This Week in Asian Law

September 1-7

China

The Supreme People's Court Second Interpretation on the Application of Law in Labor Dispute Cases (最高人民法院关于审理劳动争议案件适用法律问题的解释(二)) took effect on September 1, 2025, taking aim at a number of widespread employment practices and addressing new types of disputes. One of the most discussed provisions invalidates any agreement between employer and employee to waive social insurance contributions; such agreements have been common in small businesses. The document also addresses rules for hiring foreign employees, the liability of representative offices and parent companies, penalties for failing to have written contracts, non-compete clauses, and reinstatement after wrongful dismissal. Some controversial provisions included in a December 2023 draft were dropped, but the final version still broadens employer obligations and increases compliance risks for multinational companies operating in China.

The government and some companies are intensifying efforts to change the overtime work culture known as “996,” meaning working from 9 am to 9 pm, six days a week. Despite being outlawed in 2021, extreme overtime persists, especially in the tech sector, due to aggressive performance targets, low wages, and employees’ desire for job security. Analysts differ on whether the anti-996 campaign is a response to domestic price wars, a societal shift, or an attempt to align with international standards such as the EU Forced Labor Regulation.

The Ministry of Public Security announced three typical cases in which hackers illegally accessed drone flight control systems in order to bypass no-fly zones and altitude limits. The hackers then profited by offering illicit services or reselling modified drones. The ministry said drone control systems are protected computer information systems and any tampering with or circumvention of restrictions is a crime.

Hong Kong

A panel of nine jurors unanimously acquitted five defendants but convicted three others of charges connected with an alleged plot to plant explosives at various locations during the 2019 protests. Those convicted could face a maximum sentence of 20 years in prison. The defendants were tried under the United Nations (Anti-Terrorism Measures) Ordinance, enacted in 2002.

The Hong Kong Court of Appeal rejected an application by Portuguese national Joseph John to appeal his five-year prison sentence under the National Security Law. John, the former head of the tiny, now-defunct UK-based Hong Kong Independence Party, pleaded guilty to conspiring to incite secession through social media posts. His lawyer argued unsuccessfully that the law’s mandatory minimum sentences should not apply to the conspiracy charge and that John’s guilty plea should therefore trigger a reduced sentence.

The High Court ordered on-demand food delivery platform Foodpanda to pay more than HK$1.3 million (US$167,000) in compensation to a worker who was injured during a tropical storm five years ago, ruling that the company failed to ensure the employee’s safety in extreme weather. Foodpanda’s parent company, the Berlin-based Delivery Hero, had said the platform warned its workers about the worsening weather and that they were free to continue taking orders at their own risk.

More than 180 workers at Swire Coca-Cola staged a rare strike to demand the company reinstate a driver whom the union said was hastily dismissed from his job after a traffic accident. More than a hundred food and distribution workers arrived at the company’s Sha Tin factory at about 8 a.m. on September 5 to protest and demand a dialogue over the firing. The union said it suspected that the driver was targeted because he was a union member.

Japan

Japan and the United States signed a memorandum of understanding reaffirming Japan’s pledge to invest $550 billion in the United States, and in return US President Trump signed an executive order lowering tariffs on Japanese auto exports from 27.5 percent to 15 percent. The two countries had agreed on the lower tariff in July, but Japan later objected that the US was mistakenly stacking the 15 percent on top of the previous rate. Despite the renewed investment pledge, the two governments continue to hold differing views about the nature of the investments. Trump said in his executive order that the investment targets will be selected by the United States.

The government approved the launch of a comprehensive support system for victims of serious crimes and their bereaved families. Beginning on January 13, 2026, the program will provide free legal aid to victims (or their survivors) of serious attacks, sexual assault, or homicide who have assets of ¥3 million (US$20,240) or less. Lawyers will help them with damage reports, complaints, settlements, and lawsuits.

