December 2007/January 2008
Guangzhou-the Legal Field in South China's Trade Capital
Often overlooked by foreign investors, Guangzhou offers a wealth of opportunity in areas such as real estate, manufacturing, finance, and of course the legal services that go along with such businesses. This month, China Law & Practice explores the lesser-known commercial capital of southern China and talks to some of the legal practitioners that have helped the region grow into the booming hub of trade and industry that it is today.
By Brandon Kirk and Joanna Law of China Law & Practice
Foreign Investment Industry Catalogue: New Revisions & Alignment with National Development Strategy
The new guidance catalogue has re-defined the industries for foreign investment. FIE regulations are more closely aligned with the PRC government's evolving national economic development policy.
Crisis of Confidence in Chinese Food Exports: Causes, Effects, and a Solution for Customer Assurance
Given the recent tainted food imports report in the US, Chinese food exporters are advised to take concrete steps to assure consumer safety.
Growing Pains: A Road Map for Chinese Companies Learning to Live with Complex US Litigation
Mapping the general process of complex commercial litigation in the US, this article highlights some aspects that may come as an overwhelming shock to Chinese companies.
Latest Regulations Relating to the Provisions on Grant of State-owned Construction Leaseholds
The Provisions further regulates the regime over the increasingly popular construction leasehold granting through bidding, auction or listing.
New Guidelines on Syndicated Loans in the PRC
The new Guidelines standardize practices in China's nascent syndicated loan market. Updated areas include expanding the role of the agent, and making changes to the roles of the agent, lenders and borrower.
November 2007
Managing Risks in China - Bribery, Corruption, and Little Red Packets
PRC-related business transactions are susceptible to the common practice of bribery. This article, after reviewing the legal measures, enforcement problems, gives handy advice for precautions and risk management.
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.
A Guide to Clean Development Mechanism (CDM) Projects in China
Rebecca Zhang outlines the legal framework and background of CDM projects in China, governing authorities, the approval process, and other key legal issues.
Rural Land Rights under the PRC Property Law
This article examines the status of rural property rights and recommends a series of institutional measures including standardizing registration and renewal processes.
October 2007
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.
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.
The Role of the Administrator under the PRC Enterprise Bankruptcy Law
The new law should give investors more certainty with regarding the possibility of recovery for their capital invested.
China's Revised Lawyer's Law: Practical Benefits for a Strengthened Legal Profession
The Lawyer's Law is expected to make a major contribution to strengthening the independence of China's legal profession, and help enhance the quality and diversity of legal services available in China.
Companies, Exchanges and Transactions: Regulating the Re-emergence of China's Financial Futures Industry
The Futures Companies Measures are particularly helpful in examining and understanding the re-emergence of the financial futures industry in China and the evolving regime that will regulate its practice.
September 2007
New Rules on the Choice of Law for Foreign-related Contracts
Parties to foreign-related contracts have been free to choose which country's law govern their contracts - except where PRC law is mandatory. The new Provisions provide better guidance on deciding the governing law of the contract.
China Law & Practice Awards 2007: The Finalists
The inaugural 2007 China Law & Practice awards are being given to recognize excellence in China's legal services field. China Law & Practice provides a definitive list of the top law firms serving the China market.
China's Bilateral Investment Treaties with EU Member States: Gaining a Competitive Advantage Through Investment Protection
The article explores available options to extend the full protection under the 'new generation' of bilateral investment treaties to otherwise unprotected investors.
China Outbound Portfolio Investment: Fleshing Out Regulations for QDII Securities Institutions & Insurers
Recent legislation has filled the gaps in the PRC's qualified domestic institutional investor (QDII) regulations. Changes affect China's balance of payments and international relations.
Prospects for a Personal Information Protection Law
Recently, there has been discussion of a possible law on personal information protection in China. What would it mean for companies doing business in China?
July/August 2007
China's Biggest IPOs and their Legal Advisers
China's surge in initial public offerings has been met with an extremely enthusiastic response from both local and foreign investors. The increase in activity has also been warmly welcomed by professional service providers such as law firms, which have benefited immensely from the booming market. This month, China Law&Practice looks at some of the most successful listings of the past year and the legal advisers that worked on them.
