编者按：2007年4月，本所与全省发行的英文杂志IN TOUCH(月刊)建立合作关系，由国际经贸法律部负责编写英文稿件，结合外国人、外国企业关心的常见法律事务，分“住在杭州”、“行在杭州”、“创业在杭州”、“生活在杭州”等版块，在2007年5月至2008年4月的每期杂志上刊登一个版面的文章。本所还担任了该刊物的姐妹报纸HANGZHOU WEEKLY的常年法律顾问。以下是本所刊登在IN TOUCH 杂志的部分文章，希望能对未来看到以上报刊的读者有所帮助。

　　After 13 years’ deliberation, the Property Law of China launches on the first day of this month. The legislation is a milestone in China legal progress and the law especially outlines the protections of law for private property.

　　“Property rights” is a terminology with wide coverage in Chinese law. To mention a few: ownership, land use right, mortgage, pledge, lien, and possession, etc. may all fall within the extension.

　　The logic of property law may be simply explained by using 3 Ws: Whose property? What are the right holder’s rights and obligations? How to protect the rights in case of infringement?

　　Still too abstract for you, isn’t it? Do not worry. Some rules of the new law are to be presented for you here.

　　* Registration for property rights of real estates

　　Registration becomes the key word for rules of real estate property rights under the new law. Acquisition or change of property rights for real estates only becomes effective after registration, unless the law stipulates otherwise. Here “real estate”generally refers to the land use right of construction land, appropriated land in the city, and the housing ownership.

　　Just to give you the illustration: if you sign the contract for your new house but fails to register the transfer of tile, you may someday be asked to move out of your house by some Tom you never know before. How could this happen? Yes, if the dishonest owner sells the same house again to Tom and the transfer of tile for the latter deal is registered , according to the law, Tom gets the house while you merely get the damages for breach of contract.

　　Therefore, make sure you register with the authority for acquisition or change of the property rights of real estates.

　　* Ownership of common properties in the community

　　Have you ever been obsessed by the problems such as lack of parking space and encroachment of public footpath in the community? These are also what the new property law cares about and new rules are prescribed to avoid the controversy.

　　The ways and grass areas are of the property owner’s joint ownership, unless otherwise prescribed by law as owned by the state or any individual.

　　The need of property owners for parking space or garages in the community shall be satisfied with priority. Only the residual may be leased, sold or given for free to anybody other than the property owners of the community by the developer.

　　Any other public place, public facilities or property management premises belong to the property owners of the community as well.

　　The use of the commonly-owned property shall be agreed by the property owners and the proceeds shall go to the property owners as well.

　　* Period for construction land use right

　　The Chinese law has put the ceiling for the period of construction land use right: land for housing purpose-70 years, land for industrial purpose-50 years, land for commercial purpose-40 years and land for comprehensive usage-50 years. Do not worry that you may lose the house when the construction land use right to your house expires. The law specifies that for land use right for housing purpose, the right extends automatically after expiration, and the extension of construction land use right for other usages shall be dealt with according to the law.

　　* Objects for mortgage

　　What is also good news is that the law broadens the financing channels.

　　Any properties may be mortgaged except for those forbidden by law. Production device, raw material, semi-finished or finished goods, building, watercraft or aircraft under construction, vehicles, etc. are all legitimate objects for mortgages. Foreign investors may mortgage the construction land use right for industrial usage, factory premises, or private housing for financing according to the law.

　　I am always reluctant to draw the full stop to the article but I have to do it here. If you have any questions about the new law, remember that information is available at Brighteous Law Firm.

　　New Guidelines for Foreign Investments

　　The previous policies for attracting foreign investment made 28 years ago when China was desperate for foreign capitals are no longer fit shoes for the country’s fast pace in its economic transformation from quantity towards quality.

　　On November 7, 2007, a revised Catalog for the Guidance of Foreign Invested Enterprises was released, which substantially re-sorted foreign investments into the categories labeled “encouraged”, “restricted”, or “prohibited”. As the Catalog acts as the basic guidelines for foreign investment in China, it hints that dramatic changes of the system are undergoing. Let’s take a look at where the themes lie.

　　◆To promote the industrial re-structuring. The manufacturing sector beckons to foreign investment in high-tech, equipment manufacturing and new materials industries, but foreign investment in traditional manufacturing industries where China already has possessed “mature technologies and relatively strong production capacity”will receive no welcome. For the service industry, foreign capital is given the invitation to the area of outsourcing and modern logistics, etc.

　　◆To save resources and protect environment. Foreign investments are led to promote the recycling economy, clean production, renewable energy utilization and ecological environment protection. Meanwhile, foreign investment is excluded from the areas of exploiting “important and non-renewable” mineral resources, energy-consuming and highly-polluting projects.

　　◆To adjust the solely exportation-oriented policies. It is one aim of the policies to control the export expansion in order to reduce ballooning trade surplus.

　　◆To coordinate the developments of regional economies. In order to fit into the strategies of development of the Central and West areas and revitalization of the Northeast old industrial bases, the previous restriction of “applied to the Central and West areas only” on some items in the encouraged category is deleted.

　　◆To safeguard the national economic security. According to the Catalog, input of foreign capital in “strategic and sensitive”industries relating to the national economic security is declined.

　　Apparently, as from December 1, 2007, the effective day of the new Catalog, the system has been shifted from being used by foreign investment to using foreign investment.

　　If your have any questions about the new Catalog, please do not hesitate to pick up the phone, and the English version of the Catalog is available for you free of charge.

　　Useful Information:

　　Hangzhou Foreign Trade & Economic Cooperation Bureau

　　Add: 457 Yanan Rd., Hangzhou, 310006

　　Tel: 0571-85175971

　　Zhejiang Foreign Trade & Economic Cooperation Department

　　Add: 468 Yanan Rd., Hangzhou, 310006

　　Tel: 0571-87051960

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*王嫣，本所国际经贸法律部律师，英国杜伦大学国际贸易商业法硕士。