On 28 June 2023, the 14th National People's Congress of the People's Republic of China ("PRC") passed the Foreign Relations Law of the PRC (中华人民共和国对外关系法) ("FRL"), which took effect on 1 July 2023. This law provides a comprehensive framework for the development of China's foreign relations and serves as a guideline for maintaining national sovereignty, security, and development interests. It is China's first fundamental, guiding, and comprehensive law on foreign relations since the establishment of the PRC.
The FRL stipulates that the PRC shall enhance the system of rule of law in foreign affairs in relation to the following:
- Treaty obligations;
- Protection of national interests;
- Countermeasures and restrictions;
- Diplomatic relations;
- Implementation of sanctions;
- Foreign immunity;
- Protection of overseas interests;
- Protection of foreign individuals and organisations; and
- International cooperation.
Overall, aside from Articles 32 and 33 of the FRL, which state that China will seek to impose countermeasures if other countries or trade blocs impose arbitrary tariffs and, in particular, sanctions upon China "without reference to international laws", the FRL essentially outlines China's rules of engagement, the majority of which are clarifications of widely accepted conventions. In addition, this is the first time that a Chinese legislation makes clear that treaties and agreements concluded or participated in by China shall not contravene the Constitution of China.
As this law mainly sets out the basic principles of China's foreign relations, how it may be implemented or enforced has yet to be further observed.
On 30 May 2023, the Cyberspace Administration of China ("CAC") issued the Guidelines for the Filing of Standard Contracts for Cross-border Transfer of Personal Information (First Edition) (个人信息出境标准合同备案指南(第一版)) ("Guidelines"). The purpose of these Guidelines is to guide personal information processors ("PIPs") to file a Standard Contract for Cross-border Transfers of Personal Information (个人信息出境标准合同) ("Standard Contract") in a standardised and orderly manner. Please click here to read our article on the release of the Measures for the Standard Contract for Cross-border Transfers of Personal Information (个人信息出境标准合同办法), together with the corresponding Standard Contract, which came into effect on 1 June 2023.
To file a Standard Contract, the Guidelines stipulate a list of documents to be submitted, including the following:
- A Photocopy of the Unified Social Credit Code Certificate (stamped with the company's seal);
- A Photocopy of the ID card of the legal representative (stamped with the company's seal);
- A Photocopy of the ID card of the person in charge of the filing process (stamped with the company'’s seal);
- The original copy of the signed power of attorney for the person in charge of the filing process;
- The original copy of the signed letter of commitment;
- The original copy of the executed Standard Contract; and
- The original copy of the Personal Information Protection Impact Assessment Report ("PIPIA Report").
The Guidelines also provide templates for items (d) to (g) above. In particular, the template for PIPIA Reports gives effective guidance on how to carry out PIPIA work in practice, which was previously ambiguous. In addition, the Guidelines stipulate that a PIPIA Report shall be completed within three months prior to the date of filing, and no material changes should occur by the date of filing.
Furthermore, the Guidelines set out the timeline for the filing process. After the receipt of the required documents, the competent cyberspace administration shall, within 15 working days, complete the examination of the documents and notify the PIP of the filing results.
On 26 April 2023, the Standing Committee of the 14th National People's Congress passed the amended PRC Counter-Espionage Law ("Amended Counter-Espionage Law"), which took effect on 1 July 2023. The Amended Counter-Espionage Law introduces changes to the Counter-Espionage Law that was issued in 2014 ("2014 Counter-Espionage Law"). According to the official interpretation, the Amended Counter-Espionage Law is a response to the proliferation of non-traditional espionage activities in recent times, to better safeguard the national security of the PRC. A summary of the key highlights in the Amended Counter-Espionage Law is set out below.
- Expanding the scope of application of the Counter-Espionage Law
The Amended Counter-Espionage Law refines the definition of espionage activities. Compared to the 2014 Counter-Espionage Law, Clause 4 of the Amended Counter-Espionage Law explicitly provides that "collaborating with spy organizations and their agents" and "conducting cyber-attacks, intrusions, interferences, controls, destructions against governmental authorities, confidential-related organizations, or critical information infrastructure" will be categorised as espionage activities. The Amended Counter-Espionage Law also includes "documents, data, materials, and items related to national security and interests" in the scope of protection, which are comparable and in addition to "national secrets and information" which have already been included in the 2014 Counter-Espionage Law.
