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Hongda Business Services Roundup: 11 September 2015

by Bobby Lee | 11 September 2015

End of a long week!

Welcome to another edition of the Hongda Business Services Roundup. Most of the workforce in China has been at it since Sunday after a nice little 3 day break, and the 6 day work week has probably got everyone excited for the weekend.

It was a long week for us a too, but it's given us more posts and stories to share with you all in another roundup. Join us as we take you through a recap of all the business news, views and tips that we had to share this past week.

This week we brought you:

  • What Is A Representative Office In China?
  • Honeywell wins trademark battle before China's Supreme Court
  • Work visa application for China, Shenzhen: What you need to know!
  • Self Enforcing China Contracts With Powerful Companies

1) What Is A Representative Office In China?

A rep office is a local Chinese arm of a foreign company.

It allows a foreign company to have a physical presence anywhere in Mainland China, and also allows them to send foreign staff here to undertake business activities that may be beneficial.

Despite strengthening ties between China and the rest of the world, the vast distances involved can make communication and control difficult, especially where Chinese clients and suppliers are concerned.

How many long-haul flights are needed each year in order to manage operations in China?

As the name suggests, a representative office in China is the local representative of your business, a place where local Chinese clients and contacts can meet you, and a place that can exert control over your brand, marketing, and supply chain in China. It can't perform any business activities related to making profit however.

To find out more about the benefits and potential drawbacks of setting up a RO in China read our blog!

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2) Honeywell wins trademark battle before China's Supreme Court

Supreme People's Court confirms protection for Honeywell's global Garrett brand by rejecting local manufacturer's marketing plan as too similar and misleading to consumers

 The Supreme People's Court (SPC) of China recently ruled in favor of Honeywell, the leading global developer of automotive turbochargers, and Garrett, its global aftermarket turbocharger brand, in clarifying Chinese trademark law and rejecting a Chinese manufacturer's request to trademark "Galitt" due to the likelihood of confusion for consumers.

More on this story here.

3) Work visa application for China, Shenzhen: What you need to know!

China has become a more favorable country for foreign experts to live and work in, with the cities of Hong Kong, Shanghai, Beijing and Shenzhen amongst the most popular. This being said, foreigners looking to make the move out to the East to pursue work opportunities are required to process a Z visa and all the other permits that come with it once they arrive, something that more often then not is quite a difficult process to negotiate.

That is unfortunately the way of the world this side and for this reason it is recommended that one processes it through a professional agency that specializes in immigration procedures. However, it is always good to know what documents are required as each city or province has its unique set of requirements and there are differences. 

Get the low down on what you need for a work visa in Shenzhen here!

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Want know about just about every type of Chinese visa? Check this out!

Are you eligible for a Chinese green card? Find out here...

 

4) Self Enforcing China Contracts With Powerful Companies

When doing a deal with a powerful Chinese company, your first step should be to enter into a contract that follows the basic rules for developing an enforceable contract in China. China has great respect for the written word. Even in difficult situations, it is often surprising how effective it can be to threaten a law suit in China based on an enforceable, Chinese language contract. However, for the threat to work, it must have at least some teeth and that requires a contract that will work.

In contracting with a powerful Chinese party where you know contract enforcement will be difficult, you should think carefully and develop a way to make your contract self-enforcing. You should use the contract as a device to structure the business relationship in a way that allows for you to enforce it yourself.

Learn how to protect yourself in the full post here.

That brings us to the end of another Hongda Business Services Roundup. Please let us know about any of your thoughts regarding some of the topics we recapped this week in the comments below, or let us know about any other topics you'd like for us to cover.

From all of us at Hongda, hope you have a very relaxing weekend and that you catch us again next for more of the stuff that makes our world tick!

Get to know more about Hongda Business Services in our case study

 Download our case study to find out how we helped one of our clients cut through the red tape to help obtain a work visa for him and visas for his family!

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Hongda Service China Business Roundup
Bobby Lee

Bobby Lee

Helping make China companies easy since 2007 as a Senior Consultant

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