China Business Law Podcast

Are offshore trusts still an effective wealth-planning tool for Chinese families with assets and family members in the United States?

In this episode of the China Business Law Podcast, Art Dicker speaks with Kong Yu, a partner in the Shanghai office of Tahota Law Firm, about China’s new tax rules affecting offshore trusts and the potential consequences for cross-border families.

China’s Ministry of Finance and State Taxation Administration issued Announcement No. 21 in July 2026, introducing important rules governing offshore trusts established or controlled by Chinese tax residents. Kong explains how the new framework may treat the transfer of assets into an offshore trust as a taxable event and may also tax trust investment income annually—even when that income has not yet been distributed.

The discussion covers whether trust expenses can be deducted, whether obtaining a U.S. green card or foreign citizenship is enough to terminate Chinese tax residency, and when loans, guarantees, expense payments, or use of trust assets may be treated as deemed distributions.

Most importantly, Art and Kong examine the risk of China-U.S. double taxation. A Chinese tax-resident parent may owe Chinese tax on offshore trust income as it arises, while a U.S. green-card-holding child may later owe U.S. tax when the same income is distributed. Because the taxpayers and timing may differ, normal foreign tax credit mechanisms may not fully eliminate the duplicate tax burden.

For Chinese families using offshore trusts for succession planning, global investing, or transferring wealth to children living in the United States, the episode highlights why tax planning increasingly needs to happen before the trust is established—not after.

In this episode of the China Business Law Podcast, we speak with Junyan Xiao, Partner at Haiwen & Partners, about the rapidly evolving world of Chinese outbound investment and the legal challenges Chinese companies face as they expand globally.

Junyan explains how Chinese companies are increasingly looking beyond the United States and Europe toward One Belt One Road markets such as Saudi Arabia, Vietnam, Africa, and Southeast Asia, with a growing emphasis on greenfield investments and joint ventures.

We discuss China’s outbound investment approval process, including the roles of NDRC, MOFCOM, and SAFE, and why Chinese regulatory requirements may continue to apply even when investments are made through offshore subsidiaries using funds already outside China.

Junyan also shares practical insights from advising Chinese investors on:

• Conducting due diligence that goes beyond financial and legal issues to assess a local partner’s decision-making process, responsiveness, and ability to execute
• Choosing between Hong Kong, Singapore, and London arbitration and thinking about where an eventual award will actually need to be enforced
• Managing increasingly complex data, technology-transfer, and export-control requirements
• Navigating localization requirements such as Saudi Arabia’s Saudization rules and local manufacturing requirements
• Managing foreign-exchange restrictions, currency availability, profit repatriation, transfer pricing, licensing fees, and management fees
• Structuring joint ventures to address deadlocks, regulatory changes, exits, and other issues over the entire investment lifecycle

One of Junyan’s key observations is that Chinese companies are becoming much more sophisticated global investors. Many of the challenges they now face overseas—from localization and compliance to IP protection and profit repatriation—closely resemble the issues foreign companies confronted when first expanding into China.

The conversation offers a practical look at how Chinese outbound investment is changing and what companies should consider before committing capital to a new overseas market.

You can reach out to Junyan here:

http://www.haiwen-law.com/64/110

The Asia-Pacific in-house legal market has changed significantly in recent years. Regional headquarters are becoming more fragmented, companies are controlling costs, and the traditional path from China counsel to regional general counsel is no longer as predictable as it once was.

In this episode of the China Business Law Podcast, Art Dicker speaks with returning guest Sherry Xu, an experienced in-house legal recruiter now based in Singapore, about how legal professionals should navigate this changing environment.

Sherry explains why some senior lawyers may need to reconsider their expectations regarding compensation, titles and geographic scope. In some cases, accepting a lower salary may provide the management experience, broader responsibility or general counsel exposure needed for long-term career development.

The conversation also explores what separates effective in-house lawyers from those who struggle during periods of business transformation. Technical legal knowledge is no longer enough. Lawyers must be able to read people, understand competing stakeholders, manage their emotions and offer practical solutions rather than simply identifying risks.

Art and Sherry discuss the difficult position of regional counsel who must balance their obligations to global legal leadership with the needs of local business teams. They also share practical advice on building credibility with sales teams, prioritizing urgent matters, understanding commercial incentives and becoming a trusted business partner.

For mid-level and senior lawyers considering their next career move, this episode offers a candid look at the realities of today’s legal employment market—and the skills needed to remain valuable in an increasingly uncertain business environment.

