This Week in Asian Law

August 18-24

China

The Supreme People’s Court (SPC) and Supreme People’s Procuratorate (SPP) jointly released an Interpretation of Problems in the Application of Law in Criminal Money Laundering Cases (《关于办理洗钱刑事案件适用法律若干问题的解释》), which took effect on August 20, 2024. Among other things, the Interpretation includes virtual asset transactions as one of the methods of money laundering. The SPP said that 2,971 persons were prosecuted for money laundering in 2023 and 1,391 in the first half of 2024. 

The SPC issued a judicial interpretation to guide lower courts in granting punitive damages in food and drug product liability cases. The court said it sought to balance consumer rights protection with economic and social development by allowing “reasonable” damage claims. The interpretation took effect August 22, 2024.

Prosecutors formally charged a Japanese businessman with espionage 17 months after detaining him. The executive, an executive at Astellas Pharma Inc.’s local subsidiary and former senior officials of the Japanese Chamber of Commerce and Industry in China, is the seventeenth Japanese citizen detained in China on espionage charges since China’s counterespionage law took effect in 2014. The detentions have contributed to a decline in the number of Japanese expats in China.

Chinese fast fashion retailer Shein said in its 2023 sustainability report that it found two cases of child labor at its suppliers in 2023. The company said it took swift remediation measures, including tightening its supplier policy. The group filed in June for an initial public offering in London, causing greater scrutiny of its business model.

Hong Kong

The Kowloon City Magistrates Court sentenced a man to eight weeks in prison for insulting the Chinese national anthem by covering his ears and remaining seated while it was played ahead of a volleyball match in 2023. The court released Chan Pak-yui, 22, on bail pending the outcome of his appeal. The judge at his trial rejected Chan’s defense that he suffers from autism and ADHD, which affects his ability to control himself.

The government rejected as “biased” criticisms of proposed cybersecurity legislation contained in an August 20, 2024 Bloomberg news report. In a statement, the government said that 52 out of 53 submissions made during a month-long comment period for the Protection of Critical Infrastructure (Computer System) Bill expressed support for the bill and made constructive suggestions. It did not release the content of the suggestions. Bloomberg’s article said US companies feared the law could give the government “unusual access to their computer system.”

Japan

The ruling Liberal Democratic Party (LDP) said its 1.1 million dues-paying members will vote on September 27 to choose a new leader who will also become Japan's prime minister. Prime Minister Fumio Kishida announced last week that he will not seek a new term. The party election committee set a 15-day campaign period, instead of the usual 12 days, to give voters more time to study the candidates’ policies, and urged candidates to keep their campaigns frugal.

The Supreme Court upheld a lower court order that the Hokkaido Prefecture government should pay 550,000 yen to a woman who was forcibly removed after heckling then-Prime Minister Shinzo Abe during a 2019 speech. The woman shouted her opposition to tax hikes and the ruling party as Abe spoke in front of the Sapporo train station. Hokkaido police grabbed her shoulder and arm, removed her from the venue, and followed her for an hour. The women sued for psychological damages. The Sapporo High Court said the police actions were illegal, and the Supreme Court agreed.

Koreas

An appeals court declined to hand down a death penalty to the man who killed two persons and injured twelve in an attack on random strangers last year. Choi Won-jong, 23, was convicted of driving a car into pedestrians outside a department store and then stabbing persons inside the store. The district court sentenced him to life in prison, rather than death, due to his diagnosis of schizophrenia. The prosecutor appealed but the Suwon High Court upheld the lower court’s sentence.

The Seoul Central District Court declined to challenge the Korean Methodist Church’s decision to discipline one of its pastors. The church suspended Pastor Lee Dong-hwan of Glory Jeil Church for two years after he presided over a blessing ritual for sexual minorities at a queer festival in 2019. The pastor sued, but the court said Lee needed to prove that the disciplinary action was unjust under church law.

Police said they were investigating an online news site linked to Korean-American pastor Choi Jae-young on suspicion of violating the National Security Act. The website features articles that praise the North Korean regime. Choi recently made headlines in South Korea when he released a video of himself giving first lady Kim Keon Hee an expensive handbag as a gift, and accused her of abusing her power.

Taiwan

The Taipei City Education Department began publicly disclosing the names of preschool teachers who have been banned from working in schools due to allegations of child abuse. Twenty-two names have been disclosed so far. The department said it would also strengthen its inspection mechanisms.

The Taiwan High Court convicted eight active-duty military officers of spying for China and sentenced them to up to 13 years in prison. The court said important secrets were leaked and national security was endangered. Earlier this month, China’s Ministry of State Security claimed to have uncovered more than 1,000 cases of Taiwanese espionage in recent years.