Shake Shack and Starbucks were summoned by Shanghai for excessive data collection; Hong Kong rules that trustees of keepwell trusts can gain monetary compensation for contractual breaches; and European Union firms blame regulatory hurdles and limited market access for record low investment into China.
The U.S. government is debating whether to renew the U.S.-China Science and Technology Agreement; AstraZeneca plans to break up its business in China and list it separately in Hong Kong; the Italian government applies Golden Power regulations to limit the influence of China's Sinochem on tyremaker Pirelli
Sanctions are an increasing area of business risk for those doing business with Chinese enterprises. Jianwei (Jerry) Fang and Chuchen (Julie) Hou of Zhong Lun Law Firm analyze so-called sanction-proof clauses and how they could assist businesses in China seeking to negotiate their ongoing business relationships.
China's data security laws lead to increasing costs for firms; CFIUS clarifies rules regarding the "completion date" for filing and requests for information from foreign investors; fewer firms are choosing Hong Kong for international arbitration due to the National Security Law
British firms in China are concerned about the way China introduces new regulations and the vagueness of its laws; the European Union introduces additional product safety-related requirements for businesses selling products online to domestic consumers; Hong Kong seeks to allow offerors and their concert parties to vote in a shareholders' meeting regarding a firm's privatization.
Shipping firms are demanding their Chinese counterparts include break clauses in contracts over concerns about sanctions; Florida and Montana have introduced laws restricting Chinese nationals from owning land; and China is investing in training and research of blockchain technology despite its harsh cryptocurrency crackdown;.
Speculation is growing about the potential extent of U.S. and China decoupling, which brings increased costs and regulatory restrictions. Thinking creatively about supply chain solutions, including building overseas factories local to the end consumer, may mitigate those effects, write Scott Yu and Frank Jiang of Zhong Lun Law Firm
