China Laws and Regulations Update in October 2023

1. Decision to Amend the Provisions of the Supreme People’s Court on Several Issues Concerning Intellectual Property Tribunal

Promulgated by Supreme People’s Court

Promulgation date: 27 October, 2023

Implementation date: 1 November, 2023

Document number: LI [2023] No. 10

The Decision amends the original Article 2, clarifying the scope of the Intellectual Property Tribunal’s hearing of appeal cases and the circumstances under which other cases may be heard. At the same time, Article 3 is amended to read: “The lower people’s court hearing the case referred to in Article 2 of these Provisions shall, in accordance with the provisions, promptly transfer the paper and electronic files to the Intellectual Property Tribunal.” The Decision adds an article as Article 4: “The Intellectual Property Tribunal may require the parties to disclose the information on relevant cases involving the ownership of, infringement upon, granting and confirmation of the intellectual property rights involved in the case. A party’s refusal to make a truthful disclosure may be taken as a consideration in determining whether it follows the principle of good faith and constitutes an abuse of rights, etc.” The Decision also makes changes to other articles. (Source:The Supreme People’s Court website)

https://www.court.gov.cn/fabu/xiangqing/416012.html

2. Regulation on the Protection of Minors in Cyberspace

Promulgated by State Council

Promulgation date: 24 October, 2023

Implementation date: 1 January, 2024

Document number: SC Order No.766

The Regulation consists of seven chapters and 60 articles, focusing on the following: first, improving the institutional mechanism for the protection of minors on the Internet; second, promoting the Internet literacy of minors; third, strengthening the construction of Internet information contents; fourth, protecting the personal information of minors; and fifth, preventing and controlling minors’ addiction to the Internet. Among other things, the Regulation stipulates that guardians shall educate and guide minors to enhance their awareness and ability to protect personal information, and guide minors in exercising their relevant rights. It specifies the emergency response requirements for personal information processors when leakage, tampering or loss of minors’ personal information occurs or is likely to occur, provides for personal information processors’ strictly setting authority to access to minors’ personal information and conducting compliance audits of personal information, and explicitly strengthens the protection of minors’ private information. (Source: State Council website)

https://www.gov.cn/zhengce/content/202310/content_6911288.htm

3. Measures for the Quality Supervision and Administration of the Distribution and Use of Medical Products

Promulgated by State Administration for Market Regulation

Promulgation date: 27 September, 2023

Implementation date: 1 January, 2024

Document number: SAMR Order No. 84

The Measures consists of seven chapters and 79 articles, mainly including improving the management of drug business licenses, consolidating the responsibilities of all relevant parties in the business activities, strengthening the quality management of drug use and the supervision of the whole process of drug operation and use. Among them, the Measures clarifies the licensing conditions and application material requirements for drug wholesalers, retail chain headquarters and retail enterprises, simplifies the approval procedures for drug business licensing, optimizes the standards for the start-up of drug wholesalers, and clarifies the standards for approval of the scope of business of drug wholesalers and retail enterprises, and provides that after the applicant who only engages in the retailing of non-prescription drugs of Class B submits the application materials and the letter of commitment and meets the condition, licensing shall be granted and a drug business license shall be issued on the same day. (Source: State Administration for Market Regulation website)

https://www.samr.gov.cn/zw/zfxxgk/fdzdgknr/fgs/art/2023/art_db526cfcd7204874b8b23297fa3b02dc.html

