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.
联名口红,魔性广告,老干妈为何在做辣酱的路上越走越偏?-看点快报
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…

the Legal Implication of Corporate Seal in Chinese Corporate Practice

In China, every company, domestic or foreign invested, has a set of corporate chops, or corporate seals,  in particular the common seal or the general corporate seal (Gong Zhang in Chinese Pinyin), an instrumentality that is mandatory and indispensable for a legal entity to run and operate businesses here in China.

However, to many foreign investors, this…