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Notice On Commencing the Use of The "Foreign-Invested Partnership Business Licence" And "Foreign-Invested Partnership's Branch Business Licence"

To administrations of industry and commerce and market supervision administrations in all provinces, autonomous regions, municipalities and separately planned cities as well as sub-provincial cities:

The "Measures On Administering The Establishment Of Partnerships In China By Foreign Enterprises Or Individuals" (the Measures) issued by the State Council will come into force on 1 March 2010. For the purpose of fully implementing the Measures, the State Administration for Industry and Commerce has consulted the "Partnership Law", "Measures on Administering the Partnership Registration", Measures and "Provisions on the Administration of the Foreign-Invested Partnership Registration" to formulate the "Foreign-Invested Partnership Business Licence" (the Licence) and "Foreign-Invested Partnership's Branch Business Licence" (the Branch Business Licence), which are in use on and after 1 March 2010. The relevant issues are hereby announced as follows:

I. Design of the Business Licence and Branch Business Licence

(1) The Business Licence and Branch Business Licence are issued in duplicate. The original is to be hung with the size of 420mm¡Á297mm. The copy is foldable with the size of 210mm¡Á297mm. The copies of the both Licences are carried by deep greed folder.

(2) The original of the Business Licence contains the national emblem of the People's Republic of China, name of the Licence, registration details, expression of "Printed by State Administration for Industry and Commerce of the People's Republic of China" and security logos. The copy of the Business Licence as well as the original and copy of the Branch Business Licence does not contain the national emblem but the rest of the contents is same as those on the original of the Business Licence.

II. Contents of the Business Licence and Branch Business Licence

(1) The original and copy of the Business Licence indicate the term, "Foreign-Invested Partnership Business Licence" as well as the registration details: registration number, name, principal business venue, executive partner(s), scope of business, partners, term of the partnership, incorporation date, registry, issue date (dd/mm/yyyy) and notes.

(2) The original and copy of the Branch Business Licence indicate the term, "Foreign-Invested Partnership's Branch Business Licence" as well as the registration details: registration number, name, business venue, head officer, scope of business, incorporation date, registry, issue date (dd/mm/yyyy) and notes.

(3) The originals and copies of the Business Licence and Branch Business Licence indicate the expression of "Printed by State Administration for Industry and Commerce of the People's Republic of China".

III. Format and Printing

(1) The formats of the Business Licence and Branch Business Licence shall be determined and announced by State Administration for Industry and Commerce.

(2) The Business Licence and Branch Business Licence shall be printed by the State Administration for Industry and Commerce.

State Administration for Industry and Commerce

12 February 2010
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China Law 0 Comment March 18, 2010, 5:59 pm

Current Trends in Technology and Manufacturing

On Wednesday, March 17, AmCham China Offices, Beijing, in conjunction with AmCham-China¡¯s Manufacturing and Sourcing Forum and IT Forum, will be hosting a seminar on the current trends in technology and manufacturing. The keynote speaker will be Dr. Pat Gelsinger, president and COO of Infrastructure Products at EMC, a market leader in information management. As the current head for EMC's Infrastructure and Products Group, Dr. Gelsinger is a leader in both technology and business innovation. Topics to be discussed include: discuss cloud computing, the role of innovation and technology in the manufacturing sector in China and in Asia as a whole.

For any information regarding the technology or manufacturing sectors in China, please contact Lehman, Lee & Xu at mail@lehmanlaw.com or visit the firms website at www.lehmanlaw.com.
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China Law 1 Comment March 12, 2010, 3:17 pm

A Golden Opportunity

With it¡¯s rich natural resource deposits and close proximity to both China and Russia, It comes as a surprise that Mongolia has not been tapped for its resources during the recent worldwide mining boom. But this impoverished, agrarian country entirely missed out on the recent boom, hindered by its own overzealous legal restrictions and a government hungry for large shares of mining profits.

Recently, Mongolia has received a lot of international attention. This is, in part, a direct result of Parliament¡¯s decision to revoke four 2006 mining laws and shift their attention to seeking foreign investment. The important laws that have been revoked include a ¡°windfall tax¡± which extracted a 68% tax on all gold and copper sales. Another revoked law gave Parliament a 34% stake in non-government financed projects and a 50% stake in government financed projects.

After Parliament¡¯s change of heart, the ¡°windfall tax¡± is thrown out and the regime takes a flat 34% stake in all mines.

The looser restrictions have encouraged and allowed companies like Ivanhoe Mines and Rio Tinto to invest and develop the $3 billion Oyu Tolgoi, the Holy Grail of gold and copper mines. The Oyu Tolgoi, located in the Gobi Desert just north of China, is one of the world¡¯s biggest and untapped gold and copper mines.

Oyu Tolgoi would be Mongolia¡¯s first major mining project- and what a doozy it would be! With production slated to begin in 2013, the mine is estimated to produce 450,000 tons of copper and 330,000 ounces of gold annually for the next 45 years. That is roughly 3% of the current world¡¯s supply.

¡°That could almost double the country¡¯s GDP, which is roughly $5 billion today¡± says Edward Lehman, Managing Partner at Lehman, Lee & Xu, Mongolia¡¯s first and only international law firm.

¡°There is a lot of opportunity here. Mongolia is playing a larger part in the global economy by the day.¡± he said in a press conference.

One of the largest beneficiaries of the increase in mining could potentially be China. Mongolia is rich in coking coal, unlike China, who typically imports large amounts from a distant Australia. According to the World Bank, Mongolian coal exports could reach 45 million tons, which would be an increase from 5 million tons currently.

¡°We are first movers here. We know the local companies and key decision makers here better than anyone.¡± Edward Lehman stated.

¡°At Lehman, Lee & Xu we are in the business of providing the best service possible for our clients. By establishing an office in Mongolia, we felt we put ourselves in a position to achieve that goal and we are extremely excited about the prospects¡± he added.

For more information about Lehman, Lee & Xu, please visit the firm¡¯s website at www.lehmanlaw.com or feel free to email the Beijing office at mail@lehmanlaw.com.
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China Law 0 Comment March 11, 2010, 4:49 pm

Managing the Increasing Price of Chinese Real Estate

Taking a lesson from the collapse of the American real estate market that overwhelmingly contributed to the current global financial crisis, the Chinese government has had the difficult task of reigning in easy credit without stifling the market. The soaring price of housing coupled with the plunging sales of new homes has created anxiety that credit must be tightened further if the property bubble does not being to show signs of substantial shrinkage. Although the Lunar New Year holiday is always a slack time for the economy, real estate transactions involving the sale of new homes were unusually slow, with Shanghai reporting the lowest volume of sold square meters in 5 years. Unyielding prices, low supply, and uncertainties about whether the government will continue to implement policies to cool down the overheated real estate market, have contributed to the current buyer freeze.

This is a topic of hot debate in the current joint session of the legislature, with many suggesting a change in the land-auction system so that price isn't the only determining factor. Also being discussed are ways to reduce local governments' excessive reliance on revenue from land transfers. More than 1.08 trillion yuan (US$158 billion) was collected from land transfers in 70 major Chinese cities last year, an increase of 140 percent from 2008, according to China Index Academy, a major real estate research organization.

The high prices, especially in inner city districts, have been maintained due to short supply. Many real estate developers are more reluctant to put their homes on the market when few people are actually buying. New home supply in Shanghai, for example, plunged 70% to 220,000 square meters last month, following a dive of 47% in January.

