Shanghai Courts Reconsider Employment Contract Renewals: Time to Reassess Termination Strategy?

The PRC Labor Contract Law states that an open-term contract must be offered after two consecutive fixed-term contracts, unless the employee opts for another fixed term.
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China Targets Beneficial Ownership Information

These measures aim to enhance market transparency, uphold financial order, and combat money laundering and terrorist financing activities, by mandating all companies in China – including subsidiaries of foreign companies – to disclose beneficial owner information (BOI) to Chinese authorities.
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Chinese Court Publishes Landmark Judgment for Cross-Border Data Transfer

This landmark case clarifies that in hotel management, the transfer of personal information beyond what is necessary for fulfilling the contract must be subject to separate consent from the customer, rather than relying on a general consent through the privacy policy.
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Qualifications for International Freight Forwarding Companies in China

12 October 2024
By Rinki Li and Maarten Roos Despite China’s economy facing challenges, one of the sectors that has grown a lot over the past five years is cross-border e-commerce. Every day approximately nine million parcels are exchanged between China and countries around the world, making it easier and faster for consumers to "buy globally." Over the past […]
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Current Trends for Debt Collection in China

In today's challenging economic environment, more clients are seeking support with debt collection activities. One common service we provide is sending detailed demand letters (in China, referred to as lawyer’s letters) to the debtor, setting the stage for further legal action if payment is not made.
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Risks to VAT Exemptions on Cross-border Service Income in China

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.
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Establish a Chinese Subsidiary: Deciding on the Right Location

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?
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Common Key Red Flags in Chinese Legal Due Diligence

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

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.
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Terminating Employees in China through Negotiations

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.
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