Policy Snapshots

Navigating China's ever-evolving regulatory landscape can be challenging, which is why we provide valuable insights that help contextualize policy changes. The Policy Snapshot is a bi-weekly briefing on the latest Chinese policies for German companies in China. The Policy Snapshot is shared on the WeChat Channels of the German Chamber and can also be accessed on this site. As a member of the German Chamber, you can also benefit from our more comprehensive report, the Policy Barometer, which is delivered straight to your inbox.

Policy Snapshot - Recent National and Regional Policies in China (2025/01/06)

Export Restrictions on Technologies Related to Lithium Battery and Gallium

The subsidiary of the Ministry of Commerce (MOFCOM) called for comments on the revisions on the Catalogue of Prohibited and Restricted Technology Exports. These amendments removed export bans or restrictions involving traditional Chinese architectural techniques and added export controls on certain technologies for producing battery cathode materials, as well as lithium and gallium extraction technologies.

Our take: In light of growing global trade tensions, China is increasingly utilizing and adopting its foreign trade measures. German companies are directly or indirectly impacted by them. While the new catalog is still in the drafting process, it will be crucial for German companies to closely monitor its implementation timeline to adapt to potentially needed supply chain changes.

Notice on Public Comment for the Adjustment of the China Catalogue of Prohibited and Restricted Technology Exports

 

China's First Basic Standards for Corporate Sustainability Disclosures 

The Ministry of Finance (MoF), the National Development and Reform Commission (NDRC), and the China Securities Regulatory Commission (CSRC) issued the Corporate Sustainability Disclosure Standards – Basic Standards (Trial). These standards define the objectives of corporate sustainability disclosures, the primary users of sustainability information, and other key stakeholders. While specific implementation guidelines are yet to be provided, companies are encouraged to voluntarily adopt the standards to promote sustainable business practices.

Our take: This marks the country’s first comprehensive framework for corporate sustainability reporting and aligns with China's broader efforts to enhance corporate transparency and accountability in environmental, social, and governance (ESG) matters. German companies and their suppliers should prepare in advance to comply with potential future ESG disclosure requirements based on the Standards.

Corporate Sustainability Disclosure Standards – Basic Standards (Trial)

 

Further Streamlining Approval Process for Innovative Drug and Medical Device

The State Council issued the Opinion on Comprehensively Deepening the Reform of Regulation of Drugs and Medical Devices, aiming to enhance support for drug and medical device innovation through regulation adjustments. The opinions call for more approval efforts in innovative drugs and medical devices urgently needed in clinical practice. Notably, it sets the framework for streamlining the approval process for transferring the manufacturing of internationally approved drugs and medical devices from overseas to domestic production.

Our take: This can be seen as a strive to enhance the high-quality development of China’s pharmaceutical and medical sector. German companies can provide innovative and top-quality products in these industries. The opinions will hopefully help to speed up their market access and approval by giving more guidance to local authorities.

Opinions on Comprehensively Deepening the Reform of Regulation of Drugs and Medical Devices

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