Labor Law is a relatively new phenomenon in China, with the first comprehensive law passed

in 1994. The new law, adopted by the National People’s Congress (NPC) on 29th June 2007,

looked to redress some of the poor working conditions found in China, particularly for the

average worker. Prior to the passage of this law, most Chinese employee’s in small-medium sized

firms lacked employment contracts. Morever, they were short-term, giving employers the flexibility to

frequently bring in a new, often cheaper hires whenever they saw fit.

It is common in any business model for a company to change its corporate structure and strategy over time. The same can be said in China. As foreign invested companies (FIEs) become more familiar with the China market and begin to grow they must adapt their structure to cater for their needs. FIEs need to know how and when to re-structure their initial China strategy. Companies need to know what are the benefits, disadvantages and governmental requirements and procedures to do this.

We hope to be able to answer these questions in this issue.

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Re-Structuring Your China Entities

By Klaus Koehler, Managing Director, Klako Group

Over time many foreign invested companies (FIEs) change their China strategy due to the growth within their company and within their industry or due to unexpected obstacles that can arise in China, particularly with new governmental regulations. An increasing number of FIEs have restructured their initial China entity by either expanding their existing operational business scope, becoming fully operational entities, increasing their investment capital or purchasing the shares from their Chinese Joint Venture to become a 100%-owned FIE. Companies have different motives for changing their structures and there are benefits and disadvantages that should be taken into account.

To read full article, please click here to view magazine (PDF file)

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All information in this report is verified to the best of our ability and is assumed to be correct at time of release; however, Klako Group does not accept responsibility for any losses arising from reliance on the information provided within.

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Interview with Virginie Holod, the Sales Director of Mecmesin Limited

Founded by Jim Oakley, an accomplished design engineer, in 1977, Mecmesin remains a privately owned company, based in Slinfold, West Sussex, UK, which has expanded worldwide, with regional offices in the US, China, Thailand and France. In addition, we have a global network of distributors in more than 50 countries able to provide technical expertise and after-sales support to customers locally. Since 2003, Ms Virginie Holod joined Mecmesin Ltd to provide technical & sales support to the distributors and the end-users mostly to the French speaking countries within the Export department. In 2006, she moved to Asia to develop this ever-growing market by offering expertise and taking on the management of the offices in Bangkok and in Shanghai. With a tremendous sense of entrepreneurship, Robert Oakley (son of the Mecmesin Founder: Jim Oakley) was targeting the Chinese market for many years and in 2007, decided to establish Mecmesin China trading company in the Yangpu district of Shanghai. With the help of partners and a team of 25 highly qualified people across China, Mecmesin can provide the highest services and support to the current and future customers.

To read full interview, please click here to view magazine (PDF file)