Legal News

Due to various reasons, there are quite a number of “zombie companies” that have had their business licenses revoked, been ordered to close down, or been dissolved, but have not been deregistered. In order to solve these problems, the “Company Law” (Revised in 2023) includes a mandatory deregistration clause in Article 241, though the provisions are relatively principled. On September 5, 2025, the State Administration for Market Regulation issued the “Implementation Measures for the Compulsory Deregistration of Company Registration” (hereinafter referred to as the “Implementation Measures”), which sets forth specific provisions on the detailed operational requirements, procedures, and supporting documents…

On July 31, 2025, the Supreme People’s Court issued the “Interpretation II of the Supreme People’s Court on Several Issues Concerning the Application of Law in the Trial of Labor Dispute Cases” (Fa Shi 〔2025〕 No. 12）， which will take effect on September 1, 2025. The following provisions of this Interpretation deserve attention: 1. Handling of labor relations in special circumstances Circumstance Provisions Subcontracting, sub-subcontracting, and affiliation If a party accepting the subcontract or sub-subcontract lacks legal business qualifications, or the affiliated party lacks legal business qualifications, the worker may claim that the contractor or the affiliated entity with legal…

The “Law on Sino-foreign Equity Joint Ventures” and its implementing regulations, which were abolished on January 1, 2020, stipulated that foreign-invested enterprises should withdraw reserve funds, staff incentive and welfare funds, and enterprise development funds in accordance with the law (hereinafter referred to as the “three funds”). On January 1, 2020, the “Foreign Investment Law” came into effect, stipulating that foreign-invested enterprises are also subject to the “Company Law”, but a five-year transition period was granted to foreign-invested enterprises established in accordance with the original laws (i.e., until December 31, 2024). According to the “Company Law”, foreign-invested enterprises are not…

Chinese government has adjusted its supervision of market entities from ex-ante regulation to ex-post regulation for more than a decade. During this process, the credit information publicized by enterprises has become a key indicator. Once publicized for non-compliant behaviors, enterprises’ transactions, financing, and other activities may be affected. For this reason, the government has also taken many measures to allow enterprises with non-serious or eliminated illegal and dishonest behaviors to rebuild their credit under certain conditions. On September 1, 2021, the SAMR issued the “Administrative Measures for Credit Repair in Market Supervision”, which stipulated the applicable scenarios, application processes, and…

Regarding the application of law in criminal cases of IP infringement, the Supreme People’s Court and the Supreme People’s Procuratorate (hereinafter referred to as the “Two Heads”) previously issued three judicial interpretations in 2004, 2007, and 2020. With the emergence of new, complex, and high-tech criminal acts involving IP infringement, the “Criminal Law Amendment (XI)” in 2021 significantly revised the provisions on crimes related to IP infringement. Against this backdrop, on January 19, 2023, the Two Heads released the “Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases of Intellectual Property Infringement (Draft for Comment)” for…

The “Frontier Health and Quarantine Law” was amended on June 28, 2024, and came into force on January 1, 2025. This law has made important amendments to the supervision items of frontier health and quarantine, illegal acts, and legal liabilities. Consequently, the General Administration of Customs organized the amendment of the “Criteria for the Discretion of Customs Administrative Penalties (II)” (Announcement No. 187 of the General Administration of Customs in 2023), and formulated the “Announcement of the General Administration of Customs on Amending the Criteria for the Discretion of Customs Administrative Penalties (II)” (Announcement No. 21 of the General Administration…

When calculating overtime pay, annual leave pay, salary for personal leave, and salary for sick leave, it will involve the calculation of working hours and the conversion of daily salary and hourly salary. Due to the revision of the “Measures for Holidays on National Festivals and Commemorative Days”, the number of legal holidays has been increased from the original 11 days to 13 days. Therefore, the calculation of working hours needs to be adjusted accordingly. Since the calculation of annual working days requires deducting legal holidays, the annual working days before the adjustment were 250 days, the quarterly working days…

In judicial practice, various problems such as difficulty in filing cases, unresolved cases, and arbitrary termination of enforcement have been criticized. On December 30, 2024, the Supreme People’s Court issued the “Guiding Opinions of the Supreme People’s Court on Promoting Quality Improvement, Efficiency Enhancement and Substantive Resolution of Contradictions and Disputes in Trial” (hereinafter referred to as the “Guiding Opinions”). There are 17 provisions in total. The following highlights are worth paying attention to by enterprises. Measures to improve the difficulty of filing cases The Guiding Opinions emphasize that in accordance with the requirements of the registration system for filing…

The laws and regulations related to safety production, such as the “Safety Production Law” and the “Law on the Prevention & Control of Occupational Diseases” and etc., clarify the discretionary scope of administrative penalties. On October 1, 2010, the “Regulations on the Application of Discretionary Administrative Penalties for Work Safety (Trial)” has further specified the principles regarding the application of the relevant laws. On November 1, 2023, the “Interim Provisions on the Discretion Benchmark for Administrative Penalty for Emergency Management” prescribes a relatively detailed discretion benchmark, and replaced the regulation as implemented since October 1, 2010. On November 1, 2024,…