In addition, the Amended Counter-Espionage Law introduces a new provision in Clause 4 which includes espionage activities against a third country within the territory of the PRC or making use of the PRC’s citizens, organisations or other conditions, which may endanger the national security of the PRC, in the scope of the Amended PRC Counter-Espionage Law.
- Clarifying and detailing the authority and power of Law Enforcement Agencies
The Amended Counter-Espionage Law further clarifies and details the authority and power of relevant law enforcement agencies when investigating and dealing with espionage activities, such as inspecting personal belongings, retrieving necessary electronic data, summoning relevant persons, inquiring into property information, etc., provided that necessary legal procedures such as obtaining approval from the officials in charge of national security authority at the municipal level, etc., are followed.
The Amended Counter-Espionage Law also broadens the scope of application of administrative penalties for minor offenses.
- Strengthening the support for the counter-espionage work
The Amended Counter-Espionage Law provides support for the counter-espionage work by establishing a counter-espionage coordination working mechanism and implementing security precautions. It also provides that any citizens and originations shall support and assist in the counter-espionage work and keep any national secret in relation to counter-espionage work confidential.
As the media have reported several cases of enforcement carried out by the Government and investigations at the offices of some foreign consulting firms in China, the Amended Counter-Espionage Law has aroused special concerns and discussions among foreign-invested companies (especially consulting firms) in the PRC. Generally speaking, it is advisable for foreign investors to act prudently in handling data-related matters and pay special attention to the legality of the collection, storage, use, processing and export of data originating from China. For foreign investors in certain sensitive industries such as consulting and financing, regular compliance training and review of the PRC Counter-Espionage Law is recommended.
Enterprise Singapore has announced that the 4th Singapore-Shanghai Comprehensive Cooperation Council ("SSCCC") meeting took place in Singapore on 24 April 2023.
Established in 2019, SSCCC serves as a pivotal platform in developing deeper ties between Singapore and Shanghai, as well as between Singapore and the broader Yangtze River Delta region.
At the meeting attended by Singapore and Chinese officials and business representatives, the participants agreed to enhance bilateral cooperation in digital and green economies and deepen strong partnerships in financial services and innovation. The leaders also reaffirmed their commitments to the global climate change agenda and agreed to explore more substantive partnerships in sustainability. For example, Singapore intends to work with Shanghai to facilitate greater cross-border green and transition finance to support the region's transition, and to pilot green and digital solutions in improving global maritime supply chains.
A total of 15 agreements, comprising 14 Memoranda of Agreement ("MOUs") and one Letter of Intent ("LOI"), were signed at the meeting, covering areas such as people-to-people exchanges, financial services, technology and innovation, as well as emerging areas such as digital economy. These MOUs and LOI include, amongst others, the following:
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Partners |
Purpose |
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Singapore Business Federation (SBF) – China International Import Expo Bureau (CIIEB)
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Collaboration on Singapore's participation in the 6th China International Import Expo
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Maritime and Port Authority (MPA) - Shanghai Maritime University |
Collaboration on maritime talent and knowledge exchange |
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OCBC Bank - UnionPay International |
Collaboration on digital payments |
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Singapore Exchange (SGX) – Shenwan Hongyuan Securities
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Collaboration in equities derivatives, FICC and equities-related business
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Ministry of Health (MOH) – Shanghai Municipal Health Commission
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Cooperation in healthcare
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Singapore Tourism Board (STB) – Shanghai Municipal Administration of Culture and Tourism
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Promotion of tourism exchanges and cooperation
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Infocomm Media Development Authority (IMDA) and Shanghai Municipal Commission of Economy and Informatization
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Collaboration in digital economy
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CrimsonLogic – Shanghai Data Group
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Cooperation to enhance cross-border flow of goods through digitalisation |
On 21 April 2023, the Monetary Authority of Singapore (MAS) and the People's Bank of China ("PBC") announced the establishment of the China-Singapore Green Finance Taskforce ("GFTF").
