Citizen-state relation culture difference between China and the western countries

I have been doing research on trust laws for some time in particular the comparison between Chinese trust laws and those of the Western countries such UK and USA.b

An obviously observatory difference manifested from trust laws is that western countries recognize and allow its citizens to use trusts and other legal instruments to reduce and evade tax burdens…

China Divorce: divide corporate equities indirectly held by one spouse

A client asked an interesting question regarding her attempt to divide her husband’s equity interests in a China limited liability company. Here is the story: the Chinese lady client got married with a foreigner husband ten years ago and now they are in the process of divorcing. The husband has invested indirectly through a BVI company, in a foreign-invested…

Foreign corporate owners of China properties: how to sell property and take money out of China

There has been quite a few inquiries in the past from foreign companies that own properties in China (either residential or commercial) on how they can sell their China properties and then convert the sale proceeds into foreign hard currencies such as USD or Euros and take the same out of China.

I wrote a post regarding foreign corporate owners intending to sell…

Fire the General Manager of a China Company

A foreign client approached me for advice to fire the general manager of its WFOE subsidiary in Shanghai.

Indeed,  firing a general manager can be a real headache in China.

Following the high-profile case in Shanghai, in which a fired general manager of a listed company wrestled with his employer and won (not really in a strict sense) the fight by having the…

Change title of China property based on a foreign court judgment?

A client from United States just got divorced with his American wife  through court proceeding, and in the American court judgment, a piece of real estate that was bought by the couple in Shanghai China was ordered to be owned by the husband only and the husband in turn will pay a sum of money to the wife.

Now the question is whether and how the husband can …

“Houses are for living in, not for speculating on” sounds sincere this time

This “houses are for living in, not for speculating on” has been out there since last December when China top leaders met up for an economic meeting. It has become a very popular slogan among either local governments and the media.

Since then, we have seen a steady increase of property curbing measures that are put in place by Chinese local governments…

China land ministry clarifies the mystery of how to deal with expired land use right

Finally, China Ministry of Land and Resources posted on its website yesterday a Q&A series in which the long-waited guideline on how to deal with land use rights that have expired in some cities in China.

Early this year, local government in Wenzhou, Zhejiang province was reported to be ready to collect renewal fee from people whose properties are sitting…

China to boost its property leasing market

As a way to rein in the wild-going property market in China, China State Cabinet in May of this year stepped up a new piece of notice telling its local counterparts to promote property leasing market to provide shelter for people who cannot afford to purchase properties.

I personally fully agree on the move which can be a successful way to tame the property market,…

International Trade Dispute Resolution in China: get affiliated companies to pay

A while ago, I wrote another post disclosing fraudulent international trade practice some Chinese exporters engage themselves in: Again, be aware and vigilant about who you are trading with in China.

So when you are deceived and caught in such fraud and you don’t want to just walk away bruised, you may have to think of a way to recover your loss. Here in…

New curbing measures send chill in Shanghai property market

Just the other day, on the night of November 28, Shanghai government has stepped up a few new measures to cool down the property market that has despised the previous two rounds of curbing measures in this year.

Basically, the new notice issued by Shanghai government says that

  1. families that purchase property in Shanghai for the first time (meaning having no other

Cross-border Financing: offshore loan against onshore security

With more and more Chinese companies going overseas for acquisition of foreign assets or equities, China State Foreign Exchange Administration (the "SAFE") has gone in line with the tide by facilitating cross-border financing whereby it has reorganized its rules on cross-border security or guarantee. In May, 2014, SAFE issued its restated regulation …

Mortgage loans for Chinese buyers of foreign properties

You all know that the Chinese people are buying up your land, esp in the USA, Canada, Australia or Singapore, unfortunately pushing up local property price, precipitating homes out of the reach of a lot more ordinary families. But sorry, I am not here to alleviate the problem but to add fuel on the fire.

Many foreign property developers have been targeting Chinese…

Property Management Services in Shanghai

Through my real estate legal practice, I have noted that quite a number of foreign clients leave their properties either to friends or relatives for care, and even some clients just simply leave their property unattended for years after purchase.

On the other hand, we do also note that many clients entrust their properties to properties to property management…

关于应收账款银行保理业务的监管提示

国际保理律师点评本则监管提示是中国证券监督管理委员会于2015年1月份发出的。通报的保理融资案件显示,在中国保理业务仍然是一个较为新鲜的融资品种。案件中的债权人转让人是一家新三板挂牌公司,按说规模应该不会太小,但对于保理融资的理解仍然存在重大的误差。对于无追索权的保理业务,简单地误以为,无论发生什么债务人不付款的情形,保理银行均无权向债权人追索。精准的理解是,无论是国内保理还是国际保理,保理商在无追索权保理业务中,其承担的风险仅仅在于债务人因自身信用问题而导致的付款不能的风险。一旦债务人就基础合同项下的任何问题提出纠纷,则认为存在一项商业风险(与债务人信用风险相对应)于此情形,保理商不会承担此类风险,将会按照约定将应收账款反转让给债权人或由债权人回购该出现商业纠纷的应收账款。

International Factoring In China Part II: assignment of receivables

YOU MAY DOWNLOAD THE PDF VERSION OF THIS POST HERE: china-factoring-law-assignment-of-account-receivables.

Assignment of receivables is the core of factoring business. An accurate and clear understanding of Chinese laws in respect of assignment of receivable is vital and paramount for engaging in factoring business in China.

As you may have noticed…

Again, be aware and vigilant about who you are trading with in China

It is not the first time I write about this topic for foreign companies trading with Chinese seller. You can check on this post “Check out who you are trading with in China“.

An American client recently complained to me about his problem with his Chinese vendor. The client has been purchasing aluminum sheets from the Chinese seller for years and they…

无权处分合同效力与善意取得-以单方处分夫妻共同财产为视角

笔者近期处理的一起离婚后财产分割案件引发了对无权处分合同效力以及善意取得制度的思考。相关法律问题着实让人为难,难怪法学家将“无权处分”称为“法学上的精灵”。

案件情况如下:夫妻婚后购买一套住宅,但仅登记在妻子名下(老公是外国人,没有购买资格)。不久,双方感情破裂,经法院判决离婚。但在离婚诉讼中,因为特殊原因,双方同意夫妻财产离婚之后再行分割。但妻子为隐匿财产,离婚后立即将房产转让给其一个朋友(但无法查证),价格远低于市场价格(可能会有百分三十左右的差价),且同时把一辆高级轿车亦转让给这位朋友。房屋的转让已经完成。…

China Family Law: spouse interests in real properties and corporate equities

As a part of family law practice, divorce cases are increasing in China esp in first-tiered cities such as Shanghai, Beijing and Shenzhen.

With the number of cross-border marriages between Chinese and foreigners, it is good for the foreigner spouse to understand the legal environment in China in case of an inevitable divorce, in particular, in terms of the …

Right and Power: a new understanding of their relationship

I have just read two articles regarding “right” which reactivate my interests on the jurisprudence issue and other related thoughts on some basic civil law issues. The two articles are “Rights” and “Legal Rights“.

Back ten years ago, when I was preparing my graduation paper for master degree, I was intrigued by the…