China Legal Trends 2016 Q2

Published on 2016-07-27

In this issue you will read about: the taxation policy on cross-border e-commerce; the current state of law in China in relation to data protection and cyber security; the “Judicial Interpretation” related to corruption and bribery; and more.

Welcome to the 2016 Q2 issue of the British Chamber of Commerce Shanghai quarterly China Legal Trends update. A number of the Chamber’s member law firms have provided us with recent essential insights and updates on a variety of important legal developments within China.

This issue highlights the taxation policy on cross-border e-commerce (Circular 18). The biggest change is the introduction of positive lists, which prohibit anything not on the lists and replaces the previous negative list system.

Also addressed is the current state of law in China in relation to data protection and cyber security, as well as future developments in this area. Companies should ensure they comply with Chinese specific regulations and continually audit practices to confirm compliance. 

Another aspect concerns the “Judicial Interpretation” related to corruption and bribery, which provides further clarification in this area. The monetary threshold for prosecutions has been increased and the legal interpretation of what constitutes a bribe is extended in a number of areas, thereby having potential implications for the compliance policies of companies operating in China.

The final development involves provisions on internet search services and mobile apps. These provisions impose new obligations on search results control, verification of identity, and data processing. 

We sincerely thank Baker & McKenzie LLP, Clyde & Co LLP, O’Melveny and Myers LLP and Mayer Brown JSM for their contributions to this issue, and their continued support of the Chamber. Our thanks also go to those Legal Focus Group members and Chamber staff who have been working hard on this issue.

Best Regards,

Janet Qu

Chairwoman, Legal Focus Group, The British Chamber of Commerce Shanghai

The full update can be downloaded via the below link.

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