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Edward Lehman Selected to Who's Who Among Executives and Professionals

Edward E. Lehman of Lehman, Lee, and Xu has been selected to the Who's Who Among Executives and Professionals. This nomination is only bestowed upon a select few individuals who have displayed excellence in business, law, academia, medicine, and who have shown an entrepreneurial spirit.

The Who's Who Among Executives and Professionals was created in recent years in order to properly catalog and provide contact details for leading professionals around the globe. This listing is an attempt at a comprehensive directory of producers, movers, and shakers within their respective fields.

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 has also been recognized as one of the top full service as well as intellectual property firms in China by several international magazines. The law firm is managed by Mr. Edward Lehman, a leading expert on corporate law with 20 years of practice experience in Mainland China. ...

China News 0 Comment May 28, 2010, 11:15 am

Snow

http://blawg.lehmanlaw.com/english/uploadfiles/35_60542.jpg


http://blawg.lehmanlaw.com/english/uploadfiles/35_78123.jpg
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China News 0 Comment March 8, 2010, 11:07 am

China*s Billionaire Boom

AmCham Shanghai and Forbes Magazine will be hosting an event Wednesday March 10 from 11:30- 13:00 at the Four Seasons Hotel. as Forbes Shanghai bureau chief Russell Flannery unveils one of its most popular reports around the world 每 the annual Forbes Billionaires List. Russell will interpret the fresh-off-the-press results in a presentation titled: "China's Billionaire Boom: Opportunities for Foreign Businesses." The presentation will be followed by a panel discussion among Chinese entrepreneurs and experts about the prospects for future business cooperation between fast-growing private sector companies in China and foreign businesses.

Russell Flannery is the senior editor of Forbes Magazine in Shanghai. He will be introduced by panel speaker Liang Xinjun. Liang Xinjun is co-founder of Fosun Group, China*s largest private company founded in Shanghai. Liang is also a member of the 2009 Forbes Rich List.

When asked to comment on the event, Edward Lehman, Managing Director of Lehman, Lee and Xu, one of the largest and also privately owned law firms based in China stated, ※ It is great two see two organizations that I have such great respect and support for come together. As the former president of AmCham Shanghai and an avid Forbes Magazine reader, I am very excited about the event and it is something I have been anticipating for quite some time.§

The event should be particularly interesting coming off the news of giant American private equity firm forming their first RMB fund in conjunction with Fosun Group. Carlyle is the first among the private equity industry*s global elite to take this giant step forward in raising renminbi in partnership with a leading Chinese private company. When asked to comment, Edward Lehman stated, ※It marks an important milestone in the short but impressive history of private equity in China, and points the way forward for many of the private equity firms already established in China.§

For more information on this event or more information regarding the establishment of a renminbi fund, please visit www.lehmanlaw.com or contact Quinn Stepan at qstepan@lehmanlaw.com

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.
...

China News 0 Comment March 5, 2010, 9:12 am

The Yuan Also Rises

President Obama stated recently that he will take a ※tough stance§ against the valuation of the yuan and that it will be a priority topic in international strategic economic development discussions. Obama said in a Feb. 9 interview with Bloomberg BusinessWeek that China*s ※currency policies are impeding the rebalancing that*s necessary§ in the global economy, and also is leading to a bubble in the Chinese economy. The argument, bordering on statement, is the weak Yuan creates a huge trade surplus for China and an imbalance in international trade. Many people in the international community, particularly in the United States, feel that a reevaluation would likely accelerate the growth of their exports to China.

Growing up, whenever I did not get along with another child or a sibling, my mother would always say to me, ※maybe it is you who needs to change Quinn. Have you done everything you can to make this work?§

I think it is time Mom has a sit down with Barrack. I envision the lecture going something like this (in a wise motherly voice) , ※You cannot control other people Barrack. Is there anyway you can change yourself to get along better with China? Are there any newly instituted or significant incentives to encourage American manufacturers to come back home?§

Today, the United States is not a desirable place to build new factories and manufacturing plants. The United States invents a lot of the technologies produced but is an extremely small player in global production. Sure, there are the labor cost issues, but for many of these products require the same high skilled and high paid engineers and managers that can be found in any factory in the world. You can also offset the labor costs with the cost of shipment.

Why is the United States losing out on production output? Forget foreign exchange rates. It is not materials; they cost the same everywhere. If you go down the list, everything seems to match up pretty well, EXCEPT TAX POLICIES AND SUBSIDIES.

The Yuan will eventually be revalued. I believe China is currently keeping the value low to stem job loss and they are most likely torn between a one off increase or a gradual increase, fearing the gradual will bring fast cash into an already booming economy and create more headaches for a government in the midst of fighting off inflation.

Will the increased value of the Yuan bring manufacturers back to the US? Absolutely not. You have already scared them away. And all this talk about taxing American companies foreign income (which gets no press by the way), let*s not lose our corporations as well.
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China News 1 Comment March 4, 2010, 5:48 pm

Game On

The worlds of online gaming and movie production are beginning to cross paths in an effort to increase their presence and competitiveness in the Chinese entertainment industry. Companies like Shanda Games Ltd. and Perfect World, two of the largest online gaming companies in China, plan on releasing major motion pictures based on their company*s online games, following the multi-million yuan success of their first productions.

