The Shanghai Lawyer
Vol. 2 , No. 8 - August 1, 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
So what do you do on a Saturday night in Shanghai when you're bored but don't have the energy to get out of your sweat pants and put on your party hat? Well, one of the most popular pastimes for both foreigners and locals alike is to take a trip down the street to your local video store, (either an actual physical store or more likely a suitcase full of discs on the sidewalk) and pick yourself up the latest movie release on DVD.
A wide selection of choices are on offer ranging from classics featuring Humphrey Bogart and James Dean to newly released summer blockbusters like T3 or Tomb Raider II. Now get this, the DVDs are all available for purchase for the equivalent of about one USD each. Yes, that's right - one US greenback. And yes, I know they are pirated and yes it is illegal, but hey, come on - one buck. And everyone is doing it. No one cares - no blame, no shame. I doubt that few persons would be able to resist the temptation of having their very own copy of Casablanca or the re-digitalized Star Wars Trilogy for less than the price of a Starbucks' coffee? In fact, us foreigners are probably the most frequent offenders as evidence by the attention we garner when passing roadside hawkers who know we can't resist dipping into the stacks for a quick little look.
Generally, the DVDs for new films are available for sale at about same time as they are released in movie theatres in North America. Don't ask me how they do it, but in some cases, even a week or two before their release (case in point, Incredible Hulk was available here in about mid-June; two weeks before its July 1st North American debut). The drawback in purchasing these newly released versions is they are invariably of poor quality, and since they are secretly filmed at theatres, viewers can occasionally hear audience members coughing and see heads moving across the bottom of the screen.
While quality of the DVDs varies, the vendors all guarantee their product and promise a free exchange if there is problem. (That is if you can find them - which is why it is always a good idea to stick to one vendor and choose one who doesn't move around too much.) For the most part however, they are good on their word and will exchange straight across for another same titled selection if requested. In any event, the quality of most of these pirated DVDs often degrades after watching a few times and becomes unusable.
While the government has promised to crack down, and occasionally carries through on its word, the crackdowns don't last long and then the vendors sprout up like mushrooms after a spring rain. Of course, working for a law firm, I don't like to be seen promoting any type of shady activities or have any incriminating evidence around the house, which is why I regularly send DVD care parcels to my nephews and nieces back home.
By - Blaine Turnacliff You may contact Blaine directly at bturnacliff@lehmanlaw.com | |
Shanghai Essentials
New regulations governing the structure of construction companies have been promulgated and will come into effect on October 1, 2003. The basic effect of the new regulations will be that construction companies will no longer be able to be registered as foreign contractors but must establish Chinese entities in order to operate in China. This means that foreign construction companies currently in China should be looking into establishing either a joint venture with a local entity or a wholly foreign-owned enterprise by October 1, 2003. |
THE EMPIRE STRIKES BACK
Visitors to China soon realize that it is relatively easy to purchase a pirated movie. You don't even have to look for it; it looks for you. Illegal sales of CDs, VCDs and DVDs are fairly common all over China. While the authorities have attempted to crack down on this problem, the reality is that you can pick up the latest movie on DVD on many street corners in Shanghai. Last week, Shanghai No 2 Intermediate People's Court heard cases against several Shanghai companies brought by Twentieth Century Fox Film Corp, Disney Corp and Universal Studios. The studios brought this action against the Shanghai companies in response to their alleged sales of pirated discs.
The American movie giants are seeking a public apology, financial compensation and a stop to the alleged violation of their copyrights. While the issue of movie piracy is not new in China, this is the first court case of its kind in Shanghai. The outcome of this matter will be of particular interest in light of China's obligations under the WTO. Whether China can effectively live up to its copyright obligations remains to be seen. Certainly, there is a huge task ahead of regulatory and enforcement bodies if they want to clear the streets of cheap fakes. Will be watching this case eagerly....
(Source: South China Morning Post)
WTO, ONE STEP FORWARD TWO STEPS BACK
China's accession to the WTO was hailed by many as the next great step in the opening of the Chinese market. For years, foreign industry groups in China have lobbied the Chinese government in an effort to gain greater market access and reduce restrictions on foreign players. No doubt, China's succession to the WTO and the subsequent commitments it has undertaken will result in increased access to the Chinese market, however a less commonly considered point is, whether it in the interests of foreign enterprises to be treated on a level playing field with domestic enterprises…
While it is true that foreign enterprises are subject to many restrictions on their business scope and operation, in many areas, they receive considerably more favorable treatment than their local counterparts. According to its commitments under the WTO, China has undertaken to provide a level playing field for local and foreign companies. As a consequence, foreign enterprises will inevitably loose their privileged status.
As the government makes further promulgations in line with the timetable set under their WTO commitments, foreign enterprises may find themselves having to deal with issues once solely in the realm of Chinese companies. An example of this is evident in the construction industry where the government has enacted a series of reforms, which according to their WTO commitments weren't actually required until 2005. The new provision, which will take effect as of 1st of October this year, requires foreign construction companies to establish Chinese entities instead of operating as foreign contractors. Foreign enterprises will find themselves having to restructure their operations to conform to the new requirements.
