Self-Defense Wins! Legal Verdict Finally

On the evening of November 22, 2020, Ms. Zhang, the owner of a restaurant in Zibo, Shandong Province, fought back after being assaulted by an intoxicated customer. However, her actions were deemed “mutual affray”, resulting in a five-day administrative detention and a 200-yuan fine. The customer, citing the public security authority’s decision, demanded 40,000 yuan from Ms. Zhang as compensation for his alleged “injuries”… This incident prompted Ms. Zhang to seek clarity on whether her self-defense was legally justified and how the nature of the conflict should be properly determined.

After a protracted legal process involving first-instance and second-instance court trials, protests by procuratorial organs  and a retrial by the court, the case was finally rejudged as legitimate self-defense. This case not only concerns individual rights but also vividly illustrates the core legal principle that “law should not yield to lawlessness.”

Historically, in public security cases, the simplistic determination that “any act of fighting back constitutes mutual affray” hindered the practical application of the principle that “the law does not require the impossible”. In Ms. Zhang’s case, the initial law enforcement and judicial processes overlooked her urgent situation during the unlawful assault, conflating her defensive actions with those of the assailant. Such “equivocal law enforcement” blurred the line between justice and injustice, eroding public trust in the legal system’s impartiality.

Self-Defense Wins! Legal Verdict Finally

Today, significant positive changes are occurring in judicial practice. From the “Kunshan Anti-killing Case” to that of the Zibo restaurant owner , judicial authorities are increasingly breaking away from traditional mindsets, recognizing legitimate self-defense from a more rational and humane perspective. In Ms. Zhang’s case, the procuratorial organ’s in-depth investigation raised doubts about the cause of the assailant’s injuries. The court, during the retrial, considered the evidence and ruled that Ms. Zhang’s counterattack—aimed at stopping the unlawful infringement—did not constitute a violation of public security regulations.

Furthermore, the Draft Amendment to the Law on Public Security Administration Punishments of the People’s Republic of China, scheduled for further deliberation in June this year, includes new provisions on legitimate self-defense. This development underscores that the principle of “law not yielding to lawlessness” should serve as a fundamental standard for law enforcement and judicial activities, applicable to both criminal and public security cases. It calls on law enforcement and judicial personnel to abandon the simplistic approach of “punishing both parties equally” and accurately determine what constitutes legitimate self-defense.

As Professor Guo Zhilong from China University of Political Science and Law pointed out, the rejudgment of this case has two significant positive implications:

Firstly, it guides law enforcement agencies to routinely consider the possibility of legitimate self-defense by the party fighting back, thereby expanding the application of the self-defense system in law enforcement practice.

Secondly, it actively encourages citizens to safeguard their own and others’ legitimate rights and interests, fostering a social ethos where individuals are brave in upholding justice and protecting their lawful rights.

Should the School Be Liable for Kids Getting Injured on Campus?

Recently, a campus accident case in Wuxi, Jiangsu has attracted widespread attention. A sixth-grade student accidentally fell down the stairs after school and was injured. The parents sued the school, demanding 80,000 yuan in compensation. The court ultimately ruled that the school was not liable for damages—a result that surprised many. Does this mean schools are not responsible when students get hurt on campus?

In this case, 12-year-old Zhao Xiaomou fell while descending the stairs after school, sustaining dental injuries. The parents argued that the school failed in its supervisory duties and should compensate them, while the school provided substantial evidence: clear safety warnings such as “Watch Your Step” were posted in the stairwell, regular safety education was conducted, and teachers immediately contacted the parents and accompanied the child to the hospital after the incident. The court’s on-site inspection confirmed that the stair facilities were in good condition, with no evidence of pushing by others or structural defects.

Article 1200 of China’s Civil Code clearly stipulates that for personal injuries sustained by individuals with limited capacity for civil conduct during school hours, the school is only liable if it “**fails** in its educational or managerial duties.”

Should the School Be Liable for Kids Getting Injured on Campus?In this case, the judge examined three key aspects:

first, whether the school had taken preventive measures, including safety education and facility maintenance;

second, whether the response during the incident was timely and appropriate;

and third, whether proper medical care was provided afterward.

The court concluded that the school had fulfilled its responsibilities in all these areas and therefore should not be held liable.

