Pillsbury Winthrop Shaw Pittman LLP (JD Supra China)

Following the new Export Control Law of China that encourages all exporters to establish an internal compliance program, China’s Ministry of Commerce (MOFCOM) has published guidelines for the internal compliance programs of Chinese exporters. Chinese domestic companies and Chinese subsidiaries of multinational companies that engage in import and export are encouraged to establish internal...

The Blocking Statute provides the legal basis for refusing to recognize, implement, and comply with unjustified extraterritorial application of foreign legislations and sanctions that prohibit or restrict normal economic, trade, and related activities between Chinese Persons and Persons of other countries. A Chinese Person is required to report to MOFCOM any unjustified foreign legislation...

The new national security review system will target foreign investment in military sectors and investment that involves obtaining actual control of important agricultural products, natural energy, heavy equipment manufacturing, infrastructure, transportation services, cultural products and services, information technology and internet services, financial services, and key technologies. ...

The Encryption Export List is the first list of controlled items after the issuance and implementation of China’s new Export Control Law. Under the previous legal regime, China imposed export licensing requirements on the export of certain commercial encryption products generally without any detailed export control list. The Encryption Import List supersedes and replaces previous versions of...

On October 21, 2020, the Standing Committee of the National People’s Congress (NPC) of the People’s Republic of China (PRC) released the draft PIP Law for public comment. With the big data industry rapidly growing in China and concerns about possible leaks and improper use of private data collected by various authorities and companies, the Draft PIP Law is a significant step to address the long-h

The new law establishes a unified export control system. “Export” governed by the law includes not only the transfer of controlled items from within the territory of the PRC to outside of the PRC but also the provision of controlled items by any PRC citizens, legal person or non-legal person organizations to any foreign organizations and individuals (similar to the “deemed export” concept under...

Technologies relating to Generation III & IV nuclear reactors have been added to China’s newly updated Catalogue of Technologies Prohibited and Restricted from Export (the Catalogue). Export of such technology is subject to a technology export license, in addition to existing approval and licensing procedures applicable to export of nuclear items. While China has separate control lists for...

On September 19, 2020 (September 18, 2020 U.S. EDT), China’s Ministry of Commerce (MOFCOM) published the Provisions on the Unreliable Entity List (UEL Provisions), which took effect on the same date. On May 31, 2019, MOFCOM announced that the Chinese government would introduce an “Unreliable Entity List” regime, under which foreign entities or individuals that boycott or cut off supplies to...

PRC authorities release updated Catalogue of China’s Export Prohibited and Restricted Technologies (the Catalogue), the first overhaul of the guidelines in more than a decade. Based on the 2008 version of the Catalogue, the new updates involved 53 technology items: 9 prohibited or restricted items were deleted; 23 restricted items were added; the control points and technical parameters of 21...

This series of alerts focuses on practical issues relating to China’s new Foreign Investment Law, which came into effect at the beginning of 2020. A single new law now encompasses the three business forms that foreign investors typically utilize within the People’s Republic of China.

The third installment of a series of alerts focusing on practical issues relating to China’s new Foreign Investment Law. There are major differences in the requirements on corporate governance and decision-making mechanisms between the abolished EJV Law and the Company Law.

The second installment of a series of alerts focusing on practical issues relating to China’s new Foreign Investment Law. The two current models of foreign loans for Foreign Invested Enterprises reflect the Chinese government’s strict scrutiny and control over debts owed to overseas lenders by China-based FIEs.

The fourth installment of a series of alerts focusing on practical issues relating to China’s new Foreign Investment Law. China’s new Foreign Investment Law and its implementation regulations contain explicit provisions that prohibit Chinese authorities and officials from forcing technology transfer by implementing administrative measures.

The fifth and final installment of a series of alerts focusing on practical issues relating to China’s new Foreign Investment Law. Foreign investors seeking to exit from their existing foreign invested enterprises (FIEs) may consider three major options: (i) transfer of all of the foreign investor’s equity interest in the FIE; (ii) sales of all or part of the FIE’s assets followed by...

The PRC issues a 1,260-article, comprehensive Civil Code covering all aspects of civil and business life in China. It becomes effective on January 1, 2021. China has passed its first-ever Civil Code, which will come into effect on January 1, 2021. The new Civil Code is considered as an amalgamation of the existing civil and tort related laws and regulations as well as certain judicial...

