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Juha Lassila

New Regulations for Resident Representative Offices in China | Regulatory Updates - Dez... - 0 views

  • Representative offices cannot employ in excess of four foreign staff, including the chief representative.
  • representative offices will not be permitted to apply for tax exemption
  • representative offices may also not engage in any profitable activities
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  • If you require your China operations to directly buy and sell, have its own import/export license, and legitimately trade in China – you will need to change your current RO structure to that of a foreign invested commercial enterprise (FICE) or wholly foreign owned enterprise (WFOE)
  • 2. ROs are now more expensive to operate than a FICE or WFOE
  • foreign invested commercial enterprises (FICE) These are typically used for the following business activities: • Import-export and distribution • Retailing: selling goods and related services to individuals from a fixed location, in addition to TV, telephone, mail order, internet and vending machines, • Wholesaling: selling goods and related services to companies and industry, trade or other organizations • Agencies, brokerages: representative transactions on the basis of provisions • Franchising Use of wholly foreign owned enterprises (WFOE) in the services industry • Consulting, other professional services • Quality control, after sales services, product design, technical support, sampling (although minimum amount permitted)
  • WFOEs may also be used for manufacturing.
  • the establishment of both a FICE and a WFOE are rather more complex than an RO
  • The structuring and application of the new FICE/WFOE can be combined at the same time as the RO closure.
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    Hmmm... If FICE/WFOE are more complex to setup then what about FIPs - Foreign Invested Partnersips?
Juha Lassila

The Ins and Outs of Employment Background Checks in China - Davis Wright Tremaine - 0 views

  • Criminal records check
  • According to relevant laws and regulations, only persons without any criminal convictions may perform certain jobs,1 and applicants must obtain a Certificate of No Criminal Conviction (“CNCC”) from a local public security bureau before performing such jobs (“CNCC Jobs”).
  • commercial investigations are not recommended.
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  • Educational background and qualifications checks
  • Employers can check job applicants’ higher education, whether completed in China or abroad, via a website designated by the PRC Ministry of Education. In the case of education completed outside of China, an employer may require a job applicant to present a certificate issued by the ministry confirming the applicant’s education.
  • References from previous employers
  • It is important to obtain the job applicant’s prior written consent before initiating the reference check.
  • Sharing an applicant’s information
  • employer will typically want to share a job applicant’s or an existing employee’s information with affiliates, such as its parent company or subsidiary, to facilitate internal human resources management.
  • If an applicant’s personal information is protected as private, it can not be disclosed to a third party without the applicant’s consent.
  • Conclusion Criminal records Some jobs may only be performed by people without a criminal conviction. Employers must check a job applicant’s criminal record before offering a CNCC Job. Employers may check a job applicant’s criminal record by requiring the applicant to provide a CNCC. Employers should avoid checking criminal records through a commercial investigation company. Employers may use information received via a criminal check to determine employment. Privacy Generally, it is lawful for an employer to check a job applicant’s educational background and qualifications, ask for a reference from the applicant’s previous employer, and make an employment decision based on the result of these checks. It is important to obtain a job applicant’s written consent before initiating a reference check with the applicant’s previous employer. An employer may share background-check information with its affiliates providing it has obtained the job applicant’s prior written consent.
Juha Lassila

"Public policy" and the enforcement of foreign arbitration awards in China - Lexology - 0 views

  • Case Study 1: Morality
  • This concert, however, was suspended when Chinese authorities asserted that the performance included heavy metal music that had not been approved by the Ministry of Culture of China
  • the arbitration tribunal awarded damages to the performers
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  • the SPC concluded the performance did in fact violate China’s social public interest and, as such, the performers had breached the contract.
  • Case Study 2: Mandatory Administrative Regulations
  • Japanese company alleged the SOE was contractually obligated to pay back certain debt
  • SOE challenged the award in a Chinese court, arguing the award violated Chinese public policy because the repayment of the foreign debt to the Japanese company had not been approved by the State Administration on Foreign Exchange and this approval was compulsory. The lower court agreed and refused to enforce the award.
  • The SPC therefore reversed the lower court’s decision, ruling that the award could not be vacated on public policy grounds.
  • Case Study 3: Sovereignty of the Chinese Courts
  • a Chinese company and three foreign companies executed a contract to form a joint venture.
  • When a dispute subsequently arose between the Chinese company and the joint venture entity, the Chinese company commenced a lawsuit against the joint venture entity in the Chinese courts, which ruled in favour of the Chinese company and ordered the assets of the joint venture be impounded.
  • foreign tribunal held that the Chinese company had breached the joint venture contract by petitioning a Chinese court to impound the joint venture assets, and awarded damages to the foreign parties.
  • When the Chinese company did not pay these damages, the foreign parties brought suit in China, seeking enforcement of the arbitral award.
  • The Chinese court, however, held that the arbitration clause in the joint venture contract only covered disputes between the contracting parties and, therefore, did not cover the dispute between the Chinese party and the joint venture entity (which was not a party to the contract).
  • While no one can ever guarantee a foreign arbitral award will be enforced in China, the climate is better than many think.
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    "While no one can ever guarantee a foreign arbitral award will be enforced in China, the climate is better than many think."
Juha Lassila

ROCKETChina Seminar Monday -Tuesday 16.5.-17.5.2011 | LinkedIn - 0 views

  • 11:00 Market entry strategies, Prof. GanYaping, BTBU
  • 13:30 SME Oriented Research at UIBE -Beiging, Prof. Wang Fuming, UIBE
  • 09:45 Company Experiences in China; practical advice for Finnish SME`s aim at Chinese market Mr. RistoHelle, Konecranes, Finland
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  • 11:00 Relevant laws and regulations, Prof. GanYaping, BTBU
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