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Individual Insolvency Law in Shenzhen

June 9, 2020

On 2 June 2020, the Standing Committee of the Shenzhen Municipal People’s Congress publicly solicited opinions on the 《Regulations on Personal Insolvency of the Shenzhen Special Economic Zone ( Draft for Comments, hereinafter “Draft”)》, which is the first local regulation in China to solicit opinions on individual bankruptcy. The main…

Breaking news! Master Plan Unveiled for the Construction of Hainan’s New Free Trade Port

foreign investment law, News

June 4, 2020

On 1 June 2020, the Master Plan for the Construction of Hainan’s Free Trade Port was unveiled by the Chinese central government (hereinafter “Master Plan”). The policy document proposes in total 39 new policies with regards to the liberalization and facilitation of trade, investments and cross-border capital flows to develop…

“I Want My Equity Back!”

Case study, litigation

June 2, 2020

On 14 May 2020, the Shanghai No. 1 Intermediate Court (hereinafter “Appellate Court”) publicly announced the result of a dispute over the qualification of a foreign shareholder. The Appellate Court found that a foreign individual, is an anonymous shareholder of a domestic company and has the right to claim back…

How to Fire an Incompetent Employee Properly?

employment law

May 29, 2020

According to the《Labor Contract Law of the People’s Republic of China》, a company has the right to terminate the labor contract if the employee is not competent. However, a recent unofficial statistic and judicial precedents show that employers who are successful in trying to terminate employment contracts on the grounds…

How to Handle COVID-19 Related Disputes Properly

civil law, News

May 9, 2020

On 20 April 2020, the Supreme People’s Court released Guidelines about Lawfully and Properly Handling Civil Cases Related to the Coronavirus Epidemic (No.1). The guidance regulates the trial of civil cases involving the epidemic with regards to 10 aspects, such as the accurate application of force majeure rules, the proper…

Does a Company Have the Right to Transfer an Employee’s Position?

Case study, employment law

May 5, 2020

Many companies have to adjust their structures and departmental settings because of changes in the markets or industries, so their employment relationships with their employees need to be changed accordingly. In light of this, the question arises, whether a company can negotiate with their employees to amend the employment contract?…

Breaking News! Measures for Network Security

general, News

May 1, 2020

On 27 April 2020, Measures for the Examination of Network Security (hereinafter “Measures”), were jointly released by the Cyberspace Administration of China, the National Development and Reform Commission and other related ministries and commissions, which will come into effect on 1 June 2020. According to the Cyberspace Administration of China,…

Close Your Company Properly – Don’t Just Run Away!

Basic China law, China business basic, company law

April 26, 2020

Incorporating a company in China has become easier and faster now, but despite the government’s recent efforts to try and simplify the procedure, shutting down a company remains complicated and time consuming. Some foreigners think they can just give up their companies without annual inspection procedures and tax settlement. However,…

Why A Good Accountant Is So Important

Basic China law, China business basic, company law

April 26, 2020

Small and medium-sized companies, usually hire an accounting firm to help them balance the books. This is a smart move. Hiring an experienced accountant full-time may not be necessary for every small company. However, “bookkeeping” is not as simple as some people might think. It’s not only a procedural job…

Can a Company Fire an Employee Who Failed to Tell the Truth? –Case study on a labor dispute

employment law

April 15, 2020

Amy joined a company （“Company”）on 7 April 2017 as an Administration Assistant. Amy declared “No” in the marital status section of the <New Employee’s Entry Form > and promised in the form that “The content in the form is true and correct. If there is anything untrue, I promise to…