商
Practice area

Business in China

Analysis, practice notes and commentary in this area from China Law Insider.

China Ends 32-Year Dividend Tax Exemption for Foreign Individuals: Who Actually Pays More
税

China Ends 32-Year Dividend Tax Exemption for Foreign Individuals: Who Actually Pays More

From 1 September 2026, dividends paid by foreign-invested enterprises to foreign individual shareholders are taxed at 20 per cent, ending an exemption in place since 1994—with no transition period and no carve-out for profits already accumulated. Official commentary suggests most investors will see no net increase. A client alert on who actually pays more, why treaty relief must be claimed before payment, why restructuring is not a free exit, and what FIEs and their shareholders should do now.

7 min read
Read the article →
China Tax & Cross-Border Investment
Hainan Island: An Aircraft Carrier for Free Trade
港

Hainan Island: An Aircraft Carrier for Free Trade

With its island-wide special customs regime in force since December 2025, the Hainan Free Trade Port has moved from policy blueprint to working economic pilot. An assessment of the dual-border “first line, second line” model, the concrete opportunities now open in trade, healthcare, tourism and advanced industries, and the governance risks that will decide whether China’s most consequential opening-up experiment succeeds.

8 min read
Read the article →
Foreign Direct Investment
A Second Set of Eyes: A Former General Counsel's Perspective on Secondary Outside Counsel
验

A Second Set of Eyes: A Former General Counsel's Perspective on Secondary Outside Counsel

Part four of a four-part series. Should a company satisfied with its existing counsel nevertheless maintain a relationship with a second firm? The answer is generally yes — not from dissatisfaction, but because loyalty should never eliminate independent judgment or optionality. On second opinions as good governance, and why the case is strongest precisely when the stakes are highest.

9 min read
Read the article →
Practice & Perspective
Beyond the Billable Hour: A Former General Counsel's Perspective on Retaining Outside Counsel
顾

Beyond the Billable Hour: A Former General Counsel's Perspective on Retaining Outside Counsel

Part three of a four-part series. Once a company has found counsel it trusts, how should the relationship be structured? The case that an annual retainer is not primarily a pricing mechanism but a relationship and risk-management one — examining limited versus unlimited quick-question retainers, and why the most valuable call a client makes is often the earliest one.

8 min read
Read the article →
Practice & Perspective
Choosing Outside Counsel: A Former General Counsel's Perspective
聘

Choosing Outside Counsel: A Former General Counsel's Perspective

Part two of a four-part series. When does a company genuinely need outside counsel, and when is Big Law the right answer rather than the automatic one? On why you do not hire a law firm but lawyers, responsiveness as a component of legal competence, and why cross-border work demands global experience and local expertise in the same adviser.

7 min read
Read the article →
Practice & Perspective
From the Inside Out: Why In-House Experience Changes the Way I Practice Law
判

From the Inside Out: Why In-House Experience Changes the Way I Practice Law

Part one of a four-part series. After four decades of practice, much of it spent inside multinational companies rather than advising them, a lesson that reshaped an approach to lawyering: a technically correct legal answer is not necessarily a useful business answer. On the 25-page memorandum problem, and why the most valuable advice moves from "no" to "how".

6 min read
Read the article →
Practice & Perspective
How Legal Due Diligence Creates Leverage for Buyers
尽

How Legal Due Diligence Creates Leverage for Buyers

Reflections from an energy and petrochemical M&A transaction: why the value of due diligence lies not in the number of risks identified, but in how effectively those risks are translated into transaction advantages for the buyer.

7 min read
Read the article →
Due Diligence
Case-Related Compliance for FIEs: Turn China’s Legal Risks into Growth Opportunities
法

Case-Related Compliance for FIEs: Turn China’s Legal Risks into Growth Opportunities

As foreign-invested enterprises (FIEs) , including wholly foreignowned enterprises (WFOEs) and Sino -foreign joint ventures (JVs) , remain integral to China’s economic landscape, they face potential legal risks tied to operational violations that could trigger criminal investigations.

6 min read
Read the article →
Compliance & Risk
China Still Matters: Why Long-Term Business Strategy Cannot Ignore the World's Most Complete Market
商

China Still Matters: Why Long-Term Business Strategy Cannot Ignore the World's Most Complete Market

The global business community has spent the past few years recalibrating its view of China.

