Know the importance of knowing the compliance culture and employment law of China for the foreign companies.

To save your product idea and brand image, money spent on filing trademark registration is a wise decision. Although the process of trademark registration in China is a bit time-taking, the protection and security it offers to your company are simply unparalleled. Overseas companies willing to invest in China need to understand the requirements of the Chinese government first.

Employment Contract Conflicts With the New AZ Employee Rights

Due to the ‘first to file system, the outcome of any trademark dispute primarily hinges on who registered it first in China. The China National Intellectual Property Administration (CNIPA) performs an ex officio examination of the existence of identical and/or similar earlier rights to the one intended to be protected as a trademark.

 

It means that the existence of identical or similar earlier rights can prevent the registration of a trademark filed at a later stage and that the filing must be done as soon as possible. So, if you are planning to do business in China, it is important to register your trademark first.

 

Overseas companies willing to invest in China need to understand the requirements of the Chinese government first. Chinese authorities want several things from foreign enterprises that are willing to sell to the Chinese population. Here is a rundown of their requirements-

 

  • The Chinese government wants that foreign companies must open factories to employ and give preference in employing Chinese workers.
  • Foreign companies must share their technology and forcing foreign firms to hand over their technological secrets as the price of entry to the massive Chinese market.
  • Foreign firms must strictly adhere to the China employment law and do business over here in a Chinese way.

 

Importance of Cultivating a Strong Compliance Culture in China

Cultivating a robust compliance culture and a strong compliance tone from the top is paramount. Your most important first step to preventing China’s corruption compliance problems is to establish a strong anti-corruption policy that addresses both China’s anti-corruption laws and those of your home country. Under Chinese President Xi Jing Ping’s anti-corruption campaign, the enforcement has expanded to focus not only on governmental officials but also on the business communities. Now Chinese procurators and judges now put more weight on penalizing the crime of bribery.

 

Always remember to get the Chinese documents verified by your Chinese lawyer because there is a difference between the English and the Chinese versions. Moreover, the English version does not hold true in the Chinese court and hence getting it documented in Chinese is absolutely necessary. Also, they will require more time to prepare a contract that can protect both the parties and particularly the foreign party from ending up in a soup.

 

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Understanding the Impact of Anti-Foreign Sanctions Law of China

The Standing Committee of China’s National People’s Congress passed new legislation on “countering foreign sanctions”. Those in the foreign business community fear they could find themselves in geopolitical crosshairs. Under the new law, decisions to sanction entities — such as companies or their employees — are final. There is no possibility to appeal.

china law

 

The Standing Committee of China’s National People’s Congress passed new legislation on “countering foreign sanctions” on June 10. The law, first proposed during the NPC’s annual session back in March, is part of Beijing’s plan to push back more forcefully against foreign sanctions as they become an increasingly common tool in the China-U.S. competition, according to The Diplomat.

The new law is China’s latest and most wide-ranging legal tool to retaliate against foreign sanctions and is intended to give Chinese retaliatory measures more legitimacy and predictability, according to local experts.

 

Some of the potential responses spelled out in the new legislation are asset freezes, visa bans, business prohibitions, or deportations. One provision that has attracted particular attention is the ability for such measures to target not merely the entity complying with foreign sanctions or the policymakers that designed them, but family members of those parties or corporate leaders in their individual capacities as well.

 

Chinese experts say Beijing is simply taking a page from the playbooks of the United States and European Union, which in recent years have passed various acts to serve as a legal basis for their engagement with China.

 

Defending the law, Chinese Foreign Ministry spokesman Wang Wenbin told a media briefing here on Thursday that to safeguard China’s national sovereignty, dignity, and core interests and oppose western hegemonism and power politics, the Chinese government has announced countermeasures against relevant individuals and entities of certain countries.

 

Who Is Subject to the Anti-Sanctions Law?

Pursuant to Article 3 of the Anti-Sanctions Law, the criteria for China to take corresponding countermeasures are as follows:

  1. Any foreign country that violates international law and the basic norms of international relations
  2. Uses various pretexts or laws to contain or suppress China
  3. Takes discriminatory restrictive measures against Chinese citizens or organizations
  4. Interferes in China’s internal affairs.

 

The new law can be taken against not just individuals and companies but also staff, their spouses and immediate relatives.

 

“Meanwhile, we believe it is necessary for the country to have specific laws to counter foreign sanctions so that we have legal basis and guarantee for such countermeasures,” he said, ruling out that the law will affect China’s relations with other countries.

 

The Anti-Foreign Sanctions Law is so broadly written, those in the foreign business community fear they could find themselves in the geopolitical crosshairs. Under the new law, decisions to sanction entities — such as companies or their employees — are final. There is no possibility to appeal.

 

“The companies, no matter what countries they are from, must abide by the laws in the host country when they operate,” said He Weiwen, a former Chinese trade official who is now a senior fellow at a Beijing-based think tank.

 

American Chamber of Commerce chairman Greg Gilligan cautioned that the new law “presents potentially irreconcilable compliance problems for foreign companies”. Rushing through a new law without an opportunity for public comment severely jeopardizes foreign investor confidence in China’s legal system as well, he added.

 

 

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