l  Latest Hot Spot

State Administration of Foreign Exchange Releases Preliminary Data for Balance of Payments Statement in the First Quarter of 2020

l  New Law Express

1.Several Opinions on Financial Services for Enterprises to Resume Production and Stabilize Foreign Trade and Foreign Investment issued by Local Coordination Mechanism of the Financial Commission Office (Shanghai)

2.8 Ministries and Commissions have jointly issued the Guiding Opinions on Further Assisting Micro and Small Enterprises and Individually-owned Businesses in the Service Industry to Reduce the Rental Pressure due to COVID-19 Epidemic

3.Guiding Opinions of the Shanghai High People's Court and the Shanghai Municipal Human Resources and Social Security Bureau on the Handling of Labor Dispute Cases under the Influence of the Epidemic Situation

【Latest Hot Spot】

State Administration of Foreign Exchange Releases Preliminary Data for Balance of Payments Statement in the First Quarter of 2020

The State Administration of Foreign Exchange ('SAFE') released on May 8, 2020 the preliminary data on the balance of payments in the first quarter of 2020. Wang Chunying, spokesman and chief economist of SAFE, commented that although China's international balance of payments was impacted by COVID-19 epidemic in the first quarter, it still remained within a basically balanced range, which reflects the long-term willingness of foreign investors to invest and develop their industries in China. In the first quarter of 2020, the net inflow of direct investment is USD14.9 billion, mainly USD33.6 billion, reflecting the long-term willingness of foreign investors to invest and develop industries in China; and the net outflow of Chinese foreign direct investment is USD18.7 billion, indicating that enterprises' foreign direct investment in China is stable and orderly.

China has adopted a series of precise measures to deal with the epidemic and ensure the resumption of foreign production and work. For example, domestic and foreign enterprises shall be treated equally and foreign enterprises shall be helped to the greatest extent in finance, banking, social security and other aspects, such as lowering the rent, reducing taxes, and delaying the payment of relevant fees, in order to reduce the negative impact caused by the epidemic on foreign enterprises. In addition, as investment in new infrastructure and other areas becomes more active, China will attract more foreign investment. China attaches great importance to new infrastructure, and has introduced development plans and action plans at both the national and local levels to provide a broad market space for strategic emerging industries, such as artificial intelligence, big data, cloud computing and blockchain, which will help attract foreign investment to directly invest in related industries in China or carry out international technology and trade cooperation, and improve the quality of foreign investment in China.

【New Law Express】

Several Opinions on Financial Services for Enterprises to Resume Production and Stabilize Foreign Trade and Foreign Investment issued by Local Coordination Mechanism of the Financial Commission Office (Shanghai)

In order to thoroughly implement the decisions and arrangements of the Central Committee of the Communist Party of China and the State Council on overall planning for the prevention and control of the epidemic situation of Singapore Crown Pneumonia and economic and social development, according to the work guidelines of the Financial Stability and Development Commission of the State Council of 'stabilizing expectations, expanding the total, focusing on classification, focusing on renewal by category, creating tools and paying attention to implementation', and the requirements of the CPC Shanghai Municipal Committee and Shanghai Municipal Government for relevant work, Financial Commission Office (Shanghai), 6 May 2020, shall effectively and carefully stabilize foreign trade and stabilize foreign investment and stable investment (hereinafter referred to as 'Three Stabilizations'), comprehensively promote enterprises to resume work and resume production and enable production to be improved in the course of normalized prevention and control of the epidemic, and at the same time pay attention to the prevention and resolution of financial risks, the following opinions on financial services in Shanghai are hereby put forward. The main aspects are as follows:

First is to continue to increase financial support for enterprises' resumption of work and production. More credit support shall be given to micro, small and medium-sized enterprises for their resumption of production and working. Continue to make good use of the national re- discount policy of CNY500 billion in reloans, make efforts to 'maintain the stock, expand the increment and reduce the cost', and promote banking financial institutions to convert the due stock loans under inclusive loans into preferential loans supported by reloans.

Second is to guarantee the orderly commencement and resumption of work in key fields and major projects. Financial Commission Office (Shanghai) shall actively cooperate in the issuance and underwriting of general bonds and special bonds issued by the local government, and provide supporting financing and financial service guarantees for timely resumption of construction of projects under construction and early commencement of new projects.

8 Ministries and Commissions have jointly issued the Guiding Opinions on Further Assisting Micro and Small Enterprises and Individually-owned Businesses in the Service Industry to Reduce the Rental Pressure due to COVID-19 Epidemic

Upon approval by the State Council, the National Development and Reform Commission, the Ministry of Housing and Urban-rural Development, the Ministry of Finance, the Ministry of Commerce, the People's Bank of China, the State-owned Assets Supervision and Administration Commission of the State Council, the State Administration of Taxation and the State Administration for Market Regulation will jointly release the Guiding Opinions on Further Assisting Small and Micro Enterprises and Individually-owned Businesses in the Service Industry to Mitigate Housing Rent Pressure (the 'Opinions') on May 9, 2020, in order to implement the decisions and arrangements of the Central Committee of the Communist Party of China and the State Council, make overall arrangements to promote the prevention and control of the epidemic of COVID-19 as well as the economic and social development, and further help and assist small and micro enterprises and individually-owned businesses in the service industry to relieve housing rent pressure.

