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	<img alt="" src="/uploads/allimg/240219/1-2402191504203B.jpg" style="width: 600px; height: 255px;" /></div>
<div style="text-align: justify;">
	<span style="font-size:16px;"><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#696969;">On 18 January 2024, Chambers and Partners, an authoritative international legal rating agency, announced its &quot;Chambers Greater China Region 2024&quot; list. Beijing DHH Law Firm has been recommended in the Corporate/Commercial practice area and has been recognised as a leading firm in this field in Beijing and Guangdong regions. Meanwhile, multiple DHH lawyers have been listed by Chambers and Partners as leading lawyers in various fields.<br />
	&nbsp;<br />
	Chambers Greater China Region 2024 - Leading firm<br />
	&nbsp;<br />
	Corporate/Commercial: Beijing<br />
	Corporate/Commercial: Guangdong: Contentious<br />
	&nbsp;<br />
	Chambers Greater China Region 2024 - Leading Individuals<br />
	&nbsp;<br />
	Aviation: Finance<br />
	HUANG Zhenda<br />
	Senior Equity Partner</span><br />
	<a href="mailto:huangzhenda@deheheng.com"><span style="color:#696969;">huangzhenda@deheheng.com</span></a><br />
	<span style="color:#696969;">&nbsp;<br />
	Banking&amp;Finance<br />
	LU Yang<br />
	Senior Equity Partner</span><br />
	<a href="mailto:luyang@deheheng.com"><span style="color:#696969;">luyang@deheheng.com</span></a><br />
	<span style="color:#696969;">&nbsp;<br />
	Competition/Antitrust<br />
	REN Li<br />
	Senior Equity Partner</span><br />
	<a href="mailto:renli@deheheng.com"><span style="color:#696969;">renli@deheheng.com</span></a><br />
	<span style="color:#696969;">&nbsp;<br />
	Construction<br />
	LU Wei<br />
	Senior Equity Partner</span><br />
	<a href="mailto:luwei@deheheng.com"><span style="color:#696969;">luwei@deheheng.com</span></a><br />
	<span style="color:#696969;">&nbsp;<br />
	Environment<br />
	WANG Haijun<br />
	Senior Equity Partner</span><br />
	<a href="mailto:wanghaijun@deheheng.com"><span style="color:#696969;">wanghaijun@deheheng.com</span></a><br />
	<span style="color:#696969;">&nbsp;<br />
	Real Estate<br />
	MA Lihong<br />
	Senior Equity Partner</span><br />
	<a href="mailto:malihong@deheheng.com"><span style="color:#696969;">malihong@deheheng.com</span></a></span></span></div>

                        

