Lehman, Lee & Xu

Welcome to the inaugural issue of the Shanghai Lawyer. Shanghai is one of the most dynamic and fastest growing mega-cities in the world. It is quickly establishing itself as the leading financial and economic center of the Far East, on par with the likes of Paris and New York. The Shanghai Lawyer is a bi-weekly publication providing up-to-date newsworthy articles and legal information to professional and business persons around the world. We hope you enjoy the newsletter and welcome your comments and feedback.

Did you know?

By the end of November of 2001, foreign investment totaling approximately 6.97 billion US dollars was made in Shanghai, which is 58.82% more than the same period last year. Based on this rate, it is estimated that total investment for the year could surpass 7.5 billion US dollars. The top three investor countries are Japan, Britain and Switzerland.

Taiwanese Firm Cited for "indecent" Ad

A Shanghai District Court has upheld a ruling by the Shanghai Industrial and Commercial Administrative Bureau ordering the Taiwan-based Sophir Clothing Co. to pull their advertising campaign based on a particular ad. The Bureau fined Sophir 200,000 yuan (about $24,000 US) for what they ruled were "misleading" lingerie advertisements displayed at Metro stations. The ads in question used the Chinese character meaning "play" in place of another character with the same pronunciation but different meaning. As a result, the ad's slogan was changed from the "perfect women" to "philandering with women". When the ads first appeared they triggered sharp reaction and criticism from the public.

Shining Shanghai Mayor Replaced

After six productive years at the helm of the city government, Shanghai's mayor Xu Kuangdi has been replaced. During his six years in office, Shanghai has become one of the hottest attractions in the mainland for foreign investors. From General Motors to Thyssen-Krupp Steel to BP, Shanghai has been given a thumping vote of confidence. Scratch a Fortune 500 company and there is a better than even chance that it now has an operation in Shanghai. Add to that two Taiwan-linked semiconductor projects that have moved the city up the technological ladder and have strengthened Beijing's hand as it tries to resolve the cross-strait political dispute.

Multinationals have concluded that Shanghai is open for business. And, unlike many other areas of the mainland that have courted foreign investors, the city has projected an image of at least paying attention to the legal protections for investors. The resulting influx of investment projects has brought new jobs to the city, just as it was in need of finding ways to re-employ people who had been cut from the bloated payrolls of struggling state industry.

The city has made huge strides in addressing other key issues, such as its previously suffocating transport bottlenecks. Shanghai traffic congestion once rivaled Bangkok at its worst, but new roads, bridges and tunnels have sprung up around the city to at least ease - if not quite end - that mind-numbing problem. The city, in its pursuit of development, has not entirely neglected its cultural life, opening its cheque book to pay for a world class theatre, new museums and a major clean up of its environment.

The order to replace Xu came from Beijing, but it is unclear what the ultimate strategy was. Some analysts said this could be a holding position with a more important job to be secured at some later date. But most analysts feel it is more likely that he was moved aside to keep him from outshining dimmer lights as the Party gets ready for its next chance to divide the spoils of power at next year's 16th Congress. Deputy mayor Chen Liangyu had been promoted to the post of acting mayor.

Insurance Cheat Receives Punishment

An insurance cheat has been sentenced to two years in prison and fined 20,000 yuan (about $2,410 US) by the Shanghai Jing'an District People's Court. On June 5, 2000, a car owner discovered that his uninsured car had been stolen. The next day, he purchased a 3,000 yuan policy from the Ping An Insurance Co. of China. On June 8, he reported to police that his car had been stolen that day. He also asked Ping An to issue its insurance-coverage payment. On December 6, he received 64,000 yuan from the company. Following investigations by the insurance company, it was discovered that the claimant had actually purchased the policy after his car was stolen.

Shanghai Science Museum Opens with Eye-Popping Glitz

The brand new Shanghai Science and Technology Museum, the largest of its kind in Asia, was opened to the public on December 18, 2001. This 1.75 billion yuan, glass-and-steel facility is located in the Pudong District of Shanghai. RTKL International Architects of Los Angeles designed it.

"This is one of the best scientific museums in the world, on a par with or even surpassing the great places in the U.S. like the renowned Franklin Institute Science Museum in Philadelphia," said Henry Levine, the American Consul General in Shanghai, who was among the visitors on the opening day.

The museum, for which ground was broken in 1998, is tailored to spur the curiosity of children, ensure pleasure and convenience for their parents, and match the expectations of the business community.

Apart from its entertainment and educational aspects, the museum will be used as a venue for news conferences, business gatherings and social events.

The museum is now open six days a week (closed Mondays) from 9 a.m. to 5 p.m., but officials are considering longer hours on weekends after the initial trial period. The facility is located at No. 2000 Century Boulevard in Pudong, near the Yanggao Road station on Metro Line 2.

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