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In Employment

China: Employment newsletter | April 2023

by 1 Min Read

ā€¢ Government further strengthens enforcement measures against social insurance fraud
ā€¢ Guangdong province issues detailed implementing rules for parental leave and elder care leave
ā€¢ National authorities publish guideline cases dealing with protection of women’s rights
ā€¢ Guangdong High People’s Court publishes guideline case on ex-employee theft of trade secrets
ā€¢ Shanghai non-compete case shows courts may look at circumstantial evidence to prove breach by employees engaged in covert competition
ā€¢ Henan court case shows importance of using correct terminology in an employment termination notice

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In Trade and Foreign Investment

China initiated new ā€œtrade barrier investigationā€ against Taiwan

by 2 Mins Read

The Chinese Ministry of Commerce announced on 12 April 2023 that it has initiated a trade barrier investigation involving 2,455 categories of Chinese products that may be subject to import restrictions or prohibition in Taiwan, including agriculture, mineral, chemical, and textile products. The outcome is expected to be announced by 12 October 2023, or 12 January 024 if the investigation is extended. Due to the current geopolitical tension between Taiwan and China, it is possible that the investigation may be expedited.

In Employment

International: Global Employment Law Fastpass for United States Multinationals (Webinar Series Invitation)

by 2 Mins Read

Join us for a four-part webinar series as our US moderators welcome colleagues from around the globe to share the latest labor and employment law updates and trends. US-based multinational employers with business operations in Asia Pacific, Europe, the Middle East and Africa, and the Americas regions will hear directly from local practitioners on the major developments they need to know, and come away with practical tips and takeaways to implement.

In Trade and Foreign Investment

China: Customs’ new practice further challenges the implementation of post-importation TP adjustments

by 6 Mins Read

Post-importation transfer pricing adjustments have always presented great challenge for multinational companies doing business in China due to the lack of formal nationwide mechanism which simultaneously addresses the tax, customs and foreign exchange administration requirements, in order to allow customs valuation adjustment to be made in response to a post-importation TP adjustment.
While a TP and customs aligned approach which was introduced in a pilot program in Shenzhen in 2022 allows retroactive TP adjustment to be made with respect to imported goods, the application of the pilot program is currently limited to companies registered in Shenzhen which have in place advanced pricing arrangements with the China tax authority.

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In Trade and Foreign Investment

China Customsā€™ new practice further challenges the implementation of post-importation TP adjustments

by 5 Mins Read

Post-importation transfer pricing adjustments have always presented great challenge for multinational companies doing business in China due to the lack of formal nationwide mechanism which simultaneously addresses the tax, customs and foreign exchange administration requirements, in order to allow customs valuation adjustment to be made in response to a post-importation TP adjustment. A new practice adopted by China Customs piles on additional challenges for companies looking to implement TP adjustments.

In Employment

China: Employment Newsletter | January 2023

by , and 1 Min Read

The newly amended Law on the Protection of the Rights and Interests of Women takes effect on 1 January 2023; Shanghai amends rules related to parental leave; the Supreme People’s Court issues a guiding case on how employers should handle sexual harassment in the workplace; an employee’s unsupported accusation of sexual harassment could constitute infringement of the right to reputation; the first equal opportunity case judgment in Guangdong Province is issued; and a Guangzhou court rules that a company’s internal disclosure of an employees’ information violates their privacy.

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In China

China: Supreme People’s Court decision clarifies that physical plant material can be a trade secret

by , and 12 Mins Read

On 2 November 2022, the Intellectual Property Tribunal of the Supreme People’s Court published its decision on the trade secret infringement case of Wuwei Bosheng Seed Industry Limited Company (Appellant) v. Hebei Huasui Seed Industry Limited Company. This case raised the untested question of whether parent material used in breeding can be protected as a trade secret in China.

In Trade and Foreign Investment

China: Revised Draft Regulations on the protection of new plant varieties issued for public comment

by , and 10 Mins Read

On 21 November 2022, the Peopleā€™s Republic of Chinaā€™s Ministry of Agriculture and Rural Affairs issued the revised draft of the Regulations of the People’s Republic of China on the Protection of New Plant Varieties, which is open for public comments until 22 December 2022. The revisions aim to align the Regulations with the revised PRC Seed Law, which has been effective since 1 March 2022, and which provides more detailed and wider protection for plant variety rights in China.

In Sanctions

United States: BIS issues FAQs regarding China’s advanced computing and semiconductor sectors

by , and 5 Mins Read

On 28 October 2022, the US Commerce Departmentā€™s Bureau of Industry and Security issued a first round of FAQs regarding the advanced computing and semiconductor manufacturing Interim Final Rule, published on 13 October 2022 (87 Fed. Reg. 62,186) and amending the Export Administration Regulations. The FAQs clarify that that the new restrictions on exports and reexports to China also apply to Hong Kong.

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