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Vol.3, No.01

The Shanghai Lawyer

Vol. 3 , No. 1 - February 17, 2004

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.

VISIT LLX AT INTA

INTA 126th Annual Meeting 2004
May 1-5 - Atlanta, Georgia

Lehman, Lee & Xu welcomes you to participate in the following:

3rd ANNUAL CHINA BRAND OWNERS BRUNCH - May 2, 10:00am at the Atlanta Marriott Marquis, Ballroom. Start the 126th Annual Meeting by experiencing Chinese hospitality at its finest. Hosted by Lehman, Lee & Xu and Tsingtao Beer, we hope that this year's brunch will once again provide for a relaxing forum to learn more about China brand owners and discuss changes in China's IP sector, including changes to China's IP laws.

If you would like to attend, please send email to inta@lehmanlaw.com or faxes to +8610 8532-1999.

LEHMAN, LEE & XU BOOTH - Exhibit Area. Visit with representatives of Lehman, Lee & Xu and Chinese brand owners. On display will be general literature on China trademark law, Q&As on China trademark registration, IP enforcement strategies and more.

Atlanta Marriott Marquis
265 Peachtree Center Avenue, N.E.
Atlanta, GA 30303 USA

Letters from Shanghai

Yuan Xiao Jie, day 15 of the New Year per the Chinese calendar and the last day of the Chinese New Year. It is the day that families are supposed to stay together and eat tungren, a kind of dumpling that signifies togetherness and is supposed to bring good luck for the remainder of the year. It is such in demand that it was sold out at the local markets near our house. My girlfriend is now in the kitchen making some the old fashioned way. She said she used to make it when she was a little girl - I just took a look, the dough looks a little runny, I chose not to comment - problem a good idea, she is actually a pretty awesome cook and probably in the end it will turn out fine.

Outside the window from the 26th floor, I can see all manner of fireworks lighting up the skies and reflecting from buildings across the city - literally at any given moment there is some explosion going off somewhere. Last day of the New Year, and so again a great excuse for noise and fireworks. The Chinese love their fireworks. Apparently a few years ago the Shanghai government tried to ban all fireworks in the city due to personal injuries and accidental fires, but there was such an outburst from the citizens that the government was forced to capitulate and reverse the policy. I recall that in Taiwan there is one small town in the South that has become famous for its firecracker and rocket fighting on Yuan Xiao Jie. In excess of 100,000 persons from the cities and across the island descend on the town for a night of pyrotechnical battles. I am referring to normal everyday persons from all walks of life. The streets are full of roving gangs of mainly youths dressed from head to toe in winter clothing topped by scarves and motorcycle helmets shooting off rockets and fireworks at each other - all condoned by the government. As you can well imagine, there are loads of injuries but for some reason (likely due to protests of local merchants who make a killing in sales), the government has never taken any actions to close down. I cant imagine the staunch Mainland government ever allowing something like that to get that far out of control, but then again who knows what will the future will bring here.

Good luck and peace to you all in this Year of the Monkey.

By - Blaine Turnacliff

You may contact Blaine directly at bturnacliff@lehmanlaw.com

Shanghai Essentials

Although there are many considerations to take into account when drafting the dispute resolution clause of your company's contract with a Chinese company, generally it is advisable to have the contract name the Chinese national arbitration tribunal, China International Economic Trade Arbitration Commission (CIETAC) as the arbitrator. CIETAC has a great deal of experience dealing with disputes between local and foreign companies and is known for its transparency and impartiality. Requests can be made for foreign arbitrators to hear the dispute, but there are also many Chinese experts that have built strong reputations. One should remember that CIETAC also has provision for enforcement of judgments of the tribunals, which makes it easier to collect in the event an order is granted against the Chinese party.

 

Update on SARS

A leading Chinese scientist in Guangzhou said it is not unexpected that a few cases of suspected SARS have been reported, since it is not likely that the SARS virus will die out so soon after its emergence. The comment was made by Professor Zhong Nanshan, director of the Guangzhou Institute of Respiratory Diseases, who has been fighting SARS since late last year.

"Nevertheless, this new suspected SARS case should arouse our attention," Zhong said. A 32-year-old freelance TV station worker was confirmed by the Chinese Ministry of Health to be a suspected SARS patient in this capital of south China's Guangdong Province. "The case does not seem to be infectious, and the patient is recovering very quickly," Zhong said. "But anyone who has long-lasting fever symptoms or lung inflammation should see a doctor immediately."

Health authorities and doctors have yet to know how the patient became infected in the first place. Wang Zhiqiong, deputy head of the Guangdong provincial health department, said that the patient claimed that he had not left Guangzhou or eaten wild animal meat for one month before hospitalization.

The first SARS case emerged in Foshan City, also in Guangdong, in November 2002. Chinese mainland's last two SARS patients were discharged from hospital on August 16 in Beijing, after more than 100 days of medical treatment. During the outbreak, a total of 5,327 SARS cases were reported on the Chinese mainland, 4,959 of who were cured and discharged from hospital. The death toll from the disease stood at 349. Of the total figure, 2,521 SARS cases and 193 deaths from the disease were reported in Beijing.

