Doing Business in China: M&A Security Review, Competitive Influence, Counterfeits, Info Protection, and More

For your reference, a roundup of recent China-related business updates and legal commentary, including analysis of two important sets of rules issued earlier this month by the Chinese Ministry of Commerce. From lawyers and law firms on JD Supra:

Provisions on the Implementation of the Security Review System for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors Took Effect on Sept. 1, 2011 (Davis Wright Tremaine LLP):

“On Sept. 1, 2011, one week after being released by the Ministry of Commerce (“MOFCOM”), the Provisions of the Ministry of Commerce on the Implementation of the Security Review System for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (“Security Review Provisions”) took effect.” Read more»

China Implements New Evaluating Competitive Influence Rules (McDermott Will & Emery):

“… the Ministry of Commerce (MOFCOM) of China released “Interim Measures on Evaluating Competitive Influence Caused by the Concentration of Business Operators” (Evaluating Rules)…  [W]hen evaluating the concentration’s possible negative impact on competition, MOFCOM will first examine whether the concentration will lead to or enhance a certain operator’s or a few operators’ ability to eliminate or restrict competition.” Read more»

Protecting Your Inventions in China — Considerations Related to Chinese Patent (Snell & Wilmer L.L.P.):

“The statistics concerning Chinese counterfeits are staggering. In 2010, illegal exports from China and Hong Kong accounted for 80 percent of all seizures at U.S. ports, with a total value of $1.1 billion. Further estimates provide that 20 percent of all consumed goods inside China are also counterfeit.” Read more»

Applications of China’s New Personal Information Protection Standards (McDermott Will & Emery):

“China’s Ministry of Industry and Information Technology recently released draft voluntary regulations intended to protect citizens against the misuse of personal information by Internet Information Service Providers. The Provisions represent China’s first regulations to explicitly address the issues of unfair competition on the internet and personal information protection.” Read more»

Insights on the Application of the Safe Harbor Rule in the PRC Internet Industry (Morrison & Foerster LLP):

“…U.S. courts have held that an ISP may be shielded from monetary damages for copyright infringement where the ISP is unaware of the infringing nature of the hosted content and moves expeditiously to remove or block access to such content upon becoming aware that it infringes the copyrights of others. This scenario is being repeated in China.” Read more»

Never Too Late: Leveraging the Chinese Economic Opportunity (Snell & Wilmer L.L.P.):

“United States companies may want to consider what impact the Chinese economic influence will have on future market demands and supply chain management. At some point, a United States business will likely interact with a Chinese-dominated company; and those businesses that develop a strategic approach are likely to be better positioned to take advantage of such opportunities.” Read more»

Medical Devices: An Introduction to the Regulatory Regime in China and Options for Foreign Investors in the Medical Device Sector (McDermott Will & Emery):

“The People’s Republic of China has probably already surpassed Japan to become the second largest medical device market in the world after the United States. It is estimated that the market for medical devices in China will shortly (if not already) account for more than 5 per cent of the world market for medical devices.” Read more»

China: Increasing Economic Immigration But Outdated Laws (Gary Chodorow):

“In addition to large flows of emigrants leaving China in search of opportunities elsewhere, a new trend of immigration to China is emerging. But China still doesn’t have the regulatory framework and administrative capacity suited to large-scale immigration.” Read more»


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