Sell Chinese properties: what to do with the mortgage loan?

Though you may think otherwise of Shanghai property market, many people are starting losing confidence and thus selling their properties in China. The biggest sale is made by Asia No. 1 tycoon from Hong Kong, Li Ka Shing. He has sold several properties in Shanghai, indicating that he sensed a turning point to be coming soon.

But for individual foreign property…

Easy married, hard divorced in China (international marriage with Chinese women)

The world is flat, as depicted by the book so entitled. Cross-border marriages mushroom everywhere in the globe, including China, esp in big metropolis cities like Beijing, Shanghai, Shenzhen and Guangzhou.

There are many reasons why a foreigner will get married to a Chinese spouse (most often Chinese wives), and sometimes, they get married quickly or “flash…

Translation of legal documents: not a small deal.

In international businesses or cross-border civil affairs, English language dominates the writing of most documents. In the meantime, the party that does not speak English mother tongue will always wish to have the document in its own mother language.  In most cases, the English version will be written first and then translate it into the other language.…

Lock your tenants out? Right of defense for delaying performance of contractual obligation

As the external legal counsel for The Executive Center in Shanghai, the leading premium serviced office provider in Asia, a slew of legal questions have been put forward before me. Some of the issues are interesting and worth a post here.

As a serviced office provider, or landlord, the number one headache is delay or refusal by tenants in paying the rent for the…

What ensues when your China labor contract expires?

We are talking about fixed term China labor contract or employment contract. While this topic may not be very interesting to expat employees in China, it may be very relevant for foreign investors operating business in China.

Assuming that A signs a two-year labor contract with his employer, upon expiration of the contract term, his employer does not wish to…

Should I answer the questions for free?

This post is just for fun.

This blog invites multiple email inquiries from all over the world every day. Part of my work time is devoted to answer such inquiries. In most cases, clients may raise a few questions that don’t seem to consume much of my time and I would generally try to shed light and given answer as briefly as I can. After all, I am busy most of my day.…

JP Morgan probe:is it a worthy lesson to learn?

Bribery probe into JP Morgan hiring practice in China has drew extensive attention from both inside and outside of China. Web portals like Reuters (click here), Guardian (click here) have all run similar news on the topic.

Well, to a Chinese business man, what JP Morgan has done in its hiring practice is so normal, reasonable and even necessary. As a Chinese lawyer,…

Case study:development and transaction of industrial lands in Shanghai China

Just recently, the dispute between Premier and Menghai Chemical that grabbed a lot of media attention has come to its final end with the announcement of the judgment by the appellate court affirming the decision of the district court in Fengxian.

The gist of the judgment that most intrigued me and people interested in the case is that the court concluded that …

Mind whom you are doing business with – transit trade with China

Frauds in international trade with China take many forms.

We talk about a very common trick that often leaves the buyer outside of China in a very hopeless situation in recovering losses arising out of the trick: transit trade or whatever name you call it. It involves a third party in a separate jurisdiction in the international trade conducted by actual seller…

Want to sue a Chinese company? But which court? Jurisdiction Issue

I have been receiving email inquiries from abroad asking for help to sue a Chinese company that failed to deliver goods in compliance with contract terms. Very often, the foreign buyers find that the goods do not comply with quality standards and sometimes, the goods are stone, sands or useless powders. Fraud is pervasive and rampant in international trade …

China (Shanghai) Pilot Free Trade Zone:how does it benefit foreign investors in China

The China pilot free trade zone in Shanghai has just been launched at end of September, and a slew of regulations tailored for the FTZ have also been unveiled. In particular, the much expected “negative list” listing those industries that are restricted or prohibited from foreign investment is also issued.

Overall, the experimental FTZ in Shanghai…

Choose foreign arbitration for dispute resolution? Shagang and HNA drama

The whole thing, the legal battle between Shagang and HaiNan Aviation Group (HNA), has turned into a public event after more than 2000 passengers were affected in respect of their otherwise pleasant voyage.

The eruption of the row between the two companies that are mainly operating within China has raised a good question: why the hell do they choose to resolve…

the hardest nut: land reform, pending China all-important party plenary meeting in November

Two months away from the third plenary session of CCP central committee, according to HK Economic Times, as a critical part of the overall reforms much expected and longed for, reforms in regard of Chinese land regime has still been in dispute among the top echelon people in China Community Party.

It is no surprise to me at all. It is likely that the inability to …

What if there are multiple heirs to inherit one piece of real estate?

Very often in an inheritance case, there are multiple heirs entitled to inherit one piece of real property. In case that the heirs are not on good terms between them, there will be problem and anxiety arising from the possible joint ownership of the same property.

So what does the law say in regard of dealing with the situation in an inheritance case? Is it possible…

Rural land issues amid China urbanization ambition,a brief summary of China Urbanization Summit Forum

During the two days from August 31 to September 1, the Summit Forum for China Urbanization was held in Xiamen, eastern coastal city in Fujian province, China. The summit was in part sponsored  by Dacheng Law Offices. As a lawyer at the law firm, I attended the summit forum, and also submitted a paper analyzing some legal issues related to transfer and conveyance…

Deal with the property in China after you get divorced in your home country

There are always interesting issues coming up along the way I entertain inquiries sent to me from this law blog. It is worth to write them down just for people who may be looking for similar information and help.

Today, I got an email from a client in USA regarding an inheritance of a real property in Shanghai. The client’s father had just died recently in 2013,…

What is a legal person under Chinese laws

You may frequently encounter the phrase “legal person” when perusing legal articles about Chinese laws, in particular, corporate and business laws. However, you may inadvertently take the “legal person” in China as the same in your home country when it is actually not. which may lead to unmindful loss.

What is a legal person under

land use right as contribution in kind in incorporating Chinese companies

Land use right in China is regarded as a form of real estate. In practice, land use right can be used as contribution in kind in capitalizing a company in China. China Company Law says in its Article 27 that upon incorporating a company, an investor can use cash, intellectual property, land use right etc. that can be valuated and transferred as contribution in capitalizing…

Shanghai judge sexual scandal:what you learn from it?

The whole nation has just sipped a new drop of juice about a world that is not known to the public before: Shanghai judges found having great time in a night club with prostitutes.

Wow… it is those judges who are supposed to be upholding the high standards of morality and conducts in the society and they ought to be clean and upright. You don’t easily …

what if the Chinese partner defauts on joint venture contract or share transfer contract?

This is anything but a new topic. There are many essays and articles discoursing on this. However, there is still a great deal of confusion esp in terms of legal doctrines that can be used to support current practice.

Herer are the typical situations where this question often arises: (1) a foreign investor has signed a joint venture contract with the Chinese party…