July/August 2010
Go green, go west, go high-tech
A series of new policies recently released to attract foreign investment demonstrates China’s aim to diversify foreign direct investment, channel money into the central and western regions, and encourage environmentally-friendly and high-tech industries to set up onshore. However, the rules are fairly general and more legislation will be needed for proper implementation
Taxing Rmb funds with foreign-invested limited partnerships
With new measures allowing overseas private equity players to adopt a new structure for its Rmb funds, authorities have yet to concretely define certain terms of a partnership in order to set a conclusive tax rate
The Anti-monopoly Law’s next stage
China’s antitrust regulators recently released new draft regulations that address, among other key clarifications, the enforcement of prohibitions in the anti-monopoly law. However, one notable area the draft omits is how the competition rules will treat intellectual property
A stricter, but more equal game for insurance investment
New measures tighten the administration of investment into the insurance sector, but now foreign participants can expect equal treatment with domestics on shareholding ratio requirements. And for the first time, the new rules address horizontal competition
A momentous year: recent legislative developments in Taiwan
A brief look at regulations that shaped Taiwan's investment landscape over the past year
Finally crossing the bridge
Taiwan banks have entered a new era with the amended cross-strait banking rules allowing them to set up branches in China and directly make equity investments in Chinese banks. Future prospects appear even brighter since the signing of the ECFA, as further relaxations of cross-strait restriction are expected by the Taiwanese banking community
Preparing for a Taiwan debut
Taiwan is increasingly becoming an attractive destination for technology companies to conduct their initial public offerings and list their securities, so interested issuers should familiarise themselves with the listing process and related legal matters
Taiwan attracts more investors with signing of the ECFA
A milestone agreement between Taiwan and mainland China will buoy Taiwan exports as customs duties are wiped out for over 500 products and services covered in a special “early harvest” list. But more than just saving on tariffs, the pact offers a greater profile for Taiwan as a launch pad for investors wishing to enter the Chinese market
Keeping track of the new Personal Data Protection Act
Companies in Taiwan are advised to re-visit their personal data collection policies to ensure compliance with the new Personal Data Protection Act. The new law is very detailed and provides a boost to the protection of privacy and personality rights
PRC environmental regulations
China has been making a very conspicuous push towards implementing greener policies that will affect manufacturing industries. Here, three specialists provide insight and advice into what regulations to pay particular attention to, and how foreign companies can remain compliant and possibly beneft from these new environmentally-friendly policies.
China in-house interview: Embracing the long arm of the law
Beijing-based Bin Zhou, vice president and general counsel at Sony China, speaks with CLP about his company’s experiences with the anti-monopoly law (AML)
Editor's letter: Clear objectives
June 2010
Leading the way: Supreme Court sets the IP rules
The Supreme People’s Court is enforcing IP in China, paving the way toward greater clarity on a range of IP issues and providing reassurance that this world superpower is a safe place for IP owners everywhere
Online accountability
Two sub-clauses in the new PRC Tort Liability Law determine for the first time the responsibility of network service providers regarding online infringement matters. But implementation and how the courts interpret unclear aspects of the clauses await testing
Business as usual
With the new PRC Tort Liability Law coming into effect on July 1 2010, CLP contacted a number of China-based in-house counsel to find out what their thoughts were on the potential impact of the new regulation on their business. Here’s what some of them had to say:
Guarding intangible assets
Even though new rules on the protection of state secrets fail to fully clarify existing definitions of classified information, they do provide guidance on standards and internal administrative reform for greater consistency across the classification regime
Pursuing the private sector
The new opinions from the State Council encouraging private sector investment allow foreigners to participate, especially if they can offer new technologies, but detailed implementation rules are lacking
Rewarding green efforts
Energy service companies are now privy to incentives and governmental support after Chinese authorities issue new policies that encourage businesses to become more environmentally-friendly
China in-house interview: Managing risks, step by step
Shenzhen-based James Jun Yao, chief legal officer at Ping An Insurance, speaks with CLP about the various stages of risk management
Foreign director liability
With a heightened focus on executive corruption and the new tort law coming into effect in July, three specialists offer their insights on how foreign senior personnel can protect themselves from liability should their companies run into trouble
Alternative financing routes for energy-intensive companies
PRC banks ordered to tighten lending
May 2010
Protecting the people
After eight years, China’s long-awaited Tort Liability Law is primed to wholesale regulate tort liability and re-set quality standards for PRC-made products. Clarifications on product liability, punitive damages and statutes of limitation are addressed, but enforcement and integration with existing regulations, along with other vagaries, remain to be tested
Guarding your IP and enforcing your rights
IP specialists from Zhong Lun Law Firm discuss various approaches of intellectual property rights protection in China, and outline the relevant government agencies involved and their roles
Ruling the expanding insurance group kingdom
A new set of measures has been released to regulate domestic insurance companies as their appetite grows for more business operations. As their scope widens, foreign players are presented with a range of investment opportunities
Equipment tax break for R&D centres
Though new measures provide clarifications about R&D centre eligibility requirements for equipment tax benefits, investors should pay attention to several issues
Principle impact of Copyright Law amendments
The recently amended PRC Copyright Law offers several new clarifications, including providing protection to works that have not yet been authorised for dissemination or publication in China and the requisite registration of copyright pledges
Reining in rising real estate prices
The Chinese government’s recently-issued macro regulatory control policies on the real estate sector should be effective in subduing soaring property prices and paving the way for foreign investment opportunities
Distinctive M&As
As the acquisition of a Chinese company by a foreign investor is treated differently under PRC law than a purely domestic M&A, counsel need to be mindful of several issues that are often overlooked
Homing in on transfer pricing
Tax authorities across China are strengthening transfer pricing regulations. They are now enforcing the collection of contemporaneous documentation and foreign companies must ensure they prepare these by the deadlines issued
Technology transfers into China
Protecting your IP and being aware of relevant regulations in China are essential when considering technology transfers to PRC partners. Three specialists discuss how to best guard your IP assets and structure a fair deal.
