It has been noted that most of the Western companies ask for a probable solution regarding the legal problems in China. The complexity that China lawyers face in offering a suitable solution of these problems are two-fold
- The China legal problem that a Western company is facing is totally unsolvable because of some legal errors.
- It cannot be resolved at a fee that will make sense.
In order to get rid of this problems, often China lawyers advised the foreign companies to keep a trusted China-focused law firm by their side at the very beginning. Here we are explaining the cost-effective ways to avoid these problems. Foreign enterprises need to remember that doing right things in a right way from the beginning can greatly help you for a hassle-free business dealing in China.
(1) The most common problem foreign companies face is that the Chinese government do not allow the Chinese companies to send money to the foreign clients they owe. As the Chinese government made it really hard to get the money out of the country, it has become really problematic for the foreign companies to get the money they owe. The ideal solution is to get complete knowledge about the China deal and act according to the category of transaction.
(2)The next big dilemma that foreign companies face is that when they make payment to their China manufacturers through a new bank account and the manufacturers claim they haven’t received the payment. It is known as bank switch scam that is quite common in China. In order to prevent this scam, China lawyers advised the foreign companies to get their supplier’s bank account information in advance and ask them to refer to “bank account information document” on their invoices, rather than listing out full bank details every time.
(3)Many times it has been experienced by the foreign companies that in spite of being a part-owner of a Chinese company they are not receiving any profit. It is the tech-companies that go through this type of situation most. The best way to get rid of this problem is to get your ownership documents properly checked by a reliable China lawyer.
(4)Another common problem that foreign companies face when they see their branded products showing up on Alibaba and various other online China shopping sites. The easy solution of this problem is to submit your application for a china trademark.
The bottom line is, China is not a difficult place to do business if you have good knowledge and experienced lawyers with you.