Legislation roundup: Foreign Investment Law, technology transfer and MNCs
March 21, 2019 | BY
Susan MokThe official Foreign Investment Law addresses trade secret protection, mandatory infringement liability of the licensor is removed in technology transfer and procedures for the centralized management of cross-border funds by MNCs are streamlined.
FDI
PRC Foreign Investment Law
Compared to the draft, the adopted Law added a new article requiring administrative authorities and their working personnel to keep confidential the trade secrets of foreign investors and foreign-invested enterprises to which they are privy in the course of performing their duties, and may not disclose or illegally provide the same to third parties.
See the full translation.
Further reading
TMT
PRC Regulations for the Administration of Technology Import and Export (Revised)
The revised Regulations remove the third paragraph of Article 24, which specifies that if the use of the technology provided by the licensor by the licensee of a technology import contract in accordance with the contract infringes upon the lawful rights and interests of another party, the liability shall be borne by the licensor.
Further reading
Foreign Exchange
State Administration of Foreign Exchange, Provisions for the Centralized Operation and Management of Cross-border Funds by Multinational Corporations
The new Provisions simplify the administration of the registration of foreign debt and the offshore extension of loans, implementing one-off registration of foreign debt and loans extended offshore in connection with the centralized operation and management of cross-border funds. They permit multinational corporations, after record filing, to directly participate in a pilot reform program to facilitate the conversion of revenue on the capital account to make payments.
Further reading
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