2017 Top 10 Developments in the Chinese Legislation

NDRC issues new outbound investment rules

In December 2017, the NDRC issued the Administrative Measures for Outbound Investment by Enterprises. The measures reshape the regime governing Chinese outbound investment activities.

NPC enacts revised Anti-unfair Competition Law

In November 2017, the NPC Standing Committee enacted a revised version of the Anti-unfair Competition Law. The 2017 law presents the first amendment to, and an overhaul of its 1993 predecessor and brings sweeping changes to the elements of administrative offences of specified unfair competition acts including, among others, commercial bribery, passing off, infringement of trade secrets and so on.

CBRC issues guidance on information disclosure by P2P lending agencies

In August 2017, the CBRC issued the Guidelines for Information Disclosure on the Business Activities of Network Loan Information Agencies. The guidelines purport to regulate information disclosure by platforms that facilitate online peer-to-peer (P2P) lending activities.

SPC issues 4th interpretation of Company Law

In August 2017, the SPC issued the Provisions on Various Issues on the Application of the Company Law (IV). The provisions bring clarity to certain important company law issues, including for example, shareholder’s right to know, shareholder’s right to profit distribution, enforcement of pre-emptive rights and so on.

MOFCOM amends FIE record-filing measures

In July 2017, MOFCOM issued a revised version of the Interim Measures on the Administration of Record-filing of the Establishment and Amendment of Foreign-invested Enterprises. The major changes in the revised interim measures are that, where no special administrative measures for foreign investment apply and no roundtrip investment is involved, the MOFCOM record-filing regime should apply to foreign acquisitions of domestic Chinese companies and foreign strategic investments into Chinese listed companies.

NDRC and MOFCOM issue new foreign investment catalogue

In July 2017, the NDRC and MOFCOM jointly issued the seventh revision of the Catalogue of Industries for Guiding Foreign Investment. The 2017 catalogue reflects China’s new regime for regulating market access for foreign investment and the introduction of the first nationwide negative list.

China publishes 2017 negative list for FTZs

In June 2017, the General Office of the State Council distributed the Special Administrative Measures for Foreign Investment Access in the Pilot Free Trade Zones (Negative List). The 2017 list comprises 95 special management measures divided among 15 industry sectors and 40 sub-sectors and applies to foreign investment in China’s 11 FTZs.

CAC circulates draft rules on exporting personal information and important data

In April 2017, the CAC circulated for public comment the Measures on Security Assessments for the Export of Personal Information and Important Data (Draft for Comment). The draft measures purport to regulate cross-border data transfers of personal information and important data.

China enacts general provisions of civil code

In March 2017, the NPC enacted the General Provisions of the Civil Code. These broad-based civil code provisions are comprised of existing civil norms and legal rules based on, and developed from, the General Principles of Civil Law 1986.

CAC circulates draft security review measures for network products and services

In February 2017, the CAC circulated for public comment the Measures on the Security Review of Network Products and Services (Draft for Comment). The measures are aimed at implementing one aspect of the 2016 Cybersecurity Law, that is, the national security review of products and services used in certain information networks in China.