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Compliance guide

Hiring Chinese-based talent —
the legal map.

Six compliance layers every US brand asks about before hiring cross-border. This guide is the navigation map; SpiderGig handles the platform-side plumbing (escrow, tax forms, payment rails). Specific edge cases need your own counsel.

⚠ Informational only — not legal advice. Always consult licensed counsel for your specific situation, jurisdiction, and contract.

Quick decision tree

Where does the freelancer reside? The answer determines the compliance stack.

US resident
W-9 path

Treated like any US contractor. SpiderGig collects W-9, files 1099-NEC at year-end if earnings ≥ $600. Standard Stripe Connect payout.

China mainland resident
W-8BEN + treaty path

SpiderGig collects W-8BEN to claim US–China tax treaty benefits. Payout via Wise (USD → CNY at spot) or HK Stripe Connect. Files 1042-S at year-end.

Third-country (HK / SG / MY / EU / LATAM)
W-8BEN-E or W-8BEN path

Entity vs individual determines form. Multi-currency Wise payout. Country-specific treaty rates apply.

  1. 1 · Tax classification (W-8BEN vs 1099-NEC)

    outline

    Which form applies to whom, treaty rate lookups, year-end filing flow.

    • W-9 (US persons) → 1099-NEC ≥ $600 — SpiderGig auto-files
    • W-8BEN (non-US individuals) → treaty rate (US–China = 10% on services typically) → 1042-S
    • W-8BEN-E (non-US entities) — HK Ltd / Singapore Pte / BVI
    • Resident vs non-resident determined by IRS substantial presence test
    • [Needs counsel review: state-level (CA / NY) nexus rules]

  2. 2 · Payment rails (4 paths compared)

    draft

    Stripe Connect, Wise, digital RMB, third-country entity — when each makes sense.

    • Stripe Connect Express (US brand → US-resident freelancer) — fastest, no FX
    • Wise Business (US brand → Chinese-resident freelancer USD → CNY at spot) — SpiderGig default for mainland
    • Stripe Connect HK / SG (freelancer has HK or SG entity) — clean, lower FX friction
    • Digital RMB / e-CNY (PBoC pilot, 2026 cross-border expansion) — emerging, limited US brand acceptance
    • [Needs counsel review: which combinations require SAFE pre-registration]

  3. 3 · IP transfer (work-for-hire vs China IP law)

    outline

    US work-for-hire doctrine vs PRC Copyright Law Article 17 — and how SpiderGig contracts bridge the two.

    • US default: brand owns IP under work-for-hire if specified in contract
    • PRC default: creator owns IP unless contract specifies transfer + meets PRC formalities
    • SpiderGig MSA includes explicit IP assignment clause referencing both jurisdictions
    • Pre-existing IP / open-source carve-outs handled per-brief
    • [Needs counsel review: patent assignment specifics for AI / semi / hardware]

  4. 4 · Foreign exchange + SAFE registration

    outline

    PRC State Administration of Foreign Exchange (SAFE) thresholds and what triggers individual vs corporate registration.

    • Annual $50K personal FX quota (SAFE Notice 7) — freelancer earnings above this need corporate channel
    • Service-export classification — most freelance income qualifies, lighter FX scrutiny than capital flows
    • Quarterly SAFE reporting thresholds and forms
    • When a freelancer should set up a HK / SG entity to bypass the personal quota
    • [Needs counsel review: 2026 SAFE digital-RMB cross-border pilot rules]

  5. 5 · Export controls (AI / semi / dual-use)

    outline

    BIS Entity List, EAR rules on AI model / training data / hardware design exports to China — and what SpiderGig won't accept as a brief.

    • BIS Entity List — SpiderGig screens both sides against current list before activating a brief
    • AI model exports: frontier-model training restricted (Oct 2024 BIS rule); inference / app-layer mostly OK
    • Semiconductor design (EDA, advanced node) — restricted; SpiderGig declines briefs that fall in scope
    • Dual-use (defense / surveillance / biotech) — SpiderGig declines categorically
    • [Needs counsel review: 2026 EAR updates]

  6. 6 · Dispute resolution + governing law

    draft

    Stripe Connect dispute flow, SpiderGig mediation, and arbitration path when contracts go sideways.

    • Milestone escrow = first line of defense — brand approves before funds release
    • Internal mediation by SpiderGig ops (LA, EN + 中文) — 80%+ disputes resolve here
    • Stripe / Wise chargeback windows (typically 30–60 days after payout)
    • Formal arbitration: SpiderGig MSA defaults to JAMS Los Angeles (US) or HKIAC (cross-border)
    • [Needs counsel review: PRC arbitration enforceability + 2026 NY Convention status]

Quick questions

Does SpiderGig file my freelancer's taxes?

We collect the right form (W-9 / W-8BEN / W-8BEN-E) and file the corresponding year-end document (1099-NEC / 1042-S). The freelancer is still responsible for their own income tax in their home country.

Can I hire a freelancer in China if my brand has zero presence there?

Yes — that's exactly what SpiderGig enables. You contract with SpiderGig (US LLC); SpiderGig contracts with the freelancer. You never need a China entity.

What happens if BIS / OFAC sanctions hit a freelancer mid-project?

SpiderGig screens at brief activation. If sanctions land mid-project, we pause payouts, notify both sides, and refund unfinished milestone escrow to the brand per the MSA force-majeure clause.

Who owns the work product?

Brand owns it under the SpiderGig MSA IP assignment clause, which is drafted to be enforceable under both US work-for-hire and PRC Copyright Law Article 17. Pre-existing freelancer IP / open-source dependencies are carved out per-brief.

Have a specific compliance question?

Our compliance team in LA reads every email — typically reply within one business day. For deal-blocking edge cases, we'll loop in outside counsel at no charge during Beta.

[email protected]