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 (2025/02/12)

Further Enhancing Opening-Up in Financial Sectors

The People’s Bank of China and five other government departments issued the Opinions on Advancing Institutional Opening in the Financial Sector to Align with High International Standards in Pilot Free Trade Zones (Ports). The Opinions outline 20 policy measures, including facilitating the inward and outward transfer of funds for foreign investors and improving arrangements for cross-border financial data flows in China’s free trade zones and ports.

Our take: While this is another initiative from the Chinese government to boost foreign investor confidence and attract more foreign capital, its impact will depend on an efficient implementation of the outlined measures and how well it aligns with broader economic and financial stability goals.

Opinions on Piloting Institutional Opening-Up in Alignment with High International Standards in Free Trade Zones (Ports) in the Financial Sector

Consumer Goods Trade-In Program on Vehicles

The Ministry of Commerce (MOFCOM) issued the Notice on Properly Carrying Out the 2025 Vehicle Trade-in Program. Consumers can receive up to CNY 20,000 for scraping an old vehicle and purchasing a new electric vehicle (EV), or up to CNY 15,000 for buying a new internal combustion engine (ICE) vehicle with an engine smaller than 2.0 liters. Those who sell their old vehicles also can qualify for reduced subsidies, with up to CNY 15,000 for an EV upgrade and CNY 13,000 for an ICE upgrade.

Our take: This is the implementation guideline for the 2025 vehicle trade-in program, aligning with the 2024 framework with no significant changes in subsidy design. It reflects the continued support for the green development in the automotive industry and the attempt to boost consumption of big-ticket-items.

Notice on Properly Carrying Out the 2025 Vehicle Trade-In Program

Green Technology Promotion Catalogue

The National Development and Reform Commission (NDRC), together with seven other ministries, compiled the Green Technology Promotion Catalogue (2024 Edition). The catalogue has selected 112 advanced green technologies in seven industries like environmental protection, resource recycling, energy transformation, ecological protection, green infrastructure, and green services.

Our Take: This is the first update in four years to China's Green Technology Promotion Catalogue, which identifies green technologies that will more easily qualify for green financial support. Additionally, the chinese authorities released the Green Industry Catalogue last year, providing a framework for identifying eligible green projects and activities.

The Green Technology Promotion Catalogue (2024 Edition)

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Policy Snapshot - Recent National and Regional Policies in China (2025/01/21)

Policy Plan for Equipment Renewal and Consumer Goods Trade-in

The National Development Reform Commission (NDRC) and the Ministry of Finance (MOF) issued their 2025 policy plan on large-scale equipment renewal and trade-in program for consumer goods. The plan expands support for equipment renewal in sectors like electronic information, workplace safety, and facility agriculture, focusing on high-end, intelligent, and green equipment. It also includes subsidies for the trade-in of more home appliance categories and digital products.

Our take: China officially announced equipment renewal and consumer goods trade-ins in March 2024, aiming to boost investment, consumption, and economic growth. This year, the initiative remains significant items on the economic agenda, with an expanded scope of financial support and enhanced efforts in green and intelligent development. German companies should continue to actively participate in the policy program to expand their business opportunities.

Notice on Strengthening and Expanding the Policy Implementation of Large-Scale Equipment Renewal and Trade-in for Consumer Goods in 2025

Beijing Eases Market Access for Foreign Investment in VATS

The State Council approved the temporary adjustment of some administrative regulations and policies to further expand market access in the service sector for foreign investment in Beijing. Key measures include lifting foreign equity ratio restrictions on specific value-added telecommunications services (VATS), such as information services (limited to application stores and excluding prohibited sectors) and internet access services (limited to providing internet access for users) in the city.

Our take: The Ministry of Industry and Information Technology launched a pilot program last October to remove restrictions on VATS in selected regions. VATS has long been a key item on the negative list for foreign investment. As a pilot region for service sector opening-up, Beijing is now making notable progress in this area.

Reply on Approving Temporary Adjustments to the Implementation of Relevant Administrative Regulations and Departmental Rules Approved by the State Council in Beijing

Guidelines for Building a National Unified Market

The NDRC released a trial guideline on building a national unified market, which mandates local authorities to prevent or rectify unfair policy formulation and enforcement on businesses. This includes ensuring that local laws and policies related to market entry, bidding, procurement, investment, and business operation comply with fair competition review requirements and avoiding the implementation of fiscal, tax, pricing and other incentives for investment promotion that violate national standards or regulations.

Our take: Since the policy campaign in building a national unified market launched in 2022, continuous efforts have been made to advance this initiative. This year, it has gained particular emphasis as one of the key tasks outlined in the Central Economic Work Conference. This trial guideline aims to provide clearer "working directions" for local governments, though its implementation at the ground level remains to be seen.

The Guideline for Building National Unified Market (Trial)

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

Policy Snapshot - Recent National and Regional Policies in China (2024/12/11)

Domestic Product Standards in Government Procurement

The Ministry of Finance (MOF) released the Notice on Issues Concerning Domestic Product Standards and Implementation Policies in the Field of Government Procurement (Draft for Comments). The Notice defines what constitutes domestic products and outlines the policy support for domestic products in public procurement. Where both domestic and non-domestic products compete, the price of domestic products will be discounted by 20% as part of the evaluation criteria during the tendering process.

Our take: The Notice aims to establish an open, unified government procurement market where all types of companies, including German companies in China, can participate equally. However, the draft puts non-localized companies at a disadvantage. We are currently preparing our comments for submission to the MoF for more clarification.

Call for Comments: Product Standards in Government Procurement

Business Confidence Survey 2024/2025.pdf - Zoho WorkDrive

Accounting and Reporting of GHG Emissions in the Steel Industry

The General Office of the Ministry of Ecology and Environment (MEE) released drafts for "Guidelines for Accounting and Reporting of Greenhouse Gas (GHG) Emissions by Enterprises (Steel Industry)" and "Technical Guidelines for Verification of GHG Emissions by Enterprises (Steel Industry)." These guidelines are set to provide detailed requirements for GHG emissions accounting and reporting for companies in the steel industry, including formulas for calculating emissions, as well as data monitoring and acquisition requirements for key parameters.

