Legislation roundup: Foreign banks, imported drugs, and Sino-foreign CJVs

March 23, 2017 | BY

Katherine Jo &clp articles &

The CBRC has allowed foreign-invested banks to invest in domestic financial institutions, the CFDA has proposed relaxing drug trial and registration requirements, and the withdrawal procedures for a foreign partner exiting a co-operative joint venture have been eased

Banking

General Office of the China Banking Regulatory Commission, Circular on Matters Relevant to Foreign-funded Banks Engaging in Certain Businesses

Provided that risks are controllable, a wholly foreign-owned bank or Sino-foreign equity joint venture bank may invest in domestic banking financial institutions in accordance with the law.

A wholly foreign-owned bank, Sino-foreign equity joint venture bank or branch of a foreign bank may coordinate with its parent group to provide comprehensive financial services for activities of its customers such as offshore bond offerings, listings, mergers and acquisitions, and financing.

Further reading

Healthcare

China Food and Drug Administration, Decision on Revising Matters Relevant to the Administration of the Registration of Imported Pharmaceuticals (Draft for Comments)

When conducting international multi-center clinical trials of pharmaceuticals in China, the requirement that such pharmaceuticals are to have been registered or entered into Phase II or Phase III trials abroad is abolished, except for vaccine-type pharmaceuticals. Once the international multi-center clinical trials are completed, an application for registration and placing the pharmaceutical on the market may be carried out directly.

See the digest for more details.

Further reading

FDI

PRC Implementing Rules for the Sino-foreign Co-operative Joint Venture Law (Revised)

The foreign partner of a Sino-foreign co-operative joint venture is no longer required to obtain the approval of the tax authority and have the joint venture pay enterprise income tax before withdrawing its investment.

See the digest for more details.

Further reading

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