China Laws and Regulations Update in December 2023

1. Opinions on Handling Criminal Cases of Dangerous Driving while Intoxicated

Promulgated by The Supreme People’s Court, Supreme People’s Procuratorate, Ministry of Public Security, Ministry of Justice

Promulgated date:13 December, 2023

Implementation date: 28 December, 2023

Document number: SPP [2023] No. 187

The Opinions consists of 30 articles, divided into six parts, namely, general requirements, filing and investigation, criminal prosecution, expeditious handling, comprehensive management and supplemental provisions, which are comprehensive in content and tightly regulated by law. Among them, the filing and investigation part has prescribed the filing standards, definitions of roads and motor vehicles, enforcement measures, and evidence collection, etc.; the criminal prosecution part has prescribed the circumstances for heavier and lenient punishment, the identification and sentencing standards for significantly minor and minor circumstances, public services, and the connection between criminal and administrative penalties, etc.; the expeditious handling part has prescribed the principle, scope, period and process of applying the expeditious handling mechanism to driving while intoxicated cases. (Source: Supreme People’s Procuratorate)

https://www.spp.gov.cn/spp/xwfbh/wsfbt/202312/t20231218_637161.shtml#1

2. Interpretation of Several Issues Concerning the Application of the General Provisions of the Contract Part of the Civil Code of the People’s Republic of China

Promulgated by the Supreme People’s Court

Promulgated date: 4 December, 2023

Implementation date: 5 December, 2023

Document number: LI [2023] No. 13

The Interpretation consists of nine parts: general provisions, conclusion of contracts, validity of contracts, performance of contracts, preservation of contracts, modification and assignment of contracts, termination of contractual rights and obligations, liability for breach of contract and supplemental provisions. Among them, on the determination of preliminary contracts, according to the Interpretation, where the parties agree to enter into a contract within a certain period of time in the future in the form of subscription order, purchase order, pre-order, etc., or have paid a deposit to guarantee the conclusion of the contract within a certain period of time in the future, and the parties, subject matter and other content of the contract to be concluded in the future can be determined, the court shall find that the preliminary contract is established. Where the parties only express their intention of transaction by signing a letter of intent, memorandum, or other means, without agreeing to enter into a contract within a certain period of time in the future, or with an agreement but it is difficult to determine the parties, subject matter and other content of the contract to be concluded in the future, if either party claims that the preliminary contract is established, the court shall not uphold the contention. (Source: The Supreme People’s Court)

https://www.court.gov.cn/fabu/xiangqing/419382.html

3. Regulation on Supervision and Administration of Non-Bank Payment Institutions

Promulgated by the State Council

Promulgated date: 17 December, 2023

Implementation date: 1 May, 2024

Document number: State Order No. 768

The Regulation consists of six chapters and 60 articles, focusing on the following: first, clarifying the definition of non-bank payment institutions and the business permits for their establishment; second, improving the payment business rules; third, protecting users’ legitimate rights and interests; fourthly, specifying regulatory responsibilities and legal liabilities. In order to adapt to the development needs of payment business, the Regulation divides payment business into two categories: stored-value account operation and payment transaction processing, and authorizes the People’s Bank of China to formulate specific rules. It specifies the management requirements for payment business, stipulating that non-bank payment institutions shall improve their business management and other systems, and have business systems, facilities and technologies that meet the requirements to ensure continuous, safe and traceable payment business. It also clarifies the management requirements for payment accounts, pending payments and payment instructions, stipulating that payment accounts shall be opened in the user’s real name, and that non-bank payment institutions shall not misappropriate, occupy or borrow pending payments, or forge or alter payment instructions, so as to prevent risks in the non-bank payment industry. (Source: State Council)

https://www.gov.cn/zhengce/content/202312/content_6920724.htm

4. Decision on Amending the Provisions of the Supreme People’s Court on Several Issues Concerning the Establishment of International Commercial Courts

