China updates
Banking
Contributed by Jingtian & GongchengCBRC issues new circular to regulate private lending
- China
- June 08 2018
The China Banking Regulatory Commission's Circular on Matters concerning Regulating Private Lending and Maintaining Economic and Financial Order recently came into effect. The circular was formulated in accordance with various laws and measures and establishes the basis for clarifying credit rules and prohibiting illegal private lending. According to government officials, the circular will be implemented in three stages.
CBRC publishes new rules on equity management of commercial banks
- China
- April 06 2018
The China Banking Regulatory Commission (CBRC) recently issued its Interim Measures for the Equity Management of Commercial Banks. The measures have tightened the CBRC's regulation of the information disclosure and reporting requirements imposed on material shareholders that have a significant impact on the operation and management of commercial banks established in China.
State Council relaxes requirements for foreign-invested banks to conduct Rmb business in Beijing
- China
- January 19 2018
The State Council recently announced a pilot programme that has lifted the requirements on foreign-invested banks entering the renminbi yuan (Rmb) business market in Beijing until May 5 2018. As a result, foreign-invested banks are no long required to have operated for more than one year before applying to conduct Rmb business in Beijing. The programme is another step towards encouraging foreign investment in the financial sector.
PBOC announces revised measures for registration of pledge of accounts receivable
- China
- November 24 2017
The People's Bank of China recently released revised measures for the registration of a pledge of accounts receivable. The revised measures have broadened the definition of 'accounts receivable' and introduced a procedure for registering to transfer accounts receivable. For flexibility and convenience, the revised measures also adjust the registration term of a pledge of accounts receivable and extend the time limit for notifying a pledgee of any objection to its registration.
New policy on ICO fundraising activities
- China
- September 29 2017
The Internet Financial Risk Special Rectification Work Leading Group Office recently issued a notice on rectification work regarding tokens issuance financing. In addition, a number of national authorities issued a joint announcement on the prevention of financial risks associated with token issuance. Following issuance of the notice and the joint announcement, initial coin offerings are now an illegal and unregulated method of raising money.
Competition & Antitrust
Contributed by AnJie Law FirmShifting alliances under Chinese merger control regime
- China
- May 17 2018
The Ministry of Commerce recently promulgated the Measures for the Review of Concentrations of Business Operators (revised draft) for consultation. However, the revised draft still lacks provisions on the shifting alliances concept. The relevant Anti-monopoly Law enforcement agencies should consider this concept in future, as acknowledging it at the legislative level will finally place China's antitrust system among those of the world's most advanced anti-monopoly jurisdictions.
Anti-monopoly Law enforcement against collective boycotts
- China
- May 10 2018
The Anti-monopoly Law enforcement agencies are increasingly investigating and finding fault with collective boycotts among competitors. As the presumption of illegality for collective boycotts requires a high level of compliance, businesses should be aware that although an independent decision not to deal with distributors or suppliers may not raise Anti-monopoly Law concerns, an agreement with competitors not to do so could raise such concerns.
How will merger of antitrust enforcement agencies affect Anti-monopoly Law enforcement?
- China
- April 19 2018
The State Council recently submitted a proposal to the National People's Congress concerning the council's institutional reform programme. The proposal has shed light on the plans to consolidate the antitrust enforcement powers of the three antitrust agencies under the State Administration for Market Supervision. Although the merger is significant in terms of institutional reorganisation, it will not fundamentally change Anti-monopoly Law enforcement activities in China.
NDRC antitrust enforcement in 2017
- China
- April 12 2018
In 2017 the National Development and Reform Commission actively carried out legislative work and formulated and promulgated industrial guidelines and enforcement procedures. In addition, it remained active in its antitrust enforcement by not only penalising a variety of enterprises for anti-competitive conduct, but also targeting administrative agencies that had abused their administrative power in order to restrict or eliminate competition.
Pharmaceutical companies face harsher antitrust compliance challenges
- China
- January 18 2018
The National Development and Reform Commission recently released price conduct guidelines for business operators active in the drugs prone to shortages and active pharmaceutical ingredient (API) markets. The guidelines strengthen the API market's price supervision mechanism, clearly regulate market pricing behaviour with regard to drugs prone to shortages and APIs and provide practical guidance for relevant pharmaceutical companies with regard to their pricing behaviour.
