One of the most important negotiated points by parties in contract negotiations is the dispute resolution clause. If parties agree on arbitration, they often negotiate which arbitration institution or arbitration rules will apply in resolving potential disputes.
On April 30, 2015, OmniVision Technologies, Inc. (OVTI, a Delaware company listed on NASDAQ) announced that it has entered into a definitive agreement to be acquired by a consortium composed of Hua Capital Management Co. Ltd. (“Hua Capital Management”), CITIC Capital Holdings Limited (“CITIC Capital”) and GoldStone Investment Co. Ltd. (“GoldStone Investment”) (collectively, the “Consortium”). Under the terms of the agreement, OmniVision stockholders will receive $29.75 per share in cash, or a total of approximately $1.9 billion. The agreement was unanimously approved by OmniVision’s Board of Directors.
In February 2014, the China Food and Drug Administration (“CFDA”) invited second-round comments from the public regarding proposed amendments to the China Drug Registration Regulations (“DRR”). One of the proposed amendments touches upon patent protection for drugs in China.
The National Development and Reform Commission ( NDRC ) released a new set of Management Measures for Approval and Filing of Outbound Investment Projects ( 境外投资项目核准和备案管理办法) ( New Measures )
on 8 April 2014. The New Measures take effect on 8 May 2014 and will
replace the Interim Management Measures for Approval of Outbound
Investment Projects ( 境外投资项目核准暂行管理办法) ( Original Measures ) which have been in force since 9 October 2004.
On 21 March 2014, CIRC issued the Administrative Measures on the Acquisition and Merger of Insurance Companies (the Insurance M&A Measures )
which will take effect from 1 June 2014. The Insurance M&A Measures
apply to M&A activities whereby an insurance company is the target
for a merger or acquisition. The target insurance company could be
either a domestic or a foreign invested insurer. However, the Insurance
M&A Measures will not apply to any equity investment by insurance
companies in non-insurance companies in China or in overseas insurance
The Regulations on Supervision and Administration of Medical Devices (in
Chinese《医疗器械监督管理条例》, State Council Order No. 650) (the Medical Device
Regulations) were amended by China's State Council on 31 March 2014 and
will come into effect on 1 June 2014. This is the first amendment in
more than a decade since the Medical Device Regulations were first
promulgated in 2000, even though the amendment was initiated eight years
ago in 2006. The 2014 amendment unveils reforms on the regulatory
regime for medical devices market in China from various aspects.
China in the 21st century exemplifies an atmosphere of great opportunity
and intense competition. Against this backdrop, it has become
increasingly common for businesses to adopt a variety of practices in
order to make their products and services competitive. Such practices
may include paying middle-men to promote sales and giving incentives to
buyers directly. However, whilst revenue spikes are undoubtedly welcome,
businesses should bear in mind the potential backlash arising out of
these commercial arrangements. The risk that such arrangements may not
comply with anti-bribery and corruption laws and therefore cause
business significant damage in the long term should not be