The GFTF is co-chaired by MAS' Assistant Managing Director (Development and International) and Chief Sustainability Officer, Ms Gillian Tan, and Chair of the China Green Finance Committee, Dr Ma Jun. The members of GFTF comprise senior representatives and sustainable finance experts from Singapore and China's financial institutions, and green FinTech companies.
To better meet the region's needs as it transitions to a low carbon future, the GFTF seeks to:
- provide a platform for knowledge exchange;
- enhance bilateral cooperation between China and Singapore in green and transition finance; and
- facilitate greater public-private sector collaboration.
At the inaugural meeting held in Chongqing on 21 April 2023, the GFTF discussed joint initiatives that aim to scale up green and transition financing flows between China, Singapore, and the region. Initially, the GFTF will establish three workstreams focusing on the following priority areas:
- Taxonomies and Definitions. Under the International Platform on Sustainable Finance ("IPSF"), MAS and PBC will collaborate to: (i) achieve interoperability between the China and Singapore taxonomies; (ii) enhance the use of the IPSF's Common Ground Taxonomy; and (iii) deepen the understanding of transition activities defined by China and Singapore.
The IPSF's Common Ground Taxonomy provides an in-depth comparison of the existing taxonomies for environmentally sustainable investments and puts forward areas of commonality and differences between the European Union's and China's green taxonomies.
- Products and Instruments. China International Capital Corporation and the Singapore Exchange will establish a workstream to strengthen sustainability bond market connectivity between China and Singapore. This includes the issuances of, and mutual access to, green and transition bond products in China and Singapore.
- Technology. A workstream will be established by Beijing Green Exchange and Metaverse Green Exchange that leverages technology to facilitate sustainable finance adoption. This will include the piloting of digital green bonds with carbon credits.
Global interest in Generative Artificial Intelligences ("AI") AI technologies has increased tremendously in recent months, given the emergence of ChatGPT (followed by similar technologies). While these technologies will no doubt continue to develop and become more sophisticated over time, they have already demonstrated the potential to greatly enhance our efficiency and productivity. However, as with any new technology, there are also concerns about their impact on society and the need for responsible use and regulation.
The proliferation of such Generative AI technologies has therefore attracted the attention of Chinese regulators. On 11 April 2023, the Cyberspace Administration of China (CAC) issued the Administrative Measures for Generative Artificial Intelligence Services (Draft for Comment) (生成式人工智能服务管理办法(征求意见稿) ("Draft Measures") for public comments.
For more information, click here to read our Legal Update which provides an overview of these Draft Measures and their potential impact on Service Providers providing Generative AI services in China.
On 1 April 2023, the Singapore International Commercial Court ("SICC") announced that the Supreme Court of Singapore and the Supreme People's Court of the People's Republic of China had signed a Memorandum of Understanding ("MOU") on Cooperation on the management of international commercial disputes in the context of the Belt and Road Initiative ("BRI") through a Litigation-Mediation-Litigation ("LML") framework.
The two courts concluded the MOU in view of the increasing complexity of international commercial disputes particularly in the context of the BRI ("BRI disputes"). The development of an LML framework to resolve BRI disputes is in recognition of the flexibility and efficiency afforded by mediation, which not only saves the parties' time and costs but also preserves business relationships in the course of the dispute resolution process.
Key features of the MOU include the following:
- SICC and the China International Commercial Court ("CICC") will each develop and implement the LML framework for the management of BRI disputes.
- The LML framework in each court may be developed in collaboration with any domestic or foreign mediation expert and any domestic, foreign or international mediation institution in accordance with their respective procedural laws and rules of court.
- Both courts will share information on their LML framework and other dispute management practices, including information on procedural rules, case management protocols, and enforcement processes relating to SICC and CICC.
- Both courts agree to promote the LML framework by recommending to the parties to disputes the adoption of the prescribed LML Model Clauses in appropriate circumstances.
The signing of the MOU demonstrates the strong commitment of the two countries to collaborate to enhance the resolution of BRI disputes.
