Chinese business partner… any legal protection?

Question

After living in China for 8 months, I feel it’s somewhere I’d like to settle down. I”ve tried the English speaking thing, and don’t want to make a career of it… so, I’d like to start my own small business.

I’ve identified a niche in a current growing market, and start up costs are pretty low, around $5k.

I only have around $15k, so I’m assuming I’ll need a Chinese business partner?

I have some Chinese friends I could approach with this… but I’m just worried about my protection if they decide to get greedy… do I have any?

Cheers

LaowaiTom · Answer

The only real protection you have is trust. Forget legal protection, even in the west, where it would probably cost you more than your investment to pursue a claim.

Don’t go into a business deal with anyone unless their best outcome will come from playing it straight. Otherwise, they have an incentive to cheat you, and many people will. Also, ask yourself what you and they bring to the party. If you don’t bring something critical that they can’t easily get elsewhere, you’re apt to be cut out. And if they don’t bring something critical to the party that you can’t easily get elsewhere, why would you want to do business with them?

I understand that these are pretty restrictive conditions, but a business venture is like a marriage. Choose your partners carefully or you’ll be sorry.

Chinese business partner… any legal protection?

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