Chinese Business Law Take Home Exam

Question 1 Oliver Qing is one of the directors of Move It Ltd, a technology company incorporated in Melbourne, Australia. Move It Ltd also set up a wholly owned company Lock It Ltd in Shanghai free trade zone to capitalize on business opportunities there. Recently a dispute has arisen over the intellectual property rights attaching to the products between Lock It Ltd and its product distributor, a local company Get It Ltd. Get It Ltd has experienced financial difficulties for some time and has not been able to pay its debts owed to various creditors. Advise Oliver how patent rights, trademarks and copyright are regulated in China, which business dispute resolution mechanisms are suitable for resolving dispute between Lock It Ltd and Get It Ltd and why? If Get It Ltd continues to have financial problems and is unable to pay the debts, what procedures are available to Get It Ltd in such a situation? Word limit: 1000 words [15 marks] Question 2 Corporate governance is an important aspect of business. Good corporate governance is an essential ingredient in corporate success and sustainable economic growth. What are the internal and external corporate governance mechanisms in China? Labour regulation aims to strike a balance between the competing demands of business and labour. In your opinion, are employees well protected under 2007 Labour Contract Law? Do employees have a strong voice in corporate governance in China? Word limit: 500 words [10 marks] Question 3 Kevin Zhao, Bill Wang and Clare Zhang are good friends who are planning to do business together in Shanghai. Their market research has shown that an organic food importing business will be profitable and the level of interest in investing in this business by other investors is high. They decide to venture into this business. They need your advice on the following matters: which type of business entity in China is most suitable for them and why? How can they establish such a business entity? 3 What options are available to them to finance its business operation? What requirements must be satisfied to get the finance through available options? What difficulties are they likely to encounter in the process? Word limit: 1,000 words [15 marks] Question 4 Competition is essential for the efficient working of markets. Competition policy seeks to encourage and improve the competitive process, and to ensure consumers feel the benefits of that process. These aims are achieved in practice through competition law. What are the substantive issues of the competition law in China? Competition and foreign investment law are two of the main channels through which government policy on foreign ownership and acquisitions is articulated. How does China regulate mergers and acquisitions concerning foreign investors? Word limit: 500 words [10 marks] Total marks: 50 marks ——END OF EXAM—–