3 min read
Read the article →
Business In China
The Great China Miscalculation: The Legal & Compliance Playbook for a Realistic China Strategy
法

The Great China Miscalculation: The Legal & Compliance Playbook for a Realistic China Strategy

Short summary for readers: In Article 1, we explained why many Western companies misjudge today's Chi-na—the mid-tech bottleneck, the new risk environment, and the trap of binary thinking.

6 min read
Read the article →
Business In China
Non-Compete Compliance under New Rules — Guidance for Foreign Invested Enterprises
劳

Non-Compete Compliance under New Rules — Guidance for Foreign Invested Enterprises

Late last year, the Interpretation II of the Supreme People's Court on Issues Concerning the Application of Law in the Trial of Labor Dispute Cases (“Interpretation II”) and the Guidelines for Enterprises on Compliance in the Implemen-tation of Non-Compete Agreements (“Compliance Guide-lines”) were

3 min read
Read the article →
Labor & Employment
How Smart Investors Structure Their China Operations Today
投

How Smart Investors Structure Their China Operations Today

For foreign investors entering China, the first strategic decision is rarely about products, customers, or even geography, but about structure.

5 min read
Read the article →
Foreign Direct Investment
Cross-Border Law as Strategic Advantage in a Fragmenting World
贸

Cross-Border Law as Strategic Advantage in a Fragmenting World

There is a particular kind of vertigo that accompanies doing business across borders today.

4 min read
Read the article →
Trade & Sanctions
When Common Law Encounters Civil Law: UK vs China Contracts
仲

When Common Law Encounters Civil Law: UK vs China Contracts

As part of a series of articles co-authored by IPO Pang Shenjun PLLC and Culbert Ellis, both members of the International Commercial Law Alliance (“ICLA”), the authors exam-ine key distinctions between English and Chinese contract law, particularly in relation to the selection of governing law and j

10 min read
Read the article →
Cross-Border Transactions
When Non-Renewal Becomes Termination: What China’s Latest Judicial Interpretation Means for Employers
劳

When Non-Renewal Becomes Termination: What China’s Latest Judicial Interpretation Means for Employers

For many years, employers in China relied on what appeared to be a clear statutory framework: fixed-term employment contracts could be renewed once, and upon expiration of the second term, an employer could elect not to renew without necessarily incurring ter-mination liability.

4 min read
Read the article →
Labor & Employment
Don’t Get Left Behind: FIEs’ Must-Know Legal Compliance for China’s 2026 Steel Rules
贸

Don’t Get Left Behind: FIEs’ Must-Know Legal Compliance for China’s 2026 Steel Rules

In 2026, China introduced two major regulatory updates affecting the steel industry: restored export license management and revised Steel Industry Normative Conditions.

4 min read
Read the article →
Trade & Sanctions
China’s Two Sessions 2026: A New Era for Foreign Investment
投

China’s Two Sessions 2026: A New Era for Foreign Investment

Below, we set out the four key policy pillars that emerged from the 2026 Two Sessions and what they mean in practice for foreign-invested enter-prises (FIEs) operating in or considering entry into the Chinese market.

4 min read
Read the article →
Foreign Direct Investment
The Great China Miscalculation: Why Many Western Companies Are Getting Their China Strategy Wrong
商

The Great China Miscalculation: Why Many Western Companies Are Getting Their China Strategy Wrong

For more than two decades, multinational companies approached China with a straight-forward strategic formula.

7 min read
Read the article →
Business In China
China’s Economy Is Slowing — Why Foreign Investors Still Cannot Ignore It
投

China’s Economy Is Slowing — Why Foreign Investors Still Cannot Ignore It

For three decades, foreign companies saw China as an unmatched manufacturing hub and a vital source of global demand.

4 min read
Read the article →
Foreign Direct Investment
China’s War on Squatters and Hoarders: Revolution on Trademark Law
知

China’s War on Squatters and Hoarders: Revolution on Trademark Law

On D ecember 27, 2025, China unveiled a New ly Revised Draft Trademark Law (“New Trademark Law”) for public comments for a period of 45 days, namely, from December 27, 2025, to February 9, 2026.

6 min read
Read the article →
Intellectual Property
America and Iran: A Prime Chinese Investment Opportunity
投

America and Iran: A Prime Chinese Investment Opportunity

The February 2026 US-Israel strike on Iran rattled oil markets and the dollar. China's energy self-sufficiency and stockpiling left it comparatively insulated, and international investors from HSBC to Goldman Sachs are taking notice.

