China Adopts Revised Civil Procedure Law
Shanghai Weekly Bulletin
lssue 1,September 2023
Shanghai Weekly Bulletin is an information service presented by the Foreign Affairs Office of Shanghai Municipal People’s Government in collaboration with Wolters Kluwer to foreign-funded enterprises, foreign-related institutions as well as people from overseas living in Shanghai. Covering major national and Shanghai foreign-related news, event information, policy Q&A and interpretations in the past week, it keeps you up-to-date with the latest foreign-related policies and developments in Shanghai.
Laws and Regulations
【National】
1. China Adopts Revised Civil Procedure Law
【Keywords: Civil Procedure Law】
The Decision of the Standing Committee of the National People’s Congress on Revising the Civil Procedure Law was adopted at the fifth session of the Standing Committee of the 14th National People’s Congress (NPC) on September 1, 2023. The revised law will take effect on January 1, 2024.
Source: NPC website
2. China Adopts Amendment to the Administrative Reconsideration Law
【Keywords: Administrative Reconsideration Law】
An amendment to the Administrative Reconsideration Law of the People’s Republic of China was adopted at the fifth session of the Standing Committee of the 14th National People’s Congress (NPC) on September 1, 2023. The amended law will take effect on January 1, 2024.
Source: NPC website
3. China Adopts Foreign State Immunity Law
【Keywords: Foreign State Immunity Law】
The Law of the People’s Republic of China on Foreign State Immunity was adopted at the fifth session of the Standing Committee of the 14th National People’s Congress (NPC) on September 1, 2023. The law will take effect on January 1, 2024.
Source: MFA
4. Draft Revisions to the Company Law for Third Reading under Public Comment
【Keywords: Company Law】
The National People’s Congress (NPC) published on its website on September 1, 2023 the Company Law of the People’s Republic of China (Draft Revisions for Third Reading) to solicit public opinions for 30 days.
Source: NPC website
5. China Halves Stamp Duty on Securities Trading
【Keywords: Stamp Duty; Halving】
The Ministry of Finance (MOF) and the State Taxation Administration (STA) released on August 27, 2023 the Announcement on Halving Stamp Duty on Securities Trading, in an effort to activate the capital market and boost investor confidence. According to the Announcement, the stamp duty on securities trading will be halved starting from August 28, 2023.
Source: MOF
6.China Eases Criteria for Obtaining First-home loans
【Keywords: Criteria for Obtaining First-home Loans】
The Ministry of Housing and Urban-Rural Development (MOHURD), together with the People's Bank of China and the National Financial Regulatory Administration, jointly issued the Circular on Easing the Criteria for Obtaining First-home Loans. According to the Circular, homebuyers will be regarded as first-home buyers if they, or their family members, do not own a local home. Regardless of their previous use of home mortgage loans, they can enjoy preferential mortgage rates as first-time buyers.
Source: MOHURD
7. China Cuts Interest Rates of Existing Mortgages for First-home Purchases
【Keywords: Real Estate; Down Payment; Interest Rates of Existing Mortgages】
The People’s Bank of China (PBC) and the National Financial Regulatory Administration (NFRA) released on August 31, 2023 the Circular on Lowering the Interest Rates of Existing Mortgages for First-home Purchases, clarifying that, starting from September 25, 2023, borrowers of existing mortgages for first-home purchases will be able to negotiate with lenders to reduce the interest rates of their existing mortgages, either by replacing existing mortgages with new ones or by changing the mortgage contracts.
Source: PBC
【Shanghai】
1. Shanghai Issues Plan to Advance Reform of the Commitment System for Corporate Investment Projects in Lin-gang Special Area
【Keywords: Lin-gang Special Area, Corporate Investment】
Shanghai Municipal Development and Reform Commission issued on August 31, 2023 the Implementation Plan for the Reform of the Commitment System for Corporate Investment Projects in the Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone. The Plan proposes nine measures, including deepening the commitment system reform, implementing a commitment-based access system, enhancing collaborative supervision, advancing comprehensive assessment of a region, streamlining drawing approval process, strengthening in-process and ex-post supervision, improving completion inspections and municipal support services, confirming commitment fulfillment, and introducing credit rewards and penalties.
