Vol.2, No.07

The Shanghai Lawyer

Vol. 2 , No. 7 - July 2, 2003

Shanghai is one of the most dynamic and fastest growing mega-cities in the world. It is quickly establishing itself as the leading financial and economic center of the Far East, on par with the likes of Paris and New York. The Shanghai Lawyer is a bi-weekly publication providing up-to-date newsworthy articles and legal information to professional and business persons around the world. We hope you enjoy the newsletter and welcome your comments and feedback.

Letters from Shanghai

One of the sweetest little indulgences about living in China has got to be getting a haircut. Its not actually the haircut itself, which tends to be the scariest part of the whole procedure, but rather the add-on services that go along with a "full-service haircut. Hair salons around the world could take some lessons from the Chinese about putting a bit of luxury and relaxation together with the mundane task of getting a simple haircut.

The full process usually takes upwards to an hour and involves two or three attendants in addition to the hair stylist. Although the overall treatment tends to vary from hair salon to hair salon, typically it starts with a 10 to 15 minute wet hair massage. While sitting in the chair, an attendant will apply shampoo-like liquid out a squeeze bottle and give you a vigorous hair wash that leaves your scalp tingling and refreshed. After a quick visit to the rinse station, you will be directed back to your chair where another attendant will proceed to help get the kinks and knots out your neck, shoulder and upper arms that again lasts for about 10 minutes. Length of this stage seems to vary depending on the availability of the stylist. If he or she is busy, the massage will just continue until the stylist has time. Variations may also involve a mini massage combined with an ear cleaning (sounds weird but feels great). After all this prep, the stylist will appear and after you explain just how you want the cut, will proceed to give you his version of what you asked for. Foreigners with limited Chinese speaking might be advised to bring along a photo from a magazine or similar to try to get the point across more clearly. Hopefully the cut turns out not too bad and you are off to the rinse station for a final wash and pat dry. All that now remains is drying and styling, and for guys, a straight razor across the base of the neck; then off to the cashier. All that for about 20 or 30 RMB - about the equivalent of three or four USD. Gotta love this place!

Shanghai Essentials

Big Mac Taking a Bigger Bite

US fast-food giant McDonalds's increased the prices of Big Macs and other products in China recently for the first time since it opened shop in Shanghai in July 1994. Increases differ by city, with prices rising about 4 percent in Beijing but only 1 to 2 percent at the 66 outlets in Shanghai.

After the increase, a Big Mac costs 10.4 RMB (US$1.25) in Shanghai, up from 9.9 RMB. Local prices are still much lower than in many other countries. A Big Mac costs US$2.65 in the United States and US$2.11 in Japan, where prices are set to rise by about 26 percent.

MacDonald's have put stricter hygiene standards into practice in mid-April after the outbreak of severe acute respiratory syndrome. All employees are wearing disposable masks and after every customer leaves, their table is sprayed with disinfectant. Several local media outlets have suggested the price increases are meant to cover SARS-related costs. However, MacDonald's denied the reports in a recent statement, citing the price change as a strategic commercial decision, responding to a changing business environment.

(Source: Shanghai Daily)

Shanghai Sees Fast Economic Growth Despite SARS

Shanghai has maintained sustained, healthy and relatively fast economic growth in May, despite the negative impact of SARS. Shanghai, the biggest industrial and commercial city in China, recorded 47.56 billion RMB (US$5.8 billion) in gross domestic product in May, up 10.3 percent year on year, but 1.7 percentage points lower than April.

The sectors of transportation and logistics suffered a 10 percent drop in added value, while hotels and restaurants in the city reported a 53 percent slump in added value. Consumption was still on the rise in May, but showed signs of slowing down over the previous month. The overall retail volume totaled 17.9 billion RMB (US$2.1 billion) in May, but the growth was 4.2 percentage points lower than April.

But rapid industrial growth, exports and investment in fixed assets had counteracted the negative impact of SARS on the sectors hit hard by the disease, including transportation, tourism and the catering sector. The added industrial output value for May stood at 23.14 billion RMB (US$2.82 billion), up 4.5 percentage points over the previous month while the city exported US$4.095 billion worth of products, up 74.4 percent year on year.

Actual foreign investment in Shanghai was US$667 million, up 60 percent over the same period of last year, and investment in fixed assets grew by 24.9 percent to 24.4 billion RMB (US$2.97 billion).

(Source: China Daily)

Did you know?

Trade Fairs First Since SARS

In a move to stimulate the trade business that has been hurt by the SARS outbreak, the Shanghai government has scheduled an international sourcing conference for the end of next month, far ahead of its original schedule. The exhibition is the first to be held in Shanghai since the SARS outbreak.

The three-day 2003 International Sourcing Conference Shanghai, scheduled to open on July 29 at Shanghai Mart, combines a consumer products fair and an industrial spare parts show. The two events were originally scheduled for September and November respectively. Last year, 57 overseas buyers from 17 countries and regions participated.

Shanghai aims to export US$37 billion worth of goods in 2003, up 15.5 percent from the previous year. The first four months saw exports increase 45.2 percent year-on-year to US$13.76 billion.

(Source: Shanghai Biz News)

Property Firm Taken to Court

A local real estate company that exploited the trademark, "World Expo", to promote its project, may become the first to pay the price for such violation of intellectual property rights. The World Expo 2010 Executive Office filed a lawsuit against Shanghai Honghui Real Estate Development Co. for violating its intellectual property rights. The Shanghai No. 2 Intermediate People's Court has accepted the case, but no date has been set for a hearing.

The organizer of the World Expo 2010 is seeking a public apology and 200,000 RMB (approximately $24,000) in compensation. The "World Expo" intellectual products include names related to "China Shanghai World Expo 2010" in Chinese, French and English; any related logo, badges, emblems, mascots, theme song and banners; and any video advertising programs or documentary programs concerning the exposition.

Honghui launched the sale of its apartments on Quxi Road in Huangpu District on March 22. The first 100 apartments - at 7,300 RMB per square meter on average - were booked with deposit money within two hours. The plaintiff claimed the good sale was a direct result of using the World Expo concept, including imitating the Chinese pronunciation of the World Expo for the project's name. According to its lawsuit, property developer also adopted a logo 'resembling the World Expo and blithely copied its theme "Better City, Better Life" to attract homebuyers.

(Source: Shanghai Daily)

Six Shipping Firms Draw Fines

The Shanghai Maritime Safety Administration has fined six shipping companies a total of 310,000 RMB (US$37,349) for secretly transporting hazardous goods into the city. The firms were caught in the first four months of this year using the same scheme: hiding hazardous goods among common goods. Among those fined, Shanghai Jinshen Shipping Co covertly transported colophony, a pine resin, on April 7, and was penalized 60,000 RMB (US$7,248).

Transportation of hazardous goods, mainly chemicals, demands a high investment in special equipment, and the local authority has strict control on giving licenses. However, the high profit returns have driven some shipping companies to indulge in the business illegally. The city authorities established a 24-hour radar station at the Wusong area in Baoshan District this year to monitor vessels in and out of Shanghai.

(Source: Eastday)

Lehman Lee & Xu

China Lawyers, Notaries, Patent, Copyright and Trademark Agents

http://www.lehmanlaw.com

Contact Our Other Offices: