By Charles McElwee

A draft of China’s “Circular Economy” law was submitted for deliberation in August 2007 to the Standing Committee of National People’s Congress (NPC), China’s top legislature. At that time it was expected to take effect in January 2008. It did not. It apparently remains, however, on this year’s agenda for the Standing Committee (as noted in a report delivered by Wu Bangguo on the work of the Standing Committee to the recently concluded First Session of the 11th NPC).

“Circular Economy” is how China’s definition of sustainability gets translated into English. The draft law establishes the principles of reduce, reuse, and recycle (at least at the industrial level) as legal mandates, and imposes requirements that new industrial facilities (a) incorporate energy efficiency and water conservation designs and (b) explore ways to reduce their use of hazardous substances. Read the rest of “China’s “Circular Economy” Law” or post a comment

The International Law News, which is the American Bar Association’s publication for the International Law Section, recently published an article by Law Professor Richard Gruner entitled “Intellectual Property in the Four Chinas”.  Now, you might be wondering if there are four Chinas in the first place since most people think there is one China.  If you are a firm supporter of Taiwan, which is technically the Republic of China, that would give you two Chinas at best.

Read the rest of “Intellectual property enforcement in “Four Chinas”?” or post a comment>>

By Jack Perkowski

On matters economic, I generally give the Chinese government high marks. Starting in 1978 with an economy that could barely feed its people, the government has guided China through 30 incredible years of economic reform and development.

I have been here for half that period, and have personally witnessed how China has built out its infrastructure, deregulated one industry after another, privatized many of its state-owned companies and embraced globalization by joining the World Trade Organization. As a result of these reforms and more, China is now the third-largest economy in the world, and everyone is waiting to see what the next 30 years will bring. Read the rest of “Sometimes, The Market Just Wants To Go Down” or post a comment

Joint Ventures

By Gregory Sy

Joint Ventures, in this specific context, refer to a registered legal entity cooperation between at least one foreign investor and Chinese investor. Previously, this structure was more common, though it has been steadily decreasing due to the disadvantages set out below.

Joint Ventures can be classified into two different types:
- Equity Joint Ventures
- Cooperative Joint Ventures

The main distinction between the two is that the latter provides for more flexibility in distribution of revenues. Whereas Equity Joint Ventures require that the joint venture partners share in distribution of profits based on their proportionate Read the rest of “China Business Vehicles: Part III” or post a comment

By Ching Mia Kuang

Starting from 1 December 2004, a new investment vehicle has been available to foreign investor – Chinese government allow and encourage foreign investor to set up “Foreign Investment Commercial Enterprise”(FICE) in China to conduct wholesale, retail, and other permitted businesses. Such a type of business entity possess of the total right of trade and business. It can conduct import/export activities by itself, independent of the local import and export company or setting up a manufacturing company.

Furthermore, from 1 March 2006, the law permits FICE to apply and obtain approval documents from the local municipal Foreign Economic Relation and Trade Commission, instead of from Ministry of Commerce in Beijing.

The FICE is a limited liability company wholly owned by foreign investor. It is a legal person. The foreign investor has sole responsibility for its profits and losses. Limited liability is recognized by the amount of registered capital injected into the entity. The FICE is able to implement strategies that effectively conform to the interests of the parent company abroad. To carry on different trading business, it must have the required permits and certificates. Read the rest of “Registration of a FICE in Shanghai” or post a comment