Doing Business in China: A JD Supra Legal Reader

For your reference, a roundup of recent legal commentary and analysis on issues related to doing business in and with China:

China 20/20: Legal & Regulatory Developments (Orrick, Herrington & Sutcliffe LLP):

“On May 7, 2012, the Ministry of Commerce (“MOFCOM”) issued the Notice on Improving the Filing Administration of Foreign Invested Venture Capital Enterprises (“FIVCs”). Under the notice, MOFCOM requires provincial level commerce authorities to forward the details of FIVCs approved by them to MOFCOM by May 31 of each year for recording. MOFCOM will publish and update on its website a list of FIVCs that have completed the filing procedure.” Read on>>

China Bulletin: Business, Trade and Competition (White & Case LLP):

“In early March 2012, Dr. Jonathan Choi Koon-shum, a Member of the National Committee of the Chinese People‘s Political Consultative Party and the Chairman of the Chinese General Chamber of Commerce (Hong Kong), submitted a proposal regarding Hong Kong’s possible accession to the ASEAN China Free Trade Area during the 5th Session of the 11th CPPPC. This follows a number of closed door meetings over the past several months among officials from Hong Kong, Mainland China and ASEAN on the accession issue.” Read on>>

Life Sciences Health Industry China Briefing (Reed Smith):

“Notice from the General Office of the Ministry of Health concerning Classification of Hospitals Run by Private Investors – May 21, 2012 Local health authorities shall classify hospitals run by private investors, including Chinese-foreign cooperative hospitals, based on the hospitals’ function and services. The local health authorities are also required to classify those hospitals as soon as possible. This change is expected to decrease the barriers to investment for private investors.” Read on>>

Hong Kong Court of Appeal Overturns an Order of the Court of First Instance to Set Aside ICC Arbitration Award (White & Case LLP):

“The Hong Kong Court of Appeal has recently handed down a decision in Pacific China Holdings Ltd v. Grand Pacific Holdings Ltd overturning an order of the Court of First Instance to set aside an ICC arbitration award made in Hong Kong. On the facts of the case, the Court of Appeal concluded that there was no violation of due process… This decision demonstrates the Hong Kong Courts’ pro-enforcement stance when faced with an application to set aside or enforce an international arbitration award.” Read on>>

Latest Trends in Cloud Computing in China (Dechert LLP):

“Cloud computing continues to be an area of significant interest and investment for many companies. Current forecasts predict IT and cloud computing spending to total $112 billion in 2012, a 15% increase over 2011. Some companies view cloud computing as a potential bridge to bringing well-established business practices into emerging markets with huge opportunities for expansion. Given the size of the current and future market in China, companies are now evaluating whether and how to engage in ‘cloud’ businesses in China.” Read on>>

New SAFE Rule on Onshore Individuals’ Shareholding in Offshore Listed Companies (White & Case LLP):

“The State Administration of Foreign Exchange (‘SAFE’) recently promulgated a new rule regarding SAFE registration of onshore individuals’ shareholding in offshore listed companies, the Circular of the State Administration of Foreign Exchange on Issues Concerning the Administration of Foreign Exchange Used for Onshore Individuals’ Participation in Equity Incentive Plans of Companies Listed Offshore.” Read on>>

Draft Amendment to China’s Copyright Law (Sheppard Mullin Richter & Hampton LLP):

“The Copyright Law of the People’s Republic of China (‘Copyright Law’) came into effect on June 1, 1991, and has since been followed by two rounds of revisions. The first round of revisions was in order to accommodate China’s entry into the World Trade Organization, and became effective on October 27, 2001. The second round of revisions was in order to implement WTO rulings in Sino-USA intellectual property rights disputes, and became effective on April 1, 2010. On March 31, 2012, the National Copyright Administration of China released for public comment the Copyright Law for the People’s Republic of China (Draft Amendment). As compared with the previous two rounds of revisions, the revisions contained in the Draft are rather comprehensive.” Read on>>

United States Continues To Make Progress At The U.S. – China Strategic And Economic Dialogue (King & Spalding):

“At the fourth annual U.S.-China Strategic and Economic Dialogue (‘S&ED’), the United States made some headway on several Chinese commitments that would give U.S. companies increased market access to the Chinese market. The S&ED, which took place in early May in Beijing, was established in 2009 by President Obama and Chinese President Hu to provide an ongoing forum for high-level U.S. and Chinese officials to discuss issues of mutual economic and strategic interest.” Read on>>

China’s MOFCOM Grapples With Open Source Issues In Google-Motorola Deal (Sheppard Mullin Richter & Hampton LLP):

“This past February the US Department of Justice and European Commission cleared Google Inc.’s acquisition of Motorola Mobility Holdings Inc. without any conditions. In contrast, on May 19, 2012 the Chinese Ministry of Commerce approved the acquisition subject to what some observers believe were over-cautious conditions linked to a lack of experience and institutional resources… MOFCOM determined that Google’s acquisition of Motorola had the effect of eliminating or restricting competition in the markets of operating systems and patents, but approved the acquisition with three conditions…” Read on>>

Listing in Hong Kong: The Process for Delaware Companies (Pillsbury Winthrop Shaw Pittman LLP):

“In February 2012, the Hong Kong Stock Exchange (HKEx) issued Listing Decision HKEx-LD24-2012, which permits companies incorporated in Delaware to list on HKEx if they comply with certain special requirements. These special requirements are in addition to HKEx’s basic quantitative and other listing requirements, and are generally applicable to companies in ‘acceptable’ jurisdictions but not incorporated in Hong Kong or a ‘recognized jurisdiction.’” Read on>>

China’s Supreme Court Issues New Rules On Civil Cases Based On Monopolistic Conduct (Sheppard Mullin Richter & Hampton LLP):

“On May 8, 2012, the Supreme Court of China issued new ‘Rules on the Application of Law on Civil Cases Concerning Monopolistic Conduct’ (the ‘Rules). The Rules clarify some of the questions concerning anti-monopoly cases, which are civil cases based on alleged monopolistic actions. Since the promulgation of the PRC Anti-Monopoly Law in 2008, and through the end of 2011, approximately 60 anti-monopoly cases have been filed with different Chinese Courts (with eight of them still pending), and apparently no plaintiff has prevailed in any of these cases.” Read on>>

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