Others

Protecting the consumer
China’s consumer code is due for an update. A number of innovations to the current law are being discussed for an upcoming draft, including the right of revocation, data protection and class actions

State-owned Assets Supervision and Administration Commission of the State Council, Tentative Measures for the Administration of Overseas State-owned Assets and Equity of Enterprises Directly under the Central Government [Legislation Digest]
国务院国有资产监督管理委员会中央企业境外国有产权管理暂行办法
Sasac tightens control of overseas state-owned subsidiaries.

Tentative Measures for the Administration of Overseas State-owned Assets and Equity of Enterprises Directly under the Central Government [Full Text Translation]
中央企业境外国有产权管理暂行办法
Overseas state-owned assets and equity shall be held by an enterprise directly under the central government or a subsidiary thereof.

Ministry of Finance and State Administration of Taxation, Plan for Pilot Projects for the Levy of Value-added Tax in Replace of Business Tax [Legislation Digest]
财政部、国家税务总局营业税改征增值税试点方案
Transport and logistics sectors benefit from the new VAT reform.

Restoring confidence: Strengthening the regulatory system for PRC firms listing overseas
Recently Chinese companies listed overseas have been experiencing a credibility and credit crisis after revelations of accounting fraud. One solution is to improve the formation of a regulatory system

Get the facts on fraud prevention and detection
In the wake of the fraud scandals of Chinese companies listed in the US, CLP spoke to Kroll managing director and leader of its Greater China Financial Investigations practice, Colum Bancroft to learn more about how companies can mitigate the risk of falling victim to fraudulent activities.

Measures for the Administration of Certification Institutions [Full Text Translation]
认证机构管理办法
The Measures set out the conditions for establishment of certification institutions by foreign investors, the examination and approval procedures thereof and the code of conduct of certification institutions.

General Administration of Quality Supervision, Inspection and Quarantine, Measures for the Administration of Certification Institutions [Legislation Digest]
国家质量监督检验检疫总局认证机构管理办法
Regulation of certification institutions strengthened.

A celebration of excellence
The China Law & Practice awards 2011 concluded a year of groundbreaking deals that demonstrated China’s burgeoning confidence and legal sophistication. Baker & McKenzie and Fangda Partners took home the top awards of the night, while many others were recognised for their achievements of legal distinction in the past 12 months

Ministry of Finance, Measures for the Examination, Approval and Regulation of Asset Valuation Firms [Legislation Digest]
财政部资产评估机构审批和监督管理办法
Asset valuation firms in the form of special general partnerships allowed.

Funds: Heading in the right direction
The revised sale of securities investment funds measures introduce more competition by loosening qualification restrictions and allowing new entrants flexibility in compensation structures for value-added services

State-owned Assets Supervision and Administration Commission of the State Council, Circular on Matters Relevant to the Exchange of State-owned Assets and Equity of Enterprises Directly under the Central Government [Legislation Digest]
国务院国有资产监督管理委员会关于中央企业国有产权置换有关事项的通知
Restrictions imposed on exchange of state-owned assets and equity.

Ministry of Finance and State Administration of Taxation, Circular on the Deed Tax Policy for the Change of Ownership of Premises or Land from One Party to a Marriage to Co-ownership by Both Parties to the Marriage [Legislation Digest]
财政部、国家税务总局关于房屋、土地权属由夫妻一方所有变更为夫妻双方共有契税政策的通知
Deed tax exempted for adding spouse’s name to the property.

Rooting out corruption
The new UK Bribery Act signals the start of a new era of enforcement for Chinese organisations on the world stage. If they haven’t done so already, PRC companies must review their existing anti-corruption policies and procedures, and assess their business risks to ensure they put in place appropriate measures to deter and deal with any corrupt acts

Ministry of Finance, Guiding Opinion on Directing Enterprises to Select Accounting Firms Using Objective Standards [Legislation Digest]
财政部关于引导企业科学规范选择会计师事务所的指导意见
Large local accounting firms are being promoted.

Safe registration of China round-trip investments
New rules simplify foreign currency registration of round-trip investments and fundraising, while increasing the pressure and urgency on investors to rectify previous non-registration. Safe increases its focus and coordination while Mofcom uncertainties remain

National Development and Reform Commission, Guidance Catalogue for Industry Structure Adjustment (2011 Version) [Legislation Digest]
国家发展和改革委员会产业结构调整指导目录（2011年本）
Alternative energy and advertising included in the industry structure adjustment catalogue for the first time.

State Council, Guiding Opinion on the Launch of the Pilot Social Old-age Insurance Project for Urban Residents [Legislation Digest]
国务院关于开展城镇居民社会养老保险试点的指导意见
China launches its social old-age insurance scheme.

Ministry of Health, Provisions on the Filing and the Acceptance Thereof of New Varieties of Food-related Products [Legislation Digest]
卫生部食品相关产品新品种申报与受理规定
Provisions to combat inclusion of inedible substance in foodstuffs.

Shanghai Municipality, Several Opinions on Accelerating the Development of New Towns in Shanghai [Legislation Digest]
上海市关于本市加快新城发展的若干意见
Shanghai to develop suburbs into new towns.

Ministry of Finance, Tentative Provisions for the Temporary Conduct of Auditing in Mainland China by Overseas Accounting Firms [Legislation Digest]
财政部境外会计师事务所在中国内地临时执行审计业务暂行规定
Provisions for temporary auditing unified.

Tackling foreign bribery
A new one sentence supplement to China’s criminal law ramps up the government’s anti-bribery campaign, extending its reach to punishing Chinese citizens or entities who attempt to bribe government officials outside China. But, several key terms lack definition and enforcement remains a challenge

Tentative Provisions for the Temporary Conduct of Auditing in Mainland China by Overseas Accounting Firms [Full Text Translation]
境外会计师事务所在中国内地临时执行审计业务暂行规定
The Provisions further regulate the temporary conduct of auditing in mainland China by overseas accounting firms.

To be or not to be (a foreign rep office)
New regulations offer clarity on the administration of foreign representative offices; however, this investment vehicle may no longer be an optimal arrangement for some overseas companies wishing to enter the Chinese market

Tips for franchising in China
Two specialists provide advice on what issues to be aware of and what precautions to take when considering franchising in the PRC.

The storm before the calm