Measuring the Need for Reform in Chinese Basketball Pt. II: The Structural Organization of the CBA
Not only the marketing affairs, the Chinese Basketball Association also effectively controls all other critical aspects of the CBA under the CBA AOA. The following three issues illustrate how the Chinese Basketball Association greatly influences the operations of the CBA clubs.
By Wang Rui, Partner at King & Wood, William Gould, Alvin Attle, and Peter Gall
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Measuring the Need for Reform in Chinese Basketball: Cues from the NBA
The rapid expansion of the NBA in China overshadowed the premier professional basketball league in China— the China Basketball Association (“CBA”). Beyond the superior play, the CBA currently underperforms the NBA in many other aspects.
By Wang Rui, Partner at King & Wood, William Gould, Alvin Attle, and Peter Gall
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Guarding State-Owned Assets - the PRC Enterprise State-Owned Assets Law
I. First Law Governing State-Owned Assets in China
The Enterprise State-owned Assets Law of the People's Republic of China ("State-owned Assets Law") was adopted on the fifth session of 11th Standing Committee of the National People's Congress on October 28, 2008 and become effective on May 1, 2009. The State-owned Assets Law, which had been drafted and deliberated for more than ten years, is China's first law addressing state-owned assets.
By Su Zheng, Partner at King & Wood, and Hu Ping
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SAFE Circular to Improve Forex Administration on Offshore Lending
On June 9, 2009, the State Administration for Foreign Exchange (“SAFE”) issued the Notice on Certain Issues Relating to Foreign Exchange Administration on Offshore Lending by Domestic Enterprises (the “Notice”) effective as of August 1, 2009, in an effort to deal with the difficulties faced by offshore Chinese-funded enterprises that have “gone abroad” in obtaining financing offshore and increasing working capital, to encourage more domestic enterprises with strong capital strength to “go abroad”, and to enhance the use of funds by domestic enterprises.
King & Wood's Banking & Finance Group
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The Best of a Bad Deal
From 2003-2007, over US$100 billion poured into China via offshore structures in tax havens like the Cayman Islands. Much came from global institutional investors who tasked alternative investment managers with allocating a percentage of their portfolios to high-yield opportunity funds, emerging markets and real estate.
Everyone wanted a piece of the “China Dream,” but in recent months they have woken up to deteriorating economic conditions. Institutional investors are forcing redemptions of their investments from high-yield, high-risk markets.
Jack Rodman, Senior Advisor to King & Wood's International Restructuring Team
Summarized from Mr. Rodman's article for China Economic Review, May 2009.
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Rise of "Famous" trademarks in China
The Supreme People's Court promulgated the “Interpretation on the Application of the Law Concerning Several Issues Regarding the Trials of Civil Disputes Relating to the Protection of Famous Trademarks” on April 23, 2009. This Interpretation clarifies what constitutes “famous” trademarks in China.
Xu Jing, Partner, IP Litigation
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New PRC Defective Product Recall System: Implementation
The Legislative Office of China's State Council is currently soliciting public opinions for a draft set of defective products recall rules. The draft has been prepared by the General Administration of Quality Inspection, Supervision and Quarantine of China.
Mark Schaub, Partner, Corporate
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Injunctive Relief Alternatives in IP Related Cases in China
On April 21, 2009, China’s Supreme People's Court promulgated its “Opinion on Several Issues Concerning Trials of IP Cases to Serve the Public Interest under the Current Economic Environment” In this Opinion, the Supreme People's Court first clarifies that injunctive relief should not necessarily be granted in all intellectual property infringement cases. Under certain circumstances, the Court stated that an award of reasonable or sufficient damages can be an effective substitute for claims of injunctive relief.
Xu Jing, Partner, Intellectual Property
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China Retools its Auto Industry to meet Global Challenges
China has issued a raft of measures aimed at moulding its auto industry to meet both the challenges posed by the global economic crisis and possibly even use the crisis to achieve long held strategic government goals. The short term goal appears to be to boost domestic consumption of cars and thereby stimulate the economy. The longer term goals have been previously enunciated in NDRC auto policy, namely consolidate the industry, build some national auto champions and build quality “green” cars. According to The New York Times, China is aiming to become a global leader in manufacturing electric cars.
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Newly Amended Insurance Law in China
China's insurance industry has experienced significant changes since its World Trade Organisation (WTO) entry. It has gone from being a predominantly closed market in the early 1990s, to one in which foreign insurers now account for more than half of all insurance companies. The Insurance Law, as the basic law governing China's insurance industry, however, have not fully reflected that growth and change.
On 28 February 2009, the Standing Committee of National People's Congress adopted the long-awaited amendments to the Insurance Law which will become effective as of 1 October 2009. A number of new provisions are included and extensive amendments to existing provisions made. Some of the key amendments are discussed below particularly those which may likely impact on the investment in, and the operation of insurance companies and insurance intermediaries in China.
Mark Schaub, Partner, FDI
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