China Laws and Regulations Update in August 2021

1. Instructions on Support for High Quality Reform and Opening Up and Development of a Pioneer

Socialist Modernization Zone of Pudong New Area

Promulgated by the Central Committee of the Communist Party of China and the State Council

Promulgation date: 15 July 2021

According to Instructions, by 2050, Pudong will have become an important urban area with great appeal, creativity, competitive advantages and influence in the world, a world model of urban governance capacity and effects and a brilliant pearl of the modern socialist power.

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China Laws and Regulations Update in July 2021

1. Data Security Law

Promulgated by the Standing Committee of the National People’s Congress

Promulgation date: 10 June 2021

Implementation date: 1 September 2021

Document number: Chinese president order 84

The data security law is an important move for development of digital economy. Over recent years we have continued developing network and digital industries of our country and building an intelligent society. Digital economy where data are used as new essential production materials thrives. Data competition has become an important part of international competition. Data Security Law attaches equal importance to security and development, includes provisions relating to measures for data security and development and the openness of government data and helps legal, reasonable and effective use of data to take full advantage of data as fundamental resources and innovation power, accelerate the formation of digital economy led and sustained by innovation and give more support to economic and social development of our country.

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China Laws and Regulations Update in June 2021

1. Law Against Food Wastes of the People’s Republic of China

Promulgated by the National People’s Congress

Promulgation date: 29 April 2021

Implementation date: 29 April 2021

Document number: Chinese president order 78

The law consists of 32 articles covering definition of food wastes, rules and requirements against food wastes, duties of governments and departments, responsibilities of different persons, incentive and restriction measures and legal responsibilities. It emphasizes the national policy of strict economy against wastes, clarifies duties of governments at different levels and departments of the state council, sets standards for business meals and activities of restaurants and other food businesses, gives individuals and families correct guidance as to the concept of consumption; establishes a social governance mechanism against food wastes with government leadership, department collaboration, industrial guide, media attention and public participation and creates legal obligations in a scientific way, imposing rigid restrictions and strictly administering rules with a strong determination to prevent wastes.

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China Laws and Regulations Update in May 2021

1. Minutes of Meeting on What Courts in China Should Do to Fully Implement Civil Code

Promulgated by the Supreme People’s Court

Document number: L.I.[2021]94

Meeting Minutes clarifies important issues concerning the application of law and work mechanism that should be addressed now to take Civil Code into full action. It is crucial for appropriate administration of Civil Code, creation of uniform law application rules, equal protection of legal rights and interests of all sides and services for excellent social and economic development. Courts of all levels should fully and accurately understand the essence and fundamental parts of Meeting Minutes.

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China Laws and Regulations Update in April 2021

1. Interpretation of the Supreme People’s Court on Exemplary Damages in Civil Cases of Intellectual Property Infringement

Promulgated by the Supreme People’s Court

Promulgation date: 3 March 2021

Implementation date: 3 March 2021

Document number: L.I.[2021]4

Highlights of Interpretation are its clarification of the following matters.

First, relationship between “deliberateness” and “maliciousness”. “Deliberateness” is one of the subjective elements of exemplary damages in the civil law and corresponds to “maliciousness” in Article 63.1 of the trademark law and Article 17.3 of the unfair competition law. Based on opinions and studies in preparations for the Interpretation, “deliberateness” and “maliciousness” should have the same meaning.

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China Laws and Regulations Update in March 2021

1.Interpretation of the Supreme People’s Court on Exemplary Damages in Civil Cases of Intellectual Property Infringement

Promulgated by the Supreme People’s Court

Promulgation date: 3 March 2021

Implementation date: 3 March 2021

Document number: L.I.[2021]4

Highlights of Interpretation are its clarification of the following matters.

First, relationship between “deliberateness” and “maliciousness”. “Deliberateness” is one of the subjective elements of exemplary damages in the civil law and corresponds to “maliciousness” in Article 63.1 of the trademark law and Article 17.3 of the unfair competition law. Based on opinions and studies in preparations for the Interpretation, “deliberateness” and “maliciousness” should have the same meaning.

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China Laws and Regulations Update in December 2020

1.(Eleventh)Amendment to Criminal Law 

Promulgated by the Standing Committee of the National People’s Congress

Promulgation date: 26 December 2020

Implementation date: 1 May 2021

Document number: No.66 Chinese President Order

The Amendment changes the age of criminal responsibility, providing that a person aged 12 or above and less than 14 years old should take criminal responsibility for murder or assault causing death or serious injury or disability very violently in serious circumstances subject to approval of the Supreme People’s Procuratorate for pursuing their criminal responsibility.

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China Laws and Regulations Update in November 2020

1.CopyrightLaw of China (Revised)

Promulgated by the Standing Committee of the National People’s Congress

Promulgation date: 1 November 2020

Implementation date: 1 June 2021

Document number: No.62 Chinese President Order

Major clauses revised this time are as follows.

I.Changes of relevant wordings and new rules and measures to meet practical needs

Changing movies and works created in a similar way of making a film to “audiovisual works”; creating rules on recordation of works, making the public accessible to information about owners of rights in works; changing wordings relating to the broadcast right to adapt to new technologies for simultaneous online broadcast and use of works; clearly stating that as owners of neighboring rights radio and IV stations have the right to broadcast through information network in “signals containing programs” they broadcast; adding provisions on technical measures and right control information to solve problems in protecting them online and offline as a whole.

