Local Laws
Shandong Province
Shandong Province’s Interim Measures for Controlling and Managing Funds for Key Domestic Demand Increase Construction Projects (Lu Zheng Ban Fa [2009] No.3, the General Office of Shandong Provincial Government promulgated and implemented on January 6, 2009)
The General Office of Shandong Provincial Government recently promulgated Shandong Province’s Interim Measures for Controlling and Managing Funds for Key Domestic Demand Increase Construction Projects （the “Construction Management Measures”）. These Measures confirmed that Shandong Province intended on adopting the credit financing method for construction projects, and that it is establishing controlling funds for key construction projects to ensure that project funds are legally obtained and safely provided.
Shandong Province will try to promote long term loans on favorable terms for key construction projects within the province. The province plans to get banks government credit assistance by using the principles of equality, voluntariness and mutual benefit. These loans will be offered at the government’s most favorable interest rate, they will be for a minimum of eight (8) years in length, and interest payments will be paid annually. The funds will mainly be used on projects that will improve Shandong citizen’s livelihoods, promote “new socialist countryside construction,” infrastructure projects, projects that will increase energy efficiency and environmental protection, projects that promote technological innovation and transformation, and projects that will increase mergers and acquisitions.
The province plans on establishing joint meeting management system to control the funds promoted by the Construction Management Measures, this system appoint a competent provincial government leader to be the general convener. He or she will be directly responsible for the utilization and management of the construction funds. The province will also authorize LuXin Investment Holding Group Ltd., Shandong Hi-Speed Group Co., Ltd., and Shandong State-owned Assets Investment Holdings Ltd. to be the financing corporations in charge of the funds. These corporations will jointly assume control and management of the funds, and Shandong Province will give them the duty to manage the funds in a nonprofit manner, the duty to operate in light of the State’s laws and regulations, the duty to provide uniform financing, and the duty to make sure the funds are reclaimed and reimbursed.
KW’s Comments: The Construction Management Measures will help reinforce the Shandong Provincial Government’s ability to maintain economic growth by increasing the province’s demand for construction funds. This increased demand will promote Shandong Province’s steady development throughout the economic downturn.
Zhejiang Province
1. Zhejiang Province’s Administrative Measures to Protect Copyright (Zhejiang Provincial Government, Decree No.256, November 19, 2008)
These measures are Zhejiang Province’s first rules governing copyright within the province. The Zhejiang Province’s Administrative Measures to Protect Copyright (hereinafter “Copyright Measures”) has five chapters, which can be further subdivided into twenty nine clauses. The first chapter provides a clear-cut definition that allows “copyright-related industries” like the press and publication industries, radio, film, television, literature and arts, cultural entertainment, advertising design, arts and crafts, computer software and information networks to protect their work under the concept of copyright. Moreover, the first chapter of the Copyright Measures clarifies the role the administrative departments for copyright at, and above, the county level will play in managing copyright rights.
The second chapter focuses on the rules to promote the principles, scope and procedures to register a work. This chapter also establishes the system to get a copyright contract registered if it involves foreign elements. Furthermore, it provides a system for filing copyright pledge contracts for the record. Finally, this chapter establishes a system to obtain a copyright owner’s authorization for printing, reproducing, and making and disseminating their copyrighted works.
The Copyright Measures’ section on Administrative Inspection and Legal Liability establishes where the administrative departments for copyright at, and above, the county level derive their power to investigate and punish the copyright rights violators, and this section also establishes specific penalties for specific acts that violate a copyright.
KW’s Comments: Zhejiang Province’s promulgation of the Copyright Measures will help standardize the way copyrights are managed within the province. The more copyright and copyright related rights and interests are reinforced and protected the more cultural innovation will be encouraged, and the more copyright related industries will develop and flourish in Zhejiang Province. Moreover, the Copyright Measures will also contribute to perfecting Zhejiang Province’s intellectual property rights legal system, which means that patent, trademark and copyright rights will be better protected within the province.
2. Zhejiang Province’s Opinions on the Province Environmental Protection System Continuing to Do a Good to Serve and Support Enterprise Development （Zhejiang Provincial Environmental Protection Bureau, Decree No.72 (2008）, December 30, 2008）
Zhejiang Province promulgated these Opinions to help enterprises cope with the impact of the current international financial crisis, and promote Zhejiang Province’s continued steady and rapid economic development. The province hopes to use the Opinions to improve the province’s Environmental Protection System’s ability to serve and support enterprise development in six ways:
1.The provincial government makes it clear that its priority is supporting and serving economic development. It does this by stating that it wants to make sure that sufficient attention is being placed on the need to continue to do a good job in serving and supporting enterprise development in Zhejiang Province.
