Expo sponsors given legal guidance by UK China expert

Sponsors of the Liverpool Pavilion at the World Expo in Shanghai received expert advice on the legal and financial issues of doing business in China at a special event this morning.

Josh Wong, Partner at DLA Piper, and a specialist on the firm's China Desk, spoke at the event, which was attended by more than 30 businesses using the Expo as a platform to build new and nurture existing links with China.

The event, held at DLA Piper's Liverpool offices, was jointly hosted with accountants Grant Thornton. Guests were also addressed by Grant Thornton Partner Nick Farr, Liverpool Vision's Director of Investment and Enterprise Mike Taylor and Ian Pollitt from lead sponsor of the pavilion, Peel Holdings.

Sponsors were advised on a wide range of issues including managing employees, strategies for cash extraction, dispute resolution and intellectual property rights. They were also given a taste of Peel Holdings' experience in China following a successful start to their Expo campaign.

Josh Wong said: "It is often very lucrative to work with China and with proper planning it can be a great success. Any business hoping to foster business links with China needs a robust strategy to ensure the process is properly managed.

"Issues which businesses should be aware of include the difference between the UK and China with regards to contracts, how to deal with dispute resolution effectively, intellectual property rights and the laws around employing staff.

Nick Farr, South East Asia Tax Specialist Partner at Grant Thornton, said: "China offers huge opportunities, but there are numerous issues facing anyone doing business there, and it is important to get the structure of the operations correct at the outset. In particular, planning ahead for moving cash in and out of the country is key. Without adequate preparation, businesses can find themselves facing numerous administrative and regulatory issues. In some cases, this could result in cash being trapped.

"Getting intercompany agreements in place and approved by the relevant authorities up front should potentially avoid costly and time consuming negotiations with the authorities later on."