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NPC Standing Committee Approves Major Bills; Private Economy Promotion Law Enters Review
In a significant year-end legislative push, China’s National People’s Congress Standing Committee (NPCSC) concluded its 13th session by approving and reviewing key laws with far-reaching implications across taxation, anti-corruption, environmental safety, and private sector development.
Highlights from the Session:
VAT Law Passed: The long-anticipated Value-Added Tax Law was officially approved and will come into effect on January 1, 2026, codifying China’s VAT framework into statutory law for the first time.
Supervision Law Amended: Key updates to the Supervision Law, effective June 1, 2025, aim to tighten anti-corruption enforcement and expand the scope of oversight mechanisms.
Science & Technology Law Revised: The Science and Technology Popularization Law was immediately revised, continuing efforts to build public awareness and boost R&D diffusion nationwide.
Private Sector Legislation Under Review: In response to declining business confidence, the draft Private Economy Promotion Law originally outlined in the Third Plenum’s reform roadmap has entered formal review. While it reiterates many existing policies, it codifies protections and support for private enterprises.
Rule of Law Propaganda Law Introduced: A new Law on Publicity and Education on the Rule of Law seeks to institutionalize decades-old efforts to embed legal awareness into China’s governance culture, particularly through education and mass communication campaigns.
Unfair Competition Law Update: A significant revision of the Anti-Unfair Competition Law targets issues in the digital economy, with strengthened rules on trade secrets, commercial bribery, false advertising, and abuse of market position.
Hazardous Chemicals Law Drafted: Spurred by past industrial accidents, the Hazardous Chemicals Safety Law has been introduced to tighten rules on manufacturing, storage, transportation, and emergency responses to chemical incidents.
Global Implications for Multinational Companies
These legislative developments come when global businesses are recalibrating their China strategies. The VAT Law, in particular, formalizes the framework for value-added taxation, a critical concern for multinationals operating in complex cross-border supply chains. Meanwhile, foreign investors and domestic entrepreneurs will closely monitor the private sector bill for signals on market liberalization and regulatory predictability.
Additionally, updates to the Unfair Competition Law highlight a trend toward greater scrutiny of digital platforms and commercial practices, aligning with broader global regulatory movements around antitrust and consumer protection.
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