Connect with Yuxing

Zhong Lun Law

In this episode of the China Business Law Podcast, we're joined by Yuxing Ye, a senior counsel at Zhong Lun with over 17 years of experience in cross-border mergers and acquisitions (M&A). We discuss his early career, starting from his stint in Singapore, and how the rise of China's economy influenced his return to Beijing and subsequent focus on cross-border M&A. Yuxing details the evolution of China's outbound investments, from high-tech sectors to renewable energy, and the geopolitical and regulatory challenges involved. He also explains the review processes by Chinese regulatory bodies like MOFCOM, NDRC, and SAFE, and the financing strategies for infrastructure and energy projects. Practical aspects of navigating legal and regulatory frameworks in host countries, especially in developing regions, are also covered. Listeners gain a comprehensive understanding of the complexities and strategies in cross-border M&A, particularly in the energy sector.

In this episode of the China Business Law Podcast, we're joined by Ying Zeng, a partner in the Dispute Resolution Practice Group at Han Kun Law Offices. Ying brings extensive experience in commercial dispute resolution in both the US and China. She shares her journey into international arbitration, her role in managing cross-border disputes, and the transformations in legal practices she's witnessed over the years. We delve into the nuances of handling litigation strategies, the evolving landscape of Chinese companies involved in overseas disputes, and the recent developments in enforcing foreign judgments in China. Ying also provides practical advice on choosing between arbitration and litigation and highlights the importance of effective communication between local and foreign counsel in cross-border cases.

Welcome to another insightful episode of the China Business Law Podcast. Today, we are thrilled to have Amy Chen, a prominent legal professional and co-founder of the Chinese American Lawyers Association of Orange County (CALA). In this interview, Amy shares her extraordinary journey in the legal realm and her vision for empowering Chinese American contributions within the legal community.

Connect with Amy

CALA Website

Amy Chen is not just any lawyer; she is a trailblazer in advocating for Chinese American voices within the legal industry. As the president of CALA, she is passionate about creating platforms that connect Chinese American legal professionals and fostering growth within this community. Her legal career spans from major law firms in Hong Kong to influential in-house roles in tech companies.

Amy’s legal journey started with an interest in business and China during her college years, which led to an inspiring stint at a law firm in Hong Kong. This experience cemented her decision to pursue law, fueled by both professional aspirations and family legacy—particularly her grandfather's groundbreaking achievements as a lawyer in Europe. Amy studied law at Columbia and began her career at Simpson Thacher before transitioning to pivotal roles in technology firms, including Alibaba during its formative years.

The idea for CALA originated over lunch with a fellow lawyer, where they identified a need for a platform dedicated to addressing Chinese American legal challenges in Orange County. Starting with drafting bylaws, the association quickly evolved with a mission to develop, empower, and elevate the contributions of its members to the legal and civic landscape.

Amy's career has seen significant shifts due to changing US-China relations, pushing her towards advocacy and community-focused efforts. She highlights barriers faced by Chinese American lawyers, such as underrepresentation in the upper echelons of the legal field and societal biases. CALA aspires to tackle these issues through professional development programs, legal education, and community engagement.

For aspiring lawyers, Amy offers invaluable advice: approach the legal profession with eyes wide open. It's a demanding field that requires a commitment to learning and a skill set that includes relationship-building and staying informed about global and industry-specific trends. Crucially, she stresses the importance of cultivating a network and finding mentors.

While still in its infancy, CALA has ambitious plans to delve into advocacy, especially around pressing issues such as immigration and civil rights. The organization is also forging partnerships with other legal bodies and community groups to enhance its impact and outreach.

Under Amy’s leadership, CALA is on the path towards significant contributions to the legal community and beyond. For those interested in joining or learning more, Amy and CALA welcome engagement through their website at calaoc.org. Together, they are redefining the narrative and presence of Chinese American professionals in law and civic spaces.

Thank you to Amy Chen for sharing her journey and insights. Her story is a powerful reminder of how dedication and community can drive impactful change. If you're interested in learning more about CALA's work or want to get involved, reach out through their website.

