This newsletter summarises the latest developments in Technology, Media and Telecom in China with a focus on the regulatory, enforcement and industry developments in this area.
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Regulatory Developments
On March 2, the Supreme People’s Court held a press conference to release the Provisions of the Supreme People’s Court on Several Issues Concerning the Application of Law in the Trial of Cases of Disputes over Online Consumption (I) (the “Provisions”). The Provisions improve the system of unconditional return of commodities within seven days, providing that if a consumer unpacks and inspects a commodity for the necessity of inspecting the commodity and such inspection does not affect the integrity of the commodity, the e-commerce operator cannot claim the system of unconditional return of commodities within seven days is not applicable. The Provisions point out that although an e-commerce platform does not actually carry out self-operated business, if its logo is enough to mislead consumers into believing that it is self-operated by the platform, the e-commerce platform operator shall also bear the responsibility of the commodity seller or service provider.
It was reported on March 30 that the Cyberspace Administration of China (CAC), the State Taxation Administration, the State Administration for Market Regulation jointly issued the Opinions on Further Regulating Livestream Profiting to Promote Sound Development of the Industry (the “Opinions”). The Opinions point out that livestreaming platforms shall intensify the administration over livestreaming account registration management and livestreaming account classification management, and cooperate with the enforcement or investigation conducted by authorities.
3. The NDRC and the Ministry of Commerce issued the Market Access Negative List (2022)
On March 25, the National Development and Reform Commission (NDRC) and the Ministry of Commerce issued the Market Access Negative List (2022) (the “List”), a comprehensive revision of the Market Access Negative List (2020). The updated List eliminates the provision that no one shall engage in Internet financial information services without obtaining a license and adds the provision that non-public capital is prohibited from carrying out news and media-related businesses in violation of the law.
On March 1, the Ministry of Culture and Tourism released the Guidelines for the Enforcement of the Online Cultural Market (Draft for Comments) (the “Guidelines”). The Guidelines are the legal basis for the administrative departments of culture and tourism at all levels and the comprehensive law enforcement agencies of the cultural market (enforcement departments) to carry out law enforcement inspections on the online cultural market and handle cases in the online cultural market. The Guidelines set out detail requirements on law enforcement activities, such as network inspection, remote evidence collection, on-site evidence collection, electronic data management, in different chapters, respectively.
5. Regulation of Zhejiang Province on E-commerce came into force on March 1
On March 1, Regulation of Zhejiang Province on E-commerce (the “Regulation”) came into effect. According to the Regulation, e-commerce operators are not allow to use technical means such as big data analysis and algorithms to apply unreasonable differential treatment in transaction prices and other aspects to consumers under the same trading conditions.
Enforcement Developments
1. MIIT cancelled 49 enterprises’ value-added telecommunications business licenses
On March 14, the Ministry of Industry and Information Technology (MIIT) issued a notice, stating that the value-added telecommunication business licenses of 49 enterprises were cancelled in accordance with the law. The reasons for the cancellation include the failure to apply for renewal of telecommunication business licenses.
2. SAMR strengthens the enforcement actions against the false and illegal advertising
On March 11, the State Administration for Market Regulation (SAMR) published an article on its official website, claiming that it would continue to strengthen the enforcement actions against false and illegal advertisements that undermine the legitimate rights and interests of consumers, especially the elderly and teenagers.
Industry Developments
It was reported on March 20 that the General Office of the State Council issued the Opinions on Strengthening the Governance over Ethics in Science and Technology (the “Opinions”). The Opinions point out that ethical norms and standards for science and technology in key areas such as life sciences, medicine, and artificial intelligence will be developed, and an ethical review and regulatory system for science and technology will be established.
It was reported on March 21 that the Ministry of Transport and Ministry of Science and Technology jointly issued the Outline of the Medium- and Long-term Development of Science and Technology Innovation in Transportation (2021-2035) (the “Outline”). The Outline describe that China will promote the research and development of new energy automobiles and intelligent network-connected automobiles, and promote the research and application of road autonomous driving technology.
3. CAC issued the Seventh Group of Domestic Blockchain Information Service Recordation Numbers
On March 4, the CAC released the seventh group of a total of 265 domestic blockchain information service names and filing numbers. The filing requirements originate from the Provisions on the Administration of Blockchain Information Services (the “Provisions”). The Provisions require blockchain information service providers to indicate their filing numbers in a conspicuous position of their Internet websites and application platforms, among others, through which the services are externally provided. The filing is only a registration of the information related to the blockchain information services and does not constitute an endorsement of the service providers, products and services. No institution or individual shall use it for any commercial purpose.
4. Government work report: develop new business models such as cross-border e-commerce
On March 5, the Premier delivered a government work report at the meeting of the fifth session of the 13th National People’s Congress. The government work report indicates that China will promote the stable development of imports and exports and develop new business models such as cross-border e-commerce.
For further information, please contact:
James Gong, Partner, Bird & Bird
james.gong@twobirds.com
