International Law

Looking to do business with a Chinese company? Want to know whether that Chinese company is worthy of your business and your trust? How do you do get information on a Chinese company when certain private investigatory work in China is illegal?

The first thing you should do is conduct a Chinese-language internet search of your potential Chinese counterparty. This sort of search is not likely going to be enough to make you feel good about going forward with a $10 million deal, but it frequently can give you enough negative information on your potential Chinese counterparty to convince you not to do any deal at all.

Next, do your due diligence the old fashioned way. Ask your potential Chinese counterparty to provide you with its government registration documents and, if relevant to your deal, its accounting and tax records as well….

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It is almost always a waste of time to sue Chinese companies in United States courts. But this seems to be news to many American lawyers.

Just about every month, my firm gets a call from a lawyer somewhere in the United States expecting us to jump at the chance to help enforce a multi-million dollar U.S. court judgment against a Chinese company.

The problem is China does not enforce U.S. court judgments…

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I re-watched the movie The Painted Veil (the 2006 version with Naomi Watts and Edward Norton) this weekend. It’s a decent movie with a pretty thin plot, but I love its cinematography and its depiction of 1920s China.

I also love the lessons it teaches for surviving China.

The movie does a good job conveying how China viewed its foreigners back then. That is, China belongs to the Chinese, and they do not particularly want foreigners there — even doctors there to save lives. Foreigners are in China only to the extent that it makes sense to have them there, and they will never be treated the same as Chinese people.

When it comes to modern-day Chinese commercial law enforcement, the perceptions and the treatment of foreigners have not changed all that much…

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How often do you stop to think about the ubiquitous “Made in China” label? If you’re a China lawyer, you should think about it almost every day.

To convince recalcitrant clients of the need for product liability protection for the products they are having made in China, I sometimes send them the following deposition questions asked of a U.S. manufacturer whose China-made product had badly injured a child:

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* I include this line not to highlight the horribleness of zoos, but because I’m doing NS today and this contains a fun anecdote about walrus masturbation. [Cracked]

* Meanwhile, on Redline, I’m like, doing stuff. [ATL: Redline]

* “I really want to go to law school to study international law and be a part of solving problems like what’s going on in Crimea right now.” — Dumb idiot who will wish he read Above the Law before he went to law school. [Radio Free Europe]

* Student gets punished for sending a tweet from home. Should it really matter where you are sitting when you hit the button on the tweet calling your principal a “pussy ass bitch”? [It-Lex]

* I think the jurors on the Bernie Madoff co-conspirator case might be running a Ponzi scheme. [Dealbreaker]

* Everyone is overwhelmed, apparently. [Going Concern]

* Scalia apparently comes up with his s**t while dozing off to sleep. So, literally now, Scalia’s dreams are the stuff of my nightmares. [Military.com]

Dan Harris

I figured my first Above the Law post should be something aimed squarely at those who generally read this blog: American lawyers. I also figured I should lead with what I do best and that is scaring the heck out of people.

So I am going to write about four common and egregious mistakes my law firm’s China lawyers often see American domestic lawyers make when representing their clients in doing business with or in China, along with a very brief analysis of what causes American lawyers to make each sort of mistake.

1. Many years ago, a lawyer in the Midwest called us to discuss his client’s desire to form a company in China. This lawyer did not even tell us that his client was in the room. The lawyer asked us the minimum capital the Chinese government would likely require his client put into a Chinese bank to be able to start a business (a WFOE) in China. Based on the nature and size of the business, we estimated $6 to $8 million. The lawyer asked us to confirm that a portion of the required $6 to $8 million could come from factory equipment not cash, and we assured him that it could. At that point, he said, “good,” because his client had already purchased $5 million in equipment and shipped it to China.

