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News Review Jie
SHEN Economy On September 19, the U.S. Senate voted overwhelmingly (83 to 15) to give the permanent trade benefits to China. The bill was later signed into law by the U.S. President Bill Clinton. Foreign companies will soon be permitted to be included on China's domestic A-share listings. "The listing in China of qualified companies with foreign investment will help upgrade the structure of the stock market," said Zhou Xiaochuan, chairman of the China Securities Regulatory Commission, on October 24. [China Daily] Foreign investment laws are being amended to prepare China's entrance into the WTO. The State Council submitted a bill to the 18th session of the Standing Committee of the Ninth National People's Congress last week (10/23), calling for the revision of three laws regulating Sino-foreign joint ventures, Sino-foreign cooperative ventures and solely foreign-funded ventures in China. The new amendments to these laws will eliminate the existing restrictions on foreign investors in terms of foreign exchange balance, priority of material purchasing in China and selling products to overseas markets. [China Daily] The Chinese State Council has decided to raise the central government's share in stamp tax on securities trading, starting from October 1. Currently, there is a four-percent stamp tax on both sides of a securities trade. The central government's share of such a tax was increased from the then current level of eighty eight percent to ninety one percent, and will be incrementally increased to ninety seven percent in two years. Law As a measure of solidifying the justice system, China will improve the people's jury system. Draft regulations on improving the people's jury system authored by the Supreme People's Court, was presented to the 18th session of the Standing Committee of the Ninth National People's Congress on October 23. Chinese citizens graduated from senior high school or above who has some knowledge of law, upon the recommendation of his working unit and approval of local court, is subject to appointment as a juror by the standing committee of local people's congress, says the draft. According to the draft, the people's jurors are indispensable initial criminal trials, trial of civil cases involving personal rights, and civil, administrative, intellectual property and first-time maritime trials that are of considerable social impact. [Chinalawinfo.com citing Xinhua] The Marriage Law is under serious scrutiny in China. A new draft of the Chinese Marriage Law was being proposed to the 18th session of the Standing Committee of the Ninth National People's Congress to combat the increasing cases of bigamy, the so-called "Bao Er Nai," in China. Not only did the draft suggest criminal prosecution for those who committed bigamy, it also proposed favorable treatment for the "non-fault party," noting that such parties have rights to seek damages in cases of bigamy. [China Daily] Li Ji Zhou, the former vice-minister of Public Security, was charged in September for accepting more than 10 million yuan of bribery and could face death penalty if convicted. During his tenure, Li was responsible for border inspection and anti-smuggling. Allegedly, he was entangled in the Yuanhua smuggling scandal. The Supreme People's Court recently issued time limits for case hearing and judgment execution. Based on a report in September, a first hearing of a standard civil case is required to be concluded in six months. Any court personnel who causes unnecessary delays in a case may face reprimand. Human Rights Dr. Wen Hoo Lee, in solitary confinement for 278 days since winter of 1999, was finally released from prison in September. In December 1999, the U.S. Attorney's office in Albuquerque, N.M., had a grand jury indict Dr. Lee on 59 counts of mishandling nuclear secrets and espionage - with a potential penalty of life in prison. In September 1999, the prosecutors singed a plea agreement with Dr. Lee to let him go after he pleaded guilty to a single count that he had transferred restricted information to an unsecured computer in the National Lab. During the sentencing, U.S. Federal District Court Judge James A. Parker scolded the government for their handing of the case. Later, President Bill Clinton also echoed the Judge's criticism of the official's action in prosecuting the scientist. Politics and Society China will establish a national social security foundation. Such a measure is designed to be part of a social safety net to handle unemployment created by the on-going reform of China's state-owned enterprises. A board of the foundation that is affiliated with the State Council will be set up to manage the fund. Liu Zhongli, vice minister of the State Development and Planning Commission, was appointed Chairman of the Board. (Jie Shen is an associate at the New York law firm of Davis Polk & Wardwell.) |