Our take: The two drafts establish a framework for the accounting and reporting of GHG emissions in the steel industry, which is a significant step towards a broader Carbon Emissions Scheme and towards the alignment of the steel industry with international standards (e.g., CBAM), thereby promoting China's foreign trade in the steel sector.

Notice on Call for Comments on "Guidelines for Accounting and Reporting of Greenhouse Gas (GHG) Emissions by Enterprises (Steel Industry)" and "Technical Guidelines for Verification of GHG Emissions by Enterprises (Steel Industry)."

Top-Level Guiding Opinions on Smart Urban Infrastructure

The State Council and the Party Central Committee issued Opinions on Promoting “New-Type” Urban Infrastructure and Building “Resilient” Cities. The Opinions aim to establish a group of new cities with safer, more orderly, smarter, and more efficient urban operations by 2030. Major tasks include building and upgrading intelligent municipal infrastructure, promoting the coordinated development of smart city infrastructure and intelligent connected vehicles (ICVs), and developing smart residential quarters.

Our take: Since 2020, the Chinese authorities have been piloting smart urban infrastructure upgrades. This central-level guidance takes a further step by now promoting digitalized and intelligent urban infrastructure nationwide. German companies that can provide smart and green solutions and infrastructure upgrades might benefit from this initiative.

Opinions of the State Council and the Party Central Committee on Promoting "New-Type" Urban Infrastructure and Building "Resilient" Cities

Policy Snapshot - Recent National and Regional Policies in China (2024/11/27)

The Export Control List of Dual-Use Good

The Ministry of Commerce (MOFCOM) and three other government agencies issued the Export Control List of Dual-Use Goods. The list covers around 700 controlled items in 10 major industry sectors, including sophisticated machine tools and manufacturing equipment, aerospace and UAV technology, advanced semiconductor materials, and specialized chemicals. The List will take effect along with the previously released Regulations on Export Control of Dual-Use Goods on December 1, 2024.

Our take: The list is a consolidation of the previous list and does not expand the previous scope of controlled items at this point in time. However, its items can be dynamically adjusted based on technological development and strategic considerations, and temporary licensing might apply in the meantime.

The Export Control List of Dual-Use Goods

New Measures to Boost Foreign Trade Development

The Ministry of Commerce (MOFCOM) released Measures to Promote the Stable Growth of Foreign Trade. Key measures include expanding export credit insurance coverage, increasing financing support for international trade companies, providing visa support for business trips and personnel visits from trade partners, supporting the import of crucial equipment and energy resources, expanding agricultural product exports, and further developing cross-border e-commerce, green trade, and border trade.

Our take: These measures signal that foreign trade remains a top priority on China's economic agenda. For the export sector, as a key driver of success, Chinese authorities aim to create a favorable business environment to ensure its stable development amid uncertain global markets. Other objectives, such as advancing a green economy and ensuring energy security, are also reflected in these measures.

Measures to Promote Stable Growth of Foreign Trade

China’s New Energy Law

The Standing Committee of the National People’s Congress (NPCSC) passed the Energy Law, setting long-term development goals for renewable energy utilization, increased non-fossil energy consumption, and future energy market reforms. The law also outlines regulations for various renewable energy sources, including wind, solar, biomass, geothermal, ocean, and hydrogen energy.

Our take: After 17 years of deliberation and internal debate, China has finally enacted its first-ever energy law. The law consolidates previous energy policies and regulations and fortifies the legal framework within the energy sector. It also reaffirms the central government’s attempts to achieve the 30/60 goals via a stronger push towards green energy usage.

The Energy Law of the People's Republic of China

Policy Snapshot - Recent National and Regional Policies in China (2024/11/13)

RMB 10 Trillion to Reduce Local Government Debt

The Ministry of Finance (MOF) announced a RMB 10 trillion support package to reduce hidden debts from local governments. RMB 6 trillion of special purpose bonds (SPBs) will be utilized over the next three years. Additionally, another RMB 4 trillion SPBs will be allocated from 2024 to 2028 to further reduce the debt issue of local governments.

Our take: This measure will markedly help ease local government debt pressures and might free up funds for local governments to invest in economic growth-related tasks. We might see more fiscal stimulus packages to boost domestic demand, which German companies hope for, at the end of the year.

The Press Conference of General Office of the Standing Committee of National People’s Congress

A Broader Implementation of FTZs’ Institutional Opening-Up Measures

The State Council approved the replication and promotion of 30 measures, which were originally designed for Free Trade Zones (FTZs) and the Free Trade Port (FTP) to more regions across China, for example in goods trade, services trade, and digital trade., 17 measures will be extended to all 22 FTZs, while the remaining 13 will be implemented nationwide.

Our take: These measures aim to establish a better institutional environment with smoother processes for foreign business operations and to align with international standards. If these business-boosting policies operate well in FTZs and FTP, it is likely that they will be introduced in additional regions across China or all over China.

Notice on the Implementation of FTZs' Institutional Opening-Up Measures

Guiding Opinions on Accelerating the Adoption of Renewable Energy

The National Development and Reform Commission (NDRC) and five other government agencies released Guiding Opinions on Vigorously Implementing Renewable Energy Substitution Action. The major targets are to achieve a national renewable energy consumption of over 1.1 billion tons of standard coal equivalent (SCE) by 2025, and reach a national renewable energy consumption of over 1.5 billion tons of SCE by 2030.

Our take: This is the guiding document for expanding renewable energy use to achieve carbon peak emissions by 2030. It is also another essential document to promote China’s green development, joining others we’ve seen this year.

Guiding Opinions on Vigorously Implementing Renewable Energy Substitution Actio

Stay informed: Check out our overview of China’s most important Green Policies 2024

Policy Snapshot - Recent National and Regional Policies in China (2024/10/30)

New Export Restrictions on Dual-Use Goods

The Regulations on Export Control of Dual-Use Goods, targeting equipment, software, and technology with both military and civilian applications, will take effect on December 1, 2024. Companies exporting restricted goods must report both the end user and the intended use to obtain export allowance. Additionally, the Ministry of Commerce (MOFCOM) will formulate an export control list for dual-use items, which will be updated dynamically based on technological developments.