The lower volumes, however, were accompanied by the highest average prices on record. Last month, the average price of existing properties rose 11 percent from January to 15,200 yuan per square meter, the first time prices have climbed above the 15,000 yuan mark.

¡°The repercussions of an inflated real estate market have been a painful lesson to the world,¡± Scott Garner, director of the Lehman, Lee, and Xu Shanghai office commented. ¡°Fortunately, our firm has substantial real estate experience regarding preparation of all types of acquisition and transfer of property land use and lease rights documentation, advising services to landlords, tenants, and real estate brokerage companies, as well as well as a multi-city base where we closely monitor all fluctuations in the Chinese market. We have the ability to custom tailor our services to both foreign and domestic clients.¡±

For more information about Lehman, Lee & Xu, please visit the firm's website at www.lehmanlaw.com or feel free to e-mail the Beijing office at mail@lehmanlaw.com


By: Morgan Crank
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China Law 0 Comment March 11, 2010, 3:56 pm

China¡¯s Export Surge

China experienced a nearly 50% increase in exports for February, reaching $94.5 billion US dollars. China's exports surged more than expected in February as imports continued strong growth, indicative of a robust domestic economy and signs of recovery from the global financial crisis. Domestic demand will remain robust in the near future, enabling imports to retain the fast expansion China has seen since the end of last year. China's exports jumped 45.7% in February from a year earlier to US$94.5 billion, sharply up from 21 percent in January.

Trade surplus narrowed to US$7.6 billion last month from $14.1 billion (US) in January and $18.4 billion (US) in December. China's waning trade surplus is mainly due to more trade with emerging markets and new markets. For example, China's trade Brazil climbed 88.5% from a year earlier, the fastest among all of its trading partners. Despite the declining trade surplus, the nation will face more calls for appreciation of the yuan.

The revival of Chinese exports simultaneously escalated trade disputes. Its traditional trading partners, like the European Union and the United States, continue to demand a stronger yuan. However, any rise in the yuan's exchange rate would assuredly be gradual and controlled. The US has announced a slew of rulings against imports from China. In the past three months, the US has decided to levy tariffs on Chinese-made potassium phosphate salts, coated paper, steel tubes, gift-wrapping ribbons, electric blankets and wire deckings. China was targeted in 116 anti-dumping and anti-subsidy cases last year, with more than US$12 billion involved.

Edward Lehman, Senior attorney of Lehman, Lee, and Xu Law Firm stated, ¡°Many of our international trade and marketing clients request our expert advice concerning barter trade, product buyback, clearing account trade, compensation trade, counter-purchase and export import licenses, Certificates of Origin, and commodities inspection. The highly trained Lehman, Lee & Xu team of international practice attorneys has extensive experience in the complex import and export laws, including customs, and in assisting clients with their processing and assembly arrangements in China. We encourage our clients to consult with us, whether they are domestic or international businesses, small or large, at any one of our many offices throughout China.¡±

For more information about Lehman, Lee & Xu, please visit the firm's website at www.lehmanlaw.com or feel free to e-mail the Beijing office at mail@lehmanlaw.com



By: Morgan Crank
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China Law 0 Comment March 11, 2010, 3:27 pm

Plan to Subsidies Electronic Cars

Alexander Pan, March 9, 2010
Beijing, China

In a move to help alleviate the ever worsening air quality in Beijing, Miao Wei, vice-minister of Industry and Information Technology and deputy to the National People's Congress announced recently that the government plans to unveil a plan to subsidize the private purchases of electronic motor cars.

Experts speculate that the plan with offer between a 50,000-60,000 RMB Government subsidy for Beijing resident who purchase environmentally friendly, and emission free electronic cars.

The official plan will likely be revealed later this month. It is also likely the up to five cities will be chosen as pilot programs, depending on the programs success in these areas, Chinese citizens may expect to see these subsidies at a nation wide level.

Edward Lehman, Managing director of Lehman, Lee, and Xu said that ¡±This plan is yet another step in the right direction for China¡¯s environment. The Chinese government has repeatedly stated that it will take steps to reduce its environmental impact, and programs like this prove that China is committed to the cause.¡±
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China Law 0 Comment March 9, 2010, 11:30 am

Government Officials Attempt to Deflate the Housing Bubble Before it Bursts

Alexander Pan, March 9, 2010
Beijing, China.

Beijing¡¯s Exorbitant, and rapidly increasing housing prices have come under fire from many senior government officials at the national legislative meeting. The officials are demanding that housing prices be contained fearing that any further increases could lead to a bursting of the housing bubble, and consequently a massive economic downturn similar to America¡¯s recent housing bust.

Du Deyin, a senior Beijing official and head of the Beijing's local legislative body implicated in a bold speech that Beijing¡¯s land resources and construction authorities were not doing their jobs.

Many experts on Beijing¡¯s housing market claim that for year Beijing¡¯s housing prices have been manipulated and pumped up through collaborations between real estate dealers and government officials. They claim that officials award lucrative land deals to major real estate developers in return for a hefty tax paid back to the government.

Du Deyin explicitly condemned this practice saying Instead of encouraging real estate dealers to snap up lucrative land deals, authorities should control land prices and offer special funds to house buyers."

The central governments work report charged local authorities with curbing this excessive growth of home prices in major cities and satisfy the publics basic need for housing.

These demands to curb housing prices come as overwhelming signs of a housing bubble begin to emerge. In Beijing, the average housing prices in popular residential areas increased from approximately 15,000 yuan per sq m to 20,000 yuan per sq m in 2009. Preliminary reports said the capital's property market saw a total increase of 23.5 percent last year, the major reason seemed to be government's failure to provide enough land resources for low-cost housing.

Government Officials are not only worried about the possible collapse of this potential bubble, but also recognize that the rapidly increase price of housing has made it extremely difficult for low income families to secure housing in major cities. This could potentially balloon in a major point of civil unrest.

Some actions have already been taken by government officials including a new plan that will allocate fifty percent of new land for construction to low cost apartments for the mass middle income earners. Also more than 134,000 subsidized apartments will be built to meet the needs of low income residents.

Edward Lehman, Managing Director of Lehman, Lee and Xu said that ¡° The Central Government should be applauded for recognizing the signs of a housing bubble and taking the appropriate precautions to deflate this bubble before it bursts. The government¡¯s actions to ensure housing for the lower and middle classes are also commendable. We at Lehman Lee and Xu have a great deal of experience in dealing with these types of market fluctuations and look forward to helping our clients deal with and take advantage of the current market condition.¡±

The LEHMAN, LEE & XU Real Estate team is comprised of both Chinese and foreign lawyers with many years of experience in all types of real estate transactions. This diversity of experience and foreign expertise enables LEHMAN, LEE & XU to provide creative, accurate and economical legal services to its clients.

With China's rapidly expanding economy there is an increased need for residential housing, commercial space and industrial parks that are structured to meet the unique requirements of the Chinese population. With the experience and background of various lawyers in our Real Estate group, we can provide the expert advice needed by real estate developers to formulate and complete innovative real estate projects in all parts of the country.

As LEHMAN, LEE & XU is also one of the oldest registered law firms in China, we take pride in the fact that we can provide real estate legal services to both Chinese and foreign clients. This fact is extremely important in dealing with real estate matters in China as it gives LEHMAN, LEE & XU the ability to finalize real estate transactions quickly and efficiently.

