Under the Foreign Investment Catalogue Guide (Revision 2017), foreign investment in medical institutions is always highly restricted. In China, Medical institutions can only be established in the form of an equity joint venture or cooperative joint venture. Besides, foreign investors may face operational difficulties due to a strict and time-consuming approval procedure.

In August 2017, National Health and Family Planning Commission (“ NHFPC”) released 《关于深化“放管服”改革激发医疗领域投资活动的通知》(“the Circular”), with the aim to deepen the reform in the field of public healthcare. The Circular sets out a series of reform measures to encourage foreign investment in the medical industry, the key points are summarized below:

1. Application to set up an internal clinic in a nursing home is no longer required whereas approval was required under the previous policy.

Previously, foreign investors must apply to set up a practice with registration and license at the relevant health and family planning department under the Ministry of Civil Affairs, Health and Family Planning Commission on the Licensing for Medical Institutions, Functions of Elderly Care, which took effect in 2006. Now, the filing system under the Circular simplifies the set up process of clinics in nursing homes. Undoubtedly, the elderly in nursing homes will benefit from these changes.

2. Medical institutions are further classified under various subtypes including rehabilitation centers, nursing centers, central sterile supply department, health examination centers and small/medium-sized ophthalmology hospitals. Particular set-up standards and management practices are under the NHFPC.

3. The set up approval and practice registration for a Second-Class medical institution can be combined in one application and even further simplification of the approval procedure for a Third-Class hospital.

4. In order to strengthen investment in the healthcare sector, there is no restriction under the Circular of the ratio of equity or rights and interest of the Chinese party in a clinic, of which the ratio shall be no less than 30% according to Article 8 of Provisional Measures for the Administration of Medical Institutions.

The provisions in the Circular are all principle-based. Therefore, it is advisable that investors should pay close attention to the promulgation of the detailed implementation rules in the near future.

On 23 September 2017, SW partner Ms. Catherine Por attended “Roundtable: Children’s Commission in Hong Kong” at Regus Conference Centre.

The ROUNDTABLE was organized by The Hong Kong Committee on Children’s Rights and co-organized by Hong Kong Paediatric Foundation, Hong Kong Professional Teachers’ Union, The Hong Kong Council of Social Service, Hong Kong Bard Association and The Law Society of Hong Kong.

The objective of ROUNDTABLE was to pull together child-related professionals from multi sectors to share their views and build consensus on the Child Commission model for Hong Kong. The Roundtable was opened by The Chairperson of Hong Kong Committee on Children’s Rights Mrs. Priscilla Lui. Then, there was a discussion on “Mandate, Powers and Composition of the Children’s Commission” presented by Mr. Reidar Hjermann, former Norwegian Ombudsman for Children and Ms. Megan Mitchell, Australia’s first National Children’s Commissioner. Several experts from the children’s community, paediatric sector, education sector, welfare sector, human rights sector and legal sectors also shared their views with the attendees.

Mr. Reidar Hjermann, former Norwegian Ombudsman for Children

Ms. Megan Mitchell, Australia’s first National Children’s Commissioner

“I am delighted to participate in this meaningful event and I look forward to having a Children’s Commission in Hong Kong” Ms. Por said.

Please contact our Ms. Catherine Por for any enquiries or further information about this event.

The eleventh “Qianhai Talents Salon” & the fifth “Qianhai Legal Salon” was successfully held in Qianhai Shenzhen-Hong Kong Youth Innovation and Entrepreneur Hub on 20 September, 2017, hosted by Authority of Qianhai and Institute of Qianhai International Cooperation Legal Studies. Ms. Heidi Chui, our Partner and Head of Litigation and Dispute Resolution Department was invited to attend and shared with the guests.

The salon attended by professionals from the legal and other various sectors in Hong Kong and Shenzhen, including distinguished guests Dr. Dong Shi, Director of Hong Kong, Macao and Taiwan Legal Training Center of the Ministry of Justice; Dr. Tao Bo, American Professor of Peking University School of Transnational Law; Dr. Chen Meng, Lecture of Law School of Shenzhen University; Mr. Zheng Song, Senior Judge of Shenzhen Qianhai Cooperation Zone People’s Court; Ms. Song Li, Senior Prosecutor of People’s Procuratorate in Free Trade Zone, Qianhai & Shekou Area of Shenzhen; Dr. Chen Rui, Deputy Director of the FTA Department at Shenzhen Court of International Arbitration; Dr. Li Yi Hang, Researcher of Shenzhen Intellectual Property Protection Center; Mr. Zhong Quan Dang, Case Investigation Director of Qianhai Anti-Corruption Bureau; representative from the host organization, Dr. Cao Hai Lei, Commissioner of Legal and Social Construction Promotion Division; Ms. Yang Shan, Vice-Principal of Human Resources (Talent Affairs) Division; Mr. Luo Guo Dong, Deputy Director of Human Resources (Talent Affairs) Division; Mr. Dai Rui Rui, Deputy Director of Hong Kong Affairs Office (External Cooperation Office); Mr. Chen Fang, Vice President of Institute of Qianhai International Cooperation Legal Studies; Mr. Xie Yongyi, Chief Secretary of Institute of Qianhai International Cooperation Legal Studies; Assistant Lawyer of Sincere Qianhai Law Offices Ms. Aygerim, Ms. Zhou Dong Dong and Ms. Chen Hua Xin.

