Martial Arts, Publication of a Guide to New Chinese Laws Changing from the New Year

[Asia Economy Reporter Hwang Yoon-joo] With the extensive implementation of China's revised economic and trade-related laws starting this year, the Korea International Trade Association (KITA) has urged Korean companies operating in China to exercise special caution.

On the 7th, KITA's Beijing branch, in collaboration with the Chinese law firm Jingdu, published the report titled "Changes in China's Economic and Trade Regulations in 2020." The report highlighted the major regulatory changes effective from the 1st, including ▲protection of foreign investment ▲simplification and standardization of administrative services ▲expansion of recall targets to all consumer goods.

The "Foreign Investment Law (Wai Shang Investment Law)" grants national treatment, meaning foreign and Chinese companies are subject to equal conditions and procedures for investment items not specifically listed in the negative list.

It also guarantees fair participation of foreign companies in government procurement of products and services. Furthermore, it prohibits administrative agencies from forcing foreign companies to transfer technology through administrative means and enhances protection of foreign companies' intellectual property rights by establishing punitive damages for IP infringement and dispute resolution systems.

The "Regulations on Improving the Business Environment," aimed at minimizing interference in market economic activities and improving administrative services for enterprises, have also been implemented. These regulations promote standardization of administrative services and the establishment of a unified online administrative service platform. Customs and trade-related tasks are to be handled through a single window, and customs clearance procedures and costs will be disclosed.

The scope of recall targets, previously limited to toys for children under 14, automobiles, and railway equipment, has been expanded to all consumer goods starting this year. If a product defect exists, the manufacturer must submit a recall plan within 10 days and announce and carry out the recall within 3 days of submission.

Additionally, from the 1st, China began applying provisional import tariffs lower than the most-favored-nation rates on 859 items, including frozen pork, and announced plans to reduce tariffs on 176 IT products starting in July. The amended Patent Law, which increases penalties for patent infringement, is scheduled to be implemented within the year, and the formal launch of the Civil Code is expected in March, signaling many upcoming changes.

Park Min-young, head of the Beijing branch, stated, "China's economic and trade-related laws have become more specific compared to the past, and previously insufficient areas are continuously being supplemented. We hope this report helps companies fully understand the newly implemented Chinese laws and systems and adapt to changes in the Chinese business environment."

This content was produced with the assistance of AI translation services.