For more information please visit www.lehmanlaw.com....

China Law 0 Comment March 9, 2010, 11:25 am

China Prioritizes Economic Growth over Environmental Conservation

Alexander Pan, March 2, 2010
Beijing, China


China sent a clear message to the world community last week that it will not put a fixed cap on its green house gas emissions. Indicating that while China will do what it can to significantly reduce its environmental impact, it will continue to prioritize economic growth over environmental conservation.

China top climate change negotiator at the climate change talks in Copenhagen Su Wei, said that China ¡°could not and should not¡± place an upper limit on its green house gas emissions. But rather should focus on reducing its green house gas emissions per unit of GDP in order to become a more environmentally efficient economy.

Experts claim that a fixed cap on green house gas emissions is unrealistic and unfair for China claiming that China is still a developing economy and it not yet fully industrialized thus it needs to look after the welfare of its people and the eradication of poverty before it can consider limiting economic growth in favor of environmental conservation.

This claim is consistent with historical evidence and an economic theory know as the ¡°Environmental Kuznets Crve¡± in which countries, as they begin to industrialize, do so with little to no regard for the environment; however, as these countries reach a certain point of development they begin to place a greater importance on minimizing their environmental impact.

While China may not be willing to cap greenhouse gas emissions, it appears that China is rapidly approaching, if not already past the apex of this environmental kuznets curve and will imminently begin growing more environmentally conscious.

Major indications such as China¡¯s new five year plan promises that China will make major strides in improving the environmental efficiency of its economy

While many developed nations would rather see a fixed cap put in place, many developing nations sympathize and agree with China¡¯s Green Growth strategy arguing that it is much easier for industrialized and developed nations to cap their emissions than it is for developing nations whose primary industry is int he emissions intensive manufacturing sector.

Edward Lehman managing director of Lehman, Lee and Xu said that£¢This is a perfect example of the west¡¯s lack of understanding for the problems and issues faced by the Chinese economy. While China clearly must work to become a ¡®greener¡¯ economy, it can not do so at the expense of economic growth. We here at Lehman Lee and Xu look forward to offering our experience and knowledge of Chinese economy to our clients, and helping them to navigate the myriad of new regulations that will undoubtedly accompany China¡¯green growth plan¡±

Lehman, Lee & Xu¡¯s Energy & Resources law practice is built on the firm¡¯s strength in the fields of project development and project financing, corporate, taxation and dispute resolution. Our strengths and experiences have resulted in a strong foundation for the representation of energy-related industries.
Our lawyers have extensive experience in handling the approval, development and financing of oil and gas related projects and independent power production facilities, with a particular focus on renewable energy sources, such as wind and solar power, hydro-electricity and biomass...

China Law 0 Comment March 2, 2010, 3:11 pm

China¡¯s Working Population in Flux

By Morgan Crank
March 2, 2010


China¡¯s rural population may decrease by over 50% over the next three decades due to rising urbanization, dropping to 400 million people from the current 900 million. A large portion of these people are migrant workers who are moving into cities, but are not permanent residents. In fact, one in four residents currently in cities come from the rural population. The demographics of these migrant workers show that they are young people reluctant to go back to the countryside, seeking to establish a more urban lifestyle.

With this influx of migrant workers comes valuable goods and services as well as a substantial increase the cities¡¯ tax bases. The matter of migrant workers receiving their duly deserved social benefits follows close behind. As the importance of migrant workers to city life is being felt more and more every day, the low wages the migrants receive makes them unwilling or unable to remain for prolonged periods of time. A major policy document released last month addressed the new generation of migrant workers making it clear that the government is striving to reform the household registration system in cities, enabling the workers to receive more social benefits. Reforms would bring enticing benefits in education, housing, as well as social security.

¡°The gravitation of people all throughout China to its prosperous urban areas attests to the nation¡¯s growing economic strength and windows of opportunity,¡± stated Scott Garner, director of Lehman, Lee, and Xu law firm¡¯s Shanghai office. ¡°We have experience assisting our clients in negotiating and drafting employment contracts, advise them on governmental health and safety requirements and employee benefits, and assist with employment-related dispute settlement.¡±

Lehman, Lee & Xu is one of the first five private law firms established in the People's Republic of China. After nearly twenty years of practice and development, Lehman, Lee & Xu now has more than two hundred patent, trademark and PRC-licensed attorneys working in numerous branch offices located in the most-developed cities in China. As one of the leading IP firms in China, Lehman, Lee & Xu provides high quality legal service to its clients and has been consistently rated among the top five IP law firms in China. Lehman, Lee & Xu is also a top-three commercial law firm, and has provided a variety of commercial legal services to hundreds of clients, many of them multinational corporations (MNCs) and Fortune 100 companies. The firm's diverse catalog of commercial services covers foreign direct investment (FDI), merger and acquisition (M&A), tax, employment and many other areas.

For more information about Lehman, Lee & Xu, please visit the firm's website at www.lehmanlaw.com
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China Law 0 Comment March 2, 2010, 11:44 am

Regulating Real Estate: Government Restriction on Foreign Investment

By Morgan Crank
March 2, 2010


Government policy resuming restrictions on local real estate purchases by foreigners is not expected to hurt premium property sales, many in the real estate market contend.

The government has chosen to reinstate its limitation on foreigners purchasing local real estate in China, after it had temporarily suspended the measure in the wake of the global financial crisis. Until last week, the government had suspended this in order to encourage foreign investment and strengthen the property market. Now, foreigners are able to buy only one apartment each in Beijing, and must prove one year¡¯s worth of study or work on the Chinese mainland as a precondition for purchase.

Alongside 11 other policies released by the municipal government, this move is intended to make housing more affordable and curtain price manipulation and speculation, widely regarded as root causes of the financial crisis in the American real estate market. Beijing is looking inward to encourage domestic demand rather than investment-led demand coming from foreigners.
The effect may be limited, however, due to the relatively low number of foreigners actually purchasing high-end real estate, comprising no more than 5% of the market in Beijing. In fact, foreigners mostly prefer to buy high-quality houses, and usually pay for them in one payment due to difficulties in acquiring loans on the Chinese mainland. Some luxury housing projects may be affected, for example by lowering their prices, but any extensive impact on the Beijing property market may be small.

¡°The world has seen the impact that the real estate market can have on the global economy,¡± Edward Lehman, senior attorney at Lehman, Lee, and Xu, stated. ¡°We specialize in Chinese real estate law and have the substantial knowledge necessary to assist our clients. Lehman, Lee, and Xu maintains up-to-date information on Chinese real estate law and can customize our services to fit the needs of our business clients. Since every area of China experiences variations in its real estate markets, we encourage our clients to visit any one of our offices throughout the nation so that we can specialize accordingly.¡±

Lehman, Lee & Xu is one of the first five private law firms established in the People's Republic of China. After nearly twenty years of practice and development, Lehman, Lee & Xu now has more than two hundred patent, trademark and PRC-licensed attorneys working in numerous branch offices located in the most-developed cities in China. As one of the leading IP firms in China, Lehman, Lee & Xu provides high quality legal service to its clients and has been consistently rated among the top five IP law firms in China. Lehman, Lee & Xu is also a top-three commercial law firm, and has provided a variety of commercial legal services to hundreds of clients, many of them multinational corporations (MNCs) and Fortune 100 companies. The firm's diverse catalog of commercial services covers foreign direct investment (FDI), merger and acquisition (M&A), tax, employment and many other areas.

