We highlight the practical elements for enterprises to note when implementing the resumption of work.

1. Closed-loop management

Enterprise should implement a closed-loop pandemic control mechanism that is acknowledged by the authorities. Namely, a closed-loop refers to area zoning and category-based management for different areas to prevent physical contact between different groups of employees such as in production, common areas, or meeting rooms, as well as establishing no-contact with external individuals such as logistic suppliers (external individuals must hold a negative nucleic acid test certificate within 48 hours and on-site negative antigen test results). As result, employers should ensure the employees are segregated into groups, establish the work environment to permit one metre social distancing within the workplace, and restrict or limit physical contact between such groups to isolate positive cases to one group and prevent cluster outbreaks.

2. Emergency response plan

Enterprises shall formulate emergency response plans for COVID-19 outbreaks in the workplace. Any employees with abnormal antigen detection and nucleic acid detection should be reported to the official in charge and the Centre for Disease Control and Prevention. Transportation and treatment of those diagnosed with COVID-19 should be priorly established with the local government and temporary isolation measures should be implemented for close-contact staff. Large enterprise shall set up a shelter in the factory area.

3. Stock of Anti-Pandemic Materials

Enterprises should maintain a stock of anti-pandemic materials and purchase antigen self-test kits, face masks, alcohol-based disinfectants, hand sanitizers, infrared thermo-detectors, thermal imaging detectors, protective suits, goggles, disposable gloves, etc. whenever necessary. A minimum supply of anti-pandemic materials for 14 days is recommended. All used protective items shall be disposed properly and safely.

The Guideline also adds that enterprises should resume work and production under the guidance of district governments on a “one-on-one” basis. We suggest that enterprises consult with professionals to ensure the resumption of work is compliant with the local guidelines and district government.

This content appears as a courtesy of Horizons Corporate Advisory, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.horizons-advisory.com. 

The post Resuming work for industrial enterprises in Shanghai? appeared first on China Collaborative Group.

The coronavirus crisis has clearly become an economic challenge for the whole world. The spread of the virus represents both a negative supply shock and a negative demand shock across the economy at large. Through a variety of intermediate inputs in economies with a strong division of labour, this quickly leads to production restrictions in other companies and is ultimately detrimental to the smooth functioning of international value chains.

Since January, waves of city-wide closures and quarantines in China have shut down factories in the world’s second-largest economy, disrupting supply chains globally. Economies in Europe can clearly feel this. We can already see that a delay in delivery is happening. This can be traced back to a shortage of goods, production capacity and supplies. Also, export restrictions as a consequence of the coronavirus crisis play its role in this development.

As a reaction to this unknown situation companies will tend to reduce their business relations especially with Chinese goods. At the same time, it should be considered how to deal with existing contracts. From the legal perspective, it has to be examined whose law is applicable. Companies should assess if an agreement conferring jurisdiction was concluded for the benefit of only one of the parties. Both German law and Chinese law have the legal institution of material changes to the basis of the contract. This legal institution plays an important but at the same time subsidiary role. Therefore, it has to be evaluated very closely if a company can rely on this.

It became evident that problems in customs clearance processes, export control and statutory management requirements are the results of this new and unknown situation. A breach of obligations or interference due to force majeure could occur.

It now appears likely that some places will experience a local resurgence as restrictions are lifted and economies reopen. However, it will probably take months to ramp up operations and catch up on lost output.  So, it is important to take actions now. Therefore, we would like to give you the following recommendations to help you with this situation:

• It can be helpful to check on your contractual relationships to see if they are in need of reworking in the form of additional agreements due to situations like this.

• Also, there are numerous facilitations of tax and customs issues than can help your business with current liquidation problems.

• There are public economic help programs for help dealing with the crisis.

• There are changes to customers border processes, moving goods and clearing customs during the coronavirus outbreak: customs simplifications like AEO or simplifies procedures.

These measures should help to stabilize employment and company liquidity during a temporary crisis. Emergency response plans can help to deal with the effects on supply chains due to the crisis. If you feel that your company is affected by this crisis, don’t hesitate to contact us.

