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The State Administration of Foreign Exchange (“SAFE”) issued a Notice on Foreign Exchange Administration Issues concerning Investment in the Interbank Bond Market by Foreign Institutional Investors (the “Notice”) on May 27, 2016, which further clarifies the supervision and administration of the investment in the interbank bond market by foreign institutional investors.
Continue Reading New Regulations on the Investment in the Interbank Bond Market by Foreign Institutional Investors

The State Administration of Industry and Commerce (“SAIC”) has promulgated the Measures for Supervision and Administration of the Product Quality in the Circulation Sector (流通领域商品质量监督管理办法) (“Measures”) on March 21, 2016, and these Measures will be effective on May 1, 2016.
Continue Reading China Continues Intensifying Supervision on Product Quality

China Premier Li Keqiang presided over a State Council executive meeting on February 14, 2016 in which it was decided that China would commence a new pilot program (the “Pilot Program”) in ten cities and provinces along with five new districts to provide more flexible rules to boost service trade. On February 22, 2016, the State Council issued the Official Reply of the State Council on Approving the Commencement of Service Trade Pilot Program (Guohan [2016] No. 40) (国务院关于同意开展服务贸易创新发展试点的批复) which disclosed more details about this Pilot Program.
Continue Reading State Council Approved Pilot Program to Promote Service Trade

On May 4, 2015, the National Development and Reform Commission (“NDRC”) and seven agencies including the National Health and Family Planning Commission and the Ministry of Human Resources and Social Security jointly published Opinions on Promoting Drug Price Reform (the “Opinions”).[1]  The NDRC also issued a Notice on Strengthening Monitoring of Drug Prices (“Notice”)[2] and a press release on the same day.
Continue Reading NDRC Issued Opinions and Notice on Drug Price Reform

On January 19, 2015, MOFCOM released a draft for comment of PRC Foreign Investment Law (the “FIL”). The deadline for comments is February 17, 2015. The purpose of the FIL is to replace the present-day laws for foreign investment, i.e. PRC Sino-foreign Equity Joint Venture Law, PRC Sino-foreign Contractual Joint Venture Law and PRC Foreign Invested Enterprises Law (collectively, the “JV Law”). The major difference between the JV Law and FIL are as follows.
Continue Reading Comparison Chart re JV Law and Foreign Investment Law (Draft for Comments)

China plans to promote consumption and open up its bank card clearing market. This is the outcome of a State Council meeting chaired by Premier Li Keqiang on October 29, 2014. “All qualified domestic and overseas enterprises can file applications for setting up bank-card clearing institutions in China.” The State Council has not given any specifics on foreign investors’ qualification currently, but said that the country must improve management, prevent risks to safeguard the legitimate interests of card users.
Continue Reading China Bank Card Clearing Market — A Feast for Foreign Investors?

The State Council has released the Several Opinions on Promoting Fair Competition and Maintaining Regular Order in the Market (the “Opinions”) (in Chinese, “关于促进市场公平竞争维护市场正常秩序的若干意见”) on July 8, 2014.
Continue Reading State Council Released Opinions on Promoting Fair Competition and Maintaining Regular Order in the Market

China Securities Regulatory Commission (the “CSRC”) issued a notice on May 9, 2014 to seek public comments for the Administrative Measures on the Acquisition of Unlisted Public Companies (Draft for Comment) (hereinafter referred to as the “Acquisition Measures“).
Continue Reading CSRC Issued New Drafts of Administrative Measures on Acquisition of Unlisted Public Companies for Public Comments

The government is moving in a direction to make the corporate formation and supervision process more user-friendly.  Two key changes are expected to happen in the near future.  The first is the abolishment of the registered capital requirement which has been a source of frustration for foreign investors and especially small-to-medium sized enterprises that seek to capture the market opportunities.  Secondly, the government plans to reform the current annual inspection process, which requires that all enterprises in China go through a detailed review process every year and at the risk of losing a business license, to become an annual reporting process.  These changes are intended to make life easier for enterprises, including foreign investors.
Continue Reading China to Relax the Corporate Registered Capital System and Reform the Annual Inspection Process

On August 20, 2013, the China State Council approved the application from the People’s Bank of China (Central Bank) to launch a new financial coordination mechanism led by the Central Bank to reinforce regulation in the financial sector, but without altering the existing functions of industry regulators.

The new system will be led by the central bank and will involve the chairmen of the CBRC (China Banking Regulatory Commission), CSRC (China Securities Regulatory Commission), CIRC (China Insurance Regulatory Commission) and SAFE (State Administration of Foreign Exchange). If necessary, the NDRC (National Development and Reform Commission), the country’s top economic planner, and the MOFCOM (Ministry of Finance and Commerce) will also be invited to take part in the meetings.Continue Reading China State Council launched new financial coordination mechanism