K&L Gates LLP (JD Supra China)

This article reveals the mechanics of a growing pilot program for registration of Class II and Class III medical devices to be contract manufactured in China that has gained significant recognition across China over the past few years, and explores the implications that such a program has over Chinese and foreign manufacturers and research centers, particularly, the implications to a foreign...

Background - The Chinese government’s approval of the Sinopharm and Sinovac vaccines have paved the way for the general public in China to get vaccinated. As a result, some companies are questioning the benefits and legality of requiring employees to be vaccinated with one of the approved vaccines before returning to their China-based offices or facilities.

The PRC Civil Code and the Supreme Court Interpretation on Application of the Relevant Security Provisions in the Civil Code (the Interpretation) that came into effect on 1 January 2021 have both altered the position of whether a security agreement can remain valid when the underlying primary agreement is invalid.

On 19 December 2020, the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) have jointly issued the Measures for the Security Review of Foreign Investment (Measures), with effect from 18 January 2021. The Measures provide clarity on Article 35 of the Foreign Investment Law and Article 40 of its Implementing Regulations which have been in force since 1 January 2

On October 17, 2020, the Standing Committee of the National People’s Congress of China passed and adopted the Export Control Law of China (the ECL), which took effect on December 1, 2020.

The full text of the Law of the People’s Republic of China on Personal Information Protection (Draft) (the Draft) was released on 21 October 2020 for public comments by 19 November 2020.

The medical device industry in China is highly-regulated and China adopts a “pre-market” recordation or approval system for medical devices. Before any medical device can be manufactured, imported, distributed, or sold in China, one must first go through certain filing or registration procedures with the National Medical Products Administration of the PRC (the NMPA). At the same time, gaining...

On 20 April 2020, the Anti-Monopoly Bureau of the State Administration for Market Regulation of China (SAMR) made a simplified pre-merger filing announcement on its website of its acceptance of a pre-merger control filing for the proposed business concentration by way of a joint venture between Shanghai Mingcha Zhegang Management Consulting Co., Ltd. (Mingcha) and Huansheng Information Technology

This is the second in our series on supply chains and customs risks and compliance. As mentioned in the earlier alert, there are signs that China has begun export activities, although no one seems to know to what extent the “factory of the world” is functioning.

The Chinese government’s decision to close factories in January 2020 was completely unexpected and took most companies by surprise. China, after all, was considered “the factory of the world,” and the widespread business closures created a lot of confusion and anxiety for companies without alternative supply chains. With the rapid spread (and fear) of COVID-19 globally, business and public life...

The coronavirus disease 2019 (“COVID-19”) outbreak that started in December 2019 has stirred novel responses globally, including Chinese cities that are homes to millions of people being sealed off before the Chinese New Year of 2020 and the U.S. government imposing mandatory quarantine restrictions, reported to be the first since the smallpox outbreak in the 1960s.

The Foreign Investment Law of China (the FIL), together with its Implementation Rules and related People’s Republic of China (PRC) Supreme People’s Court Interpretation, came into effect on January 1, 2020.

Before the COVID-19 coronavirus outbreak, Asian spot liquefied natural gas (LNG) prices were already at historic lows due to a warm winter and oversupply. Now, with multiple Chinese cities under quarantine, drops in local demand in China have resulted in further price declines, pushing prices to record lows.

In August 2019, federal prosecutors indicted Feng Tao, a Chinese scientist conducting research at the University of Kansas (“KU”), on fraud charges. The indictment of a Chinese national by federal prosecutors and the underlying facts may not appear notable at first glance.

The United States has its Indo-Pacific Strategy, reflecting a desire to hedge against China’s rise and safeguard U.S. leadership in the region. Now, the Association of Southeast Asian Nations (“ASEAN”) has taken on the challenge of advocating for its own vision for the development of an inclusive regional architecture for the Indo-Pacific.

A combination of recent regulatory developments in the People’s Republic of China (“PRC”) has opened up the prospect that foreign advisers may now have a reliable route to accessing indirectly a potentially huge pool of PRC private pension plan money without necessarily having to be based onshore in the PRC.

