November 2011

By Susan Ning, Ji Kailun and Yin Ranran

Only 10 days after its conditional clearance of the Alpha V/Savio deal1, the Ministry of Commerce (MOFCOM) published, on 10 November 2011, the third conditional merger clearance of this year approving the proposed joint venture between General Electric (China) Ltd. (GE China) and China Shenhua Coal to Liquid and Chemical Co., Ltd. (CSCLC)2. 

This is the first conditional decision relating to a Chinese Stated-owned enterprise (SOE) and the number of MOFCOM’s conditional clearance decisions is lifted to nine in total.  According to MOFCOM’s announcement, the review process lasted for about 7 months starting from April 13 when the notification was first submitted to MOFCOM.

Continue Reading MOFCOM Imposed Conditions on SOEs – GE/Shenhua Deal

by Liu Xinyu and Jing Yunfeng of King & Wood’s Corporate group

According to Articles 56 to 58(1) of the Customs Law of the People’s Republic of China ("Customs Law")(2), there are three categories where duties may be reduced: statutory duty abatements or exemptions, deductions or exemptions on special goods, and temporary duty reductions or exemptions. "Deductions or exemptions on special goods" refers to goods imported into China that enjoy a reduction or exemption of duties in specified areas and enterprises or for special purposes until the expiration of customs supervision over such goods. Special goods which are subject to reductions or exemptions are divided into many categories according to the region, use of the goods, nature of the trading business and source of funds. According to related regulations, if the imported goods fall within certain product categories encouraged by the government, the foreign investment enterprise can apply for a preferential policy of deduction and/or exemption of duties.

However, in practice, some foreign investment enterprises, being unaware of customs supervision rules, receive penalties from China Customs offices for improper handling of these special goods that are otherwise eligible for reductions or exemptions of duties. Therefore, it is important for foreign investment enterprises to understand the relevant regulations concerning special goods that are eligible for deductions and exemptions.Continue Reading Common Mistakes Made by Foreign Investment Enterprises Utilizing Duty-Exempt Goods

作者：刘新宇 景云峰 金杜律师事务所公司组

根据《中华人民共和国海关法》（《海关法》）（1）第五十六条（2）、五十七条第一款（3）以及第五十八条（4）的规定，关税的减免分为三大类，即法定减免税、特定减免税和临时减免税。其中，“特定减免税货物”是指货物在进口时减征或免征进口关税，进口后只能用于特定地区、特定企业或者特定用途，直至海关监管年限届满后解除海关监管的进口货物。而特定减免税货物又根据地区、货物用途、贸易性质、企业性质和资金来源等税收政策可分为很多种类。其中，根据有关政策规定，外商投资企业进口属于国家鼓励发展的外商投资项目货物时，可申请享受特定减免税优惠政策。

但是，实践中，很多外商投资企业却因对海关监管要求的不了解而违法处置特定减免税货物导致遭受海关的处罚。因此，对于外商投资企业而言，了解特定减免税货物监管的相关规定以及海关在实践中的要求是非常重要的。Continue Reading 外商投资企业特定减免税货物”移作他用”典型案例

By Susan Ning, Sun Yiming and Liu Jia

On November 9, 2011, an earlier rumor indicating that China Telecom is under antitrust investigation for alleged abuse of dominance in the broadband market was confirmed by the National Development and Reform Commission ("NDRC"), the authority in charge of price-related breaches of the Anti-Monopoly Law ("AML").  This is by  far the first time for China’s antitrust enforcement authority to conduct an antitrust investigation on large state-owned companies.  It is speculated that billions of antitrust fines could possibly be levied if the violation is established.

This article is a follow-up of our previous article entitled "Chinese Antitrust Enforcement Agencies Ready to Show Teeth to Large State-owned Enterprises? ", which includes a comprehensive analysis of the claimed violation.Continue Reading Earlier Rumor Confirmed: China Telecom and China Unicom under Antitrust Investigation

by Cecilia Lou and Yao Di of King & Wood’s Intellectual Property Group

It is not uncommon to receive unsolicited emails from domain registrars warning of imminent domain registrations by third parties. Generally, this email is a means by which some registrars solicit business in China. In many cases there is no actual third party attempting to register the domain in question.

