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Following the depreciation of Chinese currency RMB and the reduction in China’s foreign exchange reserves[1], foreign companies and individuals in China have met hurdles in moving their money out of China, and overseas companies have experienced delays of payments by their Chinese business partners. This article will discuss the recent tightened controls over capital outflows from China to overseas and offer the best practical solutions to accelerate the funds transfer progress.
Continue Reading China Capital Controls: Best Practices for Accelerating International Payments

Following a surge of investment in China’s general aviation sector around 2013, the sector has experienced down-turns due to the overall slowing of the economy in 2015.  On May 17, 2016, the General Office of the State Council announced a guideline to boost China’s general aviation (“GA”)[1] industry, named the Guiding Opinions to Promote the Development of the General Aviation Industry (Guo Ban Fa [2016] No. 38) (“Guideline”).  The Guideline marks the first time the state council, the highest administrative organ, has made plans to boost the development of China’s GA industry[2].
Continue Reading State Council Issues Guideline to Boost General Aviation Industry

On February 25, 2016, China’s Legislative Affairs of the State Council (“SCLAO”) released the Draft Amendment of PRC Anti-Unfair Competition Law (“Draft Amendment”) and started to solicit public comments on the Draft Amendment until March 25, 2016.  Click here for the unofficial translation of the Draft Amendment.  The current PRC Anti-Unfair Competition Law came into effect early on December 1, 1993 and with more than twenty years’ enforcement, the regulatory authority of unfair competition-State Administration for Industry & Commerce (“SAIC”)-decided to amend the law to fit into the ever changing market environment. 
Continue Reading PRC Anti-Unfair Competition Law (Draft Amendment 2016)

On May 13, 2015, the highest judicial institution in China, the Supreme People’s Court, issued the Detailed Rules of Implementation of the Provisions of the Supreme People’s Court on Case Guidance Work (“《最高人民法院关于案例指导工作的规定》实施细则”) (“Detailed Rules”).  This judicial interpretation marks a significant step in improving the Case Guidance System (案例指导制度) in China’s judiciary.  In the past five years, ten sets of cases totaling fifty-two cases (see Appendix) have been released by the Supreme People’s Court.  The so-called Case Guidance System was formally established on November 26, 2010, with the issuance of the Provisions of the Supreme People’s Court on Case Guidance Work (“最高人民法院关于案例指导工作的规定”).
Continue Reading Clash of Civil and Common Law: Case Guidance System v. Stare Decisis

On January 19, 2015, China’s foreign investment regulatory authority Ministry of Commerce (“MOFCOM”) released a draft of new Foreign Investment Law (“Draft Law”)  (See blog article Comparison Chart re JV Law and Foreign Investment Law Draft for Comments dated February 10, 2015).  This Draft Law is expected to come into force in the next couple of months overhauling the 25-year-old regulatory framework of inbound foreign investment in China (See Unofficial English Translation of the Draft Law by AmCham China).
Continue Reading PRC Foreign Investment Draft Law: What You Should Know

Summary

On November 17, 2014, China and Australia completed their negotiations for a China-Australia Free Trade Agreement (“ChAFTA”) by signing a Declaration of Intent which contained the essential elements of the free trade deal and commits both countries to draft the legal text of the agreement for signature at a later date.  This agreement ends almost a decade of free trade negotiations between China and Australia.  The ChAFTA is significant because it will initially lower and ultimately eliminate tariffs on a wide range of exports between the two countries boosting bilateral trade between the world’s second largest economy and a significant U.S. free trade partner in Asia.Continue Reading China and Australia Conclude Landmark Free Trade Agreement Negotiations

On October 20, 2014, the State Council announced a guideline to boost China’s sports industry, named Opinions on Accelerating the Development of Sports Industry and Promoting Sports Consumption, Guofa [2014] No. 46 (国务院关于加快发展体育产业促进体育消费的若干意见) (“Guideline”).  The Guideline marks the first time the Chinese government has tapped into the economic value of the sports industry.  With the issuance of the Guideline, the market expects China to be the biggest fitness market in the world within the next twenty years.  In particular, foreign investors can see great opportunities as the Guideline encourages foreign investors to invest in sports industry in China.
Continue Reading State Council Issues Guideline to Boost Sports Industry

On August 27, 2014, the National Health and Family Planning Commission (“NHFPC”) and Ministry of Commerce (“MOFCOM”) jointly released Notice on Conducting Pilot Work of Setting Up Wholly Foreign Owned Hospitals (关于开展设立外资独资医院试点工作的通知) (“Notice”) dated on July 25, 2014.  The Notice allows foreign investors to set up hospitals in the form of wholly foreign owned enterprises (“WFOE”) in Beijing, Tianjin, Shanghai, Jiangsu Province, Fujian Province, Guangdong Province and Hainan Province[1].  Under the Notice, either setting up a new hospital or acquiring an existing private hospital is allowed.  This move marks a significant step of the opening-up of China’s medical markets to foreign investment.  Previously, the equity ratio of foreign investment from outside Hong Kong, Macao and Taiwan in a hospital should not exceed 70%[2].
Continue Reading China to Open Up Its Hospital Market to Foreign Investment on a Pilot Program

On June 17, 2014, the Ministry of Commerce (the “MOFCOM”), the major regulator of foreign investment in China, issued the Notice on Improving Foreign Investment Review Administration (商务部关于改进外资审核管理工作的通知) (the “MOFCOM Notice”) to make it clear that registered capital contribution requirements for foreign invested enterprises (“FIEs”)[1] have been relaxed.
Continue Reading MOFCOM to Confirm Relaxation of Registered Capital Contribution Requirements for FIEs

Introduction

On May 19, 2014, the State Administration of Foreign Exchange (“SAFE”) released Notice on the Promulgation of Foreign Exchange Administration Rules on Cross-border Guarantee (国家外汇管理局关于发布《跨境担保外汇管理规定》的通知) (“Circular 29”) with a view to promoting cross-border guarantee activities and convertibility under capital accounts. Circular 29 took effect on June 1, 2014 and twelve[1] other SAFE regulations regarding cross-border guarantee will be abrogated.Continue Reading SAFE to Relax Foreign Exchange Control over Cross-border Guarantee

Introduction

On December 2, 2013, the State Council issued the Circular Concerning Catalogue of Investment Projects Requiring Government Approval (2013 Version) (国务院关于发布政府核准的投资项目目录（2013年本）的通知) (the “2013 Catalogue”) and introduced new changes[1] to governmental approvals falling under the jurisdictions of the two approving authorities, the National Development and Reform Commission (“NDRC”) and the Ministry of Commerce (“MOFCOM”). The objective is to overhaul China’s decades-old, approval-based cross-border investment regulatory system that has restricted growth. The liberating effects from less approval requirements are deemed to bring a new boom in outbound investment to both private investors and Central SOEs (state-owned enterprises managed by the central government), covering a wider range of industries apart from natural resources related industries traditionally favored by Central SOEs.Continue Reading China to Relax Governmental Approvals for Outbound Investment