“This notice is sending a very strong signal that the Chinese central government is taking significant steps to loosen the long-held restrictions on foreign investment in China real estate, and that the government is moving to a regulatory environment where foreign investment in real estate is increasingly treated like foreign investment in other sectors. There are, however, questions yet to be answered. For instance, the notice doesn’t expressly abolish the prohibition that FIREEs are not allowed to incur “foreign debt”. Given the signal sent by this notice, we expect that it is only a matter of time before the Chinese central government (in particular SAFE) issues additional rules expressly allowing FIREEs to incur such foreign debt as the regulation of foreign investment in real estate is treated more like foreign investment in other industries.”

“A year-long protection campaign by the SAIC of a specific trademark is virtually unheard of in China, and it demonstrates just how much importance China is placing on the success of the Shanghai Disney Theme Park and its resolve to crack down on counterfeit goods and other IPR infringements. Such IPR protection has been implemented not only for the sake of foreign companies doing business in the country. China also realizes that as it attempts to develop its home grown creative industries, such as music and film production, it must strengthen IPR protection to allow its own industries to flourish. The Disney campaign follows another anti-counterfeit campaign launched by the SAIC in June this year on counterfeits and trademark-infringing products sold on e-commerce platforms. However, IPR infringement is an entrenched problem in China and it remains to be seen whether the Disney campaign will be a success.”

“As part of the Government’s efforts to simplify and digitise administrative procedures, these new rules make reservation of company names more efficient and streamlined. In particular, applicants no longer need to make the initial submission in person, while the SAIC and its local counterparts will internally coordinate on the decision-making process. The special arrangement for foreign investors will ensure a smooth transition to fully digital name reservations.”

“The decision is in line with the broader transformation of China’s economy, and we expect future opening in regard to the technology services, financial service, commerce, education and health care sectors, which together with the changes contained in the decision should boost foreign investment in these sectors in Beijing in the near term.”

“Beijing’s swift action is a strong signal of the Central Government’s drive to implement the unified real estate registration system across China. The way Beijing chose to implement the new system will likely influence other cities. We expect to see more cities following the suit shortly.”

“The matter appears to be the first published case in a separate decision where a fine was imposed for failing to comply with an antitrust investigation in China, and confirms the enforcement powers of China’s antitrust agencies. It also shows the need for companies to comply with China’s regulatory requirements, antitrust in particular, in order to avoid exposure to negative financial or reputational consequences.”