2.Zhejiang Province also wants to serve and support economic development by focusing on increasing the efficiency of the administrative examination and approval system used to help enterprise development. This focus will mainly include setting up a mechanism to allow the Environmental Protection Department to intervene at various times in a “key project” within the province. The Environmental Protection Department is going to be more strict in approving construction projects, and it will severally limit the number of projects its approves that will create a lot of pollution, will consume a large amount of energy, and will provide very little social improvement. The Environmental Protection Department will also focus on shortening the time it takes for it to approve “green projects.” As part of this focus it will open a green channel to exam and approve State Council and Zhejiang Province “Ten Measures” supported projects. Zhejiang “Ten Measures” projects are focused on expanding domestic demand, and are projects that will seek national funding to support them. Finally, the Environmental Protection Department will try to perfect its joint construction project environmental evaluation examination and approval system. The provincial government will attempt to do this by further expanding the Environmental Protection Department’s power at county level. It will now be able to approve environmental evaluation documents at a county level, and it will be able to set up a system to assign a “special person” on “key projects” responsibility for the environmental impact of that project, and the department will regularly inspect the project’s progress towards completion and its environmental protection status.
3.The province also intends on serving and supporting economic development by increasing the level of service the provincial agencies will provide, and improving law enforcement in the province. This priority mainly refers to a goal of more effectively improving law enforcement in the province by imposing strict penalties on business that violate the law by releasing chemicals into the environment, and in turn, are creating a competitive advantage for themselves over enterprises that are in compliance with law. Also the province hopes that its focus on strictly enforcing the law will help avoid massive environmental pollution accidents. It plans on reinforcing the relevant administrative departments’ communication and coordination, and it will adopt a central joint law enforcement priority to help avoid multiple authorities attempting to enforce the law in different ways. Finally, the provincial government wants to push the administrative agencies to have a “service attitude” toward environmental protection, and to have the inspection departments do quality work by providing good service after they take administrative action. It wants the agencies to help the punished enterprise understand why it had to be punished so that it will take stock of its actions and consciously avoid violating the law again.
4.Further, the province will serve and support economic development by seeking funds to help enterprises treat their waste to decrease pollution. The province intends on promoting this agenda by providing a subsidy for waste treatment and drainage reduction projects. As part of this subsidy plan, local governments will enact policies that mandate specific annual drainage reduction requirements for “key industries,” these industries will be prioritized for environmental protection subsidies to remove any burdens that the enterprises will face as part of the increased drainage reduction requirements.
5.Next, the province will serve and support economic development by increasing its support research and development for new science and technology to upgrade environmental protection.
6.Finally, Zhejiang will serve and support economic development by transforming its working style, and ensuring that these environmental protection measures are implemented.
KW’s Comments: The Opinions are of advantage to enhance Zhejiang Provincial environment protection system’s law enforcement level, increase the approval efficiency and perfect the approval mechanisms including the project environment evaluation system. In addition, each measure contained in the Opinions in respect of improvement and support of enterprises’ environmental actions is easily to be implemented and will help enterprises to actively deal with the current financial crisis.
3. Zhejiang Province’s Administration for Industry and Commerce’s Opinions on Vigorously Promoting the Rapid and Sound Development of an Online Market (Zhejiang Provincial Administration for Industry and Commerce, Decree No. 41[2008], December 22, 2008)
Zhejiang Provincial Administration for Industry and Commerce used these Opinions to announce its plan to promote the sound development of an online market in major three ways, which can be divided into twelve specific moves that will promote online transactions.
The Opinions promote encouraging vigorously developing a variety of models for an online market by promoting a “professional” online transaction market. The province would like to prompt industries to setup websites that will improve the service that traditional industries provide, and encourage enterprises and individuals to conduct online transactions. They also establish that there will be provisions to increase support for an online market. The province wants to improve structure and standards used for online transactions, and it wants to speed up construction on an online credit system.
The Opinions recommend that college graduates, laid-off or other unemployed persons take advantage of the flexibility, convenience and low cost opportunities that an online transaction business provides and rely on major online trading platforms, such as, Taobao.com to conduct online transactions mainly in a “C2C” pattern. By encouraging individuals to purchase products online through individual small business owners via the online marketplace, online transactions will increase, and in turn, some of the pressure to find work for the unemployed can be alleviated.