DHH was Listed in Chambers Greater China Region 2024

A FEW NOTES AND REFLECTIONS ON CHINA-AFRICA RELATIONS

<div style="text-align: center;"><span style="color:#696969;"><span style="font-size:16px;"><span style="font-family:arial,helvetica,sans-serif;"><img alt="" src="/uploads/171030/1-1G030145324S5.jpg" style="width: 600px; height: 400px;" /></span></span></span></div>
<div style="text-align: justify;"><br /><span style="color:#696969;"><span style="font-size:16px;"><span style="font-family:arial,helvetica,sans-serif;">In August, the US Trade Representative Robert Lighthizer formally initiated an investigation of China under Section 301 of the Trade Act of 1974. The investigation will seek to determine whether acts, policies, and practices of the Government of China related to technology transfer, intellectual property, and innovation are unreasonable or discriminatory and burden or restrict US commerce.<br /><br />Lawyers from Beijing DHH Law Firm have played an important role in the ongoing Section 301 Investigation. Mr Jiang Qi, the Managing Partner of DHH, and Mr Liu Xinze, the Executive Director of DHH Washington D.C. Office, are leading a team of DHH lawyers in defending the Chinese government against the Section 301 investigation.<br /><br />Earlier this month, DHH lawyers Mr Jiang Qi and Mr John Tang provided oral testimony at the Section 301 Investigation Hearing held at the U.S. International Trade Commission in Washington D.C. DHH lawyer Mr Liu Xinze also provided testimony on behalf of the China General Chamber of Commerce. Mr Jiang Qi and Mr John Tang began by expressing their hope that the Sino-US trade relationship will continue to develop harmoniously.</span></span></span><br />&nbsp;</div>
<div style="text-align: center;"><img alt="" src="/uploads/171030/1-1G030145439154.jpg" style="width: 600px; height: 836px;" /></div>
<div style="text-align: justify;"><br /><span style="color:#696969;"><span style="font-size:16px;"><span style="font-family:arial,helvetica,sans-serif;">The DHH legal team went on to explain how the Chinese legal system has, despite its shortfalls, incorporated the requirements and standards set by the WTO. As China is becoming a more developed country, its intellectual property protection laws are similarly being affected on a daily basis. We see this in the progression of changes to China&#39;s patent, trademark, and copyright laws, which continue to expand the level of protection, increase statutory damages, and implement better enforcement not only for foreign investors in China but also for its domestic companies.<br /><br />China taken steps to pass special rules specifically protecting foreign intellectual property. For example, the recently passed &quot;Action Plan for Protecting Foreign Companies&#39; Intellectual Property Rights&quot; is aimed at taking action against intellectual property violations on foreign companies&#39; intellectual property in China. The plan lists 11 working tasks, clarifies responsibilities for each participating department, calls for a harsh clampdown on violations of trade secret, patent right, malicious trademark registration, infringing famous brands, and intellectual property infringement and piracy. These efforts by the Chinese government are intended to create market conditions as well as create investment conditions that encourage fair competition.<br /><br />The DHH lawyers went on to explain that although some cross-border mergers and acquisitions are carried out by business entities that have government ownership, politics does not have an influence on business decisions. Chinese businesses, whether private or those with government ownership, make decisions on an independent basis to the best judgement of the management of those businesses. In response to a question on joint venture requirements for operating in China, Mr Liu Xinze explained that a joint venture requirement is not uncommon throughout the world, with even the most developed economies such as the US maintaining some reservations regarding foreign investment access.<br /><br />There are about 20 sectors that are reserved by the US, and many other countries also retained reservations regarding foreign investment through the means of joint venture or foreign investment limitation. For example, Japan, Canada, Australia, Korea, Singapore, India, Vietnam, Malaysia and many other countries retain such foreign equity limitations or joint venture requirements. The level of openness to foreign investment depends to a large extent on the economic level of the host country. A general observation is that developing countries, such as India, Vietnam, Philippines, Malaysia etc are more likely to have joint venture requirements or other limitations.</span></span></span><br />&nbsp;</div>
<div style="text-align: center;"><img alt="" src="/uploads/171030/1-1G030145540O1.jpg" style="width: 600px; height: 663px;" /></div>
<div style="text-align: justify;"><br /><span style="color:#696969;"><span style="font-size:16px;"><span style="font-family:arial,helvetica,sans-serif;">In China, the joint venture requirements or foreign equity limitations are becoming less common. In the 1990s, there were about 90 restrictions, but now there are only 35 sectors that are subject to restrictions. Out of these 35 sectors, only some have joint venture requirements or foreign equity limitations. Furthermore, many of these sectors include areas such as banking, insurance, securities, education and healthcare, so the rationale behind the joint venture requirement is clearly not to obtain the technology of foreign companies.<br /><br />In the next step of the Section 301 Investigation, the USTR will likely issue a damage assessment figure that can be used as the basis for a preliminary calculation of potential sanctions. These sanctions could be implemented if the US decides that China is making insufficient progress towards satisfactory resolution of the problems identified in the original complaint. US President Donald Trump will visit Beijing in early November and we are likely to get a clearer picture of the situation by then. Beijing DHH Law Firm will continue to play a key role in defending the Chinese government against the Section 301 Investigation.</span></span></span><br />&nbsp;</div>
<div style="text-align: center;"><span style="color:#696969;"><span style="font-size:16px;"><span style="font-family:arial,helvetica,sans-serif;"><img alt="" src="/uploads/171030/1-1G0301456031W.jpg" style="width: 600px; height: 399px;" /></span></span></span></div>

