English

Subscribe to English via RSS

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

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.
…
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

By King & Wood’s Intellectual Property Group

Whether service trademarks used by shopping malls and supermarkets can be registered in International Class 35 and receive protection as a registered trademark is rigorously debated both academically and in judicial practice in China.

Opponents argue that the China Trademark Office (CTMO) has clearly stated that wholesale and retail services are not included in Class 35, and thus the services of shopping malls and supermarkets cannot be classified as such (the CTMO published this in their official written reply to Sichuan Provincial Administration for Industry and Commerce, "Reply to the Issue of Whether Shopping Mall and Supermarket Services are Included in Class 35" on August 13, 2004). Furthermore, it stated that the contents of "sale promotion (for others)" refer to providing advice, planning, promotion and consulting for others to sell goods or services. As a result of the Reply, even if a trademark is registered under "sales promotion (for others)", such marks of wholesale and retail enterprises, such as department stores, supermarkets, wholesale markets, can hardly be effectively protected by China’s Trademark Law.Continue Reading Do Shopping Malls and Supermarkets Qualify for Class 35 Trademarks?

By He Wei and Zeng Ying King & Wood’s Dispute Resolution Group

This article continues to discuss Extra-judicial Mediation System and Practice. The first part of this article was published on Chinalawinsight on October 2011.

II. A review of extra-judicial mediation

Compared with mediation during arbitration or litigation, extra-judicial mediation can offer a more amicable way for the solving of disputes and avoid many of the disadvantages of "judicial mediation".

In judicial mediation judges and arbitrators primarily rely on rigid laws and regulations to guide the mediation process whereas the regulations applicable to extra-judicial mediation are more flexible. Article 17 of the Several Provisions provides that "in the mediation of cases, relevant organizations may, without violating the mandatory provisions of laws and administrative regulations, guide the parties to reach settlement agreements by referring to industrial practices, village regulations, community conventions, local good customs and other codes of conduct."Continue Reading Extra-judicial Mediation System and Practice （Part II of II）