Welcome clarity on online sales in China for foreign investors from an unexpected source but uncertainty remains for the VIE structure
With a netizenship of over 500 million users and potential for further increases considering its population and demographics, China’s online sales market has become too big for international businesses to ignore. Foreign investors have traditionally struggled with investments in China’s online industries due to China’s de facto policy restrictions (which are, in reality, more akin to prohibitions) on foreign investment in the telecoms industry.
In terms of online activities, internet information services (which include internet content providers (ICPs)) are classified as value-added telecoms services (VATS). In order to engage in VATS in China, foreign investors must set up a foreign-invested telecoms enterprise (a FITE) which must be in the form of a Sino-foreign equity joint venture, where the aggregate foreign investment does not exceed fifty percent (50%); and obtain a licence from the Ministry of Industry and Information Technology (MIIT) in the form of a VATS operating permit (a VATS Permit)…
If you are registered and logged in to the site, click on the link below to read the rest of the Hogan Lovells briefing. If not, please register or sign in with your details below.
News from Hogan Lovells
News from The Lawyer
Briefings from Hogan Lovells
The new Companies Ordinance (Cap. 622), which came into effect on 3 March 2014, is a substantial rewrite of Hong Kong companies law.
Employment News — 14 April 2014: the final straw — employer entitled to take strict view in light of previous warnings
Before his dismissal, the claimant in Disotto Food Ltd v Carlos Santos for misconduct he had been given three warnings about his conduct.
Analysis from The Lawyer
Beyond the headline infrastructure projects, UK construction work is still recovering from the clobbering it took during the slump
When a firm shouts loudly about a landmark merger, as SJ Berwin did when it joined forces with King & Wood Mallesons, departures are always likely to come under the spotlight.