Cross-Border Corporate · Investment · Disputes

Doing Business in China — Legal Guidance at Every Stage

From incorporation to IPO, daily compliance to dispute resolution — we provide foreign enterprises with comprehensive, stage-by-stage legal counsel grounded in 17 years of cross-border practice.

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Market Entry
WFOE · JV · VIE · IP Pre-filing
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Operations
Tax · Labor · Data · Trade
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Expansion
M&A · IPO · Financing · Restructuring
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Exit & Disputes
Arbitration · IP · Admin · Criminal

The China Legal Landscape

500K+
Foreign-Invested Enterprises
Registered in China as of 2025
300+
New Laws & Regulations
Issued annually affecting foreign business
¥40B+
Dispute Value Handled
Cumulative case value by our team
17+
Years in Practice
Serving clients across 10+ countries

"The most valuable legal service is not simply telling clients that Chinese law is different — it is providing a practical path that satisfies Chinese regulatory requirements without dismantling their global business model."

01

Stage 1 — Market Entry & Incorporation

Entry Phase

Choosing the right entity structure is the single most consequential decision for a foreign company entering China. The wrong choice can mean years of restructuring, tax inefficiency, or even forced divestment. We help you get it right from day one.

Strategic advice on WFOE vs. Joint Venture vs. Representative Office vs. Branch — factoring in your industry, business scope, capital requirements, and liability preferences. We model the tax, foreign exchange, and operational implications of each structure.

WFOE Joint Venture Rep Office Branch

Assessment of your industry against China's Special Administrative Measures (Negative List) for Foreign Investment — identifying whether your sector is Encouraged, Permitted, Restricted, or Prohibited, and designing the optimal market-access strategy.

Negative List Encouraged Industries Free Trade Zones

For restricted industries (TMT, education, healthcare services), we design and implement Variable Interest Entity structures — including the全套协议 (WFOE agreements, equity pledge, exclusive option, proxy, and spousal consent) — with an eye toward enforceability and future exit.

VIE Protocol Control TMT Red Chip

Comparative analysis of free trade zones, high-tech zones, comprehensive bonded zones, and local development zones — negotiating tax rebates, rent subsidies, and talent incentives with local governments on your behalf.

Free Trade Zone Tax Incentives Site Selection Government Relations

Negotiation and drafting of JV contracts and articles of association with Chinese partners — including equity ratios, board composition, reserved matters, deadlock resolution mechanisms, tag-along/drag-along rights, and exit valuation formulas. The quality of your JV agreement determines whether you can exit if things go wrong.

JV Contract Deadlock Clauses Exit Mechanisms

Pre-market trademark registration in Chinese classes, invention and utility model patent filings, design patent applications, and domain name acquisition — all before public disclosure of your China plans. We also handle trademark squatting disputes when prevention comes too late.

Trademark Patent Domain Name Anti-Squatting
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Common Mistake: Wrong Entity Choice Many foreign companies default to a Rep Office because it looks simple — only to discover they cannot issue invoices, hire directly, or repatriate profits. We help you avoid these costly path-dependencies.
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Pro Tip: Register IP Before Negotiations File trademarks and key patents in China before entering substantive JV discussions with a Chinese partner. We have seen too many cases where the partner registers the IP first.
02

Stage 2 — Daily Operations & Compliance

Operations Phase

Once operational in China, foreign enterprises face a dense web of regulatory obligations spanning corporate governance, labor, tax, foreign exchange, data privacy, customs, and advertising. A single misstep can trigger cascading consequences across multiple agencies.

Advising on board and shareholder meeting procedures, legal representative authority and liability (significantly expanded under the 2024 Company Law), and the critical but often misunderstood topic of company chops (公章/法人章/财务章) — including custody protocols and dispute response when a legal representative refuses to surrender the chops.

Board Governance Chop Control 2024 Company Law Legal Rep Liability

Drafting employment contracts, employee handbooks, and confidentiality/IP assignment agreements compliant with PRC Labor Contract Law. Advisory on: expatriate work permits and residence visas, social insurance obligations, overtime and working hours, non-compete enforcement (employer must pay monthly compensation), and the high-stakes terrain of unilateral termination — where employers face a ~70% loss rate in arbitration.