Although there are more than 60 million online gamers in China, the movie industry is another way to reach viewers and to gain an advantage in the increasingly competitive world of online gaming. The cost of developing, popularizing and operating an online game is very high, considering there are nearly 500 online gaming companies in the market. Companies are increasingly looking to other means of marketing their games. For example, Shanda Interactive has delved into games, literature, music, movies, online videos as well as the tourism industry by setting up joint ventures and making new acquisitions.

Yet the online gaming companies are not the only ones being creative. China Film Group Corporation, the country's largest film maker, intends to form a new company to transform the plots of its movies into online games via cooperation with game developers. This may prove more difficult, however, considering to competitiveness of the online gaming market.

Edward Lehman, Senior attorney at Lehman, Lee, and Xu Law Firm, stated, ※As a top-3 law firm in China, we have enormous experience dealing with antimonopoly, antitrust, mergers, acquisitions, entertainment, and intellectual property law-to name a few. The entertainment industry is only getting larger in China, and our firm has the resources and knowledge to suit the demand for quality legal expertise.§

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 News 0 Comment February 25, 2010, 2:33 pm

Government crackdown on ※phony§ commercials

Beijing, China As companies search for new methods of marketing their products, advertisements have begun to push the envelope of acceptability, and legality.

The State Administration of Radio, Film, and Television has recently banned over 3,000 television ads claiming that they were ※illegal§ Some of these ads were banned because of ※vulgar§ or ※inappropriate§ content; however, a large majority of the banned commercials were found to be making exaggerated, or false claims about their products.

According to a study conducted by major watchdog organization, The Professional Committee of Media Shopping, most commercials for health foods and medicines broadcast on local television stations across China violated advertising laws and regulations from the State Food and Drug Administration.

As these ※phony§ commercials begin to be exposed, many celebrities who were featured endorsing the ※phony§ product are also coming under fire. Such celebrities include popular entertainment show host Wang Yang and Zhou Yanhong, a female singer who paired up in a medicine commercial that overplayed the product's anti-aging properties with unfounded claims that it could make consumers look "10 years younger.

In addition to these celebrity endorsements, many commercials now feature fake experts and fake testimonials from ※consumers§ of the products.

Scott Garner, Director of LEHMAN, LEE & XU Shanghai office said that ※The governments crackdown on these illegal commercials shows both China*s efforts to ensure only quality products reach the market, and its tightening control of the content of media and advertising. We as a firm look forward to assisting our clients navigate the local laws and regulations in their attempts to reach the Chinese market.§

LEHMAN, LEE & XU advertising law specialists offer complete legal service to a broad spectrum of advertising clients on a wide diversity of matters. We have advised some of the biggest players in the industry in some of the advertising industry's most significant and intricate matters. The consequential breadth of expertise allows us to handle all aspects of any advertising law matter and gives our clients an upper hand in representation on matters falling outside the sphere of more traditional advertising law firms.

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 News 0 Comment February 11, 2010, 2:57 pm

China Job Update

Please see the following link for recruitment within the Asia Pacific region.

http://practicesource.com/joblogs.html
...

China News 0 Comment February 10, 2010, 10:05 am

Milk Matters

The Chinese Central Government has sent eight inspection teams to 16 provincial areas to investigate and prevent melamine-tainted milk powder from being reclaimed illegally to produce milk products. Melamine, a milk adulterant added to poor quality milk to make it appear protein rich by increasing its nitrogen content. It can cause renal failure especially in children and infants.

Milk powder contaminated by melamine was sealed in 2008 after the death of six infants, yet due to difficulty of disposal and destruction, some may have been used as raw materials for dairy products illegally in certain areas. Especially endemic to difficult-to-monitor small dairy farmers as a way to cut costs, melamine is considered absolutely unacceptable to the Chinese Government.

On February 1st, ten-day checks for melamine-tainted milk products were launched across the country to locate any manufacturers still using the illegal powder. These measures in conjunction with arrests made in provinces such as Jilin, Shaanxi, and Heibi are examples of the government*s efforts to restore confidence in the Chinese diary industry. Simultaneous scientific investigations of efficient ways to dispose of the powder are underway.

Scott Garner, director of the Lehman, Lee, and Xu Shanghai Office, commented, ※This is an excellent example of increased standards for Chinese consumers and the simultaneous spread of the rule of law throughout the country. Consumer confidence is vitally important for Chinese companies at home and abroad.§
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China News 0 Comment February 9, 2010, 12:35 pm

Second Alleged Mercury Poisoning from Sprite

A 13 year-old boy was rushed to the hospital January 17th to treat mercury poisoning allegedly contracted from a can of Sprite. The Coca-Cola product was purchased by the boy from a supermarket in the Tongzhou district, where the remaining products have since been sealed off by the police. Although he faces sequelae and possible infertility, the boy has been released from the hospital. This is Beijing*s second case in 3 months of mercury poisoning allegedly resulting from consuming canned Sprite. After inspecting its own manufacturing and production equipment, Coca-Cola insists its quality management system is safe and in line with Chinese quality standards. Although the police are conducting their own inspection, it may take some time before a comprehensive production, transportation, and distribution analysis is made. A comparison should be made between both cans of Sprite in the mercury cases, including date, place, and means of distribution. However, it is also necessary to thoroughly investigate the original stores in which the Sprite was purchased and to take caution when deciding where to purchase drinks. Coca-Cola, however, insists these are individual cases.