KW’s Comments: The “Net economy” is a combination of the conceptual innovation, technological innovation, and institutional innovation, and it reflects a potentiality vital opportunity for Zhejiang to push and turn innovation into economic growth. The Opinions will play an important role in making sure that the online economy plays a prominent role alleviating some of the job losses that Zhejiang is facing, promoting the sustained and sound development of private small and medium-sized enterprises in the province.
Shaanxi Province
Shanxi Province’s Interim Measures for Administering Directional Startup Investment Funds (Shan Zheng Ban Fa, No. 139 [2008], implemented December 31, 2008)
Shaanxi Province’s Interim Measures for Administering Directional Startup Investment Funds (hereinafter “Interim Startup Measures”) were formulated based on the situation in Shanxi Province and in accordance with Interim Measures for Administering Startup Investment Enterprises (National Development and Reform Commission and Nine (9) Other Ministries or Commissions Decree No.39 [2005]) and the State Council General Office’s Circular on Forwarding the National Development and Reform Commission and Other Department’s Guiding Opinions on Standardizing the Establishment and Operation of Directional Startup Investment Funds (Guo Ban Fa, No. 116 [2008]) (hereinafter “No. 116 Guiding Opinions”).
The Interim Startup Measures implement the No.116 Guiding Opinions in the three following ways:
First, the Interim Startup Measures specify directional startup funds will be distributed based on the standards set up in the No.116 Guiding Opinions. For example:
(i)If the funds are to be used as “co-investment,” then the directional startup funds must be less than 20% of the startup enterprise’s paid-in capital. Furthermore, this 20% generally can be no larger than 20 million RMB as an actual cash amount. Moreover, co-investment with the directional startup funds cannot be the first majority shareholder in the enterprise. Finally, in general, the co-investment cannot last more than 7 years.
(ii)The matching investment generally cannot be more than 50% of the startup investment enterprise’s actual total investment amount. Moreover, matching investment in a single enterprise cannot be more than 5 million RMB in principle.
Second, the Interim Startup Measures establish the application and approval procedures for directional startup funds. Specifically, the Measures establish that there are six procedural steps to receive directional funds: public request, application, acceptance of the application, review, publication, and decision.
Third, the Interim Startup Measures set up several conditions that must be met before a startup investment enterprise can be established through co-investment directional funds, or matching investment directional funds.
KW’s Comments: The Interim Startup Measures implement the No.116 Guiding Opinions in a way that will feasibly allow directional funds to be used to support startup investment enterprises in Shaanxi Province. The Interim Startup Measures also provide a system of guaranteed “seed-funding” for Shaanxi startup enterprises, by giving businesses directional funding support in their initial development stages. And this will help to attract venture capitals to make investment in Shaanxi.
Sichuan Province
The Sichuan Commerce Bureau’s Notice on the Delegation of “Filing Foreign Trade Operators Registrations” (Chuan Shang Mao, No. 132 [2008], Sichuan Commerce Bureau, December 17, 2008)
The Ministry of Commerce’s Reply on Entrusting Thirty Nine (39) Local Commerce Departments to be the Authorities in Charge of Filing Foreign Trade Operators Registrations (Shang Mao Han, No. 52 [2008]) establishes that the Ministry of Commerce has formally delegated its power to register foreign trade operators to the Local Commerce Bureaus in 20 Sichuan cities and autonomous offices (hereinafter “Authorized Local Commerce Bureaus”).
Beginning on January 1st, 2009, the twenty Authorized Local Commerce Bureaus will be able to start “pre-operations” for filing foreign trade operators registrations. This “pre-operation” will last from January 1st until March 31st. During this period the Sichuan Provincial Commerce Bureau and the Authorized Local Commerce Bureaus will both issue registration certificates as part of a “dual system” of registration. After March 31st the foreign trade operators filing registration certificates will only be issued by the Authorized Local Commerce Bureaus within each local bureau’s given administrative region (this region shall be decided in accordance with the certificates issued by Administration of Industry and Commerce).
KW’s Comments: The Ministry of Commerce’s delegation of its power to foreign trade operators filing registrations will provide Sichuan Province’s cities and autonomous offices and enterprises a more convenient way to handle their foreign trade filing registrations. Furthermore, this delegation will allow the Commerce Ministry and enterprises to increase their efficiency by reducing the cost of seeking the foreign trade filing registrations.
