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Issue 48-December 2020 Veritas Update
Release date:
2020-12-15

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l  Latest Hot Spot

2020 Central Economic Work Conference Has Been Held in Beijing


l  New Law Express

1.CAS Releases Guidelines for Evaluating the Investment Value of Corporate Mergers & Acquisitions

2.The State Administration for Market Regulation announced the 'Interim Provisions on the Review of Concentration of Undertakings'



【Latest Hot Spot】


2020 Central Economic Work Conference Has Been Held in Beijing


The central economic work conference was held in Beijing from December 16 to 18. Standing at the historical intersection of the 'two centenary' goals, the 2020 Central Economic Work Conference plans China's economic development.


General Secretary Xi Jinping delivered an important speech at the meeting, deeply analyzed the domestic and international economic situation, put forward the overall requirements and policy orientation of economic work in 2021, and deployed key tasks to start the '14th Five-Year Plan' and start a new journey of comprehensively building a modern socialist country Directional navigation.


'Extremely extraordinary'-At this Central Economic Work Conference, Xi Jinping used this key word to summarize 2020, emphasizing that 'this year is an extraordinary year in the history of New China.'


The conference analysis pointed out that the shock to the global economy this year is different from the Great Depression of 1929 and the impact of the spread of the international financial crisis in 2008. It faces the dual shock of supply interruption and shrinking demand. The difficulties are unprecedented.


Facing the severe and complex international situation, the arduous and onerous domestic reform, development and stability tasks, especially the severe impact of the new crown pneumonia epidemic, the country accurately judged the situation, carefully planned and deployed, acted decisively, and worked hard to deliver a piece of people’s satisfaction. An answer sheet that has attracted worldwide attention and can be recorded in history.


China has become the only major economy in the world that has achieved positive economic growth. It shrank by 6.8% in the first quarter, increased by 3.2% in the second quarter, and rebounded to 4.9% in the third quarter. China's economic operation improved quarter by quarter and gradually returned to normal. The annual economic aggregate will exceed 100 trillion yuan. Significant progress has been made in technological innovation, the pace of key core technologies has been accelerated, and new kinetic energy and new business formats have continued to emerge. The Chinese economy has shown strong resistance to risks and tenacious resilience.


The three major battles have made decisive achievements. At the beginning of the year, the remaining 5.51 million rural poor people were all lifted out of poverty, and all 52 poor counties had their caps off. The quality of the ecological environment continues to improve, and the green development momentum is good. A number of major hidden risks were 'precisely dismantled', and important phased results were achieved in the treatment of financial risks.


An important breakthrough was achieved in reform and opening up. Major reforms and opening up measures such as the construction of Hainan Free Trade Port have been successively launched. Foreign trade, imports and exports and the use of foreign capital have grown against the trend. The joint construction of the 'Belt and Road' has been steadily progressing. The regional comprehensive economic partnership agreement has been successfully signed. 


People's livelihood is strongly guaranteed. More than 11 million new jobs were created in cities and towns, and residents’ income growth and economic growth were basically synchronized. New progress has been made in cultural tourism, social security, public health, emergency management, social governance, and affordable housing, and work to make up for shortcomings in the field of social development has been accelerated. The market supply is abundant and prices are basically stable.


'Our country has surmounted the wind and waves in the world economic recession and can be proudly written in the history of the development of the Chinese nation.' 'A good answer to the high-quality epidemic prevention and control examination papers, and every possible means to stabilize the economic fundamentals, fully demonstrated the significant advantages of the 'rule of China''


2020 is also the end of the 13th Five-Year Plan. After five years of continuous struggle, my country's economic and social development has achieved new historic achievements, and its economic strength, scientific and technological strength, comprehensive national strength and people's living standards have jumped to a new level. The victory of building a well-off society in all respects is in sight, and the great revival of the Chinese nation is moving forward. A new big step has been taken.



【New Law Express】


CAS Releases Guidelines for Evaluating the Investment Value of Corporate Mergers & Acquisitions


China Appraisal Society released on December 7, 2020 the Guidelines for Evaluating the Investment Value of Corporate Mergers & Acquisitions, to be implemented from March 1, 2021.  


According to the document, asset appraisal agency and asset appraisal professionals must not work for both parties with conflicts of interest at the same time. They should keep confidential of the state secrets, commercial secrets and personal privacy that they should be aware of during the asset appraisal process, and they should also keep confidential of the estimated enterprise value, appraisal conclusions and transaction price information in relation to a proposed business acquisition. Without the consent of its client, the asset appraisal agency must no communicate with any organization or individual about such information, unless it's otherwise prescribed by the laws and regulations.


