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Understanding OFAC’s 50 Percent Rule: The Importance of Background Investigations for Chinese Companies

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Navigating the regulatory complexities of doing business in China is no easy feat, particularly when it comes to ensuring compliance with international sanctions. The Office of Foreign Assets Control (OFAC) 50 Percent Rule is a critical regulation that businesses must understand. This rule imposes sanctions not only on entities explicitly named on sanctions lists but […]

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Understanding and Navigating China’s Unique Trademark Subclass System

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China’s trademark classification system is widely regarded as one of the most comprehensive and complex in the world. While it is based on the internationally recognized Nice Classification System, China’s system introduces an additional layer of complexity: subclasses, which subdivide the 45 main classes into hundreds of narrower categories. This structure ensures a high level

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Strengthened Intellectual Property Protection in China: Opportunities for Foreign Companies

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China has made significant strides in strengthening intellectual property (IP) protection in recent years, creating a more favorable environment for foreign businesses operating in the country. This progress reflects both an enhanced domestic legal framework and alignment with global standards, offering foreign companies greater security and confidence in safeguarding their innovations and assets. Enhanced Legal

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Comprehensive Guide to Changing a Company’s Legal Representative in China: Updates and Key Considerations 

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In the dynamic and evolving business landscape of China, understanding the regulatory framework is essential for companies operating within its jurisdiction. One of the critical aspects of corporate governance in China is the designation and management of a company’s legal representative. The legal representative holds significant authority, serving as the primary individual accountable for the

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Adapting to China’s Revised Company Law: Key Updates Businesses Need to Know

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Effective July 1, 2024, China’s revised Company Law introduces significant changes that businesses must adapt to for continued compliance and operational success. These changes, impacting company registration, capital contributions, and compliance processes, aim to enhance transparency, corporate governance, and financial discipline. This article outlines the major updates and offers actionable insights to help businesses meet

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The Importance of Conducting Due Diligence on Chinese Companies: 10 Legal Reasons for Success

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Engaging with Chinese companies can open up significant business opportunities. However, the complexity of operating in a foreign market, coupled with the unique regulatory environment in China, necessitates a thorough due diligence process. Proper due diligence mitigates risks, ensures compliance with local laws, and lays the groundwork for successful business relationships. Below are ten legal

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Why a China NNN Agreement with Chinese as the Governing Language Is Essential for Protecting Your IP in Manufacturing

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When working with Chinese manufacturers, safeguarding your intellectual property (IP) and sensitive business information is critical. Without the proper legal framework, you risk IP theft, unauthorized production, and circumvention of your business relationships. A well-drafted China NNN Agreement—addressing Non-Disclosure, Non-Use, and Non-Circumvention—is vital to protect your interests. However, the enforceability of this agreement hinges on

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Legal Options and Strategies to Combat Bad Faith Trademark Registrations in China

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Trademark protection is a cornerstone of any robust business strategy, particularly in global markets such as China, where the first-to-file principle creates unique challenges. This article explores the available legal remedies for combating bad faith trademark registrations in China, provides guidance on evidence gathering, and offers strategic considerations to maximize success. Legal Options China offers

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How to Avoid Common Mistakes When Drafting Cease-and-Desist Letters for IP Protection in China

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Protecting intellectual property (IP) in China requires a nuanced approach that aligns with local laws, business norms, and cultural expectations. One of the first steps in addressing IP infringement is sending a cease-and-desist letter. However, a poorly crafted letter can be ineffective or even harmful to your case. To maximize the effectiveness of your cease-and-desist

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Avoiding Common Contract Mistakes in China: Essential Agreements for Manufacturing Success

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Entering the Chinese manufacturing market offers significant opportunities for global companies seeking cost-effective production solutions. However, navigating the complexities of Chinese business law, protecting intellectual property, and managing relationships with manufacturers require a robust legal framework. Key to this framework are comprehensive contracts, particularly the China Product Development Agreement (PDA), Non-Disclosure, Non-Use, and Non-Circumvention (NNN)

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