Archive for June, 2013

Is a Real Estate FIE Allowed to Borrow Foreign Debt

A foreign invested enterprise in China which is engaged in real estate business(“FIE”) would face the shortage of project capital. Then a real estate FIE is allowed to borrow foreign debt to ease capital shortage?
According to the latest internal rules issued by State Administration for Foreign Exchange of PRC, a real estate FIE, which was [...]

Published by admin on June 28th, 2013 tagged Uncategorized | 1 Comment »

What Conditions for a FIE borrowing Foreign Debt

For working capital or other reasons, a foreign invested enterprise(“FIE”) may consider loaning money from overseas entity or individual. Under PRC legal scheme, such loan will be deemed to be foreign debt and a FIE need to satisfy the following conditions before a FIE borrows foreign debt:
-          the percentage of the contribution by the foreign [...]

Published by admin on June 27th, 2013 tagged Uncategorized | 38 Comments »

EU-China investment agreement in the pipeline to boost (business) relationship

Today I would like to complete the description of the (business) relationship between China and the European Union, specifying some details about a new possible agreement which will boost not only investments in China realized by EU investors, but also the good “momentum” for Chinese investments in the old Europe. The European Commission in fact [...]

Published by admin on June 27th, 2013 tagged Uncategorized | 1 Comment »

China remains a key market for foreign investments

Today this entry is dedicated to the analysis of the importance of the Chinese market for the foreign investors and in particular for European companies. As an Italian citizen working in a Chinese Law Firm it is interesting to note how my compatriots and other European citizen find extremely attractive my position. Sometimes I feel [...]

Published by admin on June 25th, 2013 tagged Uncategorized | 1 Comment »

General Introduction to Representative Office

Under PRC legal scheme, if a foreign investor intends to set up a representative office(“RO”) in China, they need to carry out registration procedure(please note that they are not required to seek approval from the local counterpart of Ministry of Commerce for the formation of RO, which is different from formation of a foreign invested [...]

Published by admin on June 25th, 2013 tagged Uncategorized | Comment now »

The new role of the yuan

This entry is dedicated to the China currency, in fact, recently the Chinese yuan is playing a central role on the international stage, and for sure it will gain more attention in the near future.
It is a fact that the ‘people’s currency’ or rmb or yuan, namely the China’s currency is redefining the global economic [...]

Published by admin on June 24th, 2013 tagged Uncategorized | 1 Comment »

What Issues should be Stated in an Employee Handbook

After establishing a foreign invested enterprise in China, foreign investor then needs to consider establishment of labor system in the company. They need to craft employment contract, non-compete agreement, and also employee handbook to make sure the company will operate very well..
The company usually wonder what issues should be stated in an employee handbook. Some [...]

Published by admin on June 24th, 2013 tagged Uncategorized | 1 Comment »

Formalities for Setting up a Foreign-Invested Travel Agency

In this entry I would like to expose briefly the procedure for setting up a foreign-invested travel agency. I have already illustrated the content of the Regulations adopted in 2009 (http://blawg.lehmanlaw.com/wordpress/?p=1921), i.e.      “The Travel Agency Regulations 2009” (available in English at: http://ebookbrowse.com/cnta-regulation-on-travel-agencies-pdf-d432289434) which allow the establishment of a foreign-invested travel agency, and today to conclude [...]

Published by admin on June 24th, 2013 tagged Uncategorized | Comment now »

Should a Company Seek Approval from Employees about Formulation of the Employee Handbook

In practice, some lawyers believe that when a company intends to adopt employee handbook, they need to seek approval from the employees about the content of the employee handbook and then the employee handbook will become valid.
We would believe that is not a correct understanding about validity of an employee handbook. Article 4 of PRC [...]

Published by admin on June 20th, 2013 tagged Uncategorized | Comment now »

China’s “Smoke and Mirrors” Number Games

Sometimes when doing business in China, what you think you see may not always be what you get,  Numbers can be misleading and many times western businesses can be lead astray by some very adept Chinese pied pipers.  The watchwords of ‘due diligence” and “verify”, “verify”, “verify” are often relegated to the bottom of a [...]

Published by admin on June 19th, 2013 tagged Uncategorized | 1 Comment »