On the same day, China Appraisal Society issued the Terms of Asset Appraisal Principles (2020) and required local associations to forward the guidelines to asset appraisal agencies and ask them to use the new terms. 



The State Administration for Market Regulation announced the 'Interim Provisions on the Review of Concentration of Undertakings'


On October 27, the State Administration for Market Regulation announced the Interim Provisions on the Review of Concentration of Undertakings. The 'Regulations' have a total of 65 articles, focusing on standardizing the anti-monopoly review and enforcement of the concentration of undertakings, and promoting the design of systems for market entities to operate in compliance with laws and regulations.


The anti-monopoly review system for concentration of business operators is an important part of the Anti-Monopoly Law. According to reports, the 'Regulations' are based on the 'Anti-Monopoly Law,' 'Administrative Licensing Law,' and 'Administrative Penalty Law' and other laws, integrating the 'Measures for the Declaration of Concentration of Business Operators' and other 4 departmental regulations and 2 regulatory documents to sort out operations. Regulations on the entities and procedures for the centralized anti-monopoly review of operators. The content covers the entire process of operator concentration declaration, review, supervision and implementation of restrictive conditions, as well as the entire process of illegal implementation of operator concentration investigations, integrates common content of each process, unifies enforcement standards and procedures, The three chapters of General Provisions, Legal Responsibilities and Supplementary Provisions have established a systematic and complete review system for the concentration of business operators.


The “Regulations” emphasize equal treatment of all business operators, clarify that the State Administration of Market Supervision can entrust provincial market supervision departments to carry out the review of operator concentration, clarify the substantive judgment criteria in the operator concentration review system, and impose the enforcement procedures in the review of operator concentration. It optimizes and refines, improves the regulations for changing or removing restrictive conditions, standardizes the trustee’s work system, clarifies the main circumstances of illegal implementation of concentration, and special chapters stipulate the declaration, review, conditional supervision and execution of business operators and the illegal implementation of centralized investigation and handling The relevant content of legal liability involved in such procedures, clarified the investigation procedures for the concentration of undertakings that did not meet the declaration standards, strengthened legal constraints, and enhanced the operability of the law and the transparency of law enforcement.


In terms of legal liability, the 'Regulations' specify that the notifier shall be responsible for the authenticity of the declaration documents and materials, and at the same time, it is clearly stated that the notifier conceals the relevant information or provides false materials, the State Administration for Market Regulation will not open the case or cancel the case for the declaration of concentration of business operators. And can be punished in accordance with the provisions of Article 52 of the Anti-Monopoly Law. If it is clear that the trustee fails to perform its duties as required, the State Administration for Market Supervision shall order corrections; if the circumstances are serious, the obligor may be required to replace the trustee, and the trustee may be fined less than 30,000 yuan; the buyer who has clearly divested the business failed to perform as required If the obligation affects the implementation of restrictive conditions, the State Administration for Market Regulation shall order corrections and may impose a fine of less than 30,000 yuan.


【Our Firm’s Trend】


Veritas Law Corporation participated in Zhonghan Stone Forest's 'Legal Escort in the Post-epidemic Era' Sharing Session


On December 11, 2020, Veritas Law Corporation attended a sharing meeting on 'Legal Escort in the Post-epidemic Era' held by SBA Stone Forest Shanghai Headquarters. At the meeting Veritas Law Corporation combined new changes in foreign investment law , As well as the new situation and new changes faced by enterprises in the epidemic era, not only provide customers with free legal consulting services, but also provide unique legal advice accordingly. Sharing session came to an end until the evening, everyone was still discussing enthusiastically after the meeting, and they consulted the lawyers on the hot topics of concern. There were many common issues raised by everyone in the sharing session, and the suggestions provided by the Veritas Law Corporation were practical and reliable.


Through this sharing session Veritas Law Corporation hopes to help more companies to effectively use legal weapons, adapt to the new business environment, make good decisions in the competition, and give excellent responses to challenges. Facing any problems that arise in business operations, and adopting proper legal methods to protect its own rights and interests, Veritas Law Corporation will always stand by every partner.



About Veritas


Shanghai Veritas Law Corporation is a comprehensive law corporation in China that provides perfect and comprehensive legal services to clients. With our professional skills and in-depth understanding of business, we provide a complete set of value-added legal service solutions for clients at home and abroad to help them achieve business goals.


We boast an excellent legal team paying close attention to client needs continuously, providing clients with practical solutions and pioneering professional advice. We strive to provide excellent services and take pride in establishing friendly and long-term partnership with our clients.


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