Notes on the 2013 Amendments to China’s Company Law

Although we now normally refer to China’s national corporations law as the 2005 (or 2006 by the year of effectiveness) Company Law, it is actually the 2013 version since a range of significant amendments were made by the NPC, China’s national lawmaking body, to the Company Law. These amendments reduced the minimum registered capital to…

VIE: An Otherwise Unnecessary Legal Innovation to Connect Chinese Companies to the World

Alexandra Stevenson’s “VIE: an acronym every investor in Chinese companies should know about” on FT.com offers a simple but clear introduction about the variable interest entity (VIE) structure which has been adopted by a number of China’s tech giants, including Alibaba, whose IPO in 2015 “shows foreign investors able to skirt risks“. “Created to circumvent ownership…

China’s 2017 Foreign Investment Catalogue: Liberalization, Control, and both

On 28 June 2017, China’s Ministry of Commerce released the long-expected Foreign Investment Industrial Guidance Catalogue (Amended in 2017) [《外商投资产业指导目录(2017年修订)》], which is the seventh revision of the catalogue, a positive list of economic sectors in which foreign investors are allowed to invest, with various degrees of restrictions and incentives.  Below are a few online discussions…

China renews its commitment to liberalization and openness, again?

The SCMP reports on  17 August 2017 that “China orders ministries to open up more of economy to foreign investors“, based on the 《国务院关于促进外资增长若干措施的通知》(the “2017 FDI Circular”, hereafter) released by the State Council, which is the official name of China’s Central Government.  The Circular offers 22 measures aiming to attract more foreign investment to China…

Mixed Ownership: Alibaba and Tencent among investors in China Unicom

        An FT report, Alibaba and Tencent among investors in China Unicom from the Financial Times, suggests that “China’s biggest technology companies, including Alibaba, Tencent and Baidu, are investing $11.7bn in China Unicom, the country’s second-largest wireless telecom, as they seek to revitalise the state-owned group with private capital.” In total,    …

FT: CCP and Corporate Charter

Two recent reports from the Financial Times descripe how the CCP, China’s ruling party, seeks direct control in state-owned enterprises: China’s Communist Party writs itself into company law, 14 August 2017, at https://www.ft.com/content/a4b28218-80db-11e7-94e2-c5b903247afd China’s Communist Party seeks company control before reform, 15 Auugst 2017, at https://www.ft.com/content/31407684-8101-11e7-a4ce-15b2513cb3ff On how the CCP currently plays a role in the coprorate…