China’s State Council issued the Tentative Regulation on Publication of Enterprise Information (the “Regulation”) on August 7, 2014 requiring government agencies and enterprises in China to publish information about administrative penalties on public websites beginning on October 1, 2014. On August 19, 2014, another five sets of rules were issued by the State Administration for Industry and Commerce (the “SAIC”), detailing the requirements of the Regulation (the “Implementation Rules”). This will include unfair competition, antitrust, GMP and bribery settlements. The major requirements for the publication of administrative penalty information under the Regulation and its Implementation Rules include: • Within 20 working days after an administrative penalty is imposed, a company must publish the information on the Enterprise Credit Information Publication System (http://gsxt.saic.gov.cn), which is a centralized enterprise database run by the State AIC ( “ECIPS”). • Local AICs must publish their administrative penalty decisions on ECIPS within 20 working days after such decisions are made. • Other government agencies (e.g., the China Food and Drug Administration) must also publish their penalty decisions on ECIPS or other public websites. • The information on ECIPS will remain publicly available for five years, and will contain the date, case number, key facts, legal basis and results of each administrative penalty decision. • State secrets, individual private information and business confidential information cannot be disclosed on ECIPS without prior approval by the county AIC that publishes the information. • If a company fails to publish information about a penalty on time, and fails to correct that deficiency, a local AIC could place it on the List of Enterprises in Abnormal Operation, or on the List of Enterprises in Serious Violation of Law. Though it remains to be seen how the Regulation and its Implementation Rules will be enforced, they could significantly change multinational healthcare companies’ risk profiles under various listing blacklisting rules and affect strategies in administrative penalty proceedings such as AIC commercial bribery cases.GLOBAL LIFE SCIENCES: CHINA UPDATE Page 2 If you have any questions regarding this update, please contact the Sidley lawyer with whom you usually work or Chen Yang Partner +86.10.5905.5600 [email protected] Lei Li Partner +86.10.5905.5505 [email protected] Sidley China Life Sciences Practice Sidley has a powerful, fully integrated life sciences practice serving multi-national pharmaceutical, biotechnology, medical device and food companies in every aspect of their business operations in China. Sidley’s Foreign Direct Investment, general Commercial, Corporate, M&A/Joint Venture, Antitrust, FCPA, Licensing, IP, provincial government work, as well our Regulatory practice permits us to serve virtually every legal need of our life sciences clients in China. Sidley is the first international law firm to establish a stand-alone, comprehensive food and drug regulatory practice in China. As an integral part of our Global Life Sciences practice, we bring our knowledge of industry practices in the U.S. and EU to each project in China and help develop global Standard Operation Procedures (SOPs) and benchmark best practices. For further information on the China Life Sciences Practice, please contact: Chen Yang Partner +86.10.6505.5359 [email protected] Zhengyu Tang Partner +86.21.2322.9318 [email protected] Yuet Ming Tham Partner 852.2509.7645 [email protected] Joseph Chan Partner +86.21.2322.9328 [email protected] Sidley Global Life Sciences Practice On three continents, Sidley’s Global Life Sciences Practice team offers coordinated cross-border and national advice on Food, Drug and Medical Device Regulatory, Life Sciences Enforcement, Litigation and Compliance, Healthcare Regulatory, Products Liability, Intellectual Property, Corporate and Technology Transactions, Securities and Corporate Finance, International Trade and Arbitration, FCPA/Anti-Corruption, Antitrust/Competition, Environmental/Nanotechnology. Globally rated as one of the top life sciences practices, our team includes former senior government officials, medical doctors and leaders in various life sciences fields. For further information on the Global Life Sciences Practice, please contact: Scott Bass +1.202.736.8684 +1.212.839.5613 [email protected] Paul E. Kalb, M.D. +1.202.736.8050 [email protected] James C. Stansel +1.202.736.8092 [email protected] M. Patricia Thayer +1.415.772.7469 +1.650.565.7569 [email protected] Michael W. Davis +1.312.853.7731 [email protected] David J. Zampa +1.312.853.4573 [email protected] To receive future copies of this and other Sidley updates via email, please sign up at www.sidley.com/subscribe BEIJING ∙ BOSTON ∙ BRUSSELS ∙ CHICAGO ∙ DALLAS ∙ GENEVA ∙ HONG KONG ∙ HOUSTON ∙ LONDON ∙ LOS ANGELES NEW YORK ∙ PALO ALTO ∙ SAN FRANCISCO ∙ SHANGHAI ∙ SINGAPORE ∙ SYDNEY ∙ TOKYO ∙ WASHINGTON, D.C. Sidley Austin refers to Sidley Austin LLP and affiliated partnerships as explained at www.sidley.com/disclaimer. www.sidley.com
- Checklist Checklist: Managing a dawn raid
- How-to guide How-to guide: Understanding penalties for breach of the Bribery Act 2010 (UK) Recently updated
- How-to guide How-to guide: How to prevent bribery and corruption (UK) Recently updated