Companies doing business in China should take careful notice that China is now paying more attention to personal data privacy collection. This would be an opportune time for private companies to internally review existing data collection and management practices, as well as determine whether these fall within the new guidelines, and where necessary, develop and incorporate new internal data privacy practices.
Continue Reading China’s First-Ever National Standard on Data Privacy – Best Practices for Companies in China on Managing Data Privacy

By Ling Zhang

Do you have privacy in the era of information?

"On the Internet, nobody knows you’re a dog." First published in The New Yorker on July 5, 1993, this widely known and recognized saying has been quoted many times to describe the anonymous feature of Internet. However, now this description has been drifting from the truth.

The truth is that, some people using the Internet may know you better than yourself. When you log on Amazon, not only will the site greet you by name, the homepage will also suggest certain purchases. Surprisingly, you will be interested in at least one third of them. Your addresses have been recorded and Amazon will automatically calculate the delivery period. Besides those online shopping sites, getting visitors’ information is the common practice of online service and/or information providers. Youku and Netflix suggest videos to watch. Weibo and Facebook suggest friends to follow. Douban and IMDB suggest movie tickets to buy and parties to attend.Continue Reading “Actually, Someone Knows You are a Dog”– the Chinese Regulation Efforts on Private Data Protection

By Emily Tsai

The People’s Supreme Court issued a Judicial Interpretation on December 28, 2012, made effective on January 7, 2013, regarding the application of the Law of the People’s Republic of China on Application of Laws to Foreign-Related Civil Relationships (the “Law on Application of Laws”, or the “Law”). The Law determines the rules of the application of foreign laws under different scenarios as well as when Chinese law, as opposed to foreign law, applies to specific disputes.Continue Reading Supreme Court Issues Judicial Interpretation to Define Foreign-Related Civil Relationships

Comity among US and Chinese regulators may top this New Year’s wish list for United States-listed companies in China. After a failed six-month pursuit of a diplomatic solution, the SEC revived its federal court petition to force the PRC accounting member firm of Deloitte Touche Tohmatsu CPA, Ltd (“DTTC”) to produce audit working papers supporting its China-based audit of Longtop Financial Technologies.

If unresolved, the continued conflict between the mortar of Chinese privacy laws and the pestle of US regulatory pressure raises the possibility of fewer accounting firms that are willing or able to perform public company audits in China.Continue Reading Between Mortar and Pestle: SEC Pressure Grinds Auditors Against PRC State Interests

By James Zimmerman 

On October 9, 2012, the State Council’s Information Office released a white paper on China’s Judicial System and Reform Process. The report reviews China’s judicial system and reform process, and emphasizes the need for judicial institutions to maintain social justice, to improve judicial proceedings and supervision. The white paper also emphasizes the need to respect and protect human rights, and highlights that effective measures continue to be implemented to deter and prohibit confessions through torture, to better protect the rights of criminal suspects and defendants, and to protect the rights of attorneys in the course of performing their professional duties.Continue Reading State Council Issues a White Paper on China’s Judicial System and Reform

By Ling Zhang

On August 31, 2012, China’s legislature, the National People’s Congress, approved an amendment (“Amendment”) to the PRC Civil Procedure Law (“CPL”). The Amendment presents the second time in six months that China’s top legislative body has moved to modify China’s most fundamental laws on procedural justice, following the recent amendment to the PRC Criminal Procedure Law in March.Continue Reading New Amendment to PRC Civil Procedure Law: An Analysis

By James Zimmerman

  • CIETAC-Shanghai has declared its independence from CIETAC-China, and claims it’s a separate arbitral institution
  • CIETAC-Shanghai refuses to adopt the more flexible 2012 Arbitration Rules that are effective May 1, 2012
  • Significant risks exists for any party to a contract with a CIETAC clause given the potential for costly debates over jurisdiction, and the parties to a contract with a CIETAC clause would be wise to review their contracts and clarify, if necessary, the institution that they prefer to arbitrate their disputes
  • If a clause calls for arbitration before CIETAC-Shanghai, parties to a contract must decide if they desire to arbitrate under an older and less-flexible set of rules
  • For parties in foreign-related contracts that have the option to choose arbitration offshore, they would be wise to select an offshore forum

Continue Reading Dispute Resolution in China 2012: The Disintegration of CIETAC

By Michael Zhang

On May 8, 2012, the Supreme Court of China issued new “Rules on the Application of Law on Civil Cases Concerning Monopolistic Conduct” (the “Rules”). The Rules clarify some of the questions concerning anti-monopoly cases (“AML Cases”), which are civil cases based on alleged monopolistic actions. Since the promulgation of the PRC Anti-Monopoly Law in 2008, and through the end of 2011, approximately 60 anti-monopoly cases have been filed with different Chinese Courts (with eight of them still pending), and apparently no plaintiff has prevailed in any of these cases. This may be due to the difficulties faced by the plaintiffs in collecting evidence, or the fact that the plaintiffs and their advisors typically lack relevant expertise.Continue Reading China’s Supreme Court Issues New Rules On Civil Cases Based On Monopolistic Conduct

By Jiamu Sun

On March 14, 2012, the fifth session of the National People’s Congress adopted the latest revision to China’s Criminal Procedure Law (“Revised Law”). The Revised Law is the second amendment to the Criminal Procedure Law following its enactment in 1979 and its first amendment in 1996. Altogether, one hundred and eleven revisions have been made, concerning topics including, among others, evidence, compulsory measures, defense, investigation, trial procedure, and execution. The Revised Law will come into force on January 1, 2013. The Supreme Procuratorate of the People’s Republic of China has embarked upon revising corresponding judicial interpretations, including the Criminal Procedure Rules of The People’s Procuratorate and the Basic Norms of Enforcement Work by The People’s Procuratorate.Continue Reading China’s Parliament Adopts Revision to Criminal Procedure Law

By Jiamu Sun

On March 14, 2012, the fifth session of the National People’s Congress adopted the latest revision to China’s Criminal Procedure Law (“Revised Law”). The Revised Law is the second amendment to the Criminal Procedure Law following its enactment in 1979 and its first amendment in 1996. One hundred and ten articles have been revised concerning topics including, among others, evidence, compulsory measures, defense, investigation, trial procedure, and execution. The Revised Law will come into force on January 1, 2013.Continue Reading China Adopts Revision to Criminal Procedure Law

In a June 2011 report issued by the People’s Bank of China (and as prepared by the China Academy of Social Sciences) the PRC government found 18,000 Party and government officials fled the country since 1990 with over US$120 billion in government funds missing. The leadership has had significant challenges in stamping out corruption at multiple levels. Foreign companies should be aware of these efforts in dealings with officials and management of state-owned enterprises. Continue Reading China Corruption & White Collar Crimes Watch: China Strengthens Supervision Over Civil Servants