Print This Page
Crisis Management

Like any other growing market not yet supported by transparent regulatory requirements or established practices, China can present surprises.  No matter how well-prepared a foreign investor may be, there are always some situations that require true local expertise to resolve.

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.

Our services are sought in connection with a wide range of crises due to our deep local knowledge and reputation for being able to provide efficient, practical and effective advice.   Previous cases have included allegations of corruption and smuggling, governmental requests for sensitive information, theft of trade secrets and various highly contentious labor disputes.

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.

Client Services

  • Resolution of crisis situations discreetly, promptly and definitively (independently or alongside specialized GR/PR firms)
  • Damage control (including negative press and damage to the brand), and mitigation of legal and financial risks
  • Consultations and negotiations with employees and/or trade unions in contentious labor disputes and collective actions
  • Communications and negotiations with government agencies
  • Advice on smuggling, customs fraud and tax evasion allegations
  • Development of measures to preempt and resolve crises and to minimize risks
  • Advice on the prevention and/or investigation of theft of trade secrets

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 have potentially crippled the client's JV operation
  • Assisted an international clothing retailer with a highly contentious labor dispute over 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 internet company in its defense against allegations by a local competitor of the theft of trade secrets in Beijing
  • Assisted a major 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.