In the News: Traceability system for drug distribution, China's two-child policy, and foreign shareholders
August 28, 2018 | BY
Jacelyn JohnsonChina introduces a draft on regulating an information-based traceability system for drugs; family planning policies may be revised in proposed amendments to China's Civil Code, and new administrative measures for foreign shareholders in foreign-invested futures companies.
Information-based Traceability System for Drugs to be Regulated
China has jumped on the World Health Organization's bandwagon of implementing an information-based traceability regulation for drugs.
The State Drug Administration has recently drafted and issued the Guiding Opinions on Developing the Information-based Traceability System for Drugs. The “Draft for Comment” stipulates that drug marketing license holders shall provide downstream enterprises or medical institutions with relevant traceable information when selling drugs. Records and proof for traceable information of drugs shall be stored for at least five years after the expiration of the drugs.
This regulation, when in force, would establish and unify a standard information-based traceability system for drugs and promote the inter-connectivity of this traceable information. At a global level, this regulation would be a useful and efficient tool to fight against the fabrication and illegal distribution of drugs.
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Couples Might See an End to China's Two-child Policy
China's revision to its draft civil code may include an end to its controversial policies on family planning, ending the limit on the number of children Chinese couples are allowed by law.
China's infamous one-child policy, implemented in 1979 was relaxed in 2016, allowing couples in urban areas to have two children. Speculations are rife that this policy may be revised in the draft civil code that will be submitted during the annual parliamentary meeting in 2020.
The standing committee of the National People's Congress is in the midst of discussions to propose amendments especially in relation to family planning policies. Among others, a one-month cooling-off period before a divorce was also proposed. The cooling-off period would allow either party to withdraw their application before the divorce is finalized.
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New Measures for Foreign Shareholders
China Securities Regulatory Commission recently issued the Administrative Measures for Foreign-invested Futures Companies regulating the ambit of a foreign shareholder in a foreign-invested futures company who holds or controls more than 5 percent of the company's equities.
These administrative measures which take effect immediately, require a foreign shareholder to have gained a good reputation worldwide, with income and profits ranking and remaining at a high level within the last three-year period.
The regulation also notes that where a foreign shareholder controls more than 5 percent of the company's equities through investments, agreements or other arrangements, the control will be considered direct shareholding. Senior executives in such companies are also required to carry out their duties within China.
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