Our take: After the export control law came into effect in 2020, the corresponding regulations took a while, showing that this is a complex matter. We have been advocating for more clarity on the requirements since the call for comments on the first draft came out in 2022, which has materialized to some extent. Still, German companies better closely check if they answer the requirements and the upcoming list.

Regulations on Export Control of Dual-Use Goods

Q&A Session on Regulations on Export Control of Dual-Use Goods

Work Plan for Improving the Carbon Emission Accounting System

NDRC released its work plan for improving the carbon emission accounting system by 2025 and by 2030. Among other targets, the work plan announces that by 2025 a carbon emission reporting system at the national and provincial level should be fully established. By 2030, a systematic and complete carbon emission statistics and accounting system should be developed at all levels, including companies.

Our take: Companies' emissions reporting proved challenging during the last years in China. This year we see more ambitious regulations in this area. German companies need to check out if they (and their suppliers) can fulfill the work plan's requirements since the deadlines are around the corner.

Work Plan for Improving Carbon Emission Accounting System

More Efforts on Addressing Payment Arrears to Private Companies

The State Council and CPC issued Opinions on Addressing Payment Arrears to Companies to intensify the oversight on procurement payments by the government and state-owned enterprises (SOEs). The opinions call for regularly verifying the availability of funds for government investments, tracking fund disbursement, and enhancing supervision over the issue of defaults on payments, especially to small and medium-sized companies (SMEs).

Our take: Delayed or missed payments from government and SOEs to private companies severely reduce their cash flow. This also concerns German companies in China. Since promoting the private sector is high on the government agenda, delayed payments should be among the first issues to tackle.

Opinions on Addressing Payment Arrears to Companies

Policy Snapshot - Recent National and Regional Policies in China (2024/10/16)

Release of a Batch of Financial Policies to Boost the Economy

Several significant financial policies have been announced by the central financial regulators, including the People's Bank of China (PBOC). PBOC announced that from September 27, the interest rate for a 7-day reverse repo operation in the open market has been reduced from the previous 1.70% to 1.50%; the required Reserve Ratio (RRR) for financial institutions has been lowered by 0.5 percentage points. Regarding real estate, commercial banks will be guided to lower the interest rates on loans to around benchmark lending rates, with an estimated reduction of 0.5 percentage points. Additionally, the minimum down payment ratio for first-time and second-time home buyers will be unified at 15%.

Our take: This set of policy measures is considered the most aggressive monetary stimulus package since the COVID-19 pandemic. The measures aim to boost business confidence and stabilize the property market. But it remains to be seen if this – and the measures to come – can truly boost confidence.

The People's Bank of China Decided to Lower the Reserve Requirement Ratio for Financial Institutions

Notice on Improving the Pricing Mechanism of Commercial Individual Housing Loans Interest Rates

Notice on Optimizing the Policy on the Minimum Down Payment Ratio for Individual Housing Loans

The Draft Law to Promote Private Economy

The draft version of the Private Economy Promotion Law was issued by the National Development and Reform Commission (NDRC) and the Ministry of Justice (MOJ). The draft law aims to promote fair competition and equal access to resources for private companies, improve their investment and financing environment, and encourage their participation in scientific and technological innovation. Additionally, it highlights the protection of private property rights and personal interests, while restricting criminal investigations on private enterprises.

Our take: After being in the pipeline for years, the draft for the private sector is finally out and hopefully can contribute to supporting the private sector. However, the draft law lacks a clear definition of private economic organizations, which requires further clarification and interpretation, especially concerning foreign investment. We are handing in our comments to NDRC for more clarification.

The Private Economy Promotion Law (Draft for Comment)

Policy Snapshot - Recent National and Regional Policies in China (2024/09/18)

Negative List for Data Exports at Beijing FTZ

The Beijing Cyberspace Administration together with two other departments jointly released the Negative List Administrative Measures for Data Exports in the Free Trade Zone (FTZ) and the 2024 Data Export Negative List for Beijing FTZ. The measures clarify responsible parties, labor divisions, working processes, and the implementation of Beijing’s FTZ data management. It also includes rules of how to classify data at Beijing’s FTZ, which lists 13 categories and 41 sub-sectors for important data identification.

Our take: Finally, the negative list for the Beijing FTZ has been released, after those for Tianjin FTZ and Shanghai FTZ were issued. These pilots attempt to be frontrunners in trying to handle the complex data transfer topic, focusing on specific sectors such as pharmaceuticals as a start. For German companies in these specific sectors and zones this is likely a good step forward.

The Negative List Administrative Measures for Data Exports in the Free Trade Zone (FTZ)

The Negative List for Data Exports (2024 Edition) for the China (Beijing) Free Trade Zone

The 2024 Negative List for Foreign Investment

The Special Administrative Measures for Foreign Investment Access (Negative List) (2024 Edition) was released by the National and Development Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM). Compared with the previous version, the 2024 edition removed the last wo restrictions in manufacturing including printing and traditional Chinese medicine. As of now there are still 29 items left. The 2024 edition will come into effect on November 1, 2024.

Our take: The last two restricted items had almost no relevance for German companies. Therefore, with the shortening of the list, there will virtually be no change for German businesses in terms of business opportunities. What would be more beneficial are measures that address various other hurdles, such as obtaining licenses or approvals in a timely manner.

The Special Administrative Measures for Foreign Investment Access (Negative List) (2024 Edition)

What Does the New Negative List Mean for German Companies?

More Support for the E-Scooter Trade-in Programs

The Ministry of Commerce (MOFCOM) and four other central government agencies issued an implementation plan to support the trade-in of electric scooters, which includes two types of subsidies: subsidies for all e-scooter trade-ins, with local governments formulating plans based on their specific conditions, and additional subsidies for consumers trading in old battery equipment.

Our take: Since more products have been included in the trade-in program, it reflects the central government's increased emphasis on the initiative.

