New Chinese Laws and Regulations of January, 2012 (1)

Today, Bridge IP Law Commentary will introduce you the latest regulations and policies in China.

I. The Pilot Enterprises Levied Value-added Tax (VAT) in Lieu of Business Tax

Whose Tax Bearing are Increased can Apply for Financial Support in Shanghai

Recently, according to the Meeting on Pilot Reform of Levying VAT in Lieu of Business Tax, the Shanghai government has made the detailed implementation measures for transitional financial support policy mainly includes “enterprises shall apply in accordance with facts, various financial supports for various enterprises, and timely funds pre-allocation”. The finance and taxation departments shall arrange the pilot enterprises fill the Declaration (Review) for Changes of Tax Bearing by Enterprises Levied VAT in Lieu of Business Tax when they conduct pilot enterprises to declare for the tax and collect the tax. The pilot enterprises can, comparing the current tax bearing with that before reform, apply to the finance and taxation departments for financial support if the actual tax bearing is ultimately increased.

II. The National Development and Reform Commission and the National Commerce Jointly Issued the Catalogue of Industries for Guiding Foreign Investment (2011 revised)

With the approval of the National Council, recently the National Development and Reform Commission and the National Commerce jointly issued the Catalogue of Industries for Guiding Foreign Investment (2011 revised) (hereinafter referred to as the 2011 Catalogue). Comparing with the Catalogue of Industries for Guiding Foreign Investment (2007 revised) ( hereinafter referred to as the 2007 Catalogue), the 2011 Catalogue adds the catalogue of encouraged industries, however reduces the catalogue of restricted and forbidden industries, furthermore cancels the limitation on the proportion of foreign investment in the areas of new energy power generation equipments, etc.. The 2011 Catalogue will enter into effect on 30th January, 2012, meanwhile the 2007 Catalogue will be abolished.

III. The State Council Proposes to Take the Combat against IPR Infringement and the Manufacture and Sale of the Knockoff Commodities into Government Performance System

On 20th January, 2012, the State Council issued the Opinions on Further Work in the Combat against the IPR Infringement and the Manufacture and Sale of the Knockoff Commodities (the “Opinion”), which emphasizes a stronger administrative enforcement. By the Opinion, the local governments and relevant departments shall determine the stage work target, carry out special rectification regularly and continuously keep high stress attitude in combating infringing and forged and faked commodities, focusing on food, medicine, cosmetic, agricultural materials, building materials, machinery and electronic products, auto parts and other key commodities, as well as copyright, trademark patent and other highlight problems; Also, a stronger judicial criminal combat, consolidation on the effective connection between administrative enforcement and criminal judiciary and the establishment of the cross department coordination mechanism of enforcement. Furthermore, it’s notably that it proposes to bring the work in combating against IPR infringement and the manufacture and sale of the knockoff commodities into the government performance.

IV. The Ministry of Industry and Information Technology Issued the Several Provisions of Regulating the Internet Information Service Market

On 31st December, 2011, the Ministry of Industry and Information Technology issued the No.20 Order, Several Provisions of Regulating the Internet Information Service Market (hereinafter referred to as the Several Provisions). The purpose of the Several Provisions is to regulate the Internet information service and the regulated matters mainly include: a) listing the forbidden conducts those infringe the interests of other Internet information service providers, such as maliciously disturbing other Internet information service providers’ services on the user terminal; b) putting forward requirements for evaluation and test of Internet service or products; c) listing the forbidden conducts those infringe the legal rights and interests of the users such as demanding users use the designated service or products; d)regulating installment, operation and bundling software on the user terminal to demand the Internet information service providers note the users in significant ways and provide independent way to uninstall or close ; e) regulating the advertising pop-up windows; f) emphasizing the protection for users’ individual information, etc..

Other recommended posts on our website:
1. The Actual Term of Trademark Registration in China
2. How to Apply for the Trademark Record in China Custom
3. How to improve the success rate of trademark registration in China?
4. Matters for Attention in Trademark Refusal Review in China
5. Introduction of China’s Legal System of Trademark Renewal
6. Introduction on the Regulations concerning the Capital Contribution in IPR or Domain Name in China
7. The Copyright Registration in China Could Be FREE?
8. China Copyright Protection Term Longer than EU’s?
9. Matters for Attention in the Patent Preliminary Injunction Application in China(I)

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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Bridge IP Law Commentary is a website focus on the introduction of commercial laws in China, especially the intellectual property laws. All the posts here are our original works. And all news or cases referred here are from public reports, and our comments or analysis are of due diligence, neutrality and impartiality, representing our own opinions only and are our original works. You may contact us shall you have any opinions or suggestions.


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