Chongqing
Chongqing’s Regulations to Promote its Opening-up Chongqing People’s Congress Standing Committee promulgated the first local statue to promote opening-up all over the country, by issuing Chongqing’s Regulations Promoting its Opening-up (the “Opening-up Regulations”) on January 1st, 2009:
The Opening-up Regulations mainly focus on allowing Chongqing to take itself to the rest of the world. Yet, they do consider the fact that it will be a combination of bringing Chongqing out to the world, and bringing the world into Chongqing that will create the overall success of the opening-up. Opening-up priority will be given economic development opportunities. The Regulations will attempt to coordinate with Chongqing’s community to attract and centralize cutting edge companies inside and outside of China, and will promote Chongqing’s economic development. Attracting these kinds of companies will help increase Chongqing’s citizens’ productivity open up the Chinese inland “highlands” for even more development. Moreover, the Opening-up Regulations want to encourage individuals, legal persons, and any other organizations to innovate and carve out a niche to develop as part of Chongqing’s opening-up. Acquiring this kind of a niche will help ensure that individuals, legal persons, and other organizations will have their rights to protect, and will be able to enjoy the fruits of Chongqing’s opening-up. Thus, the Opening-up Regulations establish that the people and enterprises of Chongqing may complain to local officials if they believe they are being hindered from being able to participate in Chongqing’s opening-up.
The Opening-up Regulations also address how the local Chongqing government will evaluate the effectiveness of its opening-up policy by including the opening-up policy as part of the overall governmental assessment system. The Regulations stipulate that the city and the district governments should include opening-up in the medium and long-term, and also annual national economic and social development programs. In turn, opening-up work will be included on each department and the lower governmental working level’s objective assessment system. Furthermore, the Regulations establish that the city, district and county governments and their related departments should investigate, and learn from, other province’s opening-up policy experiences, and use those experiences as reference for Chongqing’s opening-up policy evaluation system. In addition, the city, district, and county government’s working reports to the Chongqing People’s Congress and its Standing Committee will need to include an introduction to each of their actions to implement the opening-up work.
The Opening-up Regulations want to encourage experimentation so that Chongqing can be innovative in how it opens up. The Regulations recognize that opening-up will not be completely successful in every aspect, and they understand that mistakes will be made, but they encourage the local government to be conscious of potential mistakes and take steps to insure that all mistakes are remedied to increase the opening-up’s overall success. The Regulations also allow the city government to experiment in opening-up by reforming the following governmental functions: administrative management, public service, market supervision, land transfer, finance, and social administration. Specifically, Opening-up Regulations establish that the New North District is authorized to an early experiment of land, finance, tax, and economic management reform to increase the area’s ability to open up. The Regulations stipulate that in case the state organs, non-profit pubic institutions, and local non-governmental corporations when conducting their opening up work make some mistakes, or fail to achieve the anticipated result or result in certain losses, relevant person’s administrative liabilities can be alleviated or relived as long as three conditions are met. These three conditions include: the promulgation of working measures and implementation procedures are in compliance with relevant regulations, the individual and his/her working unit hasn’t made any profit therefrom, and no damage of the public interest has been made by malicious colluding with others.
The Opening-up Regulations also establish that the local government will be responsible if it fails to fulfill its promises in investment attraction. The Regulations stipulate that the city, district, and county governments and their related departments may enter written contracts with investors regarding material matters promised to the investors by them in accordance with investment attraction polices. The government and relevant departments will assume liabilities if their promises to the investors fail to be fulfilled. When investors are trying to invest and they are having issues successfully implementing their plan in Chongqing they may ask the city, district, or county government department or institution responsible for coordinating their investment for assistance. And when an investor has an issue or requests assistance the responsible department or institution should reply to their request within 10 working days. If the government departments or institutions can’t coordinate such issues or requests, they must apply the people’s government for coordination and respond the investors within 10 working days.
The Regulations also establish that the system to seek administrative permission for opening-up must be published, and set up in a way that is convenient for parties to inquire about. All the administrative permission procedures should be published on the relevant department’s website or an admissions window or at the admissions office. The results of administrative approvals shall be easily available for people to inquire about.
The procedures for approval shall be simplified and collective approval, parallel approval shall be implemented. Moreover, the administrative working procedures shall be carried out within the specified time, otherwise, relevant officials shall be asked to assume liabilities.
