Trade

Foreign Investment Industrial Guidance Catalogue (Amended in 2007) [Full Text Translation]
外商投资产业指导目录 (2007年修订)
The new guidance catalogue has re-defined industries into those that are encouraged, restricted or prohibited for foreign investment.

Risks Faced by China-based Toy Manufacturers
Recent concerns over safety in the toy industry should prompt foreign investors and PRC manufacturers to be aware of legal ramifications. This article explores ways of limiting potential liabilities when exporting goods to the US.

PRC Anti-monopoly Law [Full Text Translation]
中华人民共和国反垄断法
China's first anti-monopoly law. This law aims to ensure fair market competition and to prevent and halt monopolistic acts.

Overview of the Anti-monopoly Law
The PRC Anti-monopoly Law codifies existing rules and establishes a basic legal framework to build a fair, uniform, and national competition-based economic system.

PRC Anti-monopoly Law [Legislation Digest]
中华人民共和国反垄断法
China's first law on anti-competitive activities promulgated.

Suggestions on Regulatory Compliance with the New Anti-monopoly Law for Multinational Companies in China
The article helps legal departments of foreign companies in China to better understand the new law and legally maximize their interest under the restrictions of the Anti-Monopoly Law.

CHINESE COMPANIES CONTINUE TO FACE TRADE DIFFICULTIES

IP rights in China in an Anti-monopoly Law Era

Ministry of Health, Measures for the Administration of Novel Foods [Legislation Digest]
卫生部新资源食品管理办法
Genetically modified food requires safety assessment before placing on the market.

China Adopts a Comprehensive Competition Law After a 13-Year Journey

HAZARDOUS TOYS, FOOD THREATEN US-CHINA TRADE

LARGEST ANTI-COUNTERFEITING RAID EVER TARGETS FAKE MICROSOFT PRODUCTS

When Raiding Is Not The Answer

Ministry of Commerce and General Administration of Customs, Announcement [2007] No.44 (Catalogue for Commodities in the Restricted Category for Processing Trade) [Legislation Digest]
商务部、海关总署公告 2007 年第 44 号 (加工贸易限制类商品目录)
Labour-intensive processing trade discouraged.

Ministry of Commerce, General Administration of Customs and China Banking Regulatory Commission, Announcement [2007] No.71: Announcement on the Methods for Paying Deposits into the Bank Account [Legislation Digest]
商务部、海关总署、银行业监督管理委员会公告2007年第71号 (台账保证金缴纳方式公告)
Requirements on deposit payment loosened for processing trade enterprises.

China VAT Export Rebate Cuts: Impact on Sourcing&Trade Imbalances
Many exports from China are subject to higher net value-added tax (VAT) costs under a notice effective from July 1 2007.

Anti-counterfeiting: The Law Now, in 2010 and Beyond
How China is tackling her greatest challenges in IP rights protection: enforceability, the question of who is liable for infringements and local protectionism.

China's New Franchising Regime
New regulations on commercial franchises should contribute to making the mainland a much more accessible market for international franchisors. What are the new rules, and what questions regarding franchises remain unanswered?

Measures for the Administration of Record Filings in Connection with Commercial Franchising [Full Text Translation]
商业特许经营备案管理办法
This law strengthens the administration of commercial franchising activities, regulates the order of the franchising market, and provides requisite application procedures.

Measures for the Administration of Information Disclosure in Connection with Commercial Franchising [Full Text Translation]
商业特许经营信息披露管理办法
The franchisor is required to disclose certain information to the franchisee in writing at least 30 days before the conclusion of franchise contract. A confidential agreement may be executed before information is disclosed.

Ministry of Commerce, Measures for the Administration of Record Filings in Connection with Commercial Franchising [Legislation Digest]
商务部商业特许经营备案管理办法
Specific materials and procedures for franchise record filing detailed.

Ministry of Commerce, Measures for the Administration of Information Disclosure in Connection with Commercial Franchising [Legislation Digest]
商务部商业特许经营信息披露管理办法
Franchisors required to disclose certain information to their franchisees before signing the contract.

Other Recent Legislation for this Month [Legislation Digest]

China's Legal Services Market: Survival of the Fittest
Chinese law firms and foreign law firms play different roles in the legal service market in China. Who is taking the lead and where do these firms fit into the big picture?

General Administration of Customs, Measures for the Administration of Direct Return of Imports [Legislation Digest]
中华人民共和国海关进口货物直接退运管理办法
Imports may be directly returned by order of customs.

