China Business Blog Archives | AsiaBridge Law - Engaging Lawyers in Asia

Parts 5 & 6: Can you make money importing PPE? How to ensure the products make it from the port to your inland destination point?

PPE Parts 5 & 6: Can you make money importing PPE? How to ensure the products make it from the port to your inland destination point? Insider’s Guide: How to buy PPE from China during Covid-19 pandemic. A growing number of people are looking into buying PPE from China for supply as the world scrambles…

PPE Part 4: Can you import Chinese made PPE into your country?

PPE Part 4: Can you import Chinese made PPE into your country? Insider’s Guide: How to buy PPE from China during Covid-19 pandemic. A growing number of people are looking into buying PPE from China for supply as the world scrambles to source equipment during the Covid-19 pandemic. Can you import Chinese made PPE into…

PPE Part 3: Does the Chinese seller actually have the ability to export the PPE out of China?

PPE Part 3: Does the Chinese seller actually have the ability to export the PPE out of China? Insider’s Guide: How to buy PPE from China during Covid-19 pandemic. A growing number of people are looking into buying PPE from China for supply as the world scrambles to source equipment during the Covid-19 pandemic. Confirm…

PPE Part 2: How to confirm if the supplier can actually make the PPE you want to buy.

PPE Part 2: How to confirm if the supplier can actually make the PPE you want to buy. Insider’s Guide: How to buy PPE from China during Covid-19 pandemic. A growing number of people are looking into buying PPE from China for supply as the world scrambles to source equipment during the Covid-19 pandemic. Confirm…

PPE Part 1: The dangers of buying PPE from “your guy’s” “China guy” Insider’s Guide: How to buy PPE from China during Covid-19 pandemic.

PPE Part 1: The dangers of buying PPE from “your guy’s” “China guy” Insider’s Guide: How to buy PPE from China during Covid-19 pandemic. A growing number of people are looking into buying PPE from China for supply as the world scrambles to source equipment during the Covid-19 pandemic. Introduction to our series on buying…

Force Majeure clause during the Covid-19 pandemic

Question: Will China suppliers exploit the Force Majeure clause during the Covid-19 pandemic? Note: This article was written in the middle of the Covid-19 pandemic of 2020, however the topics covered are relevant for any readers wishing to understand how a Force Majeure clause works in China. Why I am worried about a Force Majeure…

Dangers of not being formal with your China supplier contracts when sourcing during the Covid-19 pandemic

Dangers of not being formal with your China supplier contracts when sourcing during the Covid-19 pandemic I received an interesting question from a reader of my blog. I hope my answer will encourage you to be careful with your China supplier contracts. Question: Mike, My friend put me in touch with a supplier than can…

VAT Leak in China Manufacturing: Planning for Value Added Tax Rebate

VAT Leak in China Manufacturing: Planning for Value Added Tax Rebate “VAT leak” is an informal term used by different people to mean different things. China’s Value Added Tax (VAT) and Rebate system is complex and can be very confusing. In an earlier post on the Chinese Value Added Tax (VAT) system we raised the…

Coronavirus & VAT in 2020: “In times like these…” Mark Twain answers

Coronavirus & VAT in 2020: “In times like these…” Mark Twain answers “In times like these, it is important to remember there have always been times like these”. – Mark Twain China Sourcing, Coronavirus & Value Added Tax (VAT) in 2020 In this blog post, we will answer the following questions: Why is it important…

How the VAT Rebate System works in China manufacturing

VAT Rebates: Negotiating power tool of China’s Value Added Tax System If you are buying from China, understanding the basics of how the VAT system works is a strategic imperative. What are the dangers of buying direct from the factory (ExW). Buying in China? Complexities of the Value Added Tax System China’s Value Added Tax…

Coronavirus: Alarms & Opportunity for China Sourcing; Wuhan aftermath!

Coronavirus: Alarms & Opportunity for China Sourcing; Wuhan aftermath! The Coronavirus appears to have slowed down significantly with factories and the manufacturing infrastructure coming back online. Cautious optimism post Coronavirus. In today’s blog post, I’d like to look at the Coronavirus in terms of its impact specifically on the China sourcing industry. For example, if…

China Trends (Part 2): Increase chance your “good supplier” will turn bad in the next 12 months. Learn how to spot the red flags before it is too late. Red Flag Assessment: Want to make sure you are safe?

China Trends (Part 2): How to spot the red flags of good relationships going bad before it is too late. China Trends (Part 2): Increase chance your “good supplier” will turn bad in the next 12 months. Learn how to spot the red flags before it is too late. Red Flag Assessment: Want to make…

How to verify the supplier is stable? Good relationships at risk of going bad.

