Common issues about the china business law

Foreign business companies who set up their business branches in china always concern about the basic law facts they need know to stay out of legal troubles in china and professional business law firms players a quite important role in it. The following aspects are most important.

First, is your business branch opened in china operating legally? China regulates serious in all requirements for doing business in china and it is necessary for you to form a legal entity to develop your business if you are going to do business in china for more than weeks. The entity can be a WFOE, a JV, or a representative office. What you should know is that some business is totally legal in USA or in Europe will be illegal in china, therefore you should do concrete research before your final decision.

Second, you should pay attention to that whether your business contracts are enforceable or not? You should better have a written contract in Chinese. Generally speaking, if your contracts are not spelled out clearly, the court in china will find its’ illegal and does not exist.  Chinese contract law is far less willing to imply things than western law. 

Third, you should pay attention to your intellectual property or trade secrets. That is to say whether you intellectual property is under proper protection. In order to secure protection in china you have to register in china. Generally to say china is quite good at protecting trade secrets that have been marked out by contract.