PRC Employment Law: Using FESCO for Labor Dispatch and Other Necessary Tasks

Categories: Labor and Employment Law | By Peter Pang

Contrary to the popular conception, a FESCO (Foreign Enterprise Service Corporation) is not a single, monolithic entity. Rather, it is a catch-all term for many different Chinese companies that provide similar services. The main reason for the popularity of FESCOs is that to hire any employee (whether foreign or local), Chinese law requires the employer…

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Chinese Overtime Law

Categories: Labor and Employment Law | By Peter Pang

The labor law of the PRC is based primarily on the PRC Labor Law and the PRC Labor Contract Law. Overall, Chinese labor law is quite employee-friendly, especially compared to countries such as the United States, and it contains some very specific principles on overtime pay. This article will briefly describe the basic principles as…

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PRC Employment Law: Conducting Background Checks on Employees

Categories: Labor and Employment Law | By Peter Pang

Conducting a background check on a job applicant is a routine activity all over the world, although far too many employers ignore this critical step in the hiring process. The information sought typically includes academic background, employment history, and criminal record. Conducting background checks in China, however, involves special considerations relating to the sourcing of…

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Handling Internal Investigations in China: Special Considerations

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

As recently as the 1990s when investment in China was used primarily as a means of exploiting cheap labor resources, skepticism abounded as to whether China itself would ever become a consistently profitable market for Western companies. China’s consumption market has exploded since then, however, and this new prosperity has fueled a high demand for…

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#ChinaToo: The Social and Professional Costs of Speaking Out against Sexual Harassment in China

Categories: China 101, Sexual Harassment | By Peter Pang

The fact that sexual harassment is a huge problem in China is virtually beyond dispute. Unfortunately, however, studies indicate that almost all Chinese women are reluctant to speak out about sexual harassment. It has been estimated, for example, that the odds are about 25 to 1 against a university student reporting any given instance of…

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#ChinaToo: Sexual Harassment Training for Your Subsidiary in China

Categories: China 101, Sexual Harassment | By Peter Pang

As mentioned in Part I of this series, in January 2019, the PRC Supreme Court issued a decision that paved the way for sexual harassment lawsuits in China. Before then, sexual harassment lawsuits were impossible, although it was possible to file a lawsuit by recharacterizing the same conduct in a manner that would permit a…

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If You Have a Brand, We Have a Plan: The Unique Challenges and Opportunities of Franchising in China:

Categories: Business In China, China 101 | By Peter Pang

Depending on who you ask, China’s middle class now numbers at least 400 million people (more than the entire population of the United States) and it is growing rapidly. These newly prosperous people enjoy considerable disposable income, and they can be characterized, at least in part, by a fondness for Western products – especially fast…

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#ChinaToo?: Sexual Harassment in China and the Long Road Ahead

Categories: Blog, China 101, Sexual Harassment | By Peter Pang

#ChinaToo is a three-part series on sexual harassment in China and the changes that may be coming in the wake of the #MeToo movement in the United States. This article is the first installment in the series. Sexual harassment has never been much of a legal issue in China, at least until the #MeToo movement…

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A Series on the 2019 Foreign Investment Law: First Discussion: What Are The Highlights?

Categories: Blog, Business In China, Foreign Direct Investments | By Peter Pang

By Thomas Mattei and Anna Huang* IPO PANG XINGPU ATTORNEYS AT LAW Introduction Approved at the Second Session of the 13th National People’s Congress on March 15th, 2019, the high-profiled Foreign Investment Law of the PRC (hereinafter referred to as “FIL”) unfolds a new chapter of the foreign direct investment in China. This new law,…

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Spotlight on the Enforcement of the U.S. Foreign Corrupt Practices Act: 2018 and Beyond

Categories: Blog, Business In China, Financing in the U.S. with Chinese Investors, Legal Updates | By Peter Pang

By Peter Pang* The Foreign Corrupt Practices Act (the “FCPA”) is a U.S. federal statute that requires companies to observe certain accounting transparency standards and prohibits individuals and companies from bribing foreign officials. Because of its international reach, it can be used to impose civil and criminal sanctions against both companies and individuals operating anywhere…

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