This ruling sets an important precedent. In reality, many schools, fearing parental disputes, adopt overly cautious approaches—even canceling normal physical activities. This case sends a clear message: the judiciary will not “muddy the waters.” As long as a school fulfills its duties, it will receive legal protection. This not only safeguards normal teaching order but also guides parents toward rational dispute resolution—not every accident requires someone to “take the blame”; the key lies in determining whether fault exists.

Issues Regarding IIT Payment Timing for Foreigners in China

If you are a foreigner residing in China long-term, you may have heard the following regulations regarding foreigners’ individual income tax (“IIT”) payment in China: “For a non-domiciled individual who has resided in China for a cumulative 183 days in a tax year, if they have resided in China for a cumulative 183 days each year in the previous six years and have not had a single departure exceeding 30 days in any of those years, their income derived from both within and outside China in that tax year shall be subject to individual income tax; if in any of the previous six years, their cumulative days of residence in China were less than 183 days or they had a single departure exceeding 30 days, the income derived from outside China and paid by an overseas entity or individual in that tax year shall be exempt from individual income tax.”  Please check our previous post for more information: How Much IIT a Foreigner Have to Pay in China

However, this regulation leaves some detailed questions unanswered. To address this, we’ve compiled the following information based on relevant announcements from the State Taxation Administration, in the hope that it will be helpful to you.

Q1. How is the number of days a foreigner resides in China calculated?

A: A day of stay in China that is a full 24 hours shall be counted as a day of residence in China; a stay of less than 24 hours shall not be counted.

For example, David lives in Hong Kong. He comes to work in Shenzhen every Monday morning and returns to Hong Kong every Friday evening. The stays on Monday and Friday are each less than 24 hours, so they are not counted as days of residence in China, and the two weekend days are also not counted. Thus, only 3 days per week can be counted. Calculated based on 52 weeks a year, his total days of residence in China for the year amount to 156, which does not exceed 183 days, so he does not qualify as a tax-resident individual. All his overseas income is exempt from individual income tax.

Q2. For a foreigner who has “resided continuously for six years” in China, from which year does the calculation start?

A: The starting point for the consecutive “six-year” period (with cumulative 183 days of residence in China each year) is 2019 (inclusive). All years of residence before 2018 (inclusive) are uniformly “reset” and not counted.

Therefore, by 2024 (inclusive), all non-domiciled individuals have resided in China for less than six years, and their overseas income paid from overseas can enjoy tax exemption. In addition, if there is a single departure exceeding 30 days in any year starting from 2019, the previous consecutive years will be “reset” and the calculation will start anew.How to pay your IIT in China smart?

For example, David, a Hong Kong resident, came to work in Shenzhen on January 1, 2013, and returned to work in Hong Kong on August 30, 2026. During this period, except for a temporary return to Hong Kong to handle official business from February 1 to March 15, 2025, he stayed in Shenzhen for the rest of the time.

If calculated from 2013, the number of years David has resided in China for a cumulative 183 days would actually be six years. However, since the years before 2018 are uniformly “reset” and the calculation starts from 2019, during 2019-2024, David has resided in China for a cumulative 183 days for less than six consecutive years, so his overseas income paid from overseas is exempt from individual income tax.

In 2025, David will have resided in China for 183 days. Calculated from 2019, he will have resided in China for a cumulative 183 days for six consecutive years (2019-2024) without a single departure exceeding 30 days. Therefore, in 2025, David shall pay individual income tax on his income derived from both within and outside China.

In 2026, because David had a single departure exceeding 30 days in 2025 (from February 1 to March 15, 2025), the consecutive years of his cumulative 183 days of residence in the Chinese mainland are reset and the calculation starts anew. In 2026, David’s overseas income paid from overseas is exempt from individual income tax.

Do you understand now?

 

Brand Protection Strategy-China Customs Registration

Brand protection is not just a strategic move, it’s a vital lifeline. This article serves as a comprehensive guide to crafting an effective brand protection strategy in China, emphasizing the importance of trademark registration and the crucial role of China Customs in combating counterfeit goods.

