Avoiding the Perils of China
When entering the Chinese market for your goods and services, too often the entrepreneur is swept up by the gleaming tall buildings of Shanghai or the historical preservation of the Forbidden City in Beijing to be fully cognizant of the fact that at the end of the day, China is still a communist country ruled by a less than transparent group of “old guards” whose motivation for actions often are mired in secrecy and obscurity. The prospect of selling to 1.3 billion people with an eager appetite for Western products and services – and the “capitalistic” way in which business is done 24/7 – belies the fact that there are certain rules and regulations one does not want to run afoul of China.
Don’t be misled by this alarm. China is, has been, and will be for years to come, the “darling” of the global growth curve. But one must keep in mind that, notwithstanding the great prospects for revenue and growth, China is still a police state where “detentions” by local authorities for possible violations or pending investigation is not unheard of. For these reasons, we ask: Who is best to help navigate these treacherous waters that may lead to great success?
The Lawyer, the Accountant and the Business Consultant: Who Should Lead, Coordinate, and Protect Your Foreign Business Venture in China?
Here are the pros and cons for choosing a professional to lead your entry. At the end of the day, you may need all three – a lawyer, an accountant and a business consultant. But at the outset, there should only be one captain. Who should it be?
Each profession has its advantages and disadvantages, and there is no easy answer. While an accountant may be familiar with the numbers, he may not be sensitive to legal constraints that could produce serious legal risks. A business consultant may have a 40,000-foot view, but often he lacks the experience or wherewithal to deal with lawyers and accountants. A lawyer, then, seems to be natural. Indeed, conservatism dictates that one should side with the professional who can best protect your freedom in the event you run afoul of the law. But too often the inexperienced lawyer or law firm fails to realize that sometimes compliance comes in many shades of gray in China.
At IPO Pang, we not only know the law, but we know how to marshal the law so as to attain our client’s objective with the least amount of acceptable risk. Nothing is ever risk free, but knowing which risks to take, which risks should be avoided, and which risks to be challenged is the key to our success over the last 20-plus years in China. We have been in China for over two decades and we have seen our advice heeded and our advice ignored, with vastly different consequences.
A major aim of our comprehensive China entry services is to coordinate your business efforts from the very beginning. Our attorneys work with – and recommend – accountants and business consultants to devise and follow a business plan that reaps the most reward while protecting you, your venture, and your intellectual property from the winds of Chinese law and the dangers of competitors and counterfeiters.
Our reasons for recommending the use of an attorney to lead your charge in China is obvious.
But, of course, the choice is ultimately yours.