China Laws and Regulations Update in May 2019

1.Governmental Investment Rules

Promulgated by the State Council

Document number: G.L.No.712

Promulgation date: 5 May 2019

Implementation date: 1 July 2019

The Rules clarifies the definition, scope, decision making process, annual investment plan, implementation, supervision and management and legal liability connected with government investments. According to the Rules, government investment funds should be used in non-profit services, public infrastructure, agriculture and rural areas, ecological and environmental protection, significant technological advancement, social administration, national security and other public areas, mainly in non-business projects. All investors should be treated equally when allocating government investment funds. Discriminatory conditions are forbidden. (Source: Website of the State Council)


China Laws and Regulations Update in December 2018

1.Patent Agent Regulations

Promulgated by the State Council

Document number: No.706 State Council Order

Promulgation date: November 19th, 2018

Effective date: March 1st, 2019

The Regulations sets forth patent agent responsibilities for their signature, stating that patent agents should be responsible for patent cases they have signed to handle. In addition, it contains details of patent agent aid services and encourages patent agencies to provide aid services for small businesses and low-income people, advising on patent applications and their legal rights. (Source: Website of the State Council)


China Laws and Regulations Update in July 2018

1.Circular on Promoting Economic Growth by Actively and Effectively Using Foreign Funds

Promulgated by the State Council

File number: No.19 issued by SC in 2018

Promulgation date: 15 June 2018

Effective date: 28 April 2018

The Circular states that the foreign funds “regulatory system” reform will continue. Provincial governments are responsible for approving and administering the incorporation and change of any foreign-funded company with a total investment of less than USD 1 billion in items on the negative list for admittance of foreign investment funds. Local governments are encouraged to attempt an intensive reform of the administrative permit system. Foreign-funded companies outside the negative list can complete the recordation and the AIC registration formalities through “one-stop” service. (Source: Website of the State Council)


China’s Latest Laws and Regulations in January 2013 (I)

I.  The Standing Committee of the National People’s Congress Adopted the Decision on Amending the Labor Contact Law.

On December 28, 2013, the Standing Committee of the National People’s Congress adopted and issued the Decision on Amending the Labor Contact Law of the People’s Republic of China, which will take effect on July 1, 2013. Four articles were revised, all relating to labor dispatch. The changes include an increase in the minimum registered capital of labor dispatching companies and administrative licensing to initially engage in the labor dispatch business; emphasizing the dispatched worker’s right of “equal pay for equal work;” declaring labor dispatch is a supplementary arrangement of employment and limiting the usage of labor dispatch; and imposing more serious liabilities on labor dispatching companies and the companies receiving the dispatched workers.


What Financial Support and Tax Preferential Policies can be enjoyed for Patent Application?

Nowadays, the State and local governments have issued serious financial support and tax preferential policies to encourage innovation of patents.

I. Financial Support Policies

Firstly, from the perspective of the State, the Chinese applicants applying to the State Intellectual Property Office (SIPO) for patents can enjoy the policy of reduction or postponement of the payment of the patent fee. The relevant expenses include the application fee (excluding printing expense and surcharge), substantive examination fee of the invention and 3 years’ annual fees from the year when the patent right is granted. On the other hand, for the Chinese applicants applying for patents overseas, they can obtain the financial support to the extent of certain amount, which includes the official fee of application for foreign patent, retrieval expense paid to patent retrieval organization, service expenses paid to the agency and so forth.


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 19th 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 30th September, 2011. After MOC’s review and examination, it thought the declaration documents and materials are insufficient, and asked Google to supplement more. On 21st 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 15th 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.