China’s Company Chop System and Risks to Foreign Investors

Since June 2020, a fight over the control of the China subsidiary of ARM, a leading semiconductor company, has centered around the possession of the company chop. ARM was reported to have fired its head of China, Allen Wu, who is still registered as the legal representative of ARM China. With control over the company chop and business licenses, Wu would seem to have a powerful weapon to use as a bargaining chip with ARM’s shareholders outside of China, even though there is no doubt he will eventually be removed from his position. How can physical possession of the company chop cause so much trouble for ARM’s shareholders?
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SPC Issues Guiding Opinions on Handling Civil Disputes Involving COVID-19

On 20 April 2020, the Supreme People’s Court (SPC, China’s highest court) released the Guiding Opinions on the Proper Handling of Civil Cases Involving the Novel Coronavirus Outbreak in Accordance with the Law. Published soon after a batch of rulings issues on 24 March and 2 April, the Guiding Opinions emphasize a preference to have disputes resolved through mediation, but also reviews the conditions of the application of force majeure when handling civil cases involving the novel corona virus and the disease it causes, COVID-19.
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Shanghai Takes New Measures to Stabilize and Attract Foreign Investment in 2020

During the Teleconference on Shanghai Commercial Work of 1 March 2020, the Shanghai Municipal Government introduced measures on controlling the COVID-19 corona virus but concurrently supporting companies and developing the economy. By making foreign investment one of the focal points, Shanghai continues to be a fervent supporter of foreign business in China. Measures to Support […]
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COVID-19 and Force Majeure in China

Just when Chinese people were ready to celebrate the Spring Festival of the year 2020, the outbreak of novel coronavirus (later named COVID-19) spoiled the party. The outbreak has been a global concern that has greatly affected both inbound and outbound business in China. The virus, and especially the policies and measures adopted to prevent […]
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