This Week in Asian Law

August 3 - August 9

China

A rare mass protest was reported in Jiangyou, Sichuan, where more than 1,000 persons gathered in front of the city government building to demand the police investigate a serious school bullying incident. Cell phone videos shared on social media showed police forcibly dispersing the crowd and arresting multiple participants. Police later issued a statement saying that two of the school bullies, both juveniles, would be sent to a correctional school and other participants in the incident were given administrative punishments. Authorities denied rumors - which had prompted the protests - that the parents of the school bullies were well-connected. Police also said they punished two persons for spreading false information about the matter online.

Tech financier Bao Fan, founder and former head of Hong Kong-listed China Renaissance, reportedly was released from official custody two and a half years after he was disappeared. Bao was a respected deal-maker with connections to many of China’s top tech companies. His company announced his disappearance in February 2023 and later said that he was “cooperating in an investigation” in China. He is believed to have been held in the anti-corruption Supervision Commission system. Chinese authorities never confirmed or denied his status.

Liu Jianchao, a senior Chinese diplomat who was widely seen as a possible future foreign minister, was taken into custody for questioning, the Wall Street Journal reported. Liu, 61, is head of the Communist Party’s International Department, which manages ties with foreign political parties, and formerly was ambassador to Indonesia and the Philippines. No details were immediately available.

The State Council announced plans to waive tuition fees for children in their final year at public kindergartens and reduce fees for students at eligible private schools. The announcement is part of a phased introduction of free preschool education. In late July, the government announced a centrally funded annual childcare subsidy of 3,600 yuan (about $500) until age three. The moves are intended to encourage couples to have children.

The People’s Bank of China, Ministry of Industry and Information Technology, National Development and Reform Commission, and several other government agencies jointly released a document instructing banks to provide financial support to smart and green manufacturing, semiconductors, industrial mother machines, foundational software, new energy, and other “key technologies” that will drive future growth, rather than companies that compete mainly on price.

The Communist Party Central Committee and State Council ordered officials to issue fewer documents, hold fewer meetings, and give shorter speeches. The new regulations - issued in the form of a document - were explained as an attempt to relieve grassroots officials from excessive bureaucracy and pointless formalities.

The Supreme People’s Court released Judicial Interpretation II on Labor Disputes, effective September 1, 2025, to clarify legal standards in complex employment scenarios such as subcontracting, mixed employment, social insurance, and issuing non-compete agreements. Key provisions include stricter rules for employers seeking to avoid indefinite-term contracts, clarification of liability for companies with complex or overlapping employment structures; mandatory social insurance contributions that cannot be waived by agreement; and detailed requirements for non-compete clauses. The interpretation also discusses labor relationships involving foreign employees.

Police in California arrested two Chinese nationals for allegedly exporting tens of millions of dollars’ worth of AI-related microchips to China without the necessary US government licenses. They were charged with violating the Export Control Reform Act, a felony that carries a maximum statutory sentence of 20 years in prison.

Hong Kong

Judicial authorities said that democracy activist Joshua Wong’s second national security case is being transferred from magistrate’s court to the High Court, where he may be given a life sentence if convicted. Wong, 28, is currently serving nearly five years on a national security conviction for participating in an unofficial primary election. He was charged in June with conspiring with self-exiled activist Nathan Law and others between July 1 and November 23, 2020, to request foreign countries or individuals to engage in hostile activities against Hong Kong or China.

Authorities cancelled the passports of twelve pro-democracy activists who fled abroad and are wanted for their involvement in an unofficial “Hong Kong Parliament.” Police accused them of violating the National Security Law. The twelve are among 19 activists based overseas for whom police issued arrest warrants and bounties in July. The government warned that providing support to any of the wanted persons could lead to criminal penalties.

Hong Kong's new stablecoin law, effective August 1, faced industry backlash over stringent know-your-customer (KYC) rules requiring issuers to verify every holder's identity. Industry sources said the rules would undermine the privacy and efficiency offered by cryptocurrency, potentially reducing Hong Kong's competitiveness in global digital finance. Stablecoins are a type of cryptocurrency designed to maintain a constant value and are usually pegged to a fiat currency such as the US dollar.

