China Laws and Regulations Update in September 2022

1. Law Against Telecommunication Fraud

Promulgated by the Standing Committee of National People’s Congress

Promulgation date: 2 September 2022

Implementation date: 1 December 2022

Document number: 119 President Order

The Law Against Telecommunication Fraud consists of seven chapters and fifty articles, including general principles, telecommunication, financial and internet governance, comprehensive measures, legal responsibilities, supplementary articles, etc. in order to give powerful legal support for fighting telecommunication fraud by adhering to the people centered philosophy, balancing development and safety, preventing and governing telecommunication fraud in all parts of the chain and working hard with accuracy. The Law further strengthens punishment for telecommunication fraud by including specialized provisions relating to administrative punishment and further clarifying the offender’s civil responsibilities and records on the credit report.

(Source: NPC website)

2. Compliance Rules for Central Government Owned Businesses

Promulgated by SASAC

Promulgation date: 16 September 2022

Implementation date: 1 October 2022

Document number: 42 Order of the State-owned Assets Supervision & Administration Commission

The Rules states that central government owned businesses should appoint Chief Compliance Officer(“CCO”), if necessary, without increasing leader jobs and positions. The CCO should be also general legal counsel, reporting to the chief leader and leading the compliance department and helping the units with compliance management. The Rules requires central government owned businesses should include compliance review in the integral part of the business management process and CCO should give and sign explicit comments on compliance review of any important decision. Business, functional and compliance divisions should perform their respective duties to improve the compliance review criteria, process, priorities, etc. and conduct regular post-assessment of the compliance review. The Rules further notes that central government owned businesses should pursue responsibilities of units and people that ought to but fail to identify misconduct out of intention or serious negligence or commit dereliction of duty in identifying misconduct, causing damage to or adverse effect on the business.

(Source: SASAC website)

3. Classic Cases of Fighting Securities Crimes Legally with Severity

Promulgated by SPC, SPP, MOPS and CSRC

Promulgation date: 9 September 2022

The Circular announced the publication of five classic criminal securities cases co-selected by the four authorities, including illegal disclosure and non-disclosure of important information and the securities market rigging cases involving Ms. Ma. The five classic cases relate to crimes of illegally disclosing or not disclosing important information, rigging the securities market, using secret information in transactions, doing insider dealings, acting dishonestly to harm a listed company’s interests and other securities related crimes, covering common crimes on the capital market and new types of crimes emerging in recent years, reflecting characteristics and tendency of current securities crimes and clarifying law application. According to the Circular, the classic cases cover main types of current securities crimes, manifest the attitude of fighting all stages of securities offenses and crimes with severity and show effective coordination and cooperation between law enforcement and judicial authorities concerning administrative and criminal punishment.

(Source: SPC website)

4. Instructions on Improving Work on Classifying Businesses Manufacturing and Selling Medical Instruments into Regulatory Levels

Promulgated by National Medical Products Administration

Promulgation date: 9 September 2022

Document number: YJZXG [2022] 78

The Instructions includes regulatory level classification principles and inspection requirements for medical instrument manufacturing and operating businesses, under which drug administrations can classify the businesses into four risk-based regulatory levels and take regulatory measures according to which regulatory level the business is. The provisions are as follows: businesses that have good regulatory credit for a long time could be changed to a lower regulatory level; medical instrument registrants that outsource the manufacturing outside their own region, OEM businesses, businesses with additional non-local warehouses, etc. should be changed to a higher level. Medical instrument manufacturing businesses should be supervised and inspected without prior notice. Businesses that deal in medical instruments should be supervised and inspected at random times without notice.

(Source: NMPA Website)

5. Regulations of Internet Based Pop-up Push Services

Promulgated by Cyberspace Administration of China

Promulgation date: 9 September 2022

Implementation date: 30 September 2022

According to the Regulations, Internet pop-up information push service providers should implement the main responsibility of information content management, establish and improve information content censorship, ecological governance, data security, personal information protection, minor protection and other management systems. The Regulations emphasize that Internet pop-up information push service providers should comply with nine specific requirements, including optimizing the ecology of push content, strengthening the management of Internet information service qualifications, standardizing news information push, scientifically setting the proportion of push content, improving the review process of push content, strengthening the protection of user rights and interests, reasonable algorithm settings, standardizing advertising push, and eliminating malicious diversion. The Regulations specifically stated that those who have not obtained the Internet news information service license shall not pop up and push news.

(Source: CAC website)

6. Instructions on Several Issues Connected with Handling Criminal Cases of Hindering Cultural Heritage Management, Etc.

Promulgated by SPC, SPP, MOPS and NCHA

Promulgation date: 5 September 2022

Document number: GTZ [2022] No.18

The main content of the Instructions is about identifying acts of hindering cultural heritage management, standardizing disputed cultural heritage examination and assessment procedures, clarifying jurisdiction over cultural heritage related criminal cases and fully implementing the criminal policy of tempering justice with mercy. The Instructions provides that to fully attack the cultural heritage related criminal networks in all parts of the chain, the person who plays the leading role in a joint crime could be legally found as chief culprit; aggravated punishment could be given to people who have violated cultural heritage law or committed a related crime more than once, or state personnel; people who surrender to the police, performs deeds of merit or plead guilt should be legally treated with leniency. The Instructions also requires full attacks on cultural heritage offenses and crimes by interlinking related provisions in administrative law and criminal law.

(Source: SPC website)

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