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China Company Chops — Legal Effect & Control Risks

In China, company seals (“chops”) often carry more practical authority than a signature alone. Foreign-invested enterprises must control who holds the official company chop, financial chop, contract chop, and legal representative chop.

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At a glance

  • Store chops securely; log each use
  • Separate custody of financial and company chops
  • Define approval rules in internal policies
  • Act quickly if a chop is lost or stolen

Why chops matter

Counterparties and banks frequently treat a properly chopped document as binding on the company. Loss or misuse of chops can create unauthorized contracts or banking risk.

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