China Law & Practice

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Tentative Provisions for the Implementation of Asset or Business Divestitures of Concentrations of Business Operators
关于实施经营者集中资产或业务剥离的暂行规定
Mofcom lays down specific rules for the divestiture remedy for anti-monopoly restrictions.

Circular on Issues Concerning the Administration of the Provision of Security to Foreign Parties by Organisations in China
关于境内机构对外担保管理问题的通知
The provision of security to foreign parties for financing purposes by banks in China shall be subject to balance control, and the provision of security to foreign parties by non-bank financial institutions and enterprises shall mainly be subject to approval on a case by case basis.

Circular on Issues Relevant to Foreign Exchange Control in Connection with Overseas Direct Investment by Banks in China
关于境内银行境外直接投资外汇管理有关问题的通知
The Circular specifies the procedures for foreign exchange registration, its amendment and cancellation, and conversion in connection with overseas direct investments of banks in China.

Supplementary Circular on Issues Relevant to the «Measures for the Administration of the Treatment for Which Non-tax-residents are Eligible Under Tax Agreements (Trial Implementation)»
关于《非居民享受税收协定待遇管理办法(试行)》有关问题的补充通知
Procedural clarification made for preferential tax treatment for non-tax-residents.

Features

Break it up: Mofcom's new rules on divestment
The competition regulator has released new legislation clarifying the divestiture process that occurs as part of merger regime enforcement, however there are concerns relating to the publicity of timeframes and the amount of discretion the government has in setting the terms of a divestment

Relaxing foreign exchange controls
As the foreign exchange regulator further releases its grip on controlling the provision of Foreign security in general, foreign-invested enterprises must bid adieu to the favourable treatment they once enjoyed

Regulating risk management
China’s insurance watchdog has fine-tuned its measures for managing the reinsurance market, and they reflect the regulator’s new appetite for being kept up-to-date and informed

Keeping an eye on product liability
The two-month old PRC Tort Liability Law increases foreign business’ potential exposure to product liability claims generated from the Chinese market

Drafting for disputes
With the re-emergence of Sino-foreign joint ventures, lawyers must draft contracts that better position investors in anticipation of disputes with partners

Winding up a business in China
Three insolvency specialists share their insights on the best routes to take if a company has gone bankrupt in China.

Raising a glass to the crème de la crème

Latest News

Mini-QFII products will be subject to Hong Kong law
Yuan-denominated funds to channel renminbi back onshore

Partners advised for newly-opened sector investment
New notice promotes private investment in certain industries

Know your bank-trust products before investment
Banking regulator stops sale of bank-trust wealth management products

Agreement should pave way for more renminbi investment opportunities
Restrictions lifted on renminbi clearing business

Be vigilant about irrelevant costs in contracts and documentation
State Council set to regulate prices on monopolised goods and services

Level the playing field by transferring IP onshore
China offers more support to attract foreign R&D centres to set up

To manage risk, insurers advised to take multi-pronged approach
Insurance regulator aims to develop discipline of risk management and mitigation

First successful out-of-court Chinese high yield restructuring completed

Legislation Digest

China Banking Regulatory Commission, Circular on Matters Relevant to Regulation of the Cooperation Between Banks and Trust Companies on Wealth Management Business
中国银行业监督管理委员会关于规范银信理财合作业务有关事项的通知
Co-wealth management business between banks and trust companies now being controlled.

Ministry of Commerce, Tentative Provisions for the Implementation of Asset or Business Divestitures of Concentrations of Business Operators
商务部关于实施经营者集中资产或业务剥离的暂行规定
Mofcom lays down specific rules for the divestiture remedy for anti-monopoly restrictions.

State Administration of Foreign Exchange, Circular on Issues Concerning the Administration of the Provision of Security to Foreign Parties by Organisations in China
国家外汇管理局关于境内机构对外担保管理问题的通知
Relaxation on foreign security benefits outbound investment.

State Administration of Foreign Exchange, Circular on Issues Relevant to Foreign Exchange Control in Connection with Overseas Direct Investment of Banks in China
国家外汇管理局关于境内银行境外直接投资外汇管理有关问题的通知
Banks included in the regulation of overseas direct investment.

China Insurance Regulatory Commission, Provisions for the Administration of the Reinsurance Business
中国保险监督管理委员会再保险业务管理规定
Policy to level investment field for foreign insurers.

China Insurance Regulatory Commission, Circular on the Engagement in Interest Rate Swaps by Insurance Institutions
中国保险监督管理委员会关于保险机构开展利率互换业务的通知
All insurance institutions allowed to conduct interest rate swaps.

China Insurance Regulatory Commission, Basic Guidelines for Internal Controls of Insurance Companies
中国银行业监督管理委员会保险公司内部控制基本准则
Independent third parties may be appointed to evaluate internal controls of insurance companies.

State Administration of Taxation, Supplementary Circular on Issues Relevant to the «Measures for the Administration of the Treatment for Which Non-tax-residents are Eligible Under Tax Agreements (Trial Implementation)»
国家税务总局关于《非居民享受税收协定待遇管理办法(试行)》有关问题的补充通知
Procedural clarification made for preferential tax treatment for non-tax-residents.

State Administration of Taxation, Notice on Income Tax Treatment Issues Concerning Losses from Enterprise Equity Investment
国家税务总局关于企业股权投资损失所得税处理问题的公告
Notice stipulating one-off deduction of equity investment losses.

State Administration of Taxation, Circular on Business Tax Issues Concerning International Telecommunications Services
国家税务总局关于国际电信业务营业税问题的通知
Circular issued to clarify telecom business tax issues.

Shenzhen City, Several Provisions on Promoting the Development of the Equity Investment Fund Sector
深圳关于促进股权投资基金业发展的若干规定
Shenzhen encourages private equity investment.

Other Recent Legislation for This Month

China Law & Practice Events

Asia-Pacific In-house Counsel Summit 2012
21 & 22 March 2012
Location: Hong Kong

ALP India FDI Forum 2012
03 May 2012
Location: Singapore