The Opening-up Regulations also attempt to standardize the law enforcement to prevent too large right of discretion. The Regulations stipulate that to avoid too large right of discretion, the municipal government will organize the law enforcement authorities to standardize and specify the administrative punishment provided in the laws and regulations. Moreover, the Regulations emphasize that the law’s execution should be focused on education and not on punishment. They state that when entities commit minor legal violations, which do not cause harmful damage to others, and the violation occurred as part of an attempt to open Chongqing up education and administrative punishment should be levied on the offender. Finally, the responsible administrative department should standardize administrative examination in a bid to avoid random enforcement of the law.
KW’s Comments: As these regulations are implemented, Chongqing’s opening-up and prosperity will increase, and as the city solidifies its opening-up administrative permission procedure, more investment will enter the city.
Guangdong Province
1. The Shenzhen Stock Exchange (the “SZSE”) Launches the Comprehensive Agreement Transactions Platform
The SZSE has launched the Comprehensive Agreement Transaction Platform since January 12, 2009 (hereinafter “Agreement Platform”), this new Agreement Platform has replaced the existing block trading system. The following trading modes of transactions can use the Agreement Platform to conduct transactions: (1) block trading for equity securities, including A and B shares, and funds, (2) block trading for bonds, including national debts, enterprise bonds, corporate bonds, detachable convertible corporate bonds，convertible corporate bonds and pledge-type repurchase of bonds etc., (3) agreed trade of rights of proceeds from special asset management plans (hereinafter “Agreed Trade in Special Asset Management Plans”), and (4) any other transactions that are within the provisions of the SZSE. Users of the original block trading system shall automatically become users of the Agreement Platform, they are able to conduct block trading business for securities and business of the Agreed Trade in Special Asset Management Plans by means of the Agreement Platform, while the original block trading system shall no longer deal with the relevant transactions. SZSE would temporarily not charge commission fees for block trading for bonds for one year since January 12, 2009 (excluding regulatory fees).
KW’s Comments: The Agreement Platform of SZSE has combined the experiences of overseas mature markets and the characteristics of different trading and settlement models for stock exchange and inter-bank markets, it will become the second largest system for centralized trading market of stock exchange. Some products which are not suitable for direct trading by ordinary investors through bidding system and with high risks products as well as some products with weak liquidity and probably inconsecutive market price will be traded through this trading platform.
2.The “Measures for Filing of Independent Directors” after the amendment of the Shenzhen Stock Exchange (the “SZSE”)
The SZSE has promulgated the “Measures for Filing of Independent Directors” (revised version) on December 31, 2008. Based on the original filing measures ,these revised filing measures have explicitly required that independent directors shall not fall into the circumstances as provided in the “Statement of Nominators for Independent Directors” and the “Statement of Candidates for Independent Directors”, nor other circumstances which affect the Independent Directors’ integrity, diligent and independent performance of their duties. Candidates for Independent directors shall follow the provisions of the “Comments on Guidance” and the “Guidance of Work Training” to participate in qualification training and follow-up trainings which are being organized by stock exchanges and to obtain qualification certificates for independent directors. In addition, the SZSE has shortened the period for examining the qualification and independence of independent directors from 15 trading days upon receipt of the materials from candidates for independent directors to 5 trading days. The period for public notices of the materials of candidates for independent directors on the website of SZSE has also been shortened from 5 working days upon disclosures of relevant materials by listed companies to 3 working days.
KW’s Comments: The amendment of the “Measures for Filing of Independent Directors” by the SZSE has enhanced the qualification requirement of independent directors, it has simultaneously shortened the period for examining and approving their qualifications and independence by the SZSE. It has ensured the legal interests of investors and creditors, while helping to enhance the efficiency of stock market.
3.The Shenzhen Stock Exchange Promulgates the “Guidelines for Format of Information Disclosures for Listed Companies in the Shenzhen Stock Exchange”
The SZSE has promulgated the No.1 to No.17 of the “Guidelines for Format of Information Disclosures for Listed Companies in the Shenzhen Stock Exchange” on December 31, 2008, which involved announcement types of material matters for listed companies such as purchase and sale of assets, connected transactions, dividends distribution and capital increase by using distributable profits, notice for holding a shareholders’ meeting, resolution of a shareholders’ meeting, external investment (including by entrustment), guarantee, change of usage of raised funds, abnormal fluctuations of stock, clarification announcement, material litigation and arbitration, debt restructuring, change of stock abbreviation, prediction of business performance and its amendment, briefing of business performance and its amendment, material contracts etc. The No. 1 to No. 14 of the “Guidelines for Format of Temporary Report for Listed Companies” which had promulgated on March, 2002 and the format of disclosures which were scattered attaching to the other relevant regulations shall no longer be enforced.
