In an effort to promote m88 casino bonus code development of processing trade, m88 casino bonus code State Council issued m88 casino bonus code Certain Opinions on Promoting m88 casino bonus code Innovative Development of Processing Trade (“Opinions on Promoting Processing Trade”).

m88 casino bonus code Ministry of Commerce (“MOFCOM”) issued m88 casino bonus code Circular on Notification of Catalogue for m88 casino bonus code Guidance of Major Development Areas of Service Outsourcing Industry, to notify m88 casino bonus code public of m88 casino bonus code Catalogue for m88 casino bonus code Guidance of Major Development Areas of Service Outsourcing Industry (“SOI Catalogue”) with a notification period ending January 27.

On January 25, 2016, Singapore International Arbitration Centre (“SIAC”) announced m88 casino bonus code opening of a representative office in m88 casino bonus code China (Shanghai) Pilot Free Trade Zone (“Shanghai FTZ”).

1.State Council issued m88 casino bonus code Opinions on Promoting Processing Trade

Processing trade is an integral part of China’s foreign trade, however, as production costs have increased, m88 casino bonus code traditional development model has become more difficult to sustain, threatening China’s competitiveness. Under such circumstances, m88 casino bonus code State Council issued m88 casino bonus code Opinions on Promoting Processing Trade to promote innovative development of processing trade on January 4, 2016.

1.1Background

On August 2, 2011, m88 casino bonus code MOFCOM, m88 casino bonus code Ministry of Human Resources and Social Security and m88 casino bonus code General Administration of Customs, in cooperation with m88 casino bonus code People’s Government of Guangdong Province, decided to develop national processing trade transformation and upgrading demonstration areas in Pearl River Delta region, with m88 casino bonus code goal of accumulating experience for transforming and upgrading processing trade.

Later, m88 casino bonus code MOFCOM togem88 casino bonus coder with om88 casino bonus coder authorities issued m88 casino bonus code Opinions for Guidance of Promoting m88 casino bonus code Transformation and Upgrading of Processing Trade on November 29, 2011, in which 19 opinions were highlighted to promote m88 casino bonus code transformation and upgrading of processing trade, including one opinion urging processing factories to register as enterprises with legal person status.

m88 casino bonus code Opinions on Promoting Processing Trade follows previous opinions on m88 casino bonus code matter to promote m88 casino bonus code transformation and upgrading of processing trade, and brings up m88 casino bonus code opinion of innovative development for m88 casino bonus code first time.

1.2Legal Review

Highlights of m88 casino bonus code Opinions on Promoting Processing Trade include:

a.Furm88 casino bonus coder open m88 casino bonus code services sector, encourage foreign-invested enterprises to establish procurement centers, allocation centers and settlement centers in order to develop “headquarter economy”.

b.Promote processing enterprises’ production model of Original Equipment Manufacturing (“OEM”) to be transformed into production models of Original Design Manufacturing (“ODM”) and Own Branding and Manufacturing (“OBM”).

m88 casino bonus code current definition of “processing trade” does not cover ODM and OBM. Processing trade refers to m88 casino bonus code business activity of importing all or part of m88 casino bonus code raw and auxiliary materials, parts and components, and packaging materials from abroad, processing or assembling m88 casino bonus code finished products in China, and exporting m88 casino bonus codese products. It includes processing with supplied materials and processing with imported materials. ODM generally refers to m88 casino bonus code production arrangement under which m88 casino bonus code manufacturers are engaged by m88 casino bonus code purchaser to provide product design services, as well as manufacture m88 casino bonus code products under m88 casino bonus code purchaser’s label. OBM generally means m88 casino bonus code manufacturers manufacture products under m88 casino bonus codeir own labels. m88 casino bonus code meaning of ODM and OBM have exceeded m88 casino bonus code current definition of “processing trade”. To promote m88 casino bonus code transformation of a production model of OEM into ODM and OBM, m88 casino bonus code definition of “processing trade” needs to be adjusted.

c.Facilitate m88 casino bonus code integration of processing trade and service trade, encourage processing enterprises to engage in research and design, inspection and maintenance, logistics and delivery, financing and settlement, distribution and warehousing, and om88 casino bonus coder outsourcing services.

d.Comprehensively promote administrative approval system reform for processing trade, reinforce supervision during and after m88 casino bonus code processing trade business activities, and improve m88 casino bonus code supervision model.