Morgan Crank
...

China News 0 Comment February 4, 2010, 3:41 pm

Green plans for the future

Sam Engutsamy, February 4 2010

China appears to have &stepped up a gear* in making developments to commit itself down a more environmentally friendly route. Previously postings have highlighted how China has successfully reduced sulphur dioxide emissions for four consecutive years, have pushed for greater use of public transport, and have promoted the use of clean energy vehicles. These reforms are founded upon the 2005 Renewable Energy Law, and its 2009 amended version.

Post Copenhagen, China has submitted proposals, prior to the Accords January 31 2010 deadline, outlining the country*s commitment to a greener future. China*s plan was as follow: (i) lower carbon dioxide emissions by 40%-45% by 2020, from 2005 levels; (ii) increase share of non-fossil fuel to around 15% by 2020; and (iii) increase forest coverage by 40 million hectares, and forest stock volumes by 1.3 million cubic meters by 2020, from 2005 levels. The non binding Copenhagen*s Accord, was reached between the United States, China, India, South Africa, and Brazil during the 2009 United Nations Climate Change Conference. Japan, the European Union, and Australia have since aligned themselves with the accord, and have submitted their commitments also.

As the 11th Five-Year Plan (2006 每 2010) is due to expire, plans and details pertaining to China*s subsequent five year plans are crucial for the future. To date, China has taken massive strides in making commitments to minimise some negative effects arising from their growing economy. One such example, recently reported China having installed more new wind turbines than either Europe or the United States during 2009. China*s energy progress is not merely limited to wind power. Announced in 2009, plans are in motion for the building of several solar power plants in Ordos City, Inner Mongolia. China*s is making sure all surfaces are fully covered in order to become a world leader in renewable energy.

In a move that will both promote the use of solar energy, and the country*s commitment to the cause, it was announced on February 3, 2010, that China*s Yingli Green Energy Holding Company Ltd, shall be the global sponsor of FIFA*s 2010 World Cup. We also should not forget the Three Gorges Dam project; China*s biggest electricity generating project. Additionally, the creation of the National Energy Commission led by Premier Wen Jiabao, highlights the allegiance China has adopted in terms of green energy. Such a move can only be beneficial for China.

As the world*s largest producer of greenhouse gases, I am glad to see China making such proactive steps in committing itself to the future. If China continues making such progress on climate change, it could soon emerge to be the world leader within the field, and a shining example for other countries to follow. Well done China.

For further reading, Forbes.com provides an interesting glance of the world*s biggest green energy projects. ...

China News 0 Comment February 4, 2010, 3:41 pm

Milk

Three men were arrested in Shanxi province last week in connection with selling and producing melamine tainted milk products. These arrests come as part of China latest crackdown on tainted consumer products.

Investigators followed the trail of this melamine tainted milk from the discovery of tainted milk candies found in the market. These candies were found to be produced in plants in both Guangdong and Fujian province. Investigators found that these candies had been produced using a milk powder from Weinan Lekang Dairy Company. This company, the investigation concluded, had purchased 10 tons of expired milk powder from a farmer in Weinan and had mixed it to become 32 tons of toxic milk powder. Over 28 tons of this toxic powder were sold to various food companies who used the powder to make candies.

The central government acted quickly to pull all products produced with this tainted milk from shelves and has destroyed the remaining milk powder. The governments quick action can been seen as an indication of China*s sensitivity towards such issues after 2009*s tainted milk incident which left six babies dead and countless others sick..

While these arrest and China*s latest efforts to catch and punish those producing and selling tainted milk products should be applauded, they are only punitive measures. China has yet to implement an effective system of preventative measures to stop these tainted products from being produced in the first place. It is good to see that China is serious about cracking down, however much more is yet to be done.

For more information please visit our website at
http://blawg.lehmanlaw.com/english/archives/2010/01/15/734.html

-Alexander Pan...

China News 0 Comment February 4, 2010, 2:32 pm

Parking fees increase to promote public transport

In order to promote and encourage the use of public transport, parking fees for areas of Beijing shall be raised.

The Municipal Committee of Development and Reform announced that as from April 1, 2010, the highest parking fees would be raised to 10 RMB per hour. Such fees such apply to areas including railway stations and business districts. Underground parking shall be priced at 6 RMB per hour.

The new pricing scheme is based on the promotion of two policies. The first, being to reduce the amount of traffic on Beijing*s busy roads, and the second, to encourage the use of public transport.

The fees are very reasonable, if comparisons are made with other capital cities. Westminster City Council in London for example places a maximum charge of 2.50 pounds per hour, which equates to 27.28 RMB. Other privately owned car parks impose much higher fees. Additionally, Monday through to Friday between the hours 07.00 and 18.00, motorists are required to pay an 8.00 pound (87.28 RMB) daily charge, labelled the Congestion Charge to drive through areas of central London. Since the implementation of the Congestion Charge scheme, traffic has reduced by 21%, there has been a 6% in the number of bus passengers, and 137 million pounds has been raised during 2007 每 2008 to be invested back into improving London*s transport infrastructure.