Implementation Plan to Support the Trade-in of Electric Scooters

Policy Snapshot – Recent National and Regional Policies in China (August 28, 2024)

The 2024 Negative List for Foreign Investment Access

The State Council approved the Special Administrative Measures for Foreign Investment Access (Negative List) (2024 Edition) at the executive meeting. The new edition concentrates on the service sector opening up, highlighting further relaxing foreign investment access in telecommunications, education, pharmaceuticals, and other service sectors. The negative list (2024 Edition) will also fully cancel the restrictions on foreign investment in the manufacturing sector.

Our take: The full text is not yet available. However, there will be no big change in the manufacturing sector, while the changes in the telecommunications industry are still worth tracking by German companies. Stay tuned for our full analysis next Wednesday.

Special Administrative Measures for Foreign Investment Access (Negative List) (2024 Edition)

Accelerating the Establishment of a Dual-Control System for Carbon Emissions

The State Council issued the Work Plan for Accelerating the Establishment of a Dual-Control System for Carbon Emissions. The dual control refers to the management of total carbon emissions and carbon intensity. During the 15th Five-Year Plan period (2026-2030), reducing carbon intensity will be the defining factor for national and economic development, rather than energy intensity. The focus will shift to controlling total carbon emissions after reaching the carbon peak in 2030.

Our take: The major shift from energy consumption to carbon emission control will encourage the use of clean energy in the future. It has the potential to provide ample opportunities for German companies to leverage their expertise in carbon emissions and expand into the Chinese market.

Work Plan for Accelerating the Establishment of a Dual-Control System for Carbon Emissions

More Measures on Promoting Trade in Services

The State Council approved the Opinions on Promoting High-quality Development of Services Trade Through High-level Opening-Up. The opinions aim to promote the internationalization of service trade in key areas such as finance, consultation, design, and certification. They also promote the full implementation of the negative list for cross-border trade in services and facilitate the cross-border flow of resources such as talent, capital, technology, and data in the service industry.

Our take:

This signals Beijing's continued emphasis on trade, especially the role of exports in driving economic growth. More policies targeting the service sector are expected in the coming year to further tap into China's economic potential.

Opinions on Promoting High-Quality Development of Services Trade Through High-level Opening-Up

Policy Snapshot – Recent National and Regional Policies in China (August 7, 2024)

Further Support on Large-scale Equipment Replacement and Consumer Goods Trade-in

The National Development and Reform Commission and the Ministry of Finance launched further policies to support large-scale equipment replacement and consumer goods trade-in. Measures include expanding the scope of applicable equipment and consumer goods, increasing the level of subsidies, and increasing interest rate subsidies from 1% to 1.5%. The document specifies that around CNY 300 billion of special, very-long-term national bonds will be used to support these policies.

Our take: After several months of implementation, the Chinese government is trying to ramp up its efforts to stimulate the economy with these policies, now also strongly involving state-owned companies.

Further Policies to Support Large-Scale Equipment Replacement and Consumer Goods Trade-In

The Shanghai Implementation Plan for Optimizing the Foreign Investment Environment

The Shanghai Development and Reform Commission issued an Implementation Plan for Further Optimizing the Foreign Investment Environment and Increasing Attractiveness to Foreign Investment. This implementation plan is a local-level document based on the previous national 24-point policy on foreign investment. The document proposes supporting foreign-invested R&D centers in accessing relevant financial assistance and participating in government-financed science and technology plan projects. Foreign-invested enterprises will also be supported to participate in green certificate trading, green power trading, and large-scale equipment renewal.

Our take: It's advised to watch out for local policies, which are more reachable for companies.

The Shanghai Implementation Plan for Optimizing the Foreign Investment Environment

Facilitating Hotel Accommodations for Foreigners

The Ministry of Commerce issued a notice on facilitating accommodation for foreigners, aiming to provide better accommodation services. The document requires local governments and online platforms not to restrict accommodation providers from receiving foreign guests. It also encourages operators to improve service capabilities related to foreigners, guide online platforms to optimize foreign language versions of their applications, optimize management services for registering foreign guests' information, and improve the environment for using foreign bank cards.

Our take: Restrictions on booking hotels for foreigners have always been a headache. Hopefully, this policy will be implemented at the local level sooner rather than later.

Notice on Measures to Facilitate Accommodations for Foreigners

Policy Snapshot – Recent National and Regional Policies in China (July 24, 2024)

The Third Plenum's Resolution on Further Deepening Reform

The CPC Central Committee published the full text of the Third Plenum’s resolution. The document contains more than 300 reform measures in 15 sections to be achieved by 2029. The document highlights science and technology innovation, emphasizes the role of private enterprises in the national economy, and suggests fiscal reform as a method to resolve local debts.

Our take: This high-level plan laid out China's major reform goals for the next five years. While there are many initiative stargeting foreign investment, no entirely new measures have been introduced. Stay tuned for our full analysis.

The Resolution on Further Deepening Reform to Advance Chinese Modernization

Three-year Rectification Action Plan for the Government Procurement

The State Council issued a rectification action plan for the government procurement sector, aiming to resolve the currently existing prominent issues in government procurement within three years. The document highlights four main illegal and irregular behaviors for targeted rectification: discriminatory clauses set by purchasers, arbitrary fees charged by procurement agencies, fake documents provided by suppliers, and collusion in bidding. The document proposes to formulate a standard system for domestic products for government procurement, to ensure that products produced by companies of different ownership types can equally participate in government procurement activities.

Our take: This action plan shows the current difficulties ingovernment procurement in a clearer way than before. This is another stepin the long journey towards equal treatment of foreign and domestic companies.

Three-year rectification action plan for government procurement

Pilot Projects forthe Expansion of Service Industry in Six Cities

The State Council launched pilot projects to expand the service industry in six cities, including Shenyang, Nanjing, Hangzhou, Wuhan, Guangzhou, and Chengdu. The document suggests specific opening-up measures tailored to different cities. These include provisions for domestic and foreign joint donations to establish non-profit medical institutions; permission for foreign companies to establish non-profit elderly care institutions; authorization for investment travel agencies to engage in outbound tourism business; and the opening of domestic virtual private network services to foreign investment.

Our take: The service sector is the next key direction of China's opening up. After a period of piloting, these policies are expected to be rolled out nationwide.

