China, AnJie Law Firm updates
Competition & Antitrust
Contributed by AnJie Law FirmCan transactions 'by steps' circumvent merger control rules?
- China
- 07 November 2019
A violation of the notification or standstill obligation is commonly called 'gun jumping' and can have significant legal consequences. This article examines Canon's acquisition of Toshiba Medical and the legal consequences of gun jumping in China, as well as the risks of implementing a transaction 'by steps' to circumvent the standstill rules. Recent strengthened enforcement measures are also briefly examined.
Why doesn't safe harbour rule apply to non-IP monopoly agreements?
- China
- 29 August 2019
The State Administration for Market Supervision recently promulgated the Interim Provisions for Prohibiting Monopoly Agreements. Although the draft provisions introduced a safe harbour clause for non-IP-related monopoly agreements, this has been removed from the final version. As debate continues as to whether to introduce a safe harbour clause to Chinese legislation, this article examines the history of the safe harbour rule and the potential reasons why it would not apply to all monopoly agreements.
Unreliable Entity List embraces abuse of dominance under Anti-monopoly Law
- China
- 04 July 2019
The Ministry of Commerce of China recently announced the establishment of an Unreliable Entity List (UEL) targeting foreign entities and individuals that (among other things) fail to comply with the principles of the market economy or threaten China's national security. It is anticipated that the UEL will rely heavily on the Anti-monopoly Law, especially in relation to foreign entities with a noticeable market presence in China.
Chemical giant Eastman slapped with fine for abuse of market dominance
- China
- 30 May 2019
The Shanghai Market Regulation Bureau (SMRB) recently issued a penalty decision addressed to Eastman (China) Investment Management Co, Ltd, a Chinese subsidiary of US Chemical firm Eastman Chemical Company. Since this is the first antitrust enforcement decision to be issued by the SMRB since its establishment, it has drawn significant attention from commentators who have attempted to identify the bureau's enforcement approach.
Antitrust enforcement review 2018: monopoly investigations
- China
- 23 May 2019
Although still fairly new, the State Administration for Market Regulation (SAMR) diligently investigated and penalised monopolistic behaviour in 2018, publishing a dozen cases alongside its local enforcement agencies which attracted media attention. Notably, livelihood-related industries (including the pharmaceutical industry) and trade associations appeared to come under the SAMR's spotlight.
Insurance
Contributed by AnJie Law FirmHave foreign-invested insurer licences been made available to foreign investors?
- China
- 16 July 2019
For foreign investors with an eye on the Chinese insurance market, obtaining an insurance intermediary licence is a good idea. However, compared with insurance brokerage licences, insurance agency licences are difficult for foreign investors to obtain. Therefore, foreign investors that wish to acquire control over a Chinese insurer should consider either setting up a new foreign-invested insurer or acquiring an existing foreign-invested insurer.
Essential provisions in Chinese reinsurance contracts
- China
- 09 July 2019
During the past five years, the Chinese courts and arbitration institutions have handled major disputes relating to reinsurance contracts. These cases prompted legislation in the reinsurance sector and drew attention to the need for more careful wording in reinsurance contracts. This article provides an overview of several essential provisions in reinsurance contracts under Chinese law.
Who is China's new insurance regulator?
- China
- 18 June 2019
The China Banking and Insurance Regulatory Commission was recently formally unveiled in Beijing, marking the official launch of the new regulatory authority. This merger of the former China Banking Regulatory Commission and China Insurance Regulatory Commission is the biggest reform of China's financial regulatory system in more than 15 years and marks the start of the 'one committee, one bank, two commissions' regulation framework.
Insurance brokerage market further opened up to foreign investors
- China
- 11 June 2019
The China Banking and Insurance Regulatory Commission plans to abolish two of the requirements that foreign insurance brokerage companies must meet in order to conduct business in China (ie, 30 years of business operation history and $200 million worth of total assets). If this reform takes place, domestic and foreign investors are expected to have equal status when entering the Chinese insurance brokerage market.
Shift towards digital insurance and its regulation
- China
- 02 October 2018
Ping An Insurance (Group), a relative newcomer to the insurance industry, now ranks among the world's largest and most valuable insurers. Notably, its use of technology to embrace new business models that supplement its core insurance offerings is indicative of a wider global trend of providing customers with digital, added-value services. However, in China, this evolution towards added-value ecosystem-related services and the potential advantages on offer is marked by a different set of market considerations.
Litigation
Contributed by AnJie Law FirmBlockchain evidence accepted in judicial proceedings for first time
- China
- 27 November 2018
The Hangzhou Internet Court recently confirmed, for the first time, the effectiveness of evidence recorded via blockchain. Shortly after, the Supreme People's Court cemented the lower court's view by implementing the Provisions on the Trial of Cases by the Internet Courts. This is the first time that blockchain technology has been officially accepted in a judicial interpretation as a valid technical means for preserving and presenting evidence.
Court examines refusal to deal in private antitrust litigation against Tencent
- China
- 23 October 2018
The Shenzhen Intermediate People's Court recently issued its judgment in the private antitrust litigation brought by domestic software company Shenzhen Micro Source Code Software Development Co Ltd (SMSCSD) against tech giant Tencent. SMSCSD had alleged that Tencent possessed a dominant position in the China mainland market for mobile instant messaging and social platform services and had abused this dominance by blocking its WeChat Official Accounts and engaging in discriminatory practices.
Tech, Data, Telecoms & Media
Contributed by AnJie Law FirmPBoC proposes new rules to regulate collection and processing of personal financial information
- China
- 08 November 2019
The People's Bank of China recently issued the Trial Measures for the Protection of Personal Financial Information/Data (Preliminary Draft) to relevant commercial banks in order to solicit their opinions. It has been reported that under the trial measures, banks and other financial institutions will be unable to obtain personal financial information from third parties that are illegally engaged in personal credit investigation activities.
Guiding Opinions on Promoting the Development of the Network Security Industry published for public comment
- China
- 01 November 2019
The Ministry of Industry and Information Technology recently published the Guiding Opinions on Promoting the Development of the Network Security Industry for public comment. According to the opinions, the ministry aims to have a number of cybersecurity enterprises generating an annual revenue of over Rmb2 billion by 2025. As such, the opinions provide a list of recommendations to that end.
Educational apps must be officially registered by end of 2019
- China
- 25 October 2019
The Ministry of Education and seven other authorities recently published the Opinions on Guiding and Regulating the Orderly and Healthy Development of Educational Apps. The aim is that all educational mobile apps will be registered by the end of 2019. To this end, providers of such apps must file details of their apps with provincial education administrations and adhere to data protection rules.
Regulations on Network Eco-governance issued for public comment
- China
- 18 October 2019
The Cyberspace Administration of China recently published the draft Regulations on Network Eco-governance for public consultation. The regulations apply to the actions of network information content producers, network information content service platforms and network information content service users, which are prohibited from producing illegal or harmful information.
Email addresses and location information likely to fall within scope of 'personal information'
- China
- 11 October 2019
The draft Civil Code was recently submitted to the Standing Committee of the 13th National People's Congress for a third reading. Compared with the first and second drafts, the third draft expands the scope of the definition of 'personal information' to cover email addresses and location information.