State Administration of Foreign Exchange, Circular on Adjusting the Administration Mode for Market Entry into and Exit from the Spot Settlement and Sale of Foreign Exchange Businesses of Banks [Legislation Digest]
国家外汇管理局关于调整银行即期结售汇业务市场准入和退出管理方式的通知
Application procedures for settlement and sale of foreign exchange businesses by banks simplified.

State Administration of Taxation, Circular on Issues Relevant to Set-off of the Amount of Value-added Tax on Purchases in Connection with Imports of Taxpayers [Legislation Digest]
国家税务总局关于纳税人进口货物增值税进项税额抵扣有关问题的通知
Set-off of Value-added tax on purchases relating to imports clarified.

Ministry of Commerce, Circular on Issues Relevant to Strengthening the Administration of Processing Trade [Legislation Digest]
商务部关于加强加工贸易管理有关问题的通知
Environmental protection, energy consumption, employee treatment and equipment quality included in the criteria for engaging in processing trade.

Other Recent Legislation for this Month [Legislation Digest]

Guidelines on Anti-monopoly Filings for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors [Full Text Translation]
关于外国投资者并购境内企业反垄断申报指南
These Guidelines aim to facilitate filings for mergers and acquisitions of domestic enterprises by foreign investors to ensure that they are not in violation of the anti-monopoly law.

National Development and Reform Commission, Measures for the Administration of Tobacco Monopoly Licences [Legislation Digest]
国家发展和改革委员会草专卖许可证管理办法
Foreign-invested commercial enterprises prohibited from engaging in tobacco retail and wholesale businesses.

China's Developing Franchising Market
Wen Jie and Richard Wageman discuss the development of the exponentially growing franchising market in China, against which the most recently promulgated franchising legislation is interpreted.

Regulations for the Administration of Commercial Franchising [Full Text Translation]
商业特许经营管理条例
This law introduces some new regulations with respect to new and existing franchising businesses, and stipulates the requirement of information disclosure by a franchisor to a franchisee.

Interpretation on Several Issues Concerning the Application of the Law in Trials of Civil Unfair Competition Cases [Full Text Translation]
最高人民法院关于审理不正当竞争民事案件应用法律若干问题的解释
The Interpretation addresses the adjudication of civil unfair competition cases includimg counterfeits, falsified advertisement, trade secrets, defamation.

State Council, Regulations for the Administration of Commercial Franchising [Legislation Digest]
国务院商业特许经营管理条例
New rules for franchising include regulations for new and existing businesses.

Supreme People's Court, Interpretation on Several Issues Concerning the Application of the Law in the Trial of Civil Unfair Competition Cases [Legislation Digest]
最高人民法院关于审理不正当竞争民事案件应用法律若干问题的解释
The PRC Anti-unfair Competition Law clarified.

China Law&Practice: Charting China's Legislation for 20 Years
An overview of the biggest legislative developments over the past two decades and the key issues affecting law firms in China today.

SONY SUED FOR UNFAIR COMPETITION

NEW INTERPRETATION ON UNFAIR COMPETITION LAW

New Regulatory Developments in China's Derivatives Markets
Regulatory authorities have responded with legislation on exchange forwards and swaps. Will the authorities liberalize constraints on the derivative markets to meet international market standards?

The Battle for Intellectual Property in the Semiconductor Business
Many Chinese semiconductor producers lack IP portfolios rendering them increasingly vulnerable to infringement claims by their foreign rivals. The IP war has begun.

New Judicial Interpretation in Fair Competition Law
Clarifies what constitutes well-known commodities and infringement of business secrets. Yan Xun reviews the key issues affecting intellectual property rights owners in China.

Ministry of Commerce, National Development and Reform Commission, General Administration of Customs, General Administration of Quality Supervision, Inspection and Quarantine and Certification and Accreditation Administration, Circular on Regulating the Order of Motor Vehicle Exports [Legislation Digest]
商务部、国家发展和改革委员会、海关总署、国家质量监督检验检疫总局、国家认证认可监督管理委员会关于规范汽车出口秩序的通知
Stricter rules for export of automobiles.

National Development and Reform Commission, Circular Concerning the Opinion on Adjusting the Structure of the Motor Vehicle Industry [Legislation Digest]
国家发展和改革委员会关于汽车工业结构调整意见的通知
Car manufacturers required to be more careful in managing their production capacity.