In the News: Foreign Investment Law, RRR Cuts and IP Appeals Court
January 08, 2019 | BY
Jacelyn JohnsonA new draft law prohibits forced tech transfer; PBOC cuts bank reserve to release liquidity; and a new IP court tackles appeal cases.
Draft Foreign Investment Law Stipulates Foreign IP Protection
China's draft of a Foreign Investment Law, which was recently reviewed by the legislature and released for public comments, will ensure foreign investors enjoy equal treatment as their domestic counterparts, except in those areas specified in the negative list.
The final draft, which contains 39 articles, if comes into force, will prohibit local government from forcing foreign businesses to transfer technology or illegally restricting their market access. The draft law also stipulates that foreign businesses' intellectual property will be protected, and their profits can be freely transferred out of the country.
The law, if adopted, will replace three existing laws on Chinese-foreign equity joint ventures, contractual joint ventures and wholly foreign-owned enterprises, reported Xinhua.
More from CLP:
People's Bank of China To Cut $116 Billion in Required Reserve Ratio
The People's Bank of China will reduce the required reserve ratio (RRR) of banks by 1% in its first monetary easing policy of 2019. The move could give the economy a cash injection of reminbi 800 billion, $116 billion, adding liquidity into the banking system to help cope with the economic slowdown.
The RRR will be cut by 0.5% on January 15, and a further 0.5% on January 25. The current rate stands at 14.5% for large financial institutions, and 12.5% for smaller institutions.
Reuters reported that further RRR cuts are expected this year, as recent data shows a slowdown in the country's economy and increased pressure from trade disputes with the U.S.
More from CLP:
New Intellectual Property Appeals Court Opens in Beijing
The Supreme People's Court opened its Intellectual Property Appeals Court in Beijing, adopting a resolution on IP appeal procedures that was passed by the National People's Congress in October. The new IP court will be responsible for handling civil and administrative appeals, especially cases related to patents, as a step to effectively safeguard IP rights.
Litigants who disagree with rulings made by intermediate people's courts at the city or prefecture level, or by specialized IP courts, can appeal directly to national IP Appeals Court. The court, which has 30 judges selected from IP tribunals in 10 provinces across the country, is facilitated with courtrooms, a litigation service center, a technical investigation department, and a coordination office.
According to Luo Dongchuan, chief judge of the IP Appeals Court, the court aims to help prevent inconsistency in patent-related litigation procedures and improve the quality and efficiency of trials, as well as study difficult patent-related cases and create a favorable legal environment for technological innovation.
More from CLP:
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now