Page 224 - 2021 White Paper
P. 224
1 White Paper on the Business Environment in China
with the administrative laws and regulations, if 4. Protection of Complainant’s Rights
the enterprises or their investors believe that and Interests
the administrative actions of the administrative
authorities and their staff infringe on their legal The original Interim Measures simply stated that
rights and interests and file complaints, their the agencies for handling complaints shall keep the
complaints shall be determined for no more than six complainant’s trade secrets in confidence19, while
months. The suggestions or reports on issues made the new Measures for Complaints further specify that
by foreign invested enterprises or their investors the agencies for handling complaints shall establish
should be disposed for no more than one year. and improve the internal management system in
order to protect the complainant’s trade secrets20.
Like the original Interim Measures, the new Moreover, unlike the Interim Measures, in addition
Measures for Complaints, also provide methods for to protection of trade secrets, agencies for handling
handling complaints and conclusion of complaints. complaints are also required to protect confidential
However, the provisions added in Measures for business information and personal privacy21. The
Complaints state that the agencies for handling Measures for Complaints also provide that the
complaints can promote an understanding (including agencies for handling complaints and their staff
a settlement agreement) between the complainant who are held liable for abuse of power, negligence
and the complained person, which is binding on the of duties, favoritism and irregularities, or disclosure
complainant and the complained person17. If the of trade secrets, confidential business information
complainant fails to fulfill the effective settlement and personal privacy, will be punished pursuant to
agreement, he will be pursued for responsibility law; if such actions constitute crimes, they will be
pursuant to law18. The agencies for handling pursued criminal responsibilities22 23.
complaints does not have mandatory power over the
person that is the object of the complaint. Therefore, Conclusion
they cannot enforce the settlement. The settlement
agreement helps resolve the problems caused by In conclusion, compared to the original Interim
non-performance or delay of performance by some Measures, the new Measures for Complaints
of the complainants after they have obtained the is more specific, reasonable and practical as to
complainant’s understanding. the complaint mechanism for foreign-invested
enterprises, and is beneficial for realizing the full
functions of the complaint mechanism, despite
some of the problems we are unsatisfied.
17 Measures for Handling Complaints of Foreign-invest- 19 Interim Measures for Handling Complaints of For-
ed Enterprises, Article 18 eign-invested Enterprises, Article 13
18 Regulations on Implementation of the Foreign Invest- 20 Measures for Handling Complaints of Foreign-invest-
ment Law, Article 41 ed Enterprises, Article 23
21 Measures for Handling Complaints of Foreign-invest-
224 ed Enterprises, Article 23
22 Measures for Handling Complaints of Foreign-invest-
ed Enterprises, Article 39
23 Foreign Investment Law, Article 39
with the administrative laws and regulations, if 4. Protection of Complainant’s Rights
the enterprises or their investors believe that and Interests
the administrative actions of the administrative
authorities and their staff infringe on their legal The original Interim Measures simply stated that
rights and interests and file complaints, their the agencies for handling complaints shall keep the
complaints shall be determined for no more than six complainant’s trade secrets in confidence19, while
months. The suggestions or reports on issues made the new Measures for Complaints further specify that
by foreign invested enterprises or their investors the agencies for handling complaints shall establish
should be disposed for no more than one year. and improve the internal management system in
order to protect the complainant’s trade secrets20.
Like the original Interim Measures, the new Moreover, unlike the Interim Measures, in addition
Measures for Complaints, also provide methods for to protection of trade secrets, agencies for handling
handling complaints and conclusion of complaints. complaints are also required to protect confidential
However, the provisions added in Measures for business information and personal privacy21. The
Complaints state that the agencies for handling Measures for Complaints also provide that the
complaints can promote an understanding (including agencies for handling complaints and their staff
a settlement agreement) between the complainant who are held liable for abuse of power, negligence
and the complained person, which is binding on the of duties, favoritism and irregularities, or disclosure
complainant and the complained person17. If the of trade secrets, confidential business information
complainant fails to fulfill the effective settlement and personal privacy, will be punished pursuant to
agreement, he will be pursued for responsibility law; if such actions constitute crimes, they will be
pursuant to law18. The agencies for handling pursued criminal responsibilities22 23.
complaints does not have mandatory power over the
person that is the object of the complaint. Therefore, Conclusion
they cannot enforce the settlement. The settlement
agreement helps resolve the problems caused by In conclusion, compared to the original Interim
non-performance or delay of performance by some Measures, the new Measures for Complaints
of the complainants after they have obtained the is more specific, reasonable and practical as to
complainant’s understanding. the complaint mechanism for foreign-invested
enterprises, and is beneficial for realizing the full
functions of the complaint mechanism, despite
some of the problems we are unsatisfied.
17 Measures for Handling Complaints of Foreign-invest- 19 Interim Measures for Handling Complaints of For-
ed Enterprises, Article 18 eign-invested Enterprises, Article 13
18 Regulations on Implementation of the Foreign Invest- 20 Measures for Handling Complaints of Foreign-invest-
ment Law, Article 41 ed Enterprises, Article 23
21 Measures for Handling Complaints of Foreign-invest-
224 ed Enterprises, Article 23
22 Measures for Handling Complaints of Foreign-invest-
ed Enterprises, Article 39
23 Foreign Investment Law, Article 39
