A Woman’s Body is Her Own Business- Recent Reproductive Case in China

Egg freezing, also known as mature oocyte cryopreservation, is an effective way to preserve a woman’s fertility and allows her to have a child in the future. However, one hospital in China was sued by Ms. Xu because the hospital refused to provide egg freezing for her as a single woman. The court hearing was scheduled on Dec 23, 2019 in Beijing.

According to Ms. Xu, on November 14, 2018, she went to the Beijing Maternity Hospital to attend a consultation on the issue of having her eggs frozen. As a result, it was confirmed that both her body and the eggs are healthy after relevant medical examinations. However, her request to have her eggs frozen was rejected, and she was told by the hospital that egg freezing for single women is not allowed according to relevant regulations.

Ms. Xu believes, as an adult woman over 30 years, she has the right to freeze her current eggs, which are best suited to ensure her fertility. She stated: “I’m an average single woman, but single women can have a lot of choices to reproduce. ” Though realizing it’s not easy, Ms. Xu decided to do something to fight for the right for herself and for all the women who share the same fate as her.

Without egg freezing or other assisted reproductive tech, single women over  35 are likely to lose the chance of raising children for the rest of their lives

She sued the hospital in local courts. Since March of 2019, Ms. Xu has been rejected three times in different courts for trying to file a lawsuit in connection with a “medical contract dispute”. In September this year, she changed the cause of action to “general personality right” and this time, the court accepted her lawsuit.

1. Human Assisted Reproductive Technology Code (“HARTC”) developed by former Minister of Health in 2001 has made regulatory restrictions on egg freezing of single women, hospital has to comply with this HARTC.

2. Egg freezing technology for single women is not mature enough.

3. Single women wanting to have children will cause educational issues.

4. If egg freezing for single women is allowed and widely carried out, female childbearing age will be delayed further.

5. There are also ethical issues involved, such as surrogacy.

Obviously, Ms. Xu doesn’t agree with these arguments. She thinks egg freezing for single women does not mean that the child will be born in a single-parent family,as single women probably will get married in the future. In addition, married couples may also have the problem of educating children in single-parent families as a result of an increasing divorce rate.

Whatever the reason is, it’s not good enough to restrict a woman’s right to decide when and how to raise a child herself.

“My case actually represents the needs of many single women. “In Xu’s view, “egg freezing” is more like an insurance policy, “With this insurance, if I change my idea in the future, there is also an opportunity to re-make my choice.”

It’s a biological rule that women have a shorter reproductive period than men.  However, in modern society, a woman’s marriage is generally delayed. Even married women have to postpone giving birth to a baby because of competition in promotion or their personal plans for career development, etc. It seems that egg freezing provides women with a choice regarding the timing of giving birth to baby.

The HARTC issued by the former Ministry of Health states: “The implementation of human assisted reproductive technology to couples and single women who do not comply with the national population and family planning regulations and regulations is prohibited.” However, this provision not only has no legal basis, but also conflicts with existing laws in China, such as:

Article 51 of the Law on the Protection of Women’s Rights and Interests states: “Women have the right to have children in accordance with the relevant provisions of the State, as well as the freedom not to have children.”

Article 25 of the Marriage Act also provides that: “children born out of wedlock have the same rights as children born in wedlock and no one shall be subjected to harm or discrimination.”

Article 17 of the Population and Family Planning Act provides for the “right of citizens to have children”, which clearly includes single women and is not limited to couples in marriage.

Although these are some general provisions on the reproductive rights of single women in Chinese legislation. But according to the principal of “A citizen can do anything which is not prohibited by law”, as long as it does not hurt the public interest, people have the liberty to choose the life they want to live, we believe that single women (or unmarried women) deserve the right to freeze their eggs.

Furthermore, according to the current “Basic Standards and Technical Specifications for Human Sperm Banks” in China, the conditions for self-preservation are explicitly mentioned as “reproductive insurance” for the purpose of keeping sperm for future births, and there is no need to be married. To allow single men to freeze sperm on the one hand, and to prohibit single women from freezing their eggs on the other hand, is blatant gender discrimination.

