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Recognizing the difference of labor laws between the U.S. and China, the U.S. parties need to recognize the differences when negotiating and investing in China, because some of the clauses can be settled when signing contracts or agreements. For China’s part, minimum wages are crucial for them to remember when they do business in the U.S.; the good thing is that they do not have to pay holidays that are different from China. Overall, the benefits are tremendous when the differences are recognized in advance of investments, contracts or agreement negotiations. Recognizing the differences between the two labor acts will avoid unnecessary cost and conflicts.

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