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United States And China Law Blog

What businesses are booming in China?

The Chinese market may be facing many challenges with current events. However, the economy is still growing at a rapid rate. U.S. business owners and investors are still actively building their businesses in China to reach the globalized market. 

China allows many kinds of businesses to operate in their market, but it might be beneficial for business owners to know which industries are currently having the most success in the Chinese market.

What factors must be in a partnership agreement?

Every business partnership should establish a partnership agreement. However, the laws that dictate partnership agreements in China are different than they are in the U.S.

Business owners looking to form partnerships in China must ensure they take the time to understand the details they must include in their partnership agreements. Here is a brief overview of some of the essential elements that every partnership agreement between a U.S. company and a Chinese partner must include.

Will the U.S. and China establish a reciprocity agreement?

It is no secret that there currently exists monumental tension within business and trade operations between the United States and the People’s Republic of China (PRC). Meanwhile, innumerable contracts continue to connect the two countries despite seemingly incompatible regulations, political climates and investment strategies.

However, international companies have struggled with more deterrents than tariffs over the years. A lack of legal reciprocity has shown light on the difficulties of enforcing judgments between two different legal systems. Rather than recognizing and enforcing court rulings enacted in the other country, many consequences, benefits and favors are left virtually unenforceable overseas.

Terminating employees in China requires a specific process

In the United States, most employers reserve the right to hire or terminate at-will employees how they choose. They often do not have to cite a reason for the termination either, although they cannot terminate employees in retaliation for engaging in an activity protected by law.

However, this process is different when U.S. businesses operate in China. And business owners must be aware of this process to prevent complex business disputes

How do Chinese internet courts work?

As technology advances, it has quickly become a cornerstone for many businesses. Big tech companies, like Apple, create new tech products every year. Others, like Amazon, primarily conduct all of their business online. 

In response to the increase of business' internet components, China established online courts to handle the legal issues that arise in this area of business.

What to consider when choosing a location for your business

Despite all of the differences that exist between the U.S. and Chinese markets, there are several aspects of forming a business that do not change.

One of the most important aspects business owners must consider carefully is the location of their business. Business owners must ensure that the location they choose serves their business' needs and complies with Chinese laws and regulations. 

Do recent Apple concerns show risks of partnerships?

In a recent blog post, we discussed how many companies establish a presence in China through joint ventures. However, just as many U.S. companies expand their business through partnerships with Chinese companies and manufacturers. 

However, U.S. companies must take great care when considering an overseas partnership and evaluate all of the risks they could face beforehand.

New system announced to track businesses in China

Compliance is a top priority for every U.S. company. Business owners know this, of course. That is why they must take great care in every business transaction and venture.

However, complying with commercial laws in China can be slightly more complicated. It can be difficult for business owners to obtain properly translated versions of rules and regulations. And the regulations often work differently in different situations. This only increases the risks U.S. businesses face. And according to a recent report, the stakes may have just jumped higher with the rollout of a new data tracking system.

Differences and similarities of American and Chinese consumers

Americans have certain spending habits, merchandise preferences and values that drive their purchases, and Chinese consumers do too. As a business owner looking to expand into China, it’s important to understand how American consumers differ from their Chinese counterparts and the traits which they share.

The disposable income in China is rising steadily and the mainstream consumer category is set to encompass about 50% of the country’s urban residents. Companies that can understand what appeals to them will be in the best position to take advantage of the country’s economic growth.

News: Will U.S. businesses have to leave China?

There is no doubt that the ongoing trade dispute between the United States and China is having a significant impact on established U.S. businesses in China. In a past blog post, we discussed how many of these businesses experienced a decrease in sales and profit because of this current situation. 

But in a new development, the U.S. federal government claimed that they would order U.S. businesses to leave China. These claims are leaving business owners with several questions. Namely: can the government make them move their businesses outside of China?

Shi Yan grid lawyer
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