Tighter control, more freedom

To accompany our review of the leading deals of 2010, we asked our readers to identify the key legal issues that will face business in the coming months. By Robin Weir

To complement our review of the transactions that defined 2010 (see Deals of the year, part two), we asked our readers what they think will keep them busy in the near future.

The results illustrate a tightening of control in some areas, but liberalization in others. The PRC Tort Law, which came into effect in July last year, is having an impact – not least in intellectual property circles, which are still also coming to terms with the revised PRC Patent Law (see Tort law has an impact on IP matters). The PRC Anti-monopoly Law and its recent subsidiary regulations on price fixing and other matters are changing the way business is done. Labour issues are causing worry.

More broadly, the environment for foreign investment is changing. In early February, the State Council published a circular instituting a national security review process for certain foreign investments. The new procedures, which are effective from 5 March, are sure to have an impact (see China introduces national security review of foreign investments on page 5). On a brighter note, the world of private equity and venture capital is alive with anticipation following the introduction of a pilot scheme in Shanghai which appears to allow foreign limited partners to make investments in PE funds in foreign currency.