Like any other growing market not yet supported by transparent regulatory requirements or established practices, China can present surprises. While foreign investors are advised to prepare themselves for the proper and effective handling of unexpected crisis situations, many of them fail to do so.
Indeed, even when all caution has been exercised, companies operating in China come to us upon learning that they - or their employees, suppliers, affiliates or representatives - have actually been operating outside the law. Often, our clients only discover this during compliance reviews, as a result of employee complaints or even by reading the morning headlines. In other cases, bad-faith business practices or malicious action by competitors can lead to potentially disastrous PR and/or brand damage. These incidents almost always require immediate action, to not only mitigate the legal effect of the violations but also to preserve the client's reputation.
Client Services
As a Chinese firm with an international flair, TransAsia has a unique understanding of the local environment. Our services have been sought in connection with a wide range of crisis situations. These include allegations of corruption, alleged smuggling cases, government requests for sensitive information, and various types of highly contentious labor disputes. Every situation is different. We have a reputation for being able to provide efficient and effective advice.
We assist our clients with the following:
- Resolution of crisis situations discreetly, promptly and definitively (independently or alongside specialized GR/PR firms)
- Limitation of damages (including negative press and damage to brand image), and minimization of legal and financial risks
- Communications and negotiations with the relevant government agencies
- Allegations of smuggling, customs fraud and tax evasion
- Prevention strategies and best practices to pre-empt crises from occurring, minimize risk, as well as resolve crises that arise
- Prevention and/or investigation of theft of trade secrets
Our crisis management team works in conjunction with our dedicated employment, intellectual property and corporate accountability teams to address our clients' specific requirements.
TransAsia also enjoys close working relationships with various government agencies. This enables us to comment on how policies are interpreted and implemented, as well as to determine the best approach where government liaison and/or lobbying is required.
Representative Matters
- Advised a global food and beverage company on handling a large-scale, highly contentious dispute with its former senior management personnel who enjoyed a close relationship with the Chinese partners and the government and which could potentially cripple the client's JV operation
- Assisted an international clothing retailer with a highly contentious labor dispute over issues relating to wages, overtime pay and social security, involving more than 20,000 employees in Shanghai
- Successfully defended a U.S. multinational against allegations of customs fraud and smuggling brought by the Shanghai Customs Police
- Provided advice and assistance to a leading global search engine in its defense against allegations by a local competitor of the theft of trade secrets in Beijing
- Assisted a major toy manufacturer to resolve a total of 364 labor disputes over unpaid social security issues, involving more than 40,000 employees in Guangdong
- Assisted a multinational company to handle a dispute over land-use rights and property ownership of its joint venture in Guangdong province which threatened the future operation of the client's business
- Successfully defended a leading U.S. IT product distributor against tax evasion allegations by the tax authorities in Wuhan
- Successfully represented the foreign parties to 2 joint ventures in Shanghai and Shenyang in disputes with their Chinese joint venture partner relating to land-use rights
Representative Clients
For confidentiality reasons, we do not disclose the names of our clients in this practice area.
