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Updates
November 01, 2008

China Law Update - November 2008

The November 2008 issue of China Law Update examines four sets of rules and regulations that are of particular interest to foreign companies and foreign investors in China. All were enacted in September 2008.

First (page 4), we look at the Circular on Delegating the Power of Approving Foreign-Invested Commercial Enterprises, an effort by the Ministry of Commerce to ease the approval process for foreign-invested commercial enterprises doing business in China. This circular updates the Measures for Foreign Investment in Commerce, which was enacted by China's Ministry of Commerce in April 2004.

Our second summary (page 5) looks at the Regulations on the Administration of Foreign-Invested Advertising Enterprises, which opens China's advertising market to foreign investors. These rules reflect a change of policy signaled in the 2007 Catalogue for the Guidance of Foreign-Invested Industries, which was released by China's National Development and Reform Commission in the fall of 2007 and grouped industries into a variety of categories, such as "restricted," "prohibited" and "encouraged."

China's State Council also issued the amended Regulations on the Administration of Foreign-Invested Telecommunications Enterprises, updating a law that has been in effect since January 1, 2002. Our summary of those regulations, which lower barriers to foreign investment in China's telecommunications industry, starts on page 7.

And finally, we summarize (page 9) the long-waited Implementing Regulations of the PRC Labor Contract Law, which are of great importance to all employers in China, including foreign-invested enterprises. These regulations address many of the uncertainties embodied in China's Labor Contract Law, which took effect on January 1, 2008 (China Law Update, September 2007). While these regulations are substantially similar to the ones released by the Chinese government in draft form last spring (China Law Update, June 2008), they are of sufficient importance to warrant a more-detailed-than-usual summary.

The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.