View this email in your browser

A&Z Monthly Newsletter

May 2020

Passion - Professionalism - Collaboration

Dear Friends,

This is a monthly newsletter focusing on legal matters in China, and relatedissues that shape the general business environment for foreign companiesoperating in China.Should you have any comments or questions, please do not hesitate tocontact Ms. Anna Lukina, BD & Marketing Director, at alukina@a-zlf.com.cn visit A&Z website.

Sincerely,The Editors

Legal Updates

MOF Releases IASB Draft Document on Business Combinations to GatherPublic Opinions Read MoreOn May 19th, 2020 the Ministry of Finance released a draft for discussionnamed “Business Combinations - Disclosures, Goodwill and Impairment”,which was published by the International Accounting Standards Board, togather public opinions until October 31st, 2020.The IASB had published a draft for discussion in March 2020, to solicitopinions worldwide. The IFRS 3 Business Combinations has specified howto make accounting arrangements for business combinations andacquisitions. IASB is now conducting a study into goodwill andimpairment, to discuss whether a company can provide more usefulinformation to investors, related to its acquisition activities at a reasonablecost.

Four Authorities Unveil Financial Opening-up Guidelines to Support GBADevelopment Read MoreThe People’s Bank of China, China Banking and Insurance RegulatoryCommission, China Securities Regulatory Commission and the StateAdministration of Foreign Exchange released on May 14th, 2020 the“Opinions about Financial Support for the Development of the Guangdong-Hong Kong-Macau Greater Bay Area (GBA)”, in a policy move intendedto extend financial cooperation between the mainland and Hong Kong &Macau, and emphasize the role of the GBA in leading and supportingChina's economic development and opening-up.The document put forward 26 measures in five areas: promoting the GBA'scross-border trade and facilitating investment and financing, expandingopening-up of the financial sector, promoting the connectivity of financialmarkets and financial infrastructure, enhancing financial services andinnovations across the GBA, and effectively preventing cross-borderfinancial risks. The document stressed that opening-up of the financialsector will target banking, securities and insurance businesses.

CAAC Outlaws Discriminatory Measures Against Foreign Investors Read

A&Z UpcomingEvents

5th June, HangzhouSophie An, Principal Partner atA&Z will give a lecture on “AWinning Method for ForeignEnterprises, as Part of theNormalization of EpidemicPrevention and Control”, at theinvitation of Jetro ShanghaiRepresentative Office inHangzhou.

19th June, ShanghaiSophie An, Principal Partner atA&Z will give a lecture to theGeneral Managers of Mitsubishi’sthirty-two affiliated companies inShanghai, at the invitation ofMitsubishi Corporation(Shanghai) CO., LTD.

June, ShanghaiPeter Zeng, Senior Partner atA&Z will give a training lectureon anti-monopoly law, at theinvitation of a Shanghai-basedcompany.

A&Z Past Events

8th May, Webinar, Shanghai

Vincent Zhu, Director at A&Z,conducted a webinar on “TheInterpretation of the DrugAdministration Law of thePeople’s Republic of China (2019Revision), AdministrativeMeasures on Registration ofPharmaceuticals, andAdministrative Measures on

MoreThe Civil Aviation Administration of China, released on May 12th, 2020the “Implementation Rules for Optimizing Business Environment in theCivil Aviation Industry”, effective from May 9th, 2020. According to therules, CAAC and its local regulatory bureaus shall adopt the same NegativeList for market access, and phase-out unreasonable market accessrestrictions in the civil aviation industry. Business areas outside of theNegative List shall be equally accessible for all market entities. In order tocreate a high-quality market environment for foreign investors, apart fromcivil aviation projects on the “Special Administrative Measures (NegativeList) for the Access of Foreign Investment”, other foreign-funded civilaviation projects shall be regulated according to the same standards asprojects funded by domestic companies.

China Scraps Investment Quota Limits for Foreign Institutional InvestorsRead MoreThe People’s Bank of China and the State Administration of ForeignExchange released on May 7th, 2020 the “Provisions about the Securitiesand Futures Investments in China by Foreign Institutional Investors”, in amove to simplify investment management rules and make it easier forforeign investors to access China’s financial markets. The documentscrapped equity investment quotas for QFIIs and RQFIIs. Eligibleinvestors’ cross-border capital remittances and conversions will beregistered; eligible investors can decide at their own discretion the currencyfor remittance and when to make remittances. Remittance procedures willbe substantially simplified, and some documentation requirements will bescrapped. The PBOC also answered five questions in relation to the newregulations on its website.

State Council Approves the Establishment of 46 Pilot Zones for Cross-border E-commerce Read MoreThe State Council issued on May 6th, 2020 the “Approval of theEstablishment of Integrated Pilot Zones for Cross-border E-commerce in46 Cities and Areas”. According to the document, 46 cities and areas,including Xiongan New Area, Jilin, Lianyungang and Urumqi, will buildpilot zones for cross-border e-commerce. These pilot zones shouldoptimize the statistical system for cross-border e-commerce operations,exempt value-added tax and consumption tax for retail exports and cutcorporate income tax rates. Relevant departments can also considerincorporating the cities of eligible zones into the pilot program on retailimports of cross-border e-commerce, and assist enterprises there in jointlybuilding and sharing overseas warehouses.

