By Yuan Min, Wang Jianzhao , and Kirby Carder, King & Wood Insurance Department, Beijing Office

Last Sunday during a press conference held during the National People’s Congress, China Insurance Regulatory Commission (CIRC) Chairman Wu Dingfu announced that the CIRC is currently creating its policy for the use of insurance premium funds to invest government subsidized affordable housing projects. He specifically stated that China does not have a legal barrier to insurance companies investing insurance funds in affordable housing projects, and he also said that the CIRC plans making Shanghai the first city where this is possible. However, he cautioned that the main priority in insurance fund investment must still be risk management because any investments must provide a return so that an insurance company’s duty to pay its policyholders claims can be met.

Continue Reading The China Insurance Regulatory Commission has Announced that it will Pilot Allowing Insurance Funds to Invested in Affordable Housing Development Projects in Shanghai

By Yuan Min, Wang Jianzhao , and Kirby Carder, King & Wood Insurance Department, Beijing Office

During a press conference held last week during the National People’s Congress, China Insurance Regulatory Commission (CIRC) Chairman Wu Dingfu annouced that the the CIRC will set up an insurance exchange in Shanghai as part of the Chinese government’s goal of making Shanghai an international finance center. This official announcement shows that the CIRC is serious about setting up an exchange. Yet, at present this announcement probably should just be considered a statement of their intentions because the CIRC did not offer any details on what the purpose of that exchange will be or who will participate in that exchange.

Continue Reading The China Insurance Regulatory Commission has Announced that it will Create a Pilot Insurance Exchange Project in Shanghai

By Susan Ning, Liu Jia and Angie Ng

In March every year, lawmakers and political advisers from the National People’s Congress (NPC) (Chinas equivalent of Parliament) and the Chinese People’s Political Consultative Committee (CPPCC) (China’s top advisory body) conduct sessions in Beijing to take stock of social, legal and economic issues in China for the preceding year; and discuss objectives (in relation to the same issues) for the year going forward1.    These sessions are often referred to as the "two sessions".

Two statements which have arisen during these two sessions; are of particular interest (from an antitrust law perspective):
 

Continue Reading The annual “two sessions” and antitrust law noises

By Yuan Min, Wang Jianzhao , and Kirby Carder, King & Wood Insurance Department, Beijing

On February 18th, 2011 the China Insurance Regulatory Commission ("CIRC") Chairman Wu Dingfu made an announcement that the CIRC will be focusing more attention on regulating bank assurance based insurance policy sales. He noted that insurance purchasers are being given misleading advice about the best insurance policies for for their needs when they are consulting with insurance agents at Chinese banking institutions. The Chairman stated that protecting insurer purchasers interests is one of the CIRC important interests, and is one of the cornerstones to the sustained growth of the Chinese insurance industry.

Continue Reading The China Insurance Regulatory Commission has Announced that it is Requiring its Local Offices to Issue Written Instructions for its Enforcement Staff to Reduce Illegal Activities in Bank Assurance Insurance Policy Sales

By King & Wood’s Trademark Practice

The Law of the Application of Law for Foreign-related Civil Relations of the People’s Republic of China was promulgated on October 28, 2010 and will come into force on April 1, 2011. The new law absorbs the latest achievements of the research and legislation in the field of the private international laws, which is widely viewed as having reflected the contemporary legislation ideas and incorporated innovative rules, and the issuance of this law would have accomplished the systemization and modernization of the conflicting rules concerning foreign-related relations in Chinese legislation system.

Continue Reading China’s New Foreign-Related Civil Relations Law Harmonizes Conflicting Rules

By Susan Ning, Angie Ng and Shan Lining

On 3 February 2011, China’s State Council released a notice which governs a national security review process for foreign acquisitions of domestic companies1.   This national security review process will be implemented on 5 March 2011.

Since the release of the notice, there has been a flurry of articles and commentaries in both the legal and business media circuit.  Foreign businesses who wish to invest in China are concerned that this is potentially another tedious clearance process (on top of the corporate, regulatory and antitrust clearance processes) to pass before they are free to close their proposed transactions.

Continue Reading More on China’s national security review regime – the American regime vs the Chinese regime

By Susan Ning, Shan Lining and Angie Ng

On 5 March 2011, China will implement its first National Security Review (NSR) regime.  This NSR regime will govern foreign acquisitions of domestic companies.  The precise boundaries of this NSR regime has been set out in a notice (specifically, a Notice on Establishing National Security Review by Foreign Investors issued by the State Council1. ). 

We know, from the notice mentioned above that, broadly, a foreign-local transaction may only be caught if: (a) the foreign company acquires de facto control over a local company; and (b) the local company is involved in selling goods or services in relation to either national defense security or national economic security.  [Note that if a foreign company acquires a local company involved in selling goods or services in relation to national defense security, the threshold set out in (a) (i.e. de facto control) does not need to be established.  In other words, the transaction will come under the purview of the notice, despite there being no de facto control.]

This article outlines the above mentioned two thresholds (i.e. de facto control) and what is meant by national defense and national economic security in more detail.
 

Continue Reading Will my transactions be subject to the new National Security Review regime?

By: Susan Ning, Liu Jia and Yin Ranran

Recently, the Jiangsu Administration for Industry & Commerce ("Jiangsu AIC") issued sanctions against the Concrete Committee of the Construction Materials and Construction Machinery Industry Association of Lianyungang City ("Association") and 16 concrete manufacturers for breach of the Anti-Monopoly Law, by way of having entered into a monopoly agreement.  

This is the first publicly released enforcement decision by the SAIC (which delegated power onto the AIC) in respect of the Anti-Monopoly Law (AML), since the enactment of the AML in August 20081. 

The State Administration for Industry & Commerce ("SAIC") possesses the jurisdiction to govern and enforce non-price prohibitions in respect of the AML. And, according to the Article 10 of the AML and the Article 2 of the Procedural Rules by Administration of Industry and Commerce regarding Investigation and Handling of Cases relating to Monopoly Agreement and Abuse of Dominant Market Position, where necessary, SAIC may delegate to relevant AIC of a province, an autonomous region, or a municipality ("Provincial AIC") the authority of anti-monopoly law enforcement with regard to monopoly agreement and abuse of dominant market position.

 

Continue Reading First Public Enforcement Decision by SAIC against concrete manufacturers

By King & Wood’s Trademark Practice

On December 16, 2009, the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) of the People’s Republic of China announced that it approved the registration of Cognac as a geographic indication, which is the first foreign geographic indication protected in China. On October 9, 2010, Scotch whisky was also recognized as a geographic indication, as a result of three-year discussion between the Scotch Whisky Association and the Chinese government. This will provide better protection for Cognac and Scotch whisky in China, which will also guarantee purchase of genuine Cognac and Scotch Whisky to the local consumers.

Continue Reading Cognac and Scotch Whisky obtain GI Protection in China