Beijing operates a fantastic public transport network. Line 4 was the newest introduction to the existing subway network, with further lines planned to be introduced in the coming years. The public transport provides for low-priced and extremely efficient travel.
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China News 0 Comment February 3, 2010, 5:38 pm

Beijing*s big plans

In order to elevate Beijing*s status and align itself with international cities such as New York, Paris, London, Hong Kong and Tokyo, local authorities are looking at how to tackle and address problems that are halting Beijing from rising to such levels.

Issues highlighted as affecting Beijing*s future development include rubbish disposal, restrictions on traffic, overpopulation and house prices. Such concerns are required to be tackled in order to Beijing to keep on track with its four decade deadline to become a world city.

One major concern facing the Beijing authorities is the disposal of the 18,000 tons of garbage produced every day within the city. In line with Beijing*s environmental friendly policies, there is more focus on the recycling of waste, rather than incineration.

Similar to other foreign capital cities, Beijing encourages and welcomes corporations and business to enter into the Chinese market. As China continues making economic progress, further foreign nationals are likely to pinpoint Beijing as a source of employment, thereby aiding to the capitals push in becoming a major city.
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China News 0 Comment February 3, 2010, 5:37 pm

Foreign only community announced

Plans have been announced for the building of a community, for foreign benefit only in Chengdu, sub provincial city of China*s Sichuan province.

The planned community, compromising of a church, hospital and playgrounds, are expected to be completed in two phases. The first of these phases is likely to be completed by October. In a move that attracted mixed reactions, Zheng Xiaoming, Chieft of Planning and Construction Bureau of the Chengdu National Hi-Tech Zone, stated to maintain the international-ness of the community no apartments will be sold to local residents, only rented out to foreign nationals.

One side of the argument supports such a move, as it would allow foreign nationals to meet, and would benefit those who have just arrived into China without knowing anyone. However, others feel that by going ahead with this project, it would cause segregation, and isolation between foreign and Chinese within Chengdu.

As a foreigner in China, and a foreign employee at Lehman, Lee & Xu, it is through integration and unity, and not segregation which is the way forward. My thoughts are such plans would not be beneficial to either to the Chinese citizens, or foreigners living in Chengdu. It*s through people coming together, that we are able to understand and experience each other*s cultural fingerprints. Both sides can learn a lot from each other.

※We cannot be separated in interest or divided in purpose. We stand together until the end.§ 每 Woodrow T. Wilson (1856 每 1924)...

China News 0 Comment February 2, 2010, 9:43 am

Suggested ban on youth*s mobile phone

Cracking down on the access of pornographic and vulgar content has always been a priority concern for the Chinese authorities. In further attempts to reduce the access of such disturbing materials, suggestions have been raised for legislation to be put in place to ban children under the age of 12 from using mobile phone devices.

The suggested idea stems from the fact that through most mobile phone devices, the internet can be access via WAP sites, and children under the age of 12 could be potentially subjected to such materials. Currently, over 15,000 pornographic websites, and 11,000 WAP sites have been blocked in the fight against pornographic content.

By aligning it*s stance with other countries, such as France, China has shown its determination in enforcing its efforts to combat pornographic materials. China current has approximately 384 million internet users which accounts for over one-fifth of the cumulative world*s total. ...

China News 0 Comment January 29, 2010, 8:16 pm

China*s green drive

China continues in its efforts to encourage a green and healthier environment through the promotion of the use of clean-energy vehicles.

With clean-energy vehicles receiving the full backing of the Chinese government, it is predicted that the relevant industries associated with these vehicles will prosper and benefit greatly. These industries will range from power companies, to recharging equipment manufacturers.

Shenzhen, the sub provincial city of southern China*s Guangdong province was the first city to promote the use of electric powered vehicles. The city intends on investment over 300 million RMB over the course of five years. In addition to this, 250 recharging stations, and 12,500 parking lot recharging towers are also planned.

China appears to advancing forward in its implementation of a greener China. In one of our previous postings, (dated January 28 2010 which can be located at the following location: http://blawg.lehmanlaw.com/english/archives/2010/01/28/768.html), we highlighted another green success for China, with the successful reduction of sulphur dioxide emission for the four consecutive year running.
...

China News 0 Comment January 29, 2010, 7:20 pm

※When the well is dry, we know the worth of water.§ Benjamin Franklin, Poor Richards Almanac

There are recent talks about Beijing diverting seawater from nearby provinces as an immediate solution to supplying the capital city with a much needed water supply. Seawater is not the number one choice for Beijing, but a delay of the massive diversion projects has forced key decision makers to come up with a quick and feasible solution. So far, China and the rest of the world have struggled to produce an economically viable option to curb our energy and water issues. Seawater is a start but it is a temporary solution to a permanent problem.
After almost 30 years of double digit economic growth and the migration of hundreds of millions of villagers to cities, gaining access to clean water becomes a bigger issue by the day for many residents of China. If the current trend continues, China*s water supply, or lack thereof, has the ability to halt industrial and population growth in one of the worlds most expansive and dynamic economies.
The majority of China*s 270,550 sq km of water is polluted, threatened by drought or being overused. I have read some reports estimating as much as 90% of China*s water supply is polluted. This, of course, is a by product of rapid economic expansion. Today, there are few restrictions or legal enforcement preventing firms from dumping waste products in large bodies of water. This is very similar to what happened in The United States during the Industrial Revolution. Overuse primarily comes from China*s dominant agricultural sector and droughts affect 15% of the country forcing some 300 million people living in rural areas to travel great lengths for safe drinking water.
In its 11th five year plan, China dedicated 1 trillion RMB in attempts to alleviate the water crisis. Most of the money will go towards desalinization and reclamation projects. There is one ambitious plan to move water from water rich regions such as the Yangtze River to the deprived Yellow River. However, moving water around is not the final answer to the problem.
Many firms, both foreign and domestic, are positioning themselves to take full advantage of the current water crisis in China. Companies looking to take advantage of this future trend range from high tech purification services to firms that deal more in water transportation and infrastructure. In the water business, having exposure to China should allow firms to benefit from Beijing*s attempts to bring cleaner water throughout a country in great need. Gaining access to clean water becomes a bigger issue by the day for many in China.
...

