June
China’s trademark squatting problem goes global
Chinese media reported the case between Qiaqia and OKAI as a victory of a domestic company over a foreign rival trying to block its entry into a new market. In fact, the case reveals how Chinese companies going abroad are making the same basic trademark errors that foreign companies make in China
In the news: Wine import tax and why the coast is still best
The Ministry of Commerce has retaliated against EU solar tariffs with an investigation into European wine imports and a closer look at why foreign investors are still considering the coast for manufacturing despite soaring costs
In the news: CSRC crackdown, VIE structure and Chengdu’s rise
The CSRC has punished two brokerage firms for fraud and the question of whether the VIE structure is valid has reappeared. Chengdu is now home to 31 more Fortune 500 companies, securing its place as China’s new foreign investment destination
May
Government boosts regional investment
The NDRC and MOFCOM have updated the Catalogue for guiding regional investment. It shows how China’s investment dynamics are changing, with the majority of foreign investment expected to move inland soon
In the news: PE and VC may get single regulator, plus $7.1 billion pork deal and cross-strait trade service agreement
The CSRC may become the only regulator for PE and VC investments, a move that will standardise the sector. Shuanghui has agreed to buy US pork processing outfit Smithfield for $7.1 billion and the PRC and Taiwan concluded talks over a trade service agreement
Legislation roundup: WTO disputes, VAT and freezing assets
MOFCOM has issued Draft Rules for trade remedy disputes after the WTO’s ruling. MOF and SAT have issued a Circular expanding the VAT reform to cover the whole country
China Law & Practice Awards 2013 – Recognising China’s elite
The research process for this year’s China Law & Practice Awards has already begun. With more categories than ever before and for the first time individual awards, do not miss the chance to participate
Legislation roundup: Regional investment, bond offerings and highway tolls
NDRC and MOFCOM have updated the catalogue on investment in central and western regions. NDRC has also produced a circular on enterprise bond offerings while the Ministry of Transport has circulated draft regulations on highway tolls
Foreign companies face greater scrutiny over consumer protection
A Bill to amend the law on consumer protection emphasizes data protection, advertising and recall policies. But ultimately the new Bill gives greater power to the authorities; something foreign companies need to watch out for
Legislation roundup: FDI Provisions, immigration and insurance administration
SAFE has released Provisions easing forex controls over foreign direct investment. The Legislative Affairs Office of the State Council has issued Regulations over the exit and entry of foreigners and the CIRC has produced Measures for the scopes of business of insurance companies
Interview: Meeting the burden of proof
Weichai Power, an automobile company in east China’s Shandong province, hit the headlines this year when it signed a strategic alliance with Ferrari. David Tring spoke with Jeffery Chen, Weichai’s general legal counsel, on R&D, what he looks for from outside counsel and the alliance
How Chengdu is using IP to attract foreign investment
Officials in the western city of Chengdu have used an enhanced IP system to attract foreign investors. David Tring spoke to Ding Xiaobin from the city’s Science & Technology Bureau to find out more about the initiative
MOFCOM speeds up simple mergers
The Ministry of Commerce has set out what merger applications can be classed as simple cases, but has not yet clarified what the streamlined approval process will look like
Legislation roundup: Foreign debt, consumer rights and investment funds
SAFE has issued a Circular simplifying foreign debt registration. The Standing Committee of the National People’s Congress has released a draft on consumer rights and the CSRC has produced draft Measures on the operation of public securities investment funds
April
Legislation roundup: Equity investments and information disclosures announced
The CIRC has issued a Circular regulating equity investment in insurance companies. The CRSC has released Guidelines and Compilation Rules for information disclosures by companies that offer securities
How to resolve the CIETAC dispute: rebranding
The bitter dispute between CIETAC and its sub-commissions that has cast a shadow over dispute resolution in China may finally be over with the establishment of the Shanghai International Arbitration Centre
How the Qihoo v Tencent case affects China’s anti-monopoly regime
Guangdong Higher People’s Court has ruled against Qihoo in a dispute over market dominance. The Court’s comprehensive 80-page decision shows that it is taking anti-monopoly cases seriously
Legislation roundup: Foreign exchange, patent disputes and wealth management
SAFE has issued Guidelines over the interbank forex market, while the SPC has revised Provisions for patent disputes. The CBRC has also produced a Circular regulating the investment operations of wealth management of commercial banks
What's next for China's offshore renminbi market
The landmark three-year bond from China Minmetals last month highlights China’s developing offshore renminbi market, but SOEs still have to contend with strict registration requirements from SAFE
Legislation roundup: Anti-monopoly reviews and securities investment funds
MOFCOM has issued draft Provisions streamlining competition reviews and draft Provisions on restrictive conditions when approving a concentration. The CSRC has produced Measures allowing foreign-funded banks to be custodians of securities investment funds
March
Seven years and still not right – New draft of Trademark Law fails to impress
After seven years of waiting, the NPC is expected to pass amendments to the Trademark Law this year. But, after four drafts, some lawyers are still saying that the changes will do more harm than good
Legislation roundup: Advance offerings, outbound investment and lease financing contracts
Several government bodies have issued a Circular over pilot projects for the advance offering of treasury bonds. MOFCOM has issued Provisions to record unfair competitive acts by Chinese companies and the SPC has released an Interpretation over lease financing contracts
CSRC’s reforming chairman steps down
CSRC chairman Guo Shuqing stepped down last week. It is unclear why Guo, a dynamic reformer, left and whether his successor will continue his policies
Legislation roundup: Equity incentives, securities investments and insurance company guidelines
The CSRC has issued draft Provisions over equity incentives and restraint mechanisms of securities companies. The Commission has also released Measures for the sale of securities investment funds, while the CIRC has issued guidelines for the development plans of insurance companies