4 min read
Read the article →
Investment & Geopolitics
China's Tourist Train Push: Infrastructure Policy or Consumption Shortcut?
旅

China's Tourist Train Push: Infrastructure Policy or Consumption Shortcut?

Eight government departments want more than 160 dedicated tourist trains by 2030. But with household savings at record highs, the plan looks less like rail policy than a demand-stimulus experiment in tourism language — and it carries real market-access signals for foreign operators.

6 min read
Read the article →
Business in China
Two Principles That Determine Success or Failure in China
商

Two Principles That Determine Success or Failure in China

Over 20 years of advising international companies entering China, the difference between success and failure rarely comes down to product quality or company size. It comes down to two fundamentals that foreign companies consistently underestimate.

4 min read
Read the article →
Business in China
China's New Counter-Extraterritoriality Decrees: What Investors and Deal Teams Need to Know
法

China's New Counter-Extraterritoriality Decrees: What Investors and Deal Teams Need to Know

Two immediate-effect State Council decrees expand China's ability to counter foreign extraterritorial measures, raising new diligence, supply-chain and personal-liability risks for investors and deal teams.

5 min read
Read the article →
Cross-Border Compliance
What is a Legal Representative in China? (Video)
中

What is a Legal Representative in China? (Video)

Watch the video

1 min read
Read the article →
China 101
The Chinese Business Culture (Video)
商

The Chinese Business Culture (Video)

Watch the video

1 min read
Read the article →
Business In China
WFOE in China (Video)
商

WFOE in China (Video)

Watch the video

1 min read
Read the article →
Business In China
Joint-Ventures in China (Video)
商

Joint-Ventures in China (Video)

Watch the video

1 min read
Read the article →
Business In China
Franchising in China (Video)
商

Franchising in China (Video)

Watch the video

1 min read
Read the article →
Business In China
ICP Licensing in China (Video)
商

ICP Licensing in China (Video)

Watch the video

1 min read
Read the article →
Business In China
Renting an Apartment in China (Video)
中

Renting an Apartment in China (Video)

Watch the video

1 min read
Read the article →
China 101
The Protection of Trade Secrets in China (Video)
商

The Protection of Trade Secrets in China (Video)

Watch the video

1 min read
Read the article →
Business In China
Mergers and Acquisitions in China (Video)
中

Mergers and Acquisitions in China (Video)

Watch the video

1 min read
Read the article →
China 101
Domain Name and Trademark Scams in China
标

Domain Name and Trademark Scams in China

Urgent-looking emails claiming your domain or trademark is about to be lost are almost always solicitation scams. They are also a reminder of why first-to-file registration matters.

4 min read
Read the article →
Intellectual Property
Why China Matters #3
论

Why China Matters #3

China matters because it continues to see significant improvement in the development of intellectual property (“IP”) right protection. In 2017, the country received 1.38 million invention and utility patent applications, a 14.2 percent increase from the…

3 min read
Read the article →
Opinions
VPN in China, Should You Worry?
商

VPN in China, Should You Worry?

Anyone that has ever been to China at least once will be familiar with the internet censorship that one can expect to experience while visiting or living in the country. One common way of circumventing the problem is using what is called a Virtual Private…

3 min read
Read the article →
Business In China
Why China Matters #2
论

Why China Matters #2

In the world of politics, no one does it better than China’s President Xi Jinping. Like a smart day trader on Wall Street: buy low, sell high. But the key is, when to buy and when to sell; like the gambler song made famous by Kenny Rogers: Got to know when to…

3 min read
Read the article →
Opinions
Why China Matters #1
论

Why China Matters #1

China, the final economic frontier, the world’s second-largest economy and a region with over 1.3 billion people, is a force to be reckoned and a partner, competitor and/or fellow superpower that must be fully understood, its policies be surgically dissected…

4 min read
Read the article →
Opinions
Resale Price Maintenance in China: The Predators of Price
价

Resale Price Maintenance in China: The Predators of Price

Pricing clauses in distribution agreements are among the most frequently overlooked exposures under the Anti-Monopoly Law, and the courts and the NDRC do not enforce them the same way.

