China’s Anti-Unfair Competition Law (“AUCL”) has been amended twice since its enactment in 1993, first in 2017 and another in 2019. On December 25, 2024, the Standing Committee of the National People’s Congress released a Draft Revision to the Anti-Unfair Competition Law (the “Draft Revision”) for public comment. The public consultation period will end on January 24, 2025.Continue Reading Draft Revision of China’s Anti-Unfair Competition Law Released
Following the Seventh Circuit’s recent decision in Motorola Solutions Inc. v. Hytera Communications Corp. Ltd., the United States may become a destination venue for resolution of global trade secret disputes. The Seventh Circuit held that U.S. trade secret law applies extraterritorially—reaching the theft of trade secrets outside the United States—so long as “an act in furtherance” of the offense was committed in the United States. The court held, for example, that marketing products in the United States qualified as an “act in furtherance” if the products were made using stolen trade secrets. Once an “act in furtherance” is identified, damages can be based on a company’s global sales. Motorola, for example, resulted in an award of $135.8 million in compensatory damages based on Hytera’s worldwide sales. Similar to the global impact of U.S. antitrust and anti-bribery laws, the Seventh Circuit’s decision highlights the critical importance to companies of considering U.S. trade secret laws. For example, if a company suffers the theft of its trade secrets anywhere in the world, it should consider the United States as a possible venue for bringing a legal claim. Conversely, companies should take measures to train employees and ensure compliance with U.S. trade secret laws even if the employees are located outside of the United States.Continue Reading Companies Should Take Notice of the Extraterritorial Reach of U.S. Trade Secret Law
On November 1, 2024, the Ministry of Commerce of China, together with five other governmental departments, issued the newly revised Measures for the Administration of Strategic Investment in Listed Companies by Foreign Investors (the “New Measures”). The New Measures introduce several key changes to the regulations governing foreign strategic investments in A-share listed companies and cross-border share swaps. The New Measures will take effect on December 2, 2024.Continue Reading China Revised Rules for Foreign Investors’ Strategic Investment in A-share Listed Companies
On October 23, 2024, the Ministry of Industry and Information Technology (“MIIT”) launched a pilot program expanding foreign access to value-added telecommunications services in four pilot regions, namely, Beijing, Shanghai, Hainan, and Shenzhen. Foreign enterprises participating in this pilot program can now wholly own and operate internet data centers (IDCs) and engage in online data processing and transaction handling businesses, which would give them opportunities to participate more extensively in China’s computing power and cloud service markets.Continue Reading China Launched Pilot Program Permitting Foreign Enterprises’ Greater Participation in Value-Added Telecommunications Services
On August 6, 2024, the China National Intellectual Property Administration (CNIPA) announced the fee standards for patent term adjustment (PTA) requests. Before this announcement, all submitted requests for PTA were pending review. Since August 27, 2024, CNIPA has published five batches of decisions, granting PTA to 690 invention patents, marking the official implementation of PTA in practice. This development will allow more Chinese invention patents to benefit from protection beyond the standard 20-year term. Below is a brief overview of the PTA under China’s Patent Law.Continue Reading China’s Implementation of Patent Term Adjustment
On September 7, China’s Ministry of Commerce, the National Health Commission, and the National Medical Products Administration issued a notice announcing the expansion of pilot programs for foreign investment in the healthcare sector (the “Notice”), marking a significant relaxation of China’s long-standing restrictions on foreign investment in the healthcare industry.Continue Reading China Expands Pilot Program for Foreign Investment in the Healthcare Sector
On August 9, 2024, China’s State Administration for Market Regulation (SAMR) released a draft of the Anti-Monopoly Guidelines for the Pharmaceutical Sector (hereinafter referred to as the “AMGP”) for public comment. The AMGP is intended to supersede the Anti-Monopoly Guidelines for the Active Pharmaceutical Ingredient (API) Sector (hereinafter referred to as the “API Guidelines”) enacted in 2021, which focuses on the regulation of monopolistic behaviors in the API sector of chemical drugs. Compared to API Guidelines, the AMGP expands anti-monopoly regime to the entire pharmaceutical sector, including traditional Chinese medicine, chemical drugs, and biological products.Continue Reading China Proposed New Anti-Monopoly Guidelines for the Pharmaceutical Sector
Since its implementation in 1995, the Arbitration Law of China (the “Current Arbitration Law”) has not undergone significant revisions, despite the substantial development in international arbitration practices. However, in 2021, the Chinese government started to formulate amendments to the Current Arbitration Law. On July 31, 2024, the Draft Amendment to the Arbitration Law (the “Draft Arbitration Law”) was approved by the Standing Committee of the State Council of China (the “State Council”). The Draft Arbitration Law is anticipated to come into effect in 2025 after legislative review.Continue Reading Highlights of the Draft Amendment to the Arbitration Law of China
In an effort to prevent and curb unfair competition in the online sphere, maintain fair market competition, encourage innovation, and protect the legitimate rights and interests of businesses and consumers, the State Administration for Market Regulation (SAMR) of China recently announced the “Provisional Regulations on Combating Unfair Competition in the Online Sphere” (hereinafter referred to as the “Regulations”), which will take effect on September 1, 2024.Continue Reading Provisional Regulations on Combating Unfair Competition in the Online Sphere: A Step Toward a Healthier Digital Economy
On May 30, 2024, the Ministry of Commerce of China (the “Ministry of Commerce”), the General Administration of Customs of China, and the Equipment Development Department of the Central Military Commission of China issued Announcement No. 21 of 2024 to implement export control measures on technology, software, and equipment in the aerospace sector (the “Measures”). The Measures will become effective on July 1, 2024. We have summarized the key provisions of the Measures in this post as follows:Continue Reading China to Implement Export Controls on Aerospace Technology, Software, and Equipment
On May 14th at 5 am in DC, the White House released its decision on the new section 301 tariffs. There is a 100% tariff on Chinese EVs effective this year (which is in addition to the usual 2.5% import duty on cars).
The tariff rate on Chinese lithium-ion EV batteries will increase from 7.5% to 25% in 2024, while the tariff rate on lithium-ion non-EV batteries will increase from 7.5% to 25% in 2026. The tariff rate on Chinese battery parts will increase from 7.5% to 25% in 2024.Continue Reading The Sky’s the Limit – Yet More Section 301 Tariffs on China