CAI is short for EU-China Comprehensive Agreement on Investment. December 30, 2020, just two (2) days before the enforcement of the Civil Code of the People of Republic of China (effective on January 1, 2021), the EU and China concluded the negotiations for a Comprehensive Agreement on Investment (“CAI”).   Even under the impact of COVID-19, this is another great event in 2020 for China after the passage and adoption of the Civil Code in May,2020.To investors from both the EU and China, this is no doubt a great event for them, because this will open a new era of improving market access c ..read more

Operating an enterprise in a foreign jurisdiction is a business activity that is rife with potential pitfalls. Most often, foreign enterprises must abide by both the laws of their jurisdiction of origin and the nation in which they operate their businesses. Which laws apply and to what degree largely depend upon the circumstances, but suffice it to say that a breach of criminal or civil law in either a company’s home jurisdiction or foreign place of operation is likely to land the organization in legal trouble. But what should a Wholly ForeignOwned Enterprise (“WFOE”) operating in China do to ..read more

Arbitration has been on the rise in China. Over the past few years, the China International Economic and Trade Arbitration Commission (“CIETAC”) has reported a rapid growth in commercial arbitration cases in China. Many of these arbitrations have involved wholly-foreign owned enterprises (“WFOEs”) engaged in the economic and infrastructural transformation the nation is pushing forward through the Belt and Road Initiative. The multinational economic collaboration necessary to support these and other national development efforts are leading to a more open and arbitration-friendly legal environm ..read more

Information flows fast in the digital age. What people read about Chinese companies on the web and social media affects both the company’s reputation and its revenues. As such, it has never been a more important time to become a good corporate citizen in the global marketplace. And for many Chinese companies, integrating social responsibility into their organizational culture is both a means of ensure compliance with Chinese law and a smart investment for the future. With that said, the benefits of being a socially responsible corporation do not accrue automatically. Rather, building a corpor ..read more

The world is changing more quickly than any of us ever expected it to. Like enterprises around the world, modern Chinese companies must provide for their customers and their employees as COVID-19 threatens to bring much of the global economy to an unanticipated standstill. At the same time, racial and gender-based discrimination has leapt to the forefront of the public consciousness thanks to #MeToo and the resurgence of the #BlackLivesMatter movement. The social, cultural, and operational shifts triggered by the convergence of these movements and the ongoing pandemic have created a business ..read more

On May 28, 2020, the  Civil Code of the People’s Republic of China (the Country) was adopted at the third session of the 13th National People’s Congress, the top legislature. Since March, 2015, lawmakers of the Country  began to codify the Country’s Civil Code by systematically incorporating existing civil laws and regulations, and modifying and improving them to adapt to new situations in the new era. It is really a long-awaited law. 1.  Awaited Civil Code of P R China: To some extent, the Civil Code is not a newly formulated civil law, but it covers every corner of life after ..read more

Women are rising up around the world, claiming a greater role in political and economic leadership. It’s happening everywhere and in the face of differing cultural values, history, and context that otherwise may have allowed for subjugation or discrimination. As difficult as this adjustment may be in the short-term, as women achieve positions of leadership and equal decision making in every level of society, they are bringing meaningful benefits to businesses, governments, and communities. Of course, no single culture can lay claim to originating the ideals of gender equality. But the movemen ..read more

In the past, irresponsible industries sought out partnerships with Asian countries in order to avoid environmental regulations. China and its neighboring countries were unwilling “pollution havens” simply by nature of the fact that we did not have the same stringent environmental regulations that became common across North America and Europe over recent decades. As a result, Pacific nations have suffered from escalating environmental degradation in addition to the impacts of global climate change. Economic growth in China has been remarkable thanks to a booming domestic economy and increasing ..read more

As the 2020 Draft Amendment to the Anti-Monopoly Law makes its way through the state legislative process, this first amendment in a decade will, if passed, be a comprehensive change to the current anti-monopoly regime. The amendment addresses all perspectives of monopolistic practices, including monopoly agreements, abuse of a dominant market position, the concentration of undertakings, abuse of administrative authority to eliminate or restrict competition, as well as enforcement and liability. This blog provides readers with an overall introduction to these significant changes. Monopoly Agre ..read more

China and the United States mutually benefit from their deeply intertwined relationships. The strong economic connection between the U.S. and China creates a natural incentive to keep trans-Pacific operations strong despite the challenges presented by the coronavirus pandemic. China’s COVID-19 Response Proves Effective When coronavirus first hit, the Chinese economy took a massive blow to productivity. Beyond the local impacts to the workforce, suppliers saw a decrease in demand because of a lower global consumption rate. This translated to a drop in private sector investments. However ..read more