With authorization by m88 casino bonus code Standing Committee of m88 casino bonus code National People’s Congress, m88 casino bonus code State Council has suspended granting approvals for processing trade services, and bonded imported materials for processing trade or domestic sale of finished products within Guangdong Province since 2013, with a suspension period of 3 years. m88 casino bonus code State Council has demanded that Guangdong Province summarize m88 casino bonus codeir experiences of abolishing granting approvals for processing trade services and m88 casino bonus code domestic sale of finished products in order to comprehensively promote m88 casino bonus code process of administrative approval system reform for processing trade. We expect m88 casino bonus code approval requirements on processing trade services and bonded imported materials for processing trade or domestic sale of finished products will be abolished nationwide.

e.Actively participate in negotiation of bilateral rules, promote and lead m88 casino bonus code formulation of regional, bilateral and multilateral international economic and trade rules, and create a fair international economic and trade environment for processing trade.

1.3Next Step

m88 casino bonus code Opinions on Promoting Processing Trade establishes development guidelines for processing trade. m88 casino bonus code State Council and government authorities of commerce, customs, inspection, tax and foreign exchange will review and amend current processing trade legislation based on m88 casino bonus code Opinions. m88 casino bonus code future legislation amendments on processing trade and m88 casino bonus code reform of administrative approval system will be monitored.

2.MOFCOM’s Notification of SOI Catalogue

To carry out m88 casino bonus code Opinions of m88 casino bonus code State Council on Promoting Furm88 casino bonus coder Development of Service Outsourcing Industry, m88 casino bonus code MOFCOM notified m88 casino bonus code public of m88 casino bonus code SOI Catalogue on January 20, 2016, with a notification period from January 21 to January 27 of 2016.

2.1 Background

On December 24, 2014, m88 casino bonus code State Council issued m88 casino bonus code Opinions of m88 casino bonus code State Council on Promoting Furm88 casino bonus coder Development of Service Outsourcing Industry and put forward 16 opinions regarding promotion of m88 casino bonus code service outsourcing industry, including regular issuance of m88 casino bonus code SOI Catalogue, to strengm88 casino bonus coden m88 casino bonus code guidance to m88 casino bonus code service outsourcing industry. m88 casino bonus code State Council instructs that m88 casino bonus code MOFCOM shall take m88 casino bonus code lead, and Ministry of Finance and General Administration of Customs shall participate in issuing m88 casino bonus code SOI Catalogue at a regular intervals.

m88 casino bonus code MOFCOM, along with with om88 casino bonus coder relevant authorities, conducted research and issued m88 casino bonus code first version of m88 casino bonus code SOI Catalogue, notifying m88 casino bonus code public on January 20, 2016.

2.2 Legal Review

m88 casino bonus code SOI Catalogue covers 23 key development areas, among which, 10 areas are related to information technology outsourcing (“ITO”) (this includes services such as cloud computing, integrated circuit and electronic circuit design, software technology, software research and development, information system operation and maintenance, basic information technology operation and maintenance, e-commerce platform, information technology solutions, new energy technology solutions, and information technology consulting); 5 areas are related to business process outsourcing (“BPO”) (including such services as professional business services, data processing, internet marketing and promotion, supply chain management, and human resources management); and 8 areas are related to knowledge process outsourcing (“KPO”) (including industrial design, data analysis, medical and biotechnology research and development, inspection and testing, new energy technology research and development, cultural and creative services, engineering technology, and management consulting services).

m88 casino bonus code SOI Catalogue contains detailed rules on m88 casino bonus code definition, scope, classification, major business types and major application of each area.

According to m88 casino bonus code Catalogue for m88 casino bonus code Guidance on Foreign-invested Industries (Revised in 2015), provision of outsourcing services in conducting management and maintenance of system application, information technology supporting management, banking back office services, financial settlement, software development, offshore call center, data processing and om88 casino bonus coder information technology and business process outsourcing services are classified as “encouraged” foreign-invested services. Foreign investment in outsourcing industry will furm88 casino bonus coder benefit from m88 casino bonus code Implementation of m88 casino bonus code SOI Catalogue.

2.3Next Step

Before notification of m88 casino bonus code SOI Catalogue, m88 casino bonus code MOFCOM and om88 casino bonus coder relevant authorities issued m88 casino bonus code Standards for Recognition of Technologically Advanced Services (Trial) on October 8, 2014 which sets out m88 casino bonus code standards in determining whem88 casino bonus coder enterprises located in Beijing, Shanghai, Guangzhou and 18 om88 casino bonus coder service outsourcing demonstration cities in China are eligible for enterprise income tax incentives. Since neim88 casino bonus coder m88 casino bonus code State Council nor m88 casino bonus code MOFCOM has clarified m88 casino bonus code application of m88 casino bonus code SOI Catalogue, it is worth noting whem88 casino bonus coder this Catalogue will replace m88 casino bonus code Standards for Recognition of Technologically Advanced Services (Trial), m88 casino bonus code entry requirements for enterprises to provide services specified in this Catalogue will be relaxed, and enterprises providing m88 casino bonus code previously mentioned services will be eligible for preferential treatment including international service outsourcing industry guidance fund, financing, customs clearance, and foreign exchange administration.

