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United States And China Law Blog

Concerns about weak intellectual property protection in China

The ability to protect intellectual property is vital. Intellectual property includes a company’s inventions, technology, and images. It involves practically everything a company sells to customers.

Infringement means loss of a company’s competitive edge. In the United States, intellectual property infringement lawsuits often result in multi-million-dollar verdicts. Yet protecting its intellectual property when doing business in China is challenging.

The need for patience when investing in Chinese businesses

Though fears of trade wars are ongoing, there also are continuing negotiations that may result in American companies having greater leverage when doing business in China. Such companies will also have to remain patient.

Investors need to understand that certain restrictions will exist when doing business with China. However, some of these restrictions may only be short-term restrictions.

The competitive Chinese market

American manufacturers have been having difficulty competing with its Chinese counterparts within that country. This is greatly in part due assistance from government officials, and due to issues of innovation.

China is now competing directly with American companies that used to dominate the market. Many American companies doing business in China have seen market share drops in recent years. This is in part because U.S. companies have underestimated the abilities of the local companies to innovate.

China business – success in difficult times

After months of hoping to avoid it, the trade war with China is gearing up. There are many changes taking place in both Chinese stock markets and finance that will affect foreign businesses in particular for the forseeable future.

It has long been said that the Mandarin word for crisis, Wéijī, is closely related to the word for opportunity, Jīhuì. That sense of optimism and being quick on your feet is more important than ever to having a successful business in China.

American policies impact a Chinese corporation

It isn’t always Chinese policies that interrupt a company’s ability to do business with a Chinese corporation. In some instances, American policy results in obstacles as well.

ZTE Corporation, a manufacturer of telecommunications equipment in China, has been the recent target for sales bans and other sanctions by the U.S. government. Plans for ZTE continuing to do business with American businesses are now on hold. A U.S. Senate bill named the National Defense Authorization Act contains an amendment preventing this from occurring.

The importance of understanding your Chinese partners

It appears to be making news lately that American companies doing business in China are finding themselves in hot water for not understanding its culture. For example, a number of companies faced criticism for posting maps that left Taiwan and Tibet out of Chinese territory.

This is more than an issue concerning crackdowns upon these businesses by Chinese officials. Chinese consumers likewise may turn away from doing business with such companies.

Getting started with a Chinese business

If you need to open a subsidiary or a trade office in China, the process can be very long and complicated. It is becoming easier as China opens up, but there are still many hurdles to overcome.

It’s important to approach the process very deliberately and carefully. These are a few things that can get you started. To complete the deal, however, it is important that you have proper consultation to navigate the process to a successful conclusion.

Streamlining of business registration in China

To lure more businesses to its country, China is planning on simplifying its business registration process concerning foreign-invested enterprises. It is known as the “One Window, One Form” policy. This process changing the business filing and registration process will take effect on June 30, 2018.

Rather than dealing with a number of different offices, foreign investors will now have one place to go concerning business registration requirements. Investors can then go online to access national, provincial and city level government services. There will no longer be requirements to appear in-person during the registration process.

Restraints placed on U.S. companies in China

When doing business in China, there are a large number of requirements that companies must follow. For example, airlines must remove any sort of information that would suggest Hong Kong and Taiwan are not under Chinese control.

Negotiations between Chinese and U.S. officials continue. While there appears to be progress in certain areas, China continues to tighten restrictions in others.

China trade – never time to relax

Most of the world is applauding the recent thaw in relations between China and the US for good reason. A trade war doesn’t help anyone in the long run. More importantly, many US businesses have a stake in the Chinese economy now, as do more and more entrepreneurs.

There was a reward for everyone who held on through the storm, showing that doing business right in China can be lucrative. A key part of that is carefully complying with regulations and laws while building relationships.

Shi Yan grid lawyer
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