On 22 October 2019, the State Council released the “Regulation on Optimising Business Environment” (Regulation) which will be implemented on 1 January 2020. The highlights of the regulation are as follows:
- the Mainland of China (the Mainland) will strive to deepen the opening of its economy, drive foreign investment and promote equal treatment of all entities;
- the Mainland adheres to the protection of all entities from various aspects such as rights, opportunities, rules and regulations. It also gears up to safeguard the property rights, related legitimate rights and interests of all entities, as well as the personal and property safety of business operators. The regulation further prohibits government agencies from conducting illegal seizure and freeze of the properties of all entities and business operators. They are also prevented from detaining business operators illegally;
- in order to strengthen the protection of intellectual property (IP) rights, the Mainland is attempting to establish a punitive damages system for IP rights violation and a mechanism for synergistic protection of IP rights. Besides, the Mainland is making an effort to improve the mechanisms for diversification of IP rights dispute settlement and support of IP rights pursuance;
- government tender and procurement activities shall be conducted in an open, transparent and equitable manner to treat all entities on an equal footing; and
- government agencies shall not default on the payment of goods and services to enterprises, while large enterprises shall not take advantage of small-and-medium-sized enterprises by defaulting on the payment to the latter.
For details, please see:
“Regulation on Optimising Business Environment” (Chinese Version Only)