Check out who you are trading with in China

Coincidentally enough, I am approached by two clients respectively from UK and US for advice on their situations where they are deceived by two fraudulent Chinese suppliers both selling second-hand machinery to the overseas market. Fancy enough that both of the two clients bought machinery for Iraq market.

They both were defrauded because they don’t…

China marketizes the loan interest rates offered by its financial institutions

China Cabinet headed by premier Li Ke Qiang has approved the full deregulation on the restriction on interest rates on loans extended by its financial institutions.

1.  remove the lower limit of seventy percent interest rate on loans, and allow financial institutions to determine the loan interest rate pursuant to business principles;

2.  remove …

Allocated lands in China: a gold mine for the few people

Allocated lands in China refers to those lands that are assigned to their users for free or in other words without charging the land grant fee. China had relied on the allocated system in utilizing its land as part of the old planned economy till early 1990s when China promulgated its regulation on grant and transfer of land use right.

Bear in mind that all land…

Pre-contract agreement in property deals in China

Deals of selling or buying properties in China involve similar procedures under China property laws. A typical deal often starts from the execution of three-party deposit agreement under which realtor, buyer and seller agree on certain terms of the deal. Under this three-party agreement, the buyer often pays a certain money as deposit (for understanding…

stretched understanding of shareholder’s pre-emptive right to purchase equity interests under China Company Law

It is a landmark court decision in China corporate law practice in the judicial system, having far-reaching impact for anyone that holds equity interests in China limited liability companies.

The decision was made not long ago by a Shanghai People’s First Intermediary Court in the high profile dispute between Fosun and Soho in regard of the equity interest…