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Focus on Regulation

Tag Archives: China

Department of Defense Lists Chinese Companies, with Chinese Military Ties, Operating in the United States

On 24 June 2020, the United States Department of Defense made public a list of Chinese companies operating in the U.S. that are associated with the Chinese military. The Department of Defense has been legally required to maintain such a list under Section 1237 of the 1999 National Defense Authorization Act. The Act requires the

Next steps towards tighter German Foreign Investment Control rules passed

For M&A transactions in Germany and beyond, Foreign Investment Control screenings have become an indispensable standard element to assess when structuring deals and planning for regulatory review. Similarly to merger control, acquirers and sellers need to consider the impact of the increasing number of jurisdictions that might want to review their proposed transaction. In the

BIS Expands Foreign-Produced Direct Product Rule With Regard to Huawei

The Commerce Department’s Bureau of Industry and Security has announced an Interim Final Rule amending the Export Administration Regulation’s General Prohibition Three, the foreign-produced direct product rule. According to the accompanying press release, the rule change makes the following foreign-produced items subject to the EAR: Items, such as semiconductor designs, when produced by Huawei and

Bill Introduced to Block Chinese Acquisitions During COVID-19 Pandemic

Representative Jim Banks introduced a bill on 5 May 2020 to “place temporary restrictions on acquisitions [of U.S. companies] by the People’s Republic of China. . .” during the COVID-19 pandemic. The bill would mandate, with certain exceptions, that the Committee on Foreign Investment in the United States (CFIUS) review, and the President deny, certain

BIS publishes rules regarding CIV and APR license exceptions and military end use and military end user controls for China, Russia and Venezuela

Three important regulatory developments were published yesterday in the Federal Register by the Commerce Department’s Bureau of Industry and Security: A Final Rule eliminating the Civil End Users (CIV) license exception. The Final Rule goes into effect 29 June 2020. A Final Rule expanding license requirements for exports, reexports and in-country transfer for military end

Industrial policy strikes again: Germany announces further tightening of Foreign Investment Control rules

For M&A transactions in Germany and beyond, Foreign Investment Control screenings have become an indispensable standard element to assess when structuring deals and planning for regulatory review. Similarly to merger control, acquirers and sellers need to consider the impact of the increasing number of jurisdictions that might want to review their proposed transaction. In the

National Security Commission on AI issues interim report

The National Security Commission on Artificial Intelligence (the “Commission”), established by the John S. McCain National Defense Authorization Act for Fiscal Year 2019, issued an interim report providing the Commission’s preliminary assessment of foreign threats to U.S. national security in the current AI era; how AI can improve the government’s ability to defend the U.S.,

A New European Deal?

German Minister of Economics suggests revising EU and German merger control regulations to enable the creation of European champions – and keeps FDI options on the table to prevent acquisitions by non-European players

China antitrust authority consults on agreements rules

On 3 January 2019, the State Administration for Market Regulation (SAMR) released a draft of the Regulation on the Prohibition of Monopoly Agreement Conduct (Draft) on its website, inviting comments from interested stakeholders. The consultation period ends on 3 February. The Draft is the first significant normative output in the Anti-Monopoly Law (AML) field after

FDA to Rely on Drug Inspections Performed by Certain European Regulatory Authorities Beginning November 1, 2017

Earlier today, FDA announced that it has determined that the regulatory authorities of Austria, Croatia, France, Italy, Malta, Spain, Sweden, and the United Kingdom are “capable of conducting inspections of [pharmaceutical] manufacturing facilities that meet FDA requirements,” and that the Agency will begin relying “on the inspectional data obtained by these eight regulatory agencies” immediately. 

The life sciences industry under the antitrust spotlight in China: two practical points

The simple fact is that the Chinese antitrust regulators are determined to up their enforcement activities in the life sciences industry. Almost immediately after drug pricing was liberalised in 2015, an antitrust enforcement decision was announced against a government entity, a local health commission, for breaching a number of provisions in the Anti-Monopoly Law (AML).

Chinese walls? Germany reinforces the control of foreign investments

On 12 July 2017, the German Federal Government significantly reinforced the barriers for the acquisition of German companies by non-EU companies. The new Regulation for the Amendment of the Foreign Trade and Payments Regulation (“AWV”) will impose new reporting obligations for M&A transactions. There are now concerns about the openness of Germany to foreign investment and the additional burden that the new rules will impose on companies.

