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  <title>Frost Brown Todd ISG</title> 
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  <copyright>Copyright Frost Brown &amp; Todd LLC</copyright> 
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  <pubDate>Wed, 17 Mar 2010 03:07:14 GMT</pubDate> 
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      			<title><![CDATA[China Brands matter settled in WTO dispute with US]]></title>
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      			<pubDate>March 8, 2010</pubDate>
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				<![CDATA[<P style="LINE-HEIGHT: 200%; MARGIN: 0in 0in 0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At the end of 2009, the US and China resolved a spat over China’s “Famous Brand” program.&nbsp; China has encouraged its large companies to begin branding their products, rather than simply being OEM supplier to the world.&nbsp; Many companies that manufacture vast quantities of goods in China are unknown by their own names to consumers, because they make the goods for other companies that brand them under their own chosen names.&nbsp; China wants its companies to become full-fledged competitors in marketing beyond manufacture.&nbsp; To prod Chinese companies to expand beyond the burgeoning Chinese market, the Chinese Government has engaged in activities that encourage companies to go abroad with their own brands.&nbsp; <br />
<P style="LINE-HEIGHT: 200%; MARGIN: 0in 0in 0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This prompted the US to challenge those parts of the China Brands program that amount to export subsidies.&nbsp; See 26 BNA International Trade Reporter 17 (Jan/ 1, 2009).&nbsp; Over 70 specific governmental subsidies, primarily those that awarded grants dependent on export performance targets, were challenged as not compliant with WTO obligations.&nbsp; While the Chinese Government will continue its companies to export and develop world famous brands, as most countries do, the elimination of cash grants to companies tied to how much they export will level the playing field a bit and represent a pragmatic approach by China to honoring its WTO commitments made when it joined the organization in 2001.]]> 
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      			<title><![CDATA[Hong Kong Arbitral Awards now recognized as enforceable in the PRC]]></title>
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      			<pubDate>February 18, 2010</pubDate>
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				<![CDATA[Although Hong Kong is part of the People's Republic of China, it has a special status.&nbsp; "One Country / Two Systems" is the hallmark of the PRC's relationship with Hong Kong.&nbsp; One issue important to contract drafters and those involved in disputes has been whether a Hong Kong arbitration will result in an enforceable award within the PRC.&nbsp; Many western businesses would prefer to resolve a commercial dispute in Hong Kong than in the PRC.&nbsp; As an inheritor of common law traditions and a region with fluent English speakers and arbitrators, Hong Kong is viewed as a fair and appropriate forum to resolve disputes between Chinese and western businesses.&nbsp; If a Hong Kong arbitral award would not be enforceable within China, however, it could serve no purpose to insist on Hong Kong arbitration within a commercial agreement. 
<DIV dir=ltr align=left>&nbsp;</DIV>&nbsp;&nbsp;&nbsp;&nbsp;The following&nbsp;linked article from the Fairbairn Catley Low &amp; Kong firm of Hong Kong, with offices also in Shanghai, provides important guidance that a Hong Kong arbitral award is highly likely to be enforced within the mainland of the PRC.&nbsp; [<A href="http://www.fclklaw.com.hk/english/legal/update28.pdf" target=_blank>http://www.fclklaw.com.hk/english/legal/update28.pdf</A>].&nbsp; The Fairbairn firm and Frost Brown Todd are members of MULTILAW, a multinational association of independent law firms.&nbsp; Our firms work closely together for a host of multinational clients active in Hong Kong, China and other parts of Asia. 
<DIV dir=ltr align=left>&nbsp;</DIV>
<DIV dir=ltr align=left>Joseph J Dehner, February 18, 2010</DIV>]]> 
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