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  • 2024-01-31
  • 4 minutes Read
The revision of the “Company Law of the People's Republic of China” will come into effect on July 1, 2024

Since the “Company Law” is adopted on December 29, 1993, it has undergone multiple revisions. On December 29, 2023, the 7th meeting of the 14th National People’s Congress Standing Committee voted to pass the newly revised “Company Law” (hereinafter referred to as the “2024 Company Law”), which will come into effect on July 1, 2024. The 2024 Company Law has made significant adjustments compared to the current one in many aspects, such as the company capital system, shareholder’s contribution responsibility, protection of minority shareholder’s rights and interests, organizational structure, effectiveness of company resolutions, company registration and etc.. Article Title Key…

  • 2024-01-31
  • 6 minutes Read
Whether overseas arbitration institutions could govern the contract disputes between two domestic foreign-funded companies?

Company A, a US funded enterprise in Jiangsu, and Company B, a Japanese funded enterprise in Shanghai, have signed a sales contract, in which stipulates that in the event of a dispute, either party may submit it to an arbitration institution in Hong Kong for arbitration. Is this agreement valid? A typical viewpoint is that one of the basic principles of civil laws is the “autonomy of will”, and such agreements should be valid. In fact, such viewpoint is incorrect. The attitude of the Supreme People’s Court is very clear. In Article 83 of the “Answers to Practical Issues in…

  • 2024-01-31
  • 4 minutes Read
An employee was hit by a car on his way home on the day of resignation, is it a work-related injury or not?

At noon on July 31, 2017, Wong completed his resignation procedures and left the company. Unexpectedly, Wong was dead in a traffic accident on his way home. He was not liable in this accident. Wong’s family filed an application for work-related injury recognition, the Human Resources and Social Security Bureau of Shanghai Pudong New District approved the application. The company refused to accept this recognition, and filed an administrative lawsuit against the bureau. Both the courts of the first instance and second instance supported the bureau. ((2018) Hu 01 Xing Zhong No.1436). According to Article 14, Paragraph 6 of the…

  • 2024-01-04
  • 4 minutes Read
The “Implementing Rules for the Patent Law of the People's Republic of China” have been revised and will be implemented from January 20, 2024

Following the revision of the “Patent Law” in 2020 and China’s application to join the “Hague Agreement on International Registration of Industrial Designs” of the World Intellectual Property Organization on February 5, 2022, in response to these changes, the State Council passed the revised draft of the “Implementing Regulations of the Patent Law” on December 11, 2023, which will be implemented from January 20, 2024. The key points of this revision include: To furtherly clarify the criteria for identifying circumstances where novelty factor shall not be affected. Article 24 of the “Patent Law” stipulates that, “Where an invention-creation for patent…

  • 2024-01-04
  • 5 minutes Read
Do AI generated images and articles shall be deemed as “works” protected by the “Copyright Law”?

At the end of November 2023, a judgment by the Beijing Internet Court sparked heated discussions. In this case, the plaintiff used AI to generate images and published them on Xiaohongshu (an app), the defendant used those images in his article. The plaintiff filed a lawsuit to the court on the grounds of copyright infringement. The first instance judgment of the Beijing Internet Court held that the images generated by AI in this case should be deemed as “works” protected by the “Copyright Law”, so the defendant has constituted a copyright infringement. In this case, the Beijing Internet Court pointed…

  • 2024-01-03
  • 3 minutes Read
Shall we give a 30 days’ notice to the employee for the expiration of his/her labor contract?

The labor contract signed between a company in Beijing and Tian is valid until October 8, 2021. The company sent a renewal notice to Tian on October 8, 2021, but the two parties did not reach an agreement on the renewal afterwards. Later, Tian filed a labor arbitration, one of his claims is that he requested the company to pay compensation for failure to provide 30 days prior notice. The labor arbitration, the court of the first instance, and the court of the second instance all supported this claim ((2023) Jing 02 Min Zhong 7836). Many people may be surprised…

  • 2023-12-04
  • 3 minutes Read
The “Measures for the Promotion of Enterprise Standardization” will come into force on 1 Jan. 2024

In recent years, the administrative function has gradually changed from pre-supervision to post-supervision in China. The administrative supervision regarding enterprise standardization is no exception. The “Measures for the Promotion of Enterprise Standardization” (hereinafter referred to as the “New Measures”) will come into force on 1 Jan. 2024, which will replace the “Administrative Measures on Enterprise Standardization”. The following is a brief introduction to the main contents of the “New Measures”. Q1: Whether an enterprise must formulate its enterprise standards? A1: It depends. According to Article 7 of the “New Measures”, if enterprise uses mandatory standards, recommended standards, without adding its…

  • 2023-12-04
  • 5 minutes Read
Risks and precautionary measures related to sponsorship

In order to contribute to the community and enhance awareness for brands, many companies would sponsor public service activities, themed conference, competitions, and etc., no matter voluntarily or not. Such sponsorship is supposed to be a win-win event, but if the sponsorship is implemented in a wrong way, it may bring risks to those companies. Generally, the risks related to sponsorship include the following: Firstly, it may constitute commercial bribery. Companies provide sponsorship for gain competitive advantages may be recognized as commercial bribery by administrative authorities and judicial authorities, because such sponsorships may be deemed as violations of the “Anti-unfair…

  • 2023-12-04
  • 3 minutes Read
In business activities, whether alcohol-related deaths could be identified as work-related injuries?

At the end of each year, various business gatherings and enterprises’ annual parties are typical programs. Alcohol is one of the links in those activities. Some people may be tipsy, some people may get drunk, and some people may die. If an individual died due to drinking too much alcohol in a business gathering, whether such death could be identified as a work-related injury? It depends. Firstly, if an employee got drunk and met the intoxication standard, such circumstance shall not be identified as a work-related injury. Both Article 37 of the “Social Security Law” and Article 16 of the…

  • 2023-11-01
  • 3 minutes Read
The Convention Abolishing the Requirement of Legalisation for Foreign Public Documents will enter into force in China on November 7, 2023

Foreign personnel, foreign companies, and foreign-related businesses inevitably involve foreign public documents, such as identity certificates, subject qualification certificates, credit certificates, ownership certificates, etc. For a long time, any foreign public document which shall be submitted to the administrative or judicial departments in China, shall go through notarization and authentication procedures. Specifically, the document shall be notarized in the country where it is produced (hereinafter referred to as the “host country) , then be authenticated by the ministry of foreign affairs of the host country or the consulate assigned by the ministry of foreign affairs, and finally be authenticated by…