Source: Shanghai Municipal Development and Reform Commission
2. Shanghai Regulates Requirements for Reducing or Exempting Onsite Inspections on Quality Management System Audit of Medical Device Registration
【Keywords: Medical Devices; Reducing or Exempting Onsite Inspections】
Shanghai Municipal Medical Products Administration issued on August 26, 2023 the Guidelines for the Reduction or Exemption of Onsite Inspections for the Quality Management System Audit of Medical Device Registration in Shanghai (for Trial Implementation). The guidelines, consisting of 14 articles in six chapters, are applicable to applicants for medical device registration in Shanghai when undergoing audits on Category 2 or Category 3 medical device registration. It helps inspectors determine whether onsite inspections can be reduced or exempted and clarifies the requirements for document review and non-comprehensive inspections.
Source: Shanghai Municipal Medical Products Administration
3. Shanghai Releases Eight Measures and Judicial White Papers to Promote Creation of Law-based Business Environment
【Keywords: Shanghai No.2 Intermediate People’s Court; Law-based Business Environment】
Shanghai No.2 Intermediate People's Court released on August 28, 2023 the Eight Measures for Promoting the Creation of Law-based Business Environment, and the Series of Judicial White Papers on the Creation of Law-based Business Environment. The new measures introduce new development concepts based on the Eight Measures for Further Optimizing the Law-based Business Environment issued in 2019. These measures aim to deepen the creation of a law-based business environment with a more comprehensive system and content that is more closely aligned with practical needs. The white papers make in-depth analysis and examination of business issues and proposals in criminal, civil, and commercial domains, covering five areas including e-commerce network crimes, money laundering crimes, disputes related to the subleasing of commercial properties, commercial agency by estoppel, and issues involving shareholder capital responsibilities.
Source：Shanghai High People’s Court
4. Shanghai Customs Releases Layout Plan for Bonded Warehouses and Export Supervision Warehouses
【Keywords: Bonded Warehouses and Export Supervision Warehouses; Layout Plan】
The Announcement of Shanghai Customs on the Layout Plan for Bonded Warehouses and Export Supervision Warehouses was released on August 28, 2023. It outlines layout plan for the two types of warehouses in the customs area, with a focus on promoting coordinated development in the Shanghai region, facilitating integration of the eastern and western parts, and fostering balanced and interconnected development. It emphasizes the implementation of planning controls.
Source: Shanghai Customs
5. Shanghai Publishes Ten Typical Copyright Cases in 2022
【Keywords: Copyright】
The Shanghai Copyright Administration recently published the Ten Typical Copyright Cases in Shanghai in 2022, in an effort to support the creation of an international hub for intellectual property rights protection, enhance the publicity of copyright protection to increase public awareness. The cases include four criminal cases, three administrative cases and three civil cases, involving online livestreaming, sport events, books, audio-visual websites, games, computer software, music and other fields.
Source: Shanghai Copyright Administration
One Week in Shanghai
【Corporate Activities】
1. SABIC Celebrates 10th Anniversary of Shanghai R&D Center
【Keywords: SABIC】
On the afternoon of August 29, 2023, Saudi Basic Industries Corporation (SABIC) celebrated the 10th anniversary of its Shanghai R&D Center and inaugurated its first Innovation Day event at its Greater China headquarters. At this milestone celebration, SABIC reaffirmed its commitment to market-oriented technological innovation, expanding its presence in China, and contributing to China's high-quality development. This initiative aligns with the "Belt and Road" initiative of China and Saudi Arabia’s "2030 Vision".
Source: Pudong Release
【Social Activities】
1. 2023 ESG Global Leaders Conference to Be Held
【Keywords: ESG】
The 2023 ESG Global Leaders Conference will be held at the Greenland Bund Center, Huangpu District on September 13-15. The theme of the conference is “Sustainable Economic Growth, Social Development and Environmental Protection”.
Source: Shanghai Huangpu
2. Marintec China 2023 to Be Held in December
【Keywords: Marintec China】
August 27, 2023 marks the beginning of the 100-day countdown to Marintec China 2023, which will be held at the Shanghai New International Expo Center on December 5-8. The event is themed on “Rebuild Together”, and the forum is themed on “Innovation, Wisdom and Zero Carbon” to reflect strong anticipations for the future of the industry.
