How a Small U.S. or European Company Turns to China

China Law Blog tells the story of a worried client deciding whether to do business in China, revealing the decisions set before a small or medium-sized companies in the United States or Europe when faced with competitors who manufacture in China.

I talked a lot with my small company client today about the risks of China and what his company can do to minimize those risks, all the while emphasizing there is no way to wholly eliminate them. Towards the end of our conversation, he said, “it sounds like you are telling me I should not go into China.” I then told him I was actually telling him the opposite, but as his lawyer I felt it my job to highlight the risks and focus on minimizing them. I then went on to say that based on what he had told me, the biggest risk of all would be to not go into China even though it had become pretty clear that failing to do so would likely eventually mean the end of his business.

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