Latham & Watkins LLP (LexBlog China)

The draft New Measure aims to enhance the environmental integrity of China’s carbon market by introducing new requirements for project registration and credit issuance. By Paul A. Davies, Jean-Philippe Brisson, Michael Dreibelbis, and Qingyi Pan China is preparing to relaunch its carbon credits program, the Chinese Certified Emission Reduction (CCER) Scheme, after suspending the program...

The move follows a number of similar standards that regulators and governments across the globe have proposed. By Paul A. Davies, Michael D. Green, and James Bee With effect from 1 June 2022, the Guidance for Enterprise ESG Disclosure (the Guidance), published by Beijing-based think tank China Enterprise Reform and Development Society (CERDS), is seeking to become the...

Under the new rules Chinese NPOs holding more than 1 million individuals’ personal information must apply for a cybersecurity review prior to listing abroad. By Hui Xu, Kieran Donovan, and Bianca Lee On February 15, 2022, the Cybersecurity Review Measures (2021) (CRM 2021, unofficial English text available here) took effect. CRM 2021 was promulgated on...

The bill seeks to extend certain provisions of the Foreign Corrupt Practices Act. By Erin Brown Jones, Paul A. Davies, Nathan H. Seltzer, and James Bee The U.S. Congress continues to take interest in implementing legislation to curb alleged human rights abuses in the supply chain in China and elsewhere, as evidenced by two new...

The expansion would include Shenzhen Stock Exchange and potentially European stock exchanges, and would permit overseas issuers to raise capital in China through CDR listings. By Chris Horton, James Inness, Anna Ngo, Terris Tang, Cathy Yeung, and Johannes Poon On 17 December 2021, the China Securities Regulatory Commission (CSRC) launched a consultation that proposes a...

The SBTi’s standard aims to clarify the target for net zero emissions, whilst the Common Ground Taxonomy indicates China-EU cooperation on sustainable finance issues. By Paul A. Davies, Michael D. Green, and James Bee Last month, the Science Based Targets initiative (SBTi) launched its Net Zero Standard, which aims to provide a globally recognised, science-based...

The Personal Information Protection Law, or PIPL, imposes stringent obligations of a similar standard to the GDPR and will take effect on November 1, 2021. By Hui Xu, Kieran Donovan, and Bianca Lee On August 20, 2021, the Standing Committee of the National People’s Congress adopted the Personal Information Protection Law of the People’s Republic...

The regulations aim to protect the security of the CII and impose more compliance obligations in support of the Network Security Law. By Hui Xu and Kieran Donovan On July 30, 2021, the State Council of the People’s Republic of China (PRC) published the Security Protection Regulations on the Critical Information Infrastructure (the Regulations), which...

The start of trading represents a significant opportunity for businesses able to achieve meaningful reductions. By Paul A. Davies and R. Andrew Westgate Nearly four years after China’s national emissions trading scheme (ETS) was announced in late 2017, trading of emissions quotas officially commenced on July 16. The start of trading represents a significant step...

The Data Security Law will enhance an increasingly comprehensive legal framework for information and data security in the PRC. By Hui Xu and Kieran Donovan On June 10, 2021, the Standing Committee of China’s National People’s Congress passed the Data Security Law (DSL), which will come into effect on September 1, 2021. The primary purpose of...

The People’s Bank of China announced a collaboration with the European Union to adopt a common taxonomy for green investments. By Paul A. Davies, Nicola Higgs, and Edward R. Kempson On 21 March 2021, the People’s Bank of China (PBC) announced that China is working with the European Union to adopt a common green taxonomy...

New trade arrangement incentivizes power operators to be more energy-efficient. By Paul A. Davies, R. Andrew Westgate, Qingyi Pan, and Jacqueline J. Yap On January 1, 2021, the long-awaited China Emissions Trading Scheme (ETS) commenced operation, with 2,225 coal-fired power plants participating. Under this new ETS, China’s power operators will have to buy emissions permits...

The Chinese Communist Party’s policy plans include an increased focus on climate change and a more open trade environment. By Paul Davies, Ethan Prall and Andrew Westgate The Central Committee, the top-level authority of the Chinese Communist Party (CCP), recently concluded its Fifth Plenary Session and created China’s 14th Five Year Plan (the Plan). The...

Shijiazhuang Intermediate People’s Court declares arbitration agreement providing for ICC Rules arbitration seated in China invalid. By Ing Loong Yang, Oliver Browne, and Isuru Devendra In a dispute between Hebei Zhongxing Automobile Manufacturing Co., Ltd. (HZAM), a Chinese company, and Automotive Gate FZCO (FZCO), a UAE company, the Shijiazhuang Intermediate People’s Court declared invalid two..

President Xi Jinping promises to reduce carbon emissions in speech before the UN General Assembly. By Paul A. Davies, Michael D. Green, R. Andrew Westgate, and Jacqueline J. Yap On 22 September 2020, during a speech before the UN General Assembly, President Xi Jinping announced China’s commitment to become carbon neutral by 2060 and reaffirmed...

