May 2008
Current Policies and Prospects on Cross-straits Economic Exchanges
Vice Chairperson of the Mainland Affairs Council Liu Te-shun (LTS) spoke with Chris Bisogni (CB) and shared his thoughts on the development of cross-straits economic ties and what the Taiwanese people can expect as a result of Ma Ying-jeou’s victory in the recent election.
Confidence in Ma but Urgent Attention to the Economy Needed: Lawyers
The election of Ma Ying-jeou as Taiwanese president is good news for Taiwan but lawyers agree economic reforms and direct flights to the PRC are two issues that need urgent attention. China Law & Practice invited six lawyers from Taiwan’s leading law firms to discuss the implications of Ma Ying-jeou’s election victory.
China’s Leading M&A Law Firms
M&A deals were a boom industry in China last year. Leading international and local law firms have been advisors to many significant deals which showcased just how ripe the environment has been in China for major business activity.
PRC Law on Mediation and Arbitration of Labour Disputes: Further Improvement in Handling Labour Issues in China
The PRC Law on the Mediation and Arbitration of Employment Disputes is another important step made by the Standing Committee of the PRC National People’s Congress after its promulgation of the Labour Contract Law in June 2007. Both this and the Labour Contract Law are intended to better protect the legitimate rights and interests of employees and employers, with the latter in respect of the substantive law and the former in respect of the procedural system.
New Registration Measures Provide Clarity for China Land Owners
With the new Land Registration Measures introduced in February the PRC Ministry of Land Resources is making a huge step towards bringing clarity and buyer protection to what has, over the last two decades, become a complicated and confusing procedure for the registration of property. In its enthusiasm to bring about constructive change, however, the central government may find its announced implementation of the new Measures to be a bit ambitious.
Customs Measures Move With the Times
The General Administration of Customs of the People’s Republic of China recently released its Decision on Amending the PRC Customs Measures for the Supervision of Processing Trade Goods (Decision), which has been in effect since 2004. The new measure was announced on 14 January 2008 and took effect since 1 March 2008. This development heralds the end of a long process of outward processing trade reform that will see the upgrade of China’s processing trade.
Contracts, Disputes, and New Jobs: An Overview of China’s New Labour Laws
The beginning of this year saw the introduction of a series of laws that have an immense effect on the labour market in the PRC. Many of their provisions have been expected and prepared for, while other areas of employment law remain unclear for many employers operating in the PRC. Therefore, knowledge of their content is essential for every market player with the need for hiring workers within the country.
Manufacturing Export Goods in China
China is not a free economy. Every business activity is regulated. According to current PRC laws and regulations, any established presence of a foreign company shall be approved and lodged with relevant government authorities. Unregistered business activities may be caught and deemed illegal by Chinese government authorities.
April 2008
Grounded – Private Airlines Stifled by State-owned Players
With so many airlines operating in the PRC, private airlines find it hard to make profit amidst the many state-run competitors. In spite of liberalization, financing and cumbersome regulatory procedures have failed to produce a level playing field. To further enhance the aviation industry, these problems must be addressed in order to give private airlines more room to grow.
New China Banking Regulatory Guidelines: Supervision Raised to Minimize Risks of Domestic Banks
In response to the rapid development of the banking industry in the PRC, new rules were promulgated on February 4 2008 to address a number of related issues. Several of China’s top lawyers shared their views on the new Guidelines for the Consolidated Supervision of Banks (Trial Implementation).
Supreme Court Interpretations on Handling Disputes Between Registered Trademarks, Enterprise Name and Prior Civil Rights
In recent years, the number of cases concerning conflict between registered trademarks, enterprise names and the prior civil rights has been increasing sharply in China. This has created widespread concern and is fast becoming a hot and difficult issue in the trials of intellectual property rights.
Ambushing China and the Olympics
Ambush marketers, by loose association with an international sporting event, can claim the same benefits of advertising as an official sponsor who will have paid a great deal for that status. This can result in the misappropriation of intellectual property, and allows a marketer to unfairly capitalize on the publicity surrounding an event, such as the Olympics. As China gears up for the Beijing games, this is an important issue that needs to be addressed.