Draft Amendment to the Copyright Law Proposes to Toughen Punishmentand Accountability Read MoreThe National People’s Congress released on April 30th, 2020 the“Amendment to the Copyright Law” (Draft), to gather public opinions untilJune 13th, 2020. The draft amendment toughened accountability andpunishment against copyright infringement activities. According to theDraft, under serious infringements, a punitive compensation of one to fivetimes the economic damages caused by the infringements can be awardedto the copyright owner. The maximum compensation has been lifted to 5million yuan from 500,000 yuan.The draft has also added a copyright registration mechanism, so thatmembers of the public can get a clear understanding about how theownership of copyrights works.

Industry News

Chinese phone vendors all-in on 5G, market share set to break 50%Global Times, May 27

Online sales surge helps Ralph Lauren recover in ChinaReuters, May 27

Tencent to invest US$70 billion in new digital infrastructure, backingBeijing’s economic stimulus effortsSouth China Morning Post, May 26

Total assets of foreign banks, insurers in China top 5 trillion yuanXinhua, May 25

Supervision of PharmaceuticalManufacturing”, to Japanesepharmaceutical companies.

12th May, Shanghai

The “2020 Salon for GeneralManagers” was held in Shanghai,at A&Z Law Firm’s offices. Inaddition to an introduction oflegal services provided by A&Z,Sophie An, Principal Partner atA&Z, also shared informationand relevant examples on hottopics: the adjustment ofepidemic prevention and controlmeasures in China and inShanghai, as well as theeconomic situation in the firstquarter, the May Fifth ShoppingFestival in Shanghai, and theupcoming CPPCC and NPCsessions. Read more

26th May, Webinar, Shanghai

Attorneys Merry Zhang and YuWang held an online lecture onthe compliance risk managementof solid waste. Merry sharedsome measures to prevent theenvironmental legal risks of solidwaste disposal, and Yu Wangspoke about the compliance riskmanagement of solid waste. Readmore

27th May, Webinar, Shanghai

Peter Zeng, Senior Partner atA&Z, conducted a webinar onnew trends in labor employment,and particularly on theirdevelopment post-COVID-19, aswell as enterprises’ response.

German mechanical engineering industry sees positive signals from China:surveyXinhua, May 25

China's pork imports in April jump 170% to record highReuters, May 25

Xi's call to fuel growth boosts confidenceChina Daily, May 26

More cybersecurity protection stressed for new infrastructureChina Daily, May 22

How a carmaker became a maskmakerChina Daily, May 21

Leave China? No thanks, some Japanese firms say to Tokyo’s cashincentivesSouth China Morning Post, May 13

Vehicle sales reboundChina Daily, May 13

Rapid recovery seen for sales of electronic goodsChina Daily, May 8

About A&Z Law FirmA&Z is a leading Chinese law firm, which employs over 50 expertscomposed of a team of professionals comprising attorneys, legal assistants,Japanese translators, client managers, and business specialists across 5offices in 11 jurisdictions. Having been active in Shanghai since 2004,A&Z’s presence was expanded through the establishment of offices inBeijing, Dalian, Wuhan, and Tokyo. A&Z focuses on advising multi-national groups, major corporations, banks, and SMEs on various legalissues relevant to their business endeavors.A&Z’s practices include Foreign Investment, Overseas Investment,Competition and Antitrust, Intellectual Property, M&A and CorporateRestructuring, Labour and Social Security, Dispute Resolution, Complianceand CSR, Finance and Capital Markets, Customs Logistics and MaritimeCommerce, and Environment, Health and Safety (EHS).

The information contained in this Newsletter is for reference on matters ofinterest only, and is not intended to be comprehensive. Although we try toensure accuracy, please note that the application and impact of laws canvary based on contextual and circumstantial variables. Before taking anyaction, please ensure that you obtain professional advice specific to yourcircumstances.

Peter focused on introducing thecurrent labor problems thatcompanies are facing, andinformed them how to makeadjustments in response to thenew trends.

27th May, Webinar, Spain

A&Z, as a member of IURISGALnetwork, jointly with four lawfirms, also members of thisprestigious global network with apresence on 5 continents, andwhose main spoken language isSpanish, conducted a webinar on“Credit Protection and ContractRisk Management in COVID-19Times, in Different Jurisdictions”.A&Z focused on the Chinesejurisdiction, providing anoverview and case studies, to helpcompanies deal with riskmanagement following thepandemic. This webinar wasconducted in Spanish.

There are numerous ways for you to keep up-to-date with legal updates, A&Z’s practice, and valuable events. Visit our website: www.A-ZLF.com.cn

Scan the QR Code to subscribe to A&Z'sWeChat account: ligeHello

A&Z's Labour and Compliance DepartmentWeChat account: laodonghegui

A&Z values your privacy. A&Z will not sell or make available your email to any other third party withoutyour express consent. Want to change how you receive these emails?

You can update your preferences or unsubscribe from this list.

Copyright © 2020 | A&Z Law Firm, All rights reserved.