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Juha Lassila

Law on laws governing civil relations involving foreign elements - Lexology - 0 views

  • The Law covers civil and commercial relationships involving foreign natural persons and legal persons in a number of fields, including marriage, inheritance, property rights, general contractual obligations, labour law, tort and intellectual property rights. The Law clarifies the rules on the applicable laws governing civil disputes in several areas where PRC laws are currently silent, including acts of agency, trusts, arbitration, pledges of rights, labour contracts, and product liability.
  • This means that, for example, all shareholder agreements in relation to say a two-party wholly foreign-owned enterprise would have to be governed by PRC law.
  • The current PRC laws require that several types of contracts which relate to foreign investment in China such as Sino-foreign equity joint venture contracts, contracts for purchase of equity interests or assets of a domestic enterprise by foreign investors[6] must be governed by PRC Law.
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  • The Law also states that where the parties have chosen a foreign governing law, the court or the arbitration tribunal should investigate and determine the applicable foreign laws, presumably through expert testimony (as in the past). Where the parties select foreign governing laws by agreement, it is the parties' responsibility to provide copies of the selected foreign governing law
  • In addition, the Law expands to tort and property rights in movables the scope of areas where, in the context of a so-called foreign-related contract ("涉外合同"), the parties are free to choose their own governing law.
  • In particular, the Law stipulates two important general principles for determining the application of governing laws for foreign-related civil disputes: party autonomy and closest connection
  • However, the Law is not designed to radically change the current rules of conflicts of laws in China. The requirements to apply mandatory Chinese laws which are provided by other laws are maintained under the Law
  • The rules of conflicts of laws stipulated under other civil or commercial laws, which are not covered by the Law, also remain unchanged.
Juha Lassila

New social insurance law finally passed - Lexology - 0 views

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    The new Social Insurance Law will formally take effect on July 1, 2011. Foreign nationals working in China should participate in the country's social insurance system. If an employer does not make social insurance contributions on time or underpays social insurance contributions, the social insurance authorities now have greater authority and additional tools to force employers to make back payments of amounts owed.
Juha Lassila

What constitutes anti-competitive tying in China? The Wuchang Salt Company case - Lexology - 0 views

  • Article 7 of the AML prohibits business operators operating in industries pertinent to the national economy and national security from using their market power to harm the interests of consumers. Article 7 also stipulates that these business operators must conduct their businesses “honestly and trustworthily and exercise self discipline”
  • Article 17(5) of the AML prohibits business operators from abusing their dominance by bundling the sale of commodities without a valid reason or imposing unreasonable terms within a transaction.
  • National Development and Reform Commission (NDRC)
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  • Hubei Province Price Bureau (HPPB)
  • HPPB announced that WSC had violated Articles 7 and 17(5) of the AML:
  • Wuchang Salt Company (WSC) (a supplier of table salt)
  • made their supply of salt (to local distributors) contingent on purchase of “Huo Li Er Ba” branded washing detergent powder.
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    AML = Anti-Monopoly Law
Juha Lassila

Minimum Capital Requirements. Good News For Small Companies Looking At Shanghai. : Chin... - 0 views

  • Most jurisdictions require the registered capital be equal to the first full year of expenses of the WFOE.
Juha Lassila

The Ins and Outs of Employment Background Checks in China - Davis Wright Tremaine - 0 views

  • Criminal records check
  • According to relevant laws and regulations, only persons without any criminal convictions may perform certain jobs,1 and applicants must obtain a Certificate of No Criminal Conviction (“CNCC”) from a local public security bureau before performing such jobs (“CNCC Jobs”).
  • commercial investigations are not recommended.
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  • Educational background and qualifications checks
  • Employers can check job applicants’ higher education, whether completed in China or abroad, via a website designated by the PRC Ministry of Education. In the case of education completed outside of China, an employer may require a job applicant to present a certificate issued by the ministry confirming the applicant’s education.
  • References from previous employers
  • It is important to obtain the job applicant’s prior written consent before initiating the reference check.
  • Sharing an applicant’s information
  • employer will typically want to share a job applicant’s or an existing employee’s information with affiliates, such as its parent company or subsidiary, to facilitate internal human resources management.
  • If an applicant’s personal information is protected as private, it can not be disclosed to a third party without the applicant’s consent.
  • Conclusion Criminal records Some jobs may only be performed by people without a criminal conviction. Employers must check a job applicant’s criminal record before offering a CNCC Job. Employers may check a job applicant’s criminal record by requiring the applicant to provide a CNCC. Employers should avoid checking criminal records through a commercial investigation company. Employers may use information received via a criminal check to determine employment. Privacy Generally, it is lawful for an employer to check a job applicant’s educational background and qualifications, ask for a reference from the applicant’s previous employer, and make an employment decision based on the result of these checks. It is important to obtain a job applicant’s written consent before initiating a reference check with the applicant’s previous employer. An employer may share background-check information with its affiliates providing it has obtained the job applicant’s prior written consent.
Juha Lassila

