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CHINA

Since December 2020, entry into force in January 2021
Since April 2015
Since March 2011

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Screening of investment and acquisitions
Measures on National Security Review of Foreign Investment (外商投资安全审查办法)

Measures for the National Security Review of Foreign Investment Pilot Free Trade Zones from the State Council General Office (国务院办公厅关于印发自由贸易试验区外商投资国家安全审查试行办法)

Circular of the General Office of the State Council on the Establishment of Security Review System Regarding Merger and Acquisition of Domestic Enterprises by Foreign Investors (国务院办公厅关于建立外国投资者并购境内企业安全审查制度的通知)
China’s national security review regime is primarily governed by the Measures on National Security Review of Foreign Investment (NSR Measures), issued on 19 December 2020 by the National Development and Reform Commission (NDRC) and MOFCOM. The NSR Measures build on earlier regulations, including the Circular of the General Office of the State Council on the Establishment of Security Review System Regarding Merger and Acquisition of Domestic Enterprises by Foreign Investors (2011 Circular) and the Measures for the National Security Review of Foreign Investment Pilot Free Trade Zones from the State Council General Office (Free Trade Zone Circular), which technically remain effective but have been rarely applied in practice.
The NSR Measures outline detailed rules for the national security review framework, managed by a Working Mechanism led by the NDRC and MOFCOM. The process consists of two stages: a General Review to assess whether a transaction requires further scrutiny, and a Special Review for a more in-depth assessment if potential national security risks are identified. According to Art. 4 of the Measures, the regime applies to foreign investments that: (i) involve control over enterprises in key sectors, such as critical infrastructure, technology, energy, and information services; or (ii) impact national security through equity acquisitions, asset purchases, or greenfield investments.
Furthermore, "control" is defined broadly, encompassing scenarios where foreign investors hold more than 50% equity, exert significant influence over operations or decision-making, or control key aspects of the business. It is reported that the NSR regime introduces clearer procedures compared to previous rules, it remains opaque regarding timelines, procedural details, and decision outcomes.
Coverage Sectors related to key industries or national economic security

CHINA

Since April 2011, extended in April 2017 and 2022, until April 2027

Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods  |  Sub-pillar Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In April 2011, the Ministry of Commerce of the People's Republic of China announced anti-dumping duties on non-displacement single-mode optical fibres (used, for example, for long-distance telephony and multichannel television broadcasting systems) (HS code: 9001.1000) imported from the EU and the U.S. This measure was reviewed and extended in April 2017 and, subsequently in April 2022. The duty rate on imports originating from the European Union ranges from 12.9% to 29.1%, depending on the company. The duty rate on imports originating from the United States ranges from 33.3% to 78.2%, depending on the company.
Coverage Product: Dispersion unshifted single-mode optical fibres (HS 9001.1000)

Countries: European Union, United States

CHINA

Since July 2015

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Screening of investment and acquisitions
National Security Law of the People's Republic of China (中华人民国国家安全法)
According to Art. 59 of the National Security Law of the People's Republic of China, the State shall establish comprehensive systems and mechanisms for national security review and oversight. These systems shall encompass the review of foreign commercial investments, special items and technologies, internet information technology products and services, projects related to national security, and other significant activities or matters that impact or could impact national security. Art. 60 provides that central state organs shall conduct national security reviews, issue opinions, and supervise enforcement in accordance with legal and administrative regulations. Moreover, Art. 61 mandates that provinces, autonomous regions, and directly governed municipalities shall be responsible for national security review and regulation within their administrative regions, ensuring compliance with the law.
Coverage Horizontal

CHINA

Since January 2003, last amended in January 2014

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Exclusion from public procurement
Government Procurement Law of the People's Republic of China (Order of the President No. 68) (中华人民共和国政府采购法 (主席令第68号))
Art. 10 of the Government Procurement Law states that procuring entities must procure domestic goods, construction, and other services, except in one of the following situations: (i) where the goods, construction, or other services needed are not available within the territory of China or cannot be acquired on reasonable commercial terms, even if they are available in China; (ii) where the items to be procured are for use abroad; and (iii) where otherwise provided for by other laws and administrative regulations.
Moreover, the Chinese public procurement regulations actively promote a Buy Chinese policy. In principle, only Chinese companies are allowed to bid in public tenders, with foreign companies permitted only under exceptions. Government agencies and related entities are required to purchase equipment and technology from Chinese state-owned or privately-owned manufacturing companies. It is reported that public tenders often lack sufficient publicity. Furthermore, central and local entities tend to implement these provisions very broadly, exceeding the discriminations imposed by the law.
Coverage Horizontal

CHINA

Since July 2014

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Exclusion from public procurement
Report by the National Development and Reform Commission of China and the Ministry of Finance
A report by the National Development and Reform Commission of China and the Ministry of Finance bans the purchase of certain foreign IT products for selected government procurement lists. For example, one government procurement list banned ten Apple Inc. products, including the iPad, iPad Mini, MacBook Air and MacBook Pro.
A separate procurement list includes some Apple computers that departments can continue to buy on a smaller scale, i.e. purchases totalling less than 1.2 million yuan (USD 195,000). Products from Dell Inc., Hewlett-Packard Co. and Chinese maker Lenovo Group Ltd. were included on both lists. This ban applies to all central Communist Party departments, government ministries and local governments.
Coverage Apple Inc. products including the iPad, iPad Mini, MacBook Air and MacBook Pro as well as some Apple computers

