Legislation roundup: Banks' FX sales, personnel cutbacks and automobile parallel imports

Foreign exchange

State Administration of Foreign Exchange, Implementing Rules for the Measures for the Administration of the Handling of the Settlement and Sale of Foreign Exchange by Banks
国家外汇管理局银行办理结售汇业务管理办法实施细则

The Rules integrate the administration of market access for the spot settlement and sale of foreign exchange and the renminbi and foreign exchange derivative business of banks, and simplify the procedure for amendment of the record filing of the foreign exchange settlement and sale particulars of banks. Furthermore, the Rules change the assessment of the overall foreign exchange settlement and sale position of banks from on a daily basis to on a weekly basis and eliminate the policy of linking their overall foreign exchange settlement and sale position to their foreign exchange loan-to-deposit ratio.

See the digest for more details.

Further reading
Measures for the Administration of the Handling of the Settlement and Sale of Foreign Exchange by Banks
PRC Regulations for the Control of Foreign Exchange (2nd Revision)
Opening up foreign exchange


Employment

Ministry of Human Resources and Social Security, Provisions for Personnel Cutbacks by Enterprises (Draft for Comments)
人力资源社会保障部企业裁减人员规定 (征求意见稿）

The Draft specifies that if the number of persons whose employment contracts an enterprise is to terminate subsequent to reaching a consensus through consultations is at least 20, it is required to inform its labour union or all of its employees of the relevant details and report the proposed number of persons whose employment contracts are to be terminated to the human resources and social security authority 30 days in advance.

See the digest for more details

Further reading
PRC Employment Contract Law (Revised)
Implementing Regulations for the PRC Employment Contract Law
China question: How do I terminate an employment contract in China?


Free trade zone

Shanghai Municipality, Circular on Launching a Pilot Project for the Parallel Import of Motor Vehicles in the China (Shanghai) Pilot Free Trade Zone
上海市关于在中国（上海）自由贸易试验区开展平行进口汽车试点的通知

Enterprises that satisfy specified conditions including the following may apply to participate in the pilot project for the parallel import of motor vehicles:

(1) having engaged in the sale of motor vehicles for at least five years and having a motor vehicle sales turnover during the past financial year exceeding Rmb400 million; and
(2) having registered in the Zone a wholly-owned subsidiary or holding company with motor vehicle distribution qualifications to serve as the distributor in the pilot project for the parallel import of motor vehicles.

See the full translation.

Further reading
China's auto industry explained
Automotive Industry Development Policy (Revised)
Shanghai Municipality, Special Administrative Measures for Foreign Investment Access in the China (Shanghai) Pilot Free Trade Zone (Negative List) (Revised in 2014)
The FTZ: A window into the future
Not so free zone?