1. The Foundation-Registering Your Trademark in China

The first step in any robust China IP strategy is to register your trademarks with China’s Trademark Office. As a first-to-file country, China grants rights to the first applicant, no evidence of actual using of the trademark is required. So, making trademark registration is an urgent priority.

While a trademark registration alone won’t eradicate counterfeit goods, it equips you with the legal capacity to enforce your rights and should be a cornerstone of your overall IP strategy. For more information regarding registering your trademark in China, you may check our previous post: Filing a Trademark Application in China

your brand is your identity; protect it with the same vigor you put into building it

2. Expanding Your Protection-China Customs Registration

For companies serious about curbing counterfeit goods originating from China, the next strategic move is to register your trademark with China Customs. This step is not just a legal formality but a practical necessity. Customs officials, while empowered to check every outgoing shipment, primarily screen against their own database. Without a registration, your brand is left vulnerable to counterfeit exports.

3. China Customs Trademark Registration Essentials

The process of registering your trademark, copyright, and/or patent with China Customs involves submitting several key documents, including a business license, registration certificate of the IP involved, power of attorney, and product images. This step is crucial for brands seeking to prevent the unauthorized use of their intellectual property on exported goods.

4. Seizure and Destruction-The Post-Registration Move

Registration with China Customs initiates a proactive defense against counterfeiting. Upon discovery of potentially infringing goods, Customs will notify you, providing a brief window to request seizure. If you choose to proceed, Customs will inspect the goods, and if found infringing, they will typically be destroyed or donated, with the associated costs deducted from your provided bond.

5. Understanding Timeframes and Actions

The timeline for registering with China Customs is approximately three to five months, contingent upon receiving a trademark certificate from China’s Trademark Office, which itself takes about nine to twelve months. This means that around fifteen months from filing your application, your brand could be protected from counterfeit exports.

In our opinion, registration with China Customs is actually the best cost-effective move to stop counterfeiting, it will cut the supply chain of the counterfeiting goods and even better yet, customs seizure may be used as strong evidence to sue the counterfeit factory. All you have to do is to register the trademark first, and then do the customs registration.

Our suggestion:

In the realm of brand protection, prompt action is everything. Register your China trademark and follow up with a registration with China Customs. This dual approach will significantly reduce the counterfeiting of your products, regardless of your industry or manufacturing location.

Remember, your brand is your identity; protect it with the same vigor you put into building it.

The Vital Role of China NNN Agreements

In the intricate dance of international business, protecting intellectual property (IP) is a delicate step that requires precision and foresight. When doing business in China, this becomes even more critical, and the China NNN Agreement emerges as a cornerstone of safeguarding your innovations. This agreement, crafted with an understanding of Chinese legal nuances and business practices, serves as a formidable shield against IP infringements. In this piece, we’ll delve into the essentials of creating a China NNN Agreement that stands as a bulwark for your IP.

* The Preliminary Phase: Choosing the Right Partner

The journey of manufacturing in China often begins with identifying a reliable factory. This choice is pivotal, as it sets the stage for the protection of your product. Before disclosing any detailed information, it’s imperative to ensure that your potential Chinese manufacturer enters into a suitable agreement.

* Secondly, this agreement should be based on three fundamental principles

1. Avoid Traditional NDAs

Non-Disclosure Agreements (NDAs) are typically designed to protect trade secrets and prevent information from being disclosed to the public. However, in China, the real threat to your IP often comes not from disclosure but from misuse by your supplier/factory itself.

They may steal information not to disclose it to others but to use it for their own gain. Therefore, your contract must explicitly state that your supplier/factory agrees not to use the information you provide, regardless of its classification as a secret. This is where the NDA falls short, as it does not address the misuse of information.

2. Opt for a China-specific NNN Agreement

This agreement should encompass non-disclosure, non-use, and non-circumvention, tailored to address the specific challenges of OEM manufacturing in China.

3. Enforceability in China

The agreement must be drafted in a way that it can be enforced within the Chinese legal system, which often requires it to be written in Chinese, governed by Chinese law, and exclusively enforceable in a Chinese court.

Make sure that your China NNN Agreement is not just a piece of paper but a robust shield against IP infringements in China.

* The China NNN Agreement is composed of three key elements

1. Non-Use

This clause prohibits the Chinese factory from using your ideas, concepts, or products to compete with you. The protection arises from the contract itself, not from abstract property rights under intellectual property law.