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An Analysis of the Export Control Law from the Angle of National Security and Interests

(By Wang Haichua)The Export Control Law adopted by the Standing Committee of the National Congress on 17 October 2020 took effect on 1 December 2020. The aim of this law to accord paramount status to national security and interests was reflected in its official version and the process of its amendment in its formulation procedures. This article is an analysis of this law from the angle of national security and interests.

1.National security and interests up to the highest status

Article 1 of the Export Control Law provides that the aim of making this law is to protect national security and interests, perform the international duty of non-proliferation and strengthen export control. The second draft published in July 2020 changed the order of the phrases “protect national security and interests” and “perform the international duty of non-proliferation” so that the former came before the latter. In contrast with the second draft, in Articles 2, 9 and 10 of the official version the phrase “protect national security and interests” comes before the phrase “perform the international duty of non-proliferation”. The amendments are aimed to align the clauses with Article 1 and reflect the top aim of making the law to protect national security and interests.

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China Laws and Regulations Update in October 2020

1.Patent Law of China (Revised)

Promulgated by the Standing Committee of the National People’s Congress

Promulgation date: 19 October 2020

Implementation date: 1 June 2021

Document number: No.55 Chinese President Order

The revised law mainly deals with the following matters.

I.Increase of the cost of infringement, making infringers pay high prices

The revised law creates rules on punitive damages, under which in serious cases of patent right infringement, the court can decide the amount of damages at one to five times an amount calculated on the basis of patent holder’s loss, infringer’s benefits and times the patent license fee. In addition, it increases the upper limit of statutory damages to RMB 5 million and their lower limit to RMB 30 thousand. To solve evidence collection problems in patent cases, the revised patent law further improves evidence rules and provides that if the patent holder has make greatest possible efforts to collect evidence and most of books and materials connected with infringement are controlled by the infringer, the court can order the infringer to present such books and materials and reduce the patent holder’s burden of proof.

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China Laws and Regulations Update in July 2020

1.Instructions (Given on an Experimental Basis) by the Supreme Court on Application of Law and Case Searches

Promulgated by the Supreme People’s Court

Promulgation date: 27 July 2020

Implementation date: 1 August 2020

Document number: F.[2020] 185

Case searches help judges make correct judgement. If a dispute arises from application of law or no clear or uniform decision-making rules exist, judges need to study the application of law more carefully and decide more prudently. To standardize the exercise of the decision making right and cause uniform rules on application of law to be implemented, the Instructions states that in one of the following events, case searches are required: 1. to propose to submit to the qualified (presiding) judge meeting or trial committee for deliberation; 2. in the absence of clear or uniform decision making rules; 3. the president or chairman requires case searches within their power to monitor and administer trials; 4. other event in which case searches are necessary to standardize the case search report mechanism. (Source: Website of the Supreme Court)

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An Analysis of the Effect of Liability Limitation Clauses (Part I)

(By Guo Yaojie)Businesses may encounter contract risks in the course of regular business operation. Increasingly more businesses have become aware of the importance of risk prevention and started to put focus on risk control and prevention. Liability limitation clauses are often seen in contracts. What do liability limitation clauses mean? How do they work? What about the validity of liability limitation clauses in contracts? To find answers to these questions, read this article.

1.General liability limitation clauses

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China Laws and Regulations Update in June 2020

1.The Law of the People’s Republic of China on Safeguarding National Security in the Hong Kong Special Administrative Region

Promulgated by the Standing Committee of the National People’s Congress

Promulgation date: 30 June 2020

Implementation date: 1 July 2020

Document number: No.49 President Order

The Law of the People’s Republic of China on Safeguarding National Security in the Hong Kong Special Administrative Region consists of six chapters, i.e. General Principles, Duties, Bodies, Offenses and Penalties, Jurisdiction, Applicable Law and Procedure, Office for Safeguarding National Security of the Central People’s Government in the Hong Kong Special Administrative Region and Supplementary Provisions, including altogether 66 articles. This is an comprehensive law containing articles of substantive, procedural and organization laws.

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China Laws and Regulations Update in May 2020

1.The Civil Codeof the People’s Republic of China

Promulgated by the National People’s Congress

Promulgation date: 28 May 2020

Implementation date: 1 January 2021

Document number: No.45 President Order

The Civil Code of the People’s Republic of China consists of 1260 items in seven chapters, i.e. general principles, rights in property, contracts, personality rights, marriage and family, inheritance, infringement and attached sections.

The lawmaking committee of the Standing Committee of the National People’s Congress started to work on the Civil Code in March 2015. The general principles of the civil law were reviewed and passed on the 5th meeting of the 12th National People’s Congress in March 2017. In December 2019 the Standing Committee of the National People’s Congress reviewed the draft of the Civil Code incorporating the general principles of the civil law and drafts of the chapters of the amended Civil Code and decided to submit the draft of the Civil Code to the 3rd meeting of the 13th National People’s Congress for review.

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How to Calculate the Time Limit on Liability-Exempt Delay in Construction Work of Builder Units Due to Convid-19

(By Nie Shengnan)Just before the Chinese Spring Festival 2020, Convid-19 broke out across our country. The government has taken a series of measures to control the spread of the disease, including spring festival holiday extension, increases in the number of inspectors, closure of highways, delay of work and business resumption, quarantine at fixed places and times, etc. These measures are bound to affect the term of work on construction projects. How to calculate the time when the majeure force incident appears and disappears is an issue that the parties involved are very concerned about and is very likely to cause disputes when builder units claim exemption of liabilities based on force majeure clauses.

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