Author name: wensenleke

As already stressed the foreign investor has at his disposal several instruments to establish a presence in China. We already treated the WFOE ( http://blawg.lehmanlaw.com/wordpress/?p=1686 ) the FICE ( http://blawg.lehmanlaw.com/wordpress/?p=1695 ) and introduced the theme of M&A. Today it is the turn of the Joint Venture. First of all it is necessary to remind that …

Investment vehicles: the Equity Joint Venture (Part 1 of 2) Read More »

Corporate governance of an EJV Today, as promised, I am going to complete the exposition about the functioning of the EJV adding some very important information about the corporate governance. With regards to the governance of a EJV, it is necessary to point out that the Board of Directors represents the highest organ of power …

Investment vehicles: the Equity Joint Venture (Part 2 of 2) Read More »

E-commerce platforms are necessary to expand online business We have already exposed the legal framework regulating e-commerce in China ( http://blawg.lehmanlaw.com/wordpress/?p=1630 ), however I did not stress the importance and the role of e-commerce platforms here in China. E-commerce platforms, indded, are of basic importance for other business operators in expanding their own activity. These …

Platforms for doing e-commerce in China Read More »

There is no doubt that e-commerce represents one of the key strategies to expand or to accelerate the sales in China. Small, medium-sized and big enterprises can trade their products and services efficiently through this mean, and it is not surprising e-commerce is expected to grow  rapidly in China.  Indeed, a report by Forrester Research …

Potential of online sales in China Read More »

There can be many problems for those people involved with Chinese variable interest entities (VIE’s), and the problems can arise in many different forms. In an excellent article entitled, “Beware of Large Dividends” by Paul Gillis and posted on the “China Accounting Blog” website ( www.chinaaccpuntingblog.com ) on April 5, 2013, Mr. Gillis lays out …

VIE’s, Large Dividends and Increased Risk Read More »

As western countries are trying to enforce their own internal anti-graft laws in regards to doing business in China, in some ways these efforts are misguided and are leading to unexpected results.  The “South China Morning Post” ( www.scmp.com ) posted an article today, April 4, 2013, on its website, “Insight and Opinion” which sets …

Anti-graft, China, and the West Read More »

Since introduction of the Anti-Monopoly Law (AML) in China in August 2008, there have been very few judicial precedents in China. A very significant case was submitted to the Guangdong High Court less than one year ago.  This case involves two software giants, namely Beijing Qihoo Technology Co. Ltd. (Qihoo), and Tencent Technology Co. Ltd. …

RMB 150-Million Litigation involving two software giants in China for the Abuse of a Dominant Market Position Read More »

The China’s Anti-monopoly law (hereinafter indicated as AML), was adopted less than five years ago. AML went into effect at the beginning of August 2008. The declared purposes for the AML include protecting the public interest and promoting the socialist market economy. Protecting market competition and the legitimate interests of consumers are also listed as …

The new Anti-monopoly Law end the revised merger control regime Read More »

There is a slightly new twist to Chinese investments abroad. Now it appears more and more Chinese developers are buying projects abroad to attract Chinese investors.  The “Wall Street Journal” on-line ( www.wsj.com ) posted an article on March 26 which reports on this growing trend.  The article entitled, “China Developers Look Abroad-For Chinese Investors” …

Big Chinese Developers Looking for Chinese Investors Abroad Read More »

Today this entry is about the differences between “Direct sales” and illegal pyramid scheme in China. Qualifications for Direct Selling Under the Regulation on Direct Selling Administration (i.e. Order of the State Council No.443), which was adopted at the 101st executive meeting of the State Council on August 10, 2005, and which come into force …

Direct Sales and the illegal pyramid scheme Read More »