This Week in Asian Law

September 14-20

China

The Foreign Ministry said that a phone call between Chinese President Xi Jinping and US President Donald Trump was constructive and positive. It also signaled willingness to allow the sale of TikTok to American buyers as long as the terms comply with Chinese law and reflect the interests of both sides. US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng (何立峰) reportedly reached a framework agreement on TikTok ownership days earlier. On the US side, Trump posted that he and Xi will meet face-to-face in October at the Asia-Pacific Economic Cooperation meeting in South Korea and will discuss trade, illicit drugs and Russia's war in Ukraine.

The State Administration for Market Regulation said that US chipmaker Nvidia Corp. violated China’s Anti-Monopoly Law when it acquired the Israeli technology company Melanox in 2020. The market regulator said it would expand its investigation. A Nvidia spokesperson said the company had followed the law in all respects.

The Ministry of Commerce and eight other ministries announced new measures to promote service consumption. The plan outlined nineteen areas for action, including allowing more foreign investment in services, developing the insurance market so that consumers can purchase more health and elder care services, increasing the provision of child care services, expanding visas so more foreigners can visit China and spend money on services, and so on.

Two drunk Chinese teenagers must pay 2.2 million yuan (US$309,000) to the hotpot restaurant chain Haidilao and another catering company after urinating in a hotpot broth at a Haidilao restaurant in February. A Shanghai court found that the teens were liable for damaging property rights and reputation and ordered their parents to pay damages and legal fees. After a video of the incident went viral, Haidilao compensated more than 4,000 diners who visited the branch between February 24 and March 8, offering full refunds plus ten times their bill amount.

Hong Kong

In his fourth annual policy address to the legislature, Chief Executive John Lee outlined measures to stimulate the sluggish economy, including accelerating work on the Northern Metropolis tech hub mega-project, promoting AI as a core industry with government investment support, and increasing non-local university quotas from 40 percent to 50 percent. The government will increase subsidized housing supply and facilitate elderly Hong Kong residents retiring across the border in Guangdong and Fujian provinces.  

  • The Northern Metropolis will have its own set of laws designed to speed up its development, with statutory procedures simplified and some funding approvals allowed to bypass the legislature. The government will set up companies to manage the zone’s industrial parks.

  • The special tax allowance for parents of newborns will be extended so that parents can enjoy it for two years, up from the current one year. The measure takes effect in 2026/27 and applies to all children under two at year-end. Critics said previous birth incentives failed because of Hong Kong’s limited childcare options and high child-rearing costs.

  • The city will lower the minimum residential property purchase for its investment migration program to HK$30 million, from the current HK$50 million, to attract foreign capital. The program lets foreign nationals and residents of Taiwan, Macau, and mainland China with foreign permanent residency apply for two-year visas by investing at least HK$30 million in eligible assets.

A court sentenced a man to one year of probation for spray-painting “6436” on a public noticeboard on June 4, 2025, the thirty-sixth anniversary of the Tiananmen crackdown. Tsang Kin-fung (曾建峯), 50, pleaded guilty to criminal damage after police identified him through CCTV footage. His lawyer said he acted under the influence of alcohol and showed remorse. The court ordered Tsang attend rehabilitation courses.

Japan

The US used its “golden share” in Japanese-owned U.S. Steel to block the company from stopping production at a plant in Illinois, according to a Trump administration official. The company had announced on Sept. 8, 2025 that it planned to close its Granite City, Illinois, mill at the end of October, but keep employing the plant’s 800 workers until at least 2027. However, on Sept. 19 it said that it would continue to supply raw steel slabs to Granite City “indefinitely.” President Donald Trump allowed Nippon Steel to purchase U.S. Steel earlier this year on the condition that it give the federal government a veto over certain decisions.

Japan’s permanent mission in Geneva rejected criticisms raised by UN human rights rapporteurs that it had failed to provide adequate information and reparations to the victims of sexual slavery in World War II. Japan said South Korean court rulings requiring compensation to victims are violations of international law. A group of UN investigators sent letters in July to Japan, South Korea, China, the Philippines, Indonesia, the Netherlands, and East Timor over what the investigators described as the countries’ failures to “ensure access to truth, justice, remedy, and reparations for survivors.” The governments were given 60 days to respond.

Prime Minister Shigeru Ishiba and European Commission Executive Vice President Stephane Sejourne agreed to enhance Japan-EU cooperation in storage battery supply chains to reduce dependence on China as electric vehicle demand increases. Japanese and European industry groups signed a cooperation memorandum covering critical minerals, storage batteries, recycling, and biotechnology.

