Review of the New Food Safety Law (1)： Overview of the Revisions

Using sound taxation planning under ongoing system reforms

With the intensification of reform, China has undergone a number of tax reforms, two of which have been large. The first was in the 1990s, which saw the first steps taken in establishing a modern tax regime in China and completion of the laying of the foundations for the modern tax systems in China. The second started at the beginning of the second millennium and is still in the process of continuing intensification and improvement.

Seeking recourse against an employee for economic loss

With the increasing compliance awareness of employers, there has been a progressive increase in cases where an employer demands compensation from a worker for property loss incurred as a result of a breach by the worker of its compliance management rules and regulations. Due to the imperfections and ambiguities in Chinese laws, there is a debate in judicial practice as to how an employer can seek recourse against a worker who has caused it to incur an economic loss.

Compliance for FTZ companies operating outside the zone

According to the latest official statistics, by mid-September 2014, the newly established companies in Shanghai Pilot Free Trade Zone (FTZ) numbered more than 12,000. However, many of these registered companies are actually operating out of Shanghai FTZ for various reasons, raising a compliance issue: Should enterprises registered within the Shanghai FTZ run operations outside of the zone?

MIIT Lifts Foreign Equity Ratio Limit for Online Data and Transaction Processing Businesses in Shanghai FTZ

New Foreign Investment Law Takes Shape

Legal Review of New Regulations for Medical Devices (II)

Compliance in dismantling of a red-chip structure

The erection of a red-chip structure generally involves the founding shareholder of a domestic company first establishing an offshore special purpose vehicle (SPV) in the British Virgin Islands or Cayman Islands, using the SPV to establish a wholly owned subsidiary in Hong Kong, then having the Hong Kong subsidiary establish a wholly foreign owned enterprise (WFOE) in mainland China, which executes various agreements with the domestic company for the control of domestic equity, and finally having the SPV, as the financing platform, sell preferred shares or convertible loans to a fund to carry out private financing and realise the overseas listing of the SPV.

Guarding against compliance risks in real estate enterprise financing

In recent years, as the central government has intensified regulation and control, signs of adjustment have appeared in the real estate industry, with property enterprises facing such phenomena as weak sales, increase in inventory, tight cashflow, etc. The real estate industry is essentially capital intensive, naturally reliant on a demand for funding, and, particularly at the moment, the demand of real estate enterprises for financing is extremely pressing. Real estate enterprises are also characterised by a large demand for financing, tying up the proceeds for a long period of time, etc.

Legal Review of New Regulations for Medical Devices (I)