Sinobravo Monthly China Policy Digest-January Edition

2024-02-20

To support our clients and partners in navigating China's dynamic regulatory landscape, Sinobravo is pleased to offer a monthly China Policy Digest. This digest provides detailed updates on new legislation and policy changes that are crucial for foreign-invested enterprises, alongside insights into evolving trends in sectors such as artificial intelligence, the internet, healthcare, life sciences, and new energy vehicles. Designed with the needs of multinational companies, cross-border M&A professionals, including legal and accounting firms, and consultancies focused on China in mind, our Policy Digest aims to be a valuable resource for informed decision-making.

Policy Landscape for Foreign Direct Investment

Adoption of Amendments to Criminal Law in China: On 2 January 2024, the Standing Committee of the National People's Congress (NPC) adopted the Amendments to the Criminal Law (XII), effective from 1 March 2024. This Amendment, comprising eight articles,
addresses the punishment of active bribery offenses and corruption within private enterprises.
Facilitation Measures for Foreigner Entry into China: On 11 January 2024, the National Immigration Administration of China (NIA) officially implemented five measures to ease the entry of foreigners into China for business, study, and travel purposes. These measures aim to support and ensure high-level openness to the outside world and contribute to high-quality development.
China-US Economic and Trade Discussions: On 11 January 2024, Minister of Commerce Wang Wentao held a call with U.S. Secretary of Commerce Raimondo, focusing on the implementation of the key consensus from the San Francisco heads of state meeting. They engaged in in-depth communication on economic and trade issues and discussed the national security border in economic and trade fields between China and the U.S.
China-US Diplomatic Engagement: On 12 January 2024, Liu Jianchao, Minister of the Foreign Liaison Department of the CPC Central Committee, met with U.S. Secretary of State Antony Blinken in Washington, D.C. The meeting aimed to strengthen dialogue and cooperation, advancing the implementation of the San Francisco meeting consensuses and promoting a stable, healthy, and sustainable China-US relationship. They also discussed various international and regional issues.
Premier Li Qiang at World Economic Forum: On 16 January 2024, Premier Li Qiang attended the 2024 Annual Meeting of the World Economic Forum, delivering a special address. He proposed a five-point plan to rebuild trust, enhance cooperation, and foster global economic recovery, emphasizing the construction of a universally inclusive world economy.
Digital Economy and Data Flow Policies: At a luncheon on 16 January 2024, Premier Li Qiang mentioned that China is formulating policies addressing multinational companies' concerns about cross-border data flow and equal participation in government procurement. He affirmed the commitment to regularly listen to foreign enterprises and actively resolve reasonable demands.
Comprehensive Reform Pilots in Pudong New Area: On 22 January 2024, the State Council released the Implementation Program for Comprehensive Reform Pilots in Pudong New Area (2023-2027). The program aims to enhance high-standard market rules, relax market access in Pudong New Area, and explore a tiered data trading mechanism and property rights operation for data resources. It focuses on promoting the orderly opening of public data to business entities.
High-Level Openness in Cross-Border Trade and Investment: On 22 January 2024, the Shanghai Branch of the State Administration of Foreign Exchange issued a circular on a pilot project to further facilitate cross-border trade and investment. The initiative aims to stabilize foreign investment and trade, promoting Shanghai's economy's high-quality development through high-level openness.
Revised Standards for Declaring Concentration of Operators: On 22 January 2024, the State Council issued the revised Provisions on the Standards for Declaring Concentration of Operators, effective immediately. The provisions raised the global and domestic turnover standards for operator concentration declaration, aiming to adjust the thresholds to reflect current economic realities.
Anti-Money Laundering Law Revision Proposal: On 22 January 2024, Premier Li Qiang chaired a State Council executive meeting and decided to submit the draft revision of the Anti-Money Laundering Law of the People's Republic of China to the Standing Committee of the National People's Congress for consideration.
Mainland-Hong Kong Financial Cooperation Initiatives: On 24 January 2024, the People's Bank of China (PBOC) and the Hong Kong Monetary Authority (HKMA) decided to launch six policy initiatives focusing on financial market connectivity, cross-border capital facilitation, and deepening financial cooperation between Mainland China and Hong Kong.
Mainland-Hong Kong Judicial Cooperation: On 25 January 2024, the Supreme People's Court issued the Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters between Mainland courts and the Hong Kong Special Administrative Region. Effective 29 January, the arrangement applies to mutual recognition and enforcement of judgments in civil, commercial, and certain criminal cases.
China-Singapore Visa Exemption Agreement: On 25 January 2024, China and Singapore signed an agreement on mutual visa exemption for ordinary passport holders, effective from 9 February 2024. The agreement facilitates travel between the two countries, requiring visas for activities like work or journalism and stays exceeding 30 days.
China-Japan Economic Cooperation: On 25 January 2024, Premier Li Qiang met with a Japanese economic delegation led by Masakazu Tokura, President of Nippon Keidanren. They discussed enhancing cooperation in scientific innovation, digital economy, green development, healthcare, and elderly care, aiming for mutual benefits and a higher level of synergy between the two nations.
China-Thailand Visa Exemption Agreement: On 28 January 2024, China and Thailand signed a mutual visa exemption agreement in Bangkok, to take effect from 1 March 2024. This agreement aims to strengthen bilateral relations and ease travel between the two countries.