China News 0 Comment January 29, 2010, 7:17 pm

Suggested ban on youth*s mobile phone

Cracking down on the access of pornographic and vulgar content has always been a priority concern for the Chinese authorities. In further attempts to reduce the access of such disturbing materials, suggestions have been raised for legislation to be put in place to ban children under the age of 12 from using mobile phone devices.

The suggested idea stems from the fact that through most mobile phone devices, the internet can be access via WAP sites, and children under the age of 12 could be potentially subjected to such materials. Currently, over 15,000 pornographic websites, and 11,000 WAP sites have been blocked in the fight against pornographic content.

By aligning it*s stance with other countries, such as France, China has shown its determination in enforcing its efforts to combat pornographic materials. China current has approximately 384 million internet users which accounts for over one-fifth of the cumulative world*s total. ...

China News 0 Comment January 29, 2010, 5:06 pm

China*s green drive

China continues in its efforts to encourage a green and healthier environment through the promotion of the use of clean-energy vehicles.

With clean-energy vehicles receiving the full backing of the Chinese government, it is predicted that the relevant industries associated with these vehicles will prosper and benefit greatly. These industries will range from power companies, to recharging equipment manufacturers.

Shenzhen, the sub provincial city of southern China*s Guangdong province was the first city to promote the use of electric powered vehicles. The city intends on investment over 300 million RMB over the course of five years. In addition to this, 250 recharging stations, and 12,500 parking lot recharging towers are also planned.

China appears to advancing forward in its implementation of a greener China. In one of our previous postings, (dated January 28 2010 which can be located at the following location: http://blawg.lehmanlaw.com/english/archives/2010/01/28/768.html), we highlighted another green success for China, with the successful reduction of sulphur dioxide emission for the four consecutive year running....

China News 0 Comment January 29, 2010, 5:04 pm

China*s green drive

China continues in its efforts to encourage a green and healthier environment through the promotion of the use of clean-energy vehicles.

With clean-energy vehicles receiving the full backing of the Chinese government, it is predicted that the relevant industries associated with these vehicles will prosper and benefit greatly. These industries will range from power companies, to recharging equipment manufacturers.

Shenzhen, the sub provincial city of southern China*s Guangdong province was the first city to promote the use of electric powered vehicles. The city intends on investment over 300 million RMB over the course of five years. In addition to this, 250 recharging stations, and 12,500 parking lot recharging towers are also planned.

China appears to advancing forward in its implementation of a greener China. In one of our previous postings, (dated January 28 2010 which can be located at the following location: http://blawg.lehmanlaw.com/english/archives/2010/01/28/768.html), we highlighted another green success for China, with the successful reduction of sulphur dioxide emission for the four consecutive year running....

China News 0 Comment January 29, 2010, 5:04 pm

Opportunities in China's Water Industry

※When the well is dry, we know the worth of water.§ Benjamin Franklin, Poor Richards Almanac

There are recent talks about Beijing diverting seawater from nearby provinces as an immediate solution to supplying the capital city with a much needed water supply. Seawater is not the number one choice for Beijing, but a delay of the massive diversion projects has forced key decision makers to come up with a quick and feasible solution. So far, China and the rest of the world have struggled to produce an economically viable option to curb our energy and water issues. Seawater is a start but it is a temporary solution to a permanent problem.
After almost 30 years of double digit economic growth and the migration of hundreds of millions of villagers to cities, gaining access to clean water becomes a bigger issue by the day for many residents of China. If the current trend continues, China*s water supply, or lack thereof, has the ability to halt industrial and population growth in one of the worlds most expansive and dynamic economies.
The majority of China*s 270,550 sq km of water is polluted, threatened by drought or being overused. I have read some reports estimating as much as 90% of China*s water supply is polluted. This, of course, is a by product of rapid economic expansion. Today, there are few restrictions or legal enforcement preventing firms from dumping waste products in large bodies of water. This is very similar to what happened in The United States during the Industrial Revolution. Overuse primarily comes from China*s dominant agricultural sector and droughts affect 15% of the country forcing some 300 million people living in rural areas to travel great lengths for safe drinking water.
In its 11th five year plan, China dedicated 1 trillion RMB in attempts to alleviate the water crisis. Most of the money will go towards desalinization and reclamation projects. There is one ambitious plan to move water from water rich regions such as the Yangtze River to the deprived Yellow River. However, moving water around is not the final answer to the problem.
Many firms, both foreign and domestic, are positioning themselves to take full advantage of the current water crisis in China. Companies looking to take advantage of this future trend range from high tech purification services to firms that deal more in water transportation and infrastructure. In the water business, having exposure to China should allow firms to benefit from Beijing*s attempts to bring cleaner water throughout a country in great need. Gaining access to clean water becomes a bigger issue by the day for many in China.
...

