Carry Out Business Operation Seamlessly with the Help of China Business Lawyers

Most companies and entrepreneurs are sourcing from China for two main reasons. The first reason is the long-term objective of creating a market presence in China for the purpose of serving the economy. The other reason is a short-term objective of taking advantage of low labor costs in this part of the world. Forming a distribution contract in China is the best possible option for foreign businesses to distribute their manufacturing goods in Mainland China.


As an overseas company, if you are not willing to appoint agents in China to act on behalf of you, then going for a distribution contract is the ideal way to operate over here. The risk is less and the gains are enormous.


Working with Chinese manufacturers

Working with Chinese manufacturers is not easy because you have to be very careful regarding the agreement prepared for the same purpose. Price, delivery deadline, and quantity are the most important elements in the agreement as they are critical to the business establishment. These vital factors must be addressed right at the beginning of preparing a contract by the Chinese business lawyers.


A Chinese lawyer is required to draft a contract by clearly explaining these terms right at the beginning.


Incorporating these fundamental terms right at the onset can be done in two ways.


FIRST- The manufacturing contract drawn for the purchase of goods is a binding one for a particular quantity of product to be delivered within a stipulated time frame and a fixed price. The outstation purchaser has an obligation to purchase while the manufacturer is compelled to sell. Failure in any of these will be considered a breach of the agreement. A letter of credit is often attached to this kind of agreement.

SECOND- A contract stating the purchase of goods is formed only after the foreign purchaser submits the purchase order which is also accepted by the Chinese manufacturer for which the terms and conditions are laid earlier. This contract is however not formed when the foreign buyer does not provide a purchase order and the Chinese manufacturer does not have anything to accept it. In case there is no submission of an order or there is a rejection of order these are not considered a breach of contract. This type of agreement comes without a letter of credit.


China is really unpredictable in its measures for curtailing corruption. Also, it is unpredictable regarding enforcing those laws frequently. Chinese government’s behavior with foreign companies has always been that of a foster child. They always strike more on foreign companies to safeguard the interest of the homegrown companies. It has struck down and still continues to strike on the foreign companies a lot more. As a result, the foreign companies have been hit the worst in this regard.

Another very important point is that, in case, you are doing business in the Chinese environment with such a thing that is politically sensitive, then you have to worry a lot more and be extra careful. You may be hit anytime. This is a common practice in the Chinese business environment.

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China IP & Trademark Law Firms Can Get You Covered in the Best Possible Way

Registration of Trademark in China

Chinese trademark law provides foreign companies in particular with two essential legal remedies to take action against an unlawful trademark application in China. Registered trademarks shall be so distinctive as to be distinguishable and shall not conflict with any prior right acquired by another person.


China Lawyers can Better Represent you in the Chinese Court

Foreign investors can benefit from professional services and assistance before starting a business in China and after the beginning of their economic activity.  In addition to profound legal knowledge and practical experience, the dedication of Chinese lawyers can prove to be a gamechanger for your business. You and your company will be better represented in the Chinese court in the event of a trademark dispute.


You should also consider the experience of the China attorney who you are hiring. Here are a few questions that can help you determine whether or not the law firm would provide you with the best attorney to suit your needs:

  • What are the areas of expertise?
  • How long has the firm been serving clients and who are the clients?
  • What percentage of their law practice does business law constitute?
  • Do they have Chinese speaking lawyers in their firm?


China Labor Contract Law

In 2007, China has revised its Labor Contract Law and included clauses that addressed issues on employment contracts and redundancy. Being knowledgeable with the updated laws will help you save more money and be a better employer to your employees. Also, you need to be aware of Chinese Labor Law so you have an idea of the mandatory benefits and employee welfare and include it when you are coming up with a budget for your company set-up in China.


Trademark has a value not only to the owner due to its distinctiveness but also to customers who associate this trademark with a specific product or service. Moreover, if a foreign company wants to enter into a licensing agreement with a Chinese distributor, the foreign firm must register a trademark in China first. Most of the renowned Chinese distributors will only form a business relationship with overseas enterprises whose trademark is registered in China.

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