The U. Institutions abroad

Establishing a Legal Office in China: A Story of Cultural Nuances

In February 2007, the speaker's firm, lacking experience in international expansion, established a legal office for a Russian fashion company in China. They navigated the process themselves, learning along the way, especially regarding Chinese employment law.

Setting Up the Office

Establishing the office in Nimbo involved:

• Opening a bank account.
• Registering with tax authorities.
• Finding an accountant. These steps were relatively straightforward due to available information and helpful local officials.

Employment Contracts and Local Regulations

Initial Approach

Initially, Russian contract templates were translated into Chinese for employment contracts. However, Nimbo officials recommended additional documents to clarify employment conditions:

• Detailed job descriptions.
• Health and safety guidelines.
• Gui Zhang Zhi Du: A comprehensive document outlining workplace behavior, responsibilities, and grounds for contract termination.

The Significance of Gui Zhang Zhi Du

Gui Zhang Zhi Du served as a standard formalizing employee conduct. The Moscow office had similar documents, but they were not as rigorously enforced. In China, it was crucial for overseas employers to formalize these rules and obtain employee signatures.

Encountering Unexpected Scrutiny

A Ningbo government agency officer reviewed the drafted Gui Zhang Zhi Du and advised consulting a lawyer, leading to an eye-opening experience.

The Clothing Sample Clause: A Cultural Misunderstanding

A corporate law specialist reviewed the documents and identified a problematic clause.

The Issue

The document stated that employees were "not allowed to take samples of clothes from the office." This referred to fashion items used as pre-production samples.

The Consultant's Criticism

The consultant argued that explicitly prohibiting this implied that employees were likely to do it regularly, reflecting poorly on the company's assumptions about its employees' behavior.

Revising the Document

The speaker reported the issue to their boss in Moscow, and they agreed to remove the clause from the Chinese version of the document, although it remained in the Russian version.

The Value of Local Expertise

Seeking specialist advice proved invaluable. The formalized documents protected the company from potential lawsuits and warnings from local officials.

Cultural Differences and Assumptions

The speaker observed differences between their Moscow colleagues' perspectives and the realities of working in China.

Differing Perspectives

Moscow colleagues often applied their Russian experiences and assumptions about formal institutions and career development to the Chinese context.

The Need for Observation and Adaptation

The speaker realized the importance of observing and seeking advice, both formal and informal, rather than relying on pre-existing assumptions when working abroad.

Key Takeaway

While some rules might seem universal, cultural values and beliefs require careful consideration and adaptation. The experience underscored the importance of understanding local norms rather than imposing assumptions.

Preview of the Next Podcast

The next podcast will delve deeper into cultural values and beliefs.