In the News: China Joins Hague System; M&A Record Year; and Hong Kong Digital Yuan

China becomes the 94th country covered by the Hague System, a unified international system for registering industrial designs, which eliminates the need to file separate applications across different countries. China's accession will not be applied in Hong Kong or Macao "until otherwise notified," according to the WIPO announcement.

China's accession will benefit designers in China by allowing them to better protect and promote their designs overseas, according to the WIPO. Meanwhile, foreign designers will have easier access to the Chinese market as they will be able to use one application and one set of fees to file for protection for their designs in China and 93 other countries. The move does not come as a surprise as China has gradually laid the groundwork for joining the Hague System in recent years. The recently revised PRC Patent Law (中华人民共和国专利法) has brought the country's industrial design protection regime in line with global best practices, while the China National Intellectual Property Administration's 2021-2022 Outline for Building a Powerful Intellectual Property Country and the Annual Promotion Plan for the Implementation of the 14th Five- Year Plan (知识产权强国建设纲要和"十四五"规划实施年度推进计划) released in January sets out China's intent to join the Hague System. 

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International alignment: Official Reply on the Application of Provisions on the Passing off of Patents in the Patent Law and Alleged Patent Violations in the Advertising Law

Patent revision: The Fourth Amendment to the Patent Law

China, Hong Kong M&A sees record year in 2021

China and Hong Kong saw a record number of mergers and acquisitions in 2021 despite the impact of sweeping regulatory crackdowns and the ongoing pandemic. According to Mergermarket data released on Feb. 3, M&A in China and Hong Kong jumped almost 20% year-on-year to 2,381 deals, the most since records began in 2006.

The value of deals increased 13% to the second-highest ever: $545.2 billion. The report attributed the M&A boom to a record increase in private equity buyouts as well as consolidation across various major industries including technology, media and telecommunications.

It would seem that the Chinese government's aggressive crackdowns on numerous industries including real estate, technology and private education have not had as big an impact on M&A as they have on other markets. The biggest deal recorded last year was the $111.5 billion merger between Sichuan Transportation Investment Group and Sichuan Railway Investment Group, which was also the biggest deal globally.

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Sanctions terms: How Competing US-China Sanctions are Changing M&A Deals

Compliance risk: Protecting Personal Information in M&A Transactions

Hong Kong to pilot digital yuan in retail shops 

Hong Kong will soon launch a pilot for the use of the digital yuan across the city. On Feb. 7, the CEO of the Hong Kong Monetary Authority Eddie Yue Wai-man told local legislators at a financial affairs panel meeting that the pilot will see the "e-CNY" be used in local shops and restaurants.