Pilot Projects for the Expansion of Service Industry in Six Cities

Policy Snapshot – Recent National and Regional Policies in China (June 26, 2024)

EnterprisesEmission Reduction Plans for Four Industries

The National Development and Reform Commission released detailed emission reduction plans for high-polluting industries, including iron and steel, oil refining, ammonia, as well as cement industries. These action plans set quantitative emission reduction targets for each industry and outline the major tasks.

Our take: These plans are steps derived from the recently released 2024-2025 Energy Conservation and Carbon Reduction Action Plan for energy efficiency and carbon reduction. We expect more similar documents to be released later for other industries.

Emission Reduction Plans for Four Industries

The Regulations on Fair Competition Review

The State Council released the Regulations on Fair Competition Review, which aim to prevent unfair competition and create a fair business environment by reviewing central or local government policies to ensure they do not discriminate against companies or impede competition. The scope of the review covers laws, administrative regulations, local regulations, and specific policy measures related to economic activities. The regulations will take effect on August 1 this year.

Fair competition is essential for the development of companiesin China and for the Chinese economy as a whole. We welcome such steps toensure policies do not harm fair competition.

Regulations on Fair Competition Review

Further Support for High-Quality Development of Sophisticated SMEs

The Ministry of Industry and Information Technology has issued a document on further supporting the development of sophisticated SMEs, supporting the so-called "Little Giants" for a new momentum, for new technologies and new products, as well as to strengthen the supporting capacity of the industrial chain. From 2024 to 2026, "Little Giants" will be supported in 3 batches through financial incentives and subsidies. Provincial level authorities will issue their own specific implementation plans.

Our take: With this, the Chinese government has re-emphasized the need to help high-tech SMEs with financial incentives and subsidies.

Further Supporting the High-quality Development of Sophisticated SMEs

Policy Snapshot – Recent National and Regional Policies in China (June 12, 2024)

Implementation Plan for Establishing a Carbon Footprint Management System

The Ministry of Ecology and Environment released an implementation plan for establishing a carbon footprint management system. The plan aims to establish a basic system by 2027 with about 100 carbon footprint accounting rules and standards for key products. The plan also emphasizes the need to make positive progress in the international alignment of carbon footprint rules.

Our take: Companies are increasingly seen as important actors in the decarbonization journey, as this carbon footprint system clearly shows.

Implementation Plan for Establishing a Carbon Footprint Management System

Action Plan for Building Social Credit System 2024-2025

The National Development and Reform Commission released an action plan for building the social credit system and laid out a major framework for the next two years. The document addresses the rule of law and standardization of the social credit system by introducing the Social Credit Construction Law and an overall planning document on improving the social credit system. Main tasks include credit infrastructure building, credit information sharing, and the enhancement of credit supervision capabilities.

Our take: The social credit system has been in the pipeline for years. Aligning all local databases (technically) seemingly proved more challenging than expected.

Action Plan for Building Social Credit System 2024-2025

Beijing Foreign Investment Regulations

The Beijing People's Congress adopted the Beijing Foreign Investment Regulation, aiming to create a more open, transparent, and predictable market environment for foreign investment. The regulations address many key issues of concern for foreign companies in Beijing, including policy formulation, government procurement, cross-border data transfer, intellectual property rights protection, talent introduction, and communication mechanisms between the government and companies.

Our take: Attracting more foreign investment is still key, and optimizing the business environment is seen as a means to achieve it.

Beijing Foreign Investment Regulations

Policy Snapshot – Recent National and Regional Policies in China (May 29, 2024)

Guidance to Enhance the Supply Chain Management of Manufacturing Enterprises

The MIIT issued a Guidance to Enhance the Supply Chain Management of Manufacturing Enterprises to guide manufacturing companies to establish high-end, intelligent and green supply chains. The document not only requires manufacturing companies to formulate supply chain improvement programs in accordance with the above key directions, but also requires associations, service providers and platform companies to actively support them. It also formulates a practical reference index for manufacturing companies' supply chain management level.

Our take: Maintaining the security of the supply chains is regarded as an important aspect of economic security. It is a timely step to guide companies to build capacity accordingly.

Guidance to Enhance the Supply Chain Management of Manufacturing Enterprises

Notice on the Cost Reduction Work Plan for 2024

The NDRC released the Priority Work Plan of Cost Reduction in 2024 to reduce companies’ costs. The document emphasizes the implementation of pre-tax deduction for R&D expenses and tax relief for the transformation of sci-tech achievements and proposes the reduction of import tariffs on advanced technological equipment and resource goods. It also mentioned the reduction of other costs through for example strengthening the protection of intellectual property rights, standardizing the tender and government procurement system, and settling outstanding debts.

Our take: Cost pressure has strongly increased for companies in China, especially last year. This document is a response to that.

Notice on the Cost Reduction Work for 2024

The Implementation Plan for the Construction of Intellectual Property Protection System

The National Intellectual Property Administration issued the Implementation Plan for the Construction of the Intellectual Property Protection System, which set the goal of realizing the modernization of the intellectual property protection system and protection capacity by 2035. The document aims to provide a guideline of an intellectual property protection system with full coverage of intellectual property rights as a whole.

Our take: Intellectual Property protection is still a headache for foreign companies. This is a step forward for an overall improvement of IP protection which is essential in this innovation productivity-oriented era.

Implementation Plan for the Construction of the Intellectual Property Protection System

Policy Snapshot – Recent National and Regional Policies in China (May 15, 2024)

Implementing Rules for the Automobile Trade-in Subsidy

The Ministry of Commerce released the implementing rules for automobile trade-in subsidy with more practical measures. Private consumers who scrap their cars that were registered before April 30, 2018 and whose cars meet the National III or lower emissions standards may receive a one-time subsidy of CNY 10,000 or CNY 7,000, if they purchase new energy cars. The document also provides guidance on the grant application process as well as management requirements.

Our take: This document is seen as a detailed implementation of the central action plan on the trade-in of consumer goods. However, the amount of subsidies does not seem attractive enough to significantly develop the used car market.

