Legislation roundup: FTZ measures, environmental lawsuits and preference share issuance

Free trade zone

State Council, Decision on Provisionally Adjusting the Implementation of the Special Administrative Measures for Access Specified in Relevant Administrative Regulations and State Council Approved Ministerial Level Rules and Regulations in the China (Shanghai) Pilot Free Trade Zone
国务院关于在中国（上海）自由贸易试验区内暂时调整实施有关行政法规和经国务院批准的部门规章规定的准入特别管理措施的决定

Twenty-seven special administrative measures for access are provisionally revised in the Zone. They include permitting foreign investors to establish wholly foreign-owned enterprises to engage in salt wholesaling, engage in the development and application of new technologies for oil exploration and development, including those for geophysical exploration, drilling, logging and downhole operation and engage in air transport sales agency business, as well as permitting foreign investors to establish wholly foreign-owned enterprises to invest in the research, development, design and manufacture of ancillary passenger service facilities and equipment for high-speed rail, dedicated passenger rail lines and commuter rail.

See the digest for more details.

Further reading
General Plan for the China (Shanghai) Pilot Free Trade Zone
Shanghai Municipality, Special Administrative Measures for Foreign Investment Access in the China (Shanghai) Pilot Free Trade Zone (Negative List) (Revised in 2014)
A window into the future
Not so free zone?


Environmental protection

Supreme People's Court, Interpretation on Several Issues Concerning the Application of the Law in the Trial of Environmental Civil Public Interest Lawsuits (Draft for Comments)
最高人民法院关于审理环境民事公益诉讼案件适用法律若干问题的解释 (征求意见稿)

The methods of bearing liability in environmental civil public interest lawsuits set forth in the Draft include the preventive method, restoration method and compensatory method. If a people's court renders a judgment ordering restoration to the original state, it may additionally determine the expenses for restoring the ecological environment, with such expenses including the expenses for formulating and implementing the restoration plan and the supervision expenses. In the compensatory method, the scope of losses that a polluter is required to compensate for includes the loss of the service functions while the ecological environment is being restored, emergency handling expenses, inspection and expert assessment expenses, reasonable lawyers' fees and other charges paid for the purposes of the suit.

See the digest for more details.

Further reading
Opinion: Time for the courts to go green
PRC Environmental Protection Law (Revised)
New environment law signals warning


Insurance

China Insurance Regulatory Commission, Circular on Matters Relevant to the Offering of Preference Shares by Insurance Companies (Draft for Comments)
中国保险监督管理委员会关于保险公司发行优先股有关事项的通知 (征求意见稿）

Only insurance companies that satisfy the certain conditions may offer preference shares, including:

1. having been in business for three years;

2. having audited net assets of at least Rmb1 billion as at the end of the previous year;