China Law & Practice

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Foreign Investment Industrial Guidance Catalogue (Amended in 2011)
外商投资产业指导目录(2011年修订)
The Catalogue has been revised since the 2007 revision. Venture investment enterprises and intellectual property services are added to the encouraged category while the manufacture of assembled automobiles is removed from the category.

Opinions on Duly Registering Company Mergers and Divisions so as to Support Enterprise Consolidation and Re-organisation
关于做好公司合并分立登记支持企业兼并重组的意见
Companies may simultaneously carry out de-registration, establishment registration or amendment of registration for a merger or division.

Tentative Measures for Investigating and Handling Concentrations of Business Operators that Fail to Report in Accordance with the Law
未依法申报经营者集中调查处理暂行办法
Mofcom sets out measures to curb unreported concentrations of business operators.

Circular on Further Improving Relevant Administrative Measures on Foreign-invested Companies with an Investment Nature
关于进一步完善外商投资性公司有关管理措施的通知
Lawful renminbi income may be used directly for domestic investment.

Measures for the Administration of Record Filings in Connection with Commercial Franchising (Revised)
商业特许经营备案管理办法 (修订)
Record filing may be done locally for franchises that operate in more than one province.

Features

Directing growth
A close look at China’s newly-updated foreign investment catalogue reveals trends that reinforce the government’s policy objectives. Numerous new additions encourage investment in seven strategic emerging industries, while the catalogue scales back on encouraging investment in lower technology and lower value-added sectors.

Restructuring made simpler
New regulatory opinions address common issues faced by Chinese companies when restructuring. They may also make things easier for foreign-invested companies

More muscle
A new regulation shows China’s competition regulator is serious about proactive enforcement of the country’s merger-control regime

Path made smooth again
A new regulation from the foreign exchange regulator has returned the right of foreign-invested holding companies to re-invest their dividends in China

Swap shop
New national regulations allow debt-for-equity swaps to be registered with AIC authorities. Their impact will be widespread

A question of strategy
There is more to dispute resolution in China than meets the eye. By making strategic choices, foreign businesses can maximise their chances of winning anti-monopoly and IP disputes

News Analysis

New fund rules may lead to structural changes
Guaranteed returns expressly prohibited

RQFII pilot programme launched
Participants subject to strict supervision and disclosure requirements

New rules may be in the works for corporate dim sum bond issuers
Clarity on repatriation of proceeds

News In Brief

Legislation Digest

Ministry of Commerce, Tentative Measures for Investigating and Handling Concentrations of Business Operators that Fail to Report in Accordance with the Law
商务部未依法申报经营者集中调查处理暂行办法
Mofcom sets out measures to curb unreported concentrations of business operators.

PRC Law on the Prevention and Treatment of Occupational Diseases (2011 Revision)
中华人民共和国职业病防治法 (2011年修正)
Law revised to expand the scope of occupational diseases.

Ministry of Commerce and State Administration of Foreign Exchange, Circular on Further Improving Relevant Administrative Measures on Foreign-invested Companies with an Investment Nature
商务部、外汇局关于进一步完善外商投资性公司有关管理措施的通知
Lawful renminbi income may be used directly for domestic investment.

State Administration for Industry and Commerce, Opinions on Duly Registering Company Mergers and Divisions so as to Support Enterprise Consolidation and Re-organisation
国家工商行政管理总局关于做好公司合并分立登记支持企业兼并重组的意见
Companies may simultaneously carry out de-registration, establishment registration or amendment of registration for a merger or division.

Ministry of Commerce, Measures for the Administration of Record Filings in Connection with Commercial Franchising (Revised)
商务部商业特许经营备案管理办法 (修订)
Record filing may be done locally for franchises that operate in more than one province.

Ministry of Finance and State Administration of Taxation, Circular on the Policy for Business Tax on Transfers of Natural Resource Use Rights
财政部、国家税务总局关于转让自然资源使用权营业税政策的通知
Business tax is levied on transfer of natural resource use rights.

State Administration of Taxation, Announcement on Tax Issues Relevant to the Sale of Fixed Assets Attached to Land or Immovable Property at the time of Assignment of Land Use Rights or Sale of Immovable Property by Taxpayers
国家税务总局关于纳税人转让土地使用权或者销售不动产同时一并销售附着于土地或者不动产上的固定资产有关税收问题的公告
SAT clarifies the tax issue on land assignment with an attachment.

Fujian Province, Tentative Measures for the Administration of Equity Investment Enterprises
福建省股权投资企业管理暂行办法
Fujian tightens administration on fund raising in the name of equity investment enterprises.

Shenzhen Stock Exchange, Measures on the Record Filing of Independent Directors (2011 Revision)
深圳证券交易所独立董事备案办法 (2011年修订)
Shenzhen Stock Exchange gives definite qualification requirements for independent directors.

Shanghai Municipality, Implementing Opinions on the Thorough Implementation of the «State Council, Several Opinions on Further Improving the Work on the Use of Foreign Investment»
上海市贯彻《国务院关于进一步做好利用外资工作的若干意见》的实施意见
Shanghai encourages the use of overseas renminbi by FIEs for capital contribution.

Shanghai Stock Exchange, Tentative Measures for the Administration of the Suitability of Investors of the Bond Market Shanghai Stock Exchange, Tentative Measures for the Administration of the Suitability of Investors of the Bond Market
上海证券交易所债券市场投资者适当性管理暂行办法
Shanghai Stock Exchange sets up a system of suitability of investors for the bond market.

Other Recent Lesgislation

China Law & Practice Events

IFLR India Outbound Investment Forum 2012
05 July 2012
Location: Mumbai