30 March 2020

China regulatory and legal round-up | March 30, 2020

General Corporate and Foreign Investment

SAMR issues its 2020 legislative plan

On March 26, 2020, the State Administration of Market Regulation (“SAMR”) issued the Notice on Printing and Distributing the 2020 Legislation Work Plan (《市场监管总局关于印发2020年立法工作计划的通知》). The plan states that SAMR will participate in the formulation or amendment of the following laws and administrative regulations: (i) Anti-Monopoly Law; (ii) Product Quality Law; (iii) Regulations on Commercial Registration, (iv) Regulations on the Administration for Market Supervision; (v) Regulations on Certification and Accreditation; (vi) Implementing Regulations of the Drug Administration Law; and (vii) Detailed Rules of the Implementation of Patent Law. SAMR also plans to formulate or amend 48 department rules this year, including the Provisional Measures on the Declaration of Concentration of Business Operators, Measures on the Supervision and Administration of Online Transactions, Measures on the Supervision and Inspection of Food Manufacturing and Operations, and Rules on the Administration of Drug Registration.

Revision of the Catalogue of Industries Encouraging Foreign Investment

On March 19, 2020, the National Development and Reform Commission (“NDRC”) and the Ministry of Commerce (“MOFCOM”) announced that they would further amend the Catalogue of Industries Encouraging Foreign Investment previously issued on July 30, 2019. The amendment aims to expand the scope of encouraged industrial sectors, promote development of manufacturing industries, and facilitate the transfer of industrial capabilities to the central, west, and northeast regions of China. NDRC and MOFCOM have welcomed public comments, which can be submitted through the authorities’ official websites http://www.ndrc.gov.cn and http://www.mofcom.gov.cn by April 18, 2020.

Revision of the Measures for Work Related to Complaints of Foreign Invested Enterprises

On March 23, 2020, MOFCOM published a draft Measures for Work Related to Complaints of Foreign Invested Enterprises (“Measures”) soliciting public comments. The Measures, upon its official promulgation, will implement Article 26 of the Foreign Investment Law, which requires the State to establish a system to timely address the concerns of foreign-invested enterprises and their investors. The Measures will replace the existing measures issued by MOFCOM in 2006 under the previous foreign investment legal framework. The public consultation process will be open until April 22, 2020 and comments can be submitted via email ([email protected]), fax (010-65197839), or letter (to MOFCOM’s official address).

CSRC implements a large-scale revision of the Securities Law Rules

On March 20, 2020, to implement the new Securities Law, the China Securities Regulatory Commission (“CSRC”) issued the Decision on Amending Certain Securities and Futures Regulations (《关于修改部分证券期货规章的决定》) and the Decision on Amending Certain Normative Documents of Securities and Futures (《关于修改部分证券期货规范性文件的决定》), which amend 13 regulations and 29 normative documents. The revisions mainly focus on:

  • improving the merger and reorganization system of listed companies and enhancing the information disclosure requirements in connection with listed companies’ changes in shareholding structures;
  • improving the stock exchange management system;
  • reducing the administrative license requirements; and
  • strengthening the supervision and law enforcement of listed companies.

Labor

Local governments recently issued numerous rules and policies to help enterprises, including foreign-invested enterprises, recover from the COVID-19 epidemic. Foreign investors and foreign-invested enterprises should pay attention to the requirements and deadlines of these new local rules and policies to take advantage of the assistance.

Notice on Measures of Stabilizing Employment Relationship of Employees Stranded in Hubei

On March 11, 2020, the Beijing Municipal Human Resources and Social Security Bureau issued the Notice on Measures for Stabilizing Employment Relationship of Employees Who Have Been Stranded in Hubei and Unable to Return to Beijing (关于稳定滞留湖北未返京人员劳动关系有关措施的通知). The Notice prohibits employers from unilaterally terminating employees stranded in Hubei who are unable to return to Beijing due to the lockdown (“Stranded Employees”). Employers facing COVID-19 related economic hardship may negotiate with the Stranded Employees to adjust their salaries. Employers must pay Stranded Employees their normal salary if the employees are able to work remotely or if they can take paid leave. For Stranded Employees who cannot work remotely, the employer must pay them a minimum salary of no less than twice the basic living expenses in Beijing – RMB 3080 per month – from March 2020 and until Stranded Employees can return to Beijing. In addition, employers who pay basic pension insurance in Beijing for Stranded Employees will receive subsidies from the Beijing government, calculated at RMB 1540 per month for each Stranded Employee, from March 2020 until Stranded Employees are permitted to return to Beijing.

Notice on Granting Employment Subsidies to Relevant Enterprises in Response to the Outbreak and Stabilizing Employment

On March 11, 2020, the Shanghai Municipal Human Resources and Social Security Bureau issued the Notice on Granting Employment Subsidies to Relevant Enterprises in Response to the Outbreak and Stabilizing Employment (关于给予本市相关企业就业补贴应对疫情影响稳定就业岗位的通知). Pursuant to the Notice, companies involved in COVID-19 outbreak prevention and control during the Spring Festival will be entitled to a one-time subsidy of RMB 1,500 per employee, up to RMB 50,000.  Companies facing COVID-19 related economic difficulties that meet certain criteria are entitled to an employment stabilization subsidy of RMB 800 per employee, up to RMB 50,000.  Companies are entitled to both subsidies if they meet both sets of requirements.


Data Protection

TC260 Publishes Guide to Self-Assessment of Collection and Use of Personal Information by Apps

On March 19, 2020, the National Information Security Standardization Technical Committee (“TC260”) published the Practical Guide to Cybersecurity Standards—Guide to the Self-Assessment of Collection and Use of Personal Information by Apps (《网络安全标准实践指南—移动互联网应用程序(App)收集使用个人信息自评估指南(征求意见稿)》) (“Guide”) for public consultation. The Guide summarizes six major evaluation points and 28 subitems of Apps’ collection and use of personal information along with practical criteria.  The Guide covers key issues in App-specific government activities including SDK information disclosure, targeted push, and users’ rights of logout. Enterprises that develop and operate Apps in the Chinese market should refer to the Guide in order to improve the protection of personal information. The public consultation period will run until April 2, 2020, with comments accepted by email ([email protected]) or phone (Mr. Chenwei Zhou, at +86 10 64102743 or +86 13717543029).



Should you need any additional information, or if you would like to discuss how recent updates in Chinese law may affect your business, please feel free to contact us.

Disclaimer

This client alert is not intended to be legal advice. Readers should seek specific legal advice from KWM legal professionals before acting on the information contained in this alert.

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