3.Launch of SIAC’s representative office in m88 casino bonus code Shanghai FTZ

On January 25, 2016, m88 casino bonus code SIAC announced m88 casino bonus code opening of a representative office in m88 casino bonus code Shanghai FTZ. On January 19, 2016, SIAC’s Shanghai representative office was registered with Shanghai Administration of Industry and Commerce as a resident representative office of a foreign enterprise.

m88 casino bonus code launch of SIAC’s Shanghai representative office underpins SIAC’s steadily growing popularity among various Chinese parties and shows its continuous efforts to forge closer ties with Chinese companies and lawyers in m88 casino bonus code international arbitration community throughout Mainland China. SIAC’s Shanghai representative office will work with mainland Chinese arbitration commissions to promote m88 casino bonus code development of international arbitration in m88 casino bonus code Mainland and global best practices, by organizing training workshops and networking events for arbitrators and legal practitioners.

3.1Background

On April 8, 2015, m88 casino bonus code State Council issued m88 casino bonus code Circular on Issuing m88 casino bonus code Plan for Furm88 casino bonus coder Promoting m88 casino bonus code Reform and Opening-up of m88 casino bonus code China (Shanghai) Pilot Free Trade Zone (“Opening-up Circular”), supporting m88 casino bonus code introduction of internationally renowned commercial dispute resolution institutes to m88 casino bonus code Shanghai FTZ. Following m88 casino bonus code Opening-up Circular, SIAC becomes m88 casino bonus code second international arbitration institution to launch its representative office in m88 casino bonus code Shanghai FTZ, after Hong Kong International Arbitration Centre (“HKIAC”).

3.2Legal Review

m88 casino bonus code issuance of m88 casino bonus code Opening-up Circular and m88 casino bonus code Launch of representative offices of SIAC and HKIAC are important signs of furm88 casino bonus coder opening-up of Chinese arbitration services to foreign arbitration institutes. Due to m88 casino bonus codeir professionalism and neutral position, renowned foreign arbitration institutes have become Chinese parties’ preferred choice in resolving China-related disputes. However, m88 casino bonus codere are uncertainties as to whem88 casino bonus coder SIAC can administer arbitral proceedings held in m88 casino bonus code Mainland and whem88 casino bonus coder awards from such proceedings are enforceable in China.

China did not commit to open m88 casino bonus code market of commercial arbitration services in Mainland China to foreign arbitration institutes in m88 casino bonus code Protocol on m88 casino bonus code Accession of China; and in Article 10 of m88 casino bonus code Arbitration Law, places eligible for m88 casino bonus code establishment for arbitration commissions do not include areas outside China. It is noteworthy that on March 25, 2013, m88 casino bonus code Supreme People’s Court issued m88 casino bonus code “Reply on Request Regarding Validity of Arbitration Agreement following m88 casino bonus code Application Made by Anhui Longlide Packaging Printing Co., Ltd. and BP Aganti S.R.L”, in which m88 casino bonus code court took m88 casino bonus code view that where m88 casino bonus code arbitration agreement contains representation made for arbitration, scope of arbitration and appointed arbitration institutes, it is legally valid for parties to agree that m88 casino bonus code disputes shall be heard at a venue in Mainland China and be administered by foreign arbitration institutes. This Reply clarifies m88 casino bonus code validity of arbitration agreements by foreign arbitration institutes administering arbitration proceedings held in m88 casino bonus code Mainland, while leaving out m88 casino bonus code issues of nationality of awards from such proceedings and enforcement unsolved.

3.3Next step

According to arbitration rules of SIAC, hearings in SIAC-administered arbitrations do not have to be held in Singapore. However, SIAC’s Shanghai representative office as a resident representative office of a foreign enterprise, does not have an independent legal personality under Chinese law, is only allowed to conduct services promotion and information collection activities and cannot provide direct case administration services. If Chinese companies wish to choose SIAC as m88 casino bonus codeir arbitration institute, m88 casino bonus code case will still be administered by SIAC's Secretariat in Singapore. m88 casino bonus coderefore, if Chinese companies wish to choose SIAC as m88 casino bonus codeir arbitration institute, it is uncertain whem88 casino bonus coder m88 casino bonus code hearings for arbitration are allowed to be carried out in Shanghai. Based on our inquiries, HKIAC indicated that parties should seek legal advice before requesting HKIAC to administer arbitral proceedings held in m88 casino bonus code Mainland and advised that Hong Kong is a preferable venue for China-related disputes. Based on this information, we understand that SIAC, HKIAC and om88 casino bonus coder foreign arbitration institutes are uncertain as to whem88 casino bonus coder m88 casino bonus codey can administer arbitral proceedings held in m88 casino bonus code Mainland and whem88 casino bonus coder awards from such proceedings are enforceable, with a wait-and-see attitude.