China Questions

Aaron Cutler, Partner at Hogan Lovells, Washington, D.C. speaks to Jacelyn Johnson on the new CFIUS rulings and its potential impact on Chinese investments in the U.S. Lawyers and in-house counsels should potentially understand the stricter controls imposed as FIRRMA will significantly increase the number of transactions subject to CFIUS’ review.

A company in China is selling a copied version of my registered product. How do I work with the authorities to put a stop to the counterfeiting activities? And, if the situation gets serious, what is the best approach to taking the infringing party to court? What are the benefits, risks and consequences of the two options?

What is the best approach to litigation for a foreign company in China? What are the risks and restrictions to be aware of when drawing up a dispute resolution clause and selecting a forum? What specific features related to proceedings, jurisdiction and enforcement must a party take into account?

As an MNC with operations in China, are we legally required to establish data centers and servers in the country? Do I need to partner with a local company or SOE? What are the risks involved in big data and cloud computing, and how do I maximize cybersecurity?

We are a U.S.-headquartered multinational company and our China subsidiary is suspected of commercial misconduct. How do I gather the evidence and manage U.S. regulators' requests while ensuring full compliance with China’s employment, personal information and data privacy laws?

What are the regulatory requirements and administrative procedures to establishing an R&D center in China? Should I go in alone or find a local partner? What security measures should I have in place to protect my IP and technology and prevent employees from leaking trade secrets?

Which FTZ should I invest in and which sectors are off limits? Are the zones really more liberal towards foreign investment in practice? What are the administrative and approval procedures to set up a company?

How can I keep my company's information secure and comply with PRC regulations? How do I manage the information of my business partners, third parties and customers to ensure they are protected?

I have heard that underpaying social insurance is a major cause of labour unrest in China. How do I calculate employees’ contribution amounts correctly and ensure all payments are made in compliance with labour and insurance laws? What is the most cost-effective way to handle this?

What must I do when a regulator conducts an investigation into my company? What documents and evidence must I prepare and how do I show I am in full compliance? What are the pitfalls to avoid and what measures should I take to protect the company?