Dear Business Owner, If you are planning to hire employees in China—or already have—you’ve probably noticed that China’s employment law system works very differently from what you may be used to. As a lawyer working closely with foreign-invested companies, I often see the same issues arise: misunderstandings about employment structures, underestimating compliance requirements, and avoidable disputes that end up being costly. This guide highlights the most important employment law issues foreign employers should understand when operating in China. Employment vs. […]

As China’s civil aviation industry enters a phase of high-quality development, foreign pilots—once highly sought after and commanding million-dollar salaries—are now facing tough decisions about their career paths. For over two decades, foreign pilots have played a pivotal role in China’s aviation sector, from supplementing flight routes to providing critical technical training. However, following regulatory tightening in 2019, the grounding of the 737 MAX, the COVID-19 pandemic, and the maturation of domestic pilot training, the situation has changed. The pilot […]

On June 27, 2025, China’s top legislative body approved the most comprehensive revision to the Public Security Administration Punishment Law in nearly twenty years. The updated law expands from 114 to 144 articles and will officially take effect on January 1, 2026. This major overhaul introduces new rules addressing digital-era misconduct, campus bullying, drone safety, and public order. Below are the nine most important changes. 1. Clear Definition of Legitimate Self-Defense: “Fighting Back ≠ Mutual Assault” For the first time, […]

As cross-border trade and investment between China and the rest of the world continue to expand, disputes between foreign companies or individuals and Chinese businesses have become increasingly common. These disputes often involve contract performance, delayed shipment, payment defaults, or product quality issues. For foreign parties, the key concern is: how to effectively and legally resolve such disputes in China while protecting their rights? Common Types of Cross-Border Contract Disputes Contract performance issues: late delivery, failure to meet agreed standards. […]

Dividing real estate during a cross-border divorce in China can be complex, influenced by several key factors. This article provides insights into the critical aspects that determine how properties purchased during marriage are split, especially when one spouse is foreign. 1. Core Principle: Real Estate Law of the Property’s Location Applies In cross-border divorces, the fundamental principle is that the property law of the location where the property is situated governs its division. According to Article 36 of the Chinese […]

Linked Companies Dealing with Chinese Financial Institutions in 2025 (Based on the People’s Republic of China Anti‑Money Laundering Law effective January 1, 2025 (2024 amendment), related PBOC regulations and FATF’s Fifth Evaluation Requirements) 1. Scope & Regulatory Framework Any foreign-linked entity conducting business with Chinese financial institutions—including the 27 branches and licensed subsidiaries directly supervised by the People’s Bank of China—is considered an “obligated associate” and must comply with China’s AML requirements. Regulators include: the AML Bureau of the People’s Bank of China, the National Financial […]

Li Qiang is the owner of a company. Due to the poor market environment and economic downturn, many projects have been shut down, and he has no choice but to lay off employees. Li Qiang is very worried about how to carry out layoffs in a legal and compliant manner so that the company can avoid compensation or minimize it as much as possible. I. Legal Basis According to Article 41 of the Labor Contract Law: “In any of the […]

Understanding Shareholder Liability in Company Debts In business operations, defining the responsibilities of a company and its shareholders is crucial. According to China’s Company Law, a company’s debts are its sole responsibility and have no direct connection to its shareholders, employees, or other entities. Limited Liability of Shareholders Article 4, Paragraph 1 of the Company Law states that shareholders of a limited liability company are responsible only for the capital they have committed (the subscribed capital). This means that beyond […]

In China, the dissolution of marriage can be pursued through two primary methods: consensual divorce and litigation divorce. Below is a detailed explanation of each process, designed to provide clarity and a professional outlook on how to navigate divorce in China. Consensual Divorce (For Couples Married in China) Eligibility and Process: Consensual divorce is available when both spouses mutually agree to end their marriage. This process allows the parties to negotiate terms regarding child support, visitation rights, and the division […]

According to Dronelife.com, there are over 500 drone manufacturers worldwide, with around 400 of them based in China. In fact, 8 out of the 13 bestselling drones in 2015 were Chinese brands. This highlights China’s dominance in the international consumer drone market. If you’re looking to sell drones in your online or retail store, China offers the best selection of high-quality, reliable suppliers. However, finding a trustworthy supplier requires careful planning, patience, and due diligence. You can either handle the […]