CHINA

Since June 2014

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Exclusion from public procurement
Result of the public tender for central government procurement of electronic information products of 2014 (Vol. 21, GC-HJ140283) (2014年中央政府采购电子信息产品公开招标结果 (Vol. 21, GC-HJ140283))
In June 2014, the Centre of Public Procurement of the Central Government issued the result of the public tender for central government procurement of electronic information products of 2014 (Vol. 21, GC-HJ140283). Under the "Antivirus Software" category, all foreign security providers such as Kaspersky and Symantec were excluded from the list. Only five Chinese providers, i.e. 360, Jiangmin, Rising, Kingsoft, and KILL, are listed for national security consideration.
Coverage Foreign security providers of antivirus software

CHINA

Since June 2007
Since December 2019
Since December 2019
Since December 2019

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Surrender of patents, source code or trade secrets to win public tenders/Restrictions on technology standards for public tenders
Administrative Measures for the Multi-level Protection of Information Security

Information Security Technology - Baseline for Cybersecurity Classification Protection (GB/T 22239-2019)

Information Security Technology - Technical Requirements of Security Design for Cybersecurity Classification Protection (GB/T 25070-2019)

Information Security Technology - Evaluation Requirements for Cybersecurity Classification Protection (GB/T 28448-2019).
The Administrative Measures for the Multi-level Protection of Information Security (MLPS) require all IT systems in China to be classified into different levels of security, from one to five (with the most sensitive systems designated as level 5). In 2019, the MLPS 2.0 (composed by GB/T 22239-2019, GB/T 25070-2019, and GB/T 28448-2019) has expanded the definition of 'information systems' to broader systems, including network infrastructure, cloud computing systems, mobile application platforms, connected devices and industrial control systems.
The MLPS 2.0 requires networks of level 3 and above to adopt network products and services appropriate to their security protection levels. Companies classified as level 2 and above require the procurement and use of encryption products and services to be preapproved by the Chinese government. Under the MLPS 2.0, companies must self-assess their security management and compliance, and such assessment results must be evaluated and endorsed by the MLPS regulatory body.
The MLPS 2.0 requires companies in China to set up their cloud infrastructure, including servers, virtualised networks, software, and information systems. Such cloud infrastructures are subject to testing and evaluation by the Chinese government. Overseas operation and maintenance of Chinese cloud computing platforms must also follow Chinese laws and regulations. The national standards also state that customers' data and users' personal information processed by cloud service providers should be stored inside China, which is an additional requirement. It is currently uncertain how these national standards would be enforced, and there have not yet been reports of enforcement.
Coverage Information Systems including network infrastructure, cloud computing systems, mobile application platforms, connected devices and industrial control systems
Sources

CHINA

Since July 1999

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Surrender of patents, source code or trade secrets to win public tenders/Restrictions on technology standards for public tenders
OSCCA Regulation on Commercial Encryption OSCCA (商用密码管理条例)
Imported and exported encryption products must be certified by the Office of State Commercial Cryptography Administration (OSCCA). The use of encryption products without OSCCA certification is prohibited, regardless of the public, commercial or individual nature of use. However, it is reported that, in practice, only Chinese or Chinese-owned companies are eligible for OSCCA certification to sell, produce and carry out R&D for encryption technology in China, as well as to gain product licensing. Foreign or foreign-owned companies, even if based in China, are excluded. In practice, this means that using foreign encryption products in public procurement is effectively prohibited in China. International firms are therefore excluded from government contracts for ‘information security products’ such as smart cards, firewalls and secure databases.
Coverage Encryption products and encryption software
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ITA: [{"meta_value":"0.00"}]

CHINA

ITA signatory? I II

Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods  |  Sub-pillar Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
0.95%
Coverage rate of zero-tariffs on ICT goods (%)
52.56%
Coverage: Digital goods

EL SALVADOR

Since May 2006, last amended in March 2019

Pillar Online sales and transactions  |  Sub-pillar Framework for consumer protection applicable to online commerce
Consumer Protection Law, Decree No. 776 (Ley de Protección al Consumidor, Decreto No. 776)
Decree No. 776 on Consumer Protection Law provides a comprehensive framework for consumer protection that also applies to online transactions. Art. 4 of the Consumer Protection Law provides a taxative list detailing the basic rights of the subjects benefited by the law. In addition, Arts. 21-A and 21-B refer to the obligations of suppliers in e-commerce.
Coverage Horizontal

EL SALVADOR

N/A

Pillar Online sales and transactions  |  Sub-pillar Ratification of the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts
Lack of signature of the UN Convention on the Use of Electronic Communications in International Contracts
El Salvador has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal

EL SALVADOR

Since February 2021

Pillar Online sales and transactions  |  Sub-pillar Adoption of United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce
UNCITRAL Model Law on Electronic Commerce
El Salvador has adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal

EL SALVADOR

N/A

Pillar Online sales and transactions  |  Sub-pillar Adoption of United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
El Salvador has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal

EL SALVADOR

N/A

Pillar Intermediary liability  |  Sub-pillar Safe harbour for intermediaries for any activity other than copyright infringement
Lack of intermediary liability framework in place beyond copyright infringements
A basic legal framework on intermediary liability beyond copyright infringement is absent in El Salvador's law and jurisprudence.
Coverage Internet intermediaries

EL SALVADOR

Reported in 2021

Pillar Intermediary liability  |  Sub-pillar User identity requirement
Mandatory SIM card registration
It is reported that El Salvador imposes an identity requirement for SIM registration. Anyone wanting to purchase a SIM card has to provide their national ID card or a passport in case of foreigners to activate a new prepaid SIM card.
Coverage Telecommunications sector

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