China Laws and Regulations Update in March 2023

1. Amendments to Legislative Law of the People’s Republic of China

Promulgated by National People’s Congress

Promulgation date: 14 March 2023

Implementation date: 15 March 2023

Document number: NPC’s decision to amend the Legislative Law

According to the decision, the main content of the amendment is 1. improvement of legislative guidelines and principles, 2. administration of the Constitution and its supervision and clarification of Constitution compliance review requirements for the work on legislative and recordation review; 3. improvement of the mechanism for connecting and unifying legislative and reform decisions and the decision making rules for grant of powers; 4. implementation and demonstration of the whole-process people’s democracy philosophy; 5. scientific, democratic and legal legislation requirements; 6. the legal status of supervision laws and improvement of entities responsible for formulating rules of departments under the State Council; 7. improvement of legislative powers of a city divided into districts and clarification of rules and the work mechanism on coordination in local law making between districts; 8. improvement of recordation review rules; and 9. improvement of the work on legal advocacy. (Source: NPC website)

2. Guidelines on Legally and Appropriately Dealing with Mild Harm Cases

Promulgated by Supreme People’s Procuratorate and Ministry of Public Security

Promulgation date: 2 March 2023

The Instructions consists of six parts and 24 articles, including provisions relating to thorough legal investigations and evidence collection, case review, active actions to help with dispute resolution, appropriate implementation of the criminal law administration policy of reducing the number of arrests and accusing and detaining people more prudently, improvement of the work mechanism, etc. It requires full investigation and evidence collection, comprehensive review of background, cause, relationship between parties involved, things the subject person is doing at the scene, harmful actions, damage, consequences, the subject person’s after-fact attitude, etc., ascertainment of the cause and the truth, substantive review of examination results, not only the conclusion, accurate understanding of distinctions between criminal and non-criminal cases, the affray and aggression and the intentional harm crimes, the justifiable defense and the intentional mutual harm crimes and accurately finding fellowship in crime. (Source: SPP website)

3. Rules on Online Oral Hearings of Administrative Cases

Promulgated by China National Intellectual Property Administration

Promulgation date: 24 February 2023

Implementation date: 24 February 2023

Document number: CNIPA Announcement No.517

The Rules provides that hearings should be held offline in general cases and online in special cases. CNIPA should decide whether to hold an online oral hearing based on the case facts, opinions, technology, etc. In four cases, including serious patent infringement cases decided by administrative authority, an online oral hearing may be held. The Rules sets out that if the issues are complicated or difficult to deal with, evidence is complex or facts cannot be ascertained or laws are not applicable in online hearings or in other circumstance, online oral hearings do not apply. It stresses that people present at an online oral hearing should comply with data security and personal information protection laws and perform data security and personal information protection obligations. No person may disclose, publicize or use data or information relating to an online oral hearing by violating law or rule except for ones legally published by CNIPA. (Source: CNIPA website)

4. Experimental Regulations of Domestic Businesses Issuing Securities for Overseas Listing

Promulgated by China Securities Regulatory Commission

Promulgation date: 14 February 2023

Implementation date: 31 March 2023

Document number: CSRC Announcement [2023]43

The main content of the Rules is 1. improvements of the supervision system, 2. recordation requirements, 3. coordination in supervision, 4. legal responsibilities and 5. implementation of a more inclusive system. It establishes a uniform recordation system for direct or indirect overseas listing of domestic businesses, setting out circumstances where rules for domestic businesses directly or indirectly issuing securities for overseas listing apply. Meanwhile, considering the fact of further opening up of the capital market and the market demand, it relaxes restrictions on people to which domestic businesses issue securities for direct or indirect overseas listing in special circumstances , further facilitates “full circulation”, relaxes restrictions on currency for fund raising from and payment of dividends abroad to meet the business needs to raise funds in RMB. (Source: CSRC Website)

5. Private Fund Registration and Recordation Rules (Revised)

Promulgated by Asset Management Association of China

Promulgation date: 24 February 2023

The amended Rules consists of six chapters and eighty three articles. Its main content is 1. rational improvements of registration rules and standards, regulations and requirements for managers, investors, actual controller, senior management and other key persons in private funds, 2. fund business rules, key steps in private fund investment such as collection, payment, management and repayment and improvements of the work on industry compliance, 3. improvements of the system and mechanism, penetrating inspections, in-process and post self-regulation such as information disclosure and reporting, 5. implementation of the differentiated self-regulation system and the principles of supporting more productive businesses and restricting less productive ones to increase the sense of achievement in the industry, 5. improvements of ways of self-regulation and more effective measures to prevent “false, less productive and badly managed” private funds to contain the disorder of the industry and cleanse the ecology of the industry. (Source: AMAC website)

6. Cyber and Information Security Regulations for the Securities and Future Sectors

Promulgated by China Securities Regulatory Commission

Promulgation date: 27 February 2023

Implementation date: 1 May 2023

Document number: CSRC Order No.218

The Rules focuses on cyber and information security areas and specifies approaches to implementation of the higher-level law in the securities and future sectors based on practical experience. It covers all kinds of entities, including people running key securities and future information infrastructure, core organizations, business units, information technology system services, follows the fundamental principle of safety and includes rules and requirements for cyber and information security management. The main content of the Rules is about cyber and information security operations, investors’ personal information protection, cyber and information security emergency handling procedures, key information infrastructure security protection, cyber and information security facilitation and development, supervision and management, legal responsibilities, etc. The Rules requires commercial banks improve risk classification and management in a systematic way and specifies related supervision and management measures. (Source: CSRC website)

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