 This content appears as a courtesy of Möllenhoff Rechtsanwälte, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.ra-moellenhoff.de. 

The post CCG GERMANY: Impact on supply chain due to coronavirus appeared first on China Collaborative Group.

Die sog. Proximity-Tracing-App (nachfolgend: «PT-App») soll helfen, die Ausbreitung des Coronavirus einzudämmen und dazu beitragen, Infektionsketten zu durchbrechen und besser nachzuverfolgen. Sie wird das Contact Tracing ergänzen, das die Kantone seit dem 13. Mai 2020 wieder durchführen. Gemäss dem Bundesamt für Gesundheit (BAG) soll die Nutzung der PT-App freiwillig und kostenlos sein. Die PT-App wird nur während der Dauer der Corona-Krise zur Verfügung stehen.

2. Was ist der aktuelle Stand zur PT-App?

Zur Einführung dieser App bedarf es einer gesetzlichen Grundlage, welche zurzeit ausgearbeitet wird und im Juni vom Parlament genehmigt werden soll. Bis dahin erfolgt – gestützt auf die Covid-19-Verordnung Pilotversuch Proximity-Tracing vom 13. Mai 2020 – eine Testphase der App. Getestet wird die App von Mitarbeitenden der ETH in Lausanne und Zürich, von Armeeangehörigen und Spital-Personal sowie der eidgenössischen und kantonalen Verwaltungen ab dem 18. Mai 2020. Die Gesetzesgrundlage soll in der Sommersession des Parlaments finalisiert werden. Danach soll die App landesweit allen Bürgern kostenlos zur Verfügung stehen.

3. Wie funktioniert die PT-App?

Wer die PT-App nutzen will, muss sie auf dem Smartphone installieren und stets Bluetooth eingeschaltet haben. Falls sich zwei Nutzer der PT-App länger als 15 Minuten und mit weniger als 2 Meter Abstand zueinander aufhalten, werden automatisch die Daten beider Nutzer anonymisiert auf den Geräten gespeichert. Die Abstandsmessungen via Bluetooth werden in den Test- und Pilotphasen fortlautend weiter kalibriert, damit die Genauigkeit verbessert werden kann. Durch die von Google und Apple in Aussicht gestellten Anwendungsschnittstellen (API) könne die Genauigkeit der Messung zudem weiter erhöht werden. Wird in der Folge einer der beiden Nutzer positiv auf das Coronavirus getestet, erhält er vom kantonsärztlichen Dienst einen sog. Covdicode. Jeder andere Nutzer, der sich im Zeitraum der Ansteckungsgefahr in der Nähe der positiv getesteten Person (länger als 15 Minuten, näher als 2 Meter) aufhielt, wird durch die PT-App entsprechend informiert und kann sich sodann an die in der App genannte Hotline wenden, um die weiteren notwendigen Schritte abzuklären.

In diesem Zusammenhang weist das BAG darauf hin, dass Wände zwar die Übertragung des Bluetooth-Signals bis zu einem gewissen Grad blockieren könnten, Plexiglasscheiben hingegen, wie sie zurzeit in der Gastronomie oder Einkaufsläden zunehmend eingesetzt werden, durch die App nicht erkannt werden. Ebenso wenig könne erkannt werden, ob die App-Nutzer Masken tragen. In diesen Fällen wird ein Kontakt zwischen zwei Personen trotzdem registriert. Es kann also nicht ausgeschlossen werden, dass es zu Falschmeldungen kommt. Wie gut die PT-App tatsächlich funktioniert, wird sich wohl erst in der konkreten Anwendung zeigen.

