Published by ChinaMNC · Futian

China's State Council Signals Policy Direction on AI, Pricing, and Business Regulation: What Foreign Founders Should Know

A recent State Council executive meeting chaired by Premier Li Qiang reviewed progress on the 'AI Plus' initiative and advanced draft amendments to the Teachers Law and Pricing Law, along with changes to administrative regulations. This article summarizes the key points for foreign founders operating in China.

State Council Meeting Highlights Policy Priorities for Foreign Founders

On October 16, Premier Li Qiang chaired a State Council executive meeting in Beijing. The meeting reviewed progress on the “AI Plus” initiative, discussed draft amendments to the Teachers Law and the Pricing Law, and approved a draft decision to amend and repeal certain administrative regulations. For foreign founders registering or operating a company in China, these discussions provide insight into upcoming regulatory and policy trends that may affect business strategy, compliance, and market competition.

AI Plus Initiative: Focus on Application and Industrial Integration

The meeting emphasized that artificial intelligence is a key variable shaping future development. It called for advancing the “AI Plus” initiative by leveraging China’s comprehensive industrial system, rich application scenarios, and strong engineering capabilities. The focus is on driving technological innovation through practical applications.

Key points include:

• Strengthening the foundation: Enhance technical research and algorithm innovation, promote coordination between computing and electricity, and increase the supply of high-quality data to address weaknesses and build on strengths.
• Empowering applications: Prioritize the real economy, strengthen supply-demand alignment, encourage joint research and development, advance pilot testing, and expand scenario cultivation so that AI technology can be better transformed into real productivity.
• Balancing development and security: Implement differentiated and classified policies by industry, strengthen risk assessment, and uphold the bottom line of AI safety.

Foreign founders in AI-related sectors should note the emphasis on application-driven innovation and the integration of AI with the real economy. This may signal support for collaborative R&D and pilot projects, but also heightened attention to safety and risk management.

Draft Amendments to the Teachers Law: Implications for Education Sector

The meeting discussed and principle-approved the draft amendment to the Teachers Law, which will be submitted to the Standing Committee of the National People’s Congress for deliberation. The draft aims to strengthen guarantees for teachers’ treatment and rights, reduce non-teaching burdens, improve public services for teachers, and protect their professional dignity and lawful rights. It also seeks to cultivate a high-quality, professional teaching workforce, improve the teacher education system, enhance teaching capabilities, and foster a society that respects teachers and education.

While this may not directly affect most foreign founders, companies involved in education technology, training, or recruitment should monitor the legislative process for potential changes in the education sector’s regulatory environment.

Draft Amendments to the Pricing Law: Curbing Unfair Price Competition

The meeting also discussed and principle-approved the draft amendment to the Pricing Law, which will be submitted to the NPC Standing Committee. The amendment aims to adapt to new circumstances by improving price governance mechanisms, refining government pricing procedures, and clarifying criteria for identifying unfair pricing practices and related legal liabilities.

Specifically, the meeting called for:

• Governance of low-price disorderly competition in accordance with laws and regulations, including improving supporting rules for industry cost investigations and prohibiting below-cost dumping, and strengthening price enforcement and supervision.
• Continuing to regulate price competition in the platform economy, guiding enterprises to enhance the value of their products and services, and fostering a fair and orderly market environment.

Foreign founders, especially those in e-commerce, platform businesses, or consumer goods, should be aware of the increased focus on pricing practices. The amendment may lead to stricter enforcement against predatory pricing and require adjustments to pricing strategies to ensure compliance.

Amendments and Repeals of Administrative Regulations

The meeting decided to amend certain provisions of 14 administrative regulations, including the Implementation Regulations of the Archives Law, and to repeal 4 administrative regulations, including the Provisions on Limitation of Liability for Maritime Passenger Transport between Chinese Ports. While the specific details of these changes are not provided in the source, foreign founders should stay informed about regulatory updates that may affect their industry, particularly in areas like data archiving or transportation.

Practical Takeaways for Foreign Founders

• AI sector: Opportunities exist in application-driven projects, but be mindful of safety and risk assessment requirements. Consider partnerships for joint R&D and pilot testing.
• Pricing and competition: Review pricing policies to avoid low-price dumping and unfair competition. Platform economy businesses should expect ongoing scrutiny.
• Education sector: Monitor the Teachers Law amendment process for potential regulatory changes affecting education-related businesses.
• Regulatory compliance: Keep abreast of amendments to administrative regulations that may impact your operations, such as data management or transport.

The meeting also reviewed other matters, but no further details were disclosed.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.