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  • 2022-09-30
  • 4 minutes Read
To well manage the recovery of creditor's rights

Because the current economic situation is severe, the recovery of creditor’s rights of enterprises becomes riskier. It is very important for enterprises to well manage the recovery of creditor’s rights, including to take necessary measures to manage the risks, to take necessary measures to recover debt as soon as possible. This article intends to provide reference for enterprises to establish a mechanism regarding the recovery of creditor’s rights based on practical experience. The fundamental logic of such mechanism is that enterprises shall manage the creditor’s rights during the whole procedure, including the risk evaluation before a transaction, risk identification during…

  • 2022-09-30
  • 4 minutes Read
Practical issues related to the implementation of subrogation

A owed B money, but was unable to pay it back. B found that C owed A money, then he required C to repay the money directly to himself. This is a typical case of the implementation of subrogation. Article 535 of the “Civil Code” stipulates that, “where the obligor is remiss in exercising its claims or the accessory rights related to its claims, thereby affecting the realization of the matured claims of the obligee, the obligee may petition the People’s Court to exercise the rights of the obligor against the counterparty in subrogation in its own name, except that…

  • 2022-09-01
  • 4 minutes Read
"Administrative Provisions on the Account Information of Internet Users" has come into force on August 1, 2022

In April 2022, Baidu Tieba, Weibo, TikTok and many other online platforms have added the display IP address bar, which reveals a veil of Internet users. Shortly thereafter, the Cyberspace Administration of China issued the ” Administrative Provisions on the Account Information of Internet Users ” (hereinafter referred to as the “Provisions”) on June 27, 2022, which has come into force on August 1. The regulations clarify the registration, use and management rules of user’s account from the two dimensions of Internet information service providers and users. It is worth noting that, for enterprises, in the event of an online…

  • 2022-09-01
  • 5 minutes Read
Is “Pay When Paid” article valid?

The “Pay When Paid” (hereinafter referred to as the “PWP”) clause usually applied in the chain contracts. The typical feature of PWP is that there are two contracts, a party sets the payment of the upstream party as the precondition for the payment to the downstream party. Such clause could help the party to reduce risks related to the payment, which is widely used in contracts such as construction, advertising, technical services, bulk cargo transactions and so on. However, the validity of such clause is not clearly defined in the current laws, so it is impossible to affirm such clause…

  • 2022-09-01
  • 4 minutes Read
Potential risks of using maps in advertisements

Many companies prefer to use maps to mark business scope, by which they could introduce their scale or business scope. Article 9 of the “Advertising Law” stipulates that advertisements shall not, …… (4) harm the dignity or interests of the State and divulge State secrets; ……” Since 2017, administrative penalty cases due to the improper use of maps are very common. In practice, although many companies hope to avoid such penalty, many of them do not have a comprehensive understanding of how to avoid such risk. After analyzed the previous administrative penalty cases, in order to avoid such risk, it is…

  • 2022-08-01
  • 5 minutes Read
Whether legal representatives could shake off the restriction of high-level consumption?

Company B sued Company A regarding a contract dispute, and won the lawsuit. A failed to perform the effective judgment, so B applied for enforcement. As W is the legal representative of A, B applied the court for adopting measures on restriction of high-level consumption on W. In 2019, A changed its legal representative from W to Z, and then W applied to the court for lifting the order of such restriction. (See (2020) Yue 01 Zhifu No. 349) It can be seen from the above case that in some cities, a legal representative adopted with such restriction could replace…

  • 2022-08-01
  • 8 minutes Read
The “Security Assessment Measures for Outbound Data Transfers” will come into force on Sep. 1, 2022

The “Security Assessment Measures for Outbound Data Transfers” (hereinafter referred to as the “Measures”) has been promulgated on May 19, 2022, and will come into force on Sep. 1, 2022. Foreign invested enterprises exchanges data with overseas affiliates occasionally, so it is highly recommended to pay attention to relevant requirements as stipulated in the “Measures”. The following is a brief introduction to the main provisions of the “Measures”. Evaluation object Article 2 of the “Measures” stipulates that this “Measures” applies to the security assessment of critical data and personal information collected and generated by a data processor in its operation…

  • 2022-08-01
  • 6 minutes Read
Is the "Safe Harbor" of internet platform disappearing?

The video of the “Tan Tan Transportation”(谭谈交通) was removed from several major internet platforms, which is the latest typical network infringement case. In similar cases, the obligee may claim for infringement against the infringer and relevant internet platforms. The “Safe Harbor Principle” derived from the “Digital Millennium Copyright Act of the United States”, which has built a safe harbor for internet platforms, that is, unless an internet platform ignores the obvious infringement and does not take corresponding measures, it could be exempted from liabilities according to this principle. However, in recent years, there are changes in the legislative and judicial…

  • 2022-05-30
  • 3 minutes Read
Attention! Several favorable polices have been issued.

On April 25, 2022, the Ministry of Human Resources and Social Security, the Ministry of Finance and the State Administration of Taxation jointly issued the “Notice for adjusting the unemployment insurance to stabilize posts and improving work skills to prevent unemployment” (Ren She Bu Fa [2022] No.23, hereinafter referred to as the “Notice”), which involves many favorable policies for enterprises. Refund of unemployment insurance premiums The “Notice” stipulates that unemployment insurance premiums can be refunded in different proportions according to the size of the enterprise and the rate of layoffs. The premise of the refund is that the insured enterprise…

  • 2022-05-30
  • 5 minutes Read
Whether the mortgagee could realize the mortgage after the expiration of the mortgage registration term?

In order to do business with Company A, Company B mortgaged two properties to A and completed the mortgage registration. A sued B for a dispute and won the case. However, when A applied for the enforcement of two properties, it encountered two problems: the mortgage registration term agreed by both parties and actually registered was about to expire, and it is obviously that the court would seal up the properties after the expiry date; and B was deeply in debt, it had mortgaged two properties to serval other creditors (Company A’s mortgage was the first), and it was involved…