China News 0 Comment January 29, 2010, 1:49 pm

Successful reduction of sulphur dioxide emissions

Zhou Shengxian, Minister of Environmental Protection, announced the reduction of China*s chemical oxygen demand (※COD§) and sulphur dioxide emissions for four consecutive years.

Sulphur dioxide emissions were recorded to have dropped 10.4 percent in 2009, compared with the figures for 2008. The target plans set by the government, aimed at reducing the emissions of major pollutants by 10% starting from 2006 until 2010. This is termed the 11th Five Year Plan.

Such a fall in sulphur dioxide emissions could be attributed to the use of desulphurisation. This is a process whereby contaminated gases are cleaned using wet scrubbers. Such a system reduces the contamination level which may have adverse effects on humans, animals, and on plant life. Since 2006, China has built more than 411 million kilowatts of desulphurisation units, in an attempt to reduce the harmful effects of such emissions.

China*s success in achieving and successful adhering to the 11th Five Year Plan has highlighted the country*s determination to reduced such emissions and promote a healthy and greener environment....

China News 0 Comment January 28, 2010, 3:51 pm

The meat of the day#

Walk down any street in Beijing, and within minutes you are likely to cross paths with several proud dogs and their owners. Just like in any other city, Beijing*s pet community can enjoy a happy life of pampering, being fed and watered, and taken for walks. Their standard of living (and life expectancy) is only likely to increase, now that legislation is in draft mode to ban the consumption of dog and cat meat in China.

China legislative process has begun the procedure of drafting laws which will punish those who both consume and sell such meats. According to the draft law, a fine of up to 5000 RMB, and 15 day detention shall be imposed upon those guilty of dog and/or cat meat consumption. Those found guilty of selling the meat, shall face heftier fines of between 10,000 RMB and 500,000 RMB.

Dog and cat consumption in China is viewed as a part of the traditional culture, dating back thousands of years. It is believed the consumption of such meat will promote body warmth and heat during the winter months.

The proposed law, renamed Anti-cruelty to Animals (※the Act§), is sparking fierce debate between those for and against such a ban on dog and cat*s meat consumption. In support the Act, the Chinese Animal Protection Network (※CCAPN§) established in January 2006, has been active in the promotion of a prohibition on the consumption of such meats. The Act does not focus solely on this issue. It shall strive to protect six categories of animals; those on farms, in laboratories, pets, working animals, animals for entertainment purposes and wild animals....

China News 0 Comment January 28, 2010, 3:51 pm

4G Technology tests and conferences

Four important 4G Technology tests and conferences took place in December of 2009. First, the Ministry of Industry and Information Technology (MIIT) announced the beginning of next-stage TD-LTE tests for 4G internet network on the 28th of December 2009. ZTE, Huawei, Datang, and Motorola will be the first group of manufacturers to execute these tests and will be evaluated by the MIIT. According to both the MIIT and these leading manufacturers, LTE is premier in extending the mobile communication industry to the mobile Internet. Base stations with a similar preexisting platform in TD-SCDMA mode will only need to upgrade their software to TD-LTE mode or TD/TD-LTE dual mode, minimizing costs. The stages of testing include the concept testing stage, technology research, development and experiment stage, and scale experiment stage expected to be completed in the latter half of 2010.

Secondly, the first 4G technology selection conference in China was held in Beijing this past December. Various assessment boards have tested 4G standards and proposals, headed by Wen Kun, head of the Division of Technology of the MIIT. Although the assessment boards are all from different countries and will produce different results based on their home wireless communications environment, China will base its 4G assessment on its own environment. The results of one country may not necessarily be applied to other countries, so further discussions are necessary before deciding final results. The International Telecommunications Union (ITU) will assist in determining frequency and introducing other important 4G technologies. China*s share of involvement in 4G technologies and standards will be at least 40%.

Thirdly, a joint seminar on new network, future internet, home networking, IPTV, CDN and environmental standards took place between the China Communications Standards Association (CCSA) and the European Telecommunications Standards Institute (ETSI) on the 17th of December 2009 in Beijing. The key point of this seminar was the mutual understanding that if different sectors want to realize the sharing of information globally, sensor network technology will be the key. The ETSI also emphasized the direction of home networking as the future direction of internet development.

Finally, after the world*s first 4G LTE network was introduced in Norway and Sweden, the Chinese telecommunications company Huawei won a bid to provide the network with base stations, operation support systems, and network planning and implementation. This amazingly fast network can offer users a download rate of up to 100Mbs/s, realizing its success thanks to Huawei*s assistance and support.

Morgan Crank
Lehman, Lee, and Xu
...

China News 0 Comment January 27, 2010, 2:43 pm

Tax updates 2010

A. State Council*s ※Notice on the Promotion of Stable and Sound Development of the Real Estate Market§Recently released by the State Council, the Notice on the Promotion of Stable and Sound Development of the Real Estate Market (※the Notice§) outlines that down payment mortgage ratios shall not be less than forty percent where a loan has been used to purchase a house, and a second house is being purchased.