4. Ist der Datenschutz gewährleistet?

Es kommt eine dezentrale Datenspeicherung zu Anwendung. Das bedeutet, beim Herunterladen wird nicht mit einem zentralen Server kommuniziert. Bei einer Begegnung mit einem anderen App-Nutzer wird via Bluetooth ein verschlüsselter Code ausgetauscht, dieser wird lokal auf dem Smartphone für 21 Tage gespeichert und danach wieder gelöscht. Im Fall einer Infektion wird der Server jedoch zum Austausch der verschlüsselten Codes von infizierten Personen verwendet. Der Server der App befindet sich in den Datencentern der Schweizerischen Eidgenossenschaft und wird von der Bundesverwaltung gehostet. Google und Apple haben angekündigt, offizielle Contact-Tracing-Apps zu unterstützen, aber keine Daten aus der App zu speichern. Damit die PT-App funktioniert und Zugriff auf Bluetooth hat, muss die Standort-Funktion freigegeben werden. Die App verwendet jedoch keine Satelliten-Standortortung (GPS).

Der Bundesrat sichert den jederzeitigen Datenschutz zu. So würden die Prüfsummen keine Informationen zur Person des App-Nutzers, zum Standort oder zum verwendeten Gerät enthalten. Allerdings werden wohl einige wenige anonyme Daten zu Statistikzwecken verwendet und zwar u.a. folgende Informationen: Anzahl erzeugter Aktivierungscodes pro Kanton, Anzahl der Anrufe bei der spezifischen Hotline für die benachrichtigten User und die Anzahl der App-Downloads vom Apple oder Google-Store. Zudem könne die Liste mit den anonymen Schlüsseln der infizierten Personen an Dritte weitergegeben werden, welche diese zum Abruf durch die anderen Benutzerinnen und Benutzer zur Verfügung stellen. Noch ist unklar, wer Dritte sind und in welchem Umfang diese Daten weitergegeben werden.

Dieser Beitrag wurde am 15.5.2020 erstellt. Weitere Informationen entnehmen Sie bitte den Behördenseiten. Aufgrund der aktuellen Lage sind Änderungen – insbesondere durch Behördenanweisungen – jederzeit möglich.

Quellen:

• https://www.newsd.admin.ch/newsd/message/attachments/61307.pdf
• https://www.newsd.admin.ch/newsd/message/attachments/61310.pdf
• https://www.bag.admin.ch/dam/bag/de/dokumente/cc/kom/covid-19-faktenblatt-swiss-pt-app.pdf.download.pdf/BAG_Faktenblatt_Coronavirus_Swiss-PT-App.pdf
• https://www.admin.ch/gov/de/start/dokumentation/medienmitteilungen.msg-id-79103.html

This content appears as a courtesy of HütteLAW, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.huettelaw.ch.

The post CCG SCHWEIZ: Proximity Tracing — Die COVID-19 Warn-App (Proximity Tracing – The COVID-19 Warning App) appeared first on China Collaborative Group.

On 30 January 2020, the World Health Organization declared the 2019-nCoV (COVID-19 aka the coronavirus) outbreak a Public Health Emergency of international concern. From that moment going forward, every nation, more and more, has been forced to cope with a multitude of COVID-19 related problems concerning their population’s health and their country’s economic wellbeing. Throughout this scenario, enterprises have had to act quickly to mitigate the onslaught of dilemmas caused by COVID-19 pandemic and find solutions to keep their operations afloat during such an unprecedented moment.

New challenges, new risks

With COVID-19 come a new set of challenges and risks for enterprises and the advisors they trust to guide them through the global crisis. What are companies to do in the face of mandatory quarantines, large-scale lock-downs and the shutting down of non-essential businesses what is sure to be an abnormally extended period of time?

“At the present moment, we advisors, as law and tax experts, have a duty and obligation to be very concrete in the assistance we provide to entrepreneurs,” says Lucia Myriam Netti, Horizons Corporate Advisory regional partner for Europe, Russia and Belarus (Horizons Italy).

“Now is not the time to delve into philosophical principles or theoretical discourse with clients; what we are now called to do at this time, during this uniquely problematic crisis, is to find practical solutions that support enterprises in ways to safeguard them and their employees now, and for the foreseeable future” adds Gad Matalon managing partner of Milan-based Lawyalty Avvocati Associati (CCG Italy).

Through a collaborative effort between the Horizons Group and the CCG Association, whose advisory membership represents 20-plus countries, CCG advisors have created and implemented a crisis plan to support China-invested enterprises.

