Page 382 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
relationships with modernity. One obvious difference legal services in 2017 are the asset-backed securitization
is that Chinese brands are more likely to resort to and investment and financing dispute resolution. With
patriotism or nationalism as a selling strategy (Li). the continued popularity of investment and financing
markets in recent years, the relevant legal business of
Over the past several years, the Chinese government disposition of non-performing asset has been gradually
has turned its attention toward greater regulation of increased, and these business needs can be expected
advertising, and more recently of online advertising. to arise a blowout in the next stage. At the same time,
Following in the footsteps of the amended Advertising the investment and financing businesses in the fields of
Law implemented in 2015, the State Administration of healthcare and entertainment are expected to increase
Industry and Commerce (SAIC)’s Interim Measures for constantly and benefit from the growing material culture
the Administration of Internet Advertising came into and health needs of the people that has attracted the
effect on September 1, 2016. The new regulation clarifies influx of capital in these areas directly. Among them,
what content is considered “internet advertising,” lays the more noteworthy area is the booming intellectual
down rules for “publishers” of online advertisements, property (IP) field as a result of the entertainment
and outlines investigation measures and penalties for industry. 2016 and 2017 are the two years in which
violators. Given the ubiquity of online advertising in the IP derivatives show a vigorous development
China, the regulations will have a widespread impact momentum, and the domestic courts have effectively
on the actions of advertisers and platform operators. enhanced protection of IP rights and substantially
In practice, any digital content placed on any online increased the amount of monetary compensation
platform with the intent of promoting a product for IP infringement. The courts in Beijing, Shanghai,
or service could be subject to the regulation. The Guangzhou, Shenzhen and other cities have awarded
regulation holds advertisers responsible for the veracity high compensation of millions or even tens of millions
of their content. In addition to this, advertisers are yuan in many IP infringement cases, which have caused
prohibited from engaging in deceptive or disruptive a great sensation in the industry. In addition, law firms
online advertising tactics and from unfair competition have gradually formed notable tiers, and the top tier
tactics. To avoid disrupting Internet users, a one-click law firms present a more obvious leading role in terms
close option is required on pop-up advertisements. of the scale, business coverage and personnel quality.
Advertisers are not allowed to send advertisements in In spite of the slow pace of the economic development
emails without permission from recipients, and email and the decline of the overall demand for legal services
advertisements must include opt-out links. Additionally, in China, the legal charging rate remains on upward
advertisers may not use disruptive tactics to entice trend due to the large economic base. As such, domestic
users to click on links, either in emails or on web pages. law firms including the top-tier law firms are expected
Under the regulation, advertisers are also barred from to remain a strong development momentum in the near
using unfair competition methods such as interfering future (Legalband).
with the display of competitors’ advertisements using
applications or network devices (Jin). In terms of the legal business, with the development
of market economy and increasingly frequent
Legal Service exchanges and interactions with foreign countries, the
content of legal services has also become more and
Chinese legal market presents a steady change in more plentiful, and consequently foreign cases, finance,
2017. On the one hand, there is a certain degree of maritime affairs, IP, and other aspects of legal issues
decline in the fields of real estate and foreign exchange will proliferate. As a result, a number of lawyers who
related legal services due to government policies; are specialized in providing high-end services to adapt
on the other hand, banking, insurance and other to China’s new situations are in demand (Legalband).
industries are looking for appropriate capital outflow, Chinese law firms have begun to export legal services
and accordingly the legal business demand of asset- beyond its vast domestic market and to create an
backed securitization, fund and asset management international footprint. The domestic success of China’s
involved in this area continues to increase. The capital largest firms, liberalized trade agreements, key alliances
market business of this year represents a small climax. with Hong Kong firms, and international strategic
Privatization, mergers and acquisitions (M&A) deals planning are all factors in fueling the outward reach of
continue to emerge. The most notable focus areas of China’s legal services.
382
relationships with modernity. One obvious difference legal services in 2017 are the asset-backed securitization
is that Chinese brands are more likely to resort to and investment and financing dispute resolution. With
patriotism or nationalism as a selling strategy (Li). the continued popularity of investment and financing
markets in recent years, the relevant legal business of
Over the past several years, the Chinese government disposition of non-performing asset has been gradually
has turned its attention toward greater regulation of increased, and these business needs can be expected
advertising, and more recently of online advertising. to arise a blowout in the next stage. At the same time,
Following in the footsteps of the amended Advertising the investment and financing businesses in the fields of
Law implemented in 2015, the State Administration of healthcare and entertainment are expected to increase
Industry and Commerce (SAIC)’s Interim Measures for constantly and benefit from the growing material culture
the Administration of Internet Advertising came into and health needs of the people that has attracted the
effect on September 1, 2016. The new regulation clarifies influx of capital in these areas directly. Among them,
what content is considered “internet advertising,” lays the more noteworthy area is the booming intellectual
down rules for “publishers” of online advertisements, property (IP) field as a result of the entertainment
and outlines investigation measures and penalties for industry. 2016 and 2017 are the two years in which
violators. Given the ubiquity of online advertising in the IP derivatives show a vigorous development
China, the regulations will have a widespread impact momentum, and the domestic courts have effectively
on the actions of advertisers and platform operators. enhanced protection of IP rights and substantially
In practice, any digital content placed on any online increased the amount of monetary compensation
platform with the intent of promoting a product for IP infringement. The courts in Beijing, Shanghai,
or service could be subject to the regulation. The Guangzhou, Shenzhen and other cities have awarded
regulation holds advertisers responsible for the veracity high compensation of millions or even tens of millions
of their content. In addition to this, advertisers are yuan in many IP infringement cases, which have caused
prohibited from engaging in deceptive or disruptive a great sensation in the industry. In addition, law firms
online advertising tactics and from unfair competition have gradually formed notable tiers, and the top tier
tactics. To avoid disrupting Internet users, a one-click law firms present a more obvious leading role in terms
close option is required on pop-up advertisements. of the scale, business coverage and personnel quality.
Advertisers are not allowed to send advertisements in In spite of the slow pace of the economic development
emails without permission from recipients, and email and the decline of the overall demand for legal services
advertisements must include opt-out links. Additionally, in China, the legal charging rate remains on upward
advertisers may not use disruptive tactics to entice trend due to the large economic base. As such, domestic
users to click on links, either in emails or on web pages. law firms including the top-tier law firms are expected
Under the regulation, advertisers are also barred from to remain a strong development momentum in the near
using unfair competition methods such as interfering future (Legalband).
with the display of competitors’ advertisements using
applications or network devices (Jin). In terms of the legal business, with the development
of market economy and increasingly frequent
Legal Service exchanges and interactions with foreign countries, the
content of legal services has also become more and
Chinese legal market presents a steady change in more plentiful, and consequently foreign cases, finance,
2017. On the one hand, there is a certain degree of maritime affairs, IP, and other aspects of legal issues
decline in the fields of real estate and foreign exchange will proliferate. As a result, a number of lawyers who
related legal services due to government policies; are specialized in providing high-end services to adapt
on the other hand, banking, insurance and other to China’s new situations are in demand (Legalband).
industries are looking for appropriate capital outflow, Chinese law firms have begun to export legal services
and accordingly the legal business demand of asset- beyond its vast domestic market and to create an
backed securitization, fund and asset management international footprint. The domestic success of China’s
involved in this area continues to increase. The capital largest firms, liberalized trade agreements, key alliances
market business of this year represents a small climax. with Hong Kong firms, and international strategic
Privatization, mergers and acquisitions (M&A) deals planning are all factors in fueling the outward reach of
continue to emerge. The most notable focus areas of China’s legal services.
382