The Notice supports first time buyers in China, by outlining that financial institutions should adhere to rigorous policies regarding the management of mortgages for secondary purchases.

B. MOFCOM*s Circular No.1, 2010China*s Ministry of Commerce (※MOFCOM§) clarified and expanded upon previous issues regarding extension of anti dumping duties. The MOFCOM announcement provides that sixty days prior to the termination of anti dumping measures, a petition may be made with MOFCOM via written format in order for the Ministry to make a final review as to whether such termination of measures shall allow for the re-emergence of problems the original duties sort to remove.

C. MOF*s Circular No.155, 2009
China*s Ministry of Finance (※MOF§) Circular No. 155 (※the Circular§) issued on December 24th, 2009 deals with the tax policies related to the operation of student departments and restaurants within universities. The Circular outlines the following:
(i) Student*s apartments are exempt from property taxes;
(ii) Apartment*s signed by students are exempt from stamp duty;
(iii) Accommodation incomes are exempt from sales taxes; and
(iv) Income via dinning facilities are exempt from sales taxes.

D. CICPA issue draft auditing rules
The Chinese Institute of Certified Public Accountants have issued draft revisions to the 10 of the 38 auditing rules. These draft amendments concern aspects such as terms and conditions of auditing services, and issues relating to evidence found under Rule No. 1311....

China News 0 Comment January 20, 2010, 3:22 pm

Hollywood in Beijing

On Tuesday, January 26 AmCham-China and METAN Development Group will be hosting an open discussion on the rise of branded entertainment in China. The event will be held from 4:00 to 7:00 PM at the Kerry Centre Hotel.

The event will cover an array of topics focusing on how the worlds of content and advertising are quickly converging together into one. Advertisers are becoming more involved in the creation and ownership of content as an array of opportunities for marketers and companies are created by the day. Larry Namer will be headlining the event as he discusses branded entertainment and the major shifts that are shaping China*s media industry today. The event welcomes everyone interested in the industry to come and join us discuss the trends of branded entertainment and how they will increasingly impact your marketing strategies in China.
...

China News 0 Comment January 15, 2010, 3:03 pm

Latest News Related To Mongolian Mining Sector

Mongolia has been experiencing a boom in its mining sector, which brings new opportunities as well as major challenges to future investors. 2009 brought two significant events in Mongolian mining sector.

Mongolia to Repeal Windfall Profits Tax
In August 2009, the Mongolian parliament (The Great Ikh Hural) voted to abolish the windfall profits tax on copper and gold effective 1 January 2010. The windfall profits tax, which was introduced in 2006 and imposed a 68% tax on the portion of the metal sales price (defined by reference to the London Metal Exchange) in excess of US $2600 per ton of copper and US $850 per ounce of gold.
A decision to repeal the windfall profits tax is surely to be welcomed by foreign mining companies doing business in Mongolia.

The government to sign for the Oyu Tolgoi project
Following the abolishment of the Windfall profits tax, the Mongolian government has signed a long-awaited investment agreement with Ivanhoe Mines Ltd. of Canada and Rio Tinto Ltd. of Australia concerning the development of the Oyu Tolgoi copper and gold project, which is located in southern part of Mongolia. According to the agreement, the production is expected to commence in 2013 with a five-year ramp up to full outfut.
The Oyu Tolgoi deposit is regarded as the world*s largest undeveloped gold and copper deposits, which is estimated to produce in excess of 450,000 tonnes of copper and 330,000 ounces of gold per year, with a 45 year mine life, and is one of the largest investments in Mongolia since the end of the Soviet era. Under the terms of the investment agreement and associated shareholders' agreement, the government of Mongolia will own 34% of Ivanhoe Mines Mongolia Inc LLC, the license holder of the Oyu Tolgoi project.
After 6 years in the works, it is believed the Oyu Tolgoi investment agreement will set a precedent for future foreign mining company investments in Mongolia and it is believed the project will increase Mongolia's GDP by 34% annually.
Mr. Edward Lehman, managing director of LEHMAN, LEE & XU Law Firm, commented on windfall profits tax that ※Mongolian authorities have made important change by repealing the windfall profits tax to grow future investments in its mining sector.§
Lehman, Lee & Xu Law Firm is regarded as one of largest commercial Law Firms in China maintaining offices in Beijing, Shanghai and Shenzhen. The mining team of the firm advices to its clients all sort of legal advices relating to obtaining the exploration and mining licenses and its procedural works.

To learn more about the Lehman, Lee & Xu, please visit to website: www.lehmanlaw.com
10-2 Liangmaqiao Diplomatic Compound, No. 22 Dongfang East Road, Chaoyang District
Beijing 100600 China
Tel: (86)(10)-8532 1919 Fax: (86)(10)-8532 1999
Email: mail@lehmanlaw.com
www.lehmanlaw.com...

China News 0 Comment January 11, 2010, 11:19 am

MOFCOM Promulgates Concentration Of Operators Assessment Rules

Qian Zhou, 2 December 2009

On 24 November 2009, the Ministry of Commerce (MOFCOM) has promulgated the "Concentration of Operators Assessment Rules", which will be effective on 1 January 2010.

