Haworth & Lexon Law Newsletter
No.4 2001 (Total:No.4) December 25th, 2001
Haworth & Lexon Law Newsletter is issued every month, mainly introducing the legal change in the fields of Corporate, Securities, Foreign investment, E-commerce, International trade etc. with necessary comment. All the comments do not mean the legal opinion of our firm and the firm does not have any legal liability for such comment. Should you have any interest in any topics or any questions please feel free to contact the firm. You will be expected to have satisfactory response from the professional attorney of our firm.
Guidelines:
?SPAN style="FONT: 7pt 'Times New Roman'"> With the purpose of maintaining fair trade environment, the State Council promulgated regulations on antidumping, anti-subsidy and safeguard measures
?SPAN style="FONT: 7pt 'Times New Roman'"> In order to keep insurance intermediary service market running properly and orderly, China Insurance Regulatory Commission has released relevant regulations.
?SPAN style="FONT: 7pt 'Times New Roman'"> Latest Laws and Regulations:
1 Provisions on the Administration of Foreign-funded Road Transport Services
1 Regulation of the People’s Republic of China on the Administration of Foreign-funded Insurance Companies
1 Regulations on the Management of Travel Agencies
1 Circular on the Merge and Separate Establishment of Foreign Investment Enterprise
1 Notice of the China Securities Regulatory Commission on Several Issues Concerning Major Purchases, Sales and Exchanges of Assets by Listed Companies
1 The Notice on Standardizing the Business of Acceptance by Securities Companies of Appointments to Provide Investment Management
Maintain Fair Trade, the State Council Promulgated Regulations on Anti-dumping, Anti-subsidy and Safeguard measures
With China’s entry into WTO, the State Council promulgated “Anti-Dumping Regulation of the People’s Republic of China,Anti-Subsidy Regulation of the People’s Republic of China” and “Regulation of the People’s Republic of China on Safeguard Measures on Dec. 10th, 11th, 12th respectively. All these three will be valid on Jan.1st, 2002. In 1997, Regulation of People’s Republic of China Anti-Dumping and Anti-Subsidy once issued. Now, in order to maintain a better fair trade market environment, the State Council released provisions especially on safeguard measures and the provisions of anti-dumping and anti-subsidy have been separated and improved as well.
China Insurance Regulatory Commission has released relevant regulations
Since China's entry into WTO, more and more foreign-funded insurance companies and insurance intermediate service companies will enter into Chinese insurance market; meanwhile the domestic insurance intermediate service market is also adjusting. Aiming at normalizing the insurance intermediate service market, China Insurance Regulatory Commission released the following Provisions on the Administration of Insurance Agent Companies, Provisions on the Administration of Insurance Brokering Companies and Provisions on the Administration of Insurance Assessing Companies. All above will be implemented on Jan. 1st, 2002.
Insurance agent companies and insurance assessing companies may be established in the form of partnership enterprises, limited liability companies or companies limited by shares. The minimum capital contributions must RMB 500,000 of paid-in funds. Insurance brokering companies can only be established in the form of limited liability companies or companies limited by shares. The registered capital must be at least RMB 10 million of paid-in funds. The regulations provide that the establishment of intermediate service companies mentioned above is divided into two stages: the preparation stage and the stage of commencing business.
1. Ministry of Communications and Ministry of Foreign Trade and Economic Cooperation promulgated Provisions on the Administration of Foreign-funded Road Transport Services”. According to the provisions, foreign investors are allowed to operate passenger road transport services in the form of equity joint venture, joint venture by cooperation and foreign-wholly-enterprises. With the maximum shares of 49%, both equity and operative joint venture can be established to run cargo road transport, conveying, loading and unloading, storing, automobile-repairing and other relevant auxiliary services. The detailed time for opening above services to wholly foreign-owned enterprises will be released in the future.
2. Regulation of the People’s Republic of China on the Administration of Foreign-funded Insurance Companies”, adapted to joint venture, wholly foreign-owned insurance companies as well as agencies of foreign insurance companies, was promulgated by the State Council. The regulation will come into effect on Feb. 1st, 2002
3. Specific Charter on foreign-invested travel agencies was added to Regulations on the Management of Travel Agencies”, which was amended by the State Council. The amended regulation will come into effect on Jan. 1st, 2002. The regulations provide that foreign services suppliers who has at least US$ 40 million’s annual income could apply to provide services in the form of joint venture travel agencies
Foreign-invested travel agencies are permitted to run the business of traveling to China from abroad and China domestic travel services. They are not permitted to engage in the activities of Chinese traveling abroad and to Hong Kong SAR, Macao SAR and Chinese Taipei. Branches of the foreign-invested travel agencies can’t be established.
4. Ministry of Foreign Trade and Economic Cooperation and State Administration for Industry and Commerce jointly released “Circular on the Merge and Separate Establishment of Foreign Investment Enterprise”, which will be valid on Nov. 22nd, 2001. The main point of the amendment is further regulating and normalizing the merge between foreign-invested enterprise and wholly Chinese-funded domestic enterprises.
5. Notice of the China Securities Regulatory Commission on Several Issues Concerning Major Purchases, Sales and Exchanges of Assets by Listed Companies” is issued by China Securities Regulatory Commission. The Notice further standardizes assets reorganization of the listed companies. Major purchases, sales and exchanges of assets by listed companies should meet 4 requirements. Meanwhile, the notice provides details in decision procedure, application procedure and examination requirement of assets reorganization.
6. The Notice on Standardizing the Business of Acceptance by Securities Companies of Appointments to Provide Investment Management” was released by China Securities Regulatory Commission, aiming at standardizing the business of acceptance by securities companies of appointments to provide investment management and protecting the right and interest of parties concerned to the appointments business.