We then had to tell him those equipment purchases could not count because they had not been previously designated as going to the WFOE. The lawyer then complained about how his client could not afford to come up with another $5 million and how China was putting form over substance. To which we could say little more than, “yeah”…

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It’s always a little jarring when someone uses a big news event to bore down deeper into their own bizarre area of interest. Take, for instance, the Newtown massacre. While most news organizations were digging deep into the social, psychological, and political ramifications of the horror, ESPN reported on what it all meant to Jimmie Johnson. Or Rick Pitino’s stance on gun control. A White Sox relief pitcher made a trip to Newtown, and ESPN was there. Now, I don’t begrudge ESPN’s attempt to report the massacre through the prism of sports. The combination of seemingly disparate news elements sometimes yields interesting insights. But sometimes it just yields one more story about stock car racing. So it goes.

Now that all of the introductories are dispensed with, we can get to the question that’s been nagging all of you for an entire week. Or more!

What does the recent unpleasantness in Ukraine have to do with law firm rankings? And which Biglaw firms have the best presence in Ukraine? I’m glad you asked…

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Amanda Knox

* Quinn Emanuel got a pretty harsh benchslap from Judge Paul Grewal over its litigation strategy in the Apple / Samsung case, calling it “650 lawyers wide and one lawyer deep.” Sick burn, Judge. [Courthouse News Service]

* At Cardozo Law, Jordan Belfort’s former lawyer says that the movie Wolf of Wall Street “played down the sex and drugs.” Dear Lord, if that’s the case, Leo’s muse should be happy he’s alive. [DealBook / New York Times]

* “I’ve been around the block. And I’ve never seen an attorney general sanctioned.” Ahh, the rarest rose. Nevada’s AG was sanctioned for failing to provide evidence in a fraud case against a mortgage lender. [Forbes]

* Eighteen people were arrested for their alleged attempts to market and sell Super Bowl “party packs” to football fans. It’s pretty sick, but you’d got to admit that hookers and blow beat wings any day of the week. [Bloomberg]

* Law schools in the Southeast closed their doors because their states were “unequipped for dealing with the roadways.” Send them up here, we’ve got school when there’s a foot of snow. [National Law Journal]

* A recent grad of a “good school” wanted to know how to get a job, so she asked an advice columnist. Here are five of the suggested jobs she probably already applied to and was rejected from. [Fortune]

* The third time’s apparently the charm in Italy: Amanda Knox was convicted of murder, again. Foxy Knoxy must be pissed that her case has turned into an extradition question on an international law exam. [CNN]

Does your school offer Law and Finger Painting? I bet they would if you asked.

Don’t look now, but spring is right around the corner. Spring semester, that is. For 3Ls around the country, just a few classes stand between them and graduation into one of the worst legal job markets.

Ever since President Obama suggested that the third year of law school could be cut, we’ve heard a lot of law professors talk about how essential the third year of law school is. You can take clinics! You can become “practice ready”!

Sure, you can do those things. But it’s unlikely that you are going to take any course in your last semester of school that will help you get a job when you graduate. Why would you do that? You can be unemployed just as easily taking small, low-stress classes that won’t screw up your GPA on your way out of the door.

Every school has its own selection of ridiculous upper-class electives, but I’d like to focus on how the big boys do it. The Ivy League law schools have been setting the standard for legal education for generations. Their students (for the most part) have jobs waiting for them on the other side of graduation. I’ve put together a full course schedule for an Ivy-educated 3L. Please feel free to send this to any professor who thinks that the third year is too important to lose…

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* With all the focus on law schools, medical schools are quietly dropping the last year of schooling. If they can cut out a year of learning how to keep people alive, we can drop a year of learning Jane Austen and the Law. [The Atlantic]

* MoFo lost a T&E team to Shartsis Friese. Hmm…. Maybe Shartsis should put ego aside and let Friese have his day in the sun. [Am Law Daily]

* Congrats to Bayan Alzahran, the first licensed female lawyer in Saudi Arabia. Soon she’ll be valiantly trying to keep people from being stoned to death with the best of them. [Al Arabiya]

* Good news, recovering criminals! As we mentioned earlier today (ninth link), mug shot extortion sites are getting whipped by Google. [Not-So Private Parts / Forbes]

* God needs a lawyer in federal district court? Paging Roy Cohn. [Forbes]

* If you’re interested in international law, International Law Weekend is coming up. Maybe Vladimir Putin will show up and learn a thing or two. [International Law Students Association]

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