(Source: Xinhua News Agency)

 

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Shanghai World's Third Largest Port

Shanghai ports have delivered more than 11 million twenty-foot equivalent unit of container in 2003, which make it the world's third-largest port in terms of container volume. A grand ceremony was held by Shanghai International Port Group at Waigaoqiao Port yesterday to celebrate the milestone event of the 10 millionth container handled.

"The fast-growing economy in Shanghai and neighboring cities contributes the most to the container volume and it's now luring more international shipping lines to launch services to and from Shanghai," said an industry analyst surnamed Zhu with a local securities consulting firm. Currently, there are 15 international shipping routes linking Shanghai with ports in Japan, Southeast Asia, the United States and Europe.

Local ports operate 1,049 shipping services monthly, up from last year's 1,032. With the surge in container volume during recent years, local ports are now stretched to the limits, said Wang Lan, an analyst with Shanghai Shipping Exchange. In comparison to one year ago, local ports handled about 34 percent more in capacity.

In 2004, the Waigaoqiao port's fourth phase became operational in February, adding 1 million TEUs to the city's container handling capacity. With its 30 percent rise in annual throughput during the past decade, Shanghai overtook Taiwan Province's Kaosiung port to be the world's fourth largest container port last year when it handled 8.61 million TEUs, a 36 percent surge from a year earlier. Busan, South Korea, which has been the world's third-largest port for years, is lagging behind in its container throughput traffic due to two large-scale strikes by dock workers this year and a typhoon in September which damaged facilities.

(Source: Shanghaigov.cn)

Did you know?

A recent census reported that the population of metropolitan Shanghais has exceeded 20 million.

Poor Ordered to Surrender Dogs or Get Off Welfare

If you can afford to raise a dog, you don't need welfare. That's the controversial argument that has stirred heated debate around the country over the last several months, with both the central government and various city authorities jumping into the debate.

Earlier this week, the Ministry of Civil Affairs issued a statement saying it is acceptable for welfare recipients to raise pets. But the central government doesn't decide who is eligible for payments and who isn't, and those who do decide often consider pet dogs the type of expensive luxury that proves a family doesn't need financial help from outsiders.

In Shanghai, however, the rules change depending on which neighborhood you live in. Families living under the poverty line in Shanghai - meaning those with a monthly income below 290 Yuan (US$35) per member - can apply to their neighborhood committees for a government subsidy of up to 290 Yuan a month.

But different committees have different thoughts on whether or not the poor should own a pooch. "As the subsidy is granted to people living under the poverty line, it is certainly improper for subsidy recipients to have an extravagant living style, such as raising pets," said Liu Biqing, a local resident.

Many local residents and committee members share that view, noting that it costs 2,000 Yuan a year to license a dog. By the end of last year, Shanghai was home to 89,000 licensed pet dogs and even more unlicensed canines.

"Living is a larger concept than just survival," said Ma Qianfeng, a psychologist at Fudan University. "It is natural for people living below the poverty line to have some psychological needs, such as raising pets." Some poverty-stricken seniors would rather skip a meal here and there, he said, than part with their furry companion. Currently, about 400,000 families in the city receive monthly subsidies.

(Source: Shanghai Star)

Shanghai legal problem? Tell us about it. . .

Mergers & Acquisitions * Incorporations * Commercial Contracts

Contact Blaine Turnacliff at bturnacliff@lehmanlaw.com

City Still Sinking

Shanghai is one of three cities in the country that have sunk more than two meters since early last century, a situation that could cause problems for underground facilities, such as subway tunnels, according to a recent government survey. The survey, conducted by the Ministry of Land and Resources, shows Shanghai has sunk by more than two meters since 1921, while Tianjin and Taiyuan, capital of Shanxi Province, have sunk by that much since 1949.

"We have planned to control the annual land subsidence within 5 millimeters by 2020, but it is proving to be very difficult," said Liu Shouqi of the Shanghai Bureau of Housing, Land and Resources Administration. Geologists blame the problem on over pumping of underground water and the rapid construction of skyscrapers in the city. Shanghai's subsidence problems was at it worst in the 1960s, when the city sunk by more than 10 centimeters a year, a rate that would have put the city below sea level by 1999 if it hadn't been slowed.

"It's not easy to stop the over pumping because the users of underground water exist everywhere from downtown to rural areas, and there isn't one clear government department in charge of the problem," Liu said. "Although the current (subsidence) rate will keep the city above sea level for more than 400 years, it still holds several potential dangers," said Li Qinfen, a professor at the Shanghai Institute of Geological Survey. "It has already forced the city to raise its floodwall again and again," he said. "And it will also very probably cause the city's subway lines to deform because of the unevenness of land subsidence."

(Source : Shanghai Daily)

 

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General Patent

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