Implementing Rules for Automobile Trade-in Subsidy

Tianjin Free Trade Zone Negative List for Outbound Data Transfer

The Tianjin Commission of Commerce released the China (Tianjin) Pilot Free Trade Zone Data Exit Management List (Negative List). The list specifies the circumstances under which companies are required to conduct a data exit security assessment, sign a standard personal information exit contract, or submit a personal information protection certification and have it approved, in order to transfer data abroad. The list contains a total of 46 items in 13 categories. The transfer of data by companies that are not on the negative list are exempted from these formalities.

Our take: After the idea was put forward by the central government, this is the first negative list for conducting cross border data transfer in the Free Trade Zone (FTZ). Tianjin’s document is expected to serve as a pioneer, followed by other FTZ releasing similar ones.

Tianjin FTZ Negative List for Data Outbound Transfer

Opinions on Improving the Institutional Mechanisms to Promote Bidding and Tendering Market

The State Council issued the Opinions on Improving the Institutional Mechanisms to Promote the Standardization and Healthy Development of the Bidding and Tendering Market. The document aims to promote a highly efficient, standardized, fair and open bidding and tendering market. It proposes policy initiatives such as optimizing the rules of the bidding system, optimizing the process of determining the winning bidder, and strengthening supervision and management. The document also mentions promoting green bidding and procurement as well as supporting the participation of SMEs.

Our take: The bidding and tendering market is another focus of the Chinese government recently. We're still looking forward to seeing foreign companies treated more equally, especially in this crucial area.

Opinions on Improving of Institutional Mechanisms to Promote the Bidding and Tendering Market

Policy Snapshot – Recent National and Regional Policies in China (April 18, 2024)

Rules for Fair Competition Review in the Field of Tendering and Bidding

The NDRC released the final Rules for Fair Competition Review in the Field of Tendering and Bidding. The document stipulates the review and assessment of whether the policies and measures to be formulated in the field of bidding and tendering exclude or restrict fair competition. The document contains 22 articles including review standards and review mechanisms.

Our take: A step forward towards a fairer competition environment for German companies in tendering and bidding, which is strongly needed for German companies. The Chamber previously sent comments on the draft regulations which were in part considered in the final draft. #AdvocacyImpact

Rules for Fair Competition Review in the Field of Tendering and Bidding

Implementation Plan for the Renewal of Equipment in the Industrial Sector

The Ministry of Industry and Information Technology released an implementation plan for the renewal of equipment in the industrial sector. The document highlights “high-end, intelligent, green and safe” as the key directions. The replacement will be driven by energy saving and carbon reduction and other related standards. The document sets the target that by 2027 the scale of investment in equipment in the industrial sector will increase by more than 25% compared with 2023.

Our take: This is one of the “N”s of the 1+N framework of Large-Scale Equipment Replacement action focusing on the industrial sector. It is becoming more and more obvious that the equipment renewal is strongly intertwined with China’s green transformation.

Implementation Plan for the Renewal of Equipment in the Industrial Sector

Strengthening Financial Support for Green and Low-Carbon Development

The People’s Bank of China released opinions on further strengthening financial support for green and low-carbon development. The document put forward several initiatives including optimizing the green financial standard system, establishing a categorized information disclosure system, and promoting the development of green finance products and markets. The document specifically emphasizes the encouragement of foreign institutions to issue green panda bonds and invest in domestic green bonds.

Our take: Green finance is an important way to help achieve China’s dual carbon goals. More opening up of the financial sector would also be helpful here.

Opinions on Further Strengthening Financial Support for Green and Low-carbon Development

Policy Snapshot – Recent National and Regional Policies in China (April 3, 2024)

New Regulations on Cross-Border Data Transfer

The CAC released the new Regulations on Promoting and Standardizing Cross-Border Data Transfer, after a call for comments last September. The document includes some relaxed measures for the transfer of personal data. For important data, it details that all data that has not been classified or publicly released as important data by authorities will not be regarded as important data.

Our take:

The document was only a first—albeit tangible—step toward facilitating cross-border data transfer. As a next step, we have to wait for the actual negative list for Free Trade Zones and the important data catalogs from the authorities.

On Monday, March 25, a more detailed analysis of the update on Cross-border Data Transfer Regulations was sent to our members’ mailboxes.

New Regulations on Promoting and Standardizing Cross-Border Data Transfer

Guidance on Energy Work in 2024

The National Energy Administration released the Guidance on Energy Work in 2024. The document highlights the priority of ensuring national energy security, while promoting the green and low-carbon transformation of energy. It specifies that the share of installed power generators from non-fossil sources should increase to about 55%, and the share of wind and solar power generation should amount to more than 17%.

Our take:

This new document again shows that balancing energy supply with energy efficiency (through new technologies, e.g., in energy storage) is the direction and way forward in the energy field. Progress in this area is absolutely necessary for China’s decarbonization goals and for satisfying the paramount need for (green) energy. However, significant structural barriers still hinder progress in this field.

Guidance on Energy Work in 2024

Policy Snapshot – Recent National and Regional Policies in China (March 21, 2024)

Action Plan for Further Attracting Foreign Investment

The State Council released a new 24-point policy to further attract foreign investment, aimed at boosting foreign investors' confidence in China. The document details plans to expand market access, particularly in banking, insurance, and the stock market, and strengthen policy support for foreign investment via an expansion of the Encouraged Catalogue for Foreign Investment. The document reiterates optimizing the fair competition environment and cleaning up unequal treatment. For cross-border data transfer, it now mentions the white list approach, which was introduced in the Free Trade Zones. In an attempt to better align with international trade and investment rules, intellectual property protection and accession into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Digital Economy Partnership Agreement (DEPA) are highlighted.

Our take:

This is another high-level document to attract foreign investment. This action plan can be seen as an update to the 24-point policy from last August, including the moves from recent months and a few more detailed measures. Compared to the 24-point policy, it is framed more as a call for action.

Action Plan for High-Level Opening up and Greater Efforts to Attract Foreign Investment

Action Plan to Promote Large-Scale Replacement of Equipment and Consumer Goods

The State Council issued an Action Plan to promote large-scale replacement of equipment and consumer goods, aiming to boost both investment and consumption. The main points include: Increasing policy support, promoting high-end, intelligent, and green development, and setting new, high-level standards to guide companies to meet the new requirements. The measures will be applied to equipment in key industries, construction and infrastructure, transportation, old agricultural machinery, education, culture, tourism, and medical care, as well as consumer goods such as automobiles and home appliances.