On March 6, 2020, the State Administration of Market Regulation of the People’s Republic of China (PRC) and the Standardization Administration of the PRC published an updated version of the “Information security technology—Personal information security specifications” (New Specifications), which will take effect on October 1, 2020 and replace the currently effective version issued in 2017 (2017...

Despite a decline in new cases of the COVID-19 coronavirus transmitted within China, authorities are carefully screening international travelers and collecting personal information from them. Authorized Chinese government entities are allowed to collect personal information for the purpose of containing COVID-19, provided that they comply with certain principles and requirements, such as data...

As COVID-19’s impacts threaten to upend contractual relationships between parties doing business under Chinese law, it is critical to understand the legal landscape in China. - China’s statutory laws allow contracting parties to terminate a contract or excuse their performance of certain contractual obligations upon occurrence of a force majeure event or a material adverse change event. -

Amid stark slowdown in output growth and trade disputes with U.S., PRC authorities speed up issuance of legislation to encourage investment from abroad. Law affirms equal legal standing of foreign-backed enterprises and Chinese competitors.

The Trump Administration’s tariff wars may cause American companies to move operations offshore, with joint ventures in China one likely option. A joint venture with a Chinese partner can enable a company to respond nimbly to changes in the global trade environment.

No, the Committee on Foreign Investment in the United States has not put a halt to acquisitions of U.S. companies by China-based purchasers. Three recently cleared transactions illustrate that CFIUS is not standing in the way of deals without national security implications.

On June 28, 2017, the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) of the People’s Republic of China (China) promulgated the 7th updated version of the Catalogue of Industries for Foreign Investments (the 2017 Catalogue), which will come into effect on July 28, 2017.

On April 11, 2017, the Cyberspace Administration of the People’s Republic of China (CAC) released a draft of the Measures for the Security Assessment of Personal Information and Important Data to be Transmitted Abroad (Draft Measures) for public comment.

A 2016 judgment (the “Judgment”) made by the Supreme People’s Court of China (the “Supreme Court”) was believed by some scholars and practitioners to confirm judicial recognition of the VIE structure. We believe the Supreme Court did not go as far as that. On the contrary, the Judgment leaves behind some interesting uncertainties, which might further complicate discussions on the validity of the...

On February 22, 2017, draft amendments (the 2017 Draft Amendments) to the Anti-Unfair Competition Law (AUCL) of the People’s Republic of China (PRC) were submitted to the Standing Committee of the National People’s Congress for initial review. Compared with the revised draft for review of the AUCL which was released in 2016 by the Legal Affairs Office of the State Council (the 2016 Revised Draft),

In 2016 stabilizing the exchange rate of Chinese yuan (also known as RMB, the legal currency of China) was a critical challenge for Chinese government. Due to the recent staggering devaluation of RMB, the People’s Bank of China (PBOC) promulgated a series of policies and regulations aim to tighten and scrutinize capital outflow. Among these policies and regulations is the Notice on Further...

On November 7, 2016, the Standing Committee of the National People’s Congress (NPC) of the People’s Republic of China (PRC) passed the final Cybersecurity Law (CSL) after three rounds of review by the NPC since June 2015. China’s first law addressing the cybersecurity issue, the CSL’s promulgation marks China’s increasingly stricter administration and supervision of cyber space, and is a...

Under the current company registration procedures of the People’s Republic of China, before undertaking the approval and/or registration procedures for establishing a company, the investor(s) of a new company must first file a Name Pre-approval application with the company registration authority, the State Administration of Industry and Commerce (SAIC) or its local counterparts (AICs,). The AICs...

In order to implement the State Counsel’s decision issued on September 3, 2016 (State Counsel’s Decision), which simplifies the original substantive review and approval process (Approval System) to a new simple filing system (Filing System) for the establishment and any subsequent changes for eligible foreign invested enterprises (FIEs), the Ministry of Commerce (MOFCOM) issued the Interim...

As of October 1, 2016, the current substantial examination and approval process required by the approval authorities (Approval Authorities, i.e., the Ministry of Commerce (MOFCOM) or its local counterparts) for the establishment and subsequent changes of foreign invested enterprises (FIEs) will be simplified to a filing system, as long as the FIEs in question are not engaged in industries...