China Laws and Regulations Update in Augest 2017

1.Catalogue of Industries for Guiding Foreign Investment (Revised Edition 2017)

Promulgated by the National Development and Reform Committee

File No. No.4 Order of the NDRC

Promulgation date: 28th June 2017

Effective date: 28th July 2017

The Catalogue of Industries for Guiding Foreign Investment (Revised Edition 2017) first introduced the negative list for foreign investment access, containing 63 articles about restrictions and prohibitions, decreased by 30 articles compared with the 2015 edition. The Catalogue shall be the basis on which the pre-establishment national treatment and negative list administration model is implemented. No measure should be taken to restrict foreign investment access to any area outside the scope of the negative list. The new Catalogue further relaxes the restrictions on foreign investment access to service, manufacturing and mining industries and especially abolishes the restrictions on foreign investment access to industries of oil and gas for special use, precious metals, lithium ores, etc. (Source: Website of the National Development and Reform Committee)

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China’s Latest Laws and Regulations in May 2013

I.  The State Administration of Foreign Exchange Has Issued various new regulations such as the Measures for the Administration of Foreign Exchange in Areas under Special Customs Supervision, Measures for the Administration of Registration of Foreign Debts and Measures for the Administration of Foreign Exchange of Direct Investment inside China by Foreign Investors.

In May 2013, the State Administration of Foreign Exchange issued a series of measures to regulate foreign exchange, including the Measures for the Administration of Foreign Exchange in Areas under Special Customs Supervision, Measures for the Administration of Registration of Foreign Debts, and Measures for the Administration of Foreign Exchange of Direct Investment within China by Foreign Investors. Meanwhile, the List of Regulations for the Administration of Foreign Exchange of Direct Investment within China to be Abolished and the Guidance of Operation of Business of Direct Investment within China were also issued at the same time. The new measures and regulations simplify and integrate the procedures related with foreign investment.

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The Validity of Foreign Investor’s Share Holding In the Name of Chinese Dormant Citizens

By Luo Yanjie

As reported, 24quan.com, a Chinese daily-deal website, is undergoing a contentious conflict (note: the link is in Chinese) between its operation team and investors. Berjaya Corporation Bhd (Berjaya), the biggest investor of the website and registered in Malaysia, accused the operation team of withholding  RMB 2 million yuan with no authorization, yet the team responded by saying that the investor was unilaterally deducing the share held by the team from 40% to 3%. Currently, the website and the company is under the control of the team, who has dismissed the staffs appointed by the investor, and in retaliation, the investor announce that their funding cease.

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Newly Revised Investment Catalogue: JV can Operate Online Music in China without VIE now

The Guiding Catalogue of Foreign Investment in China (the Catalogue) revised in the last year has come into effect on 30th January, 2012. The new Catalogue contains some modified regulation on foreign investment in China, and today Bridge IP Law Commentary would like to introduce you the change in respect of internet business in the Catalogue. (the image above is the logo of myspace.cn, invested by Mr. Rupert Murdoch through VIE, which is claimed temporary shut down for technology reasons)

I. Permission of foreign investment in online music industry

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