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In today’s globalized business environment, collaborating with Chinese firms is increasingly common and often essential for companies aiming to leverage China’s vast manufacturing capabilities and technological advancements. However, such partnerships also present significant challenges, particularly regarding the protection of intellectual property (IP). The issue of Chinese companies misappropriating IP from foreign business partners has become […]

Engaging in business without thorough due diligence can expose companies to significant risks, especially in a complex regulatory environment like China. Skipping this crucial evaluation step can lead to legal, financial, and operational complications. Below are the 10 key risks associated with neglecting proper due diligence when dealing with Chinese companies: 1. Risk of Fraud

In today’s globalized economy, China stands as a significant player, offering vast opportunities for businesses worldwide. From manufacturing to technology, the country’s industries are deeply integrated into the global supply chain. However, alongside the opportunities come challenges, particularly for foreign companies seeking to engage with Chinese firms. One of the most critical steps for businesses

China’s dynamic and complex market offers vast opportunities for businesses looking to distribute their products within the country. However, the landscape is fraught with legal and operational challenges that require careful navigation. Crafting effective distribution contracts is paramount to ensuring a successful and enforceable agreement. This article delves into the essential steps and considerations that

The use of intermediaries based in Hong Kong and Macau in transactions involving mainland Chinese manufacturers has become a prevalent practice in international business. These intermediaries can streamline processes such as payment collection and invoice issuance. However, they also introduce significant legal complexities and risks that businesses must navigate carefully. Understanding these risks is crucial

In the current era of globalized commerce, engaging with international partners is a critical strategy for businesses aiming to expand their market reach and bolster competitiveness. Among potential collaborators, Chinese companies are particularly attractive due to China’s significant economic size and its role as a global manufacturing center. However, while the potential rewards are substantial,

In today’s competitive global marketplace, trademarks are essential for establishing brand identity and building consumer trust. However, entering the Chinese market poses unique challenges, particularly due to the phenomenon of trademark squatting and the complexities involved in Original Equipment Manufacturer (OEM) relationships. This article explores the intricacies of trademark squatting, especially in OEM contexts, and

As global companies increasingly turn to China for manufacturing due to cost efficiencies and access to skilled labor, the protection of tooling—such as molds and other specialized equipment used in production—becomes a paramount concern. Tooling represents a substantial investment and is crucial for ensuring consistent product quality. However, several significant risks are associated with not

Conducting business in China requires a deep understanding of the local legal environment to ensure contracts are enforceable, clear, and legally sound. Foreign companies must adopt specific strategies that align with Chinese legal standards, thereby minimizing risks associated with language barriers, legal ambiguities, and jurisdictional challenges. This comprehensive guide outlines the essential practices for making

Expanding into the Chinese market through licensing intellectual property (IP) can provide lucrative opportunities for global companies. However, the intricate legal and regulatory landscape in China presents numerous challenges that can derail these efforts. Here, we explore the key hurdles companies often face when licensing IP in China and provide strategies to navigate them effectively.