CHINA Looking Back: 2020 and Gazing Into: 2021 Looking Back: 2020
2020 has been a very unusual year for China and the world. During the first quarter of 2020, after being struck by, and then having gradually recovered from, the COVID-19 pandemic, the central government of China and various ministries at the central governmental level have released temporary policies, reliefs and guidelines to support the enterprises affected by the pandemic. The local governments have also issued temporary policies and reliefs in accordance with the guidelines issued by the central government. These measures are aimed at helping enterprises - especially small- and medium-sized enterprises (SMEs) - relieve the burden caused by the pandemic and overcome the difficulties faced during this period and resume normal production and operations as soon as possible.
On the other hand, with the growing tensions between China and the United States (as well as certain other foreign countries) over trade and technology in 2020, China has promulgated and/or amended various regulations and/or policies, which signal China's intention to enhance the protection of its emerging technologies and intellectual properties for reasons of both national security and strategic importance. In addition to the PRC Foreign Investment Law and its Implementation Regulation, both of which have come into effect since 1 January 2020, other regulations and/or policies that were introduced include, among others, the Amendment to Copyright Law, the Amendment to Patent Law, the Amendment to Antitrust Law (draft for public comments), the promulgation of Data Security Law (draft for public comments), the promulgation of Personal Data Protection Law (draft for public comments), the promulgation of Regulation on Unreliable Entity List, and the adjustments of Catalogue of Technologies Prohibited or Restricted from Export.
In addition, the most important change in the legal landscape in 2020 has definitely been the promulgation of the PRC Civil Code, which was adopted by the 13th National People's Congress and has come into effect on 1 January 2021. The PRC Civil Code consists of 1,260 articles in seven parts, including general provisions, property, contracts, personality rights, marriage and family, inheritance, tort liability, and supplementary provisions. The PRC Supreme Court issued relevant judicial interpretations for the Civil Code on 30 December 2020 and 31 December 2020 and it may be expected that more judicial interpretations and regulations will be issued. The Civil Code is the most extensive legislative document in China to date, which symbolises a milestone in the development of China's legal system.
Gazing Into: 2021
Given the status of the pandemic and the current geopolitical situations of the world, 2021 will continue to be a significant year. Although facing various challenges, China is still expected to continue with its market-based reform by implementing its first Civil Code and the new Foreign Investment Law, and further eliminating foreign investment restrictions to meet its commitments under the Regional Comprehensive Economic Partnership Agreement.
Five judicial interpretations on the Civil Code were released by the PRC Supreme Court on 30 December 2020 and 31 December 2020, and all of them have taken effect from 1 January 2021. The 2020 versions of the Negative Lists for Foreign Investment and the Catalogue of Industries for Encouraged Foreign Investment were released in June 2020 and December 2020, respectively.
A number of implementation rules and regulations in relation to the Civil Code and foreign investment are expected to come in 2021.
In addition, the following key trends and/or developments are to be noted:
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facilitation of foreign investment;
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increased regulatory enforcement of export control and tightened national security review of foreign investment;
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reshaping of fragmented legal framework for data protection; and
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addressing extraterritorial infringements.
Full Report
Click on the link below for the full report which provides summaries of the key legal and case law developments related to the above areas:
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Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only
intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.
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