In April of 2017, the Supreme People’s Court (“SPC”) and the Supreme People’s Procuratorate (“SPP”) passed and released a new judicial interpretation dealing with criminal infringement of citizens’ personal digital information (the “SPC Data Privacy Interpretation”)[1]. Approved and promulgated, the SPC Data Privacy Interpretation came into effect on June 1, 2017, and it enhances and clarifies existing criminal codes that deal with illicit possession, handling, and distribution of citizen’s digital personal information[2]. Continue Reading
Circular on Pilot Tax Policies for Venture Capital Firms and Individual Angel Investors
Posted in Tax LawIn order to promote venture capital investment and to support small to middle sized business, the Ministry of Finance and the State Administration of Taxation have jointly promulgated the Circular on Pilot Tax Policies for Venture Capital Firms and Individual Angel Investors (Cai Shui [2017] No. 38 ) (the “Circular“) on April 28, 2017. The tax policy will be provisional in the pilot areas of Beijing-Tianjin-Hebei, Shanghai, Guangdong, Anhui, Sichuan, Wuhan, Xi’an, Shenyang, and Suzhou Industrial Park. Continue Reading
China Capital Controls: Best Practices for Accelerating International Payments
Posted in Global TradeFollowing 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
Fair Competition Review System
On June 14, 2016, the State Council issued Opinions on Establishing the Fair Competition Review System in the Development of Market System (hereinafter “Opinions”), which finally uncovers the veil of this system. Fair competition review system was first mentioned in Opinions on Promoting Further Systemic and Institutional Reforms to Accelerate Implementation of Innovation-Driven Development Strategies, issued by the Central Committee of the Communist Party of China and the State Council on March 13, 2015, indicating “break the local protection, sort out and abolish the rules and practices impeding the formation of an unified national market, rectify the improper subsidies or the act to restrict or exclude competition by making use of the administrative power by local governments, and explore and implement the inspection system for a fair competition.”
State Council Issues Guideline to Boost General Aviation Industry
Posted in Foreign Direct InvestmentFollowing 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].
The Revised Provisions on the Administration of Business Licensing for General Aviation
Posted in Foreign Direct InvestmentThe Ministry of Transportation issued the revised Provisions on the Administration of Business Licensing for General Aviation (Order of the Ministry of Transportation [2016] No. 31)(“Order No. 31”) on April 7, 2016. Order No. 31, which became effective on June 1, 2016 amended the Provisions on the Administration of Business Licensing for General Aviation issued by the Civil Aviation Administration of China in 2007 (Order of the Civil Aviation Administration of China [2007] No. 176) (“Order No. 176”).
New Regulations on the Investment in the Interbank Bond Market by Foreign Institutional Investors
Posted in Capital MarketsThe 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.
China Continues Intensifying Supervision on Product Quality
Posted in Global TradeThe 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
PRC Anti-Unfair Competition Law (Draft Amendment 2016)
Posted in AntitrustOn 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
Revisions to Measure for Certification of High and New Technology Enterprise
Posted in Foreign Direct InvestmentOn January 29, 2016, the State Administration of Taxation, the Ministry of Finance and the Ministry of Science and Technology jointly issued the Revised Measure for Certification of High and New Technology Enterprise (Guo Ke Fa Huo [2016] No. 32) (the “Revised Measure”). The Revised Measure is an amendment to the Measure for Certification of High and New Technology Enterprise issued in 2008 (the “Old Measure”). The Revised Measure reduces certain qualification thresholds for High and New Technology Enterprise (“HNTE”) and expands the ambit of “high and new technology” in an effort to support the development of small and medium size high tech companies and encourage the innovation of new technologies in light of the changing environment. In addition, the Revised Measure introduces a number of new requirements to strengthen the supervision and administration of HNTE incentive. As a background information, the existing corporate income tax rate in China is 25%, company certified as HNTE is entitled to a reduced corporate income tax rate of 15%. Continue Reading