March 2008
Putting China’s Labour Contract Law into Practice
With reports emerging of mass layoffs preceding its implementation, and factory closures or relocations to cheaper jurisdictions afterwards, the newly-effective Labour Contract Law has drawn much criticism. Large employers complain that it adds unreasonable costs, while employees are disappointed that the Law does not offer as many benefits for them as compared to the original draft. But is the Law as it stands a workable compromise, and can it be enforced in its current form prior to the release of implementing regulations?
PRC Civil Procedure Law Revised
In the past 16 years, the PRC Civil Procedure Law has played an important role in safeguarding the civil rights and interests of the parties and regulating the conduct of the other relevant participants in litigation. However, with the rapid development of China’s economy and the increasingly complex and elaborate Chinese legal system, more and more civil and commercial disputes have arisen in recent years and aggrieved parties are more willing than ever to resort to court to resolve their disputes. This has created the need for a revised version of the legislation with more specific guidance and rules, especially regarding retrial and enforcement procedures.
Amendments to the Law on Lawyers: Ethical Standards Raised, but Not Yet to International Standards
China’s new Law on Lawyers addresses fundamental rights for lawyers. This month, Joanna Law spoke with some of China’s top lawyers who shared their views on the amendments and discussed what further changes would be beneficial to the profession.
China’s Policy-Driven Push to Innovate and Drive its Auto Industry Green
New rules issued by the NDRC represent the Chinese government’s most recent effort to centrally manage the development of the domestic Chinese auto industry, while still promoting the innovation required for its success. The modern auto industry presents the nation with what is arguably one of the most technology-intensive and innovation-laden challenges yet. Whether such government-led innovation can be successful will certainly be interesting to watch as the rules are played out.
Investigative Due Diligence and M&A in China
February 2008
The Draft Energy Law: a Possible Legal Protocol to Help China Go Green
As the second largest emitter of greenhouse gas in the world after the United States, the PRC is under great pressure and scrutiny from other countries, and has dedicated a great deal of resources and legislation effort in order to lower its emissions. Can the draft Energy Law successfully turn China into an energy-efficient country?
Implementing Regulations for the PRC Enterprise Income Tax Law
Since the passage of the PRC Enterprise Income Tax Law last March, local companies and foreign-invested enterprises alike have eagerly awaited the implementing regulations that would reveal the details of how the law would be put into practice. In order to enhance the operability of the law, these regulations give specific definitions, criteria for tax-liability reductions and concessions, and other critical details.
Methods for Registration of Mortgage of Chattels
Business people and lawyers have often complained of the vagueness and impracticalities of China's legal rules regulating the filing of charges over chattels. With the advent of the New Methods for Registration of Charges of Personal Properties, much light is shed and many problems removed; yet ambiguities still abide around several key issues.
Chinese Law on Lawyers Amended: Progress Made and to Be Made
Chinese lawmakers accomplished much in 2007. Chief among their achievements include the promulgation of the Property Law, Anti-monopoly Law, Labour Contract Law, and amendments to the Law on Lawyers. In particular, they adopted significant changes to the Law on Lawyers, ushering in a brand new era in the legal profession in China.
Why Compliance with the US Foreign Corrupt Practices Act Matters in China
How is it that US law can apply to certain Chinese companies and the conduct of Chinese business executives? The answer is the Foreign Corrupt Practices Act (FCPA), a broad-reaching US law enacted to prohibit bribery as a means of obtaining and retaining business. A common misperception in the business community is that the FCPA applies only to US companies and US citizens. However, under certain circumstances, the FCPA can also apply to the conduct of Chinese companies and Chinese business executives, making FCPA compliance crucial.
Opportunities for Foreign Investment in PRC Securities Companies
With the boom in the PRC equities markets and the emergence of outbound wealth, foreign interest in China's financial services market has grown substantially. In response to these pressures and the changing environment, the latest round of reforms in the securities industry offers increased clarity and certain real opportunities to tap into the growing PRC securities market.