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China Law Insight

Tag Archives: compliance

Compliance Challenges for Businesses in the “New Normal”

Posted in Antitrust & Competition, Competition Law, Corporate

By Susan Ning King & Wood Mallesons’ Commercial & Regulatory group

The reform and opening up in China has been a process of establishing and improving a modern market system. As this process deepens, “building a unified, open, orderly and competitive market” has become the goal of the market economy reform. The year 2017 is the second year of China’s 13th Five-year Plan, in which “market” and “competition” are the key points that cannot be overlooked. According to the Plan, establishment of a modern market system requires accelerating the development of a un… More…/更多

CFDA Further Strengthen the Supervision of Health Food

Posted in Corporate

By Mark Schaub and Chen Bing King & Wood Mallesons’ Corporate & Securities group

On April 28, 2017, China Food and Drug Administration (“CFDA”) released for public comment a draft Opinion on the Further Strengthening of the Supervision of Health Food (“Draft Opinion”).

The Draft Opinion leans heavily on principles already set out in the new Food Safety Law and the Administration Measures on Registration and Filing of Health Food (“Administration Measures”) of 26 February 2016 but also does give a hint as to their current thinking in relation to healt… More…/更多

How to deal with Employees’ Unreasonable Application for Sick Leave

Posted in Labor & Employment

BY Lucy Lu,Li Xin and Hang Ying. King & Wood Mallesons’ Commercial & Regulatory group.

According to the PRC labor laws, an employer is obliged to ensure employee’s right to stipulated medical treatment period if an employee is suffering from illness.  In practice, when an employee goes to the hospital and seeks professional advice from a doctor, the doctor will take account of all factors concerning illness and health risks of the employee and then issue official medical certificate, with which the employee may apply for sick leave with the employer.  Accordingly… More…/更多

Employers: Be Cautious with Pay Cuts

Posted in Labor & Employment

By Yin Juquan, Zhang and Yuanhao. King & Wood Mallesons’ Commercial & Regulatory group.

Reduction of an employee’s salary is often a consequence of the employer’s decision to demote the employee for some reason. However, the employer should refrain from meting out a pay cut arbitrarily. Usually, lawful pay cuts occur in two circumstances – when both employer and employee agree on it, or when the employer enforces it by law.

Pay cut agreement between employer and employee

Remuneration is a necessary clause of an employment contract. Article 35 of the Labor Contract La… More…/更多

New Rules for Basic Pension Transfer and Continuation

Posted in Labor & Employment

By LUO Ai and TANG Xiaojing  King & Wood Mallesons’ Commercial & Regulatory group.

On November 28, 2016, the Ministry of Human Resources and Social Security (“MHRSS”) issued the Notice on Several Issues in the Transfer and Continuation of Basic Pension Insurance of Urban Enterprise Employees (the “Notice”) clarifying several issues arising from the implementation of the Interim Measures for the Transfer and Continuation of Basic Pension Insurance of Urban Enterprise Employees(the “Interim Measures”) since 2010.

Regulations on Urban Employees’ B… More…/更多

China’s Step Forward to Personal Data Protection

Posted in compliance

By Susan Ning, Han Wu, Yangdi Zhao   King & Wood Mallesons’ Commercial & Regulatory group.

China’s national legislature on March 15, 2017 passed the General Provisions of the Civil Law (the “General Provisions”), the opening chapter of a civil code planned to be enacted in 2020.  The General Provisions were adopted at the closing meeting of the annual session of the National People’s Congress (NPC), with 2,782 of the 2,838 deputies present voting in favor.  It takes effect on Oct 1, 2017.

Article 111 of the General Provisions[1] stipulates the rul… More…/更多

What an effective foreign corrupt practices compliance plan looks like

Posted in Global Network

By Greg Golding and Natalie Caton. King & Wood Mallesons

The federal election interrupted a Senate inquiry into foreign bribery. The Australian Federal Police continue to investigate a number of allegations against Australian companies involving foreign bribery and the prosecutions in the Securency matter remain ongoing.

International efforts to combat foreign bribery continue with the first corporate settlements under the UK Bribery Act and the top ten US Foreign Corrupt Practices Act settlements now exceeding US$4.5 billion, all in recent years.

