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September 30, 2007
A Cautionary Tale for Foreign Companies in China
The always insightful Dan Harris of the China Law Blog just got back from China with this gem:
A Chinese lawyer told me he now asks all of his Chinese clients who their foreign competitors are and then offers to see if he can put them out of business for operating illegally. This has become so lucrative for him that he does not even charge to determine if they are legal or not. He makes that determination for free and if they are, he charges a large flat fee for putting them under. He proudly gave me the name of a Seattle company I know (but do not represent) which was next on his list. He also said that come 2008, he would be suing foreign companies whose Chinese employees did not have written contracts.
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