In reality, many excellent women do not want to rush into marriage if they haven’t found their “Mr. Right” yet. However, the optimal age for women to give birth is before the age of thirty-five. For women who have not yet found their “Mr. Right” at the age of 35, they are likely to lose the chance of raising children for the rest of their lives, without resorting to egg freezing or other assisted reproductive technologies.

The biggest benefit of egg freezing and other related assisted reproductive techniques is to help this group of women to extend the window of their reproductive capability and help them fulfill their desire to become a mother. In addition, many women are capable of raising children on their own. We also have to respect their right of choosing to raise children differently.

In fact, in China, many single women have the need to freeze their eggs, there are many professional medical institutions which have the technology to provide such services. But some single women have to choose to freeze their eggs overseas (which is much more expensive and cumbersome), just because domestic regulations prohibit single women to do so.

On the other hand, according to recent statistics, the population of newborn babies in China is falling rapidly, despite the policy of removing restriction for a second child of the average Chinese family. Some experts are worried about the declining population in the near future and are calling for incentives to encourage young women to have more children.

Why then deny healthy and capable women the right to have a child in the first place – even if it’s brought about by reproductive medicine?

Draft of VAT Law of PRC, What's Your Comment?

On November 27th, 2019, the Ministry of Finance and the State Administration of Taxation have released the draft of a Value added Tax Law of the People’s Republic of China for public comments.


As a matter of fact, China has gone through a series of reforms in its VAT collection practice. This law will be a consolidation of undertaken reforms, while maintaining the overall tax framework and level of current taxation.

The highlights:

1. Who Should pay

Entities and individuals that engage in taxable transactions in China with a revenue reaching the VAT threshold and consignees of imported goods are taxpayers of VAT.

The VAT threshold is 300,000RMB of quarterly sales.

2. Computation method

VAT shall be computed and paid under the general tax computation method, except where the government stipulates that the simple tax computation method applies.

With regards to the general tax computation method, the tax payable shall be the balance of the output tax deducting the input tax.

However, for the simple tax computation method, the tax payable shall be the revenue times a levy rate, and the input tax shall not be offset. Currently, the simple tax computation method only applies to small scale taxpayers, or generally speaking, entities whose annual revenue is less than 5 million RMB. (You may check our previous post for more info:General Taxpayer or Small Scale Taxpayer?

3. Tax rate

The applicable tax rate for the sale of goods, processing, repair and maintenance services, movable property, rental and import of goods is 13%; the applicable tax rate for sales of transport, postal service, telecommunication, construction, real estate rental, transfer of land use rights, sale or import of agricultural products is set at 9%;

the applicable tax rate for sale of services, intangible assets and financial commodities is kept unchanged at 6%.

The levy rate of VAT for simple tax computation is 3%. 

This new VAT law will be a consolidation of undertaken reforms, while maintaining the overall tax framework and level of current taxation.

4. Imported goods

For imported goods, the tax payable is computed based on the composite assessable price and the applicable tax rate. The computation formulas are as follows:

Composite assessable price = Price for Customs Duty Consumption Tax

Taxable Amount = Composite Assessable Price × Tax Rate

Though it’s just a draft for comments, however most of the provisions are already implemented in practice. As a consequence, there should neither be many surprises nor adjustments necessary for businesses once the new law officially comes into effect.

However, if you have any comments, you can provide your comments through the “Information Solicitation System”   on the homepage of the website of the Ministry of Finance of the People’s Republic of China  or through the “Information Solicitation System” on the homepage of the website of the State Taxation Administration   before 26th of Dec, 2019.

In our opinion, the new law will be promulgated in early January of 2020, unless something unexpected happens. We will see.

How Much IIT a Foreigner Have to Pay in China

The new Individual Income Tax law of PRC has come into effective for almost one year, but how to calculate the tax payable still remain a problem, particularly for foreigners working in China.