Koreas

A presidential spokesman said South Korea will investigate possible human rights violations by American authorities when they raided the construction site of a Hyundai Motor-LG Energy Solution battery factory in the US state of Georgia on Sept. 4. They detained 316 Korean nationals for a week, accusing them of immigration violations, before allowing them to fly home. On Sept. 14, US Deputy Secretary of State Christopher Landau visited Seoul; South Korea’s Foreign Ministry said Landau expressed deep regret for the incident and pledged institutional improvements to prevent recurrence. South Korea’s government launched a task force to push for US visa changes. Most of the detained workers were on short-term business visas.

The presidential office said tariff talks with the US have been stalled over US demands that South Korea provide $350 billion in cash and allow President Donald Trump to decide where it is invested. The two governments reached a broad agreement in July that would lower US tariffs to 15 percent, from the current 25 percent, but they disagree about how Korea will make the promised investment. Korean officials said that $350 billion is 84 percent of Korea’s foreign exchange reserves. It prefers to provide loans and debt guarantees for investment projects chosen by Korean companies.

South Korea’s plan to launch visa-free entry for Chinese tour groups from September 29 through next June drew public criticism. More than 52,000 citizens signed a petition to cancel the program two weeks before launch. Concerns cited by opponents include historical issues, economic competition, and possible spread of the chikungunya virus, a mosquito-borne disease currently appearing in southern China.

The South Korean Cabinet finalized a list of 123 national priorities for the next five years in the areas of political institutions, economic development, foreign affairs, security, and public welfare. The top priority is reforming the constitution to change the presidency from a single five-year term to two four-year terms. The plan also calls for dedicating five percent of government spending to research and development, supporting the AI, bio-health, and semiconductor industries, improving the basic livelihood guarantee system, and gradually raising the retirement age. 

A court ruled that online insults directed at avatars can constitute defamation and ordered an internet user to pay 100,000 won ($72) in damages to each of the five members of the virtual K-pop group PLAVE. The defendant posted derogatory comments on social media in July 2024, saying the people behind the group’s avatars “could be ugly in real life” and gave off a “typical Korean man vibe.” The group is made up of fictional characters, and the identities of the real persons playing them are not known. But the court said that attacks on the avatars could harm the reputations of those people.

The UN Human Rights Office reported that North Korea is increasingly implementing the death penalty, including for watching foreign films and TV shows. The report says at least six new laws that provide for punishment by execution been enacted since 2015. The regime has tightened control over all aspects of citizens’ lives, using surveillance technology and public firing squads to instill fear. It also has expanded forced labor and made escape nearly impossible by ordering troops to shoot persons trying to cross the border.

Taiwan

The All-out Defense Mobilization Agency issued a new 36-page civil defense handbook instructing citizens how to respond should China invade, including preparing emergency evacuation bags, locating bomb shelters via smartphone apps, and recognizing air raid sirens. The handbook warns that any claims of Taiwan’s surrender should be considered false. It also highlights security risks from Chinese-made programs including DeepSeek AI, WeChat, and TikTok that could be exploited during crises.

The Washington Post reported that US President Donald Trump declined to approve more than US$400 million in military aid to Taiwan during the summer as he worked toward a trade deal and potential summit with Chinese leader Xi Jinping. Since returning to office, Trump has sent conflicting signals toward China and Taiwan. Congress grants the administration $1 billion in annual authority to send security aid to Taiwan, but Trump thinks Taiwan should pay for its weapons. President Lai has submitted a supplemental defense spending bill to the Legislative Yuan to pay for a large purchase.

Former Taipei Mayor Ko Wen-je (柯文哲) remained free on NT$70 million (US$2.32 million) bail after the Taipei District Court rejected prosecutors’ appeal of his Sept. 9 release. Ko had been detained for a year on corruption charges including accepting NT$17.1 million in bribes and embezzling campaign donations. Prosecutors had argued that he might subvert witness testimony, but the court said the witnesses have already provided sworn statements.

The New Taipei District Court sentenced a 24-year-old man to death for murdering his wife, mother-in-law, and three-year-old stepson in April and May 2024. It was the first death sentence handed down by a joint bench of citizen judges and professional judges. The convicted man, identified only by his family name, Chang, suffocated his sleeping wife and strangled his mother-in-law and stepson two days later. Taiwan introduced a lay judge system for serious crimes in 2023.