Retail Trade and Distribution

As franchising increases in China, the Ministry of Commerce has released new measures for greater disclosures, including more information when signing agreements.

Record filing may be done locally for franchises that operate in more than one province.

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.

Thresholds for levy of value-added tax raised.

China's consumer code is due for an update. A number of innovations to the current law are being discussed for an upcoming draft, including the right of revocation, data protection and class actions

The revised Rules raise the thresholds for the levy of value-added tax.

Design can still be protected under Anti-unfair Competition Law after the patent expires.

The 2010 Report selected 43 issues with broad guiding significance from 36 cases including: determination of the equivalence of technical features in a patent infringement dispute and protection of a design under the Anti-unfair Competition Law after the patent expires.

Two specialists provide advice on what issues to be aware of and what precautions to take when considering sourcing from the PRC.