This post will address some main issues related:

1. A foreigner could be a“resident individuals”

individuals who do not have a domicile in China but have resided in China for 183 days or more cumulatively within a tax year, shall be deemed as resident individuals.

2. How a foreigner pay IIT as a resident individual

1. Where the foreigner resides in China for 183 days or more cumulatively per tax year for less than six consecutive years.

his/her income from all salaries shall be subject to individual income tax, except for the portion of salaries paid by an overseas employer.

2. Where the foreigners resides in China for 183 days or more cumulatively per tax year for more than six consecutive years.

his/her income from salaries derived in China and overseas shall be subject to individual income tax.

3. Computation of tax payable

Tax payable over all comprehensive income shall be subject to individual income tax annually, the formula for computation of tax payable is as follows:

Tax payable for annual comprehensive income = (annual salary – deduction – special deduction – special additional deduction – other deductions determined pursuant to the law) × applicable tax rate – quick deduction.

4. Year-end bonus

Before 1 January 2022,year-end bonus will not be treated as “comprehensive income” such as salary, or monthly bonus. This bonus shall be apportioned over 12 months for tax computation purpose, with no deduction, and subject to the Monthly Tax Rate Table for computation of tax payable;  this tax computation method can only be applied once within a calendar year.

The computation formula shall be as follows :

Tax payable = [ × applicable tax rate – quick deduction] × 12

5. Allowances and subsidies and special additional deduction

Before 1 January 2022, a foreigner may choose to claim deduction for eight allowances and subsidies such as: housing allowance, child education fee, language training fee etc, instead of claiming special additional deduction. After 1 January 2022, only special additional deduction available.

However, for special additional deduction, including children’s education, continuing education, medical treatment for major illness, housing loan interest or housing rent, support for the elderly, will be deducted as per provision.

Quick Computation Chart for Individual Income

GradeAnnual taxable incomeTax rate (%)Quick Deduction
1Income of RMB 36,000 or less30
2The part of income in excess of RMB 36,000 to 144,000102520
3The part of income in excess of RMB 144,000 to 300,0002016920
4The part of income in excess of RMB 300,000 to 420,0002531920
5The part of income in excess of RMB 420,000 to 660,0003052920
6The part of income in excess of RMB 660,000 to 960,0003585920
7The part of income in excess of RMB 960,00045181920
Applicable to yearly comprehensive income
Applicable to yearly comprehensive income

Example A:

David’s yearly salary: 360000RMB, allowance is 120000RMB, the taxable income is 360000—60000-120000=180000RMB, tax payable=180000*20%-16920=19080RMB

Example B:

David get a year-end bonus, which is 50000RMB,

50000/12=4166.67

Tax payable=(4166.67*10%-210)*12=2103.34RMB

Useful link:

State Taxation Administration

Optimization of Business Environment

On Jan. 1, 2020, the Foreign Investment Law will come into effect.  In addition, the Regulation on the Optimization of Business Environment will come into effect as well, which was promulgated on October 8, 2019. This is good news for people doing business in China.

Let’s look at some highlights of these new regulations:

1.  The direct allocation of market resources and the direct intervention in market activities by the government will be reduced, minimizing institutional-oriented transaction costs.

2.   The establishment of a unified, open, and modernized market system designed to promote the free flow of various production elements, and guarantee fair market competition, is expected to be accelerated.

3. China government shall further open up domestic (Chinese) business to the outside world and actively promote  foreign investment, giving equal treatment to domestic-funded enterprises and foreign-invested enterprises.

China government determined to relax restrictions on market access and implements a national unified negative list system for market access.

4. Competent authorities will establish a punitive compensation system for infringement of intellectual property, improve the assistance mechanism for protecting intellectual property, and intensify the protection of intellectual property. They will also Improve the efficiency of trademark registration and the patent application review.