Key Verticals Policy Complications

Generative Artificial Intelligence

Guidelines on Responsible Research by MOST: On 21 December 2023, the Ministry of Science and Technology (MOST) issued the "Guidelines on the Code of Conduct for Responsible Research (2023)." These guidelines stipulate that generative AI should not be used to directly generate declaration materials and should not be listed as a co-completer of research results. The guidelines emphasize the importance of adhering to scientific and technological ethics throughout the research process.
Zhejiang Province's AI Industry Development: On 10 January 2024, the People's Government of Zhejiang Province released the "Guiding Opinions of the General Office of the People's Government of Zhejiang Province on Accelerating the Development of the Artificial Intelligence Industry." This directive focuses on seizing strategic opportunities in the development of general artificial intelligence to promote the high-quality development of the AI industry.
Public Consultation on AI Industry Standards by MIIT: On 17 January 2024, the Ministry of Industry and Information Technology (MIIT) publicly solicited opinions on the "Guidelines for the Construction of a Comprehensive Standardization System for the National Artificial Intelligence Industry (Draft)." This initiative aims to accelerate the formation of a standards system for the high-quality development of the AI industry.
State Council Meeting on AI and Industrialization: On 22 January 2024, Premier Li Qiang convened an executive meeting of the State Council to discuss and deploy strategies for leveraging artificial intelligence to empower new industrialization. The meeting also included a report on the operation of the capital market and related work considerations.

Internet Sectors

National Data Bureau's "Data Factor x" Action Plan: On 4 January 2024, the National Data Bureau jointly issued the "Data Factor x" Three-Year Action Plan (2024-2026), aiming to harness the multiplier effect of data factors to boost economic and social development.
MIIT's "Signal Upgrade" Initiative: On 4 January 2024, the Ministry of Industry and Information Technology (MIIT) issued a circular regarding the "Signal Upgrade" special action. This plan proposes significant enhancements to mobile network (4G and 5G) signals, focusing on providing users with high-quality network services.
Public Consultation on Information Security Risk Management Guidance: On 5 January 2024, the National Information Security Standardization Technical Committee released the "Information Security Technology Information Security Risk Management Guidance (Draft)" for public consultation. This document, intended to replace GB/T 31722-2015, offers comprehensive guidance on information security risk management for all types of organizations.
MOT's Railway Infrastructure Security Measures: On 8 January 2024, the Ministry of Transport published the "Administrative Measures for Security Protection of Railway Critical Information Infrastructure," effective from 1 February 2024. The measures aim to safeguard the security of critical railway information infrastructure.
MIIT's Cloud Computing Standardization System Guidelines: On 10 January 2024, the Ministry of Industry and Information Technology issued the "Guidelines for the Construction of a Comprehensive Standardization System for Cloud Computing (Exposure Draft)" to solicit public opinions. The draft clarifies the construction idea, including the structure and framework of the comprehensive standardization system for cloud computing.
Ministry of Finance on Strengthening Data Asset Management: On 11 January 2024, the Ministry of Finance issued "Guiding Opinions on Strengthening Data Asset Management," focusing on regulating and enhancing data asset management to support digital economy development.
Internet Society of China's Data Security Standard Announcement: On 12 January 2024, the Internet Society of China announced the project of group standard "Data Security Requirements for Internet Net Disk Services," aiming to make the formulation of group standards more scientific and reasonable.
Opinions on Future Industry Development: On 18 January 2024, the Ministry of Industry and Information Technology and seven other departments jointly issued the "Opinions on the Implementation of Promoting the Innovative Development of Future Industries." The Opinions set goals for 2025 and 2027 to advance technological innovation, industry cultivation, and security governance in future industries, with some fields aiming for global leadership.
MIIT's Guidelines for Industrial Control Systems Security: On 19 January 2024, the Ministry of Industry and Information Technology issued guidelines for network security protection of industrial control systems, enhancing enterprises' industrial control security protection levels and bolstering the security foundation of new industrialization.
Lingang New Area's Data Flow Management Measures: On 19 January 2024, the Lingang New Area of China (Shanghai) Pilot Free Trade Zone issued "Measures for the Classification and Grading Management of Cross-border Flow of Data (for Trial Implementation)." This aims to supervise cross-border data flow, provide compliance services, and guide risk self-assessment for data processors.
Futian District's Public Data Operation Management: On 19 January 2024, the Futian District Government of Shenzhen released the "Interim Management Measures for Authorised Operation of Public Data in Futian District," effective from 30 January 2024. The measures strengthen the supervision and security of public data authorized operations.
Chaoyang District's Data Elements Industry Development Plan: On 22 January 2024, Chaoyang District, Beijing, issued the "Working Plan of Chaoyang District on Better Playing the Role of Data Elements in Creating International Data Elements Industry Clusters (Trial)" and "Several Measures on Supporting the Development of Data Elements Industry in Chaoyang District (Trial)" for consultation. The plans promote the integration and development of data elements with various industries.
Digital Transformation of Raw Material Industry Work Program: On 26 January 2024, the Ministry of Industry and Information Technology (MIIT) and nine other departments jointly issued the "Work Programme for Digital Transformation of Raw Material Industry (2024-2026)."
Financial Supervision Administration's Circular on Science and Technology Insurance Business: On 29 January 2024, the General Administration of Financial Supervision issued a circular on the statistical system for science and technology insurance business. This initiative is aimed at supporting high-level scientific and technological self-reliance and accelerating innovation-driven development strategies.

