China Law Podcast China Law Podcast

In June, China enacted the PRC Anti-Foreign Sanctions Law (中华人民共和国反外国制裁法) following an expedited drafting process, the country’s first national statute specifically combating foreign sanctions against Chinese companies and individuals. The law states that companies in China may not implement or enforce foreign sanctions against Chinese entities, and that Chinese entities can file lawsuits against those companies that do. Lester Ross and Kenneth Zhou discuss the primary concerns among multinationals about the new anti-sanctions law, and the potential impact on contractual clauses and global compliance strategies.

Lester Ross is the partner-in-charge at global law firm Wilmer Cutler Pickering Hale and Dorr's Beijing office. He is a former vice-chair of the board of governors, former general counsel and current chair of the policy committee and of the insurance forum of the American Chamber of Commerce in China.

Kenneth Zhou is a partner at WilmerHale's Beijing office. He is a former general counsel and former member of the board of governors of AmCham China.

The China Law Podcast is a weekly podcast exploring China’s business and financial sectors from a legal perspective. Get in touch at vchow@alm.com with any feedback and ideas for future episodes.

Episode Outline

00:58 Anti-sanctions law's relationship with Unreliable Entity List, "blocking statute"
07:07 Ability of foreign companies to choose their business
11:29 What constitutes "discriminatory restrictive measures"
15:03 China subsidiaries of global companies and compliance challenges
18:56 Possibility that contractual clauses will be flagged as sanctions implementation
24:46 Potential risk exposure of law firms

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In May, BlackRock CCB Wealth Management became the second foreign-controlled wealth management joint-venture to be granted an operating license by the Chinese government. The JV is majority-owned by the world's biggest asset manager BlackRock with 50.1% stake, while China Construction Bank and Singapore state investor Temasek own 40% and 9.9% respectively. Josh Zhang discusses the development of China’s nascent bank wealth management industry, the key provisions of newly introduced wealth management sales and distribution rules, and the Greater Bay Area Wealth Connect scheme.

Josh Zhang is managing director and head of internal control at BlackRock CCB Wealth Management based in Shanghai.

Find the full transcript of the interview here.

The China Law Podcast is a weekly podcast exploring China’s business and financial sectors from a legal perspective. Get in touch at vchow@alm.com with any feedback and ideas for future episodes.

Episode Outline

03:33 Advantages of bank wealth management companies compared to other types
06:19 Permitted investment scope of Greater Bay Area Wealth Management Connect
08:40 Enhanced due diligence requirements on product distributors
11:33 Senior management responsibilities and termination requirements

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China has launched a national carbon emissions trading system for the first time, with trading set to begin imminently. Multinationals can expect to be significantly affected by the compliance requirements laid out by the new market, while also standing to profit from the new investment opportunities it presents. Nancy Sun and Andrew Westgate discuss what carbon trading is, how it works, how China’s emissions trading scheme (ETS) compares with other ETSs around the world, and what the opportunities and challenges are for MNCs in China.

Find the full in-depth analysis article on this topic here.

Nancy Sun is a senior partner at Dentons in Shanghai, where she advises major foreign and Chinese energy companies on environmental and general corporate matters.

Andrew Westgate is an associate at Latham and Watkins in New York who advises major energy and industrial companies on a range of environmental matters, including environmental credits and carbon neutrality.

The China Law Podcast is a weekly podcast exploring China’s business and financial sectors from a legal perspective. Get in touch at vchow@alm.com with any feedback and ideas for future episodes.

Episode Outline

01:24 How China's national ETS works
02:43 Comparison with EU and California ETSs
07:23 MNC concerns over carbon trading enforcement
08:22 Foreign investor participation and challenges
10:06 Transportation not covered under national ETS
13:10 Scrutiny of supply chains and price modeling
18:00 Voluntary carbon offsets in China
20:17 Standardizing different pilot scheme rules
21:07 EU carbon leakage tax proposal

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Human genetic resources such as organs, cells, and tissue are crucial to the clinical trials that pharmaceutical multinationals conduct in order to get their products registered for use in China, whether it be a new drug or medical device. China's HGR regime was recently elevated to the level of a national statute for the first time when the PRC Biosecurity Law came into effect in April. Tina Wu discusses how China's HGR regulator has enforced strict HGR rules since 2019, including intellectual property co-ownership between foreign and Chinese parties and HGR exports.

Read the in-depth article on China's HGR regime here, featuring insights from other experienced China life sciences lawyers.

Tina Wu is a life sciences partner at Haiwen & Partners in Shanghai with more than ten years experience working on life sciences and healthcare matters, including IP licensing and regulatory approvals.

The China Law Podcast is a weekly podcast exploring China’s business and financial sectors from a legal perspective. Get in touch at vchow@alm.com with any feedback and ideas for future episodes.

Episode Outline

01:16 Reduction in R&D activities in China
06:12 Ambiguous data filing requirements
08:43 Sensitive data categories
10:57 Regulatory compromise for time-sensitive data
12:30 Provision of HGR to foreign-invested entities
13:41 Listing data recipients in master application
15:58 Approval process for HGR materials export
20:15 Multi-center clinical trials
21:06 Patent co-ownership impact on R&D
23:43 Negotiating IP use and transfer

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With more than 10,000 restaurants in over 1,500 cities in China, Yum China is the biggest restaurant company in China, owning some of the most popular fast-food brands in the country including KFC and Pizza Hut. In 2020, it became the first restaurant company and the first non-TMT company to have a secondary listing in Hong Kong.

Joseph Chan, Yum China’s Shanghai-based chief legal officer, discusses how the Hong Kong secondary listing was secured, navigating stricter compliance and disclosure requirements as a U.S. domestic issuer, and more. Read the full transcript of the interview here.

The China Law Podcast is a weekly podcast exploring China’s business and financial sectors from a legal perspective. Get in touch at vchow@alm.com with any feedback and ideas for future episodes.

Episode Outline

01:06 CLO's main responsibilities and regulatory areas
04:29 Experience in private practice and relevance today
06:30 Challenges of secondary listing as a U.S. domestic issuer
09:56 Convincing HKEX that Yum China is an "innovative" company
12:55 Legal compliance work in a fast-paced environment
15:08 Importance of cybersecurity and data privacy
16:48 COVID-19 lessons

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In-House Insights: Legal Compliance for China’s Biggest Restaurant Company

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National security has driven reforms to foreign direct investment regimes around the world, including the United States, Australia, the EU and China. The U.K. is the latest major economy to join in on the act with its new National Security and Investment Bill, which will for the first time in the country’s history introduce a standalone foreign investment regime similar to the U.S. CFIUS review process. Roger Barron and Garrett Hayes discuss the ins and outs of the new regime: its scope and review timeline, the impact on M&A auctions and completed transactions, and recommendations for Chinese investors.

Roger Barron is Paul Hastings' global vice chair for mergers and acquisitions based in London, who recently provided expert evidence to the U.K. parliament on the proposed National Security and Investment Bill. Garrett Hayes is a corporate partner at Paul Hastings based in London who has considerable experience in cross-border M&A, especially in the telecoms industry.

The China Law Podcast is a weekly podcast exploring China’s business and financial sectors from a legal perspective. Get in touch at vchow@alm.com with any feedback and ideas for future episodes.

Episode Outline

01:29 Levels of Chinese investment in the U.K.
02:38 Current investment regime under Enterprise Act of 2002
03:34 Mandatory notification requirement for 17 sensitive sectors
08:05 Potential disadvantage in M&A auctions
10:28 Key considerations for voluntary filing
13:42 Comparisons with CFIUS
20:06 Information-gathering to sway sellers and regulators

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