Police in Kanagawa Prefecture admitted serious failures in handling a stalking case that ended with the murder of 20-year-old Asahi Okazaki by a former boyfriend. The victim and her family had repeatedly reported the stalking to police, but the police underestimated the danger and failed to share the information or take any preventative measures. The prefectural police and National Policy Agency said they have punished 43 officials. The National Police Agency has called for stronger oversight and cooperation in handling personal safety cases nationwide.

Koreas

Legislators and experts clashed at a public hearing about the ruling Democratic Party’s proposal to restructure the prosecutors’ office. The plan would replace the current prosecution office with a Public Prosecution Office and a Serious Crimes Investigation Agency, completely separating investigative and prosecutorial roles. Legal experts who testified at the hearing were divided. Some supported the plan as a way of curbing prosecutorial powers, while others said it raised constitutional issues and urged an incremental approach.

The South Korean government launched a special amnesty program that allows undocumented ethnic Koreans to apply for legal residency if they can demonstrate cultural ties and pass background checks. The program, which accepts applications until November, aims to promote inclusion, address labor shortages, and reduce the number of undocumented foreigners.

South Korea’s ruling Democratic Party is pressing ahead with a bill to establish a special tribunal for insurrection cases, despite warnings from the judiciary that it could politicize the courts and undermine judicial independence. The proposal would allow a committee comprising legislators, judges, and bar association members — but excluding the main opposition party — to nominate tribunal candidates. Critics said such a tribunal would select judges who are aligned with political interests, undermining the constitutional right to a fair trial.

The South Korean government expressed regret and concern for its citizens’ rights after US federal law enforcement agents raided a Hyundai Motor-LG Energy Solution battery factory construction site in the US state of Georgia. US officials said they arrested 475 persons, while reports from Seoul said about 300 were South Koreans. They were accused of working without legal authorization or entering the US illegally. The South Korean automaker, which operates two factories in the US, said in a statement that none of those arrested were employed directly by the company. Reports from Seoul said they were employees of Hyundai’s partner firms who were in the US on short-term business visas or through the US visa waiver program.

Taiwan

The Mainland Affairs Council (MAC) urged the legislature to investigate whether former Deputy Legislative Speaker Hung Hsiu-chu broke the law by attending China’s military parade on September 3 to mark the 80th anniversary of defeating Japan in World War II. Hung was among several officials of the Nationalist (Kuomintang or KMT) Party who attended the parade in Beijing. Taiwan’s law bars current and some past officials from attending such events; it also bars individuals from cooperating with Chinese political or military organizations so as to “affect” Taiwan’s national security or interests. The MAC said that the Legislative Yuan, where Hung served from 2012-2016, should decide whether her activities in China fell within the prohibited zone.

The Taipei District Court said former Taipei Mayor Ko Wen-je (柯文哲) could be released from more than a year of detention upon payment of NT$70 million (US$2.29 million) in bail. Ko, who broke down in tears several times during his bail hearing, did not immediately decide whether to post the bond. Ko, who was the 2024 presidential candidate of the Taiwan People’s Party, has been held incommunicado in the Taipei Detention Center on corruption charges. He and a dozen other persons were indicted in December 2024 for alleged illegality in connection with a major real estate development project during Ko’s time as mayor. He maintains that the charges are politically motivated and that his treatment has been inhumane.

A member of the Control Yuan opened an investigation into road names that may contain discriminatory names of Taiwan’s indigenous peoples. Upay Radiw Kanasaw (鴻義章) said the characters “fan” (番) and “man” (蠻) have the connotations of “barbarian” or “primitive” in reference to the Austronesian-speaking tribes that inhabited Taiwan before the arrival of Han Chinese.

At a ceremony marking Armed Forces Day in Taipei, President Lai Ching-te stressed the need for strong defense capabilities and national unity against what he called Beijing's attempts to alter the status quo in the Taiwan Strait. He told military personnel that peace comes from the resolve to resist aggression.