I. Background It is not uncommon for foreign companies that have not established a representative office, subsidiary, or any other form of business presence in China to nonetheless carry out business activities—such as sourcing and procurement—through local teams based in China. In these circumstances, some foreign companies enter into service agreements with Chinese human resources providers, under which the provider acts as the nominal employer (commonly referred to as an Employer of Record, or "EOR"). The EOR formally enters into employment contracts with Chinese staff, handles payroll processing, and administers social insurance and housing fund contributions, thereby enabling the foreign company to meet its staffing needs in China. This model is attractive to many foreign companies because it allows them to commence operations in China quickly, with a relatively light asset footprint, while streamlining HR administration and maintaining greater flexibility in staffing.

When the terms “monopoly” or “market dominance” are mentioned, small and medium-sized enterprises (SMEs) often instinctively think of industry giants with massive social influence. However, in judicial practice, being investigated or penalized by antitrust authorities, or facing litigation, for alleged abuse of a dominant market position is not exclusive to large, well-known companies. Many enterprises that hold a dominant position in specific regions or market segments—even if they are not as well-known as large enterprises—may likewise face legal risks if their conduct violates antitrust laws.

Intellectual property (IP) rights attached to goods entering or leaving China's customs territory can receive proactive protection ex officio even before the goods reach their target market. Under relevant Chinese customs laws, domestic and foreign IP right holders may apply to the General Administration of Customs (GACC) for recordation of their IP rights (trademarks, copyrights, and patents). Once recorded, such information can serve as a crucial basis for Customs to respond more proactively and efficiently to import and export goods suspected of infringing upon the recorded IP rights during customs supervision. Currently, no administrative fees are charged for such recordation, making this mechanism a highly cost-effective option for IP right holders.