China Trends (Part 1): How to verify the supplier is stable? Prudent planning; good relationships at risk of going bad. How to verify the supplier is stable? Good relationships at risk of going bad. Corporate Assessment: When to conduct due diligence on a Chinese company? China Trends (Part 1): Increased chance your “good supplier” will…

Learn how to monitor your intellectual property rights in China

Learn how to monitor your intellectual property rights in China Learn how to monitor your intellectual property rights in China! Build a mechanism to monitor your intellectual property in China. In an earlier blog post “Trade War Strategies: Preventing your suppliers from violating your patents” we covered how to set up multiple layers of patent protection…

Trade War Strategies: Preventing your suppliers from violating your patents

Trade War Strategies: Are you at risk of your suppliers violating your patents? Raising the alarm to protect your patents! With the China-US trade war lingering. Your supplier may be about to jump into bed with your competitors. Strategies to protect your patents! With the China-US trade war lingering. Your supplier may be about to…

Using China Bilingual Contracts to protect your interests - an effective & affordable tool to enforce quality, price & lead time. Top 10 lessons for Supplier Contracts- learned the hard way during 20 years in China

Using bilingual contracts to protect your interests in China Using China bilingual contracts to protect your interests-even during a trade war! An effective & affordable tool to enforce quality, price & lead time. Top 10 lessons for Supplier Contracts- learned the hard way during 20 years in China Introduction: In an earlier blog post “Trade…

In terms of doing business in China, due diligence is the process of verifying the accuracy of the information given to you by your potential local partner.

Due Diligence in China: Essential questions to ask In general terms, “Due Diligence” is an investigation of a business, individual or deal to establish facts, evaluate potential and identify risk. In general terms, “Due Diligence” is an investigation of a business, individual or deal to establish facts, evaluate potential and identify risk. Introduction/ Target Audience…

Force Majeure - Business Advisory Services |

How a Business Advisor can complement Legal Counsel Having both a local Chinese Lawyer and an International Business Advisor can complement your Legal team to not only save you money, but also offer deeper insight than hiring just one or the other. Force Majeure – a clause found in a contract to remove liability for…

Trademarks Protecting your Intellectual Property

Concise answers to 5 strategic questions about Trademarks Protecting your Intellectual Property. Additional links provided with info on Trademarks in China.

Copyright Registration | Copyrights in China: Protecting your Intellectual Property (IP)

Copyright Strategy: China IS different Lawyers and businesspeople lacking China experience will tell you that since copyright is automatically granted when you create something original you need not worry about it in China. Those with deep China business experience paint a very different picture.

Can Patents be cancelled for non use in China and when is a compulsory license granted

Can Patents be Cancelled for Non-use in China and When is a “Compulsory License” Granted? If you are researching can Patents be cancelled for non-use in China and when is a “compulsory license” granted? If yes, click here to learn more … If you are researching can Patents be cancelled for non-use in China and…

Trademarks in China How to avoid non use cancellation compressor

Trademarks in China: How to Avoid “Non-Use Cancellation” If your trademark has just been approved by the CTMO recently or planning to file in China. Learn more on how to avoid non use cancellation. If your trademark has just been approved by the CTMO (Chinese Trademark Office) recently or you are thinking to file for…

China Supplier Contracts & Negotiations: PO vs Contract vs NDA - Part 1

China Supplier Contracts & Negotiations: PO vs Contract vs NDA – Part 1 Are you researching how to set up a China Supplier Contracts? If so, read more to learn useful tips in your dealings with Chinese entities. Are you researching how to set up a China Supplier Contracts? Looking for strategies for the negotiations?…

How To Deal With Suppliers About Defective Goods and Partial Shipment?

How To Deal With Suppliers About Defective Goods and Partial Shipment? Are you looking for tips on how to deal with suppliers? If you are asking the same question, then this blog is for you! There are 3 types of verification services that we need to consider if you doubt the reliability of the company. These type…

PRC Business Formation

HK and PRC Business Formation: Holding Companies, WOFE’s, Offshoring and Other Key Issues Common Question: I am setting up a HK LLC because I hear I can operate tax free, do I need to file my taxes each year in HK? I’m also thinking of setting up a company in China to help w sourcing.…

How to select a lawyer when doing business in China: Part 1 Introduction to how to select a lawyer when doing business in China Are you planning to invest in China? Are you buying from China? Wanna sell to China? Regardless which group you fall into, you probably already realize that there are major differences…

Trying to decide if you want to use a Lawyer from China or one from home? Click here to read 3 mistakes businesses make when not using a Chinese Lawyer...

