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.

(Source: Website of the National People’s Congress)

http://www.npc.gov.cn/npc/c30834/202106/7c9af12f51334a73b56d7938f99a788a.shtml

2. Law Against Foreign Sanctions

Promulgated by the Standing Committee of the National Congress

Promulgation date: 10 June 2021

Implementation date: 1 August 2021

Document number: Chinese president order 90

The Law Against Foreign Sanctions consists of sixteen articles mainly about the following.

(1) Diplomatic policies, principles and positions. We always advocate development of amicable relationship with other countries in the world on the basis of five principles for peaceful coexistence with different nations. Countermeasures in our laws are basically different from “unilateral sanctions” of some western countries.

(2) Events in which countermeasures are taken and persons to which countermeasures are applicable. Subject to Item Two, Article Three of the Law Against Foreign Sanctions, we are entitled to take appropriate countermeasures against foreign countries that violate international law and basic guidelines of international relations and impose restrictions or pressure on our country, take discriminatory adverse measures against citizens or organizations of our country or interfere in political affairs of our country.

(3) Countermeasures. Article Six of the Law Against Foreign Sanctions sets out three countermeasures. First, refusal to grant a visa, no entry to our country, visa cancellation or deportation. Second, sealing, seizing or freezing property, real estates and other assets in our country. Third, bans or restrictions on doing business, cooperating or other activities with organizations and individuals in our country. In addition, there is an all-inclusive provision of “other necessary measures”.

(4) Work mechanism against foreign sanctions. We need a work mechanism for departments concerned to work smoothly and jointly against foreign sanctions.

Obligations of organizations and individuals concerned.

(Source: Website of the National People’s Congress)

http://www.npc.gov.cn/npc/c30834/202106/d4a714d5813c4ad2ac54a5f0f78a5270.shtml

3. Online Proceedings Rules of the People’s Courts

Promulgated by the Supreme People’s Court

Promulgation date: 16 June 2021

Implementation date: 11 August 2021

Document number: L.I.[2021] 12

The Rules consists of thirty nine articles, mainly including fundamental principles for online proceedings and their application scope and conditions, effect and inspection of electronic materials and the basis of the online hearing mechanism, effect of evidence on the block chain and improvements of criteria for inspection of the authenticity of evidence, application scope and methods of online hearings and rules for the order of online hearings, the non-simultaneous hearing mechanism and reasonable limitations of its application scope and conditions and application rules of electronic service and specifications of criteria for effectiveness of electronic service. In addition, the Rules includes a set of rules on online mediation, identity certification, online case filing, online response to claims, electronic records and files, online enforcement, online data protection and online hearings of criminal cases.

(Source: SPC website)

http://www.court.gov.cn/fabu-xiangqing-309551.html

4. Instructions on Several Issues Concerning the Law Application to Telecommunication Network

Fraud and Other Criminal Cases (II)

Promulgated by the Supreme People’s Court, Supreme People’s Procurate and Ministry of Public

Security

Promulgation date: 22 June 2021

Document number: F.F.[2021] 22

The Instructions deals with new major practical legal issues such as jurisdictions over telecommunication network fraud and other crimes, evidence of cross-border telecommunication network fraud crimes and the process of dealing with criminal cases involving “two cards”, i.e., phone and credit cards. Three main principles thereof require compliance with severe punishment principles, leniency policies, comprehensive punishment principles, especially for fighting “two cards” crimes and legal punishment principles, especially by following relevant procedures. The Instructions states that criminal responsibility for illegally obtaining, selling and providing internet account numbers and passwords and individuals’ biological information with information publication, instant communication, payment and settlement and other functions under Article 253.1 of Criminal Law is the same as that for infringing citizen’s personal information.

(Source: SPC website)

http://www.court.gov.cn/fabu-xiangqing-310161.html

5. Temporary Regulations of Sale of Financial Products of Financial Companies

Promulgated by China Banking Regulatory Commission

Promulgation date: 27 May 2021

Implementation date: 27 June 2021

Document number: CBRC order (No.4, 2021)

The Rules mainly sets out definition of sales, financial product sellers, responsibilities of product launchers and sellers, sellers’ responsibility for risk control, sale of financial products procedures, salesperson management, legal interests of investors and information registration rules. The Rules clarifies responsibilities of financial companies and sale agencies and requires the two parties jointly perform obligations to sell financial products in compliance with rules and protect investors’ legal interests to the extent of each party’s responsibilities. It also includes provisions relating to written marketing materials, redemption, capital transfer and management and other major aspects of financial products.

(Source: CBRC website)

http://www.cbirc.gov.cn/cn/view/pages/ItemDetail.html?docId=986408

6. Instructions on Establishment of the Third Party Supervision and Evaluation Mechanism for

Business Compliance in Criminal Cases (Experimental)

Promulgated by the Supreme People’s Procurate

Promulgation date: 3 June 2021

Implementation date: 3 June 2021

The Instructions consists of four chapters and twenty articles. Chapter One of the Instructions (Articles One to Five) sets out general requirements and principles for the third-party mechanism. Article One thereof defines the third-party mechanism as a system where the public prosecution authority authorizes the third-party mechanism management committee to appoint a third-party organization to investigate, evaluate, monitor and inspect the business involved in a criminal case being investigated by the public prosecution authority that meet the application conditions for the pilot reform for business compliance and the inspection results will be used as important information for the public prosecution authority to legally deal with the case. Article Two sets out principles for establishment and operation of the third-party mechanism. Articles Three to Five set out the application scope and application and non-application conditions of the third-party mechanism.

(Source: SPP website)

https://www.spp.gov.cn/spp/xwfbh/wsfbh/202106/t20210603_520224.shtml

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