Labor Contracts Work Permits Non-Compete Termination Layoffs

Corporate income tax, VAT, withholding tax on cross-border payments, and the application of Double Taxation Agreements (DTAs). Transfer pricing documentation and advance pricing arrangements (APAs). Managing the interface between your global tax structure and Chinese rules on related-party transactions.

CIT VAT Transfer Pricing DTA Withholding Tax

Navigating SAFE regulations on: profit repatriation (requires audited financials and tax clearance certificate — budget 3–6 months), capital injections and capital account settlements, foreign debt registration and quota management, and cross-border cash pooling structures for multinational groups.

Profit Repatriation Foreign Debt Cash Pooling SAFE

China's Personal Information Protection Law (PIPL) imposes obligations that parallel and in some respects exceed GDPR. We handle: data mapping and classification, privacy notices and consent mechanisms for customers and employees, data processor agreements, cross-border data transfer (security assessment vs. standard contract vs. certification), and response to data security incidents.

PIPL Data Mapping Cross-Border Transfer China SCC

AEO (Authorized Economic Operator) certification for customs facilitation, tariff classification and customs valuation disputes, rules of origin (especially important amid shifting supply chains), import licensing for regulated products, and export control compliance under China's Export Control Law — including dual-use item classification.

AEO Customs Export Control Tariffs Rules of Origin

Review of marketing materials for compliance with PRC Advertising Law (prohibited superlatives, comparative advertising restrictions), sector-specific promotion rules, and the regulatory gray zone of KOL/KOC marketing and livestream e-commerce. Cross-border data collection via marketing platforms adds a PIPL dimension.

Advertising Law KOL Marketing Livestream E-Commerce

Environmental impact assessment (EIA) and discharge permitting, workplace safety compliance (especially for manufacturing facilities), carbon emission trading obligations, and ESG reporting requirements increasingly flowing down from global headquarters to Chinese subsidiaries — including supply chain due diligence on forced labor and environmental practices.

EIA Workplace Safety Carbon Trading ESG Supply Chain
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Common Mistake: Assuming At-Will Employment Many foreign managers assume they can terminate employees as they would at home. In China, unilateral termination is heavily restricted, and wrongful dismissal results in reinstatement or 2× statutory severance. We train your HR team on PRC-compliant performance management.
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Common Mistake: Sending Employee Data Abroad Uploading Chinese employee data to the global HR system without PIPL compliance (notice + consent + cross-border transfer mechanism) is one of the most common violations we see. It can trigger both administrative penalties and employee complaints.
03

Stage 3 — Expansion & Capital Markets

Growth Phase

As your China business scales — through M&A, new rounds of financing, or a public listing — the legal complexity compounds. Each transaction touches multiple regulatory agencies, and each structure has implications for tax, foreign exchange, and your eventual exit.

Full-service M&A support: target identification and due diligence (financial, legal, IP, regulatory), transaction structuring (asset deal vs. equity deal), negotiation and drafting of SPA/SHA, regulatory approvals (foreign investment filing or security review, antitrust merger control if thresholds are triggered), and post-closing integration.

Due Diligence SPA Merger Control Security Review

PRC legal opinions for Hong Kong IPOs (red-chip and H-share structures), US listings, and A-share markets (including the STAR Board and ChiNext). Key workstreams: VIE opinion letters, 37号文 / 7号文 SAFE circular compliance for founders and ESOP, and restructuring of related-party transactions to satisfy listing rules.

Red Chip H-Share STAR Board 37号文 ESOP

Structuring and documenting onshore and offshore financings: PRC-law-governed loan agreements and security packages (mortgages, pledges, guarantees), foreign debt registration with SAFE, cross-border security and guarantee registration, and intercompany loan compliance.

Loan Agreements Security Foreign Debt Cross-Border Guarantees

Group structure optimization across multiple China entities: mergers and divisions under PRC Company Law, capital reduction, business line transfers, and the unwinding or restructuring of legacy JV arrangements to prepare for a new strategic direction or exit.