Important Business Decisions: Using a Lawyer from China vs Hometown Lawyer Are you considering whether or not to use a Lawyer From China or one from home? A good Chinese lawyer with experience negotiating contracts with suppliers would know what terms to put into the contract to protect the buyer and not give the supplier a…

Dispute Resolution - due diligence, litigation and demand letters

Dispute Resolution in China: Tips for working with the BBB, Police & Embassy If you are doing business with China, at some point you will have a dispute. Regardless of who is at fault, how it started or if it is large or small, it’s good to know your options. We wrote this blog post…

Doing Business in China: Social & Regulatory Compliance: Strategies & Templates Doing Business in China: Social & Regulatory Compliance: Strategies & Templates Doing Business in China: Social & Regulatory Compliance: Strategies & Templates | Code of Conduct & realities … Introduction: (Doing Business in China) In this blog post contains excerpts from a 1 hour…

Do I Have Coverage in China if I Register My IP Via WIPO/ Madrid System?

Do I Have Coverage in China if I Register My IP Via WIPO/ Madrid System? Do I Have Coverage in China if I Register My IP Via WIPO/ Madrid System? Have you found yourself wondering if you have coverage in China if you register your IP via WIPO/ Madrid System? If so, read below what each…

Penalty Clauses: Do they work when sourcing from China? Need more info on Penalty Clauses while sourcing from China? Click here to do your due diligence on using penalty clauses while sourcing from China. Need more info on Penalty Clauses while sourcing from China? Read more to do your due diligence on using penalty clauses…

Managing Quality when sourcing from China

Managing Quality When Sourcing From China: Tips & Best Practices Are you looking at the best ways in managing quality when sourcing from China? Read some of our tips and best practices… Are you looking at the best ways in managing quality when sourcing from China? Read some of our tips and best practices… Can…

China Sourcing: What Are Reasonable Payment Terms? Negotiating Payment Terms: Medium Sized Orders Quality, lead time, price and payment terms. You only get what you are able to negotiate. The following blog post is to give some tips if you find yourself negotiating reasonable payment terms for the first time with a supplier. The target…

Q&A on China Sourcing and IP at the Australia International Sourcing Fair For the past few years, I have had the pleasure of being invited to Australia to speak at the International Sourcing Expo in Melbourne and Sydney. You can find information on the Australia International Sourcing Fair and seminars (past, present and future at…

How to Do Due Diligence on Chinese Suppliers? Often I’m asked about how to do due diligence on Chinese Suppliers and how to be sure it’s safe to do business in China. Some of the short questions I’m asked are things like: How do I know if it is it safe to do business with…

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How To NOT Get Knocked Off When Sourcing From China Do you want to learn How To NOT Get Knocked Off When Sourcing From China? If you are asking these kinds of questions, this article is for you! I got a great idea, but I worry that it will get knocked off by the factory?…

Here is a short Q&A for a very common question about foreigners registering Intellectual Property (IP) in China With regards to the certificate of incorporation, can the company holding the IP rights in question be registered in the UK? Otherwise, what options do we have? The applicant for the IP in China could be…

If the black and white logo is registered. Is my IP protected in color? Here is a short Q&A for a question that gets asked sometimes regarding IP registration for logos. At this stage we are interested in registering the attached logo, as we are already pushing through a PCT application that will buy us…

Client writes in to ask about labor laws and how to set up the office hours for his Chinese staff. As this question gets asked a lot, here are some basic points for your reference: Just wondering if I could borrow your brains and experience and get some advice on a decision that’s been on…

How to motivate a non-responsive supplier? When is the best time to initiate a legal course of action? (motivate a non-responsive supplier) Below is a typical case for reference if you are considering legal action against a Chinese entity to motivate a non-responsive supplier. I am in the middle of collaborating with a Chinese company…

Is it Legal & Safe to Hire a Freelancer in China? Questions & Answers (Hire a Freelancer in China) Q: More and more websites (like oDesk.com, Elance.com Freelancer.com) in English and Chinese are connecting international business people w Chinese freelancers to project work on a part time and sometimes full time basis. What do the Chinese…

Work With Your Chinese Attorney to Sue Your Supplier Sometimes miring through a lawsuit, whether against a supplier or an ex-business partner, can be more painful than the events that gave rise to the dispute. Although favorable results can never be guaranteed, foreign clients can take comfort in the fact that retaining a Chinese-based firm…