For more information about Lehman, Lee & Xu, please visit the firm's website at www.lehmanlaw.com
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China Law 0 Comment March 2, 2010, 11:42 am

The Wi-Fi Debate

Global trend setting or introverted nationalism? This is the debate raging over the Chinese WAPI system, a substitute for Wi-Fi which is currently prohibited for use in Chinese cellular devices. Promoted by the government, the WAPI system is alleged to plug gaps in security and protect wireless internet users. This issue hit the spotlight as a result of consumer frustration over the government block on the iPhone¡¯s Wi-Fi function, debating whether China was interested in true industry development or whether it was a reaction against other countries¡¯ wireless standards.

Some argue that homegrown standards like WAPI are necessary for an industry¡¯s development, arguing that China should not have to use other countries¡¯ wireless internet standards forever. Wi-Fi was not blocked in order to promote WAPI, but because Wi-Fi did not sufficiently protect its users from problems such data loss and invasions of the network. Producing a fruitful industry is more important in the long-run, and the ministry is very supportive of the WAPI system.

Others argue China disabled Wi-Fi because of WAPI. In order to promote this so-called national innovation, China disabled Wi-Fi and sacrificed the interests of millions of cell phone users who can't freely and conveniently access the mobile Web, many taking the risk of buying a smuggled phone on the booming gray market, particularly the iPhone. Homegrown intellectual property rights may bring profits for the country but something is only a success if it is accepted by the customers and markets. Opponents of WAPI argue manufactures did not suffer by Wi-Fi being disabled because integrating the standards is cheap and easy because it only needs a software update. Rather, Chinese consumers did and have been unable to obtain legitimate wireless internet access.

WAPI was finally recognized by the International Organization for Standardization (ISO) last June. Soon after, the Ministry of Industry and Information Technology issued a notice to mobile phone manufacturers allowing them to enable Wi-Fi on handsets if they integrate the homegrown standard, arguing that WAPI is generally the same as Wi-Fi only with extra security protocols to resolve the existing security loopholes in Wi-Fi.

The booming grey market for iPhones is indicative of a demand for the high-technology that is necessary to keep up with modern, proactive Chinese people and businesses, as well as the rest of the world. In an era dominated by quick, convenient wireless technologies, many businesses may have concerns regarding their company¡¯s intellectual property rights. Scott Garner, Director of Lehman, Lee, and Xu Law Firm¡¯s Shanghai office, stated ¡°We are a leading firm in the protection of intellectual property rights in China and have worked with some of the largest businesses in the world to stop the counterfeiting of their products. We excel at maintaining up-to-date information in the dynamic world of Chinese intellectual property rights, and are prepared to tailor our services to fit any of our clients¡¯ needs.¡±

Lehman, Lee & Xu is one of the first five private law firms established in the People's Republic of China. After nearly twenty years of practice and development, Lehman, Lee & Xu now has more than two hundred patent, trademark and PRC-licensed attorneys working in numerous branch offices located in the most-developed cities in China. As one of the leading IP firms in China, Lehman, Lee & Xu provides high quality legal service to its clients and has been consistently rated among the top five IP law firms in China. Lehman, Lee & Xu is also a top-three commercial law firm, and has provided a variety of commercial legal services to hundreds of clients, many of them multinational corporations (MNCs) and Fortune 100 companies. The firm's diverse catalog of commercial services covers foreign direct investment (FDI), merger and acquisition (M&A), tax, employment and many other areas.

For more information about Lehman, Lee & Xu, please visit the firm's website at www.lehmanlaw.com



By Morgan Crank
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China Law 0 Comment February 25, 2010, 2:33 pm

China¡¯s Elite Kindergartens

Alexander Pan, February 25, 2010
Beijing, China

Competition for a spot in one of China¡¯s most prestigious universities has always been fierce. However, with the emergence of elite private elementary schools and kindergartens, Chinese children are becoming indoctrinated in this spirit of academic competition from day one.

The intense competition for admission to the nation¡¯s elite universities has created an influx in demand for top tier education all the way down the academic line. To meet this demand for high-end early education, many elite private kindergartens have emerged in China. While these institutions claim to offer a superior education and undoubtedly open up many opportunities for further education, their services do not come cheaply.

One such institution that offers a top of the line education to young students ages one and half to twelve years old, the International Montessori School of Beijing, charges a tuition of between 80,000 to 150,000 RMB. This price tag makes the school nearly as expensive as many American Universities.

While this price tag may seem absurd to many, it does not seem to deter the many parents who are more than willing to pay any price for their children¡¯s future and what they believe to be a superior quality education.

The International Montessori School of Beijing, as well as many of its competitors utilize what is called the Montessori method of education in which students are encouraged study and explore their own individual interests rather than learning through a pre prescribed curriculum. This style of education requires intensive training for its teachers and requires a much higher faculty to student ration than most other styles of education and is thus much more cost intensive.

Parents of perspective young students now must exercise caution when applying for these schools. Many institutions have caught on to the rising demand for these style schools and now claim to offer a ¡°Montessori¡± style education and charge similar prices while the quality of the education is by far inferior to a true Montessori style education.

Scott Garner the director of Lehman£¬ Lee, and Xu¡¯s Shanghai office commented that ¡°The growing popularity of these types of schools that focus on creativity and free thinking, rather than on rote memorization as is so common in many other schools, demonstrates an important trend in the Chinese psyche. The Chinese people are no longer happy with being the factory of the world. They now have a clear ambition to become world leaders in ingenuity and to develop a powerful creative economy that deals in ideas, rather than raw materials and products. The world should pay close attention to this trend because if a thriving creative economy can be established, China will have no trouble in eclipsing the United States as the world¡¯s most powerful economy. We at Lehman, Lee and Xu look forward to assisting the Chinese people in their efforts to establish this creative economy and are excited to be working in such a dynamic market¡± ...

China Law 0 Comment February 25, 2010, 2:32 pm

Audit Law Regulations Prove to be New Weapon Against Corruption

Alexander Pan, February 25, 2010
Beijing, China

In yet another effort to curtail the problem of widespread corruption in China, The State Council recently passed new regulations on the implementation of audit law. These new regulations will do much to strengthen the country¡¯s auditing system and will increase the supervision of areas that have demonstrated high levels of corruption, in particular the field of construction.

According to the new regulations, which take effect May 1st, auditors will be granted the authority to monitor and supervise the use of fiscal funds by all state owned firms and projects, as well as any other company or project that utilizes any amount of public funds.

Furthermore, the regulations specifically speak to the field of construction where corruption has been notoriously common. The regulations state that in any construction project that has a government investment of over fifty percent or any project that has government control of construction or operation must submit to auditing.

The new regulations will also increase the transparency of the auditing process by removing restrictions on the publication of audit results

Most experts agree that these regulations will do much to ensure the legitimate and efficient use of public funds. In addition they will help to increase the autonomy of the auditing process and consequently reduce the extent of corruption.

The regulation and supervision of the construction industry is particularly poignant as large amounts of public funds flow into major construction projects to meet the demand for such projects as the nations economy continues to boom at such a rapid pace.