Read full article, ple… More…/更多

Joint ventures under Hong Kong’s competition law: Compliance tips

Posted in Global Network

By Neil Carabine and James Wilkison  King & Wood Mallesons Hong Kong Office

Joint ventures must be properly structured and managed to ensure they do not breach Hong Kong’s new competition law. Agreements that breach the law may be declared void and participants may be fined up to 10 per cent of their annual turnover. It is therefore essential that companies assess new and existing joint ventures in light of the competition law. In this article, we provide tips on how to make sure your joint ventures comply with the Competition Ordinance.

Read full article, please click here.… More…/更多

Iran: Electronic due diligence and addressing the sanctions risk

Posted in Global Network

By Darren Roiser  King & Wood Mallesons’ London Office

In response to an unprecedented rise in the number of international sanctions and the increasing complexity of the restrictive measures imposed, recent years have seen corporates and financial institutions implement ever more advanced IT solutions to assist with sanctions compliance.

Indeed, enforcement authorities around the world now mandate the use of electronic screening and risk based compliance systems to ensure compliance and limit the risk of sanctions violations.

However, having spent many years putting i… More…/更多

Red Tape | Corruption contagion – tip of the iceberg

Posted in Global Network

By Dorothy Murray, Natalie Caton , Richard Wigley , Shamilee Arora, Jane Menzies  King & Wood Mallesons

Much has been written in recent years about the scope and costs of regulatory investigations and the powers of regulators. A company implicated in, for example, a corruption issue can expect to spend huge sums on investigations, fines, implementing corrective measures and improving its compliance structures and culture.

In high-profile cases, however, this may just be the beginning of a much longer (and more expensive) story. The inevitable fall in share price caused by even a … More…/更多

Hong Kong Competition Ordinance: First Conduct Rule

Posted in compliance

By Joshua Cole, Sharon Henrick, Michael Robert-Smith King&Wood Mallesons

In this article we explore the First Conduct Rule in Hong Kong’s Competition Ordinance, focusing on its significance for companies preparing for implementation of the Ordinance.

Overview of the First Conduct Rule

The First Conduct Rule targets anti-competitive agreements, including serious or ‘hardcore’ coordination between competitors such as price-fixing, market allocation, output restriction or bid-rigging.

Hong Kong’s Competition Commission has indicated that it will be particular… More…/更多

China Focuses on Bribery and Corruption in Multinational Companies

Posted in Dispute Resolution

By King & Wood Mallesons’ International Dispute Resolution Group

In recent years, several large multinational pharmaceutical companies have been found to be in violation of the Anti-Unfair Competition Law. Compliance in the area of commercial bribery is increasingly a focus of the Chinese authorities. Most recently, pharmaceutical companies have been punished in China for commercial bribery. Not only the companies, but also individual employees who have violated Chinese law, are being charged and prosecuted.

The State Administration of Industry and Commerce, as well as th… More…/更多

Summary of the “Provisions on the Establishment of Commercial Bribery Blacklist in the Pharmaceutical Purchase and Sales Industries”

Posted in compliance

By King & Wood Mallesons’ Compliance Group

In order to strengthen the administration of pharmaceutical industry, to regulate the purchase of drugs, medical devices and medical disposables, to prohibit illegal transactions and to fight against commercial bribery, on December 25 the National Health and Family Planning Commission (the “NHFPC”) published the amended “Provisions on the Establishment of Commercial Bribery Blacklist in the Pharmaceutical Purchase and Sales Industries” issued by the former Ministry of Health on January 19, 2007. The New Provisions … More…/更多

What does an Effective Anti-bribery and Corruption Programme Require?

Posted in compliance

By Liu Xiangwen, Monique Carroll and Zhu Yuanyuan King & Wood Mallesons’ Dispute Resolution Group

Much has been written on bribery and corruption in China, including the differences between criminal bribery and commercial bribery, and of course, the need for an effective compliance programme. However, foreign companies operating in certain complex or sensitive industries in China need to do more than instil an anti-corruption policy. What is needed is an in-depth understanding of the unique legal environment in their industries. This is because in some industries, parti… More…/更多