Under the Opinions, it shall implement the housing rent reduction and exemption: promote the exemption of the housing rent of three months in the first half of the year for the small and micro enterprises and individually-owned businesses in the service industry that rent the state-owned houses (including the houses of the state-owned enterprises and governmental departments, colleges and universities, research institutes and other administrative public institutions, hereinafter the same) for use in business operation and have difficulties. In the case of sublease of any state-owned house, it shall be ensured that the rent-free right will benefit the ultimate lessee. For lease of State-owned buildings (including State-owned buildings of the relevant authorities, Central enterprises, Central tertiary institutions and research institutes, etc), the property rent support policies for micro and small enterprises in service industries and individually-owned businesses with business difficulties at the location of the building shall apply. Where rent reduction or exemption affects the performance of state-owned enterprises and public institutions, it shall be recognized according to the actual situation in the assessment. For small and micro enterprises and individually-owned businesses in service industries which have difficulties in leasing non-State-owned buildings for business use, lessors are encouraged to consider the actual difficulties of lessees, reduce, waive or defer rental collection on the basis of equal negotiation between both parties.

All local governments and relevant departments shall fully understand the significance of further assisting micro and small enterprises and individual businesses in the service industry in mitigating the pressure of housing rents for coping with the Xinguan pneumonia epidemic, further align the ideological understanding with the decisions and arrangements of the CPC Central Committee and the State Council, specify the division of duties, improve the working mechanism, implement the work responsibilities, and increase the work efforts, so as to ensure that all the requirements are effectively implemented as soon as possible.

Guiding Opinions of the Shanghai High People's Court and the Shanghai Municipal Human Resources and Social Security Bureau on the Handling of Labor Dispute Cases under the Influence of the Epidemic Situation

For the purpose of fully implementing relevant work arrangements made by the Central Committee of the Communist Party of China, the State Council, the Supreme People's Court, the Ministry of Human Resources and Social Security, the Shanghai Municipal Committee of the Communist Party of China and the Shanghai Municipal People's Government in respect of the prevention and control of the epidemic of Xinguan pneumonia, striving to achieve the work goal of guaranteeing enterprises' employment and maintaining employment stability, properly resolving labor disputes in Shanghai during the prevention and control of the epidemic of Xinguan pneumonia, and unifying standards for law enforcement in arbitration and trial, the Shanghai High People's Court and the Shanghai Municipal Human Resources and Social Security Bureau have issued the Guiding Opinions on the Handling of Labor Dispute Cases under the Influence of the Epidemic on April 13, 2020.

The basic principles for handling cases of employment disputes related to epidemic diseases are clarified. First, adhere to the principle of seeking common ground through consultation. Further strengthen the concept that both parties to the labor relationship shall reach a consensus and overcome the difficulties through the trial of cases, and try their best to resolve labor disputes through mediation, consultation or otherwise. Secondly, adhere to the principle of balanced protection. When handling cases, the principle of paying equal attention to legally protecting the lawful rights and interests of laborers and promoting the steady development of enterprises shall be always carried out. And not only the guaranty of the basic life and employment of laborers shall be paid attention to, but also the conditions shall be created for the survival and development of enterprises. Third, the principle of stabilizing labor contract relations shall be adhered to. With respect to a dispute arising from the rescission of a labor contract, the people's courts shall, in the trial of the case, actively implement the policy requirements such as aiding the enterprise to stabilize positions and guaranteeing employment and enterprise stability, insist on prudential treatment, give full consideration to the special circumstances during the epidemic period, and shall not uphold the claim of the party concerned for rescission of the labor contract if it is possible to continue the performance of the labor contract upon review. Fourth, the principle of promoting the cooperative performance of labor contracts shall be adhered to. Where the performance of an employment contract is affected by an epidemic, the parties concerned shall be guided to amend the employment contract through negotiation and adjust the time, venue and method of performance etc to promote continued performance of the employment contract.

【Our Firm’s Trend】

Shanghai Veritas Law Corporation, SBA Stone Forest and Singapore Enterprises Center Jointly Launched a Series of Online Courses for the Public Interest

Our law firm, SBA Stone Forest and Singapore Enterprises Center jointly launched a series of live courses for the public interest to help Singapore companies get through the pandemic situation. On 7 May, 2020, last live course has been carried out online. Our managing partner Ms. He Lijuan, and Hannah, who is the senior consultant and project implementation manager of SBA Stone Forest’s Salary and Personnel Consulting Department, jointly provided relevant explanations and comprehensive policy guidance from professional perspectives for labor adjustment and labor relationship processing.

The theme of presentation was employment adjustment for enterprises, legal risks of change of labor contract and termination of labor contract, which was divided into three parts. First, Ms He introduced employment policy under COVID-19 epidemic. She mainly introduced Notice of the General Office of the Ministry of Human Resources and Social Security on Properly Handling Labor Relation Issues during the Period for Prevention and Control of the Novel Coronavirus-infected Pneumonia Epidemic (Ren She Ting Fa Ming Dian [2020] No.5), Opinions on Stabilizing Employment Relationship during the Period for Prevention and Control of the Novel Coronavirus-infected Pneumonia Epidemic to Support Enterprises in Resuming Work and Production（Ren She Bu Fa [2020] No. 8）, Guiding Opinions on Handling Labor Dispute Cases Affected by the Epidemic Situation. It mainly covers the adjustment of remuneration, issues concerning salary payment standards in special periods and relevant measures for guaranteeing employment and stability in enterprises.

In the second part, Lawyer He introduced several basic provisions of the Labor Contract Law, including provisions on the conclusion and type of labor contracts, provisions on the renewal of labor contracts, and how to formulate labor rules and regulations. Finally, Lawyer He focused on the legal risks of labor contract change and dissolution, mainly from the point of view of consultation dissolution, employer dissolution at any time, employer's notice dissolution, and employer's economic layoffs.

After the live broadcast, Lawyer He interacted actively with the audience, answering the related labor law questions. The series of public welfare courses for the epidemic situation ended successfully.

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