The Challenges of Franchising in China

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

The franchising concept is relatively new to China. In fact, as recently as the mid-1990s, the Chinese language didn’t even include a direct translation of the word “franchise.” Nevertheless, in recent decades, Western franchises have been proliferating in China like flowers after a spring shower. Although fast-food chains such as McDonald’s, KFC, and Starbucks have…

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Investors Fear China Might ‘Weaponize Its Currency” in the Trade War

Categories: Foreign Direct Investments, Outbound Foreign Investments | By Peter Pang

The US Council on Foreign Relations lists the US-China trade war as the most significant world event of 2018 – and it seems more than plausible that this event will retain its title in 2019. The frightening aspect of this scenario is the fact that neither side has exhausted its arsenal of weapons that could…

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Hiring Employees from Hong Kong, Taiwan, and Macau: What You Need to Know

Categories: Labor and Employment Law | By Peter Pang

The term “Mainland China” (with an upper-case “M”) is a political rather than geographic designation. It refers to the territory of China minus Hong Kong, Taiwan, and Macau, which issue their own currencies and enforce their borders with immigration barriers requiring document inspection. If your company seeks to hire employees from these regions to work…

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Reward and Remuneration Standards for Employee Inventors in China

Categories: Labor and Employment Law | By Peter Pang

If your company is involved in an industry where it is likely that at least one of your employees is likely to invent something in the course of his duties or using company resources, you need to remember that the treatment of employee inventions works differently than it probably does in your home jurisdiction. Naturally,…

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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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