prepare for action.
Understanding who bears legal costs in China is essential for foreign businesses navigating the PRC dispute-resolution landscape. China combines elements of "loser pays" and "each bears its own costs," depending on the category of fees and the legal forum.