2. Non-Disclosure

This clause goes beyond preventing the factory from sharing your information with the public. In addition, internal disclosures within the factory’s group or to subcontractors, should be limited to those which is necessary for the purpose of complete the manufacture and the supplier/factory should be responsible for any inappropriate disclosure resulted in.

3. Non-Circumvention

This clause is crucial in industries where your Chinese factory might sell your product directly to your customers at a lower price, undermining your market position.

* Enforceability and Damages

When drafting your China NNN Agreement, it’s essential to consider the following:

– The agreement should be written to be enforceable in a Chinese court with jurisdiction over your Chinese counterparty.

– The agreement should provide for specific contract damages for each act of breach, giving the Chinese party a clear understanding of the consequences of violating the agreement.

– The damages provision should be set at an amount that reasonably substitutes for the damages resulting from a breach of the agreement, taking into account that Chinese law does not allow for punitive or extensive consequential damages.

* Choosing the Right Legal Counsel

Finally, it’s crucial to engage the right legal counsel for drafting your China NNN Agreement. Choose a lawyer who actually works for You, not just a so-called “big” law firm, whether local or international. One issue with collaborating with these large firms is the multitude of communication channels. The lawyer who initially greets you may not be the one actually working on your case (for example,you converse with a partner, but the actual work might be done by an intern you never get to interact with or understand). Opting for an experienced local lawyer who personally oversees your business from beginning to end may be a wiser choice for small and medium-sized enterprises.

By adhering to these principles, you ensure that your China NNN Agreement is not just a piece of paper but a robust shield against IP infringements in China. For more information regarding agreement on sourcing in China, you may check our previously post: Tips on Preparing OEM Contract with China Factory

A Concise Guide on Registering Copyright in China

In China, copyright is an automatic right that arises as soon as an original work is completed, without the need for registration. This protection extends to foreign authors from Berne Convention member states, including all EU member states. However, China offers a voluntary copyright registration policy that provides a certificate which can serve as proof of ownership in case of disputes, easing the burden of proof.

Why Register Copyright in China?

While not mandatory, registering copyright in China is advisable. The certificate is accepted as proof of ownership by courts and administrative authorities, saving time and effort in case of infringement. It also provides additional benefits for software copyright, such as tax deductions. You may check our previous post for more information: Benefits of Copyright Registration

It is highly recommended to register your copyright in China in an effort to save time and effort in case of infringement.

Who Can Register Copyright?

Copyright can be registered by the author, whether an individual, legal entity, or organization, or by others who have obtained the right through transfer or inheritance. In employment contexts, the employer typically holds economic rights (for example revenue from a graphic design sold), while the employee retains moral rights, meaning has the right of authorship. For commissioned works, copyright belongs to the commissioner unless otherwise specified.

Where to Register Copyright in China

The Copyright Protection Centre of China (CPCC) is authorized to administrate software and copyrighted works registration. Some local Copyright Bureaus also register copyrights for local citizens or enterprises. Foreign rights owners, especially for software, are advised to file with the CPCC.

Documentation Needed

For foreign individuals, required documents include a signed application form, photocopy of passport with translation, ownership statement, and a sample of the work. For foreign legal entities, these may include a business license, legalized incorporation document, and a sample of the work. Additional certifications may be needed for inherited or acquired works.

Procedure

The process involves setting up an account on the CPCC website, completing and printing the application form, submitting the application and documents, and paying the registration fee. The CPCC will check the files, examine the application, and issue a certificate if approved.

Cost

Fees vary depending on the type of work, ranging from 100 RMB for written works of 100 words or less to 2,000 RMB for computer software. Additional fees apply for series of works.

Timeline

Once the application is complete, the registration certificate is typically issued within 30 working days. If documents are incomplete or require clarification, an additional two months may be needed.

In conclusion, copyright is an automatic right, however, copyright registration serves as evidence in court. It is highly recommended to register your copyright in China in an effort to save time and effort in case of infringement.

Should you need any assistance in this regard, feel free to contact us any time.

Updated Negative List Released on On September, 24

On September 8, 2024, the National Development and Reform Commission and the Ministry of Commerce released the “Special Administrative Measures for Foreign Investment Access (Negative List) (2024 Version)”, which will take effect from November 1, 2024.