Edward Lehman, managing director of Lehman Lee and Xu said that ¡°these new regulations clearly demonstrate China¡¯s seriousness about cracking down on corruption and ensuring the efficient and proper allocation of public funds. These regulations and attempts to reign in the rampant corruption present in China is a good sign that China will continue its efforts to establish a true rule of law. We are excited to be working in this ever evolving market and look forward to helping our clients to navigate these new regulations.¡±...

China Law 0 Comment February 25, 2010, 2:31 pm

Application Of Laws Against Electronic Information Crimes Clarified

The Supreme People¡¯s Court and the Supreme People¡¯s Procuratorate have jointly issued the Judicial Interpretation (II)[1] 1 to further clarify the issues concerning the application of laws for handling criminal cases related to making, reproducing, publishing, selling and broadcasting obscene electronic information via the internet, mobile communications terminals and information service centres as well as the benefit chains stemming therefrom. The Interpretation comprises 13 articles mainly providing that: 1. the criteria of conviction and sentencing on the cases of distributing obscene articles for profit shall be applied to the acts of any telecom operator or internet information provider providing any website that is obscene to the knowledge of the operator or provider with services such as internet access, server escrow, network storage space, communications transmission channel, charge collection, and collecting service charges from the website; 2. the criteria of conviction and sentencing on punishing joint offences in making, reproducing, publishing, selling and distributing obscene articles for profit shall be applied to those providing, directly or indirectly and for profit, funds to any website that is obscene to their knowledge by means of releasing advertising or rendering fee settlement services.

[1] Intepretation (II) of the Supreme People¡¯s Court and the Supreme People¡¯s Procuratorate on Several Specific Issues concerning the Application of Laws for the Handling of Criminal Cases related to Making, Reproducing, Publishing, Selling and Broadcasting Obscene Electronic Information via the Internet, Mobile Communications Terminals and Information Service Centres
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China Law 0 Comment February 25, 2010, 2:27 pm

Notice Concerning The Enforcement Of The Amended Patent Law

Issued By: State Intellectual Property Office
Issue Date: 29 September 2009
Effective Date: 29 September 2009

For the purpose of effectively enforcing the amended Patent Law, the SIPO published the Notice concerning the Enforcement of the Amended Patent Law on 29 September to clarify submission of patent applications and the rules governing other patent issues.

Applications for Patent of Utility Model and Invention

Where the same applicant, on the same day, applies for both a patent of utility model and a patent of invention in respect of the same invention, Statements shall be filled separately to specify that an application for another patent in respect of the same invention has also been submitted. Any organization or individual who intends to apply for a patent in a foreign country in respect of an invention or utility model created in China shall in advance apply for a confidentiality assessment to be conducted by the SIPO and complete the required request form. Any applicant who applies for a patent in respect of an invention which is created based on genetic resources shall complete the Source Disclosure Registration Form to explain the direct and original sources of such genetic resources, and where the applicant is unable to explain the original source, reasons must be given.

New patent applications made in the above events as well as request forms and registration forms filed after the application date shall be delivered by the applicants in person or by post to the application counters at the Patent Office under the SIPO.

Applications for Designs

An applicants who applies for a design shall submit a brief description of the proposed design in writing with reference to the "Brief Description of Design" (October 2009 Version), or else the application shall be rejected. The SIPO will make patent evaluation reports on patents of utility models and designs whose date of application is after 1 October 2009.
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China Law 0 Comment February 25, 2010, 2:26 pm

MIIT Takes Measures To Improve Internet Domain Name System Safety And Security

The Ministry of Industry and Information Technology (MIIT) has promulgated the "Notice on Improving the Safety and Security of the Internet Domain Name System" in response to the recent increase in threats and risks against domain name safety and security. The Notice requires the authorities concerned to take measures to improve the protection and contingency plan in connection with the domain name system. Basic telecommunication service providers, domain name registration management companies and domain name registration services companies must be aware of their authority in providing their services and improve the protection and security measures for their recursive domain name analytical system and domain name registration system. A series of standards for domain name safety and domain name system safety are expected to be formulated and promulgated....

China Law 0 Comment February 25, 2010, 2:25 pm

Konica Minolta Holdings Inc. V. Trademark Review And Appraisal Board Of The State Administration For Industry And Commerce Of The People¡¯s Republic Of China

Konica Minolta Holdings Inc. V. Trademark Review And Appraisal Board Of The State Administration For Industry And Commerce Of The People¡¯s Republic Of China, Etc. Re: Trademark Administrative Dispute

Konica Minolta Holdings Inc. (Minolta) applied on 18 January 1985 for the registration of the trademark ¡°MEINENGDA¡± and successfully registered such trademark (Register No. 238453) (the referenced trademark) on 30 November 1985, which was approved to be used on ¡°photocopy machines and microfilm readers as well as toners and colour developing reagents used within photocopy machines¡±. On 10 November 1997, Jinfeng Paint Factory filed an application with the Trademark Office to register the trademark ¡°MEINENGDA¡± (No. 1248053) (the disputed trademark), which was to be used on its paint products. The products on which the referenced trademark was used and those on which the disputed trademark was used were not similar so that the Trademark Review and Appraisal Board (TRAB) decided in the No.2051 ruling on 4 June 2007 that the registration of the disputed trademark was approved. Minolta disagreed with this ruling and filed a lawsuit with the Beijing No. 1 Intermediate People's Court.

Minolta claimed that: 1. The TRAB failed to evaluate correctly the impact of the popularity of the referenced trademark in this case. The products on which the referenced trademark and disputed trademark were used were optics-related materials, and were in their nature very close to each other. ¡°MEINENGDA¡± was the Chinese version for their trademark ¡°Minolta¡± (which had been recognized as a well-known trademark in Japan), and since they had completed a wide range of registration in China for the trademark ¡°MEINENGDA¡± and had been using the same in China for a long time, the trademark ¡°MEINENGDA¡± should have been identified as a well-known trademark. 2. The TRAB had granted to the referenced trademark a protection at the well-known trademark level. 3. The referenced trademark was an original creation of Minolta and was of high distinctiveness, and the application for the registration of the disputed trademark was obviously a malicious act.

The TRAB argued that: the evidences submitted by Minolta proved that the referenced trademark was used earlier on the designated products and had certain popularity, but failed to support the Minolta¡¯s claim that the referenced trademark had become a well-known trademark before the date of application for the disputed trademark, and the products on which the disputed trademark and referenced trademark were used were obviously different. Therefore, Minolta was unable to prove that the application for the registration of the disputed trademark may cause damage to the interests of Minolta.

It was held that: 1. the question of similar products should be determined by whether, according to the general knowledge of the relevant public, the products in question were the same or similar in terms of their functions, purposes and raw material, or whether the relevant public would believe that the products in question were connected or caused confusion. In this case, the products on which the referenced trademark and disputed trademark were used were obviously different in terms of their functions, purposes and other features. Therefore, they were not similar products.

2. The evidences submitted by Minolta proved that the referenced trademark had certain popularity, but failed to prove the fact that the referenced trademark had become a well-known trademark before 10 November 1997 on which the application for the registration of the disputed trademark was filed.

Based on the above reasoning, the claim of Konica Minolta Holdings Inc. was dismissed. ...

China Law 0 Comment February 25, 2010, 2:24 pm

IPR Update: Counterfeiting arrests

Sam Engutsamy, February 11 2010

Markets such as the Silk market, the Pearl market, and Yashow are famous amongst foreign visitors to Beijing looking for a deal on fake goods. At any of the above places counterfeit watches, bags, shoes, wallets and much more can be haggled down to an impressive and affordable price. However, in light of recent arrests how long is this all likely to last for?

