New Chinese Laws & Regulations of May, 2012 (1)

I.The Ministry of Commerce’s Approval of Google’s Acquisition of Motorola Mobility subject to Limitations

The Ministry of Commerce (the “MOC”) announced 2012 No. 5 Announcement on 19^th May, 2012. Accordingly, it decides to approve Google’s acquisition of Motorola Mobility with limitations. The Announcement states that MOC has received Google’s declaration of concentration of business operator for Google’s acquisition of Motorola Mobility on 30^th September, 2011. After MOC’s review and examination, it thought the declaration documents and materials are insufficient, and asked Google to supplement more. On 21^st November, 2011, MOC confirmed the supplementary documents and materials are satisfied with requirements, and accepted such declaration to initiate preliminary review and examination. Through preliminary review and examination, MOC thought such concentration declared is likely to eliminate and restrict the competition effect on China’s market of mobile intelligent terminal operation system, as a result, the term of review and examination has been extended twice. On 15^th May, 2012, Google submitted the final undertakings on resolution of competition issue. Ultimately, according to the Announcement, Google shall acquire Motorola Mobility subject to four obligations, including licensing Android platform on free and open basis, treating all original devices manufactures in non-discriminatory manner, obeying Motorola Mobility’s FRAND obligation on patent, and entrusting independent supervisors to supervise Google’s fulfillment of the obligations above.

According to China’s Anti-monopoly Law and relevant regulations, such acquisition belongs to the cases which shall be approved by MOC. Before then, the U.S.A Judiciary and European Commission have already unconditionally passed Google’s acquisition of Motorola Mobility, and MOC is regarded as the last threshold.

II. The State Administration of Taxation (SAT) Issued Notice on Several Tax Resolution Issues regarding to Amount of Enterprise’s Taxable Income (the “Notice”)

The SAT recently issued the Notice (2012 No.15) to clarify the policy to common problems occurring in tax collection by local taxation authority. The Notice covers such matters as tax deduction of fees and costs, administration of tax-free, and the coordination between tax deduction and enterprise’s accounting. The Notice applies in tax collection of enterprise’s income in and after 2011.

III. The State Council Issued Special Provisions on Labor Protection of Female Employee (the “Special Provisions”)

On 7^th May, 2012, the State Council released the latest revised Special Provisions, which has entered into effect. According to the Special Provisions, the maternity leave is added to 98 days, including 15 days of prenatal leave. In the case of a difficult child delivery, an additional 15 day shall be granted. In the case of multiple births, an additional 15 days shall be granted with each additional baby. Where a female employee who is pregnant for less than four months, 15 days of maternity leave shall be granted; and where a female employee who is pregnant for four months or more, 42 days of maternity leave shall be granted. Additionally, Special Provisions further specify the kinds of activities that a female employee, during her menstrual, pregnancy, lactation period and other special period shall not be appointed to engage in and other contents such as prevention and prohibition of sexual harassment.

This post is quoted from DeBund Newsletter of June.

Quoted from the Newsletter of DeBund Law Offices.

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Partner & Attorney-at-law of Shanghai DeBund Law Offices
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