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…

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…