According to the 2024 version of the “negative list”, the number of restrictive measures has been reduced from 31 to 29, removing restrictions such as “Printing of publications must be controlled by Chinese parties” and “Prohibition of investment in the application of traditional Chinese medicine processing techniques such as steaming, stir-frying, roasting, and calcining, as well as the production of TCM products with confidential prescriptions.” With this, foreign investment restrictions in the manufacturing sector have been completely lifted.

On the same day, the National Health and Family Planning Commission and the Ministry of Commerce jointly issued the “Notice on Carrying Out Pilot Work for Establishing Wholly Foreign-Owned Hospitals,” proposing to expand openness in the medical field through pilot programs. Specifically, it proposes allowing the establishment of wholly foreign-owned hospitals (excluding traditional Chinese medicine hospitals, and not including the acquisition of public hospitals) in Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen, and Hainan Province. Detailed conditions, requirements, and procedures for setting up wholly foreign-owned hospitals will be notified separately.

In the biotechnology field, foreign-invested enterprises in free trade test zones in Beijing, Shanghai, and Guangdong, as well as in the Hainan Free Trade Port, are permitted to engage in the development and application of human stem cell technology, gene diagnosis, and therapeutic technologies for product registration, marketing, and production.

According to the notice, overseas investors can set up or acquire wholly foreign-owned hospitals in the above-mentioned areas. Except for investors from Hong Kong, Macao, and Taiwan, other overseas investors are not allowed to establish traditional Chinese medicine hospitals in these provinces (municipalities).

The notice requires that proposed wholly foreign-owned hospitals must meet the basic standards established by the state; the approval authority for setting up wholly foreign-owned hospitals is delegated to the provincial level.

Additionally, the establishment and changes of wholly foreign-owned hospitals should follow the procedures and requirements stipulated by the “Regulations on the Administration of Medical Institutions”, the “Detailed Rules for Implementation of the Regulations on the Administration of Medical Institutions”, and the “Administrative Measures for Foreign Investment in the Commercial Sector”.

In fact, China currently has some wholly foreign-owned medical institutions, but allowing foreign capital to participate in the development of cutting-edge biomedical technologies is unprecedented.

Analysts believe that the current national negative list now only has 29 items, narrowing the gap with the free trade zone version, which has 27 items, indicating that the national version is moving closer to the free trade zone version, while the free trade zone version is extending further into the opening of service industry investment.

With China’s aging population and the growth of an absolutely wealthy demographic, a blue ocean market for high-end medical services has emerged. Coupled with the relatively weak competitiveness of the domestic medical industry, there is significant appeal for foreign investment.

Updated Average Salary & Related Provisions

Average Salary is typically calculated by the National Bureau of Statistics or local statistical bureaus based on a certain statistical caliber. Average salary generally refers to the total salaries of employees over a certain period divided by the number of employees.

According to the requirements of laws and regulations such as the Statistics Law of the People’s Republic of China, the National Bureau of Statistics publishes the average salary of non-private unit employees and private unit employees in urban areas annually (previous year). Provincial and municipal governments also publish local average salary levels, and these data are usually made public on official government websites.

According to relevant laws, average salaey data can be used to:

1. adjust the minimum wage standards, serving as a reference basis for the upper and lower limits of social insurance contribution bases.

2. being used for the calculation of social security benefits, such as the calculation of basic pension and the distribution of unemployment benefits.

3. serve as an important indicator for measuring the income level of residents, providing a basis for the government to formulate relevant policies.

Recently, related authority released the average local salary for 2023 ( please be noted that, the updated data in always from the previous year) in the website: (Unit: Yuan)

Related provisions in Social Insurance Law of the People’s Republic of China(中华人民共和国社会保险法)

Article 15:

…The basic pension is determined

based on the individual’s cumulative contribution years, contribution salary, average salary of local employees, personal account amount, average life expectancy of the urban population and other factors.

( For more information, please check our previous post: More on Social Insurance)

Article 56:

…Maternity allowance shall be calculated and paid according to the average monthly salary of the employee in the previous year of the employer to which the employee belongs.

(For more information, please check our previous post: Female employee rights in China)