4 min read
Read the article →
Antitrust & Competition
Software in China: Pay for Your Business Software or Pay the Price
商

Software in China: Pay for Your Business Software or Pay the Price

China’s reputation for its flagrant use of pirated software is well established throughout the world. According to a 2017 US News article , over 70 percent of computers in China run unlicensed versions of common software. This is the highest level of use of…

7 min read
Read the article →
Business In China
China’s Search for Judicial Independence
商

China’s Search for Judicial Independence

The courts in China are faced with an uphill battle in maintaining their independence at both an internal and external level. The Chinese judiciary’s close affiliation with the Party as well as the hierarchical nature of the court system has resulted in…

5 min read
Read the article →
Business In China
Germany Beefing up Its FDI Control: China in the Crosshairs?
商

Germany Beefing up Its FDI Control: China in the Crosshairs?

Effective since 18 July 2017, the German government strengthens control on attempts to take over German companies by investors from outside the EU or EFTA by a respective amendment of the Foreign Trade Ordinance (“Außenwirtschaftsverordnung”). The Middle…

10 min read
Read the article →
Business In China
Renting an Apartment in China: Know Your Rights
中

Renting an Apartment in China: Know Your Rights

Landlord and Tenant Rights in China Many foreign nationals have flocked to China’s largest cities in recent years, only to find that both the property market as well as Chinese landlord-tenant law are substantially different than in other jurisdictions. By…

7 min read
Read the article →
China 101
Trade Dress and Chinese Name, Keys to Foreign Brand’s Success in China
商

Trade Dress and Chinese Name, Keys to Foreign Brand’s Success in China

Intellectual Property and Branding in China’s Business Climate A common question in Chinese intellectual property (IP) law posed by many foreign businesses and counsels when they first begin operation in the PRC is the extent to which Chinese characters and…

8 min read
Read the article →
Business In China
The 2017 ‘Negative List’ Has Been Officially Issued
商

The 2017 ‘Negative List’ Has Been Officially Issued

Investments and Business Ventures in China China’s infamous attempt at exercising control over its inbound foreign investments is embodied by the yearly issuance of the Catalogue for the Guidance of Foreign Investment Industries (the Catalogue). For many…

1 min read
Read the article →
Business In China
Should You Drive in China or Lease a Car and Driver?
中

Should You Drive in China or Lease a Car and Driver?

China’s Driving Laws As China’s economy has continued to experience economic growth at a rate unparalleled among modern economies, the country’s GDP has expanded at a rate of nearly 6-7% per year for more than 20 years. The Chinese economic miracle doesn’t…

9 min read
Read the article →
China 101
How to Protect Trade Secrets in China When Employees Leave
商

How to Protect Trade Secrets in China When Employees Leave

Trade Secrets in China The challenge is thus how a Chinese company can protect its trade secrets when an employee quits to either start a competing business of his or her own or to join a competitor without violating PRC law in the process As China continues…

7 min read
Read the article →
Business In China
Obtaining an ICP License in China: A Business Necessity for Any Web-Based Presence?
商

Obtaining an ICP License in China: A Business Necessity for Any Web-Based Presence?

ICP License and China Law The Internet has exploded in China, and some of the world’s leading e-commerce and other web-based business like Alibaba, WeChat and others have originated from the PRC. However, the PRC does exercise stricter control over the…

8 min read
Read the article →
Business In China
Famous Trademarks and the Protections Offered Under Chinese IP Law to Such Marks
商

Famous Trademarks and the Protections Offered Under Chinese IP Law to Such Marks

China Law And Protecting Trademarks China is a “first registration ” jurisdiction when it comes to trademark protection, meaning that the first individual or corporate entity to register a trademark will generally take priority over subsequent applicants.…

5 min read
Read the article →
Business In China
Setting Up a WFOE: The Five-Step Registration Path
企

Setting Up a WFOE: The Five-Step Registration Path

MOFCOM's shift from approval to online registration cut months from the timeline for wholly foreign-owned enterprises. The steps are simpler, but the traps for the unwary remain.

5 min read
Read the article →
Foreign Direct Investment
Employee Handbooks in China: Why You Should Have One
商

Employee Handbooks in China: Why You Should Have One

China Employment Law and Employee Handbooks In many Western countries, written employee handbooks have been standard practice for most employers for decades. These handbooks provide a uniform set of guidelines that the employer follows in terms of employee…

8 min read
Read the article →
Business In China
Withdraw from China: Can It Be Done?
商

Withdraw from China: Can It Be Done?

Do you need help withdrawing your business from China? Although it may seem sheer lunacy to some due to the rapid growth of the Chinese economy in recent decades, particularly with its status as the world’s second largest economy, some iconic Western brands…

7 min read
Read the article →
Business In China
Independent Contractors in China: Worth the Risk?
商

Independent Contractors in China: Worth the Risk?

