Secrets Revealed For Hiring China Law Firms

China’s economy is facing a tough period. It has been noticed that whenever China faces any sort of economic slowdown, it starts tightening the noose on foreign companies. Often overseas businesses find themselves guessing where they must follow the laws and when they can just risk it. This is the main reason a growing number of international companies are getting into legal trouble in China.

How would China Trademark & Patent Lawyer Be Useful to your Business

To be able to get to have smooth-sailing operations without being stressed with all the technical details in one of the world’s leading business countries, hiring a Chinese law firm would be your best bet. The right Chinese lawyer can make a huge difference to your business. Attorneys of the China trademark & patent law office can add value in the obvious ways, helping to avoid early mistakes in complying with the Chinese regulations. China lawyers will help you to secure the copyright, trademark and trade secrets of your firm, tech products and inventions.

How would China Tech Lawyer Be Useful to your Business

According to CSIS, as bilateral U.S.-China tensions intensify, standards related to a new system of cybersecurity reviews are likely to be among the first tools Beijing may use to retaliate against U.S. companies in a trade war. They offer openings for the Chinese government to delay certifications or licenses needed for market access or to shut down a company which may already be successful in China. In order to perfectly deal with the tech regulations of China, you must seek advice from the professional China technology lawyer.

Choosing a Chinese law firm is a big decision. There are many factors to consider before hiring the firm.

Which practice area is most suited to your business?

If you are going to stick with law firm long-term, it is absolutely essential that you must know the specialization area of the law firm. There are many law firms in China that offer exclusive services on one particular area. For instance, there are legal houses that provide only China trademark and patent related services while others offer services on tech-related issues. Apart from these, you can also find Chinese law firms that offer 360-degree services from trademark to tech. It depends on you which practice area is most suited to the needs and requirements of your business.

Contingency Fee

It would be better to hire the China law firm that works on a contingency fee basis. You pay no attorney’s fees unless the firm recovers compensation for you. The lawyer’s fees will be a percentage of that compensation.

Look for the Track Record of the China Legal Firm

Ask your China attorney about the results of previous cases that were similar to yours. If a legal matter ends up in court, inquire about their settlement record and present situation. It is also important that the firm has a considerable number of Chinese speaking lawyers with a good written and communication skill. Your China attorney must also be able to write clearly, persuasively and concisely, as they must produce a variety of legal documents.

Conclusion

As a foreign business owner, it is important that you should feel comfortable in the presence of your China lawyer. A comfortable and friendly bonding will allow you to share relevant information to your case completely, openly and honestly. After all, a lawyer can’t fully assist you without knowing all of the pertinent information.

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Key Developments in China’s New Legal Reforms

In January 2019, Chinese government has reframed its legal structure and brought in several changes. Remaining aware of the latest developments is a key issue for the foreign businesses finding for opportunities in China. The US government has urged China to change intellectual property law, end forced technology transfers from the US companies and stop cyber theft of the American trade secrets.

Washington accused Beijing of reneging on commitments to change its laws to enact economic reforms, while Beijing called U.S. President Donald Trump’s tariff’s “barbaric.” Leaders from both countries are now vowing a long fight, despite slowing domestic economies. Shi Yinhong, a prominent international relations scholar from Renmin University, said the gap between the two sides was widening as Washington demanded a strong enforcement mechanism while Beijing wanted more leeway.

In the current scenario, the US and the European companies with a business interest in China should closely follow the changes in the Chinese legal framework to ensure their business stays compliant in China.

Individual Income Tax (IIT) Reform

China’s IIT reform introduced a host of changes to the system of individual taxation in the country. In addition to the introduction of special additional deduction and the reform of the 5-year rule, it is also discussed how the taxable basis apportionment between China- and foreign-sourced income is defined.

The tax reform includes the following major changes:

  • Tax brackets and tax rates
  • Special additional deductions
  • Cumulative withholding tax method
  • New method for determining employee tax type
  • Tax income categories

China’s New E-Commerce Law

China’s comprehensive e-commerce law will bring heightened pressure on online retail companies to fight the sale of counterfeit and copycat merchandise on their platforms. Coverage of the E-commerce Law is very broad. According to Article 2, e-commerce refers to any operational activities that sell goods or provide services via information networks like the Internet. One important feature of the new law is the requirement that online businesses must register their business and acquire all necessary licenses regulating particular activities, such as the sale of therapeutic drugs.

IP Protection Regulations

Amendments to the Trademark Law come down heavily on trademark squatters and those found guilty of trademark infringement – key grievances repeatedly cited by foreign brands in China. On 23 April 2019 China passed amendments to two major IP laws -the Trademark Law and the Anti-Unfair Competition Law (AUCL). Specifically, the Trademark Law has been amended in order to tackle bad faith trademark filings without an intent to use by way of clarifying Article 4 of the law.

Key points of China’s IP protection law

  • Increasingly greater entanglement with the internet, data and competition
  • Enhances in the statutory measure of damages
  • Greater concurrence of the patent system with those extant Internationally, particularly in the medical field
  • Easier securing of preliminary and interlocutory

In order to reduce the risk of incompliance, foreign businesses operating in China should immediately comply with the new laws.

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