Effective from December 1, 2024

On April 26, 2024, the 9th session of the Standing Committee of the 14th National People's Congress voted to adopt the Tariff Law of the People's Republic of China (hereinafter referred to as the “Tariff Law”), which will take effect on December 1, 2024. The Tariff Law consists of seven chapters and 72 articles, and its main contents are as follows:

1.Adhering to the Party's Leadership Over Tariff Work and Establishing a Sound Tariff Management System 

The law clarifies the powers of the Standing Committee of the National People's Congress, the State Council, and the Customs Tariff Commission of the State Council (hereinafter referred to as the “Tariff Commission”) regarding adjustments to tariff categories and rates, as well as the basic system for tariff collection and management.

2.Clarifying the Scope of Application of Tariffs 

It stipulates that customs shall levy tariffs on goods allowed for import and export by the People's Republic of China, and on items brought into the country, in accordance with this law and relevant laws and administrative regulations. The consignees of imported goods, the consignors of exported goods, and the passengers or recipients of imported items are taxpayers for the purposes of this law. In response to the development of cross-border e-commerce, the law explicitly designates e-commerce platform operators, logistics companies, customs declaration enterprises, and other units or individuals responsible for withholding and remitting tariffs on cross-border retail imports as the tariff withholding agents.

3.Regulating the Setting, Adjustment, and Implementation of Tariff Categories and Rates

The law clearly states that the tariff schedule, which includes the tariff categories and rates, is an integral part of this law. It defines various types of tariffs, including the Most Favored Nation (MFN) rate, agreement rate, preferential rate, and general rate for imports, and the export tariff rate, as well as the tariff quota rate and provisional rate for both import and export. The law also outlines the applicable rules and adjustment mechanisms for these tariffs.

4.Improving the Systems for Tariff Calculation, Tax Exemptions, and Special Circumstances 

The law provides for tariff calculation methods based on value, quantity, or a combination thereof. It maintains the current rules for determining the customs value for tariff purposes. The law also clarifies items that are exempt from or eligible for reduced tariffs and authorizes the State Council to establish special tariff policies for specific circumstances such as national interest protection, promoting foreign relations, economic and social development, and technological innovation, or in response to emergencies, subject to filing with the Standing Committee of the National People's Congress. The law retains the existing provisions for tariff exemptions, reductions, and other special circumstances such as temporary import and export goods.

5.Aligning with International High Standards and Improving the Tariff Collection Management System 

The law introduces the possibility of separating the release of goods and the determination of tax amounts during tariff collection. It stipulates that taxpayers and withholding agents may choose to make declarations and pay taxes through customs as per the regulations. Additionally, it codifies the practice of allowing taxpayers and withholding agents to make aggregate tax payments. The time limit for requesting a refund of overpaid tariffs is extended from 1 year to 3 years. The law also specifies that customs authorities shall promptly refund any overpaid taxes to the taxpayer upon discovery.

6.Coordinating Development and Security, Strengthening Tariff Countermeasures 

While maintaining existing anti-dumping, countervailing, and safeguard measures, as well as the imposition of retaliatory tariffs, the law also introduces measures for countries and regions that fail to fulfill the most-favored-nation clauses or tariff preference terms in international treaties or agreements signed or participated in by China. Countermeasures may be taken on a reciprocal basis, in accordance with China's obligations under relevant international treaties. Furthermore, to ensure the effectiveness of these measures, the law provides for the adjustment of tariffs and other countermeasures against actions that circumvent the provisions of Chapters 2 and 3 of this law or reduce taxable amounts without a reasonable commercial purpose.

Interim Provisions on Network Anti-Unfair Competition

Effective from September 1, 2024

In order to strengthen compliance guidance, regulate competitive behavior, maintain a fair competitive market environment, and promote the sound and sustainable development of the digital economy, the State Administration for Market Regulation has formulated the Interim Provisions on Network Anti-Unfair Competition (hereinafter referred to as the "Provisions"). The Provisions were issued on May 11, 2024, and will come into effect on September 1, 2024.

The Provisions consist of five chapters and 43 articles, with the main contents as follows:

1.Clarifying Overall Requirements 

The Provisions aim to maintain fair competitive market order, encourage innovation, protect the legitimate rights and interests of operators and consumers, and promote the sound and sustainable development of the digital economy. They innovate regulatory models, clarify collaborative regulation mechanisms, coordinate the efforts of various parties, and focus on enhancing the effectiveness of comprehensive governance.

2.Comprehensively Listing and Identifying Unfair Competitive Behaviors in the Network

2.1The Provisions clarify the new manifestations of traditional unfair competition behaviors, such as counterfeiting and false advertising, in the online environment. They regulate issues like fake reviews, manipulated credit scores, and other hot topics, aiming to eliminate regulatory blind spots.

2.2The Provisions further specify unfair competition behaviors in the network covered by anti-unfair competition laws, listing examples and identifying factors of behaviors such as traffic hijacking, malicious interference, and malicious incompatibility.

2.3The Provisions regulate new forms of unfair competition behavior implemented through technical means, such as reverse fake reviews, illegal data acquisition, and discriminatory treatment. They also include a catch-all provision to provide regulatory support for potential new issues and behaviors.

