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United States And China Law Blog

The concerns of those doing business in China

Recent success of China’s middle class means that there is a pool of customers in that country that is too large for most businesses to ignore. Still, while domestic firms in China are thriving, foreign companies continue to struggle for a foothold.

The reason such businesses struggle is due to difficulties dealing with Chinese regulations. Entering the Chinese market is challenging as any business will have to meet a large number of demands.

Corporate establishment and investment in China

Culturally and legally, corporate investments in China are complex. It is vital to understand what sort of corporate structure to use. The right business entity can in some instances reduce costs and help the business cope with massive amount of regulations.

Chinese authorities may treat particular industries differently. And for every business venture in China, extensive and careful business planning must take place. Mistakes could prove costly and even prevent the venture from moving forward.

China’s new e-commerce law and IP protections

China recently adopted its e-commerce law. Its purported aim is to protect intellectual property rights as well as personal information. Those e-commerce operators that fail to fulfill their “duties to protect consumers” face significant financial penalties. This particularly applies to operators who fail to take steps to prevent intellectual property right infringement.

It is an ambitious undertaking for the Chinese government to hope that such a law can regulate and control e-commerce. Officials also hope to somehow promote more use of e-commerce in the country. How successful the law will be at preventing IP infringement remains to be seen.

Protection of IP interests of American companies in China

Talks between Chinese and American officials continue concerning tariffs and intellectual property (IP) concerns. The U.S. continues in its demands that Chinese improve IP protections regarding American businesses.

American officials are unimpressed by Chinese officials’ claims that their country follows the World Trade Organization (WTO) protocol. U.S. officials insist that theft of intellectual property continues. The U.S. also demands that China increase IP protections, improve upon market access for American businesses, and make efforts to reduce the $375 billion trade gap.

Talks of IP protections in China continue

Chinese Premier Li Keqiang states that his nation will never allow mandatory technology transfers to occur. He made these remarks to an official of the World Intellectual Property Organization (WIPO). Continuing discussions between the premier and officials of the WIPO will continue.

Such discussions concerning stricter intellectual property protections in China are a welcome note for American businesses. But whether there is any actual follow through needs to be seen.

Which U.S. companies face the most risk in trade wars with China?

The United States and China are engaged in a trade war. According to Fortune, these three U.S. companies are most at risk for financial losses: Boeing, Starbucks, and Westinghouse. Here is how the fate of these companies is dependent on successful relations with China.

 

Doing business in China requires compromise

China continues to be an attractive region to start or expand your business due to its ranking as one of the top consumer markets globally. You may have also noticed how favorably popular western brands have fared in China. But there is something else to consider before venturing to China to do business, you will be hit with a long list of demands.

You may already be aware of the logistical and cultural factors involved in starting or moving your company to China. But there are other factors to consider that you may not be aware of. Before you start doing business in China, be prepared to make a few compromises.

Mistakes to avoid while conducting business in China

The Chinese market is rapidly expanding every day, and American entrepreneurs are deciphering the best strategies for growing a successful business in a foreign country.

However, it is not easy. There are several mistakes business owners can make while expanding their business in China. Luckily, business owners can avoid these mistakes while building their company in a new country.

Trade tensions even impacting Christmas exports

The trade tensions with China are impacting a wide variety of industries. This is in part because China already plays a predominant role in the world’s overall economy.

One particular article highlights this point went it comes to exportation of Christmas products. The city of Shanghai has approximately 600 factories that produce well over half of the Christmas products manufactured in the world. Vendors sell these items in Shanghai at a wholesale market that is close to two square miles in size.

The yin and yang of business in China

In many ways, there is no better time to start a business in China. The government is encouraging private enterprise of all kinds and opening up the financial sector. Efforts are being made to streamline every process and reduce bureaucracy.

At the same time, however, there are rising trade tensions that are making everything much more difficult for American business owners. Imports are being delayed and everything American is getting extra scrutiny. For Americans who wish to do business with China it’s much more difficult to take advantage of the new opportunities. It takes skill and above all else partnership.

Shi Yan grid lawyer
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