The theme of salon was “Legal Talents of One Belt One Road”. The salon was started by Dr. Cao Hai Lei introducing the legal and social construction in Qianhai. Ms. Yang Shan also shared the policy of talent and industry in Qianhai. Meanwhile, Mr. Zhong Quan Dang introduced the anti-corruption in Qianhai. After that, guests held a hot discussion on what are characteristics of legal talents and how to train and attract legal talents.

“It has been an honour for me to share ideas with the elites in Qianhai. Considering the rapid development, it is conceivable that Qianhai will play a vital role in the integration and economic exchanges between China and Hong Kong. I hope that Qianhai and Hong Kong will strengthen and deepen their legal service cooperation in the future. ” Ms. Chui said.

Please contract Ms. Heidi Chui for any inquiry or further information.

Green Card applicants will now face extra hurdle under Trump’s immigration policy.

Under President Trump’s ‘extreme vetting’ of immigrant policy, Green Card applicants will now be required to go through an interview in order to obtain permanent residence. Although Green Card applicants have always been required to be interviewed under the law, in the past, US Citizenship and Immigration Services (“USCIS”) has always waived such interview for broad categories applicants and focus its resources on higher-risk cases.

According to the USCI, the new policy is designed to combat on illegal immigration and put restrictions on who can enter the US. The new policy will come into effect on 1 October this year, and Green Cards applicants who based their applications under employment or for refugee and asylum will now be subject to a face to face interview. The administration explains in-person interviews will allow officers to verify the application and further discover new relevant information as well as assessing the credibility of the applicant. As a result, this would enhance and strengthen the integrity of the Nation’s immigration system.

It is unknown how many people will be affected by the new policy, but it is certain that it will inevitably add burdens on the system and Green Card applicants will have to overcome an extra hurdle in order to obtain permanent residence.

(Source: http://edition.cnn.com/2017/08/28/politics/trump-administration-green-cards-interviews/index.html)

Second Revised Draft for Review of Anti-Unfair Competition Law Issued For Public Comments

Recently, the Anti-Unfair Competition Law (Second Draft for Review) (“Revised Draft”) has been deliberated at the Session of the Standing Committee of the 12th National People’s Congress. The first draft for review had been issued for public comments in 2016.

Anti-unfair competition is always one of the most important issues for foreign enterprises in China. As a result, it is necessary to look into the Revised Draft even at this early stage.

The current effective statue relating to unfair competitive business is the Anti-Unfair Competition Law which was promulgated in 1993 (“1993 Version”). Over past 20 years, this legal loophole is made up, to a large extent, by the regulations issued by governmental authorities. Also, local governments have enacted related local ordinances relating to commercial bribery and illicit competition.

Compared with the 1993 Version, the Revised Draft provides further clarity regarding the definition and scope of a “market confusion act” (Article 6); commercial bribery” (Article 7);”trade secret” (Article 9); and “false or misleading propaganda” (Article 8).

Besides being more precise, the Revised Draft is keeping up with the trends of time. For example, the business operator shall be prohibited to promote any product with a lottery award with a top prize of more than 5000 RMB under the 1993 Version. According to the Revised Draft., the top prize is now 50,000 RMB.

A further example as to unfair competitive behaviour include acts performed through technical approaches on the Internet, the Revised Draft expressly states that the business operator making use of the Internet for business activities should be subject to all provisions in the Revised Draft.

The Legal Service Week of the Jiangsu International Chamber of Commerce has kicked off this week. Today, Ms. Heidi Chui, our Partner and Head of Litigation and Dispute Resolution Department, was invited to deliver a keynote speech on the topic: “Enforcement of the Mainland Judgments and Arbitral Awards in Hong Kong: Latest Cases and Developments”. Ms. Chui shared her experience and insights on the topic including practical strategies for cross-border litigation involving Hong Kong and Mainland China.

The Legal Service Week of Jiangsu International Chamber of Commerce has been a success. The presentation, which was presented on WeChat online platform, enabled all participants to exchange information and have real-time interaction with nearly 400 business leaders, scholars, lawyers and corporate counsels from all parts of Mainland China.

With China’s implementation of the “One Belt One Road” initiative, more Mainland companies are going global. At the same time, when doing cross border business, it is not uncommon that companies encounter debtors who attempt to dissipate their assets. Drawing lessons from the latest and hottest cases, plus her role as the case handler of landmark cases, Ms. Chui shared tips on how to tackle the challenges in cross-border litigations. Ms. Chui’s sharing was well received by the audience.

Ms. Chui is grateful for the invitation by the Jiangsu International Chamber of Commerce. It is a privilege to participate in the event as keynote speaker and to be able to share her insights with business leaders and the legal community of the Jiangsu province.

Please contract our Ms. Heidi Chui for any inquiry or further information.