Navigating the New Employment Contract Law
The recently issued PRC Employment Contract Law affects all employment relationships in the PRC. Increased employee protection is provided by requirements for the establishment, implementation, amendment and termination of contracts.
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.
Restrictions on Foreign Investment in the Real Estate Industry
New rules on foreign investment in real estate will further strengthen administration related to the examination, approval, registration and supervision of foreign direct investment in the industry.
SAFE Plugs Holes for China/Offshore Round-trip Investments
Cross-border "round-trip" investments and related transactions are now supported and constrained by newly-standardized comprehensive governmental procedures for foreign exchange registration.
Finance Leasing with Chinese Characteristics
The China Bank Regulatory Commission is reviewing applications by five commercial banks to establish finance leasing companies. How will this new business vehicle impact the Chinese finance leasing landscape?
June 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 Property Law: Practical Issues
The new Law provides a comprehensive framework for the protection of property rights for both foreign and domestic parties. Clarity of title and stability of property rights will be easier to attain.
Share Pledges in China: Prospects under the New Property Law
The PRC Property Law improves upon the existing vague legal provisions and inconsistent local authority practices regarding share pledges.
China Outbound Investment: Banks' Scope Broadened, Trusts Added
PRC domestic savings will soon have additional overseas outlets, as regulations are issued to permit more types of outbound investment by greater types of qualified domestic institutional investors.
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?
May 2007
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?
New Regulations for Law Firms' Securities Practice: Loosening Access, Strengthening Accountability
New Measures favours giving regulatory authorities greater powers of discretion in validating legal opinions. The article analyzes the new rules, and how securities lawyers can ensure compliance.
PRC Taxes on Hong Kong & Foreign Companies: Clarifications, Changes, Challenges & Opportunities
Hong Kong and foreign companies making frequent visits to mainland China are likely to be subject to PRC enterprise income tax, while foreign investors, lenders and technology licensors will face challenges in seeking the most preferential rates of PRC withholding tax.
April 2007
China Tightens its Environmental Law Control over New Investment Projects
How environmental law is applied in China, and how stepped-up enforcement of existing legislation is ensuring compliance with the State Environmental Protection Agency's objectives?
Saving China's Environment: From Compliance to Best Practice
What standards of environmental protection should multinationals and their legal advisers consider, and why?
Interpreting the New Enterprise Income Tax Law
The new Enterprise Income Tax Law will take effect on January 2008. What changes should be expected by foreign investors?
New Merger Control Guidelines Clarify Procedures and Information Required for Merger Filings in China
The new Guidelines detail what information is required from a notifying party in its submission to the Antitrust Investigation Office. Key procedural issues are also clarified.
Recent Changes to Regulations on Industrial Land
Industrial land is subject to a new set of regulations in terms of granting procedures, granting prices, urban land use tax and requirements governing the conditions of using industrial land.
March 2007
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.
China's Partnership Enterprise Law Revised
Specific Law Application Issues Concerning Trials of Disputes over Infringement upon Rights to New Varieties of Plants
China continues to develop its legal regime protecting the creation and development of new plant varieties with the issuance of new rights and remedies available for infringement disputes involving new plant varieties.
Encouraging Investment with Incentives for Establishing Headquarters in Guangzhou
In its eleventh five-year plan for the development of foreign trade, Guangzhou made a commitment to encourage foreign investors to set up headquarters and regional headquarters in its municipal area.
February 2007
CIETAC Arbitration Clauses: Tips and Pitfalls
Howard Yinghao Yang suggests how practitioners can structure arbitration clauses under the new rules and interpretations to ensure enforcement of awards both domestically and internationally.
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.
Shortcomings in China's Corporate Governance Regime
Challenges ahead to bring PRC companies in compliance with internationally-accepted best practices.
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.
Stricter Regulations for Resident Representative Organizations in China of Foreign Insurance Institutions
The new measures governing the establishment of representative organizations by foreign insurance institutions replace a similar set of measures promulgated only two years before.