On May 8, 2023, the National Health Commission of the People’s Republic of China (the “PRC”), along with 13 other government departments of the PRC, issued the “Key Highlights for Combating Corruption in the Medicine Purchase and Sale Industry and Medical Services Industry for the Year 2023” to launch a comprehensive anti-corruption campaign in the pharmaceutical industry. Subsequently, local health commissions in Beijing, Shanghai, Guangdong, Hainan, and various other provinces and cities in the PRC released notices for corrective actions specifically targeting the pharmaceutical industry. On August 15, 2023, the National Health Commission of the PRC further unveiled the “Questions and Answers Regarding the Comprehensive Anti-Corruption Campaign in the Pharmaceutical Industry,” providing additional direction and guidance on the anti-corruption campaign. All these actions collectively have had and will continue to have a profound impact on the pharmaceutical industry in China.Continue Reading Overview of Recent Anti-Corruption Enforcement Actions in the Pharmaceutical Industry in China
Michael Zhang is a partner in the Corporate Practice Group, Antitrust Practice Group and the Intellectual Property Practice Groups. Michael is also the Managing Partner of the firm's Shanghai office.
This article examines the regulatory framework outlined in the “Regulations on the Supervision and Administration of Privately-Offered Investment Funds” in China. It provides an overview of the new regulations and their implications for privately-offered fund managers, custodians, and service agencies. Understanding and complying with these regulations is essential for stakeholders in the Chinese investment fund industry.Continue Reading Regulatory Framework for Privately-Offered Investment Funds in China: Implications and Compliance
According to the State Council’s Institutional Reform Plan released on March 7, 2023, the State Council will establish a National Bureau of Data (“NBD”), and it will be administrated by the National Development and Reform Commission (“NDRC”). Pursuant to the announced responsibilities, the NBD will be in charge of “coordinating the construction of data infrastructure, integrating and sharing data resources, and promoting the planning and development of digital China, digital economy, and digital society.”Continue Reading China to Establish National Bureau of Data
On December 24, 2021, China Securities Regulatory Commission (“CSRC”) issued draft rules and measures on the direct and indirect offshore listings of onshore companies for public comments. The deadline for submitting public comments is January 23, 2022.
Continue Reading China Securities Regulatory Commission Issued Proposed Rules on Offshore Listing
On October 29, 2021, the Cyberspace Administration of China (“CAC”) published the Security Assessment Measures of Data Cross-border Transfer (Draft for Comments) (the “New Draft Measures”) for public comments.
Continue Reading Overview on China’s New Draft Measures for Data Cross-border Transfer
When Chinese investors are considering US targets, it is important to keep in mind the requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR Act”). For deals meeting certain thresholds, the HSR Act requires the parties to submit HSR filings to FTC and DOJ, pay a filing fee, and wait 30 days before closing. The purpose of this is to permit FTC and DOJ to investigate the potential antitrust and competition issues before the transaction closes. Failure to make a filing and/or observe the 30-day waiting period can have severe consequences. Currently, the maximum civil penalty for noncompliance is $43,792 per day.
Continue Reading HSR Considerations For Chinese Investors In U.S. Companies 投资美国企业的中国投资者在HSR申报中需要注意的问题
Year 2020 definitely is a milestone year for China in building up and strengthening its regulatory legislation in the field of international trade. Following the Regulations on Unreliable Entity List (“UEL”), the Export Control Law came out on October 17 and will come into effect on December 1, 2020. Obviously, this Export Control Law of the PRC (“Export Control Law”) is one of the most important bricks to China’s regulatory Great Wall in the ongoing trade war to protect its key national security and interests.
Here is our quick bird’s-eye view of this new Export Control Law and some preliminary thoughts on its possible impact to the future cross-border transactions and multinationals’ China operations.
Continue Reading New Export Control Law: China Strengthens its Regulatory “Great Wall”
On September 19, 2020, China took a new strategic position in its ongoing trade confrontation with the United States. The Ministry of Commerce of the PRC (“MOFCOM”) issued Regulations on Unreliable Entity List (“UEL”) and drew wide public attention to the beginning of the PRC government’s retaliation against the Trump Administration’s recent restrictions on Chinese entities including Huawei, TikTok and WeChat. It is notable that MOFCOM deliberated with more than a year of internal discussion before implementing the UEL.
Continue Reading Certainties and Uncertainties Under China’s New Unreliable Entity List
The China (Shanghai) Pilot Free Trade Zone (PFTZ) officially launched on September 29th, granting 25 Chinese and overseas companies licenses to register in the PFTZ on its first day. The General Plan for the PFTZ was announced on September 27th, with implementation rules and specific regulations to come in October. It was first approved on August 22nd, 2013 by the State Council, promising favorable currency, tax, interest rate, and other policies that will promote business activity in Shanghai and Greater China, particularly in finance, shipping, trade, logistics, and real estate industries. The PFTZ covers a total of 28 km2, encompassing four existing bonded zones in Shanghai- Yangshan Free Trade Port, Waigaoqiao Free Trade Zone, Waigaoqiao Bonded Logistics Zone and Pudong Airport Comprehensive Free Trade Zone.
Continue Reading Shanghai Pilot Free Trade Zone (PFTZ)
On August 7, 2013, the National Development and Reform Commission (“NDRC”) fined six powdered milk companies – five foreign and one Hong Kong-based – RMB668 million (approximately US$109 million) for engaging in anti-competitive practices and illegal price-fixing, the largest fine ever for an Anti-Monopoly Law (“AML”) violation in China.
Continue Reading China Hands Milk Producers the Largest Anti-Monopoly Violation Fine
On March 29, 2013, the Guangdong High People’s Court ruled that Tencent, Inc. (“Tencent”) did not violate China’s Anti-Monopoly Law (“AML”). In the first lawsuit of its kind, Beijing Qihoo Technology Co. Ltd. (“Qihoo”) sued Tencent under the AML, claiming Tencent was engaging in anti-competitive behavior. They sought ¥150 million in damages and an injunction against Tencent.
Continue Reading Qihoo 360 v. Tencent: A Landmark Decision under China’s Anti-Monopoly Law