Foreign companies are contemplating how to restructure their loss-making or low-profit China operations. There are several good options available, and several unwise choices, too. By Ghislain de Mareuil and Julie Tong, DLA Piper, Shanghai.
New measures formalise and streamline the process for making capital contributions using equity, although they may raise approval issues for foreign-invested enterprises.
The US has complained to the World Trade Organisation that China's IP rights protection and enforcement legislation violates international agreements. A WTO panel has presented its report and both sides are claiming victory. By Jan Bohanes and Adrian Emch, Sidley Austin, Geneva and Beijing.
China has revised its Patent Law for the third time, and issued the first proposed draft amendments to the Implementing Regulations. There are key changes relating to invention patents and utility models. These should better align the Law with international standards, but there will be notable implications for foreign-invested companies. By Ronald Chu and Annie Tsoi, Deacons.
Employers in China are facing more labour arbitrations as employees take advantage of free tribunals and increased rights. Foreign companies are at most risk. They must keep good documentation and pay close attention to balancing internal rules and local law.
Trademark rights owners in China are increasingly demanding action against keyword advertising programmes used by well-known internet search engines. Recent court decisions in Beijing, Shanghai and Guangzhou are helpful but highlight regional disparities. By Luckie Hong, Jones Day.
Regulations in Chinese law cover both commercial bribery and bribery involving state employees. The law sets out criminal and administrative liabilities for business operators, and has some unique characteristics. Counsel should establish clear guidelines to help mitigate the risks of liability. By Alice Peng, Jun He Law Offices.
Foreign investors are abandoning their Chinese ventures prompting the issuance of new government guidelines. These raise the possibility of the use of cross-border legal and political action to force absconders to face liability in China. Although the implications are not completely clear, foreign parties must take care when attempting to withdraw from the country. By Susan Finder, Winston & Strawn.