Real-name registration requirement imposed for civilian-use drones in China

Following serious incidents of civilian drones entering the airspace of Chinese airports and causing flight delays last April, China’s civil aviation authority has issued the Real-name Registration of Civil Unmanned Aircraft Administrative Provisions, with effect from May 16, 2017, in an effort to increase accountability for drone use by requiring owners and manufacturers of civilian-use unmanned aircraft systems to complete “real-name” registration procedures.

U.S. FDA and EU Regulators Announce Enhanced Mutual Recognition for Pharmaceutical Manufacturing Inspections; Allows FDA to Continue Shifting Inspections and Enforcement Focus to Asia

In an effort to avoid the duplication of drug inspections, lower inspection costs, and enable regulators to devote more resources to other parts of the world where there may be greater risk, the U.S. Food and Drug Administration (FDA) and the European Union (EU) today announced that they have enhanced their agreement on mutual recognition

CFIUS Filings Jump By 50%

In 2014, the Committee on Foreign Investment in the United States, a U.S. Government interagency committee that conducts national security reviews of foreign investments, reviewed nearly 50% more transactions than it did in 2013, according to CFIUS’s recently published annual report to Congress. The dramatic increase likely reflects a combination of factors, including an increase in cross-border M&A activity, transactions involving sensitive industries or acquirers, and parties continuing to make filings with CFIUS across a broad range of industries.

India’s New BIT and Arbitration Law Send Mixed Signals to Foreign Investors

On December 28, 2015, the Government of India released the text for its revised model Bilateral Investment Treaty (BIT). In this release, the Government of India also announced that the Department of Economic Affairs will be leading all negotiations on BITs and investment chapters of trade agreements to ensure continuity between trade and investment issues.

New Requirements for Exports of Civil Nuclear Technology – Exports to China and Russia Affected Immediately

President Barack Obama recently signed legislation that imposes multiple new requirements relating to the regulation of exports of civil nuclear technology. Under the new law, the U.S. Secretary of Energy must make a number of changes to the Department of Energy’s nuclear export control regulations and approval process contained in 10 C.F.R. Part 810. The new law has had an immediate impact on the transfer of U.S. civil nuclear technology to China and Russia. Until the DOE has resolved how it will comply with these new requirements, it is unlikely the DOE will issue any specific authorizations for transfers of U.S. civil nuclear technology to China and Russia.

China proposes new cyber security rules for insurance industry

On 9 October 2015, the China Insurance Regulatory Commission (“CIRC“) issued draft Supervisory Rules for Adoption of Information Technology by Insurance Institutions (“Draft Insurance IT Rules“) for public comment. The public comment period will close on 31 October 2015. The Draft Insurance IT Rules have been issued to replace the 2009 (Pilot) Guidance on Administration

E-commerce liberalization in China: State Council and MIIT push forward

China’s regulatory framework for foreign investment in the e-commerce industry has undergone significant liberalization. Previous pilot programs on a local level have been extended nationwide, with directives from the highest political level to remove restrictions. On 19 June 2015, the Ministry of Industry and Information Technology issued a notice to lift foreign ownership restrictions in

Lunch seminar: Antitrust as a tool to limit intellectual property rights?

On 13 April 2015, the State Administration for Industry and Commerce (SAIC) – one of the three antitrust authorities in China – published the long-awaited regulation on how China’s Anti-Monopoly Law (AML) applies to the exercise of intellectual property rights (IPRs). In this one-hour lunch seminar, our Beijing office partner Adrian Emch will address these

CFIUS Annual Report — Review Process Appears Increasingly Stringent

The recently published annual report to Congress by the Committee on Foreign Investment in the United States (CFIUS), a U.S. government interagency committee that conducts national security reviews of transactions that could result in control of a U.S. business by a foreign person, suggests that the committee’s reviews are becoming increasingly stringent. Read More: CFIUS

China’s new VAT regulations may significantly increase charges on China exports

China’s new regulation on value-added tax (VAT), which went into effect on 1 August 2013, may increase charges on exports originating from China by up to 6 per cent. Circular No. 37 of 2013, jointly issued by China’s Ministry of Finance (MOF) and State Administration of Taxation (SAT), provides for the replacement of business tax