We have been closely following the case of Yutai v. Hainan Provincial Price Bureau, the first dispute involving the legality of a resale price maintenance program brought by China’s antitrust enforcement agency, the State Administration of Market Regulation (“SAMR”) (formerly the “National Development and Reform Commission”).

Based on recently-updated Review Guidelines of Fund of Funds issued by the China State Securities Regulatory Commission (“CSRC”) to members of the People’s Republic of China (“PRC”) asset management community, we understand that PRC fund of funds may now invest in Hong Kong authorized funds that are eligible to be sold in the PRC via the Mutual Fund Recognition Scheme between the PRC and Hong...

Today, product manufacturers doing business in China face uncertainty with regard to resale price maintenance (“RPM”). For more than five years, the National Development and Reform Commission (“NDRC”) and Chinese courts have taken divergent approaches to RPM — the NDRC employs a “per se” prohibition while Chinese courts have adopted a more moderate “rule of reason” approach.

With the success of the Shanghai-Hong Kong Stock Connect (“Shanghai Connect”) and Shenzhen-Hong Kong Stock Connect (“Shenzhen Connect”) (together, the “Stock Connects”) and the Bond Connect (together with the Stock Connects, the “Connects”) and the soon-to-be-launched ETF Connect and the ease with which it has enabled non-People’s Republic of China (“PRC”) investors to access the PRC onshore...

This upcoming November, the Ministry of Commerce of the People’s Republic of China and the Shanghai Municipal People’s Government will co-host China’s first-ever International Import Expo (the “Expo”).

At first blush, Article 14 of the 2007 Anti-Monopoly Law of the People’s Republic of China (“AML”) appears straightforward — resale price maintenance (“RPM”) is strictly prohibited in China. Not so fast.

Under PRC Labor Contract Law, a labor contract will usually contain non-competition provisions. Where it does not, an employer and employee may enter into a separate non-competition or confidentiality agreement. Typically, non-compete obligations prohibit an employee from competing with the employer for up to two (2) years following expiry or termination of the labor contract.

Product manufacturers are always looking to increase revenue by tapping into new markets. In recent years, they’ve begun to focus their efforts on driving sales in Asia.

It is a common belief in the fashion industry that China remains the "wild west" for intellectual property infringements and for enforcing intellectual property rights. Historically, even large and well-known international brands have experienced difficulty in protecting their trade marks through Court proceedings in China and, even when successful, damages awards could be quite low. ...

For foreign investors, in addition to commercial opportunities, market entrance and policy environment, a significant aspect that drives their business success in China is human resources. Local employees of foreign-invested enterprises are often delegated to run and execute the day to day business, however, their relationship with the investors can sometimes result in a prolonged dispute,...

At present, the China bond market is the third largest in the world after the USA and Japan. In order to further promote the China bond market, the People’s Bank of China (“PBC”) and the Hong Kong Monetary Authority (“HKMA”) announced on 2 July 2017 that, starting on 3 July 2017, being the first trading day after the 20th anniversary of the handover of Hong Kong, a trial operation of a bond...

On February 4, 2017, the Cyberspace Administration of China (“CAC”) issued its consultation draft measures for the security review of online products and services (“draft measures”), among the anxieties caused by the vagueness of multiple provisions in China’s Cyber Security Law (“Cyber Security Law”). Cyber Security Law was promulgated by the Standing Committee of the National People’s Congress

Recently, the Asset Management Association of China (“AMAC”) issued a Q&A on Private Securities Fund Registration (No.10) (“Q&A No.10”), under which foreign asset managers are allowed to form a wholly foreign-owned enterprise (“WFOE”) or Sino-foreign equity joint venture to provide investment management services to qualified domestic investors, including investments in securities that are traded...

On 30 June 2016, the Asset Management Association of China ("AMAC"), a self-regulatory organization supervised by the China Securities Regulatory Commission ("CSRC"), promulgated the "Q&A regarding the Registration and Filing of Private Funds (No. 10)" (??????????????(?)) ("Q&A No.10"), which provides that a private securities investment fund management company ("Private Securities FMC")...