3.Strengthening Platform Responsibility 

Platform enterprises possess massive data and connect numerous entities. They are not only the key targets for regulating network unfair competition but also critical nodes for collaborative regulation. The Provisions emphasize the responsibility of platform operators, urging them to strengthen the management and regulation of competitive behavior within the platform. It also regulates issues such as the misuse of data algorithms to gain competitive advantages.

4.Optimizing Enforcement and Case Handling Procedures 

Given the wide-reaching, cross-platform, and cross-regional nature of network unfair competition behaviors, special provisions have been made for supervision and inspection procedures. Jurisdiction over major cases is determined based on the linkages between cases. The Provisions introduce an expert observer system to provide intellectual and technical support for resolving difficult issues in network unfair competition cases.

5.Clarifying Legal Liabilities 

The Provisions leverage the "combined effect" of market regulatory laws and regulations, effectively aligning with laws such as the Anti-Unfair Competition Law, E-commerce Law, Anti-Monopoly Law, and Administrative Penalty Law. It also specifies the legal liabilities for the confiscation of illegal gains, strengthening the effectiveness of regulation.

Revised Administrative Measures for Infrastructure and Public Utilities Concession

Effective from May 1, 2024

The National Development and Reform Commission, together with the Ministry of Finance and six other departments, has released an important revision to the Administrative Measures for Infrastructure and Public Utilities Concession (hereinafter referred to as the "Measures"). The revision aims to further clarify and regulate the management framework of concessions, particularly focusing on guiding and supporting the involvement of private capital, especially private enterprises, in concession projects.

The Measures consist of eight chapters and 67 articles, with the main content summarized as follows:

1.Regulating the Implementation of Concessions 

According to Article 3 of the Measures, infrastructure and public utilities concessions refer to the government selecting legal persons or other organizations, both domestic and foreign, through public competition to serve as concessionaires. These concessionaires are granted exclusive rights to invest in, construct, operate, and earn profits from infrastructure and public utilities within a specified period and scope, while providing public products or services.

The areas of application include transportation, municipal engineering, ecological protection, environmental governance, water resources, energy, sports, tourism, and more. For the applicable projects, the Measures clarify that concessions should focus on user-pay projects, specifying that user-pay includes both direct charges by concessionaires to users and charges collected by the government or its authorized agencies on behalf of users.

2.Prohibiting Unjustified Charges to Concessionaires 

According to Article 4 of the Measures, concessionaires are granted exclusive rights to invest in, construct, and operate specific infrastructure and public utility projects and earn profits during the agreed concession period. However, they must provide public products or services that meet quality and efficiency requirements and are subject to legal supervision. The government encourages and supports concessionaires in improving efficiency, reducing costs, and enhancing public welfare, but it prohibits the imposition of charges on concessionaires without legal or regulatory basis. It also forbids the abuse of administrative powers under the guise of infrastructure and public utility concessions to exclude or restrict competition.

3.Encouraging Private Enterprises to Participate 

According to Article 18 of the Measures, private enterprises are encouraged to actively participate in concession projects through direct investment or methods such as sole proprietorship, holding, or joint ventures. Specific participation methods for private enterprises will be determined based on the list of newly built or expanded concession projects published by the State Council’s development and reform departments that support private enterprise involvement.

4.Extending the Maximum Concession Period 

To safeguard the legitimate rights of concessionaires, Article 8 of the Measures stipulates that the concession period should generally not exceed 40 years. For large-scale projects with long return periods, the concession period may be extended as necessary, subject to actual circumstances, unless otherwise stipulated by law or regulation.

Revised Fair Competition Review Rules in the Bidding and Tendering Field

Effective from May 1, 2024

As the first departmental regulation on fair competition review in specific fields and industries, the Fair Competition Review Rules ("Rules") detail the review standards, mechanisms, and supervision for ensuring fair competition in the bidding and tendering field. The Rules address common and frequent unreasonable restrictions in bidding and tendering practices, setting out specific review requirements. It focuses on breaking down barriers to competition in areas such as prequalification, evaluation methods, evaluation standards, contract award standards, credit evaluations, and the collection of security deposits.

The Rules consist of five chapters and 22 articles, with the main content summarized as follows:

1.Review Authorities 

Administrative organs and organizations authorized by law serve as the policy-making bodies responsible for reviewing and evaluating whether proposed regulations, administrative normative documents, other policy documents, and specific policy measures related to economic activities of business entities in the bidding and tendering field exclude or restrict competition. Policies that have not been reviewed or that are found to exclude or restrict competition cannot be enacted.

2.Review Standards 

The Rules set out specific standards for reviewing, addressing transaction barriers in areas such as prequalification, evaluation methods, evaluation standards, contract award standards, credit evaluations, and security deposit collection, to promote fair competition in the review process.

3.Review Mechanism 

During the fair competition review process, policy-making bodies must seek appropriate feedback from relevant business entities, industry associations, and other stakeholders. Unless required by law to maintain confidentiality, public consultations should be conducted to solicit opinions from the broader society.

4.Supervision Responsibilities 

Bidding and tendering guidance departments at all levels, along with relevant regulatory bodies, should establish a mechanism for collecting leads on market barriers in the bidding and tendering sector. Any entity discovering violations of the fair competition review regulations can report these violations to the relevant authorities and their higher-level organs. Departments responsible for bidding and tendering guidance and policy-making bodies should promptly rectify any policies that violate fair competition principles.