May 2008

By:Liu Zhigang, Partner and Lv Yinghao, associate, King & Wood’s Banking Department

In the final quarter of 2007, the National Association of Financial Market Institutional Investors (“NAFMII”) was authorized by the People’s Bank of China to release a standardized Master Agreement and supplements (“Master Agreement”) to serve as uniform documentation of inter-bank market participants in financial derivatives transactions. For those familiar with the International Swaps and Derivates Association Master Agreement (“ISDA Agreement”), its influence is evident in the newly adopted Master Agreement. Similar to the ISDA Agreement, the Master Agreement addresses an extremely wide variety of transactions, including most if not all derivatives allowed by Chinese law.Continue Reading ISDA: New Master Agreement Promotes Prosperity For Derivatives

By: Mark Schaub, Partner Shanghai Office of King & Wood，Corporate Group

Despite 30 years of opening up, actual Chinese government policy remains opaque. Although not as incomprehensible to the outsider as Kremlin watching was in the Cold War there are still few opportunities to really grasp what type of foreign investment is actually in favor at any given time. Circular 57, also known as Catalogue for the Guidance of Foreign Investment Industries (“Catalogue”) was overhauled late last year and does provide some hints in this regard.Continue Reading Reading the Tea Leaves: Changes to Foreign Investment Catalogue

By: Huang Tao, Partner and Dai Yue , an associate of King & Wood’sDispute Resolution Group in Beijing.

Lacking knowledge of and exposure to China’s judicial and arbitrational system, foreign companies usually worry about dispute resolution clauses more than any other clause in a contract. Deciding which arbitration tribunal and what arbitration rules to specify becomes a sensitive and important aspect of contract negotiations for wholly foreign owned entities ("WOFE") and cooperative joint ventures ("CJV").Continue Reading Forum Shopping in China: Choice of Arbitration Tribunal

Ding Liang, a counsel to King & Wood’s International Trade Group in Beijing

A non-compete clause prohibits one party from competing in the same type of business as the other party for a specified period. The non-compete clause is usually termed "covenant not to compete", "restrictive covenant", or "non-compete clause" and are treated with suspicion by the Anti-Monopoly Enforcement Agency.

Continue Reading Interplay of Non-Compete Covenants under the PRC Anti-monopoly Law

By: Li Qiang, Partner

On March 13, 2008, the General Office of the State Council promulgated the Opinions of the General Office of the State Council on Implementing Some Policies and Measures for Accelerating the Development of the Utility Sector. (No.11 [2008] of the General Office of the State Council) In this opinion, it…

By Zhang Tianhui, Editor, King & Wood’s Publication Group

As China’s economy continues to develop, the administration of developments in urban and rural areas of China requires a more focused approach to ensure the harmonious development of each area’s economy along with the preservation of local culture, heritage and infrastructure needs. The new system provides localities with guidelines to ensure nationwide consistency while providing a certain amount of autonomy to allow for specific local needs.Continue Reading Urban and Rural Planning Law: Hot Issues

Written By Yang Hongjun, Partner

The recent decision by the Beijing Higher People’s Court revoking the Patent Reexamination Board (PRB) invalidation Decision of Pfizer’s Viagra Patent in China has put an indefinite end to a drawn out battle between domestic drug companies and Pfizer. This case, while not firmly establishing any foundation for patent examinations, has revealed many of the risks associated for all parties in proceeding into a legal dispute regarding patents in China. Continue Reading Viagra Judgment: Impact on future patent filings?