JD Supra China

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Latest documents

• Asia IP & TMT: Quarterly Review - First Quarter 2024

  The rapid development of artificial intelligence (“AI”), together with the increased number of commercial use cases made possible by generative AI (“Gen AI”), have brought about a wave of new opportunities for businesses as well as new legal challenges, particularly as governments have struggled to apply pre-existing legal frameworks to these new technological developments.

• China Releases Carbon Allowance Trading Regulations

  The regulations aim to provide a legal framework for China’s carbon allowance trading market by strengthening requirements and designating responsibilities. On January 25, 2024, Chinese Premier Li Qiang signed a decree of the State Council, introducing the Regulations on the Administration of Carbon Allowance Trading (the Regulations). Effective from May 1, 2024, the Regulations provide a legal framework for the operation of China’s emissions trading scheme (ETS), which initially commenced operations in July 2021 under ministry-level management rules without a higher-level legal foundation. The Regulations fill in the regulatory vacuum that has existed since 2021.

• China and Hong Kong Publish Standard Contract for Transferring Personal Information Within GBA Area

  China’s CAC and Hong Kong’s ITIB jointly released GBA SCCs, which may be adopted to transfer personal information between entities within the GBA. On December 13, 2023, the People’s Republic of China’s (PRC’s) Cyberspace Administration of China (CAC) and Hong Kong’s Innovation, Technology and Industry Bureau of Hong Kong (ITIB) jointly formulated and released the Standard Contract for the Cross-boundary Flow of Personal Information within the GBA (GBA SCCs) and its Implementation Guidelines (Implementation Guidelines), both of which became effective immediately.

• China Adopts New Merger Control Filing Thresholds

  On January 26, 2024, the State Council of China adopted new merger filing thresholds by promulgating the amended Provisions of the State Council on Thresholds for Prior Notification of Concentration of Undertakings (the Amended Thresholds). The Amended Thresholds took effect upon release and mark the first major revision to the State Administration for Market Regulation's (SAMR’s) notification thresholds since 2008.

• Global Legal Insights: Bribery & Corruption 2024 - China

  China’s anti-corruption laws have been stringent for many years. On 1 January 1980, the Criminal Law of the People’s Republic of China (the “PRC Criminal Law”) containing the criminal offences of bribery and corruption came into effect, and later underwent a significant shift in 1997 with enhanced provisions on bribery and corruption offences. Further amendments to the PRC Criminal Law were enacted in 2015 and 2020 to update bribery and corruption provisions, respectively. Originally published by Global Legal Insights - January 2024.

• Establishing a Business Entity in China (Updated)

  In general, foreign funds are not freely movable into China. There is a long history of exercising comprehensive control over foreign investment since China opened its door in the early 1980s. As the economy continues to grow, China has been gradually loosening the substantive and procedural requirements on foreign investments and carefully testing the water for national treatment for foreign investors in the past decade. On January 1, 2020, the Foreign Investment Law came into force, which marked a new height of the Chinese government’s supportive attitude towards foreign investment. It abolished the pre-approval scheme for foreign investments in existence for over forty years and officially effected a regime of “national treatment plus negative list” for foreign investment.

• Hong Kong and PRC Restructuring & Special Situations 2023 year in review - Key insolvency decisions in Hong Kong and the People’s Republic of China

  The past twelve months have been a time of continuing significant developments in courtled corporate rescues in Hong Kong, all within the flexible confines of the common law and in the continued absence of a statutory corporate rescue regime. The year saw mixed messages for holders of offshore bonds issued by Chinese issuers hoping to enforce on the mainland, good news for lenders benefitting from “hybrid” jurisdiction clauses and a degree of uncertainty being seen in the Hong Kong Court of First Instance as to whether an agreement to arbitrate should always take precedence over a winding up petition, particularly where cross-claims are involved.

• PRC’s New Foreign State Law Marks Shift From Absolute to Restrictive State Immunity

  Foreign states are no longer immune from suit or execution in the PRC (including Hong Kong and Macau) in respect of their commercial activities. The Standing Committee of the National People’s Congress (NPCSC) has passed the Foreign State Immunity Law (FSIL), which is intended to “develop the foreign state immunity legal regime of the PRC and provide legal basis for the PRC courts to hear civil cases involving foreign states and their assets,” according to the Ministry of Foreign Affairs of the PRC. Please see full Alert below for more information.

