Law Offices of Justin J. Shrenger, APC
International Law
Local: 213-550-5497
Toll Free: 800-785-7031

Honest Analysis of Chinese-American Legal Issues

Contact Menu

United States And China Law Blog

Industries that are hit hard by U.S. tariffs on China

As the United States continues to stand by a 10 percent tariff on imports from China, some industries are beginning to feel the effects.

Businesses have not been able to ignore the increase in cost, and some have had to adjust how they operate. Here are some of the industries most affected by the U.S.’s trade war:

Differing perspectives concerning intellectual property and China

There appears to be obvious misunderstandings between China and the United States concerning intellectual property protection. And concerning differences, many authorities do not believe that China will budge.

The White House claims IP theft costs the U.S. close to $600 billion annually. While Chinese officials state they will improve upon intellectual property protection to increase innovation, they will not do so as a result of U.S. demands. By claiming there is no basis for such allegations from the U.S., China appears to imply that it will do nothing to remedy the situation.

What companies face when doing business in China

Not everyone is pessimistic about trade relations between the United States and China. While American companies in China will definitely face challenges, China may still tread lightly when it comes to disrupting business.

China can take certain steps to make life difficult for American companies. This could include slowing down of imports during customs. China could issue additional regulations aimed specifically at American companies. The Chinese government could even try to dissuade consumers from buying from American companies.

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.

 

Shi Yan grid lawyer
Back To Top