Good News for Employees in Shanghai: Adjustment to the Standards of Certain Livelihood-related Security and Treatment

Shanghai has raised a series of livelihood-related security and treatment standards since April 1st, 2014, including the standards of minimum salary, unemployment insurance benefits, employment subsidies and employment injury insurance as well as disbursement ceiling of the overall fund of basic medical insurance for urban employees 1. Standards of Minimum Salary The minimum monthly salary…


New Amendment of Company Law of PRC Simplifies the Establishment of A Company in China

On December 28, 2013, the Standing Committee of National People’s Congress made a decision to amend the Company Law of PRC and the new amendment (the “Amendment”) will take effect on March 1, 2014. The Amendment abolishes several core requirements for the company establishment in China, including the paid-in capital, minimum of registered capital, installment…


Adjustment of Administrative Approval in China (Shanghai) Free Trade Trial Zone

On August 30, 2013, the Standing Committee of the National People’s Congress (“Standing Committee”) issued a decision in which the State Council is authorized to temporarily adjust certain rules on administrative approval in relevant laws within China (Shanghai) Free Trade Trial Zone (hereinafter the “Decision”), which will enter into effect on October 1, 2013. In…


New Regulations on Exit and Entry of Foreigners

On July 12, the State Council issued the PRC Administrative Regulation of Entry and Exit of Aliens (the “Administrative Regulation”) which took effect on September 1, 2013. The promulgation of the Administrative Regulation aims to specify the exit and entry rules in the PRC Exit-Entry Administrative Law (the “Exit-Entry Administrative Law”) which came into force…


China Simplifies Rules on Foreign Exchange Administration of Foreign Direct Investment

On May 10, 2013, State Administration of Foreign Exchange (“SAFE”) released the “Regulations on the Foreign Exchange Administration of Domestic Foreign Direct Investment” (hereinafter the “Regulations”), which came into effect on May 13, 2013. The promulgation of the Regulations aim to further simplify and clarify the foreign exchange administration of foreign direct investment (“FDI”) into…


The People’s Supreme Court Issued Interpretation IV on Certain Issues Regarding Applicable Laws in Labor Dispute Cases

The People’s Supreme Court (“Supreme Court”) released the Interpretation IV on Certain Issues regarding Applicable Laws in Labor Dispute Cases (hereinafter the “Interpretation”) on December 31, 2012, which came into effect on February 1, 2013. The Interpretation includes the following major issues: 1. Jurisdiction of Labor Dispute Litigation The court has the power to censor…