“Our plan provides enterprises with the right instruments to mitigate the disorder brought upon by the coronavirus, continues Ms. Netti. “Along with crisis best-practices advice for their operations, our team has laid out a plan for responding to and benefit from the many measures put forth by the State Council of the People’s Republic of China to assist companies through this difficult period.”

The fight against COVID-19

It has been asserted that China was the first country hit by the COVID-19 outbreak and, consequently, has been the first to implement concrete, step-by-step methods for combating the coronavirus. It has been a multipronged response designed to take direct action on both medical and economic front simultaneously. Therefore, one of the pillars of the Horizons-CCG crisis plan is to have China-invested enterprises mimic the China response as part of their crisis management effort.

“Beyond the nuts and bolts of our plan, it calls for enterprises to be wholly disciplined, driven to be aggressively proactive and diligent in carrying out the plan”, says Ms. Netti. “This effort will best position workforces for a return to full operations and profitability, at a time when many other countries, and their own workforces, are stuck in the lock-down phase of their fight against COVID-19.”

According to Mr. Matalon, safety is the path to success.

“The first action for managing one’s China investment in a ‘profitable way’ — at this particular time — is to implement a ‘correct’ safety management system to handle the workplace and operations involving employees of the foreign-invested company in China. There are some procedures and actions that companies constituted in China have to implement mandatorily; though these should not be confused with government investigations activated by the Chinese municipalities for the consent and approval of the resumption of the operations.”

CCG in action

For the past three weeks, the CCG Association and Horizons Italy have worked side-by-side with enterprises who have one or more subsidiaries in China. The effort has supported, particularly in Italy, a total of 285 enterprises in their return to full operational mode through the establishment of appropriate policies and instruments. According to statistics provided by Horizons’ Ms. Netti and fellow CCG member Gad Matalon, these businesses have recovered an estimated €855,224,357 (approximately €3million per company). Among the enterprises include companies active in the automotive, mechanical, chemical, luxury, machinery, food and beverage sectors.

Non-compliance with COVID-19 safety measures in China can have serious consequences in terms of legal responsibility for a company; the penalty can be substantial. What’s more, the legal representative of the company will be fully responsible for the inaction. Also, it will be considered the liability of the foreign employer to oversee detached employees (In the matter of Italy, there are large numbers of Italian national serving as detached employees Italian company’s Chinese subsidiaries.)

“The need to comply with Chinese rules and implement the necessary safety procedures is essential for protecting employees and avoiding running afoul of the authorities in both China and in Italy,” adds Ms. Netti. “However,  legal compliance is not the ‘only one reason’ to comply with such rules, even if it appears to be the most important. This aspect of safety — compliance with recent laws reforms and their implementations in the workplace — is the natural precondition and the first step for companies to achieve profitability in China.”

In the battle against COVID-19, some China foreign-invested companies who are committed to tackling the crisis in their country might ask, “How can act in China, when I have so much to face here in my own country.”

Working locally to achieve global results

To conduct and succeed in business today means to manage one’s operations in a wholly efficient way — be they at home or abroad. And while western countries struggle economically with the deluge COVID-19 has brought upon, in China, companies, with the help of the State Council, are moving fast-forward in their recovery by accepting the responsibility for safety, following a strict programme to avoid risk and remaining unified in their effort.

CCG Association and Horizons Group support enterprises with investments in China by carefully aligning their China-based operations with best practices governance and compliance with the rules of the State Council of the People’s Republic of China, and their own countries being the best bridge to abide by both laws regulations.  

The Horizons Group has been operating for more than 30 years in China. And in cooperation with the members of the CCG Association, we are intent on a future of cross-border bridgebuilding worldwide, where for us — and for you — safety is the first step success.

If you have questions or would like to know more about the COVID-19 corporate crisis services available to you from Horizons, please contact us at +86 21 5356 3400 or email crisis.services@horizons-advisory.com.

This content appears as a courtesy of Horizons Corporate Advisory, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.horizons-advisory.com. 

The post CCG in action: now is the time for corporate advisors to step up and provide concrete assistance to companies doing battle with COVID-19 appeared first on China Collaborative Group.