Dehehantong Law Office
Notable cases
Case One: Lianrui Finance Leasing successfully issues green targeted asset-backed notes
June 10, 2025
Shanghai Lianrui Finance Leasing , a Sino-foreign joint venture financial leasing company, has successfully issued the "2024 First Phase Green Targeted Asset-Backed Notes" through the China Interbank Market Dealers Association. This issuance, valued at CNY 500 million, represents the first green asset-backed notes in Lianyungang City, Jiangsu Province.
The funds raised from this issuance are dedicated entirely to financing lease projects across several sectors: green transportation, renewable energy generation (specifically photovoltaic), comprehensive resource utilisation, sustainable natural landscape management, and green planting. This initiative is pivotal in promoting the concept of sustainable development within the region.
The legal team from Dehehantong Law Offices was instrumental in propelling this project from its inception through to its mid-phase progression and final submissions. Their meticulous attention to detail and proactive management facilitated a smooth and effective implementation of the project, ensuring compliance and efficiency at every stage.
Case Two: Defence prevails in case against allegations of wine smuggling using diplomats' duty-free quotas in China
This case centred around the defendant, Chen, who faced charges of smuggling high-value French wine into China. The prosecution alleged that Chen abused duty-free import quotas intended for foreign diplomats stationed in China, involving goods valued in excess of CNY 110 million and evading taxes of over CNY 40 million.
The primary challenge was to ascertain whether Chen’s activities constituted smuggling through misuse of diplomatic privileges, or if he was legitimately acting as an agent for duty-free imports on behalf of the diplomats. The involvement of foreign diplomats introduced an element of international complexity. In addition to the scale of the operation, the case also involved intricate tax issues and industry-wide implications.
The legal team from Dehehantong Law Offices defended Chen by focusing on the nature of his actions, arguing that he was merely facilitating imports for foreign diplomats and not engaging in smuggling. Through thorough scrutiny of import records and rigorous cross-examination of evidence, the defence was able to challenge the prosecution's claims effectively.
By presenting a robust defence based on detailed analysis of the import data and evidentiary challenges, the defence team managed to secure arguments that significantly weakened the prosecution's accusations, leading to a favourable outcome for Chen.
Case Three: Jiangsu Eazytec completes full stake purchase of Aipuyang Technology in two-stage deal
June 3, 2025
Jiangsu Eazytec, a STAR Market-listed provider of cloud computing firmware products and cloud services, acquired 100% of Shenzhen-based Aipuyang Technology [艾普阳科技(深圳)有限公司] through two transactions in 2023 and 2024 totalling approximately CNY 538 million. The acquisition enables Eazytec to leverage Aipuyang's customer channels for its cloud services and products while addressing regional gaps in its business operations.
The strategic move capitalises on growing demand for domestic alternatives in China's integrated development environment (IDE) market, where foreign products currently dominate. Aipuyang's DevMagic Studio, a NET cloud-native low-code development tool with independent intellectual property rights, offers comparable functionality to mainstream foreign solutions such as Visual Studio and Rider.
Eazytec's established reputation in domestically developed software positions the company to expand in the NET and JAVA low-code development tools market. This aligns with China's push for technological self-sufficiency and software localisation, potentially addressing key technical bottlenecks for domestic software firms and cloud service providers.
Case Four: Heberosia's strategic entry into the Chinese healthcare product market
In the context of the global healthcare industry's swift expansion, Heberosia, a leader in the consumer health sector, engaged Bai Fangrong and her team from Dehehantong Law Offices to devise a comprehensive legal framework for its venture into China's cross-border healthcare product trading.
The initiative encompassed the formation of an offshore company in the Cayman Islands, the acquisition of a US company, trademark licensing through a Hong Kong-based entity, and the development of overseas e-commerce channels.
This multi-tiered approach facilitated a seamless entry for Heberosia into the Chinese market and fostered strategic partnerships with prominent institutions such as Yuanhe Hospital and an A-share listed company. These collaborations significantly bolstered Heberosia's brand influence and competitive edge in the market. The project is notable for its innovative synthesis of legal and business strategies.
Key aspects
Bai and her team crafted bespoke cross-border legal solutions that aligned with Heberosia's international presence and the specific demands of the Chinese market.
A special purpose vehicle (SPV) was established in the Cayman Islands to facilitate capital operations within a compliant offshore investment framework.
Additionally, a novel cross-border authorisation pathway - from a Hong Kong trademark owner to an operating company in Chinese mainland - was developed, effectively overcoming brand entry barriers in China's healthcare product sector.
Legal counsel
Bai and her team delivered legal expertise that combined a global perspective with local practicality. They orchestrated complex cross-border legal structures, including the establishment of operations in the Cayman Islands and trademark licensing in Hong Kong, to navigate the multifaceted legal challenges in cross-border trade.
