Monthly Archives: November 2015

What If Your Contracting Party Is PRC Government?

Not everyone in small business will have the opportunity to have a contract with the local government. However, this is rather common for foreign direct investment (“FDI”) with relatively large size to have a so-called “cooperation agreement” with the local PRC government.

Typical contractual provisions in this type of contract normally provide for the commitment of the local PRC government (“Government”), including without limitation:

Chinese Further Reform on Forex Capital Settlement in 2015

  As part of Chinese continuous efforts to facilitate inbound foreign direct investments, the PRC State Administration of Foreign Exchange (“SAFE”) promulgated the Circular on Reform of Management of Foreign Exchange Capital Settlement of Foreign Invested Enterprises (“Circular 19”) on 30 March, 2015.   By way of background, under PRC’s robust foreign exchange control scheme, a foreign invested enterprises (“FIE”) was required to provide various documentation , including capital verification, proof of use of fund etc so as to convert the capital in the foreign exchange bank account injected by the foreign investors into RMB to be used in the operation within PRC. As early in 2014, Shanghai pilot free trade zone has launched the reform to allow the FIEs to freely convert the foreign capital into RMB. Circular 19 was the further step to promote the replicable experience to the whole nation to change the foreign exchange management principles and methods.   We will firstly summarize the key contents of the Circular 19 and then share our observations as below.   CONTENT SUMMARY   Voluntary Settlement of Foreign Exchange Capital for FIE: FIES of the whole territory of PRC will be entitled to the autonomy over the capital settlement […]

Prohibiting the Abuse of Intellectual Property Rights to Preclude or Restrict Competition

On 7 April, 2015, the State Administration of Industrial and Commerce (“SIAC”) promulgated the Rule on Prohibiting the Abuse of Intellectual Property rights to Preclude or Restrict Competition (“Rule”), which is expected to significantly impact the practice of both of intellectual property protection and anti-molopoly.

We summarize the major objectives, aspects and highlight of the Rule as below to offer a high level overview of the Rule.