China Letter of Credit Security for Foreign Businesses: A Practical Guide
If you’re bringing your products into China—or buying from Chinese suppliers—you’ve probably realized that trust doesn’t travel well across borders. That’s where China letter of credit security for foreign businesses comes in. An L/C, or 信用证, acts as a financial safety net: a bank promises to pay your counterparty once the right documents land on the right...Read More
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Non-Renewal of Labor Contract in China: Can Foreigners Claim Severance Pay?
Here’s a scenario every foreign employee working in China should have on their radar: your fixed-term labor contract is approaching its expiration date, and your employer tells you they won’t be renewing. The question that follows is almost always the same — do I get severance pay? The honest answer is: it depends on where you’re working. Chinese law doesn’t offer a...Read More
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Understanding Liquidated Damages under Chinese Law: Key Points for Foreign Enterprises
In international business contracts governed by Chinese law, liquidated damages clauses are a common fixture. They set out pre-agreed compensation for breaches, helping both sides clarify rights and obligations while adding certainty to transactions. However, Chinese law places strict rules and judicial oversight on these clauses—rules that often differ from those in overseas common law or...Read More
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Know About China’s Foreign Investment Access Negative List in 2025
The 2025 Foreign Investment Access Negative List—jointly issued by the National Development and Reform Commission (NDRC) and the Ministry of Commerce on March 15, 2025, and effective June 1, 2025—is not just a policy document for foreign businesses targeting China’s market. It’s the definitive legal roadmap for mastering China’s foreign investment access and ensuring your investment...Read More
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The Core Legal Risks in International Trade Contracts
An international trade contract is the cornerstone of any successful cross-border transaction. Far more than a simple agreement, it serves as a legally binding framework that allocates risk and defines responsibilities between parties. The stakes are high: poorly drafted clauses can lead to disputes costing 12-15% of the contract value in litigation alone. Studies reveal that 37% of disputes...Read More
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Comprehensive Guide to Company Seals in China
In China’s business environment, the company seal (公章) is far more than a mere administrative tool—it serves as the legal representation of a company’s will, carrying significant binding force in commercial transactions and official procedures. Unlike many Western countries where signatures are primary, Chinese law recognizes the company seal as the ultimate proof of a company’s intent,...Read More
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