Our take:

Promoting large-scale equipment replacement is China's main method of boosting consumption this year. German companies can look out for potential subsidies for machinery renewals and opportunities in public procurement.

Action Plan to Promote Large-Scale Replacement of Equipment and Consumer Goods

Policy Snapshot – Recent National and Regional Policies in China (March 7, 2024)

Government Work Report 2024

In the Government Work Report delivered on March 5, the main tone of the policy approach in 2024 will be stability and a long-term innovation development approach. The report sets the growth target at “around 5%” and plans a more proactive fiscal policy.

Our take: Many German companies didn’t feel much of last year’s 5.2% growth. With a similar target for 2024, the potential economic development in China is not very promising. The “high-quality development” pursuit provides both opportunities and challenges. More in yesterday’s WeChat post.

State Council Government Work Report

German Chamber’s Analysis of the Government Work Report

Guidance Catalogue for Green and Low Carbon Transformation Industries (2024 Edition)

NDRC has issued the Guidance Catalogue for Green and Low-Carbon Transition Industries (2024 Edition), aiming to generate and build up new drivers of growth for green development. The document puts forward the industries that need to be supported and cultivated in green and low-carbon transformation. Local government and departments are encouraged to introduce more measures that provide incentives and support for production, distribution, and consumption in listed industries.

Our take: During this revision, the NDRC changed the title of the document from the Green Industry Guidance Catalogue to the Green and Low Carbon Transformation Industries Catalogue, emphasizing the need to integrate green industries in implementing China's dual-carbon goals.

Guidance Catalogue for Green and Low Carbon Transformation Industries (2024 Edition)

Implementation Plan for the Enhancement of Data Security Capabilities in the Industrial Sector

The MIIT issued the Implementation Plan for the Enhancement of Data Security Capabilities in the Industrial Sector (2024-2026), aiming at the gradual establishment of a data security guarantee system in the industrial field by the end of 2026. The Implementation Plan focuses on enhancing the capabilities of industrial enterprises in data protection, data security supervision, as well as supportive capacity, including data security technology, products, services, and talents.

Our take: While data should also be used as an economic resource, China emphasizes data security in this document, in this case, to avoid risks such as data breaches and ransom attacks.

Implementation Plan for the Enhancement of Data Security Capabilities in the Industrial Sector(2024-2026)

Opinions on Further Optimizing Payment Servicesand Enhancing Payment Convenience

The People's Bank of China (PBoC) drafted the Opinions on Further Optimizing Payment Services and Enhancing Payment Convenience, which was considered and adopted by the State Council executive meeting on February 23. Focusing on the pain points in access to payment services for the elderly and foreigners, the document puts forward initiatives such as promoting the acceptance of foreign bank cards, improving the bank card acceptance environment, improving the environment for cash usage, optimizing foreign currency exchange and cash services, and promoting the internationalization of mobile payment.

Our Take: We have recently seen many policies targeting the facilitation of foreigners’ lives in China. These can also be considered the low-hanging fruits of the 24Points.

Press Conference Introducing the Opinions on Further Optimizing Payment Services and Enhancing Payment Convenience

The Launch of the People's Court Case Database

The Supreme People's Court opened a People's Court Case to the public, which contains authoritative cases as reference and demonstrative value for similar cases. The Database aims to review authoritative cases with reference and demonstrative value for deciding similar cases, summarizing various difficult and complex issues of legal application, and providing judges with guidelines for case deciding.

Our Take: We appreciate that the database is open again and hope it will remain so, for the sake of judicial transparency.

People's Court Case Database

Policy Snapshot – Recent National and Regional Policies in China (February 22, 2024)

Support for New Energy Vehicles Trade

The Ministry of Commerce (MOFCOM) has recently released opinions to support the healthy development of trade and cooperation for New Energy Vehicles (NEVs). The document proposes to enhance the ability of NEV companies and their supply chain partners to improve their international operation capabilities through measures such as promoting the establishment of overseas R&D centers, improving the compliance capability of overseas operations, and strengthening cooperation with overseas companies. Meanwhile, export procedures for NEVs and batteries will be optimized. The government will also provide support in terms of financial loans, trade promotion and optimization of the business environment.

Our take: Given the weakening of global trade, the sluggishness of China's trade and the overcapacity issues, strengthen NEV companies and their activities abroad is a logical step. This step will surely be closely watched by EU regulators.

Opinions on Supporting the Healthy Development of Trade and Cooperation in New Energy Vehicles

Tianjin Pilot Free Trade Zone Enterprise Data Categorization and Classification Standard Specification

Tianjin issued the Standard Specification for Enterprise Data Categorization and Classification in China (Tianjin) Pilot Free Trade Zone (FTZ). The specification applies to the data generated, collected, stored, transmitted and processed by companies in production and operation in the Tianjin FTZ. The data is divided into 13 major categories and 40 subcategories. The document describes a definition for 3 levels of data (core, important, and general data), and the data classification method.

Our take: Companies have been waiting for a long time for more clarification on important data. As this is the first standard specification for data classification among the pilot FTZs, it will be an important pilot and a signal for more policies to come for other FTZs.

China (Tianjin) Pilot Free Trade Zone Enterprise Data Categorization and Classification Standard Specification

Shanghai's New Measures on Optimizing the Business Environment

Shanghai released new measures on optimizing the business environment, which emphasizes a market-oriented, rule of law-based and internationalized business environment. The measures aimed at establishing a business environment with trade and investment facilitation, administration efficiency, standardization of government services, and a sound rule of law system. Shanghai will improve its International Services Portal and release foreign-related policies in multiple languages. A standardization collaboration platform for foreign-invested enterprises in Shanghai will be established to improve public participation and transparency in the formulation of standards.

Our take: Shanghai has been regularly updating its measures to optimize the business environment. This time, establishing a standardization cooperation platform for foreign-invested enterprises is worth observing to see if it indeed helps foreign companies to participate in standard setting on an equal basis.

