After Huawei breaks through restrictions, how many obstacles remain for Chinese companies to develop in the U.S.？
The China–United States trade war has continued since 2018, the longer the battle line is drawn, the related topic of the heat does not abate, but at the same time, Chinese enterprises in the 'go global' want to seize the United States market ambition has never retreated.
In the face of U.S. sanctions on technology, Chinese companies seem to have seen the light at the end of the tunnel, in the case of Huawei, which has recently sold the Mate60 in a low-profile manner, and has been repeatedly sanctioned for its trips to the United States:
- May 20, 2019, the United States of America on Huawei's export control ban extended to May 15, 2020.
But Huawei "See the problem, solve the problem", has on the new Mate30 series, 5G SOC Kirin 9000 and cloth Harmony OS Hongmeng operating system. This time , the new machine Mate60 ushered in a new round of counterattacks.
For the new machine Mate60, Bloomberg commissioned a professional organization to dismantle the machine, released on September 4 about the results of the chip - the new Kirin 9000s chip used in the new machine, from a Chinese chip manufacturer. Previously sanctioned because of the chip issue Huawei in this time to deliver a new answer, but the White House insisted: in the absence of more precise information about the characteristics and composition of the chip, will not comment on the chip, while once again emphasized the "U.S. should continue to implement the 'small yard and high walls' technology restriction measures ".
Chinese enterprises frequently by the U.S. side "care"
This side of the United States and Huawei's "tug-of-war" between the United States is still not over. The United States of America on the other sea to the United States of Chinese enterprises are also strengthening the "care", the tug-of-war will be expanded to the "U.S. and Chinese enterprises".
In April this year, the United States ruled that DJI infringed on two U.S. patents of Textron Innovations and fined a total of 278.9 million U.S. dollars. Waiting until August, the United States Textron Corporation, citing DJI's failure to cooperate with the court's review, requested that the fine against DJI be raised from $279 million to $837 million, and urged DJI to hand over its core code as soon as possible to await the investigation.
In the same month of April, the US-China Economic and Security Review Commission under the US Congress released a relevant report, which concluded that cross-border e-commerce platform SHEIN, Pinduoduo's Temu, and other Chinese e-commerce companies have data security, procurement violations, intellectual property rights violations, and the use of trade loopholes. and other issues that pose a security risk to the United States.
Solving the compliance crisis in the United States
If the Chinese enterprises in the face of U.S. technical sanctions continue to "see the trick", the first results. Then Chinese enterprises seafaring in the United States, in the face of market compliance is slightly weak. In August of this year, iTutorGroup, an online education unicorn that was once the most popular in China, was fined about 2.64 million yuan for violating the U.S. Age Discrimination Act (ADEA) and other regulations in employment. Building a team is the first and crucial part of an enterprise's search for business opportunities overseas. What are the legal provisions that you should pay attention to in order to avoid being penalized for hiring in the U.S.? Is there really no solution to the "unavoidable" U.S. employment compliance problem of head enterprises? As a one-stop global employment and payroll management platform, PayInOne will use case studies to illustrate the three points that need to be avoided in order to achieve U.S. employment compliance.
U.S. federal law generally prohibits employers from discriminating against employees or applicants on the basis of race, religion, sex, national origin, age, familial status, or disability. At the same time, this anti-discrimination law applies from the time of recruitment to the end of employment.
In addition to the iTutorGroup mentioned above, in March of this year, a New Jersey-based IT recruiting firm was fined $25,500 by the Immigration and Nationality Act (INA) for hiring only non-U.S. citizens who required visa sponsorship (one of the job postings was for Indian applicants only). This is because employers are generally prohibited under the INA's anti-discrimination provisions from recruiting or refusing to hire workers based on citizenship or national origin. The DOJ emphasized that "when employers advertise jobs only for applicants who are from a particular country or who need a temporary visa, they discourage all other eligible workers and deprive them of a fair chance to participate in the workforce."
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In other words, if a Chinese company is sailing to the U.S. and wants to hire U.S.-based workers, it cannot post a job advertisement that says "Americans only" but rather "English proficiency is preferred."
2.Compliance with Federal and State Laws
It is well understood that Chinese companies employing in the United States must comply with labor laws, but because U.S. labor laws include federal and state laws, and state laws are different, there will be a conflict between the two, which increases the likelihood that Chinese companies will be fined.
Take child labor as an example: on February 17th of this year, Packers Sanitation Services (Packers Sanitation Services, one of the largest food sanitation companies in the United States) paid $1.5 million in fines for illegally employing at least 102 children (13-17 years old) on night shifts on eight continents in the United States. Among the fines, Packers Sanitation Services was fined $400,000 in Kansas. The reason is that according to the Kansas Department of Labor, children must be at least 14 years old to work, except for children employed by their parents, working on farms, delivering newspapers, or in non-hazardous jobs.
The children's work required the use of caustic chemicals to clean "razor sharp saws," head separators and other hazardous equipment, making it hazardous work. According to a follow-up investigation, the dangerous nature of the work was indeed confirmed: at least three children were injured, including chemical burns to the face, while disinfecting the floor and other areas of the slaughterhouse in the middle of the night.
And there are some state laws in the U.S. that relax restrictions on hiring child laborers:
Therefore, when Chinese companies set sail to the United States, in addition to complying with federal law, they also need to take appropriate measures in accordance with the laws and regulations of each state.
3.Respect for privacy
At the beginning of the article, PayInOne cited many examples of Chinese companies going to the U.S. and being penalized after investigations. At the level of individual employees, companies hiring an employee also need to KYC, need to investigate and verify the employee's credit status, education, work experience and other background information. However, this investigation process can not violate the privacy of the employee, so it is necessary to follow the personal privacy law and other data protection regulations to protect the privacy of workers during the investigation process.
In addition to these three points, companies hiring employees in the U.S. should also pay attention to differentiate the type of employee (full-time, contractor ......) and other issues. And to sail smoothly to the U.S. and avoid being penalized on employment, Chinese companies can choose to work with a one-stop global employment and payroll management platform like PayInOne.
The PayInOne system covers the employment guidelines of each country, including laws and regulations, policy changes, labor protection, investment policies, entry thresholds, etc., to ensure that the enterprise's employment complies with the employment standards and legal processes. The one-stop automated onboarding vetting service verifies the true identity of employees as accurately as possible, helps companies extract key personal information and provide risk alerts, and is compliant with the Personal Privacy Act and the EU's GDPR privacy policy, all of which are strictly protected. Even companies without a principal in the U.S. can work with PayInOne in the form of EOR to achieve U.S. compliant hiring.
Source of legal articles mentioned in the article: https://www.kuaf.com/show/ozarks-at-large/2023-08-15/new-law-weakening-child-labor-protections-in-arkansas-takes-effect https://thehill.com/homenews/education/4123821-dol-cracks-down-on-child-labor-while-states-loosen-laws/ https://www.ottumwacourier.com/news/federal-officials-iowa-chid-labor-law-conflicts-with-national-restrictions-on-dangerous-workplaces/article_a9d6a228-4b51-11ee-aeab-138fa0ca56f9.html The information in the text does not constitute any binding legal advice and PayInOne can be contacted for further communication if required.