Corporate Seal Fraud in China: the lesson learned from Tencent and Lao Gan Ma brawl

Just recently a piece of news has spiraled quickly among netizens in China. It is an interesting story between two most well-known Chinese companies: Tencent and Lao Gan Ma.

Tencent launches new social media apps for countering competition ...
WeChat is dominating every smart phone in China.
Lao Gan Ma Chili Oil, dominating Every China Family Tables

I. What Happened

On June 29, a court decision showed that Tencent had applied to…

Happy New Year of Pig from Landing Law Offices in Shanghai

In China, today is the first day of China lunar new year of pig.

The whole country is in a happy mood. A 7-day holiday has started from yesterday. A lot of celebration activities are going on in all parts of the country, from Beijing China Central Television to local TV stations, from big cities to small towns.

China Lunar New Year or Spring Festival is a time for family…

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…

A frequent inheritance-related scam many foreigners succumb to

Does it, the following cited paragraph, look familiar to you in any way?

Good Day Sir

I am an American and was contacted by Citic Bank in November of 2015 some months ago as heir to a sum of money from there bank.  They have set fees for months and I have paid all but this final fee which is in route to them by transfer, but they only give me 72 hours.  They have never told

Chinese FDI in Africa

Overview of overseas business of Chinese companies

China’s role in the global economy has rapidly changed. As Chinese FDI outflows are rapidly closing the gap with inflows, the country is expected to be the most important net investor in the world in the coming two years (Unctad, 2014).

The increasing importance of state-owned enterprises (国有企业,国营企业) in …

Never forget to add a clear liquidated damage clause in your business contracts with China

The world is now sourcing various products in and from China. You may be one of them.

Wherever you do business with China (I mean, Chinese businessmen), you need to sign a contract with your Chinese counterparts.

Unfortunately, as a new market economy where most businesses esp the small ones don’t really know much about market, Chinese businesses don’t…

Prohibited and limited sectors in China for foreigners

Prohibited and limited sectors in China for foreigners

The 12th Five-Year Chinese Plan covering the years 2011-2015 aims to further forge relationships with foreign companies.

Although its plan is promising for the development of China, foreigners keep in mind that many economic sectors are prohibited or restricted from entering. Regularly, the Chinese…

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,…

Be a bit adventurous when making investment in China

For any foreign investors initially making foreign direct investment in China, it must be a real adventure and challenge as China is a country with unique history, culture that are alien to any newcomers from outside of China.

As always till now, we as legal advisors for foreign clients, esp, those relatively big companies with serious commitment to Chinese…

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 …

18 ways to learn like the Chinese

This is an interesting article titled “18 ways to learn like the Chinese”, from online colleges web. Click here to read the whole article.

It is intriguing because for Chinese parents like me we have been looking out for western style education to insulate our children from being suffocated in terms of their creativity and social value. Chinese…

Manage your manager

A client came to my office telling a story that was shocking to an outsider. The client is a foreigner who has set up a WFOE in Shanghai two years ago producing cleaning products. As a foreigner unable to read any Chinese, she had to hire a Chinese manager as her right hand. In the WFOE, the manager is below one person only, the client, and above all other staff. …

my experiences of serving foreign clients as a Chinese lawyer in Shanghai

Getting engaged in foreign-related legal services for years here in Shanghai, I have found it an interesting topic to discuss how to get connected, and build good chemistry with foreign clients. In a word, never an easy job!

Based on my personal observation, the biggest insurmountable obstacle between foreign or expat clients and Chinese lawyers is the …

Avon bribery scandal in China, not really a big deal ran a piece of news reporting that, according to Wall Street Journal, people familiar with the matter disclosed that federal prosecutor had submitted their evidences to jury in the case of Avon overseas corruption. It was said that auditing report found that Avon employees had paid some hundreds of thousands USD to China governmental officials…

Tips for drafting business contracts to be used in China

Doing business in China can be so much different that you may feel it hard to adapt in your initial interaction with Chinese business people. As a business lawyer working for foreign clients, I have personally witnessed and experienced such differences in various occasions.

One of the conspicuous differences is the perception of the significance of business…

Don’t jeopardize the good chemistry with your landlord

I was helping a Turkish client to negotiate a lease contract for premises on which my client wants to open a Turkish restaurant. The two parties are in a really friendly and amicable atmosphere.

As always, the most difficult part of negotiation is the contract price. We know the landlord needs money and we try to cut landord’s initial quote. Apparently,…