How to Protect Trade Secrets in China When Employees Leave

Categories: Business In China, China 101, Labor and Employment Law | By Peter Pang

“The challenge is thus how a Chinese company can protect its trade secrets when an employee quits to either start a competing business of his or her own or to join a competitor without violating PRC law in the process” As China continues to develop truly world-class e-commerce and other Internet and technology companies like…

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Obtaining an ICP License in China: A Business Necessity for Any Web-Based Presence?

Categories: Business In China, China 101 | By Teo Doremus

  The Internet has exploded in China, and some of the world’s leading e-commerce and other web-based business like Alibaba, WeChat and others have originated from the PRC.  However, the PRC does exercise stricter control over the Internet and websites than some foreign businesses might be used to. In order to operate a website in…

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How to Set up a WFOE in 2017

Categories: Business In China, China 101, Foreign Direct Investments | By Teo Doremus

  In 2016, China’s government passed a new foreign investment law (the Foreign Invested Enterprises Law) designed to make the PRC a more attractive environment for foreign investors.  In connection with this new law, the Chinese government, through the Ministry of Commerce (MOFCOM), also issued new regulations regarding the formation and registration of wholly foreign-owned…

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Employee Handbooks in China: Why You Should Have One

Categories: Blog, Business In China, China 101, Labor and Employment Law | By Bill Song

In many Western countries, written employee handbooks have been standard practice for most employers for decades. These handbooks provide a uniform set of guidelines that the employer follows in terms of employee dress codes, vacation policies, procedures and grounds regarding discipline and termination of employees, and a whole host of other issues that may arise…

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Franchising in China: An Excellent Business Opportunity But One Not to Take Lightly

Categories: Business In China, China 101, Foreign Direct Investments | By Kristy Guo

Franchising American restaurants in China was recently in the news amid reports that fast food giant McDonald’s has sold its mainland China and Hong Kong businesses to a consortium between the state-owned Chinese conglomerate Citic and the American private equity giant Carlyle Group for $2.03 billion. Among the key points of the deal was that…

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Should You Be Legal Representative in China?

Categories: Business In China, China 101, Foreign Direct Investments | By Teo Doremus

Under Chinese law, every company must have a legal representative when starting a company or opening a new business in the PRC.  A company’s legal representative is the individual who serves as the legal embodiment of the company’s interests for purposes of the Chinese government.  His or her name appears on the company’s business license…

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WFOE’s Registered Address, A Bit More Complicated Than You Think

Categories: Business In China, China 101 | By Teo Doremus

The Companies Law of the People’s Republic of China requires that all foreign-owned corporate entities have a registered physical address in China.  However, many foreign investors have gambled (and lost) that Chinese authorities will not catch on if they simply use an inappropriate address (whether it be a virtual office or an address that has…

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Teaching English in China: Let the Buyer Beware

Categories: China 101 | By Teo Doremus

As anyone who knows remotely anything about China can tell you, let alone anyone who has lived or is currently living in China, interest in teaching English in China by native (or not) English speakers has grown exponentially as China’s economy has exploded over the past several decades. There were over 300,000 English language schools…

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No More Foreign Investments Approval

Categories: Business In China, China 101 | By Teo Doremus

What’s new? On September 3 2016, the Standing Committee of the National People’s Congress of the Peoples’ Republic of China (NPC) adopted the amendments which modified the rules relating to the establishment and alterations of the foreign-invested enterprises (FIEs). Are considered FIEs: equity joint ventures (EJV), cooperative joint ventures (CJV), wholly-owned foreign enterprises (WFOE). The…

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