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United States And China Law Blog

Chinese New Year poses unique supply and demand challenges

China has become a country with sizable global economic influence and changes to their production outputs cause a worldwide ripple effect. As the Chinese New Year approaches, U.S. retailers are closely monitoring their supply chains.

 

How do I choose where to defend against trade secret violations?

If you watch a crime drama on television, occasionally you'll hear prosecutors and police talk about finding a "friendly" judge who will give them the warrant they need to advance their case. Lawyers on the defense side might do something similar. Such venue shopping happens in civil cases, too. The strategy is to find a setting that offers the best chance of achieving the desired outcome.

Many issues fall under the heading of business litigation. Intellectual property matters reflect just one. And under that umbrella is the specific issue of brand value protection through defense of trade secrets.

The current climate regarding doing business in China

China is a land of opportunities that most US business cannot wait to venture into, thanks to its large economy and population. However, since the beginning of Trump administration, the political climate between the US and China has been heated up in what some business analyst term as a Trade War. Here are some facts that show the extent of strain in the business relationship between the two countries.

Evidence gathering challenges in Chinese business litigation

On paper, China is a signatory to several international treaties intended to facilitate access to justice when commercial disputes arise and trigger business litigation. Those experienced in the process, though, will confirm that resolving such disputes is not a simple one.

Merely collecting evidence is often hampered by government restrictions. Once that compliance is met, cultural tradition can serve as a hurdle to achieving litigation success. To obtain needed information, the necessity of having legal counsel that understands the array of procedural and cultural obstacles is clear.

Potential disadvantages to doing business in China

China is among the most populated countries in the whole world which makes it one of the largest markets globally. Its move from being an export-oriented powerhouse makes China the most preferred business destination for all companies looking to expand abroad. Its economy has grown rapidly over the past decade.

With many Chinese consumers regarding western brands as of high quality and convenience, more US companies are looking at ways of establishing a successful business in China. However, this can come with its fair share of problems. Below are some of the disadvantages of doing business in China.

What does it take to reconcile different U.S. and Chinese ethics?

Have you heard the term "culture shock?" Canadian-born anthropologist Kalervo Oberg is credited with coining the term to describe the "anxiety that results from losing all our familiar signs and symbols of social intercourse." Such shock can be experienced in everyday life. It certainly is a common issue for Americans wishing to engage in business in China or most any other foreign country.

In various other posts on this site, we highlight some of the most significant challenges in doing business in China. These include the ever-changing legal landscape as China's leaders strive to close gaps that exist between their laws and those of others on the global stage. We have also discussed the importance of solid personal relationships as defined under the Chinese term, guanxi (gwahn-shee).

Are there nuances to negotiating employee contracts in China?

As we have noted in many of our previous posts, doing business in China can be very lucrative. However, it is not the same as doing business in the United States and understanding the many factors that make it different is essential to being able to succeed.

As in nearly any standard business arrangement, creating a firm foundation through contracts is a necessary step. Agreements are necessary across the full spectrum of relationships. This includes vendors, franchisees or partners in manufacturing. Nor can the importance of employment contracts cannot be understated. To make it worth your while to engage in business in China, you need to be aware of nuances in contracting.

How do I find a reliable business partner in China?

If you feel there is a lot of conflicting information about the pros and cons of doing business in China, you are not alone. There's good reason for the perception, as we have noted in previous posts. However, the fact of apparent inconsistencies doesn't mean that entrepreneurs in the U.S. should simply abandon thoughts of joining the field of Sino-American enterprises.

What it does mean is that it is all-important for you to be secure in your understanding of Chinese law. Equally essential is that you identify reliable potential partners and commit to taking the time that is necessary to develop relationships into a solid support network. Due diligence and working with a skilled attorney dedicated to protecting your interests is vital.

China and the U.S. are banding together against counterfeiting

You may have heard the expression “fake it till you make it.” The reverse seems to hold true in China. Counterfeiting has become the proverbial scarlet letter of the country. Chinese president Xi Jinping has announced an effort to aggressively combat Chinese counterfeiting.

The aim of China’s anti-counterfeiting plan is two-fold: to stop trademark and patent infringement of both foreign brands as well as domestic Chinese brands. China is seeking to maintain good business relations with the U.S. by taking action to police counterfeiting and preserve the integrity of foreign brands. It is likewise demonstrating a desire to protect Chinese innovators’ intellectual property from domestic infringement.

Implications of a dedicated IP court in Shenzhen, China

Veteran U.S. business operatives in China know there can be unique challenges in trying to grow and thrive in that market. Previous posts here have highlighted difficulties presented by the innate cultural and legal system differences between the two countries. At the same time, there is growing evidence that change is not only possible, but also actually underway on some fronts.

One example of this seems apparent in recent news announcing that the city of Shenzhen has opened two special courts. One is dedicated to addressing financial matters. The other is to focus on cases stemming from intellectual property disputes.

Shi Yan grid lawyer
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