Merger/Demerger Capital Reduction Business Transfer JV Unwinding

Pre-transaction analysis of merger control filing obligations (including for transactions with no China nexus — the new turnover thresholds and SAMR's expanded jurisdiction over killer acquisitions), preparation and submission of the filing, and engagement with SAMR during the review period.

SAMR Filing Gun-Jumping Killer Acquisition

Classification of technology under China's Technology Import and Export Administration Regulations: whether your technology is "freely transferable," "restricted" (requiring a license), or "prohibited." Registration or licensing of technology import/export agreements with MOFCOM, and handling of improvements and derivative IP.

Technology License MOFCOM Registration Improvement IP
04

Stage 4 — Exit, Disputes & Crisis Management

Exit & Dispute Phase

Whether exiting a successful investment or managing a crisis, this stage demands precision and speed. We bring 17 years of litigation and arbitration experience across CIETAC, UNCITRAL, and PRC courts — plus the strategic judgment to know when to fight, when to settle, and how to preserve value under pressure.

Structuring and executing the sale of your China business: buyer identification and negotiation, regulatory approvals for equity transfer, tax clearance and withholding on capital gains, and the mechanics of closing — including SAFE registration for repatriation of sale proceeds. We also handle distressed exits where the JV partner is uncooperative.

Equity Transfer Capital Gains Tax SAFE Repatriation Distressed Exit

Representation in CIETAC, HKIAC, SIAC, and ICC arbitrations, and in PRC court litigation at all levels. Our experience spans: international sale of goods disputes, JV and shareholder disputes, distribution and agency termination claims, fraud and misrepresentation, and enforcement of foreign judgments and arbitral awards in China (and Chinese awards abroad).

CIETAC HKIAC UNCITRAL Foreign Award Enforcement

Trademark infringement and counterfeiting actions (civil, administrative, and criminal), patent infringement litigation and invalidation defense, trade secret misappropriation claims (strengthened significantly by the 2020 Anti-Unfair Competition Law amendment), copyright enforcement, and cross-border e-commerce platform takedowns.

Trademark Infringement Patent Litigation Trade Secrets Anti-Counterfeiting

Defense of wrongful dismissal claims, enforcement of non-compete and confidentiality obligations against departing employees (especially sales and R&D personnel), managing mass layoffs (经济性裁员) with proper procedures and severance, and handling discrimination or harassment complaints.

Wrongful Dismissal Non-Compete Mass Layoffs Discrimination

Representation in regulatory investigations and enforcement actions by: State Administration for Market Regulation (SAMR — antitrust, unfair competition), tax authorities, customs, State Administration of Foreign Exchange (SAFE), cyberspace administration (data/privacy), and environmental protection bureaus. We manage the interface between the investigation and your global compliance obligations.

SAMR Tax Audit Customs Investigation CAC Data Inquiry

Internal investigations into commercial bribery (PRC Criminal Law Art. 164), embezzlement (Art. 271), and trade secret theft (Art. 219). We conduct privileged investigations, assess criminal exposure, negotiate with prosecutors, and coordinate with global counsel on parallel FCPA/UK Bribery Act exposure. Crisis management includes dawn raid response protocols.

Commercial Bribery Embezzlement Dawn Raids FCPA Parallel
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Common Mistake: Relying on English-Only Contracts Chinese courts and arbitral tribunals will default to the Chinese version when the parties execute bilingual contracts — and when the versions diverge, the interpretation favoring the Chinese party often prevails. Always negotiate both language versions as equally authentic, with a clear governing-language clause.
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Common Mistake: No Deadlock Mechanism in JV Without a pre-agreed deadlock resolution mechanism (Russian roulette, Texas shootout, or put/call options), a JV dispute can lock the foreign party into the entity indefinitely. We insist on including these provisions at the JV agreement stage — not as an afterthought.
05

