Retail Trade and Distribution

With the entrenchment of reciprocal US-China sanctions and export controls in the past year, counsel have helped clients enact fundamental changes to their approach to making deals, from contractual terms to due diligence

VIE overseas listings require government consent

Foreign investors are allowed to conduct social surveys

Live streamers may bear advertising liability

Ting Wu of Haiwen & Partners reviews the regulatory reforms taking place in China's life science and healthcare sector including legislation that has been released to encourage innovation and broaden market access to drugs, implementation of the patent linkage system, increasing antitrust enforcement pressure in the pharma sector, regulating medical devices, cosmetics and online hospitals.

Manufacturing and service industries further opens up to foreign investment but loophole allowing foreign investment in restricted sectors is plugged; food producers warn of major disruptions as all foodstuffs now subject to import regulation; and trial macroprudential policy guidelines provide key definitions and high-level guidance for managing systemic financial risks

Guo Yongmao of Haiwen & Partners discusses the various types of taxes under the PRC tax regime that new companies must consider when setting up a business in mainland China and highlights how tax impacts investors of a PRC company if they are foreign entities when considering dividends distribution, interest payment and transfer pricing

CSRC permits Chinese companies to list overseas with VIE structure after filing; SEC updates disclosure guidance for China-based companies to highlight VIE risks; and Xinjiang forced labor ban signed into law

Both multinationals and domestic companies have already enacted changes to their internal policies and operations in response to China's new data and personal information processing requirements, from human resources management to customer privacy authorizations