Legislate into the future
The next five years will see major changes to China's business and legal environment.
On Thursday, the legislature (NPCSC) released its five-year legislative plan through 2028.
It's ambitious: The plan contains 130 legislative tasks – that's the second highest since 1993, when the NPCSC released its first ever five-year plan.
- 79 tasks are slated for deliberation, meaning they will likely be finalized before 2028.
- 51 tasks will be worked on, but are less likely to be finalized.
Slated for deliberation are new laws regulating:
- Value-added tax
- Consumption tax
- Tariffs
Laws on the following will likely increase compliance burdens for companies:
- National development plans
- Financial stability
- Food security
- Energy regulations
Amendments to the following laws will likely improve the business environment:
- Unfair Competition Law
- Product Quality Law
- Foreign Trade Law
- Customs Law
- Tax Collection Administration Law
- Cybersecurity Law
Get smart: All companies should analyze the plan for regulatory risks and opportunities – and adjust business and engagement strategies accordingly.
Get smarter: The legislative five-year plan is not binding. The legislature tweaks its priorities every year when it puts together its annual legislative plan, usually released in April.
Stay tuned: In the days and weeks ahead, we will be digging into the plan to determine the impacts for businesses.