New provision could change contract law in China but judges remain conservative - Lexology - 0 views

  • many parties to such contracts requested modification or even rescission of their contracts under the changed circumstances
  • court to modify or rescind a valid contract:
  • objective circumstances
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  • force majeure
  • not a result of a normal commercial risks
  • would be unfair and inequitable to one party or the objective of the contract cannot be fulfilled
  • In deciding whether to grant a request for modifying or revoking a contract, the people’s courts will primarily consider (1) the principle of fairness and (2) the surrounding facts involved in each individual case.
  • to not permit debtors escape from performing their debt repayment obligations
  • If based on the specific situations of individual cases, the court considers applying this provision, the trial court must first report this case to the high court at the provincial level for examination and approval. When necessary, the case may be reported to the SPC for examination and approval. Having the high court at the provincial level as the primary authority for applying Article 26 ensures unified application at least by province.  
Juha Lassila

China's 12th Five Year Plan: A Preliminary Look, Part II : China Law Blog : China Law f... - 0 views

  • key targets of the draft
  • Increased domestic consumption
  • Minimum wage standard to increase by no less than 13 percent on average each year
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  • CCTV said there will be a cut back on rail and road investment over the next 10 years in comparison to the previous 10 (doesn't take a rocket science to know that most of the R&D budget was spent during the previous 10 years)
Juha Lassila

China's 12th Five Year Plan: A Preliminary Look : China Law Blog : China Law for Business - 0 views

  • Resource constraints: energy and raw materials. Mismatch in investment and imbalance in consumption. Income disparity. Weakness in capacity for domestic innovation. Production structure is not rational: too much heavy industry, not enough service. Agriculture foundation is thin and weak. Urban/rural development is not coordinated. Employment system is imbalanced. Social contradictions are progressively more apparent. Obstacles to scientific development continue to exist and are difficult to remove.
  • Most planners are pushing for tripling of the average wage for factory workers during this 5 year plan
Juha Lassila

China's 12th Five Year Plan: The Coming Storm On Wages : China Law Blog : China Law for... - 0 views

  • People are serious talking about 15-20% rises for the next five years,
  • Andy Xie, ex-Morgan Stanley economist, wrote an excellent essay some months ago predicting a 400% increase in unskilled / semi-skilled Chinese worker wages over the next 10 years.
  • The Chinese Govt, Labour Bureaus and Unions will no longer have the same passive role in facilitating low wages or suppressing workers demands
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  • 3-5% annual wage increases will be unacceptable
  • opportunities for developing incredible and highly profitable consumer businesses will explode
  • extraordinary growth in premium consumer businesses
  • much larger, more brutal and dynamic mass consumer markets
  • distribution of that wealth is unfair and unhealthy.
Juha Lassila

Foreign Invested Partnership - Presentation by Dezan Shira - 0 views

  •  
    FIP-Presentation-2010.pdf (application/pdf Object)
Juha Lassila

Chinese Partnership - A New Alternative… A Better One? | Taxand - 0 views

  • Effective from March 1, 2010 Chinese partnerships can be formed with: two or more foreign enterprises or individuals foreign enterprise(s) or individual(s) and Chinese individual(s) enterprise(s) or other organisation(s). In addition foreign enterprises and individuals are allowed to become partners in a partnership formed by Chinese individuals, Chinese enterprises or other organisations. Good news for foreign investors?
Juha Lassila

Ground breaking rules governing online games - Lexology - 0 views

  • Foreign companies are still not allowed to invest in online game business in China.
Juha Lassila

Right of rep office to terminate secondment of agency employee upheld - Lexology - 0 views

  • Right of rep office to terminate secondment of agency employee upheld
Juha Lassila

Employee's absence from work does not imply resignation - Lexology - 0 views

  • Employee’s absence from work does not imply resignation
Juha Lassila

Real-name registration required for new mobile numbers in China - Lexology - 0 views

  • Real-name registration required for new mobile numbers in China
  • Online gamers must provide their real names, identity numbers and contact information.
Juha Lassila

New rules on the litigation of cases involving foreign investment enterprises - Lexology - 0 views

  • The Provisions deal mainly with cases involving such FIEs as contractual joint ventures, equity joint ventures and wholly foreign owned enterprises
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