律师的忠告在法律自卫在中国
在他的第一次参观向中国, 2004年亚历山大· de Nereee喜欢什么他看见了。 如此,当他在香港请求设定De Nereee Advocates,它很多时间没有花费他决定。
“我由中国真正地迷住,但我也感觉幸运是生存在香港。 香港真正地是`中国光’。 不非常乐趣,但健康为您。 以香港人的相当被西化的态度和英语相对地高标准,营业状况为外国人这里是好然后在中国的大部分。 它是象瑞士在亚洲。 一切是组织完善和干净的”。
因此那里不然后要做的工作为律师在香港? “相当对面。 许多企业在亚洲选择香港作为他们的基地开始操作。 一个明显的选择: 所有牵头银行、承保人和会计是在附近。 由于它的有利税法和优秀法律基础设施,香港也扮演一个重要角色。 它实际上是有点儿`家庭从家’。 开始的一个安全避风港,如果您在中国大陆看做生意。 当然那里其他法律概念和基本的商业惯例申请。 在那个前个类别,当客户要求时做了并且笠头’我一般劝告他们的茶匙 带来他们的耐心和他们信用卡。
除金钱之外您将需要更耐心比在西方。 我认为这是一个陷阱为许多企业家在中国。 It takes considerably more time to do business here compared to other parts of the world. It’s also wise to bear in mind that the Chinese legal system is rather rickety.” And that is precisely where De Nerée provides his added value.
Protect your products
“Companies often ask us how they can protect their products against copycats. The first, most obvious, and safest method is not to disclose all the relevant information. Don’t share certain key aspects with a Chinese partner. That may sound like a lot of work, but the point is that if you don’t handle this issue well, you might be giving your biggest competitor in the future a leg up. A second preventive measure is to agree with your Chinese partner in advance that any questions of counterfeiting and liability for counterfeiting and damages that occur from counterfeiting, will always be subject to arbitration. Apart from the fact that winning a court case in China is extremely difficult for foreigners, arbitration has the advantage that you can settle the issue of liability and the compensation for damages in one go.”
Contracts
Which factors should Western businessmen take into account if they are about to sign a contract? “In theory, contracts in China are just as binding as in, for instance, the US, but in practice, enforcing them is difficult. If I draw up a contract, I always take into account the fact that parts of the contract will be subject to discussion again some day. You therefore build in some ‘small change’, so you remain in the game and retain a good position in the negotiations that are to come. People will typically say about contracting with Chinese: ‘The negotiations start only after the contract has been signed’. That, however, is not always a disadvantage. This attitude towards agreements will also give you the opportunity to re-negotiate should you find the terms of the agreement less favourable then expected.”
Labour
Is room for negotiation also important when drawing up employment contracts? “There are substantial differences between the West and China in terms of labour law and employment contracts. Hong Kong is quite Anglo-Saxon. Employment contracts can be terminated quite easily, generally with a months notice and without substantial compensation. The terms of employment agreements tend to be simple. They state your duties, when to perform them and for what consideration. Employers do not even have to withhold tax for the employee, employees pay their income tax themselves at the end of the year. Things are a little more complicated in China, because in theory at least, it is a socialist state. This means the law provides for all sorts of protection through trade unions and rules for redundancy payments. In practice, however, you will not see many companies comply with all the rules.”
Developments
“Labour law is a hot topic in China at the moment. Every so often an employee falls from scaffolding, or people work in very unhygienic conditions, often with dangerous materials. Regulations, or at least the execution of these regulations, regarding working conditions often leave much to be desired. Political steering on this issue often amounts to campaigns in which foreign companies are shown in a particularly bad light. They try to highlight the ‘Western-capitalist-exploiting-the-Chinese-labourer’ image as much as possible. On the other hand government authorities tend to look the other way when Chinese plants exploit their workers. It doesn’t seem likely that the newly drafted labour law will bring much change in the near future. The new law includes a requirement making trade union representation compulsory only for foreign companies. The upside to this development could be that it might make it increasingly attractive for Chinese employees to work for foreign businesses.”
Risks
Taking all this into account, how can you minimize risks? “Apart from trying to have all agreements governed by Hong Kong Law, it makes sense to not take more risks than you would in the West. I can understand why people have a tendency take risks in China. When you come here for the first time, the energy is quite amazing. Then, I guess, some entrepreneurs are afraid to miss out on the whole China hype. But why accept risks in China that you wouldn’t accept anywhere else? Especially when you realize that the risks you take here are generally greater. In a way, you should protect yourself, from yourself. Go home and sleep it over. When, after the dust has settled, you still feel comfortable with investing in China, go ahead and join the rest of us!”
| De Nerée Advocates, established by Ralph de Nerée and Alexander de Nerée, is the first and currently the only Dutch law firm in Hong Kong.In their legal practice, they offer a sound combination of legal experience: Ralph de Nerée has built up a wealth of practical experience in international tax and trust legislation and Alexander de Nerée has become an expert on international company law.
Like yourself, De Nerée is an entrepreneur who took up the China challenge. This is why the company knows the ins and outs of the Chinese market, as well as its pitfalls. On top of that, De Nerée Advocates advises European companies and individuals based in China about the fiscal opportunities available in China and Hong Kong. For more information, visit: |
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