A few years ago, it seemed that Shanghai was on the verge of becoming the Asian city of choice for multinationals establishing regional HQs. However, this did not come to pass and it appears that this has caught the attention of the Shanghai Municipal Government…
By Mark Schaub, Partner, King & Wood Shanghai Office, FDI
Liu Jun, King & Wood’s Guangzhou Office,Domestic Dispute Resolution Practice
On March 30, 2008, a notice was issued by the Supreme People’s Court adjusting the standards for jurisdiction of the high people’s courts and the intermediate people’s courts.The adjustment will reduce dramatically the number of first instance cases tried by the high people’s courts and the Supreme People’s Court, however, it will lead to a huge burden on the basic people’s courts and accordingly the intermediate people’s courts will also see their caseloads increase for cases of second instance. In other words, after the implementation of the new standard, most civil and commercial cases of first and second instance will be charged to the basic and the intermediate people’s courts.The new standard came into force from April 1, 2008…Continue Reading Standards for Cases of First Instance Adjusted by Supreme Court
By King & Wood’s Banking Regulation & Compliance Practice
A Brief Analysis on the New Administrative Rules on Foreign Exchanges
Background
On August 5, 2008, the Premier of the PRC State Council, Mr. Wen Jiabao, issued the State Council Order No. 532, which promulgates the newly revised “Administrative Rules of the People’s Republic of China on Foreign Exchanges” (hereinafter referred to as the “New Rules”). This document came into force upon its promulgation, and to a large extent changes the rules of the old foreign exchange supervision system. This tremendous change in the regulatory system is for the purpose of accommodating the rapid development of China’s economy and the material transformation in the international economic fields in recent years.Continue Reading Revolution in the Foreign Exchange Control System
By: Andrew Tan, a Partner Arculli Fong & Ng (in association with King & Wood, PRC Lawyers)
1.Introduction
On 6 June 2008, the Government of the Hong Kong Special Administrative Region (the “HKSAR”) announced the “Arrangements for the Implementation of Clean Development Mechanism (“CDM”) Projects in the Hong Kong Special Administrative Region” (the “Implementation Arrangements”). The Implementation Arrangements have been developed following consultations between the National Development and Reform Commission (“NDRC”) of China and the Environment Protection Department (“EPD”) of the HKSAR. The Implementation Arrangements sets out the specific procedures for Hong Kong companies to conduct CDM projects in Hong Kong…Continue Reading Renewable Projects in Hong Kong may Lead to Additional Reward?
As of August 1st, Hong Kong and The Mainland were able to recognize and enforce commercial contracts, in accordance with the “Jurisdiction Agreement” stated in “Arrangement between the Mainland of China and the Hong Kong Special Administrative Region Courts for Mutual Recognition and Implementation of Judgment on Civil-Commercial Cases under Agreement Jurisdiction."
By Xu Xiaodan, King & Wood’s International Litigation & Arbitration Group
By： Li Yongmei King & Wood’s Domestic Litigation & Arbitration Practice
Recent issues regarding Chinese products have focused on the gaps remaining in the law. However, the gaps are quickly closing. Product safety has become a top priority for China. Chinese authorities have streamlined the legislative process for product recalls at all levels…Continue Reading Chinese Law on Product Recalls- A Work in Progress
By: Li Wenbo King & Wood’s International Trade Group
Last month, Mr. Martin Lipton, of Wachtell, Lipton, Rosen & Katz, honored King & Wood with a speech on the implications of the “poison pill” in legal practice. Mr. Lipton is noted for hisinnovative "rights plan", a series of defensive measures taken by the board of a target company in a hostile takeover. The “rights plan” is meant to ward off hostile offers that substantially underestimate the value of the target’s shares. The rights plan was later referred to as the "poison pill" by Wall Street bankers whose attempts at hostile takeover below fair value were frequently frustrated by the "rights plan."
Mr. Lipton’s speech inspired me to ponder the question of how defensive measures work in China’s corporate governance. I then googled the word "poison pill" and "company" in Chinese, but found no instances of companies utilizing the poison pill within China. So why is there no poison pill in China?
The “Law of the People’s Republic of China on Mediation and Arbitration of Labor Disputes” (“the New Law”) came into force on May 1, 2008. This promulgation has introduced many innovative concepts to Chinese law. The most notable change was the extension of the statutory period for filing arbitration applications in labor disputes.
By Xu Xiaodan, King & Wood’s International Litigation & Arbitration Group.
Continue Reading Statute of Limitations Extended for Commencing Arbitration in Labor Disputes
Two sets of new measures have been issued in June 2008 (namely Measures for the Administration of Prohibited and Restricted Technology Import and Measures for the Administration of Import and Export Contracts Registration) which are likely to have a material, practical affect upon technology licenses and transfers to and from China. In November 2007, the Ministry of Commerce updated the Category of Prohibited and Restricted Technology Import.
The measures are a mix of devolution (i.e. the regulations delegate responsibility down to regional Bureaux of Commerce); increased regulation and supervision on the one hand but relaxation in other regards.
By Mark Schaub, Partner Shanghai Office of King & Wood，FDI
Continue Reading New Technology Import Regulations May Cause Headaches for the Unprepared
In conclusion, after the transition from a fixed rate to floating rate for damages, conflicts may still arise during litigation or arbitration.
如上所述，中国人民银行将罚息利率由固定利率变为浮动利率后，在诉讼或仲裁主张逾期付款违约金时仍会存在标准上的争议．
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Continue Reading Calculating Late Payment Breach Damages