March 2009

It is my pleasure to find some colleagues interested in Chinese AML issues. I would like to discuss with you the functions of the regulatory institutions and the possible issues surrounding investigation and litigation.

Presently, the profile of MOFCOM (Ministry of Commerce) is clear, however that of NDRC (National Development and Reform Commission) and SAIC (State Administration for Industry and Commerce) have not come into being.
 Continue Reading China’s Anti-monopoly Law: Regulatory Institutions and Surrounding Issues

From the beginning of 2009, the year of the ox, the legislative framework of the Chinese Anti-monopoly Law (AML) has been accelerated. The acceleration is necessary to correct some of the major disadvantages of the AML. It is hoped the corrections will prevent the AML from being seen as abstract and hard to enforce.

Until now, we have heard little from regulatory organizations related to the enforcement of Chinese Anti-monopoly law including the; Ministry of Commerce (MOFCOM); State Administration for Industry and Commerce (SAIC) and the National Reform and Development Commission (SDPC). However, there appears to be a consensus amongst the organizations for a need to focus on the legislation progress, and to promulgate Guiding Opinions, Guidelines, Working Guidelines and Regulation and Administrative Procedures in an expedited fashion. Among these three organizations, it seems MOFCOM is moving far quicker than the others.
 Continue Reading Progressing the Notion of Concentration under China’s Anti-monopoly Law

Today D&O is a promising insurance product in China. My views are based on the newly revised Chinese Company Law and Securities Law of 2005. Section 3 of Article 113 of the 2005 Company Law stipulates "Directors shall be responsible for resolutions passed by the board of directors. If a resolution of the board violates the law, administrative regulations or the articles of association of the company and thus causes serious losses to the company, the directors who participated in the adoption of such a resolution shall be liable for compensation to the company. However, if a director is proved to have expressed his objection to such a resolution when it was put to the vote and his objection was recorded in the minutes of the meeting, he may be exempted from such liability".Continue Reading Potential Development for the Directors and Officers’ Liability Insurance in China

Directors and Officers’ Liability Insurance (D&O) is popular throughout Europe and North America and has been used for the sole benefit of directors and officers. Overall the foundation of the popularity is quite diverse. In my opinion, the most important is that such insurance will assist a company in attracting and retaining qualified directors and officers.
 Continue Reading Chinese Directors and Officers’ Liability Insurance in Dilemma in the Past

Environmental Impairment Liability Insurance (EIL insurance) is a new insurance product in China. Earlier in the history of the coverage, the insured facing an EIL loss often sought indemnification through their Commercial General Liability (CGL) policy. With the increase in EIL claims, both in frequency and severity, CGL writers, never intending the scope of their coverage to extend to EIL, quickly addressed the coverage question by excluding EIL from their CGL policies.Continue Reading Chinese Environmental Impairment Liability Insurance at a Slow Pace

At the end of February 2009, the legislative institution in Beijing promulgated the revised insurance law of People’s Republic of China. This new insurance law will be enforced in October 2009.

When the first insurance law was promulgated in 1995, the Chinese insurance market was largely monopolized, controlled by one state-owned insurer. In regard to public opinion, most Chinese considered insurance as something novel. Today, although far from mature, the Chinese insurance market is too large to neglect. For example, the market is composed of 100 insurance companies and over 2000 intermediate insurance companies, including domestic companies, subsidiaries of foreign companies and joint ventures.Continue Reading The New PRC Insurance Law – Improvement and Limitation

Today afternoon, just twenty minutes ago, Ministry of Commerce (MOFCOM) promulgated its decision regarding the concentration between The Coca-Cola Company and China Huiyuan Juice Group Limited, which prohibited this acquisition. This prohibition decision is the first prohibition decision issued by MOFCOM since the enforcement of Chinese Anti-monopoly Law (AML).
On September 3, 2008, The Coca-Cola Company announced its intention to make cash offers to purchase China Huiyuan Juice Group Limited; a Hong Kong listed company which owns the Huiyuan juice business throughout China.
 

Continue Reading The Prohibition Decision Regarding M&A between Coca-Cola and Huiyuan

The People’s Republic of China acceded to the New York Convention on April 22nd,1987,declaring it would reserve the rights of "reciprocity reservation" and "commercial reservation"
 

The "reciprocity reservation" means China will apply the Convention only for the recognition and enforcement of awards.
 Continue Reading China, International Arbitration and the New York Convention

The development and history of health insurance in China, it is not a simple story.For many years, the Chinese medical service has been controlled by state-owned hospitals; private hospitals and pharmacies could not compete with the public medical system. As a result, the majority of citizens received their medical service through the public system and the need for health insurance products was extremely limited. Even many years after the promulgation of the Chinese Insurance Law, China lacked formal health insurance products.

After 2000, health insurance became popularized in the Chinese insurance market. The popularity was due to the reform of the medical system; which required the majority of city residents and those in the countryside to afford medical costs by themselves. Hence a demand and need for health insurance arrived in short time. Continue Reading Health Insurance and Health Care in China

Recently it was reported in the financial news that the China Insurance Regulatory Commission of the State Council (CIRC) had allocated RMB200 billion to carry out a pilot investment program for funds held by insurance companies. The RMB200 billion has been equally invested across infrastructure projects and other equity investments.

Continue Reading Insurance Funds in China Expand toward Equity Investments