I recently read a Chinese news article announcing that the once general manager of Beijing¡¯s Silk Market, Wang Zili, had been detained by police for allowing the sale of counterfeit products and bribe taking. Wang Zili, who resigned from his post in July 2009, faces allegations that he supported, and even encouraged retailers to sell illegal goods.

The article also outlined that a Silk Market vendor had been sentenced by the courts to three and a half years for selling counterfeit bags, including brands such as Louis Vuitton and Gucci. As well as imposing a custodial sentence on the individual, the courts fined him 10 000 RMB (approximately 1500 USD)

Intellectually property right protection has long been seen as a serious issue for many foreign corporations looking to enter the China market. Progress is however being made. Recently, Strix, a company established on the Isle of Man, successful won a patent infringement case against two domestic Chinese corporations, who were fined in total 9.1 million RMB.

During my nine month sprint in Beijing, I have come across a number of obvious and blatant fakes such as Paul Smith trainers, Ray Ban sunglasses, and Armani watches. The demand for such products is extremely high. A pair of genuine Ray Ban sunglasses which may cost 195 USD for example, will set you back (if you¡¯re a good bargainer) around 25 RMB in one of the above markets, which is approximately 3.65 USD, around a 98% mark down in usual RRP. The price may be great, however you are loosing out on the high quality production standards, uncomfortable fits, and likely breakable within a matter of days.

Article 9 of China¡¯s National IP Strategy states the following:

The intellectual property law enforcement and administration systems need to be strengthened. The judicial protection and administrative law-enforcement systems need to be strengthened, while judicial protection of IPRs should play its leading role. The efficiency and level of law-enforcement need to be improved and public services need to be strengthened.

Source: http://www.gov.cn/english/2008-06/21/content_1023471.htm

From recent IPR developments, it appears that this is in fact what is happening. The judiciary are leading the way in protecting IPR, and stories as the one above highlight that enforcement is in fact taking place. The steps being made are positive; however an incrementing policy of enforcement and higher deterrents are likely to be necessary to make a mark upon the counterfeiting industry in China.
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China Law 0 Comment February 11, 2010, 3:52 pm

Civil Liability Proves to be New Weapon Against the Export of Trademarks Infringing Goods

Trademark infringement has always been a major concern for firms doing business in China. However£¬ as new figures emerge, it seems that this problem is only getting worse. According to the Customs General Administration (CGA) The total value of all goods seized for trademark infringement totaled over RMB328,000,000 in 2007.

The process of Customs seizures is the primary line of defense for trademark owners to prevent the infringing goods from reaching the market. Under current protocol the CGA will monitor all good during export inspection for suspicious trademarks. If an item is deemed to be questionable, the suspected goods will be detained, and the rights owner will be notified. If infringement is verified, Customs will then confiscate the goods and issue a nominal fine. While this process has had limited success in preventing the export of counterfeit goods, it lacks sufficient deterrent measures as the seizure of goods and small monetary penalty do not outweigh the potential gains of exporting these infringing goods.

How then is a trademark owner supposed to deter the exportation of infringing goods? Recent research has shown that China has sufficient laws and regulations to hold the exporter civilly liable for trademark infringement. This will force exporters to pay significant compensation to the rights owner and will act as strong deterrent to exporting counterfeit goods.

The legal basis for imposing civil liabilities on the exporter includes Artile 118 of the General Principles of Civil Law of the PRC which states that the trademark owner is entitled to compensation from the infringer. Also Article 56 Article 56 of the Trademark Law of the PRC sets out various elements to be taken into account when determining the amount of compensation to be awarded, including the illegal gains obtained by the infringer from the infringement, the loss suffered by the rights owner including its ¡°reasonable costs¡± in stopping the infringement, and a right to statutory damages of no more than RMB 500,000, to be awarded by the court according to the details of the infringement.

In addition to these regulations, there are a number of other articles, detailing the various forms of copyright infringement and the corresponding monetary penalties applicable to said infringement.

Edward Lehman, Managing Director of Lehman, Lee and Xu said that ¡°the emergence of these regulations as a method of penalizing trademark infringers will have a massive impact on the market. Not only will these heavy penalties serve as a deterrent that will prevent exporters from continuing to engage in infringing activities, it will also serve as a warning to other potential exporters. We at the firm are very excited to help our clients take advantage of these measures in order to punish copyright infringers and protect our client¡¯s interests.¡±

Alexander Pan
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China Law 0 Comment February 11, 2010, 3:07 pm

Internationalizing Chinese Domain Names

The Internet Corporation for Assigned Names and Numbers (ICANN) recently introduced technology that will allow non-English reading Internet users to have access to Internet addresses completely in their own language. Known as Internationalized Domain Names (IDNs), this breakthrough was announced at the ICANN's 36th Annual Meeting on October 30, 2009.

After China receives application approval from ICANN, the state-run China Internet Network Information Center ( "CNNIC" ) will introduce Chinese domain names with ".ÖЇø" (.CN). By registering a .CN Chinese domain name, the registrant automatically obtains the equivalent Chinese domain name with a .CN extension (in characters). This has received support from many large internet companies like Microsoft, Baidu, Alibaba, Firefox, and Tencent. The approval is expected to take place in the first half of 2010.

Soon, Chinese domain names will become standard browsing hosts and enjoy the same status as the existing English/Latin based domain names. An Internet user need only type the Chinese IDN into the browser and have direct access to that website anywhere in the world.

Lehman, Lee, & Xu attorney Scott Garner commented, ¡°The move to ¡°.CN¡± domain names is an incredible stride forward in Internet accessibility, especially for millions of Chinese non-English readers all over the world. It attests to the growing influence China has on the share of information and technologies world-wide. At the same time, we at Lehman, Lee, and Xu encourage rights-owners to take active steps to safeguard their trade marks, trade names, and other intellectual property rights. During this technology-transition, we suggest our clients take advantage of our extensive intellectual property law experience for consultation on any questions they may have.¡±

Morgan Crank
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China Law 0 Comment February 11, 2010, 2:49 pm

IPR Update: February 2010

New interpretations issued relating to obscene and offensive content
The Supreme People¡¯s Court and the Supreme People¡¯s Procuratorate have jointly issued a 13 articled document pertaining to the application of cases concerning obscene information via the internet and mobile devices.

The new Interpretation outlines that where telecom and internet service provides were aware and had knowledge of certain obscene and offensive content being distributed, then they themselves can face conviction.

New Measures issued in respect of communication networking protection
The ¡°Administrative Measures for Communications Network Security Protection¡± (¡°the Measures¡±) recently promulgated by the Ministry of Industry and Information Technology (¡°MIIT¡±) will become effective as from March 01, 2010.

The Measures outline that communication networks units shall be responsible for their own network security. Additionally, these units are required to divide their own units into 1 of 5 classes subject to the possible threat to national security, economic operation, social order, and public interest. Violation of such Measures shall require effective remedy, and in the most serious of cases a fine between 5000 RMB and 30,000 RMB shall be imposed.

New Notice issued in respect of domain name security
The ¡°Notice on Improving the Safety and Security of the Internet Domain Name System¡± (¡°the Notice¡±) was recently promulgated by the Ministry of Industry and Information Technology (¡°MIIT¡±). The Notice address concerns relating to threats against domain name security.