Timestamps

00:00 Introduction and Guest Welcome

00:34 Amy Chen's Journey into Law

03:22 Transition to In-House and Tech Industry

04:24 Return to the US and Continued China Focus

09:21 Founding the Chinese American Lawyers Association

16:42 Asian American Representation in Law Firms

17:08 Professional Development Initiatives

18:29 Community Engagement and Civic Involvement

18:41 Addressing Societal Bias and Discrimination

21:32 Cultural Values and Corporate America

25:08 Advocacy and Legal Parameters

26:59 Collaboration with Other Organizations

29:10 Advice for Aspiring Lawyers

33:04 Conclusion and Contact Information

Jacob Thomas

LinkedIn

Apple Podcasts

Welcome to another insightful episode of the China Business Law Podcast. Today, we are privileged to host two exceptional legal experts, Henry Ji and Amber Guan, from Zhong Lun Law Firm. With their extensive expertise in wealth planning, they provide unique insights into the legal perspectives of managing wealth for high net worth individuals in China.

[email protected]

https://en.zhonglun.com/team/henryji.html

Henry Ji, a partner at Zhong Lun, and Amber Guan, a managing associate, are pioneers in the domain of private wealth planning. Both are dually qualified to practice law in China and New York State, USA, bringing a robust international perspective to their practice. Over the past eight years, they've been at the forefront of advising Chinese high-net-worth families and multinational companies on wealth planning.

In recent years, the focus of wealth planning in China has shifted from primarily wealth creation to more comprehensive strategies involving family asset protection, governance, and succession planning. Henry highlights the evolution in this field, particularly noting the change during the rapid capital market expansion and IPO activities from 2012 to 2021. Today, families seek integrated structures that address multiple needs like control, tax efficiency, and succession.

Amber elaborates on the complexities of managing cross-border investments and assets. With varying legal systems and regulatory environments, cross-border wealth planning poses unique challenges. The divergence in these frameworks, coupled with China's strict currency controls, makes compliance a sophisticated process requiring coordination among legal, tax, and other professionals.

In the face of increasing scrutiny from both Chinese and foreign governments, compliance becomes imperative. Henry and Amber stress the significance of strict adherence to legal and regulatory frameworks to avoid administrative or criminal liabilities. They emphasize the necessity for transparency, proper documentation, and alignment with international tax and reporting standards.

For high net worth individuals, asset protection is a primary concern. Both experts recommend the use of trusts and insurance products as effective mechanisms. They advise on restructuring corporate governance and shareholding arrangements to safeguard personal assets and prevent business liabilities.

Wealth planning is multifaceted, involving legal advice, financial strategies, and tax implications. Henry and Amber work closely with financial advisors and tax experts to provide comprehensive solutions that are both legally sound and financially strategic. This collaborative approach ensures tailored solutions that align with clients' long-term objectives.

Every family is unique, and so are their wealth planning needs. The experts at Zhong Lun prioritize understanding each client's personal, family, and business landscapes to design strategies that are custom-fit. Whether the goal is protecting a family business, facilitating succession, or ensuring regulatory compliance, their approach is highly personalized.

Trust is the cornerstone of successful wealth planning, particularly in the realm of high net worth individuals. Henry and Amber emphasize building long-term relationships through consistent, reliable, and discreet services. They maintain regular communications and reviews to adapt to clients’ evolving needs.

For those interested in leveraging the expertise of Henry Ji and Amber Guan in navigating the complexities of wealth planning in China, they welcome inquiries through email. Henry's contact details can be found on the Zhong Lun website, while Amber can be reached at [email protected]. Their proficiency in legal nuances and dedication to client objectives make them invaluable allies in wealth management.

Timestamps
00:00 Introduction and Guest Welcome
00:26 Guest Backgrounds and Expertise
03:25 Current Trends in Wealth Planning
06:41 Challenges in Cross-Border Wealth Planning
10:17 Ensuring Compliance with Regulations
13:47 Strategies for Asset Protection
16:37 Balancing Legal and Financial Advice
19:58 Succession Planning Concerns
24:26 Personalizing Wealth Planning Strategies
27:20 Building Long-Term Client Relationships
30:33 Conclusion and Contact Information

Jacob Thomas

LinkedIn

Apple Podcasts

Welcome to another episode of the China Business Law Podcast. In this episode, we are privileged to host Andy Han, a partner at Allbright Law with expertise in cross-border dispute resolution involving China. His insights offer a deep dive into the intricacies of navigating legal disputes in the region.

Connect with Andy

Allbright Law

Andy Han brings over a decade of experience as an attorney in China, specializing in cross-border disputes and transactions such as M&A and Foreign Direct Investment (FDI) projects. His career journey provides him with a unique perspective on the challenges and resolutions in the legal landscape across borders, particularly during pivotal periods such as the COVID-19 pandemic.

