10 Legal Tips for Doing Business in China

China is undoubtedly one of the most developed countries is the world and it is definitely a potential superpower. Therefore, for obvious reasons conducting business in or with China is a very lucrative option.
However, for all those who want to do business in China, being aware of some of the legal aspects is important.
Here Are Some Legal Tips Of Conducting Business On The Chinese Soil

• US companies doing business in China should not only take into account the Chinese laws but the US laws as well. The laws of both the nations have an impact on business dealings in China and it needs to be understood.

• Chinese commercial laws are changing fast to be at par with the commercial laws of the West, but it is not complete yet and there are some uncertainties.
• For those who are planning to invest in China, understanding the Chinese laws which encourage, prohibit and restrict investment in certain sectors need to be understood.
• There is a certain amount of difference between what the Chinese laws state and how the laws are implemented. Implementation of laws might be spotty.
• Chinese laws have been improved to protect intellectual property yet law enforcement is still a problem. While drafting agreements and structuring transactions, US companies need to focus on minimizing the chances of violation of intellectual property rights.
• China has not complemented the transaction from rule of man to rule to law. Therefore, the court system in China is not very effective yet. So, in case of joint partnerships and ventures with Chinese firms, US companies should minimize the risk of disputes.
• In case of agreements with Chinese companies, it is important to have a common understanding because same facts can mean different things to a Chinese and an US company.
• Before importing Chinese goods to the US, it needs to be determined whether these goods are restricted under US trade laws or not.
• Before exporting goods to China, it needs to be found out whether it is restricted under the US export laws or not. While most goods are not restricted, some of them are.