The Notice outlines numerous companies at different levels who are required to be aware of improving protection and security methods.

Lehman, Lee & Xu is one of the first five private law firms established in the People's Republic of China. After nearly twenty years of practice and development, Lehman, Lee & Xu now has more than two hundred patent, trademark and PRC-licensed attorneys working in numerous branch offices located in the most-developed cities in China. As one of the leading IP firms in China, Lehman, Lee & Xu provides high quality legal service to its clients and has been consistently rated among the top five IP law firms in China. Lehman, Lee & Xu is also a top-three commercial law firm, and has provided a variety of commercial legal services to hundreds of clients, many of them multinational corporations (MNCs) and Fortune 100 companies. The firm's diverse catalog of commercial services covers foreign direct investment (FDI), merger and acquisition (M&A), tax, employment and many other areas.
For more information about Lehman, Lee & Xu, please visit the firm's website at www.lehmanlaw.com
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China Law 0 Comment February 10, 2010, 5:13 pm

SAWS Strengthens Non-Coal Mine Safety Licensing

The General Office of the State Administration of Work Safety (SAWS) released the "Notice on Further Strengthening the Administration of Issuing Non-coal Mine Safety Licenses." It states that the approval procedures for the "three simultaneous" requirements for construction projects for newly developed non-coal mines must be strictly followed. If such procedures are not successfully completed, the authorities concerned will not issue the work safety license. ¡°As China¡¯s economy continues to grow,¡± senior attorney Edward Lehman of Lehman, Lee, and Xu notes, ¡°it is important that its investors at home and abroad have confidence in the safety of Chinese industry, which is now enforced in Chinese law. Emphasizing safety in construction projects not only increases the output of the industries, but makes them more competitive internationally.¡±


Lehman, Lee & Xu is one of the first five private law firms established in the People's Republic of China. After nearly twenty years of practice and development, Lehman, Lee & Xu now has more than two hundred patent, trademark and PRC-licensed attorneys working in numerous branch offices located in the most-developed cities in China. As one of the leading IP firms in China, Lehman, Lee & Xu provides high quality legal service to its clients and has been consistently rated among the top five IP law firms in China. Lehman, Lee & Xu is also a top-three commercial law firm, and has provided a variety of commercial legal services to hundreds of clients, many of them multinational corporations (MNCs) and Fortune 100 companies. The firm's diverse catalog of commercial services covers foreign direct investment (FDI), merger and acquisition (M&A), tax, employment and many other areas.
For more information about Lehman, Lee & Xu, please visit the firm's website at www.lehmanlaw.com...

China Law 0 Comment February 9, 2010, 4:30 pm

Guangzhou Undeveloped Land Rules Revised

The amended ¡°Measures on Administering Undeveloped Land in Guangzhou¡± has been officially released by the Guangzhou government. Undeveloped land fees will no longer be levied on a monthly basis, but will be levied at a fixed rate of 20%of the value in the transfer or assignment of the land. Late charges amounting to 1%of the undeveloped land fees will be charged on a daily basis thereafter. The Measures state that the competent land authority has the power to adjust the value added to a plot of undeveloped land by reaching a supplementary agreement on the paid use of the state-owned land. Scott Garner, director of the Lehman, Lee, and Xu Shanghai Office, asserted that ¡°Clear and accurate prescriptions for the usage of land are essential to the smooth flow and operation of business not only in Guangzhou and other major cities, but all throughout China. This is indicative of the special attention that the government is paying to one of China¡¯s most precious commodities, undeveloped land. We welcome the opportunity to consult with any of our clients at our Guangzhou office with questions they may have.¡±

Lehman, Lee & Xu is one of the first five private law firms established in the People's Republic of China. After nearly twenty years of practice and development, Lehman, Lee & Xu now has more than two hundred patent, trademark and PRC-licensed attorneys working in numerous branch offices located in the most-developed cities in China. As one of the leading IP firms in China, Lehman, Lee & Xu provides high quality legal service to its clients and has been consistently rated among the top five IP law firms in China. Lehman, Lee & Xu is also a top-three commercial law firm, and has provided a variety of commercial legal services to hundreds of clients, many of them multinational corporations (MNCs) and Fortune 100 companies. The firm's diverse catalog of commercial services covers foreign direct investment (FDI), merger and acquisition (M&A), tax, employment and many other areas.
For more information about Lehman, Lee & Xu, please visit the firm's website at www.lehmanlaw.com
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China Law 0 Comment February 9, 2010, 4:20 pm

International Food Fight

China announced on Friday, February 5th that it will impose anti-dumping duties on broiler chicken imports from the United States. China is the largest importer of chicken products from the US, imports of which reached 584,300 tons in 2008 and accounted for 20 percent of US exports and 75 percent of Chinese imports during the same period. Expected to come into effect on February 13th, duties of 43.1 and 80.5 percent will be placed on US exporting companies Tyson Foods and Pilgrim¡¯s Pride Corp., respectively.

The duties attempt to correct the disadvantage local producers experience as a result of US chicken product dumping. As a result of the ruling, it is estimated that China's monthly chicken imports will fall by 63,000 tons while increasing the cost of US products by about 0.05 yuan more per pound than Chinese chicken products.

Many believe these increased import duties are a reaction to recent Sino-American political tensions, including the U.S. arms sales to Chinese Taiwan, American pressure on China to appreciate its currency, as well as the recent U.S. tire ruling issue. It is not believed, however, that it will escalate into a trade war between the two nations.

Expressing the importance of these issues for the U.S. and China, Managing Director of Lehman, Lee, and Xu Edward Lehman commented, ¡°We at Lehman, Lee, and Xu understand the legal and economic effects these issues can have on Chinese companies invested in international trade. We encourage Chinese companies to consult with us with any corporate, investment, or international legal concerns they may have.¡±
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China Law 0 Comment February 9, 2010, 12:37 pm

Regulation Increase on Pre-Paid Cards

The pre-paid money card industry in China has flourished in recent years, especially in major cities such as Shanghai and Beijing. They are more convenient than cash and can hold anywhere from 100 to 200,000 yuan. With the exponential increase in the number of companies registered to distribute such cards, there has been a similar increase in the number of complaints especially in regard to their date of expiration.

Often, money left on the cards is absorbed by the companies after they expire. For example, it is estimated that 100 million yuan is left over on expired cards in Shanghai alone. Many people have voiced their opinion that pre-paid cards are an investment and their money should be at zero risk, especially if the company they purchased their card from goes bankrupt or their cards expire.

In lieu of this, the government is looking at ways to protect consumer rights and develop common standards. This relatively new industry experiences little to no supervision, so the PBOC is encouraging customers to purchase their cards from reputable institutions such as China UnionPay while it begins to launch a series of supervisory regulations to oversee the operation of pre-paid card companies.

Lehman, Lee, and Xu attorney Scott Garner of the Shanghai office, stated ¡°We at Lehman, Lee, and Xu are very conscious of consumer protection in China, and will monitor all developments regarding the increased supervision of the pre-paid card industry both in Beijing and Shanghai.¡± For updates, please visit http://www.lehmanlaw.com/press-room.html
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China Law 0 Comment February 9, 2010, 12:31 pm

Police Chief Under Investigation for Corruption

As a testament to both the level of corruption present throughout China, and the governments dedication to rooting out such corruption; Chinese prosecutors continue to present startling evidence against Wen Qiang the former police chief of Chongqing Province. Wen is charged with accepting bribes, possessing suspicious assets, protecting gangs, and the repeated rape of a college girl.