The proposed Data Security Law has a broad jurisdictional scope and will expand the PRC’s regulatory framework for information and data. By Hui Xu, Gail E. Crawford, Jennifer C. Archie, Kieran Donovan, and Aster Y. Lin On July 3, 2020, the Standing Committee of the National People’s Congress of the People’s Republic of China (PRC)...

The proposal signals continued convergence of international standards as the green bond market further matures. By Paul Davies, Michael Green, and Aaron Franklin On 29 May 2020, Chinese regulators published a draft of their 2020 revision to the Green Bond-supported Project Catalogue (Green Project Catalogue) for comments. The Green Project Catalogue comprises a list of...

MEE declares full steam ahead on China’s environmental initiatives, including an NGDF, private sector finance, Yangtze River conservation, and the social credit system. By Paul A. Davies and Zoe Liu Xu Bijiu, director general of the general office of China’s Ministry of Ecology and Environment (MEE), has given the clearest signal to date that China’s...

SFC outlines new regulatory framework for virtual asset trading platforms, HKMA highlights recent FinTech initiatives, and PBOC discusses China’s forthcoming central bank digital currency. By Simon Hawkins and Kenneth Y.F. Hui The fourth annual Hong Kong FinTech Week conference kicked off with a major announcement from Mr. Ashley Alder, Chief Executive Officer of the Securities...

The launch of the International Platform on Sustainable Finance indicates an increased focus on a globalized approach to coordinating sustainable finance. By Paul Davies and Michael D. Green On October 18, 2019, the EU, China, India, and five other countries combined to launch the International Platform on Sustainable Finance (IPSF). Acknowledging the role that private...

China’s PCPPIC protects children’s personal information in much the same way as COPPA and the GDPR, but with a few differences. By Wei-Chun (Lex) Kuo, Weina (Grace) Gao, and Cheng-Ling Chen On August 22, 2019, the Cyberspace Administration of China (CAC) released a new data privacy regulation related to children, the Provisions on Cyber Protection...

MEE Opinions aim to clarify application of laws, expand the scope of illegal behaviour, and introduce new administrative penalties. By Paul A. Davies and R. Andrew Westgate The Department of Laws, Regulations, and Standards of China’s Ministry of Ecology and Environment (MEE) recently issued a notice of Public Consultation for the Opinions on Several Issues...

China continues to implement an IT-based big data system of market regulation that rewards and punishes individuals and enterprises. By Paul A. Davies and R. Andrew Westgate China is currently implementing an innovative approach to monitoring, rating, and regulating the behaviour of market participants through a new “social credit system” (SCS) set forth in the...

The Green Industry Guidance Catalogue attempts to provide consistent nationwide guidelines for green industries and projects. By Paul A. Davies and R. Andrew Westgate Background On 6 March 2019, seven Chinese regulatory agencies issued the Green Industry Guidance Catalogue (the Catalogue) listing “green industries” that are eligible for funding with green bonds. The seven agencies...

Reports suggest that China’s promising focus on environmental regulation may be slowing amid an economic downturn. By Paul A. Davies and Andrew Westgate Background At the 2014 National People’s Congress, Chinese Premier Li Keqiang’s rhetoric adopting an “iron fist” approach in a “war against pollution” represented a stunning volte-face from China’s relaxed environmental oversight and...

The framework represents China’s first comprehensive regulation of environmental risks from chemical substances. By Paul A. Davies and R. Andrew Westgate The Chinese Ministry of Ecology and Environment’s (MEE’s) draft Regulation on Environmental Risk Assessment and Control of Chemical Substances (Regulation) is likely to have broad implications for companies that manufacture, process, import, or...

China’s MEE is seeking comment on new chemical regulation framework, which includes a comprehensive environmental risk assessment. Paul A. Davies, Ethan Prall, and R. Andrew Westgate In January 2019, China’s Ministry of Ecology and Environment (MEE) issued a draft Regulation on Environmental Risk Assessment, and Control of Chemical Substances (the Chemical Substances Regulation or CSR)...

By Paul Davies and Catherine Campbell In recent years, China has taken significant steps in developing its environmental policy. In 2014 China’s Premier Li Keqiang declared a “war on pollution”, which began in earnest in 2017. Since then, regulators have been more proactive in enforcing environmental regulations. Factory closures have become a key part of...

The new department will assume broad oversight responsibilities as part of a broader government restructuring. By Paul A. Davies and R. Andrew Westgate China’s Ministry of Emergency Management (MEM) has announced the establishment of a new department responsible for the safety, supervision, and management of hazardous chemicals. The MEM replaced the former State Administration of...

The proposed initiative will allow the provision of clean energy on a global scale by 2050. By Paul A. Davies and R. Andrew Westgate The Global Energy Interconnection (GEI) initiative, originally developed by Liu Zhenya, the chairman of the Chinese State Grid Corporation, is dedicated to promoting global energy interconnections in a sustainable manner. The...