4. Guiding Opinions on Optimizing the Legal Environment to Promote the Development and Growth of the Private Economy

Promulgated by Supreme People’s Court

Promulgation date: 25 September, 2023

Document number: FF [2023] No. 15

The Opinions puts forward clear requirements in six aspects, including protecting the property rights of private enterprises and the legitimate rights and interests of entrepreneurs in accordance with the law, maintaining a unified, fair and honest market competition environment, promoting the development and governance of private enterprises by means of the rule of law, and continuously improving the quality and efficiency of judicial trial protection, and implements and refines the Opinions with 27 articles. Among them, the Opinions points out that economic disputes and illegal crimes should be strictly distinguished. According to the law, the boundaries between crimes and non-crimes such as legitimate financing and illegal fund-raising, contract disputes and contract fraud, participation in mergers and reorganizations and malicious appropriation of state-owned assets of private enterprises shall be determined, strict distinction shall be made between economic disputes, administrative offenses and criminal offenses, resolute efforts shall be made to prevent and correct the use of administrative or criminal means to intervene in economic disputes, resolute efforts shall be made to prevent and correct local protectionism, and resolute efforts shall be made to prevent and correct the identification of economic disputes as criminal offenses, and civil liabilities as criminal liabilities. (Source: Supreme People’s Court website)

https://www.court.gov.cn/zixun/xiangqing/413942.html

5. Compliance Guidelines for the Safety of Special Foods Sold Online

Promulgated by State Administration for Market Regulation

Promulgation date: 19 October, 2023

Document number: SAMR [2023] No. 98

The Guidelines aims to further regulate the third-party platform for online food trading and the sales of special foods by online food operators, enhance their awareness of compliance, implement the main responsibility for food safety, and ensure the safety of online sales of special foods. The Guidelines mainly includes three parts: “Definition and Scope”, “General Requirements for Sales” and “Special Requirements for Online Sales”, and following the principle of consistency between online and offline, provides guidance on the circumstances where there are doubts about the application of current laws and regulations or there is a competing relationship between the provisions, and emphasizes the important provisions, so as to provide administrative guidance for the online sellers of special food with relatively centralized laws and regulations, and clearer rules for specific application. (Source: State Administration for Market Regulation Website)

https://www.samr.gov.cn/cms_files/filemanager/1647978232/attach/20239/59f8afd57ce1477d8878647f3fcc21ab.pdf?fileName=%E5%B8%82%E5%9C%BA%E7%9B%91%E7%AE%A1%E6%80%BB%E5%B1%80%E5%8A%9E%E5%85%AC%E5%8E%85%E5%85%B3%E4%BA%8E%E5%8D%B0%E5%8F%91%E3%80%8A%E7%BD%91%E7%BB%E7%BB9C%E9%94%80%E5%94%AE%E7%89%B9%E6%AE%8A%E9%A3%9F%E5%93%81%E5%AE%89%E5%85%A8%E5%90%88%E8%A7%84%E6%8C%87%E5%8D%97%E3%80%8B%E7%9A%84%E9%80%9A%8A e9%80%9a%e7%9f%a5.pdf

6. Measures for the Implementation of Administrative Licensing Items Concerning Non-Banking Financial Institutions

Promulgated by China Banking and Insurance Regulatory Commission

Promulgation date: 9 October, 2023

Implementation date: 10 November, 2023

Document number: CBIRC and PBC Order [2023] No.3

The Measures consists of seven chapters and 204 articles, with the following major revisions compared with the previous one: first, adjusting the access conditions for some matters; second, continuously expanding opening up; third, promoting the simplification and decentralization of government affairs; and fourth, perfecting the relevant administrative licensing provisions. Among them, the Measures, based on the Measures for the Administration of Finance Companies of Enterprise Groups and the Measures for the Administration of Automobile Finance Companies, which have been revised in recent years, synchronically adjusts the conditions for the establishment of institutions and shareholders’ access, implements the provisions on business hierarchy management, and improves the access conditions for the special business of finance companies. At the same time, it further relaxes the access conditions for foreign institutions to take shares in financial asset management companies, allows foreign non-financial institutions to act as contributors to financial asset management companies, and abolishes the total asset requirement for foreign financial institutions to act as contributors to financial asset management companies. (Source: China Banking and Insurance Regulatory Commission website)

https://www.cbirc.gov.cn/cn/view/pages/rulesDetail.html?docId=1132125&itemId=4214

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