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

中国将对航空航天领域的技术、软件和设备实施出口管制措施

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

China’s Company Law was initially enacted in 1993, and was subsequently amended in 1999, 2004, 2013, 2018, and 2005. On December 29, 2023, the Standing Committee of the National People’s Congress approved a comprehensive amendment to the Company Law (as amended, the “New Company Law”). The New Company Law will come into effect on July 1, 2024. Under the New Company Law, 228 articles have been amended, which will impact many aspects of the governance and operations of Chinese companies, including but not limited to a company’s capital structure, corporate governance, shareholders’ obligation to contribute capital, duties of directors and officers, the effects of corporate resolutions, corporate bonds, the registration of a company, etc. In this and a few subsequent posts, we will explain in more detail the changes introduced under the New Company Law.Continue Reading Amendment to China’s Company Law (1): Contribution of Capital and Authorized Capital Concept

中国正式发布《促进和规范数据跨境流动规定》

On March 22, 2024, nearly six months after the release of the “draft Provisions on Regulating and Promoting Cross-border Data Transfer” (the “Draft Rules”), the Cybersecurity Administration of China (the “CAC”) formally released the “Regulations on Facilitating and Regulating Cross-border Data Flow” (the “New Regulations”), which came into effect on the date of release.Continue Reading China Issues Regulations on Facilitating and Regulating Cross-Border Data Flow