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

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.

China’s anti-terrorism and anti-monopoly laws

The Chinese anti-terrorism law aimed at international tech companies that do business in the nation. The legislation requires that all these technology firms their encryption keys and install security backdoors. Other requirements include having servers within the country, submitting communication records to the laws enforcement authorities and censoring websites having terrorism-related content.

The second legislation is the Chinese anti-monopoly law. The most notable effect of this law came to the limelight during a case involving Qualcomm. The San-Diego, California based semiconductor company had to consent to a $975million settlement deal to bring to evade charges under this law.

The two laws have served a severe blow to tech companies interested in doing business with China. However, their effect is not limited to technology firms alone the principle behind these legislations cuts across all industries: the idea of each nation keeping its money with its boundaries.

America’s hardline stance

The stance of America on its dealing with Chinese investors in the country does not make the situation any better. At the beginning of the year, Trump administration banned all companies from doing business with Chinese tech firms. The most affected was AT&T which had to cancel a deal with Huawei at the last moment.

It is reported that the primary concern was the possibility of espionage by the Chinese phone maker. However, this not the first time such is happening. In 2012, another Chinese telecom, ZTE came under the radar. The primary concern was the possibility of the Chinese government accessing high profile US data through the tech firm.

The business climate between the two nations took a further wrong turn this January when Trump announced to levy import tariffs of up to 30% on solar panels. The authorities cited to protect the local consumer from inferior good as the main reason. However, it is no doubt that China is the worst affected by this decisionIt is evident that the attack and counter-attack from both countries have placed business is a situation that only leads to losses and lost opportunities. Business can avoid the possible consequences of this tense political relationship by seeking the help of professionals. Only experts who understand the legislative landscape of both nations can help businesses navigate the already troubled waters. They provide the only hope of succeeding at doing business in China.

No Comments

Leave a comment
Comment Information
Shi Yan grid lawyer
Back To Top