Intelligent connected vehicles (ICVs)

NDRC on New Energy Vehicles and Power Grid Integration: On 4 January 2024, the National Development and Reform Commission (NDRC) issued the "Implementing Opinions on Strengthening the Integration and Interaction of New Energy Vehicles with the Power Grid." This policy promotes the integration of new energy vehicles with the power grid, allowing for reverse power flow from vehicles to the grid.
Guangzhou Nansha's Market Access and Regulatory Reforms: On 9 January 2024, the NDRC issued opinions supporting Guangzhou Nansha in relaxing market access and enhancing regulatory reforms. The aim is to expedite the development of a cross-border wealth management and capital management center in the Guangdong-Hong Kong-Macao Greater Bay Area and to advance multi-scenario pilot applications of intelligent (internet-connected) vehicles.
NEA's Initiative on Charging Infrastructure for New Energy Vehicles: On 9 January 2024, the National Energy Administration (NEA) issued a notice organizing "Demonstration Counties and Demonstration Townships for the Construction and Application of Charging Infrastructure." This initiative is designed to promote the rapid development of charging infrastructure, supporting the use of new energy vehicles in rural areas.
Ministry of Transportation and Communications on Intelligent Networked Vehicles: On 15 January 2024, the Ministry of Transportation and Communications issued a notice on the pilot work of "Vehicle-Road-Cloud Integration" application for intelligent networked vehicles. This initiative focuses on building network-connected cloud-control infrastructure and exploring autonomous driving technology, aiming to accelerate technological and industrial advancements in intelligent networked vehicles.
Semiconductor Industry Development - MIIT's Guidelines: On 8 January 2024, the Ministry of Industry and Information Technology (MIIT) issued the "Guidelines for the Construction of National Automotive Chip Standard System." The guidelines aim to promote the development and implementation of automotive chip standards, thereby facilitating the research and application of automotive chips in the industry.

HCLS

National Health Commission's Drug Conservation Initiative: On 29 December 2023, the National Health Commission (NHC) issued the "Implementation Plan for Saving Drug Resources and Curbing Drug Waste." This plan focuses on conserving drug resources, reducing drug waste, and promoting the rational use of drugs.
Promotion of High-Quality Children's Healthcare Services: On 2 January 2024, the NHC jointly issued the "Opinions on Promoting the High-Quality Development of Children's Healthcare Services." This initiative aims to enhance the quality of healthcare services provided to children.
Fair Drug Pricing Notice: On 5 January 2024, the NHC issued the "Notice on Promoting Fair and Honest, Transparent and Balanced Interprovincial Prices of Drugs with the Same Generic Name and the Same Label." The objective is to foster fairer and more transparent drug pricing practices among pharmaceutical companies.
Strengthening Management of Medical Documents: On 9 January 2024, the National Health and Medical Reform Commission (NHMRC) issued the "Notice on Further Strengthening the Management of Medical Documents in the Category of Medical Proof Documentation." This notice focuses on enhancing the management of medical documents and regulating the issuance of such documents by medical institutions.
Supply Guarantee of Selected Medicinal Products: On 12 January 2024, the State Medical Insurance Bureau released the "Circular on Strengthening the Supply Guarantee of Selected Products in the Centralised Banded Purchasing of Medicines." This circular aims to improve the supply assurance of selected medicines and medical consumables.
Optimizing Drug Listing and Registration: On 25 January 2024, the State Drug Administration (SDA) issued the "Announcement on Matters Relating to Optimising the Application for Listing and Registration of Drugs Produced Overseas that Have Been Listed on the Domestic Market and Transferred to the Domestic Market (Exposure Draft)." Open for public comments until 23 February, the draft seeks to optimize the processes for transferring domestically listed drugs produced overseas to domestic production.

-END-