Energy & Natural Resources
Contributed by Broad & BrightNew measures enhance development of distributed wind power projects
- China
- June 11 2018
The National Energy Administration recently issued the Interim Administrative Measures for the Development and Construction of Distributed Wind Power Projects, which aim to simplify the existing approval and development process for wind power projects. The development of distributed wind power will help to realise the sustainable development of China's wind power industry, accelerate energy transformation and revitalise the development of the national economy.
NDRC officially initiates national carbon emission trading system
- China
- January 29 2018
The National Development and Reform Commission (NDRC) recently promulgated its Plan for Building the National Carbon Emission Trading Market (Power Generation Industry). According to the NDRC, the plan's implementation will play an important role in establishing the national carbon market and constitutes the official start of the national carbon emission trading system. However, a robust carbon emission trading system and a fair market trading environment for investors are still a long way off.
Supreme Court issues judicial interpretation to regulate mining rights allocation
- China
- November 13 2017
Under the existing legal framework, the state owns all mineral resources in China and the allocation of mining rights is heavily regulated. However, the various courts have different understandings of the relevant laws and regulations and judgment criteria for mining right disputes vary from court to court. As such, the Supreme People's Court recently issued an interpretation on the application of law in hearing cases involving mining right disputes.
Recent reform of mineral rights granting system
- China
- September 18 2017
The Ministry of Land and Resources (MLR) recently announced the Mineral Rights Granting System Reform Programme, which aims to promote the competitive granting of all types of mineral right in China. The programme requires the competent authorities to implement tender, auction and listing methods to grant mineral rights and imposes strict restrictions on the granting of mineral rights via agreements. It also requires the MLR to delegate its mineral rights approval powers to lower-level departments.
Latest market reform in oil and gas sector
- China
- July 17 2017
The Communist Party Central Committee and the State Council recently issued the Opinions on Deepening the Reform of the Petroleum and Natural Gas Sector. While the market-oriented reform of the entire oil and gas industrial chain includes no surprises, the opinions reflect the government's strong intentions behind the reform and send a positive signal to investors. However, the reform will not be an overnight success and significant resistance will be encountered.
Environment & Climate Change
New measures further reform pollutants discharge permit system
- China
- April 09 2018
The Ministry of Environmental Protection recently issued new administrative measures concerning pollutants discharge permits. In addition to providing the issuance procedure for such permits, the measures stipulate penalties for various violations. The promulgation of the measures will likely be viewed as a signal of more stringent legislative control over enterprises' environmentally sensitive activities.
Healthcare & Life Sciences
Regulation on the Supervision and Administration of Medical Devices amended
- China
- June 28 2017
The State Council recently promulgated amendments to the Regulation on the Supervision and Administration of Medical Devices 2014, which took effect immediately. The amendments clarify issues relating to device distributors' liabilities when selling non-conforming products, the use of large medical equipment and the revocation of clinical study site certification.
CFDA calls for comments on key policy proposals
- China
- May 31 2017
The China Food and Drug Administration recently issued four new draft policies for public comment, proposing further reforms to the existing drug and medical device regulatory regime. The draft policies aim to expedite the review and approval of new drug and medical device applications, deregulate the conduct of clinical trials to encourage innovation, enhance post-market supervision throughout a product's lifecycle and protect innovators' rights.
CFDA amends medical device recall rules
- China
- March 22 2017
The China Food and Drug Administration recently issued the Provisions for Medical Device Recall. While the new recall rules follow the basic regulatory framework for recalling devices provided in the existing rules, they also introduce some significant changes. The new rules clarify the scope of their application and the entity responsible for recalls, expand the definition of a 'defective product' and increase the penalties for manufacturers that refuse to implement mandatory recalls.
State Council announces policies to reform pharmaceutical industry
- China
- March 08 2017
China's pharmaceutical industry is set to undergo further change as part of the healthcare reform initiatives recently announced by the State Council in its Circular on Several Opinions Concerning Further Reforms of the Policies Governing Drug Production, Circulation and Usage. The circular reinforces the government's determination to expedite the approval process for new drugs and calls for quality consistency tests for generics.
CFDA solicits comments on pharmaceutical GCPs
- China
- January 18 2017
The China Food and Drug Administration recently proposed the most comprehensive revisions of the pharmaceutical good clinical practices (GCPs) in 13 years. The revisions have rewritten the articles of the existing pharmaceutical GCPs and provide general principles for conducting clinical studies in China; guidance on the roles and responsibilities of ethics committees, investigators and sponsors; and requirements for protocol and investigator brochures.
