China Questions

  • Employees of foreign-invested enterprises in China may decide to form a labour union. Companies may worry about the power of the union, and any obligations to negotiate or fund it

    October 10, 2009
  • Foreign investors can be caught out by China's registered capital or reserve fund requirements. Where an investment with funding primarily obtained from outside mainland China produces cash investment returns, the onshore structure may restrict the amount of cash that can be remitted out of the country

    July 29, 2009
  • For inbound investors, navigating the maze of available structures can be tricky. The development of the PRC Anti-monopoly Law has led to more scrutiny of acquisitions of Chinese companies, causing potential foreign investors to look at other ways of investing in the country; Danone's experience with Wahaha has in turn revealed potential pitfalls for joint ventures

    June 06, 2009