• China Amends Foreign-Related Civil Procedure Rules

  On September 1, 2023, the Standing Committee of the National People’s Congress (NPCSC) of the PRC adopted the amendments to the Civil Procedure Law of the People’s Republic of China (the Amended CPL). The amendments particularly focus on the section of foreign-related civil procedure, with amendments to seven existing articles and additions of 11 new articles. The newly adopted changes cover the PRC courts’ jurisdiction over foreign-related cases, parallel proceedings, service on foreign parties, overseas evidence collection, and recognition and enforcement of foreign judgments and arbitral awards. Please see full Alert below for more information.

• China publishes its first guidance on merger control compliance

  The State Administration for Market Regulation (SAMR) issued Antitrust Compliance Guidelines for Concentrations of Undertakings (Guidelines) on 11 September 2023. It is the first time that SAMR has issued special compliance guidelines in the field of merger control. Please see full Publication below for more information.

Featured documents

• CHINA ALERT: Promulgation of New Tort Law in China 7/1/10

  In This Alert: *Punitive Damages *Privacy of Medical Records *Product Liability Lawsuits *Action Suggested Please see full alert below for more information....

• China Promulgates Specific Conflict Law Governing Foreign-Related Civil Relations

  The enactment of this new law is intended to upgrade and systematise the existing Chinese conflict laws, in order to help parties to international civil and commercial transactions choose the proper governing laws, and to facilitate the adjudication of international civil and commercial disputes by ...

• New Pilot Program for Shanghai-based RMB Funds – Missing Pieces Falling into Place

  In the latest regulatory development in the closely watched RMB partnership funds sector that has been taking shape over the past year, three Shanghai Municipal governmental agencies — the Shanghai Municipal Financial Service Office (“SFSO”), Shanghai Municipal Commission of Commerce (“Shanghai CoC”...

• The Move Away from Closed-List Arbitrator Appointments: Happy Ending or a Trend to Be Reversed?

  CIETAC’s Vice Chairman and Secretary General recently announced at a conference in London that CIETAC may soon permit parties to select arbitrators from outside the CIETAC list. As the CIETAC Rules currently allow parties to appoint off-list only if they have agreed to do so, this announcement...

• Conducting Clinical Trials in China Requires Compliance at Home and Abroad

  China has been home to more than 1,800 clinical trials of pharmaceuticals intended for U.S. use. With its large and growing English-speaking population, the country, along with India, is a foreign clinical trial destination poised to “eclipse all the others,” according to recent coverage in Vanity...

• China Implements New Laws in Foreign-Related Products Liability Cases

  In 2010, the People’s Republic of China (“PRC”) enacted two laws that together will substantially affect all civil litigation in China – and, in particular, product liability litigation regarding foreign entities. The Law of the Application of Law for Foreign-Related Civil Relations of the PRC (“the...

• MOFCOM and SAFE Announce Additional Rules on Foreign Invested Holding Companies

  On 8 December 2011, the Ministry of Commerce of China (“MOFCOM”) and the State Administration of Foreign Exchange (“SAFE”) promulgated the Notice on Further Improving Management Measures Concerning Foreign Invested Holding Companies (the “Notice”). A Foreign Invested Holding Company (“FIHC”)...

• Data Protection and Privacy in China

  China does not currently have a comprehensive legal framework to regulate the use and disclosure of personal data nor a national level law that delineates how a company can legally collect, process and retain data together with legal remedies for specific violations. The relevant rules are...

• China Corruption & White Collar Crimes Watch: China Strengthens Supervision Over Civil Servants

  In a June 2011 report issued by the People’s Bank of China (and as prepared by the China Academy of Social Sciences) the PRC government found 18,000 Party and government officials fled the country since 1990 with over US$120 billion in government funds missing. The leadership has had significant...

• Securitization in China: Recent Developments

  China has announced plans to launch a new pilot securitization program that will allow some Chinese commercial lenders to securitize financial assets. Recent news reports indicate that the trial securitization program will involve up to $7.9 billion of securitized assets. Eligible assets are likely ...