I might not be smart enough to figure this all out but it seems to me that China is taking aim at lawyers from foreign countries who are practicing in their country (China) -and in this case Shanghai.
Less I steer anyone wrong, please take a look at China Law Blog for the story and a read into an interview that took place with one of China Law Blog's own.
I give China Law Blog a lot of points for
1. turning the story over to a credible journalist, China Confidential (May 11th) to break and
2. for recently being recognized in Businessweek's blogspotting.
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