Japan

Two weeks after Japan and the US announced a trade agreement, Japan’s chief trade negotiator returned to Washington to ask the Trump administration to stop stacking sectoral tariffs on top of Japan’s negotiated 15 percent tariffs. Of particular importance to Japan, its carmakers are still being charged an industry-wide 27.5 percent tariff in addition to Japan’s negotiated 15 percent tariff. Japan said the stacking was an error, and Bloomberg reported that a senior US official said an announcement was pending to end stacking.

The chief of the Shiga Prefectural police department formally apologized to a former assistant nurse who was retried and acquitted of murdering a patient after serving her 12-year prison term. Police arrested Mika Nishiyama in 2004 on suspicion of murdering a male patient at a hospital. She confessed during interrogation, then pleaded not guilty during her trial but was convicted. Her conviction was overturned in 2020. Last month, the Otsu District Court found fault with the police investigation and ordered the prefectural government to pay Nishiyama financial damages.

A Japanese woman was attacked in a subway station in Suzhou, China, and two Chinese men were assaulted by four men in Tokyo. The separate incidents were not directly connected but highlighted the rising tensions between the two countries. Each government demanded the other arrest and punish the attackers and do more to prevent such attacks on their citizens.

Koreas

A special counsel team accused former first lady Kim Keon Hee of receiving bribes, including a diamond necklace, from the Unification Church in return for business favors. In their application for an arrest warrant, the team also alleged that Kim was a “conspirator” in a stock price manipulation scheme involving a BMW dealer. The arrest warrant was filed after Kim underwent questioning by the special prosecutor. Kim, the wife of impeached President Yoon Suk Yeol, has long been a controversial figure in her own right.

Former South Korean President Yoon Suk-yeol rebuffed a second attempt by prosecutors to question him in detention in connection with new allegations of corruption and power abuses. Yoon framed the attempts to interrogate him as political persecution and human rights abuse. Despite having a court warrant that would have allowed them to remove Yoon forcibly from his cell for questioning, authorities gave up the attempt. The former president is already being tried on charges of attempting an insurrection when he declared martial law in December 2024.

Police raided a church whose pastor, Jeon Kwang-hoon, is an outspoken supporter of former President Yoon Suk Yeol, looking for evidence that Jeon incited a violent pro-Yoon protest at a Seoul courthouse on January 19. Forty-nine persons were convicted of criminal charges last week for participating in the protest, which trashed a portion of the Seoul Western District Court.

Taiwan

Prosecutors arrested six persons suspected of stealing trade secrets from Taiwan Semiconductor Manufacturing Co. (TSMC). The company had reported several former and current staff to authorities on suspicion that they illegally obtained core technology related to next-generation chips. Prosecutors searched the homes of some suspects, as well as the Taiwan premises of Japanese supplier Tokyo Electron, the Financial Times reported. TSMC issued a statement saying it has taken disciplinary action against personnel involved and initiated legal proceedings.

The Ministry of Justice’s Investigation Bureau said it is investigating 16 Chinese tech companies, including some leading players, for allegedly setting up offices in Taiwan and hiring local staff without authorization. The bureau said the companies are suspected of faking their business registration and posing as the branch offices of Hong Kong or other foreign firms. Taiwan law prohibits Chinese investment in some parts of the semiconductor supply chain and requires reviews for other areas. Chinese companies are eager to hire Taiwan’s engineering talent.

A woman born in mainland China who obtained a Taiwan national ID card 17 years ago and was elected head of a Taiwan village in 2022 said she plans to appeal her recent removal from that post based on her alleged failure to renounce People’s Republic of China citizenship. Deng Wan-hua (鄧萬華) was one of five village or ward chiefs who were found in January by the Taiwan Ministry of the Interior to hold PRC nationality. Deng disputes that. The Mainland Affairs Council said that Taiwan’s Nationality Act bars persons who hold the nationality of “another country” from holding office in Taiwan.