CSRC extends RQFII to HK banks and insurers
China’s top regulator is allowing Hong Kong and foreign financial institutions to tap into the country’s capital markets, but it is unclear what threshold the foreign institutions will have to meet to be classified as having a principal place of business in Hong Kong
Legislation roundup: Asset securitisation, renminbi bonds and privately raised securities
The CSRC has issued Draft Provisions over asset securitisation and Tentative Measures for the privately raised securities investment fund business, while the NDRC has produced a model outline for offering renminbi-denominated bonds in Hong Kong
Patent boom trendsetter: Huawei interview
Song Liuping, Huawei’s Chief Legal Officer, talks about domestic and international patent filings, the company’s success and shares his views on the patent boom
Legislation roundup: RQFII investments and foreign debt
The China Securities Regulatory Commission has expanded the scope for RQFII investments, while the State Administration of Foreign Exchange has set the short-term foreign debt quota for certain foreign-funded banks
Interview: Building CIETAC's global role
Last year CIETAC opened its first Arbitration Centre outside mainland China. David Tring spoke to CIETAC Hong Kong’s Secretary General, Wang Wenying, about the role of the new Centre and CIETAC’s place in global dispute resolution
February
Why the courts and the NDRC disagree over price fixing
As the NDRC becomes more aggressive in its price fixing enforcement, businesses in China are waiting for an appeal decision in a case where a Shanghai court has taken a different approach to the Commission’s
NDRC imposes a second record anti-monopoly fine
China’s National Development and Reform Commission has levied a second record fine this year for price fixing, which highlights its increasingly aggressive stance
Legislation roundup: Securities fund management, Taiwan investments and electronic bidding
The China Securities Regulatory Commission issued Tentative Provisions for securities investment fund management, while the Ministry of Commerce published Tentative Provisions over indirect investment from Taiwanese investors
Legislation roundup: SPC interpretation, CIRC investment circular and securities company provisions
The Supreme People’s Court has released an interpretation on employment contracts and the China Insurance Regulatory Commission has produced a circular on investment management capabilities
SPC strikes balance over employment contracts
An Opinion from the Supreme People’s Court over employment contracts has given welcome guidance on non-compete compensation amounts and deals with some of the most common labour dispute problems
Legislation roundup: Investment funds, insurance companies and credit collection
The General Office of the China Insurance Regulatory Commission has issued Tentative Provisions over securities investment by insurance institutions, while the State Council has issued Regulations for credit collection
January
Employment Contract Law: loopholes revealed
The amendments to China’s 2008 Employment Contract Law have closed some loopholes but simplistic definitions and vague wording have created new ones. Questions also remain over how aggressively the new Law will be enforced
Legislation roundup: SPC labour Interpretation and CSRC Guidelines for listed companies
The Supreme People’s Court has issued an Interpretation on criminal cases over remuneration, while the China Securities Regulatory Commission has produced Guidelines on the use of proceeds raised by listed companies
Private funds finally given regulatory system
Fund management companies in China used to face a restrictive investment regime, especially as legislation did not cover privately raised funds. Amendments to the Securities Investment Funds Law have opened up the process
Creating value for the business: Ericsson in-house interview
Tom Nygren, vice president and general counsel of Ericsson's northeast Asia region including China, talks to David Tring about the challenges of operating R&D centres in China, adding value to the business and the qualities he looks for when working with external counsel
Interview: An entrepreneur’s guide to licensing
Shanghai entrepreneur Sun Jian has over 20 years’ experience in cartoon licensing. He shares his experiences on tackling infringement and trademark squatters with Eve Yao
Legislation roundup: Foreign-related civil relationships, protecting online information and CSRC guidelines
The SPC issued an Interpretation on foreign-related civil relationships stating that when public interest is involved, cases will be governed by PRC mandatory provisions. The NPC Standing Committee has passed a Decision limiting how information can be sent to individuals
NDRC cracks down on anti-competitive behaviour
The landmark fine imposed on international LCD manufacturers shows China’s changing attitude to anti-competitive behaviour
2012 Review: Employment Law - Exit-entry Law, female workers and social insurance
For the first time, the Standing Committee produced a unified immigration law, which encourages foreign talent to work in China. Social insurance schemes also became more attractive as international agreements were signed, putting an end to double contributions
Legislation roundup: Employment Contract Law and Securities Investment Funds Law revised
The Standing Committee has promulgated the long-awaited Employment Contract Law, which strictly regulates labour dispatch workers. The Committee also promulgated the Securities Investment Funds Law, which now regulates private equity funds
2012 Review: Contract Law – new interpretation brings clarity
An Interpretation from the Supreme People’s Court brought clarity over purchase and sale agreements, while Apple’s trademark dispute reinforced that contracts are not always upheld before Chinese courts
2012 Review: Dispute Resolution - all eyes on CIETAC
All eyes were on the China International Economic and Trade Arbitration Commission (CIETAC) in 2012 as two sub-commissions broke away with the Commission’s new Arbitration Rules as one of the contributing reasons for the split
2012 Review: Capital Markets – market reforms, SME boards and shareholder fundraising
The China Securities and Regulatory Commission (CSRC) rolled out a series of reforms in 2012 that showed that its commitment to opening up the country’s capital markets remains strong
2012 Review: IP – reforms, famous trademarks, top cases and patent marking
The Trademark, Copyright and Patent Laws were all up for review in 2012, which shows China’s commitment to strengthening IP rights. But are the changes enough to protect businesses and what can IP practitioners expect for the year ahead?