The 8 Most Common Mistakes Foreign Companies Make

01
Signing English-Only Contracts
❌ "Our global template in English is fine."
✅ Negotiate a bilingual contract with a clear prevailing-language clause, or accept that the Chinese version will control in PRC proceedings.
02
Skipping Pre-Entry IP Filings
❌ "We'll register trademarks after we set up."
✅ File trademarks and key patents in China before initiating any business discussions. The cost of a squatting dispute is orders of magnitude higher.
03
Losing Control of Company Chops
❌ "The legal rep needs the chop for convenience."
✅ Implement dual-custody chop protocols. A rogue legal representative with the company chop can bind the company to almost any transaction.
04
Cross-Border Data Without Compliance
❌ "It's just employee data on the global HR system."
✅ Conduct a data mapping exercise. Employee data, customer data, and any data touching China may require consent, localization, and a cross-border transfer mechanism.
05
Vicarious Liability for Distributors
❌ "The distributor's actions are their own problem."
✅ Chinese anti-bribery enforcement increasingly treats the principal as responsible for its distributors' and agents' conduct. Due diligence, contract terms, audit rights, and training are essential.
06
Thinking Employment Is At-Will
❌ "We can let underperformers go like we do at HQ."
✅ PRC law provides exhaustive grounds for unilateral termination. Performance-based termination requires documented PIPs, training, and redeployment efforts. Otherwise: 2× severance or reinstatement.
07
No Deadlock Clause in JV Agreements
❌ "We trust our partner — we'll figure it out if there's a problem."
✅ Include Russian roulette, Texas shootout, or put/call provisions. Without one, a minority foreign partner can be trapped indefinitely.
08
Underestimating FX Repatriation Timeline
❌ "We'll wire profits back next month."
✅ Budget 3–6 months for profit repatriation: audited financials, tax clearance, and SAFE registration. Plan your treasury calendar accordingly.
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How We Work

1

Understand

We start by understanding your global strategy, business model, and risk tolerance — not just your immediate legal question.

2

Diagnose

We map your situation against the relevant Chinese regulatory framework and identify gaps, risks, and opportunities.

3

Design

We design a practical solution that satisfies Chinese law while preserving your global operating model. No academic memos — actionable roadmaps.

4

Execute

We implement — whether that means drafting documents, filing with regulators, or appearing in court. We stay with you through completion.

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Your China Legal Team

罗巍 Luo Wei

Partner · Strategy Committee Member
Jiangsu Tianni Law Firm
📍 Nanjing, China
🌐 English & Chinese
🏢 B5 Bldg 13-14F, Xincheng S&T Park, Jianye District, Nanjing

Luo Wei is a Partner at Jiangsu Tianni Law Firm with 17 years of practice in international dispute resolution, cross-border investment, corporate governance, and equity structuring. His clients span the United States, the United Kingdom, Germany, France, Italy, Switzerland, Singapore, the UAE, Saudi Arabia, Japan, South Korea, and Australia.

Luo Wei serves on the Jiangsu Provincial Bar Association International Commercial Arbitration Committee, the Nanjing Bar Association Corporate Governance Committee, and is a member of the Young International Arbitration Group (YIAG) of the LCIA. He is an arbitrator of the Shigatse Arbitration Commission and was recognized as an Outstanding Foreign-Related Lawyer (2019–2022).

With a team of 100+ attorneys at Tianni Law Firm, Luo Wei handles matters ranging from routine corporate advisory to high-stakes international arbitration — always with the same philosophy: reduce risk, create value.

Bilingual & Bicultural — we don't just translate words; we translate regulatory logic for global decision-makers
Full Lifecycle — one firm from incorporation to exit, no hand-offs, no lost context
Global Network — strategic partnerships with law firms across Asia, Europe, and the Middle East
Litigation-Ready — we structure deals with disputes in mind, and we can litigate or arbitrate if they arise
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Start the Conversation

Reduce Risk. Create Value.

Whether you are evaluating China market entry, managing an operational compliance challenge, negotiating an M&A transaction, or facing a dispute — we bring 17 years of cross-border experience to your matter.

We work in English and Chinese, on your timeline. Initial consultations are confidential and without obligation.

Email Us Now
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Phone / WeChat +86 18795966199
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Email luowei@tiannilaw.com assistant@tiannilaw.com
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Office B5 Building, 13-14F, Xincheng Science & Technology Park, Jianye District, Nanjing, Jiangsu, China
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Main Site luoweilvshi.com
Market Entry Operations Expansion Exit & Disputes Contact ← Main Site