During the COVID-19 pandemic, Andy aided foreign clients in navigating disputes arising from cross-border transactions, specifically the acquisition of medical supplies from China. He reflects on the spike in such disputes due to the urgent demand for medical products and the subsequent quality issues that arose.

His expertise is not limited to dispute resolution; Andy also emphasizes the importance of drafting robust contracts. He recommends clearly defining dispute resolution clauses within contracts, choosing between litigation or arbitration carefully, based on applicable laws and enforceability.

A significant part of cross-border contract negotiations involves deciding on dispute resolution mechanisms. In particular, Andy advises against including both litigation and arbitration in a single clause under Chinese law, as this can invalidate the litigation choice. Factors to consider include the nature of the dispute, cultural factors, and language.

For example, in cases with a foreign element, foreign arbitration centers in third countries like Singapore or Hong Kong might be preferred for neutrality. However, if the contract involves purely domestic issues, Chinese arbitration centers or courts are advisable.

Andy shares insights into the enforcement of arbitration awards within China. For domestic awards, enforcement is typically straightforward without the need for additional recognition processes. However, enforcing foreign arbitration awards can be more complex, often involving recognition by Chinese courts under the New York Convention.

Recent trends show improvement in the enforcement of foreign arbitral awards, with a success rate over 90% in certain scenarios. Yet, challenges remain, such as proper notification to respondents in defaults or exceeding the scope of the arbitration agreement.

Beyond addressing disputes, Andy stresses the importance of preventive measures. Conducting thorough background checks on potential business partners can preemptively mitigate risks. Additionally, recognizing fully foreign-owned enterprises in China as domestic companies can influence the governance and dispute resolution approaches.

The Chinese government is increasingly supportive of foreign arbitration centers establishing branches within China, facilitating a more integrated and accessible legal framework. This aligns with broader efforts to attract international business and enhance trust in China’s legal system.

Andy Han encourages foreign in-house counsel to carefully consider dispute resolution clauses during negotiations and remain proactive in preventing disputes. For further guidance, Andy can be reached through LinkedIn or his firm's contact details.

Timestamps
00:00 Introduction and Guest Welcome

00:15 Andy's Background in Cross-Border Dispute Resolution

01:59 Key Considerations in Cross-Border Contracts

03:26 Litigation vs. Arbitration in China

07:50 Enforcement of Arbitration Awards in China

18:49 Trends and Practical Advice for Foreign Companies

24:24 Final Thoughts and Contact Information

Jacob Thomas

LinkedIn

Apple Podcasts

Welcome to another episode of the China Business Law Podcast! This episode features an insightful discussion with special guest Tim Yiming Liu, a partner at Global Law Office in Shanghai. We dive deep into aspects of cross-border dispute resolution and Tim’s extensive experience in the field, providing listeners with expert knowledge on navigating the complexities of legal disputes involving Chinese and foreign clients.

Send Tim an Email: [email protected]

Tim Yiming Liu is a seasoned partner at Global Law Office in Shanghai, specializing in China domestic and cross-border dispute resolution. His clients include high-profile companies such as ByteDance, Goldman Sachs, Nomura, SoftBank, Lenovo, Nestle, and Amazon, to name a few. With a professional background that spans over two decades, Tim’s expertise lies in resolving disputes from corporate governance, shareholder rights, and complex M&A transactions to liquidation and bankruptcy issues.

Tim began his career as a transactional lawyer, engaging in M&A, private equity, and venture capital deals. With changes in the global business landscape, Tim transitioned into dispute resolution, leveraging his cross-border qualifications and his sharp acumen in business law. As someone fluent in both English and Chinese, he adeptly manages Chinese and international client perspectives, offering a unique dual representation advantage in arbitration and litigation.

During the podcast, Art and Tim explore various challenges that arise during cross-border legal disputes. Common cases Tim handles include corporate and commercial disputes, shareholder disagreements, and M&A conflicts. Art delves into how foreign enterprises face litigation challenges in China and how Chinese firms confront unique obstacles in international jurisdictions, highlighting issues such as service of process, discovery, and interim measures.

Art and Tim explore the discovery process, a crucial yet complex element of cross-border litigation. Chinese companies often struggle with discovery requirements in foreign jurisdictions due to unfamiliarity and cultural differences in legal procedures. The protection of sensitive business data, constrained by China’s stringent cybersecurity and data security laws, often complicates evidence submission in cross-border disputes.