5.   Enterprise registration rules, streamline of the formalities required for enterprise registration will be standardized.  The reform of “separation of permits and business licenses” will be promoted.

For existing administrative permits, they will either cancel examination and approval of some permits or change the examination and approval procedure to record filing, or the business owner will have to promise that they are qualified (or will be qualified) within a certain timeframe, or optimize the examination and approval procedure, improve examination and approval efficiency, if the permits are still required. Except for specific areas stipulated by laws and administrative regulations, permits shall not be a prerequisite for enterprise registration.

6.     Relaxes restrictions on market access and implements a national unified negative list system for market access.

Useful link:

MINISTRY OF COMMERCE OF THE PEOPLE’S REPUBLIC OF CHINA

Further Utilize Foreign Investment

On 7th of Nov, 2019, the State Council released the Opinions on Further Improving the Utilization of Foreign Investment, which put forward 20 measures to utilize foreign investment further.  The measures could be divided into four aspects namely, deepening market openness to foreign investors, promoting investment, deepening reform to facilitate investment and protecting the legitimate rights and interests of foreign investors.

Specific provision includes:

1. Move faster to further open up the financial industry.

 China will eliminate all restrictions on the scope of business for foreign banks, securities companies and fund management companies, and remove requirements on total assets for the establishment of foreign-funded banks.

2. Deepen reform to facilitate investment.

China will lower the cost of cross-border capital use, and optimize the approval process for the use of land for foreign-funded projects.

3. Continue to reduce the negative list of foreign investment access in the national and free trade pilot zones, and comprehensively clean up and remove restrictions that are not included in the negative list

China will deepen market openness to foreign investors, promoting investment and protect the legitimate rights and interests of foreign investors

4. Optimize foreign investment policies in the automotive sector.

5. Make it easier for foreigners to work in China.

For innovative entrepreneurial talent and talent with professional skills that are urgently needed in China, restrictions over age, education and work experience etc. can be appropriately relaxed. Foreign students with an intention to innovate and start a business may apply for a 2-years residence permit in the private affairs category with the diploma of Chinese university. For foreigners who have applied for a work-type residence permit twice consecutively, a 5-years work-type residence permit can be issued in accordance with the provisions upon the third application.  The government will optimize the process of applying for work permits for foreigners to work in China, improve the information sharing mechanism among governmental departments, and explore the possibility of integration of work permits and residence permits.

6. Guarantee equal participation in government procurement in accordance with the law.

7. Improve the protection mechanism of intellectual property rights of e-commerce, and improve the rules for notification of patent infringement determination and removal of the infringing list on e-commerce platforms.

8. Optimize the requirements of the form of evidence in intellectual property cases involving foreign-invested enterprises, apply the presumption of fact and reasonably reduce the litigation burden of such enterprises. Strengthen the protection of trade secrets, reasonably allocate the burden of proof, and strengthen civil and criminal protection of IPR.

Useful link:

MINISTRY OF COMMERCE OF THE PEOPLE’S REPUBLIC OF CHINA

Tax Credit Repair in China

On 13th of Nov, 2019, the State Taxation Administration released an Announcement on Matters Related to Tax Credit Repair, to be effective from January 1, 2020.

entity taxpayers may apply to the competent tax authorities for tax credit repair within the prescribed time limit if they correct their behavior

According to the announcement, entity taxpayers may apply to the competent tax authorities for tax credit repair within the prescribed time limit if they satisfy one of the following conditions:

(1) They have handled the tax declaration, tax payment and data filing, after failing to do so, in accordance with the statutory time limit, or

(2) For those who failed to pay tax in full, or pay overdue fine as demanded by the tax authorities however, whose behavior is not serious enough to constitute a crime, (hence they were directly considered as a D-level credit taxpayer), if they have paid or made up all tax payable within 60 days upon the final decision made by competent tax authorities.

(3) The taxpayer fulfills the corresponding legal obligations and the tax authorities lift the abnormal household status according to law.

