Legal Advice
Checklist of legal issues for doing business with Chinese companies
- Make sure you have a written contract.
- Investigate the reputation of the Chinese company you want to buy the products: financial, commercial history, and any legal or ethical compliance problems they have had.
- Know the legal regulations and compliance requirements related to the product you are purchasing, including regulations on importation, product safety, labeling, and environmental protection.
- Research the laws and regulations on intellectual property (IP) in China and your country, and make sure you comply with them, especially regarding trademarks and patents.
- Make sure to comply with customs compliance regulations and international trade regulations when importing the products from China.
- Have a compliance strategy and an action plan in case of legal or regulatory problems.
Keep in mind that legal regulations are constantly changing and this checklist is not exhaustive, but it does provide a good idea of some of the legal aspects to consider when purchasing products from Chinese companies. It is always advisable to have specialized legal advice.
Here are some points on the list that we consider crucial and that you should pay close attention to when doing business with Chinese companies:
- ¿Do you have a good contract? Do you have a valid and legally binding agreement? It is highly recommended to have a written contract, and it is highly recommended that this contract be written in the Chinese language. In legal terms, if something is not clearly and precisely specified in the contract, it is very likely that a Chinese court will find that the clause has no legal validity. If you want to ensure that your Chinese counterparty complies with the obligations set out in the contract, it is advisable to arrange for any disputes arising from the contract to be resolved in China.
- ¿Are you breaking any legal regulation on unfair competition, taxes, environmental or labor rights? It is crucial to be aware that doing business internationally and in China in particular implies being aware of these legal regulations and taking into account that Chinese laws in this regard may be significantly different from those of your home country.
- ¿Are you protecting the intellectual property of your product? Intellectual property (IP) registrations in your home country are not necessarily valid in China. To ensure the protection of your trademarks and patents in China, it is necessary to register them independently in China. It is important to note that China has a robust legal system to protect trade secrets, especially when they are covered by a legally binding agreement (such as a Chinese-drafted NNN Agreement).
At BCA we have experts in legal matters to advise you, fill out the following form and we will contact you.