The concept of attorney-client privilege differs notably between jurisdictions like China and the U.S. While U.S. law offers robust protections, Chinese law does not formally recognize such privileges, compelling Chinese firms to adapt by involving U.S. counsel in applicable scenarios to benefit from this protection in cross-border disputes.

Tim emphasizes the importance of strategic decision-making in dispute resolution, particularly concerning jurisdiction and enforceability. Chinese courts, especially in metropolitan areas, are adept at handling complex commercial disputes impartially, offering a compelling venue for legal proceedings, depending on asset location and enforceability concerns.

An integral part of Tim’s litigation strategy involves continuous assessment of settlement options throughout the legal process. Factors such as litigation cost, potential outcomes, and the overarching business relationship often guide the decision to pursue settlement negotiations, balancing cost efficiency with optimal resolution outcomes.

This episode offers a treasure trove of insights for legal professionals and businesses alike, emphasizing the nuanced landscape of cross-border legal disputes. Tim’s expertise and strategic approach shine a light on the critical considerations for navigating international legal waters effectively.

Timestamps

00:00 Introduction and Guest Introduction

01:03 Tim Yiming Liu's Professional Journey

03:25 Common Cases and Disputes

06:45 Challenges in Cross-Border Disputes

10:00 Discovery and Data Compliance

20:20 Attorney-Client Privilege and Legal Strategies

22:26 Litigation and Arbitration Strategies

29:08 Settlement Considerations

34:08 Conclusion and Contact Information

Jacob Thomas

LinkedIn

Apple Podcasts

On today’s episode of the China Business Law Podcast we are privileged to speak with Professor Li Ji from the UC Irvine School of Law. Professor Li shares insights from his comprehensive book, "Negotiating Legality: Chinese Companies in the U.S. Legal System," exploring the intricate challenges and strategies of Chinese multinational companies operating in the United States.

Read Negotiating Legality

Professor Li Ji is a respected authority on the legal dynamics faced by Chinese companies in the U.S., having transitioned from a career in corporate tax law to academia, with a focus on compliance and legal risks. His research provides a nuanced understanding of how these companies navigate the U.S. legal environment while maintaining ties to Chinese cultural norms.

One of the key topics of our discussion revolved around the qualifications and influence of in-house counsel at Chinese companies in the U.S. Many companies do not employ full-time in-house counsel due to cost concerns, and those that do often prefer lawyers with Chinese backgrounds to bridge cultural differences effectively. This bicultural fluency aids them in educating headquarters about the legal risks of conducting business in the U.S.

Chinese companies often face a geopolitical and cultural learning curve when engaging with the U.S. legal system. Professor Li highlights their initial hesitance to escalate disputes due to a normative reluctance to litigate, which may be perceived as a weakness. Over time and through experience, however, these companies adapt to a more U.S.-style cost-benefit analysis.

Litigation, particularly in intellectual property, product liability, and contractual disputes, varies widely based on industry. Chinese multinationals must comprehend the demanding nature of U.S. litigation, notably the expansive discovery process. A combination of internal adaptation and expert external counsel is crucial for successfully navigating these challenges.

The dual institutional pressures from both Chinese and U.S. norms implicate the selection of legal representation. While large multinationals might partner with major law firms familiar from their home country, smaller firms lean towards cost-effective, flexible solutions. The trust and cultural familiarity are pivotal in building enduring relationships with external counsel.

In light of evolving U.S.-China relations, Chinese companies must strategically manage their U.S. operations. This includes structuring businesses to mitigate risks associated with their Chinese identity, such as establishing operations in neutral territories like Singapore or Switzerland.

Professor Li Ji's insights underscore the complexities and dynamic adaptations required by Chinese multinational companies operating in the U.S. legal landscape. His book, "Negotiating Legality: Chinese Companies in the U.S. Legal System," is crucial reading for understanding these transitions. We encourage our listeners to delve into the book for a deeper exploration of these themes.

Timestamps

00:00 Introduction and Guest Welcome

00:58 Professor Li Ji's Background and Career

02:09 Chinese In-House Counsel in the U.S.

03:58 In-House Counsel's Role in Decision Making

08:23 Challenges for Chinese Companies with Outside Counsel

19:09 Litigation and Legal Risks for Chinese Companies

25:00 Navigating U.S. Regulations and Government Interaction

33:58 Conclusion and Book Promotion

Jacob Thomas

LinkedIn

Apple Podcasts