According to the announcement, the prescribed deadline should be the end of next year when the taxpayer is put in the record by the tax authorities. The tax authority will adjust the status of the taxpayer’s credit evaluation index according to the correction of their behavior, and re-evaluate the tax credit level of the taxpayer, but may not evaluate it as A-grade.

Meanwhile, the announcement stipulates that the tax credit repair can only be applied once in a tax year.

Useful link:

State Taxation Administration

MICHAEL JORDAN’s Trademark War in China

On October 16th 2019, the Supreme Court of PRC concluded the trademark dispute of Jordan Sports Company in Fujian province, holding that the trademark of the famous basketball player’s silhouette did not reflect Jordan’s personal characteristics, was not recognizable and did not constitute infringement of MICHAEL JORDAN’s right of portrait. Thus, they ruled in favor of Jordan Sports Company. That means the eight-year-old legal battle has finally come to an end with Jordan Sports Company retaining its “Jordan” trademark, it can put down its baggage for a second-round IPO preparation.

As the plaintiff, Michael Jordan claimed that the basketball player’s silhouette is an infringement of his portrait right. To be honest, based on Jordan’s status in those days, most consumers are inclined to link this silhouette to the name of MICHAEL JORDAN. Nevertheless, this silhouette is hardly a “portrait” of anyone in the legal sense, as there is no face at all! The Supreme Court declared that the disputable trademark “doesn’t reflect Jordan’s personal characteristics and is not recognizable”, thus they don’t think this trademark infringes Jordan’s portrait right.

Honestly speaking, this result is to many people’s surprise.  After all, it’s an obvious fact that, Jordan Sports Company did take advantage of the name “Jordan” – the basketball celebrity of The United States for many years. Many Chinese consumers were misled by the trademark and believed the product produced by Jordan Sports Company was more or less related to MICHAEL JORDAN. For example, they believed that MICHAEL JORDAN was probably the image spokesperson of the products, or the product originated in the US.  The truth is, Jordan Sports Company is a 100% Chinese company incorporated in Jinjiang of Fujian province, a city famous for its’ shoe-making industry, they have nothing to do with the USA nor MICHAEL JORDAN. Back in China twenty years ago, the IPR protection legal system was not very well established, by playing edge ball, this Company took advantage of the great reputation of MICHAEL JORDAN to open the market of sport products.

In fact, this lawsuit is just one of the series of lawsuits Jordan filed about the trademark “Jordan” or it’s Chinese transliteration or pinyin since 2012. According to Trademark Law of PRC, the general principle for trademark registration is ‘first-to-file’, meaning that whoever applied for the trademark first will get it. The exception is “prior rights”: meaning that applying for trademark registration may not prejudice the existing or ‘prior’ rights of others.

MICHAEL JORDAN had asked for revocation of 78 registered trademarks owned by Jordan Sports Company, based on the “prior rights” of his name, or based on an accusation of infringement on the portrait right.

In 2016, the Supreme Court ruled revocation of three of the 78 registered trademarks. Three trademarks “乔丹” (the Chinese transliteration of Jordan) owned by Jordan Sport Company were revoked based on the argument that Michael Jordan had a prior right over these two Chinese characters.  Michael Jordan’s victory however seems not so great at all, because the revoked “乔丹” trademarks were merely defensive trademarks by Jordan Sports Company, applying to category 25, 28 and 32. The products that these three revoked trademarks related to were baby clothing, wedding dresses, beer, etc. and not the more important items such as sports shoes, sportswear, etc. because the time limit for making an application for revocation on these more important products had already expired. The time limit for revocation of a registered trademark is five years, MICHAEL JORDAN did not file a lawsuit against the “乔丹” trademark until 2012. It was therefore too late to revoke all of the other trademarks which had been registered more than five years ago. 