A new law, a new look
Upgrading the "Made in China" image
April 2010
Rep office clampdown
A new tax circular bolsters the administration on representative offices. This will ensure greater tax compliance and shake them out of complacency
Rural reform
In a recent push to jumpstart initiatives that would develop its countryside, the central Chinese government has issued a new opinion that offers rural inhabitants much needed financial support and resources
Everything old is new again for Sino-foreign JVs
The Sino-foreign joint venture has re-emerged as a leading vehicle for foreign investment in China. This resurgence means that foreign companies must pay closer attention to how its contracts address issues of technology
E-commerce in China
Entering the China market via its cyberspace can be daunting when rules are unclear to foreigners. Here, three specialists offer their advice on how to do e-business in accordance with PRC guidelines.
Stay on target with due diligence
At Asialaw’s In-house Counsel Summit in Hong Kong on March 17 2010, Danone’s Asia-Pacific general counsel David Flavell reviewed recent trends in target due diligence practices
China's rural reform: Looking inward (and a little bit outward)
Security review further obstacle to M&As
March 2010
Reshaping the patents game
New implementing rules for the PRC Patent Law will have a significant impact on foreign companies’ China IP strategies. Issues relating to security review procedures and first-filing have been clarified, but penalties are tougher and uncertainties remain abundant
New Patent Law implementing rules to have a deep impact
CLP asked a range of lawyers from international firms to submit their comments and opinions on the revised Implementing Rules for the updated PRC Patent Law. Here is a selection of their comments
Courts get expanded jurisdiction for IP cases
China’s highest court has published two new sets of guidelines which affect the jurisdiction of lower courts in relation to IP cases. For foreign companies, this means more litigation and a need for increased vigilance
Margin trading ready at last
For years, mainland China has been preparing for margin trading and short sale of securities. With the securities regulator’s promulgation of a new guiding opinion, those preparations appear finally to be complete
Doing your China due diligence
Conducting thorough due diligence is essential in China, but there are decisions to make about the proper priorities as well as the best processes to choose
Light at the end of the tunnel for China derivatives
On February 25, a panel of leading China transactional lawyers discussed the legislative and regulatory changes affecting the regulation of derivatives and structured finance in China
China's legal system: a work in progress that demands respect
Tengzhong loses Hummer
Plenty of lessons for foreign companies
February 2010
Keeping your China operations clean
Foreign companies operating in China face the dual challenge of winning business in a highly competitive environment while at the same time conforming to both domestic and international laws against corruption and fraud. An effective ethics and compliance programme is an essential ingredient of success
UK Bribery Bill: The long arm of the Crown
A new British law will force any company with a business presence in the UK to operate an adequate anti-bribery policy overseas. The burden is likely to be particularly heavy for those operating in China
China makes a renewed commitment to clean energy
China is showing its dedication to the renewable energy sector through amendments to legislation and the creation of incentives for domestic usage, while importation of renewable energy equipment continues to face difficulties
Foreign-invested partnership regulations: radical reform or unmet expectations?
New rules on foreign-invested partnerships have raised hopes of a new investment vehicle for inbound business. But their effectiveness appears limited
Extraterritorial enforcement of corporate income tax
A tax circular which seeks to strengthen the administration of tax on income derived from equity transfer may have a profound impact on non-resident investors using offshore vehicles. But the authorities have some legal hurdles to clear
Interpreting the PRC Patent Law
China’s highest court has published a judicial interpretation of the PRC Patent Law which gives significant guidance on many issues facing foreign rights owners
Chinese overseas investment summarised
As its economy continues to grow rapidly, China is looking for more outlets for its foreign exchange reserves. This is a trend which is reflected by recent legislation on overseas investment
Beijing opens up to foreign private equity fund managers
Beijing has responded to Shanghai’s recent relaxation of rules in Pudong by issuing measures to allow foreign private equity fund managers to set up shop
Taking security in China
Taking security over assets in China can be challenging, not least due to the various approval and registration requirements for foreign investors
The key to success in your China law research
After unprecedented success in the US, Thomson Reuters Legal has rolled out its Key Number System in the Chinese market. It allows lawyers to conduct their research quickly and efficiently, and eliminates the problem of missing vital knowledge
Corruption: The topic that’s here to stay
Commitment, energy and the right corporate culture are all needed in order to keep corruption at bay
Li Lian Khoo: Derivatives will overcome teething troubles
Li Lian Khoo is director of legal and compliance at UBS and a member of the traded products team