Right now, small and medium sized entrepreneurs can operate in the P.R.C. more confidently than ever. The Chinese government has committed itself to the protection of foreign partners’ investments, profits and legal rights. These guarantees protect against nationalization and uncompensated takings. If you want to start a business (aside from merely setting up a representative…

There are many benefits to hiring a Chinese law firm. Often times having boots on the ground is indispensable. Whether you are operating within Asia or abroad, it is always reassuring having someone on-site and ready to respond at first notice. Additionally, there are many procedures and functions that a foreign attorney, even with an…

“One China, two systems” In the United States, we tend to take for granted the Constitution’s Full Faith and Credit Clause. The concept is simple: any valid judgment issued by one state is fully enforceable in another state. Unfortunately, international civil litigation is not that simple and as a result the designated jurisdiction in your…

What Information Do I Need To File My Trademark Application In China? The notion that being there first somehow justifies ownership rights is a venerable and persistent one.” –Lawrence C. Becker, Property Rights: Philosophical Foundations (1977). Generally there are six requirements that the client must provide to the firm: Logo English text of the trademark…

After a year and half, our client’s trademark was finally granted by the Trademark Office in Beijing. The client asked me: “Do you have any guidance on requirements for usage and requirements for ongoing maintenance?” Good question. It occurred to me that this is something important for people to know about, after they tried so…

2014 is fresh and so the scams will be too. Make sure you’re prepared. Here’s four ways you can best protect yourself. Be sure to register your IP. China recognizes IP if it’s registered in China and not if it’s on the market or already registered in your home country. Find the right contract that…

More than once, when I review Purchase Agreements (PA) that buyers have already signed with his or her supplier, I’ve found that actually what he signed is a Purchase Order (PO). What are the differences between a PO and a PA? A Purchase Agreement is an agreement signed by both buyer and supplier focused mainly…

We all know we must register our trademark in China to get any legal protection. But what specific protection can be expected? According to the revised Trademark Law, there are three kinds in total: 1. Trademark. It’s not allowed to use the same or similar sign with a registered trademark in the same or similar…

While discussing how to protect yourself against trade fraud, one of our clients said: “I prefer dealing with an HK company, it’s safer, at least.” However, among all frauds I’ve heard about, half of the victims sent money to an HK account. Safe or not depends on what kind of HK company it is. Typically…

China’s top legislature– Standing Committee of the National People’s Congress (NPC) adopted an amendment to the Trademark Law which went into effect on 30th of August, 2013. The amendment, raises the compensation ceiling for trademark infringement to 3 million RMB (about 500,000 US dollars), six times the previous limit, it also includes clauses that will…

This morning, I spoke with a client. He said he needs a simple supply contract to use for his sourcing business in China. I sent him a checklist, so that he can let me know what he expects the contract to specify. He replied that he needed quick advice, he can’t sit and write all…

When I wrote blogs about protecting yourself while sourcing in China, I got a call from an overseas client who was trying to sell his wine to China. He told me he would fly to China to sign a contract with his buyer. The Chinese buyer approached the company and asked to buy seven containers…

Choosing Your Business Vehicle: Wholly Foreign Owned Enterprises Wholly Foreign Owned Enterprises (WFOE) usually take the form of limited liability companies and the liability of the foreign investor in respect of the WFOE is limited to the amount of capital it agrees to contribute. The risk of proceeding with a WFOE structure is that a…

Doing business in China is not easy. However, a local partner may help you navigate the Chinese business landscape easier. With a good partner you won’t have to worry about most of the headaches that come with the climate. A local partner can help you understand the law of the land, Chinese culture, especially with potential clients…

After our presentation regarding the importance of bilingual contracts at the Hong Kong sourcing fair hosted by Global Sources, some clients wrote me asking more about bilingual contracts. A few clients wanted to know, “Do you really think Bilingual contracts are necessary?” I understand clients’ concerns. We’re dealing with China; if something goes wrong, many clients…

Fraud can always accompany business; only sometimes does it actually reveal itself. We say, double your diligence before you pay. A couple days ago, a buyer voiced a complaint to me. The buyer told me that their supplier received payment for goods. However, the supplier denied receiving the deposit and refused to deliver the goods…

One of my clients asked me a question, which I believe is a common concern: “How can we protect our IPR effectively in China?” The following was my answer: 1. First of all, register your IPR in China, ASAP. All IP laws & regulations in China are based on the protection for legitimate registered IPR. …

How Much Tax Do You Have to Pay? After a long long discussion, Law of the PRC on Individual Income Tax (“IIT Law”) has finally been promulgated at June 30, 2011 and can answer your question of “How Much Tax Do You Have to Pay?”. According to the law, two types of expats should pay…