Dan Harris of Harris & Moure in Seattle, the author of the China Law Blog, is used to advising clients when the Chinese economy takes a hit. This time he says that 'something positive is happening in China as well'. This is: 'A greater number of China businesses are getting savvier, more sophisticated and more international.' That means that foreign firms which partner with them are less likely to find themselves in trouble. A cause of problems is being cut off from funding and not having enough reserves to deal with that.
Document transactions
Mr Harris continues: 'It is the under funded Chinese companies that can so quickly and so devastatingly harm foreign companies.' In cases in which a foreign firm in a joint venture with a Chinese one finds the going difficult, Mr Harris advises that such a firm should 'document your transactions fully' - so that it will be clear which assets belong to the foreign firm if the worst comes to the worst. Source: China Law Blog
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