Corporate Governance

Revised Chinese Company Law requires mandatory worker representation in boardrooms; Shanghai's biomedical measures catch the most attention; and Merchants of Pinduoduo's international arm, Temu, struggle to sue the company due to its complex structure.

The amended PRC Company Law will have many, far-reaching effects, including motivating companies to reduce their registered capital in order to optimize capital utilization. Daisy Duan, Yingjie Yang and Cuishi Li of King & Wood Mallesons introduce the motivations and tax implications associated with one possible route: formal capital reductions

The U.S. has added additional Chinese companies to its Entity List and Unverified List; China's State Council has taken steps to encourage foreign venture capital in the tech sector; and Chinese electrolyzer manufacturers are "Europeanizing" their products in anticipation of an EU crackdown.

Alleged receiving of kickbacks by senior executives in China could subject Adidas to Chinese, as well as German and U.S. investigations; U.S. convertible bond market is used to raise funds by Chinese big tech amid IPO restrictions; and EU tariffs may lead to localization of Chinese EV production.

The shareholders of a listed company may not lend shares through refinancing or short sell shares of the company during the lockup period

Scott Yu, Rachel Li and Clair Xie of Zhong Lun Law Firm detail a significant and far-reaching update to China's key law governing both domestic- and foreign-invested companies

Na Wang and Yihui Liu, partners of Tian Yuan Law Firm, examine the Chinese securities regulator's key issues of concern with respect to overseas listings, and offer insights into the most recent regulatory trends

Limited liability companies are required to have their capital contributions paid in full in five years.

Clean energy and data tech updated to U.S. critical and emerging tech list; U.S. House select committee reports that five venture capital funds have invested in the rise of China's key technology companies; and China's stock exchanges release first-ever guidelines on ESG disclosure