KW’s Comments: Since the SZSE has issued the first batch of guidelines for format of announcements in 2002, the stock market has experienced fundamental changes both in external environment and internal system, which have led to an urgent demand of revision and improvement of guidelines for formatting announcements. The newly issued guideline is being formulated in accordance with the “Securities Law”, the “Administrative Measures on the Information Disclosure of Listed Companies” and the newly revised “Rules of the Shenzhen Stock Exchange for the Listing of Stocks”, which aims to regulate the information disclosure activities of listed companies and improve the quality of information disclosures by listed companies.
Labor Laws
Rules for Handling Labor and Personnel Dispute Arbitration Cases （The Ministry of Human Resources and Social Security Order No. 2, passed at the 15th the Executive Meeting of Ministry of Human Resources and Social Security on December 17th, 2008, and implemented January 1st, 2009）
These Rules replace both the former Ministry of Labor’s 1993 Rules for Handling Labor Dispute Arbitration Cases and the former Ministry of Personnel’s 1999 Rules for Handling Personnel Dispute Cases.
The Rules clarify that when more than ten (10) employees have a common claim to be resolved they may appoint three to five (3 to 5) representatives to attend the labor dispute arbitration proceedings on the entire groups behalf. Also the Rules establish that when there are more than ten (10) employees with a common claim, or an employment dispute arises out of a collective contract, the arbitration committee may choose to accept and try the case as a “high priority.”
Furthermore, the Rules establish that the litigating parties must make any objections they have to the arbitration panel’s jurisdiction in writing before the defense period expires. If a party fails to raise a jurisdiction objection in a timely manner, the arbitration proceeding will not be affected.
Moreover, the Rules clarify the procedure for seeking the dismissal of a case. They establish that a party should submit his or her application for dismissal at the beginning of the proceeding, but he or she may also submit it at anytime before the end of the court debate, as long as, the party did not know the reason for the dismissal before the trial began. However, if a party seeks a dismissal after the end of the court debate, the arbitration proceeding will not be affected.
The Rules also explain that the arbitration committee shall establish a case file review system. This review system will allow the litigating parties and their representatives to review and copy all of the non-confidential information relevant to the proceeding. This new rule alters the old Rules for Handling Labor Dispute Arbitration Cases, which prevented litigating parties, organizations, or individuals that have an interest in a case from reviewing the case’s files.
The changes to the Rules have greatly shortened the time an arbitration committee may use to decide whether it wants to accept a case. The old Rules for Handling Labor Dispute Arbitration Cases allowed the arbitration committee or other arbitration agency make its decision whether or not it will accept a case within 7 days of receiving a case’s application for arbitration. If the arbitration committee or other arbitration agency decides not to accept a case then the old rules required them to make and deliver a Notice of Refusal to the applicant within 7 days of making its decision. While if an agency decided to accept a case it must provide an applicant written notice within 7 days of making its decision. However, the new Rules now require the arbitration committee to provide an applicant a Notice of Acceptance or Notice of Refusal within 5 days of receiving an application for arbitration. Moreover, the changes to the Rules shorten the respondent’s time to reply to 10 days from the former 15 days.
The Rules now require that the parties to arbitration be given written notice of the time and place of a hearing five (5) days before a scheduled hearing. Furthermore, the updates to the Rules allow a party, with a proper reason, to apply to postpone a hearing, as long as, that party makes his or her request three (3) days before the hearing.
The updated Rules allow a claimant to increase or amend his or her claims before the deadline for submitting evidences. However, if a claimant fails to increase or amend his or her claims before this deadline, the new or amended claims will be treated as a new separate case.
Finally, the new Rules also establish that if the content of the Arbitration Committee’s award includes some parts that are considered final and other parts that are considered not final, the decisions will be considered final for the parts it establishes are final, but changes will still be allowed for the parts of the award that are considered not final. When the Arbitration Committee makes this kind of a decision it shall inform the parties about their rights to seek remedy for the non-final portions of the decision.
KW’s Comments：The new Rules adopt provisions in the Labor Dispute Mediation and Arbitration Law, Civil Procedure Law, and the rules of civil evidence. The changes to the Rules also clarify many issues that were ambiguous in the practice. Furthermore, the new Rules shorten the time that the Arbitration Committee and the parties have to respond with an arbitration. These changes continue to reflect the PRC’s preference for quick solutions to labor and personnel disputes.