China’s draft pharmaceutical trial rules aim to balance innovation with drug availability; CAC issues first rules to regulate facial recognition technology; and UBS becomes the 5th wholly foreign-owned securities firm in China.
Jianwei (Jerry) Fang, Xiaoyu (Arthur) Jin and Haoyi Sun of Zhong Lun Law Firm discuss the reasons behind, and the implications of, Illumina’s inclusion in China’s Unreliable Entity List, as well as compliance recommendations for multinational corporations
China strengthens Anti-Foreign Sanctions Law in response to U.S. restrictions; Chinese firms move production facilities overseas amidst key economic changes; and China introduces regulations to protect interests in overseas IP disputes
China specifies penalties for a failure to implement sanction countering measures. Maximum fine for antitrust concentration is set at 10% of the previous year’s sales proceeds. State Council restricts provision of evidence outside of mainland China for IP cases.
A compliance audit is required when processing personal information of more than 10 million persons / CLP Reference: 5600/25.02.12 ; Promulgated: 2025-02-12; Effective: 2025-05-01
Multinationals must comply with new Chinese labeling requirements while the U.S. and EU have other specifications; A second Chinese court ruling affirms AI-generated images have copyright protection; and Supreme People’s Court cracks down on fraudulent behavior of prepayment service providers
A service provider that provides online information content dissemination services is required to verify AI labeling. New rules are set forth for capital increases of state-owned enterprises. Total asset requirement is relaxed for Hong Kong and Macao insurance company investments. Guangzhou allows 100% loss in a seed direct investment or angel direct investment.
Foreign expat insurance procedures are revised to align with Convention acceded to by China / CLP Reference: 2300/04.12.23 ; Promulgated: 2024-12-23 ; Effective: 2024-12-23
China regional headquarters in Shanghai that are upgraded to Asia-Pacific regional headquarters will be offered financial incentives / CLP Reference: 2300/25.02.17 ; Promulgated: 2025-02-17 ; Effective: 2025-03-01—2030-02-28