When receiving such domain name emails we suggest that clients consider the following measures:Continue Reading Fighting Off Cybersquatters in China

by Alex Zhang King & Wood Intellectual Property Group

As the second largest economy in the world, China is emerging to the center of the world’s economic stage. This emergence has been accompanied by constant changes in its legal and economic sectors. The intellectual property sector also has witnessed numerous recent changes. There have been significant new advances in China’s national innovation policies. New trends in Chinese patent filings have emerged. A growing number of Chinese companies are creating their own IP and increasingly filing infringement suits against foreign companies and their local competitors in China. China’s third patent law amendment has materially changed patent practice and procedures in that country.

These changes and trends will have profound impacts on foreign companies doing business in China, especially in intellectual property areas. What are the best ways to deal with these important changes? The following several considerations should be evaluated in determining a company’s patent strategies in China.Continue Reading Key Considerations for Patent Strategies in China

by Susan Ning and Liwei Wang

On September 11, 2011, the name of the previous Guangdong Provincial Price Bureau was officially changed to the PriceSupervision and Inspection and Antitrust Bureau of Guangdong Province (广东省价格监督检查及反垄断局, Guangdong PAB).  In connection with the expanded scope of its administrative authority, the agency will recruit additional officials for the purpose of supporting its price inspection and antitrust functions.  In addition, the administrative hierarchy of the post-reform Guangdong PAB is elevated, indicating heightened administrative authority.Continue Reading Guangdong Provincial Price Bureau Renamed, Reflecting Strengthened Antitrust Enforcement Authority

On 31 October 2011, the Ministry of Commerce (MOFCOM) publicly announced the eighth conditional merger clearance since the enactment of the Anti-monopoly Law (AML) in 2008. According to its announcement, MOFCOM cleared the proposed acquisition by Alpha Private Equity Fund V (Alpha V) of Savio group (an Italia based textile machinery producer, Savio) with four conditions. This is also the second conditional merger clearance this year.
To read the full article, please click here.
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Continue Reading MOFCOM’s 8th Conditional Clearance – Alpha V/Savio Deal

By Susan Ning and Liu Jia

On 31 October 2011, the Ministry of Commerce (MOFCOM) publicly announced the eighth conditional merger clearance since the enactment of the Anti-monopoly Law (AML) in 2008.  According to its announcement1 , the review process lasted for 3.5 months starting from 14 July 2011 when the notification was submitted to MOFCOM. 

Set forth below is a chart outlining the review process.Continue Reading Alpha V/Savio Deal – A Procedural Overview of MOFCOM’s Decision-making Process

金杜律师事务所证券组

前言

2011年10月28日，香港联交所公布了《有关检讨企业管治守则及相关上市规则的咨询总结》，并通过全面修订《上市规则》的规定，对发行人的企业管治水平制定了更高标准。发行人独立非执行董事的占比不得低于董事会人数三分之一的规定正式出台。

大部分修订将在2012年初陆续生效。发行人必须在首份涵盖2012年4月1日之后期间的中期报告或年报中，分别表明发行人在报告期内有否遵守旧《企业管治常规守则》和新《企业管治守则》。发行人也可以选择在2012年4月1日前执行新的规定。

其中，《企业管治守则》的部分“建议最佳常规”提升为“守则条文”，即上市公司选择不遵守的，需要在年报披露原因，不遵守不视同违反《上市规则》。同时，《企业管治守则》内的部分“守则条文”提升为《上市规则》的强制性条文，即上市公司必须遵守，不遵守视同违反《上市规则》。大小修订合计近30项，从董事会和下属委员会、股东大会，以及公司秘书相关的规定，都有修订。发行人应当注意新规定对自身的影响，并尽快开展相关的提升企业管治水平的工作。

为方便发行人参考，我们摘录了若干我们认为对发行人实务操作影响较为显著的条文，列表说明如下。其他修订则在列表后简要说明。由于各发行人情况不一，如有需要，请尽快与公司香港律师商讨。 Continue Reading 联交所上市规则对企业管治的新规定