According to the rules, the Ministry of Commerce acts as the designated authority of the anti-monopoly assessment of concentrations of operators and is responsible for accepting and processing applications for concentrations of operators. In the period between the commencement and conclusion of the assessment by the Ministry of Commerce, the applicants for a concentration of operators may submit a written request together with their reasons for withdrawing their application for the concentration of operators. Except for termination of the concentration in question, such withdrawal must be permitted by the Ministry of Commerce. Where the Ministry of Commerce decides not to conduct any further assessment or does not make a decision within the time limit, the operators in question may conduct the proposed concentration.
Lehman lawyer HaoJunbo remarks that due to the issue of the rules, the work of anti-monopoly will be more effective and more clearly to the relating companies. It*s a significant step in the area of anti-monopoly in China.
...

China News 0 Comment December 7, 2009, 3:32 pm

Good News for the Banks both in Taiwan District and Mainland

As the signed Memorandum of Understanding between the mainland China and Taiwan District (MOU) would become effective in 60 days, the representative offices for Taiwan-based banks are busy preparing files in assist of their head office in delivering applications to the Taiwan monetary regulatory institutions to be upgraded to branch offices.

And on the other hand, the Bank of China, the bank for 80% of the Taiwan related companies in mainland, announced its building of a branch office in Xinyi District of Taipei, which will focus on corporate finance.

The MOU, which is signed finally on November 16th2009, is really good news for the banks both in Taiwan and Mainland, who are now seeking for a larger market. The Taiwan Banks, who have a clear understanding of the Taiwan companies* credit conditions, would offer loans for the small and middle sized branches of Taiwan companies easier. And also, those banks are looking forward to the 1.9 billion Union Pay market.

MOU is a key for future cooperation between Taiwan District and Mainland in financial areas. In addition to the upgrading of the representative offices, the Taiwan banks are expecting a leap market-open of the mainland*s money market such as the areas of RMB business and direct bank investigation.

While a representative office can only do liaison, market research, consulting and other non-profit activities, a branch office can do profit-making business. And before the effective of the MOU, a Taiwan bank can not start a branch office in mainland until it fulfills the requirements of the Regulation for Foreign Banks. According to the article 9 and article 12 of the Regulation for Foreign Banks, a Taiwan Bank should operate a representative office in mainland for two years before it upgrading to a branch office. And to apply the license of operating RMB business, a bank should run its representative office for 3 years continually and profit for two consecutive years in accordance to the article 34 of the Regulation for Foreign Banks. With the help of MOU, it might be easier for the Taiwan banks to establish a branch office.

In the mind of an enterprising Taiwan banker, the money market of mainland would be attractive as the number of potential consumers is growing with the developing of the nation. But a Taiwan bank can only become a share holder of a mainland bank with the help of a third party now. The Taiwan Fubon Financial Holding Company, for example, bought 19.99% shares of the Xiamen Commercial Bank through its Hong Kong subsidiary in 2008 and became the first Taiwan finial institution that holds shares of a mainland bank. But as the procedure of buying shares through a third party is complex and time-consuming, Taiwan banks are looking for the possibility of direct investigation.

Although no permission of direct bank investigation included, MOU is still a symbol of starting cross-strait financial cooperation and a prelude of ECFA.

Lehman lawyers remark that the MOU is only a memorandum with no legal effect. Although the two parties of the MOU would obey it according to international practice, the MOU can not replace the laws of the two. For the future cross-strait cooperation in financial areas, the refinement of financial laws of both Taiwan District and Mainland is inevitable....

China News 0 Comment December 1, 2009, 3:12 pm

US-based GE and China's Ministry of Railways to cooperate on building high-speed railway in US

The US-based GE and China*s Ministry of Railways signed a memorandum on November 17th 2009. According to the memorandum, the two parties promised to cooperate in the competition for the US Uper-350km/h High-speed Railway Project.

The GE officer in China praised the railway technology of the corporations under the Ministry of Railways as the world*s most mature and most complete. And the officer is looking forward to the success of the cooperation.

Building a railway in the US by Chinese seems a long time ago story. It*s about 150 years ago when the Chinese immigrants moved to the US by ships across the ocean and worked in the building program of railway across the American continent. It is not a happy experience in the Chinese-American*s memory. But the future cooperating in the US High-speed Railway Project may be another story. It is because the technology is cherished now than the labor force of the Chinese.

China had built many high speed railways in recent years. To stimulate the economic, the Chinese government had set up a project which including building a high speed railway system that can make every main cities in China be reached within 8 hours from the capital Beijing. In building this huge railway system, the Ministry of Railways gained high quality technology of building railways. And that*s maybe the reason of the cooperation on November 27th2009.

To improve its situation of railway speed, the US government is now planning to launch a new and efficient high-speed passenger rail network in 100-600 mile corridors that connect communities across America. If the alleged GE and Ministry of Railways get their target successfully, a great number of job opportunities will be made for the citizens both in the US and China.

Lehman lawyers remark that in the coming cooperation, technology exporting may become part of it. In the memory of most Chinese, China is always a technology importing and products exporting country. But now China is exporting its technology to the US. Under the frame of WTO, intellectual property transactions are now a significant part of the world trade. And China is gaining benefit from this. But the intellectual property laws in China now are more focusing on the technology import than the export. Maybe it*s time for the government to make a plan for technology export legislature. ...

China News 0 Comment December 1, 2009, 3:09 pm

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