The benefits of China's entry into the WTO for foreign enterprises are manifold, however, it may leave some pondering the realization that they should be careful what they ask for, because they just might eventually get it.
(Source: english.eastday.com)
Did you know?
Shanghai is now in the midst of "San Fu," which roughly translates as "dog days", with the temperature hovering around 35 degrees Celsius for the last two weeks and is expected to continue for at least another week. |
'CHINGLISH' POLICE ON PATROL
It was announced by Shanghai's Language Commission that a new task force would be established to tackle a rampant problem in the city, which of the widespread use of 'Chinglish' in English language signs in public areas. Foreign visitors to Shanghai, of which there were 2.7 million in 2002, are often amused and confused to find such classic Chinglish signs as this gem at a Shanghai hotel 'Please leave your values at the front desk' or other favorites such as this sign at the local dry cleaner 'Please drop your trousers here for best results'.
The commission has been given a 1 million Yuan budget to oversee the revamp of Shanghai's signs, which will begin next year. The task force will be comprised of experts from local universities, possibly with the help of some foreign experts who are familiar with Chinese society.
Part of the reason behind this push is undoubtedly the upcoming World Expo 2010, which is being held in Shanghai. As part of Shanghai's drive to be recognized as an international city this should go a long way to helping foreigners live and work in this city.
Historically, the use of English language signs in Shanghai is the most extensive of any Chinese city. In the early part of the last century, some local streets had English names placed before the Chinese names. Of course this all changed after the communist government took power and the use of English public signs was not encouraged. In recent years however, Shanghai has witnessed a resurgence of the English sign, often with interesting results. For example, the reassuring motto of Hainan airlines, 'We take your bags and send them to all directions'.
It still remains to be seen whether Shanghai can effectively tackle this issue and ultimately stamp out the use of Chinglish.
(Source: English.eastday.com)
Shanghai legal problem? Tell us about it. . . Mergers & Acquisitions * Incorporations * Commercial Contracts Contact Blaine Turnacliff at bturnacliff@lehmanlaw.com |
THE DANGERS OF BEING A 'GHOST' AT WORLD CARNIVAL
Give a thought to all those poor ghosts who are just trying to earn a few bucks (or Yuan) at the Shanghai Pudong World Carnival. A special feature of the Maze of Terror ride at the carnival are the 'ghosts', whose job is to jump out and scare the passengers as they pass through the dark tunnel. Some might think that this ride is not for the weak-hearted, however that is not the problem. The problem is that disgruntled customers are beating up a number of the ghosts, as 25-year-old Karen Lu stated, "How can I keep calm when a horrible ghost suddenly shows his face just an inch in front of me. I can't help screaming and waving my bag to drive the face away."
More than 40 ghosts at the carnival are complaining that unruly visitors have caused them personal injuries. Alieve Huang, an 18-year-old who works as a ghost conceded, "I decided to do the summer vacation job because it should be interesting and exciting to scare people, but I never thought I would be hurt on the job". Perhaps the hurtful part of the ghost's dilemma is that some of the customers are intentionally attacking them, as Huang went on to explain, "On Saturday, two girls thrust the spikes of an umbrella at me, and they looked quite happy after doing that, I don't know why".
You may ask what do the ghosts get in return for suffering this indignity? They earn 60 Yuan per day. Hopefully that will be enough to cover their medical bills.
(Source: Shanghai Daily)
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STOLEN KISS - PRIVACY LAW IN CHINA
When Shanghai Fuxing High School decided to install cameras in their classrooms, students were told that they would be used to monitor pupils during exam time. However, aside from monitoring exams, it appears that the school decided to put them to use in other areas as well. It is claimed that the cameras were also used to monitor students during and after class time.
Perhaps this does not seem like a particularly important issue, and perhaps it would have gone unchallenged if not for the occurrence of one particular event. Two Shanghai Fuxing High School students, Wei Gang and his girlfriend, were filmed during some private moments they shared together in the classroom, including them kissing. The problem arose when the school decided that broadcasting the tapes would be a good means of 'educating' the students against such behavior. The result of this action by the school was that Wei and his girlfriend were ridiculed by their peers to the point where the two planned to commit suicide. Due to the student's depression both students failed to attain good marks in their college examination exams. Now Wei has enlisted the services of a lawyer to take this matter to court.
This matter raises the important issue of privacy in China. There is no clearly defined legal concept of an individual's right to privacy such as that which has gradually developed in many Western countries. This is in part due to the legacy of a culture, which places greater emphasis on the collective good, rather than the individual's interests. As a Westerner in such a hugely populated country it is inevitable that on occasion you can't help but feel a lack of privacy. As China's legal system evolves, to what extent the law will adopt a Western concept of privacy remains to be seen. However, this case raises many important issues that will undoubtedly gain further prominence as China continues on its path of development.
This matter raises the interesting questions; Is personal privacy a universal notion? Do the same rights to privacy apply to Chinese as they do to say, Americans? Perhaps this is a question that will be defined by the next generation who are being raised in an increasingly prosperous and individualistic China.
(Source: China Daily)
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