Michael Jordan’s team didn’t pay much attention to the China market and therefore missed their best chance to defend their rights

As a matter of fact, as the deadline of revoking the 乔丹 trademark on the category “sneaker” was missed, it won’t be easy for Michael Jordan to protect his rights any more. Initially, Michael Jordan’s team didn’t pay much attention to the China market and therefore missed their best chance to defend their rights, what’s done is done.

On the other hand, for Jordan Sports Company, they missed the 2012 time window for IPO because of this eight-year’s proceeds, they paid their price too.

We are going to discuss other lawsuits between Michael Jordan and Jordan Sports Company to help people to understand the reason behind the judgement.

Useful link:

TRADEMARK OFFICE OF NATIONAL INTELLECTUAL PROPERTY ADMINISTRATION, PRC

Highlights of The Amended Trademark Law of PRC

On 1st of Nov 2019, the forth amended Trademark Law of PRC took effect officially. Some long-term “headaches” for overseas corporations are addressed in this updated law. 

The highlights are as follow:

1. Malicious squatting will be cut down in multiple ways.

For quite a while now, trademark malicious squatting has been a nightmare for many overseas entities intending to do business in China.  More often than not, when these companies started their adventures in China, they found not only their brands, but also some similar brands, or even the Chinese transliteration of their brands, had been registered by someone already. As a result, there were very few options left: either they “buy” their brands back at an astonishingly expensive price, or they file a series long-lasting lawsuits to win it back (check our previous post How to Get Back My Trademark in China? ). The only legal ground they could count on were the provisions in article 44 of the Trademark Law: apply to invalidate the registered trademark. 

However, in practical court hearings, they found it was very difficult to get a positive outcome unless their brands had a strong name recognition, locally.

The new amendments have been put in place to address this and other issues.

the updated Trademark Law of PRC is intended to combat malicious squatting in initial review procedure, and malicious litigations

According to Article 4 of the updated Trademark Law: “Any application for trademark registration that is malicious and is not filed for the purpose of use shall be rejected.”

The reviewers of trademark registration are granted rights to reject any malicious application in the initial review stage. In article 19, it also stipulates that the trademark application agent has a duty to review to consider if a trademark application is malicious and shall not accept the entrustment to proceed if deemed a malicious trademark application. Furthermore, malicious squatting is one of the reasons to file an objection or invalidation before or after a trademark certificate is granted, based on the provisions in Article 33 and 44. In other words, the updated Trademark Law is intended to combat malicious squatting in initial review procedure, application agency procedure, application objection and trademark invalidation procedure.

Of course, how this provision of “trademark registration that is malicious and is not filed for the purpose of use” is applied in practice must be clarified by relevant implementing regulations or judicial interpretation. Generally speaking, malicious squatting should refer to any application of identical or similar trademark which:

1. Is owned by others;

2. Has some popularity;

3. In a category far beyond the applicant’s own scope of business.

2. Malicious registration and litigation will be punished.


Article 68 of the updated Trademark Law provides punishment for people who violate the provisions in Article 4 and Article 19.  It also provides that: “Whoever maliciously applies for trademark registration shall be subject to a warning, a fine, or any other administrative punishments, as the case may be; and whoever maliciously lodges a trademark lawsuit shall be penalized by the People’s Court according to law.”

3. More compensation for trademark infringement. 

Another highlight of this amendment is the increase of monetary compensation for trademark infringement. According to Article 63 of the amended Trademark Law, “For malicious infringement of exclusive rights to use trademarks, in serious cases, the compensation amount shall be determined in accordance with the aforesaid method based on one to five times of the determined amount,” while the original provision provides “one to three times” of the determined amount.

Where it is difficult to determine the actual losses suffered by the trademark owner due to the infringement or the gains derived by the infringer from the infringement or the licensing fee of the registered trademark, the Court shall rule on a compensation amount of not more than RMB 5 million based on the extent of the infringement, while the original provision stipulate a compensation of “not more than RMB 3 million”.

Useful link:

TRADEMARK OFFICE OF NATIONAL INTELLECTUAL PROPERTY ADMINISTRATION, PRC