Published by ChinaMNC · Xupu

China’s State Council Signals Pragmatic AI Push and Fair Competition Rules for Foreign Founders

A recent State Council meeting reviewed AI+ progress, draft revisions to the Teachers Law and Pricing Law, and changes to administrative regulations. Here’s what foreign entrepreneurs should note when planning or running a company in China.

State Council Meeting: What Foreign Founders Should Know

On 16 October, Premier Li Qiang chaired a State Council executive meeting that covered several policy areas relevant to businesses operating in China. The meeting reviewed the progress of the “AI+” initiative, discussed draft revisions to the Teachers Law and the Pricing Law, and approved a decision to amend and repeal certain administrative regulations. For foreign founders registering or running a company in China, these developments offer signals about regulatory priorities and compliance expectations.

AI+ Initiative: Focus on Real-World Application

The meeting underlined that artificial intelligence is a key variable for future development. It noted that China’s industrial system is comprehensive, its application scenarios are rich, and its engineering capabilities are strong. The government’s approach will emphasize using practical applications to drive technological innovation and will continue to expand the “AI+” initiative.

Key measures highlighted

• Strengthening the foundation: The meeting called for technical breakthroughs, algorithm innovation, coordination of computing power and electricity, and increased supply of high-quality data.
• Promoting application: Efforts will focus on the real economy, improving supply-demand connections, encouraging joint research and development, advancing pilot testing, and cultivating more application scenarios to turn AI technology into real productivity.
• Balancing development and security: Policies will be differentiated by industry and risk level, with enhanced risk assessment to safeguard against AI-related risks.

Foreign founders in tech or AI-related sectors may find opportunities in these application-focused initiatives, particularly if their solutions align with industrial upgrading and real-economy needs. However, they should also prepare for a regulatory environment that stresses both innovation and safety.

Teachers Law Revision: Impact on Education Sector

The meeting discussed and in principle approved a draft revision of the Teachers Law, which will be submitted to the Standing Committee of the National People’s Congress for review. The revision aims to strengthen guarantees for teachers’ pay and rights, reduce non-teaching burdens, improve social public services for teachers, and protect their professional dignity and lawful rights. It also seeks to build a high-quality professional teaching force, improve teacher education, enhance teaching capabilities, and reinforce professional ethics.

While the Teachers Law primarily concerns the domestic education system, foreign investors in education and training may need to monitor how the revised law could affect employment practices and qualification requirements in the sector.

Pricing Law Amendment: Curbing Unfair Price Competition

The meeting also discussed and in principle approved a draft amendment to the Pricing Law, to be submitted to the NPC Standing Committee. The amendment responds to new circumstances and aims to improve price governance mechanisms, refine government pricing procedures, and clarify the criteria for identifying unfair pricing practices and related legal liabilities.

Specific measures include:

• Addressing low-price disorderly competition in accordance with the law.
• Improving supporting rules for industry cost investigations and prohibiting below-cost dumping.
• Strengthening price enforcement and supervision.
• Regulating price competition in the platform economy and guiding companies to enhance the value of their products and services.
• Fostering a fair and orderly market environment.

For foreign founders, these provisions signal tighter scrutiny of pricing strategies that could be deemed anti-competitive, especially in platform-based business models. Companies should review their pricing policies to ensure compliance with evolving rules.

Administrative Regulation Changes: Simplification and Repeal

The meeting decided to amend certain provisions of 14 administrative regulations, including the Implementation Regulations of the Archives Law, and to repeal four administrative regulations, including the Provisions on Limitation of Liability for Maritime Passenger Transport between Ports. These changes are part of ongoing efforts to streamline regulations and may reduce compliance burdens in specific areas.

Foreign founders should stay informed about which regulations affect their industry, as some amendments could simplify procedures or remove outdated requirements.

Practical Takeaways for Foreign Founders

• AI and tech sectors: Leverage application-driven policies but ensure robust risk management and data compliance.
• Education: Monitor Teachers Law revisions for potential impacts on hiring and operations.
• Pricing and competition: Review pricing strategies to avoid low-price dumping and unfair competition, particularly in platform businesses.
• Regulatory updates: Keep track of amended and repealed administrative regulations to maintain compliance.

These policy directions reflect China’s emphasis on innovation, fair competition, and regulatory refinement. Foreign founders should integrate these considerations into their business planning and compliance frameworks.

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

For assistance with company registration and operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.