An introduction to the Chinese legal system, Discussion of legal modules to do business in China, and protection of intellectual property rights.

1. Legal Strategies for Entering to the Chinese Market and Protection of Intellectual Property Rights 进入中国市场的法律策略及知识产权保护 Amit Ben-Yehoshua China Partner Shibolet & Co. Advocates & Notaries © Copyright reserved to Amit Ben-Yehoshua

2. I Love China

10. Pros and Cons to Joining Forces with a Local Partner 与当地合伙人合作的优势与劣势 Inflexible – changes require unanimous consent and governmental approval Sometimes the law requires JV and no alternative options Risk of mishandling of intellectual property rights Guanxi Factor (network, connections) The need to share control of the Company Equity Injection Different Management Style. Market economy, relatively a new concept. Local partners’ knowledge and familiarity with the local market Cons 劣势 Pros 优势

13. Comparison of Representative Office with WFOE 外商独资企业和代表处的比较 30-60 days 30 days Time of approval Based on profit Calculated based on expenses Tax May employ local and foreign employees Only through approval of approved labor bureaus Labor Yes- varies per jurisdiction Not required Minimum Registered Capital Yes No Limited liability Operates like a regular limited liability company, subject to its business scope. Limited to marketing research, and liaison activities Legal Capacity WFOE Representative Office Issue

15. Joint Ventures 合资公司 Foreign Party Chinese Party Joint Venture

18. Foreign Direct Investment by Vehicle Type 不同投资形式下的投资额 (number of projects) 38 50 Foreign Investing Shareholding Ventures (Holding Companies) 29,543 30,164 WFOE’s 641 1,036 Cooperative Joint Venture 7,649 10,223 Equity Joint Venture 38,871 41,473 Total FDI 2007 2006

20. Typical Offshore Structure Offshore Legal Entity Hong Kong, BVI, Singapore WFOE/Representative Office /Joint Venture

22. Intellectual Property Rights 知识产权保护

36. Thank you

37. Questions and Answers