Source: MarintecChina
3. 22nd China Shanghai International Arts Festival to Be Held
【Keywords: Shanghai International Arts Festival】
The 22nd China Shanghai International Arts Festival, hosted by the Ministry of Culture and Tourism and organized by Shanghai Municipal People's Government, will be held from October 15 to November 15. During the arts festival, more than 400 performances and exhibitions will be held, representing a growth of over 20% compared to previous festivals. The level of internationalization and the proportion of debut performances also reached historic highs.
Source: Shanghai Release
4. Shanghai Philharmonic Orchestra Kicks off 2023-2024 Music Season
【Keywords: Shanghai Philharmonic Orchestra】
The opening concert of the Shanghai Philharmonic Orchestra's 2023-2024 music season took place at the Shangyin Opera House. In the new music season, the Orchestra will present a total of 25 concerts in six series: Masters and Classics, Musical Journey around the World, Music Prism, Getting Closer to Philharmony, Chamber Music, and Festivals. During the season, the Orchestra will premiere several works for the first time worldwide or in China. The 2023-2024 music season will feature nearly 30 Chinese and international artists gracing the stage of the Shanghai Philharmonic Orchestra.
Source: Shanghai Tourism
Q&A
Q1: Officials from the People’s Bank of China and the National Financial Regulatory Administration take questions from reporters regarding the adjustment and optimization of housing credit policies - What are the key points of the adjustment and optimization of the differentiated housing credit policies?
A: The first is to unify the policy floor for the minimum down payment ratio for commercial housing loans across the country. This policy will no longer distinguish between cities that implement "property purchase restrictions" and those that do not. The minimum down payment ratio for first-time and second-time homebuyers is now set at no less than 20% and 30%, respectively.
The second is to reduce the lower limit of interest rate for second-time homebuyers to no less than the Loan Prime Rate (LPR) plus 20 basis points. The lower limit of interest rate for first-time homebuyers remains unchanged at no less than LPR minus 20 basis points.
Local authorities have the discretion to determine the minimum down payment ratios and lower limits of interest rates for first-time and second-time homebuyers within their jurisdictions based on the principle of tailoring housing policies to local conditions. This allows them to consider the local property market situation and regulatory requirements when making these policies.
Source:People's Bank of China
Expert Perspective
The Establishment of Legislative Framework on Data Security – Analysis of the Key Points of the Data Security Law of the People's Republic of China
By Liu Xinyu, Wu Haoli (Zhong Lun Law Firm)
[Continuing from the last issue]
The fifth point is to clarify regulatory requirements on cross-border data flow
In the digital era, cross-border flow of data has become increasingly common. However, due to the fact that cross-border data flows often involve issues related to national cyberspace sovereignty, data sovereignty, and data security, they have become a focal point of concern when countries legislate on data matters. The Data Security Law regulates cross-border data flows through multiple articles, including Article 11, 24, 25, 26, 31, and 36, to clarify regulatory requirements for cross-border data flow. Generally speaking, while China encourages cross-border data flow, it has also introduced regulations for data security review, data export control, management of the outbound transfer of important data, and equivalent countermeasures. China also specifies regulatory requirements for domestic entities when they are required to provide data to foreign judicial or law enforcement agencies.
Article 36 has garnered widespread attention since the first draft was published. Article 36 stipulates that "the competent authorities of the People's Republic of China shall handle requests from foreign judicial or law enforcement agencies for data provision in accordance with relevant laws and international treaties or agreements that the People's Republic of China has concluded or participated in, or on the basis of the principle of equality and mutual benefit. Without approval of the competent authorities of the People's Republic of China, organizations or individuals shall not provide data stored within the territory of the People's Republic of China to foreign judicial or law enforcement agencies." "No data provision without approval" means that if domestic entities provide data to foreign judicial or law enforcement agencies in violation of the law, they will make it harder for foreign authorities to exercise long-arm jurisdictions. Article 48 of the law defines the penalties for providing data to foreign judicial or law enforcement agencies without approval of the competent authorities. This provision offers stronger legal grounds for organizations and individuals within the territory to refuse unreasonable requests from foreign judicial or law enforcement agencies.
In light of the impact of regulatory requirements related to cross-border data flows on businesses, it is advisable for companies to plan and make compliance arrangements earlier.