Guides
Every guide on this site is written and fact-checked by Brad Shu, a practising Chinese lawyer.
🏢 Company Setup 3 guides
China WFOE: Advantages and Disadvantages for Foreign Investors (2026)
The real advantages and disadvantages of a wholly foreign-owned enterprise (WFOE) in China — control, costs, registered capital, licensing limits, and when a WFOE is the wrong choice.
Closing Down a Company in China: Deregistration, Liquidation, and Getting Your Money Out
How to wind up a WFOE properly — the voluntary liquidation sequence, tax clearance, employee and creditor steps, the consequences of just walking away, and the simplified deregistration shortcut.
Setting Up a Company in China: WFOE vs JV vs Rep Office — Which Structure to Choose
WFOE, joint venture, and representative office compared — control, cost, speed, and what each vehicle can actually do, so you pick the right China structure before you register.
💴 Tax & VAT 2 guides
Individual Income Tax for Foreigners in China: Residency, Rates, and Tax-Free Benefits
How China taxes foreign employees — the 183-day and six-year rules, 3–45% progressive rates, the expat benefits regime that now expires in 2027, and tax treaty protection for short stays.
China VAT and Corporate Income Tax: What a Foreign-Owned Company Actually Pays
The two taxes every China entity lives with — 25% corporate income tax and 6–13% VAT — plus the small-profit preferences, invoicing under Golden Tax IV, and transfer pricing basics.
🛂 People & Visas 2 guides
Hiring Employees in China: Contracts, Probation, Social Insurance, and Termination Rules
China's employment law from the employer's side — written-contract requirement, the two probation traps, social insurance obligations, and the narrow legal grounds for firing an employee.
Work Permits and Visas for Foreign Employees in China: The 2026 Process
How a foreign employee legally works in China — the work permit (Class A/B/C), the Z visa, and the residence permit — plus timelines, degree legalisation, and the employer's own qualifications.
📋 Market Entry 2 guides
Buying a Chinese Company: M&A Process, Due Diligence, and Approvals for Foreign Acquirers
How foreign investors acquire Chinese companies — equity vs asset deals, the due diligence that actually finds problems (social insurance, chops, related-party debt), filing mechanics, and closing sequence.
Market Entry into China: Licences, the Negative List, and Where Foreigners Are Restricted
How to tell whether your business can enter China freely, needs a licence, or is restricted — the negative list, sector licences, free trade zone exceptions, and how to sequence approvals.
⚖️ Dispute Resolution 2 guides
Case Commentary: A Canadian Buyer Won a Quality Claim Against a Chinese Chemical Supplier — Including Its Downstream Losses
A 2022 Shandong High Court judgment let a Canadian buyer recover the purchase price, lost resale margin, and payments made to its own customer — but ordered return of the salvaged goods. What made the difference: a stamped refund declaration.
Case Commentary: A US Buyer's Shoe Shipment Went Bad in Japan — What the Chinese Court Awarded, and What It Refused
A Guangdong court applied the CISG to a US buyer's defective shoe order — found fundamental breach but cut damages for late notice. The notice, evidence, and damages-lessons matter to anyone importing from China.
🤖 Digital & AI 0 guides
Guides on this topic are in the works.
🏭 NNN Agreements & OEM Agreements 9 guides
China OEM Agreements: The Complete Guide for Foreign Buyers
Clause-by-clause guide to China OEM agreements for foreign buyers. Part 1: the complete clause map and intellectual property ownership and licensing — with Chinese court case analysis and drafting positions.
NNN Agreement Dispute Resolution: We Usually Recommend Chinese Courts over Arbitration
For China NNN agreements, Chinese court litigation usually beats arbitration on speed to asset freezing, cost, and enforcement — while arbitration retains real advantages in specific configurations. How the choice works, and how to draft the clause.
China NNN Agreements: The Complete Guide for Foreign Buyers
Why NDAs fail against Chinese suppliers and what replaces them — the three Ns, enforceability under PRC law, chop and entity verification, liquidated damages, tooling, subcontractors, and the full OEM contract stack, with a six-part FAQ companion series.
China NNN Agreements FAQ (1): Basics, Definitions, and What You Are Signing
The fundamentals: what NNN stands for, how it differs from an NDA, whether names and registration matter, and the questions buyers ask before anything else.
China NNN Agreements FAQ (2): Whether and When You Need One
Timing and necessity: when an NNN is essential and when another instrument does the job better - samples, purchase orders, manufacturing agreements, idea-stage projects, and suppliers outside China.
China NNN Agreements FAQ (3): Drafting the Agreement
Drafting choices that decide enforceability: what the agreement must contain, unilateral versus mutual structures, the permitted-purpose definition, duration layers, language, governing law, and a complete China-compliance checklist.
China NNN Agreements FAQ (4): Language, Governing Law, Execution, and Verification
Getting the paper right: which chop counts, whether a signature alone binds, Hong Kong entities, pre-signing disclosures, supplier verification, and how the language and law clauses are chosen.
China NNN Agreements FAQ (5): Money, Damages, Disputes, and Enforcement
When things go wrong: how large liquidated damages should be, whether punitive numbers survive, court versus arbitration, foreign judgments, demand letters, and the cost and speed of enforcement.
China NNN Agreements FAQ (6): Scenarios, Coverage Gaps, and Related Protections
The boundary questions: what an NNN does not cover - trademarks, patents, moulds, sub-suppliers, affiliates, employees - plus refusal scenarios, breach patterns, and how the pieces fit together.
🔍 China Manufacturing Risk Assessment 4 guides
China Supplier Due Diligence: What to Check Before Sending Money
A complete due diligence checklist for foreign buyers working with Chinese manufacturers: entity verification, financial health, litigation history, IP risk, quality system, and on-site audit — plus what each check costs and what happens when you skip it.
Why Your Supplier's Business Card Isn't Their Registered Name
Your Chinese supplier's business card says 'Quality Bags Co.' — but their registered legal name is 'Tianjin Junyi Premium Trading Co., Ltd.' The operating name and the registered name are frequently different entities. Here's why this dual-name structure exists, how to find the real name, and what it means for your NNN agreement.
Trading Company vs. Factory: Five Red Flags Your 'Manufacturer' Isn't Who They Say They Are
Many Chinese 'manufacturers' presented to foreign buyers are actually trading companies — middlemen with no factory, no production equipment, and no control over your moulds. This guide identifies five red flags that reveal a trading company posing as a factory, and explains why the distinction matters for your NNN agreement, your IP, and your ability to enforce.
How to Verify a Chinese Supplier's Registered Legal Entity
Before signing an NNN agreement or sending a deposit to a Chinese manufacturer, verify their registered legal entity. This guide shows exactly what to check: the National Enterprise Credit Information Publicity System (gsxt.gov.cn), the Unified Social Credit Code, trading company vs. factory identification, and the chop requirements.