China real estate scandals:the lesson you should learn when investing in real estate projects

No one will dispute the fact that real estate industry is one of the most dirty and corrupt industries in China. Any worse one? A slew of scandals in real estate sector exposed recently in media has cemented the above statement.

1.  An official from local Minhang District government of Shanghai Municipality was discovered to be engaged in illegal business…

Subrogation right in China Contract Law, a case study

I am advising a client on his real estate dispute with his seller which is very interesting as it led me to think about two important issues under china contract law.

Here are the facts: my client entered into a real estate sale and purchase contract back in 2009 under which he agreed to pay for an apartment which at the time of signing the contract was not allowed to…

China real estate investment:buy cultural and historical houses

I ran across a piece of news on www.Ifeng.com telling a story of a couple from Singapore purchasing a historical house in Shaoxing City, Zhejiang Province, China, that is adjacent to the “Baicao Garden” depicted in the literature by the famous historic writer, Lu Xun.

The house was built a century ago by a noble family whose line of descendants runs…

Work ethic among Chinese employees: water that is too clear has few fish

Water that is too clear has few fish, and one that is too critical has few friends. This is a Chinese idiom from old history. This reflects well an aspect of Chinese culture and philosophy with respect to interpersonal dealing among Chinese people. It preaches the idea that one shall be tolerant with other people's mistakes and errors in order to be able to get along…

Corporate image, something foreign investors should uphold still in Chinese market

There are too many corporate scandals in Chinese markets, simply too many for any normal market in the world. You can label the Chinese market as the most corrupt and tainted one.

As a old Chinese proverb goes, he who touches pitch will be defiled. We see many international businesses degrading themselves after coming into China.

The latest example is KFC. The…

Should the couple both sign the contract for sale and purchase of the property?

In China, properties, personal or real, acquired during marriage are statutorily prescribed to be community property of the couple even though only the name of one spouse is registered as owner on the relevant title deeds or ownership certificates. Being community property in the case of real property such as apartment, houses, condo, office and other commercial…

Can a foreign investor invest in Chinese real estate leasing business?

Not long time ago, I got an inquiry regarding legality of a foreign invested company contemplating leasing part of its business premises/factory in Shanghai.

The company is a foreign invested enterprise engaged in manufacturing business. As a result of China’s economic contraction, part of its factory is now left idle. They want to lease the part of…