On August 1, the Chinese Anti-monopoly Law (AML) was enforceable and four plaintiffs filed an anti-monopoly case in the No1 Intermediate People’s Court of Beijing. Some members of the media and laymen cheered it as the first anti-monopoly private litigation in China.

The plaintiffs were four anti-counterfeiting companies who sued the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), an industry regulator. The original four plaintiffs were later joined by four other anti-counterfeiting Chinese companies from across the country . Claiming AQSIQ violated the AML, due to its efforts to popularize an online network.
 

Continue Reading Private Litigation – Unresolved Problems of China’s Anti-Monopoly Law

The settlement of Marine insurance disputes in China is unique and different from that in other countries in respect of jurisdiction, application of law and the mode of resolution.

The Application of Law in Marine Insurance Disputes

In respect of the application of substantive law. Marine insurance disputes mainly refer to The Insurance Law of the PRC and The Maritime Code of the PRC. The first is a general law and the second is a special law within the Chinese legal system. In other words, The Maritime Code of the PRC shall prevail if both laws are applied. The Contract Law of the PRC and The General Principles of Civil Law of the PRC may also be applied if neither the Insurance or Maritime law can be applied. The Maritime Code of the PRC and The Insurance Law of the PRC came into effect in 1993 and 1995 respectively. Both laws were created by reference to the relevant laws and legislation of foreign countries. In particular the relevant marine and insurance provisions of Britain, the USA and Germany, played a dominant role.
 

Continue Reading A Brief Introduction to the Settlement of Marine Insurance Disputes in China

Marine insurance also referred to as waterborne insurance is an agreement where one party undertakes the payment of premium and the other undertakes to indemnify the assured to the extent of all losses, damages and costs that arise from maritime peril and contingency; unless specified otherwise in the agreement. Marine insurance has become one of the most important forms of insurance and is one of the oldest forms of insurance policy which continues to develop from its original form. The long history, and its specialty focus make Marine insurance a relatively independent insurance system.

 

Continue Reading Marine Insurance in China—-a very brief glance

Due to its dramatically quick development and tremendous prospects, the Chinese insurance market has attracted a huge flow of foreign investment, most of which focuses within insurance companies.

According to the Chinese commitment to WTO, the insurance industry is the first financial field to be opened to foreign investment. At the present time, as far as the establishment of a foreign-funded insurance company is concerned, some foreign investors are still puzzled by conundrums.
 

In the regulation of administration of foreign-funded insurance company, Article 8 stipulates the establishment requirements: "A foreign insurance company that applies for establishing a foreign-funded insurance company shall meet the following conditions:
 

Continue Reading The Conundrums of Foreign Investment in Chinese Insurance Companies

During the course of the draft of Insurance Law of PRC, the presence of an "Incontestability" clause has come under fierce debate.Last night, I received a call from a CIRC (China Insurance Regulatory Committee) official, who asked my opinion on the highly debated clause.

 

Continue Reading The Incontestability Clause in China and the Draft Insurance Law of the PRC

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