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Foreign related civil and commercial cases referred to in these
Rules are 1) foreign related contact disputes and infringement;
2) disputes over Letters of Credit; 3) cases on revocations, affirmations
and enforcement of international arbitration awards; 4) cases on
the enforceability of arbitration clauses in foreign related civil
and commercial cases; 5) cases on affirmation and enforcement of
foreign court judgments and rulings.
For those who are not satisfied with the first instance trial rulings
or judgments delivered by courts in economic technology zones, the
local Intermediate Courts shall be the appellate courts. This rule
does not apply to border trade disputes, foreign related real estate
cases and foreign intellectual property cases.
Regulations on Directing Foreign Investment Guidance
Issue Date: February 21, 2002
Issue Body: State Council
Effective Date: April 1, 2002
Summary:
The regulations replaced the Interim Regulations on Directing Foreign
Investment Guidance issued in 1995, which was updated to keep pace
with China economic development. The major changes include: 1) restricted
foreign investment projects are now classified with out-of-date
technologies, projects adverse to resource saving and environmental
improvement, and projects engaging in the exploration of particular
mines requiring protective exploration.
The encouraged foreign invested projects, such as those engaging
in large investments and long-term pay off periods, construction
of energy, and transportation and public utilization, may enlarge
their business scopes upon approval. Permitted foreign invested
projects with 100% of product export rates are considered as encouraged
foreign invested projects.
The previous 1995 regulations divided restricted foreign invested
projects into type A and type B. Such classification was taken out
in the new regulations. So did the requirements on the terms of
equity joint ventures and ownership of fixed assets of Chinese parties
in restricted foreign invested projects.
Foreign Investment Industrial Guidance Catalogue (Revised 2002)
Issue Date: March 4, 2002
Issue Body: State Planning and Development Commission, State Economic
and Trade Commission and Ministry of Foreign Trade & Economic Cooperation
(MOFTEC)
Effective Date: April 1, 2002
Summary:
This catalogue was amended dramatically to keep pace with China's
economic development and China's commitments to WTO. A full copy
of the English version of the Catalogue is available upon request.
1. Encouraged List
1) Risk exploration of petroleum and natural gas: limited to
cooperation;
2) Exploration of low infiltrate oil and gas field: limited to
cooperation;
3) New technology development and application on improving of
crucial oil gathering: limited to cooperation;
4) New technology development and application on petroleum exploration;
limited to cooperation;
5) Manufacturers of automobiles and motorcycles: foreign investment
no more than 50%;
6) International maritime transportation business: foreign investment
no more than 49%;
7) International container transportation: foreign investment
no more than 50%; foreign parties will be allowed to hold controlling
shares no later than 2002; wholly-foreign owned company (WFOE)
will be allowed no later than 2005;
8) Road goods transportation companies: foreign parties will be
allowed to hold controlling shares no later than 2002 and WFOEs
no later than 2004;
9) Wholesale, retail and logistics
10) Accounting and auditing: limited to cooperation and partnership.
2. Restricted Catalogue
1) Cross-border bus transportation: allow foreign parties to
hold controlling shares after 2002; WFOEs allowed after 2004;
2) Water transportation: foreign investment no more than 49%;
3) Railroad cargo transportation: foreign investment no more
than 49%; foreign parties controlling shares no later than 2004;
WFOEs no later than 2007;
4) Telecommunications Companies
a) Value-added services and paging services: foreign investment
no more than 30%, 49% no later than 2002, 50% no later than
2003;
b) Mobile voice and data service: start from 2001, foreign investment
no more than 25%, 35% no later than 2002, 49% no later than
2004 and WFOEs allowed no later than 2006;
c) Domestic and international business in basic telecom service:
foreign investment allowed no more than 25% no later than 2004,
35% no later than 2006 and 49% no later than 2007.
5) Trading companies
a) Commission agent, wholesale (excluding salt and tobacco):
foreign investment allowed no more than 50% no later than 2002,
but excluding newspaper, medicine, pesticide, fertilizer, crude
oil and finished oil; foreign parties controlling shares no
later than 2003; WFOEs allowed no later than 2004, newspapers,
magazines, medicines and pesticides allowed in 2004; fertilizer,
crude oil and finished oil no later than 2006;
b) Retail (excluding tobacco): currently foreign investment
allowed, excluding newspapers and magazines, medicines, pesticides,
fertilizers and finished oil; foreign investment up to 50% no
later than 2002, allowing newspapers and magazines; foreign
parties controlling shares no later than 2003; WFOEs no later
than 2004 and medicines, pesticides, and finished oil allowed;
fertilizer allowed no later than 2006;
c) Franchising, wholesale and retail without fixed location:
foreign investment allowed no later than 2004.
6) Distribution of audio-visual products: limited to cooperation,
Chinese parties with controlling shares;
7) Goods leasing company
8) Agency
a) Shipping: foreign investment no more than 49%;
b) Cargo transportation (excluding post office services): foreign
investment no more than 50% (express delivery service no more
than 49%); foreign parties with controlling shares no later
than 2002; WFOEs allowed no later than 2005;
c) Foreign investment no more than 49%; foreign parties with
controlling shares no later than 2003; WFOEs allowed no later
than 2005;
9) Insurance
a) Insurance companies other than life insurance: foreign investment
no more than 51%; WFOEs allowed no later than 2003;
b) Life insurance: foreign investment no more than 50%;
10) Securities, securities investment fund management company
a) Securities companies: foreign investment no more than one-third
allowed no later than 2004;
b) Securities investment fund management company: foreign investment
no more than 33%; up to 49% no later than 2004;
11) Insurance broker: foreign investment no more than 50%; up
to 51% no later than 2004; WFOEs no later than 2006;
12) Import and export products inspection, authentication and
certification company: foreign parties with controlling shares
no later than 2003; WFOEs no later than 2005.
Rules on Civil Litigation Evidence
Issue Date: December 21, 2001
Issue Body: Supreme People's Court
Effective Date: April 1, 2002
Summary:
The Rules was considered an important improvement to China's civil
procedures regarding evidence rules. The Rules include 83 provisions
divided into 6 parts on topics such as parties' burden of proof,
the power of People's Courts to investigate and collect evidence,
time limit of burden of proof and evidence exchange, cross-examination,
review and evaluation of evidence.
The Rules list eight instances of tort under which the alleged
tort-feasor shall bear the burden of proof. In cases where medical
negligence is alleged, hospitals must now prove that there was no
link between the medical treatment and the alleged injury and that
no negligence was involved. This provision was designed to alleviate
the burden on patients of proving hospital negligence without access
to medical records. In labor dispute cases, the burden of proof
has shifted to employers if the disputes are over dismissal, removal,
termination, compensation deduction or calculation of working period.
Plaintiffs in China often find out themselves at a disadvantage
in situations where the defendant hides key evidence and only discloses
it during court proceedings, catching the plaintiff off guard. Under
the new Rules, People's Courts will set time limits, and parties
who fail to submit evidence within the limits will generally be
barred from doing so if it leads to unfair surprise.
Article 73(3) allows using certain kinds of audio-visual materials
that are obtained through legal methods as evidence in civil cases.
Such materials shall be used along with other forms of evidence.
Lehman
Lee & Xu
China Lawyers, Notaries, Patent, Copyright and Trademark Agents
http://www.chinalaw.cc/
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