Beijing DHH Law Firm Playing an Important Role in Section 301 Investigation


                        	<div style="text-align: justify">
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">In October 2016, State Council of the People&#39;s Republic has issued the &quot;Guidance Opinion on Marketizing the Bank Debt-for-Equity Swap&quot; (hereinafter referred to as the Guiding Opinion). The government promulgated this Guiding Opinion, in order to implement the spirit of the Central Economic Work Conference, put the government work report into practice, effectively reduce enterprise leverage ratio and enhance long-term growth of economy. Compared with the previous guide opinion. There are two notable features: first, the marketization; second, the legalization. The following paragraphs will focus on these two features.</span></span></span></div>
<div style="text-align: justify">
	<br />
	<span style="font-size: 16px"><strong><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">The characteristics of the marketization is mainly reflected in the following aspects:</span></span></strong></span></div>
<div style="text-align: justify">
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">1. Marketizing the Debt-for-Equity Swap should have the follow prerequisite: first, enterprises should have good prospects for development, feasible enterprise reform plan and difficulty-relief efforts. Second, enterprises&#39; production equipment, products and competence must conform to national industrial development direction. Third, enterprises should have advanced technology, marketable products, environmental protection and work safety conditions. Finally, enterprises should have good credibility without records of improper activities.</span></span></span></div>
<div style="text-align: justify">
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	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">The government should encourage outstanding enterprises which have temporary obstacles but good prospect for development to start bank debt-for-equity swap. These enterprises include the enterprises which have difficulties because of periodic fluctuation, the newly-emerged growth enterprises that have high liability and the lifeline enterprises which have strategically dominant position in national economy.</span></span></span></div>
<div style="text-align: justify">
	<br />
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">The following types of enterprises are prohibited as the object of market-oriented debt-equity swap: zombie (ineffective and unpromising) companies with malicious evasion of debt; enterprises without clear debtor-creditor relationship and credibility; and companies which may cause over-capacity of production.</span></span></span></div>
<div style="text-align: justify">
	<br />
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">2. Carrying out market-oriented debt-equity swap through executive organizations. </span></span><br />
	<span style="font-family: arial, helvetica, sans-serif; color: rgb(105,105,105)">Except otherwise as determined by the State, the Bank shall not directly convert debt to equity. The bank shall only transfer the debt into equity through executive organization. &nbsp; &nbsp;</span></span></div>
<div style="text-align: justify">
	<br />
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">The government should encourage financial asset management companies, insurance asset management institutions, state-owned capital investment and operating companies and other types of implementing agencies to participate in market-oriented debt-equity swap. The government also need to support banks to make full use of the existing eligible institutions, or to apply for the establishment of new institutions to implement debt-to-equity reform.&nbsp;</span></span></span></div>
<div style="text-align: justify">
	<br />
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">To encourage all kinds of implementing agencies to open, fair and just competition to carry out. And to support all executive organizations, private equity investment funds and other equity investment institutions to cooperate.</span></span></span></div>
<div style="text-align: justify">
	<br />
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">3. Self-determined prices and conditions of market-oriented debt-equity swap through consultation. </span></span></span><br />
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">Banks, enterprises and implementing agencies could determine prices and conditions of assignment of credit. For situation involving multiple creditors, largest creditors or creditors who initiate market-oriented debt-for-equity swap could form a creditors&#39; committee to coordinate. &nbsp; &nbsp; &nbsp; &nbsp;</span></span></span></div>
<div style="text-align: justify">
	<br />
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">With approval, it is allowed to determine the conversion price of state-owned companies by reference to the transaction prices of the secondary market of the stock, and allow the price of the conversion of state-owned unlisted companies to be determined with reference to the trading price of secondary stocks market. In order to meet the needs of market-oriented debt-to-equity transformation, it is necessary to further clarify and standardize the procedures for the transfer of state-owned assets.</span></span></span></div>
<div style="text-align: justify">
	<br />
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">Perfecting the policy of preference shares issuance, allowing the creditor&#39;s rights to be converted into the preference shares through consultation and legal procedures, and the shareholders&#39; equity of the preferential shares shall be determined reasonably according to law.&nbsp;</span></span></span></div>
<div style="text-align: justify">
	<br />
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">4. Market-oriented to raise debt-equity funds. </span></span></span><br />
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">The funds needed for the debt-for-equity swap could be raised by the executive organizations in a variety of market-oriented ways, including to encourage the executive organizations to lawfully raise capital from investors, to support the executive organizations to issue specific financial bonds for market-oriented debt-to-equity swaps, and simplify the approval procedures.</span></span></span></div>
<div style="text-align: justify">
	<br />
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">5. Adopt all kinds of market-oriented means to achieve equity withdraw.</span></span></span></div>
<div style="text-align: justify">
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">If the executive organizations has an expectation of equity withdrawal, it may negotiate with the enterprise to withdraw the equity held by the enterprise. If a debt-to-equity enterprises is a listed company, the debt-equity swap can be lawfully transferred out. At the same time, the securities regulatory requirements such as the restricted selling period shall be observed. If a debt-to-equity enterprises is a unlisted company, this company should be encouraged to use the way of merger and acquisition, regional equity market transactions and other channels to achieve the transfer out.</span></span></span></div>
<div style="text-align: justify">
	<br />
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif"><strong>The characteristics of the legalization is mainly reflected in the following aspects:</strong></span></span></span></div>
<div style="text-align: justify">
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">1. Standardize the implementation of equity changes and other related procedures. </span></span></span><span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">The debt-for-equity swap enterprises shall complete the business registration or change registration formalities in accordance with the law, such as the establishment of the company, the alteration of the shareholders, and the reorganization of the board of directors.</span></span></span></div>
<div style="text-align: justify">
	<br />
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">2. Protect the rights of shareholders in accordance with the law. </span></span></span><span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">After the implementation of market-oriented debt-equity swap, it is necessary to ensure that the executive organizations enjoy the rights of shareholders, including participating in making significant business decisions and equity management within the scope of laws and the articles of association.</span></span></span></div>
<div style="text-align: justify">
	<br />
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">The implementing institution of the bank shall determine the reasonable shareholding in the debt-to-equity swap enterprise and shall bear the limited liability according to the laws and regulations of the Company Law.</span></span></span></div>
<div style="text-align: justify">
	<br />
	<span style="font-size: 16px"><span style="color: #696969"><span style="font-family: arial,helvetica,sans-serif">In the current economic situation, to launch the debt-for-equity could help enterprises through difficulties, reduce costs, improve efficiency and enhance competitiveness.<br />
	<br />
	By <strong>Jia Xunjun</strong><a href="http://test230.nesky.cn/a/PEOPLE/266.html"><img src="/uploads/allimg/161216/1-16121610341L10.jpg" style="height: 160px; width: 120px; float: left; margin-right: 10px" /></a></span></span></span></div>
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