Articles

Addressing the Hidden Challenges: Overseeing & Protecting Your China Operations

28 June 2024

Business leaders are uncovering significant issues within their local teams. This article sheds light on common HR and operational risks, illustrated by a real-world case study, and offers actionable strategies to safeguard your business in China.

Articles

Compliance Instead of Prosecution – How A Tech Company Was Saved from Criminal Litigation

26 June 2024

by Limeng Yang, Qiao Peng

A Shanghai-based technology company and its de facto manager were suspected of using another company to issue fraudulent VAT special invoices worth hundreds of millions of CNY without conducting any substantial business operations.

Articles

Risks to VAT Exemptions on Cross-border Service Income in China

18 June 2024

by Maarten Roos

Last year, a European client asked us to conduct a tax due diligence on their subsidiary in Shanghai, to determine whether all taxes had been duly paid. One of the key issues that we uncovered, was that the Chinese entity had been wrongfully claiming VAT exemption on services provided to their HQ.

Articles

Establish a Chinese Subsidiary: Deciding on the Right Location

11 June 2024

by Maarten Roos

While concerns remain over geopolitics and economics, we are once again supporting an increasing number of Western companies to establish manufacturing, trading or service subsidiaries in China. One of the key questions for foreign investors that we need to respond to is: where to best locate such a subsidiary?

Articles

Common Key Red Flags in Chinese Legal Due Diligence

4 June 2024

by Claire Li, Maarten Roos

When completing LDDs on Chinese Targets for European and North American multinationals, we often come across the same kinds of issues. Here is a selection:

Articles

How to Lose Your Trademarks in China (and how not to)

28 May 2024

by Maarten Roos

In a recent case, a potential client asked for our advice. Their Chinese registered trademark had been cancelled because a competitor had filed a non-use cancellation application, and the client’s local trademark agent had failed to notify the client thereof in time.

Articles

Terminating Employees in China through Negotiations

21 May 2024

by Maarten Roos

Chinese labor laws are relatively strict when it comes to unilateral termination by the employer. This is only permitted for one of several grounds listed in the law.

Articles

China Lifts Restrictions in Value-Added Telecom Services

16 May 2024

by Art Dicker, Matthew Ding

On 10 April 2024, China’s Ministry of Industry and Information Technology issued a Notice aiming to loosen foreign investment restrictions on certain Value-Added Telecom Services (VATS) in pilot areas.

Articles

Employees Setting up Competing Business Becomes Crime in China

13 May 2024

by Maarten Roos

The latest update to the PRC Criminal Law includes provisions to tackle employees have set up a parallel, competing business; and employees who disadvantage their employer when dealing with “friendly” customers or suppliers.

Articles