As an unfortunate consequence of the deterioration of the US-China relationship, more and more Chinese companies are divesting and exiting their US-based operations. In order to execute a smooth exit from US operations, Chinese companies should retain a good US financial adviser. Careful consideration should also be given to how the asset is packaged, preparing stand-alone audited financial statements, and optimizing the business for post-closing operations. Chinese companies should be prepared to use US law and engage in longer negotiations as a result. CFIUS-related requirements and risks should be understood during the early stages of the deal.
On 7 October 2022, the US Commerce Department’s Bureau of Industry and Security issued the much anticipated rules aimed at restricting China’s ability to obtain advanced computing chips, develop and maintain supercomputers, and manufacture advanced semiconductors. In addition to formalizing the licensing requirements included in the recent BIS “is informed” letters issued to certain US companies on related matters, the Rule imposes a wide range of new and enhanced restrictions targeting China’s advanced computing and semiconductor sectors.
Amidst the increased focus globally on respecting and protecting human rights, in a recent seminar organized in Thailand, the special advisor to the Prime Minister of Japan responsible for international human rights matters announced the adoption of the Guidelines on Respect for Human Rights in Responsible Supply Chains by the Government of Japan.
On 6 October 2022, the Health Sciences Authority issued an update on products found and reported by overseas regulators to contain potent ingredients that are prohibited and briefly explained the possible side effects of the potent ingredients. The update aims to increase awareness among the local population on the safety issues of such products overseas. To better protect local consumers from harmful products that can be found overseas and online, the HSA not only conducts local surveillance, but monitors overseas enforcement actions, and updates consumers on products that may pose a threat to public health.
The Hong Kong Securities and Futures Commission’s “Manager in Charge” regime, which aims to heighten senior management accountability within licensed corporations, came into effect in 2017. In a recent disciplinary action, the SFC has reprimanded and fined a licensed corporation HKD 1.75 million and banned its former MIC for Compliance for two months. The Subject LC is licensed under the Hong Kong Securities and Futures Ordinance to carry on Type 9 (Asset management) regulated activity.
After much buzz and anticipation in the Thai energy industry, the Energy Regulatory Commission has finally published (i) the official Regulations for Purchasing Electricity from Renewable Energy Sources under a Feed-in-Tariff Scheme between 2022-2030 for Power Plants with No Fuel Costs on 27 September 2022, and (ii) the official Invitation Notifications for Purchasing Electricity from Renewable Energy Sources under a Feed-in-Tariff Scheme between 2022-2030 for Power Plants with No Fuel Costs, specifying the bidding process and timeline of each type of renewable power plant on 30 September 2022. In keeping with Thailand’s commitment to increase renewable energy’s share in the country’s overall power mix to at least 50% by 2050 and achieve carbon neutrality and net-zero greenhouse gas emissions by 2050 and 2065, respectively, the government will be accepting bids in November to purchase power generated from renewable energy sources in the years between 2024 to 2030.
Baker McKenzie’s Sanctions Blog published the alert titled Japan introduces further sanctions against Russia and Belarus on 14 October 2022. Read the article via the link here. Please also visit our Sanctions Blog for the most recent updates.
On 7 October 2022, Malaysia’s Minister of Finance, YB Senator Tengku Dato’ Sri Zafrul Tengku Abdul Aziz, unveiled the Malaysian Budget 2023, themed “Keluarga Malaysia, Makmur Bersama”. This infographic sets out the key tax highlights from the Budget 2023 announcement.
Phase 2 of the new inspection regime of the register of the Companies Registry will come into effect from 24 October 2022, allowing Hong Kong companies to, among others, limit disclosure to the public certain personal information of their directors and secretaries. Under Phase 2 of the New Inspection Regime, the usual residential address and full identification number of directors and company secretaries will be replaced with the correspondence address and partial IDNs. Protected Information contained in documents filed for registration on or after 24 October 2022 will not be available for public inspection although Specified Persons may apply to access the Protected Information.
Following the public hearing in March 2022, the Trade Competition Commission of Thailand published an amendment to the guideline on fair trade practices relating to credit terms with small and medium enterprises under section 57 (unfair trade practices) of the Competition Act 2017. This is the first amendment after the guideline became effective in December 2021.