New Chinese Laws and Regulations in March of 2012, I

I. The Standard on Minimum Salary in Shanghai Municipal will be Increased from 1^st April this year

On 14^th March, the Shanghai Municipal Human Resource and Social Security Bureau issued the Notice on Adjustment of the Standard on Minimum Salary in Shanghai; accordingly, the standard on Minimum monthly salary will be increased from RMB 1280 to RMB 1450, and the standard on minimum salary per working hour will be increased from RMB 11 to RMB 12.5 from 1^st April. The standard of lowest monthly salary excludes the amount of social insurance premium and housing fund, which shall be paid by the units separately according to laws, regulations and rules. Therefore, the standard on minimum monthly salary in Shanghai Municipal still remains the highest in China.

II. The Shanghai Municipal Issued the Twelfth Five-Years’ Plan of Attracting Foreign Capital and Investment (the “Plan”)

The Shanghai Municipal Development and Reform Commission issued the Plan this month. The Plan reviews the situation of the foreign capital and foreign investments attracted in term of the Eleventh Five-Years’ Plan, also proposes the guidelines, main objects, targets and security measures for attracting foreign capital and foreign investments in term of the Twelfth Five-Years ‘Plan. According to the Plan, Shanghai Municipal will attract foreign capital stably in transformational ways, and the estimated total amount of actually realized foreign capital will be no less than 10 billion dollars in consideration of the development circumstance and basic conditions in the further five years. For foreign investments, it will enter into rapid development and the direct foreign investments will be increased to no less than 12 billion with the improved quality and efficiency. Additionally, the Notice emphasizes promoting form of the industrial structure giving priority of service economy; encouraging foreign investment strategic new industries and advanced manufacture industry; advancing the establishment of a center of international finance, shipping and trade; promoting expansion of indirectly usage of foreign capital mainly by knowledge cooperation; encouraging and supporting the capable enterprises to develop foreign investments and improve the linkage development of “Bring In and Go Out” .

III. The People’s Bank of China(the “PBOC”) and Other Six Ministries or Commission Jointly Issued the Notice on Issues Concerning Management of Enterprise Settling in RMB in Export Trade(the “Notice”)

The PBOC, Ministry of Finance, Ministry of Commerce, General Administration of Customs, State Administration of Taxation, and China Banking Regulatory Commission jointly issued the Notice in this month. According to the Notice, the entities participate in RMB settlement in export trade won’t be listed in the pilot enterprises, and all the enterprises qualified in export and import can practice RMB settlement in export trade according to Measures for the Administration of Pilot RMB Settlement in Cross-board Trade. Moreover, the Notice specifies that the authorized departments will focus on supervising the enterprises doing relatively serious misconducts in violation of laws in tax, customs and finance during the recent two years and urge them to do business legally in order to develop RMB settlement in export trade normally and in accordance laws and regulations, also to prevent risks and improve the efficiency of supervision. As a whole, the enterprises in the business of import and export trade, service trade and other current items have the option to RMB settlement, receipt and payment.

IV. The Ministry of Commerce Issued the Revised Administrative Measures for the Information Disclosure of Commercial Franchise (the “Administrative Measures”)

The revised Administrative Measures has been issued by the Ministry of Commerce this month, which will come into effect on 1^st April, 2012. Comparing with the old version of Administrative Measures, the revised Administrative Measures is specific for its expanded scope of affiliated parties that includes natural person shareholders, the more detailed contents of information disclosure, strengthened confidentiality obligations of franchisees and the revised conditions for termination of the contract by one party and so on.

Quoted from the Newsletter of DeBund Law Offices.
Mr. You Yunting
Founder & Editor-in-Chief of Bridge IP Law Commentary
Partner & Attorney-at-law of Shanghai DeBund Law Offices
Email: Bridge@chinaiplawyer.com, Tel: 8621-5213-4900,
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