Shanghai’s Action Plan for Continuously Creating an Internationally First-Class Business Environment

Zhejiang Measures on Expanding Effective Investment

Zhejiang Provincial Development and Reform Commission released measures to increase effective investment in 2024. The document mentioned the aim of keeping investment fundamentals stable and optimizing structures of investment of higher quality with a targeted 6% growth rate in 2024. The document also called for Zhejiang to seize the foreign investment access restriction lifting policy opportunity in manufacturing, as well as to expand the opening up of the services sector to strengthen the attraction of major foreign investment projects.

Our Take: Here, the Zhejiang document echoes an earlier speech by the central leadership, which mentions the lifting of investment restrictions in manufacturing. Since applying for licenses in the sector often include hidden obstacles, we are curious what that will mean in practice.

Notice on Policies for Expanding Effective Investment in Zhejiang Province in 2024

Policy Snapshot – Recent National and Regional Policies in China (January 25, 2024)

Five Measures to Facilitate Entries of Foreigners to China

The National Immigration Administration introduced five measures to facilitate foreigners’ visits to China. The measures including a relaxation of port visa application requirements, 24-hour direct transit without undergoing border check procedures at nine major airports, easier application for a visa extension or reissue; multiple-entry visas, if needed, for foreigners already in China; and minimization of the types of the materials required for visa applications.

Our take: This is another step to attract foreigners to come to China. These measures alone are not enough, however, to re-establish trust.

Five Measures to Facilitate Entries of Foreigners

Opinions on Promoting the Construction of a Beautiful China

The State Council issued Opinions on Promoting the Construction of a Beautiful China, pointing out that China's development has entered a stage of high-quality development with a focus on accelerating green development and decarbonization. The document put forward work tasks in green transformation, pollution prevention, ecological stability and security. Quantitative targets were proposed in various aspects such as air quality, water quality, and transportation.

Our take: After the focus has been on (trying to) getting the economy back on track in 2023, we might see stronger focus on the environment in 2024. More inspections in environmental protection and stricter regulatory implementation can be expected in the future.

Opinions on Promoting the Construction of a Beautiful China

Opinions on Developing the Silver-Hair Economy and Enhancing the Well-Being of the Elderly

To actively address population ageing, the State Council released Opinions on Developing the Silver-Hair Economy and Enhancing the Well-Being of the Elderly to guide the development of relevant industries. The document emphasizes the development of livelihood businesses including catering, home assistances and community services. It also proposes to expand the supply of appropriate products to meet the diversified needs of the market.

Our take: This is the first policy document at the national level titled "Silver Economy". In the current aging social environment, related industries are now being emphasized, including not limited to as a measure to ramp up consumption via this cohort.

Opinions on Developing the Silver-Hair Economy and Enhancing the Well-being of the Elderly

Implementation Plan of Pudong Comprehensive Pilot Reform 2023-2027

The State Council released the Implementation Plan of Pudong Comprehensive Pilot Reform 2023-2027. The plan gives the district more autonomy in key areas and steps in opening and reform. According to the document, Pudong will explore the mechanism for convergence between the negative list for foreign investment with the general negative list for market access. Measures also include promoting mutual recognition of Chinese and foreign standards as well as encouraging foreign-invested enterprises to participate in domestic standard-setting.

Our Take: Pudong New Area has long been a pioneer in opening up. To make less difference between lists dedicated to foreign investment and national ones is a good step.

Implementation Plan of Pudong Comprehensive Pilot Reform 2023-2027

Policy Snapshot – Recent National and Regional Policies in China (January 10, 2024)

Catalogues of Technologies Prohibited and Restricted for Export

The Ministry of Commerce (MOFCOM) released the Catalogues of Technologies Prohibited and Restricted for Export of the PRC. Mining engineering technology, photovoltaic silicon wafer preparation technology, CRISPR gene editing technology and synthetic biology technology, which were proposed in the draft for comments, have not been added in the final version.

Our take: China is facing the dilemma of using a ban on technology exports to protect against high-tech leakage, which in turn could hurt its own exporting companies. Interestingly, the controversial photovoltaic technology was not added to the list this time.

Catalogues of Technologies Prohibited and Restricted for Export

New Three-Year Data Action Plan

The National Data Administration released the "Three-Year Action Plan Data Factor ×" (2024-2026). The plan aims to better develop the digital economy, with data as a key element. The plan focuses on 12 industries, such as industrial manufacturing, modern agriculture, commerce and trade, transportation, financial services and low carbon development.

Our take: The “×” here is the multiplication sign, which means that the data not only serves as a factor of production, but also is expected to cause a multiplier effect in China’s future economic development.

Three-Year Action Plan Data Factor × (2024-2026)

The Guidance Catalogue for Industrial Structure Adjustment - 2024 version

The NDRC released the 2024 version of the Guidance Catalogue for Industrial Structure Adjustment. The orientation of the new revision includes: promoting high-end, intelligent, and green manufacturing industries, enhancing the core competitiveness of manufacturing industries, accelerating the transformation and upgrading of traditional industries, accelerating high-level scientific and technological self-reliance and self-improvement, and promoting the deep integration of the modern service industry with the advanced manufacturing industry and modern agriculture.

Our take: The industry catalogue serves as a direction for China's major industry development in the future. This will also outline priority industries for public and private investment.

Guidance Catalogue for Industrial Structure Adjustment

Implementation Rule of the Patent Law

The State Council released the amendment of the implementation rule of the Patent Law. The amendments focus on five major aspects, including: facilitating patent applications, improving the quality and efficiency of patent examination, strengthening the administrative protection of patents, promoting the transformation and utilization of patents, and strengthening alignment with international rules.

Our Take: This is a further step in facilitating the patent application process. In particular, it provides patent holders with patent term extensions due to approval delays.

Implementation Rule of the Patent Law

Policies to Facilitate Cross-Border Trade and Investment

The State Administration of Foreign Exchange (SAFE) released measures to facilitate cross-border trade and investment. These measures aim to improve the foreign exchange management system and services, simplifying the handling of relevant business procedures and making business-to-business foreign exchange easier.

Our Take: This is another step towards attracting and stabilizing foreign investment.

Policies to Facilitate Cross-Border Trade and Investment