Promulgated by the Supreme People’s Court

Promulgated date: 18 December, 2023

Implementation date: 1 January, 2024

Document number: LI [2023] No. 14

The Decision consists of two articles. First, it expands the scope of cases in which the parties may choose the jurisdiction of an international commercial court by agreement. Article 2(1) of the Provisions is amended to read: “(1) An international commercial cases of first instance with a subject matter of RMB 300 million or more, in which the parties has chosen the jurisdiction of the Supreme People’s Court by agreement in accordance with Article 277 of the Civil Procedural Law,”. Article 277 of the Civil Procedural Law has established a jurisdiction system for foreign-related agreements in line with China’s national conditions and international trends, and clarifies that if the parties to a foreign-related civil dispute agree in writing to choose the jurisdiction of the people’s court, the people’s court may take jurisdiction with no requirement of the dispute to be practically connected with China, in order to encourage foreign parties to choose the jurisdiction of Chinese courts, and to fully embody the judicial attitude of respect for the parties’ autonomy, equal protection, tolerance and openness in China. Accordingly, Article 2(1) of the Provisions has been adaptively amended to clarify that the scope of cases before an international commercial court includes international commercial cases of first instance with a subject matter of RMB 300 million or more, in which the parties has chosen the jurisdiction of the Supreme People’s Court by agreement in accordance with Article 277 of the Civil Procedural Law, and that Article 35 of the Civil Procedural Law (Article 34 of the Civil Procedural Law of 2012) that the parties shall choose the people’s court of the place with actual connection with the dispute by agreement shall not be applicable.

Second, it expands the means of ascertaining foreign laws. Paragraph 1 of Article 8 of the Provisions is amended to read: “When an international commercial court hears a case in which an extraterritorial law shall be applied to, it may ascertain the law through the following means: (1) provided by the parties concerned; (2) provided by the the foreign party’s central or competent authority through the channel of judicial assistance; (3) provided by China’s embassy or consulate in the foreign country, or by the foreign country’s embassy or consulate in China upon the Supreme People’s Court’s request; (4) provided by the participants of the law ascertainment cooperation mechanism established or participated by the Supreme People’s Court; (5) provided by the experts of the International Commercial Expert Committee of the Supreme People’s Court; (6) provided by the law ascertainment service organizations or Chinese and foreign legal experts; (7) other appropriate means.” The amendment to the article has expanded the means for an international commercial court to ascertain foreign laws, keeping consistent with the means of ascertaining foreign laws stipulated in Article 2(1) of the Interpretation of The Supreme People’s Court on Several Issues Concerning the Application of the Law of the People’s Republic of China on the Application of Laws to Foreign-Related Civil Relations (II), and embodying the unity and coordination among judicial interpretations. (Source: The Supreme People’s Court)

https://www.court.gov.cn/zixun/xiangqing/420962.html

5. Several Provisions on the Administration of the Manufacture of Unmanned Civil Aircraft

Promulgated by Ministry of Industry and Information Technology

Promulgated date: 18 December, 2023

Implementation date: 1 January, 2024

Document number: MIIT Order No. 66

The Provisions mainly clarifies the scope of application, the production management system and the supervision and management system. Among them, with regard to the production management system, the Provisions regulates the following matters: first, stipulating that manufactures of unmanned civil aircraft shall set up a unique product identification code for their each unmanned civil aircraft, except for flying toys with an independent power system; second, specifying the management system for the setting and use of the unique product identification code; third, stipulating that the telecommunication equipment, radio transmission equipment and radio frequencies used by unmanned civil aircraft shall comply with China’s relevant regulations. (Source: Ministry of Industry and Information Technology)

https://www.miit.gov.cn/zcfg/jdcjxl/art/2023/art_25181ed2099e49f0af621a250bc92c0e.html

6. Regulation on the Donation and Transplantation of Human Organs

Promulgated by State Council

Promulgated date: 4 December, 2023

Implementation date: 1 May, 2024

Document number: State Order No. 767

The Regulation amends the former Regulation on Human Organ Transplantation, specifically, first, strengthening publicity and guidance on organ donation and further promoting organ donation; second, improving the organ procurement and allocation system and implementing whole-process management; and third, strengthening management of the application of organ transplantation technology and guaranteeing medical quality. Among them, the Regulation stipulates the conditions that medical institutions shall meet to engage in cadaveric organ procurement and the requirements that medical institutions shall follow to provide cadaveric organ procurement services. It refines the requirements for ethical review before organ procurement and stipulates the witnessing procedures for the procurement of cadaveric organs. It also improves the allocation system of cadaveric organs, stipulating that the allocation of cadaveric organs shall meet medical needs, follow the principles of fairness, justice and openness, and be uniformly implemented through the allocation system established by the healthcare department of the State Council, and that the donation and allocation of cadaveric organs shall be published on a regular basis and be supervised by the society. In addition, the Regulation also improves the provisions on legal responsibilities and increases penalties to strictly crack down on illegal behaviors in the field of organ donation and transplantation. (Source: State Council)

https://www.gov.cn/zhengce/content/202312/content_6920195.htm

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