Good Supplying Practices (GSP) are the basic standards of the operation, management and quality control for the pharmaceutical industry. The Ministry of Health in China has revised the GSP in late January and the revised GSP will become effective on June 1, 2013. Our colleagues at Junhe Law Firm, which was named the best Chinese Firm in 2012, have written a very good article summarizing the major revisions to the GSP. Please click here for a copy of the article.
Frost Brown Todd teamed with Gonzalez Calvillo (one of Mexico’s largest law firms), RSM McGladrey (a multinational accountancy group) and Battelle & Battelle (a leading Dayton-based accounting firm, and member of the McGladrey network) to present an update on Mexican/US supply chain issues for the Automotive Sector. About 50 automotive supply chain companies attended, to learn: Read More ›
In accordance with the Measures for the Annual Inspection of Enterprises, issued by the State Administration for Industry and Commerce (SAIC) in February 2006, every company which is issued a business license, including limited liability companies, unincorporated entities, partnerships, sole proprietorship company and its branches and foreign companies, is subject to annual inspection. Thus, wholly foreign owned enterprises (WFOE) are subject to the annual inspection requirements. 2012 annual inspection has officially begun on March 1 and will continue until June 30. It is required for companies established in 2012, except those established towards December 2012. However, such exemption needs to be approved by SAIC. Read More ›
Former U.S. Ambassador to China James Sasser headed an expert panel analyzing how recent PRC political and economic developments will impact U.S. companies in the Year of the Snake during a forum hosted in Frost Brown Todd’s Cincinnati office and streamed over the web earlier this month. Read More ›
Tennessee’ Department of Economic and Community Development will soon be opening an office in China to assist Volunteer State companies enter the China market, the New York Times noted recently. Read More ›
The following is a summary of the legal grounds on which an employer may terminate an employee and the relevant compensation requirement (if applicable) under China’s current Labor Contract Law. Read More ›
The State Administration of Foreign Exchange (SAFE) of China recently released a Circular in an effort to ease foreign exchange control over foreign direct investment (FDI) and M&A in China. Under the new rules, SAFE approval will no longer be required in a number of items, and banks will play a more important role in facilitating the transactions by verifying the underlying documents and reporting to SAFE. Foreign investors will benefit from the simplified procedures and shortened timeframe to handle foreign exchange matters. The Circular will become effective on December 17, 2012. For more details on the Circular, please click here and read the full article published by Jun He Law Office, a top full service law firm in China.
I. KEY CONSIDERATIONS IN SETTING UP A WFOE
(1) Site Search: The first thing you need to do is to conduct a site search and identify appropriate space for your WFOE. A site search is particularly important because: (i) a fully executed lease must be submitted to the government authority as part of the WFOE application package; and (ii) different districts (even in the same city) may have different rules and policies on WFOE registration. A “virtual” office address is not allowed. Read More ›
China Risk Factor Hiding in Plain View: A Brief Analysis of Variable Interest Entities (VIEs) Under Chinese Law
While the internet recently exploded inside and outside China on speculation (some of it quite creative to avoid censors) related to the country’s likely next leader’s disappearance from public view, legal and accounting professionals have spent the past couple of months parsing a few lines from China’s Ministry of Commerce (MOFCOM) for clues to the government’s official view toward a complex corporate structure employed to launch some of China’s biggest IPOs.
Click here to read the full article.
China’s fifth-generation leaders - due to be announced sometime later this month - face the daunting task of fulfilling the outgoing cadres’ pledge to transform China’s economy. Shifting to an economy based on consumption rather than unsustainable infrastructure spending poses difficult policy choices for the Politburo’s new Standing Committee, but important economic and political factors make any other path untenable by comparison.
Ask the Blogger
Do you have a topic that you would like discussed in a future blog article? Please let us know. If you have a confidential question regarding a blog article, please feel free to contact the article's author directly, or let us know if you would like for someone to contact you directly.
Joseph J. Dehner Joe Dehner concentrates his practice on multinational business and securities disputes. He counsels a wide variety of companies, domestic and foreign, on issues confronting global business, including transnational investment, mergers and acquisitions, joint ventures, customs and trade issues, international business structures, distribution and agency agreements and the resolution of international disputes.