The formation of a business consists of setting goals and considering various issues such as tax implications and business management styles. Once a business is up and running, business transactions and contract drafting and formation are a large part of the growth of a company.
Recently, a Chinese electronics maker signed contracts with three California businesses to buy $6 billion worth of parts. The companies include Avago Technologies in San Jose, Qualcomm in San Diego and Broadcom in Irvine. They will provide microchips and other components to Huawei Technologies Co., which is one of the world’s largest providers of Internet and telecom technology. No information of cost was revealed about the contracts.
According to a news report, those behind the contract believe the agreement will bring tens of thousands of jobs to the U.S. The Chinese company has been pushing into the United States market recently, and is said to be a competitor to U.S. companies such as Cisco Systems Inc. As a common worry, the company is seen as having a cost advantage. The Chinese company refuted the claims, saying they are not a competitor to American companies but rather a partner. The company apparently entered the U.S. market in 2001 and is partnered with 280 American technology firms.
In Alameda County and surrounding counties, business owners rely on professional aid in order to draft and review contracts in order to support the growth and business goals of their company. With experienced aid, a business can feel assured that contracts are being formed to serve the best interest of the growing company.
Source: LA Times, “China’s Huawei places $6 billion worth of orders in California,” Andrea Chang and Matt Stevens, Feb. 18, 2012