As pivotal members of the project, the legal team managed resources from various stakeholders to ensure the legal framework's efficient operation and execution.
Case Five: Resolution of contract dispute distinguishing between genuine sales and financing-oriented trade
A significant contract dispute was resolved involving a state-owned industrial company based in Shanghai (the industrial company), and a Zhejiang-based environmental technology company (the environmental company). The dispute centred around four equipment sales contracts valued at more than CNY 24 million in total, executed between December 2021 and June 2022.
Under these contracts, the industrial company was to supply equipment to the environmental company. To secure payment, the parties entered into several guarantee agreements, including a joint bank account custody agreement, a personal guarantee by the environmental company's legal representative, a real estate mortgage with the environmental company’s subsidiary, and a supplemental guarantee agreement involving all parties.
Despite fulfilling its supply obligations through procurement contracts with 31 suppliers, with goods delivered directly to the environmental company, the industrial company faced significant payment shortfalls. The environmental company made only partial payments, resulting in an outstanding balance exceeding CNY 20 million.
Legal representation
The Shanghai-based industrial company engaged Hou Jie and his team at Dehehantong Law Offices to pursue litigation.
Key aspects
The primary challenge in this case involved assessing the validity and nature of the four equipment sales contracts: whether they represented genuine sales or were merely trade-facilitated financing arrangements, which had significant implications for legal interpretation. The case's complexity was heightened by the involvement of multiple parties and an intricate transaction structure, encompassing the procurement contracts between the industrial company and 31 suppliers, as well as the detailed processes for the delivery and acceptance of goods.
The legal team from Dehehantong Law Offices organised and analysed evidence covering several facets, including the background of cooperation, the specifics of the contracts, and the payments made. They effectively reconstructed the industrial company’s role and function within the transaction, scrutinised its legitimacy as an intermediary in these dealings, and articulated a coherent rationale for the industrial company’s absence from the actual delivery and acceptance of the goods.
Leading the legal efforts, Hou Jie undertook comprehensive research to identify and distil the key characteristics that courts at various levels consider when adjudicating cases involving financing sales contracts. His analysis and argumentation culminated in the judge endorsing the industrial company’s perspective of the contracts. Given that the industrial company was a state-owned enterprise, Hou and his team’s efforts were crucial not only in recovering the outstanding payments but also in safeguarding the integrity of state-owned assets.
Case Six: Foreign-invested chemical company in Shanghai resolves labour dispute following factory relocation
A Japanese-invested chemical company in Shanghai (the Company) faced employment litigation after relocating its factory operations. Despite fulfilling its legal obligations regarding occupational health checks and compensation payments, two of the employees pursued legal action to reinstate their employment.
Legal counsel
Dong Chuanyu and his team at Dehehantong Law Offices represented the Company throughout the dispute resolution process. The legal team provided comprehensive support in developing employee transition strategies and preparing pre-litigation documentation to ensure full compliance with Chinese labour regulations, while addressing employee concerns.
Key aspects
(1) Compliant employee transition management
The legal team conducted thorough pre-litigation preparations that included developing individualised occupational health assessment plans for affected employees. The Company created alternative job placements with equivalent remuneration levels and maintained detailed records of all employee communications and conduct during the transition period. Throughout the process, the legal team worked closely with local labour authorities to verify procedural compliance at each stage.
(2) Effective dispute resolution strategy
During arbitration proceedings, counsel presented comprehensive evidence documenting the Company's compliance with all legal obligations regarding the termination process. The legal arguments clearly demonstrated the Company's adherence to labour regulations and its good faith efforts to resolve the matter amicably. While the arbitration tribunal ultimately rejected all employee claims, the Company continued to engage in settlement discussions, which led to a mutually acceptable resolution through court mediation.
Case Seven: South Korean semiconductor company completes labour compliance review for operations in China
A South Korean semiconductor equipment manufacturer with multiple mainland China operations engaged Dehehantong Law Offices to conduct a comprehensive review and rectification of its labour and employment systems. The project addressed compliance gaps and legal risks across the company's Chinese subsidiaries.
Key aspects
(1) Harmonising South Korean and Chinese employment regulations
The company's existing policies, based on South Korean law and global standards, required substantial localisation to comply with mainland China’s labour laws. Additional complexity arose from regulatory variations between different Chinese provinces where the subsidiaries operated, necessitating region-specific adjustments to ensure full compliance.
(2) Addressing industry-specific employment considerations
As a semiconductor manufacturer, the company required tailored solutions for technical confidentiality protections and non-competition clauses. The legal review focused on optimising employment contracts and internal policies to meet both legal requirements and industry-specific operational needs.
Legal counsel
Dong Chuanyu and his team at Dehehantong Law Offices delivered comprehensive legal services including full HR compliance audit, revision of employment contracts and internal policies, and implementation support for updated HR management systems. The project resulted in enhanced labour management systems and improved corporate governance for the company's China operations.