As the evidence amounts, a portrait of rampant and extensive corruption begins to appear. Investigators found that Wen¡¯s total assets and spending reached 30.94 million yuan. Of this Wen and his family could only account for 4.08 million yuan in legal income. 16.25 million yuan were confirmed to be gained illegally, while 10.62 million remains unaccounted for.

A total of just over 15. million yuan was gained through bribes from 19 organizations or individuals given to Wen on 119 separate occasions from 1996 to 2009, when Wen was deputy director of the municipal's police bureau or director of its justice bureau.

In addition over 700,000 yuan was accepted between 2000 and 2008 from six bosses of mafia-style organizations, who have been convicted or are under prosecution.

The investigation also found that Wen¡¯s spending accounts are equally as ¡°dirty¡± with over 120,000 yuan being spent on prostitution.

Locals told China Daily they were "shocked by the immense sum of dirty money" that had been amassed.¡± One local taxi driver said that ¡°He must receive a heavy punishment. Nothing else can pacify people's anger,"

While the extent of this type of corruption is widespread throughout China, the government should be commended for cracking down on corrupt officials like Wen. This investigation shows that China recognizes the problem posed by corruption and is dedicated to reducing its presence in government.

Edward Lehman managing director of Lehman, Lee and Xu, said that ¡°This move is one of the many signals indicating that China is committed to eliminating corruption and expanding the rule of law throughout all aspects of the nation.¡±

-Alexander Pan
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China Law 0 Comment February 9, 2010, 12:30 pm

The Cockroach in the Coke Bottle

A Beijing man surnamed Gao is suing the Beijing Coca-Cola beverage company after he found a three centimeter long cockroach like incest inside a bottle of sprite that he purchased from a supermarket.

Mr. Gao took the company to court in 2008 requesting that the company apologize for the incident, pay him 2.05 yuan in compensation, 2.05 yuan as a penalty and 1 yuan for psychological damage.

The Daxing court recently ruled that the Beijing Coca-Cola Beverage Company must pay Mr. Gao 2.05 Yuan in compensation, and said that ¡°The Beijing Coca-Cola Beverage Company, as an influential drink producer, should improve its supervision of food safety. All of its products should meet the quality standard and avoid endangering their customers' health.¡± The court however dismissed Mr. Gao¡¯s other requests. Mr. Gao said that ¡° I don¡¯t want the money.¡± However he was still dissatisfied with the results and is currently seeking appeal.

The 2.05 Yuan compensation is undoubtedly inconsequential to the Beijing Coca-Cola Beverage Company¡¯s overall financial health, however; the negative media and damage to the Coca-Cola brand could be irreparable.

This ruling takes place on the heels of recent reports that sprite from the same company had been found to be tainted with mercury. This tainted Sprite was allegedly the cause of two cases of mercury poisoning in nearby Tianjin.

If Coca-Cola wishes to maintain its reputation of being the producer of a world class beverage, it must take significant measures to ensure that all of its products adhere to the highest levels of health and safety standards.

Edward Lehman managing director of Lehman, Lee and Xu said that ¡° the mere fact that an individual was able to bring a suit against a major company like this demonstrates how far China¡¯s legal system has come. While there is still much work to be done, we are all excited to be a part of China¡¯s expanding legal system and help to establish the rule of law in China.¡±
.

-Alexander Pan
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China Law 0 Comment February 9, 2010, 12:07 pm

Edward Lehman invited to speak at the Asia Pacific 2010 Conference

Edward Lehman, Managing Director of top three Chinese law firm, Lehman, Lee & Xu has been invited to speak at the Asia Pacific 2010 Conference, to be held in Kuala Lumpur, Malaysia on April 28, and 29 2010. The event will be looking at the current issues affecting the oil and gas industry within the Asia-Pacific region.

Others who have been invited to speak at the conference include international law firm¡¯s Latham & Watkins and Baker & Mckenzie, and large multinational corporations, such as Shell.

From having numerous years of experience offering legal advice within this industry, Mr Lehman was more than happy to accept the invitation to speak at the Asia Pacific 2010 Conference, ¡°China¡¯s surge in economic growth has seen a hike in demand for oil. The country exhausted more than 5.1 % more oil in 2008, than it did in 2007. More recent figures from China National Petroleum Corp expect crude oil imports to go up to 9.1 % in 2010¡± He continues by adding that ¡°the Tenth Five-Year Plan of Oil & Gas Exploration (2001 ¨C 2005) was one of the first steps taken to reorganise the once restrictive industry in China.¡±...

China Law 0 Comment February 8, 2010, 4:14 pm

Edward Lehman selected as leading Corporate Immigration lawyer

Who¡¯s Who Legal has selected Edward Lehman, Managing Director of Lehman, Lee & Xu as one of the world¡¯s leading Corporate Immigration lawyers.

The award, which makes a selection of 410 lawyers internationally, only makes one selection from China, that of Mr Edward Lehman of Lehman, Lee & Xu.

Already this year, Mr Lehman has been awarded and acknowledge for his contributions and commitment within the fields of trademark and franchising law in China.

Mr Lehman commented that ¡°I am very honoured to be selected as the leading corporate immigration lawyer in China. This award which collates together the world¡¯s top 410 lawyers within this field, highlights the dedication and distance Lehman, Lee & Xu will go to in addressing and satisfying our client¡¯s needs.¡± He continues by adding ¡°having practiced within the legal field in China for over twenty years now, my firm and I have coordinated with numerous international corporations in providing solid legal advice to their immigration concerns. This award demonstrates Lehman, Lee & Xu¡¯s ability in successfully doing this.¡±

Who¡¯s Who is an independent research firm that was named the Strategic Research Partner of the ABA Section of International Law, in addition to its position as Official Research Partner of the International Bar Association. The firm compiles thousands of nominations from clients and private professionals to determine the leading individuals in their respected practice areas.
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China Law 0 Comment February 8, 2010, 11:31 am

China working on law to ensure affordable housing

Beijing, China, February 5, 2010 - It has been reported that China has been working on a draft law to ensure people with moderate or low-incomes will be able to rent or buy houses at cheaper prices.

Under the draft law, low income families could be guaranteed housing under a low-rent housing scheme, though they would not possess or fully own the rights to the housing they live in.

Apart from the low-rent housing scheme, public housing under the ownership of the government would be another way in which housing could be provided to low income families.

It is also reported that the draft law also provides detailed rules on the amount of floor space for the housing, related service facilities, safety and quality standards, as well as locations of such housing.

¡°China liberalized its housing market in 1998, and housing prices have continued to soar ever since¡± said John Lee, Senior Attorney with Lehman, Lee & Xu. ¡°The Chinese central authorities have encouraged local government to build more affordable and low-cost houses in an effort to address housing price hikes¡± he added.

Lehman, Lee & Xu is a prominent Chinese corporate law firm and trademark and patent agency with offices in Beijing, Shanghai, Shenzhen, Hong Kong, Macau, and Mongolia. The firm is recognized as a leading expert in corporate law and an active member of the Shanghai community.
To learn more about us, please visit our website at www.lehmanlaw.com.
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China Law 0 Comment February 8, 2010, 10:01 am

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