China Independent Contractor Lawyers As its economy has evolved China’s labor laws have also evolved. While independent contractors, an increasingly common trend in the United States and Japan, the world’s first and third largest economies, respectively,…

7 min read
Read the article →
Business In China
Franchising in China: An Opportunity Not to Take Lightly
特

Franchising in China: An Opportunity Not to Take Lightly

Direct cross-border franchising is permitted, but the 2+1 rule, mandatory pre-signing disclosures and trademark localisation decide who succeeds in the market.

9 min read
Read the article →
Business in China
Should You Be Legal Representative in China?
商

Should You Be Legal Representative in China?

Under Chinese law, every company must have a legal representative when starting a company or opening a new business in the PRC. A company’s legal representative is the individual who serves as the legal embodiment of the company’s interests for purposes of…

7 min read
Read the article →
Business In China
Should You Register Your Trademark in Chinese?
商

Should You Register Your Trademark in Chinese?

Many foreign businesses are reluctant to register their brand name into Chinese, assuming that the brand will be recognizable, distinctive, and protected by one trademark filing. In reality, it is critical to ensure that the trademark name is also registered…

5 min read
Read the article →
Business In China
Trump President: What’s in It for China?
商

Trump President: What’s in It for China?

Much of the world, China included, is in shock over the recent election of billionaire property developer and TV reality shows mogul Donald J. Trump in the United States. All of the pre-election polls, and even many of the leaders of Mr. Trump’s own…

6 min read
Read the article →
Business In China
The EB-5: A Legitimate Pathway to Obtain a Green Card?
中

The EB-5: A Legitimate Pathway to Obtain a Green Card?

The EB-5 visa is a United States visa program for immigrant investors that was first instituted by the federal Immigration Act of 1990. The EB-5 visa provides means to obtain a green card, and eventually a path to permanent residency in the United States, for…

8 min read
Read the article →
China 101
WFOE’s Registered Address, A Bit More Complicated Than You Think
商

WFOE’s Registered Address, A Bit More Complicated Than You Think

The Companies Law of the People’s Republic of China requires that all foreign-owned corporate entities have a registered physical address in China. However, many foreign investors have gambled (and lost) that Chinese authorities will not catch on if they…

7 min read
Read the article →
Business In China
New China’s Work Visa: A Welcome Change or Reason to Worry?
商

New China’s Work Visa: A Welcome Change or Reason to Worry?

In a recent development that could either spell great news or a reason for fear for foreign workers in China, on September 9, 2016, China’s State Administration of Foreign Experts Affairs (“SAFEA”), one of two Chinese government agencies currently charged…

6 min read
Read the article →
Business In China
Teaching English in China: Let the Buyer Beware
中

Teaching English in China: Let the Buyer Beware

As anyone who knows remotely anything about China can tell you, let alone anyone who has lived or is currently living in China, interest in teaching English in China by native (or not) English speakers has grown exponentially as China’s economy has exploded…

11 min read
Read the article →
China 101
No More Foreign Investments Approval
商

No More Foreign Investments Approval

What’s new with China foreign investment laws? On September 3 2016, the Standing Committee of the National People’s Congress of the Peoples’ Republic of China (NPC) adopted the amendments which modified the rules relating to the establishment and alterations…

2 min read
Read the article →
Business In China
China Cracking down on Malicious Trademark Registrations
诉

China Cracking down on Malicious Trademark Registrations

What does a deck of playing cards and a lighter have in common? ‘Nothing’, one could argue. On December 30th 2015, the Beijing No.1 Intermediate People’s Court argued otherwise and endorsed a creative argument in a case involving the world’s largest playing…

7 min read
Read the article →
Arbitration and Litigation
Quick Guide to Chinese Labor Law
中

Quick Guide to Chinese Labor Law

When the Opening Up process first began in China some three decades ago, the country had very little legislation on the books regarding employment standards for private industry. As the country’s economy moved further and further away from reliance on…

4 min read
Read the article →
China 101
Can I Do Business in China? A Checklist.
中

Can I Do Business in China? A Checklist.

Chinese Business Lawyers Doing business in China opens up unlimited possibilities for business growth . It also exposes the unprepared investor to significant risks. Our years of experience helping countless ventures to get off the ground and succeed in China…

2 min read
Read the article →
China 101