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CHINA

Since July 2016, entry into force November 2016, last amended in November 2022

Pillar Cross-border data policies  |  Indicator Ban to transfer and local processing requirement
Interim Measures for the Administration of Online Taxi Booking Business Operations and Services (网络预约出租汽车经营服务管理暂行办法)
China instituted a licensing system for online taxi companies, which requires that personal information and business data should be stored and used in mainland China and must not be transferred outside of China (Art. 27 of the Interim Measures for the Administration of Online Taxi Booking Business Operations and Services). Such information should be retained for two years, except when otherwise required by other laws and regulations. The Measurement also states that taxi companies' servers should be set up in Mainland China, with a network security management system and technical measures for security protection in compliance with regulations (Art. 5.2).
Coverage Online taxi sector

CHINA

N/A

Pillar Public procurement of ICT goods and online services  |  Indicator Signatory of the WTO Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
China is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 2002.
Coverage Horizontal

CHINA

Since June 2018, last amended in 2024
Since 2000, last amended in 2015

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Maximum foreign equity share
Special Administrative Measures (Negative List) for Foreign Investment Access (外商投资准入特别管理措施(负面清单))

Classification Catalogue of Telecommunications Services (电信业务分类目录)
Section 12 of the "Special Administrative Measures (Negative List) for Foreign Investment Access" provides that the foreign shareholding ratio in value‑added telecommunications services, except for e‑commerce, domestic multi‑party communications, store‑and‑forward services, and call centres, must not exceed 50%. According to the "Classification Catalogue of Telecommunications Services", value‑added telecommunications services include Internet data centre services, content delivery network services, domestic Internet protocol virtual private network services, Internet access services, online data processing and transaction processing services, domestic multi‑party communication services, store‑and‑forward services, call centre services, information services, code and regulation conversion services, and Internet domain name resolution services.
In 2024, the Chinese government removed foreign shareholding restrictions on six categories of value‑added telecommunications services within designated pilot areas in Beijing, Shanghai, Hainan, and Shenzhen. This policy now permits foreign enterprises to operate independently in the following value‑added telecommunications service sectors within those pilot zones: Internet data centre services, content distribution network services, Internet service provision, online data processing and transaction processing services, information services including information publication and delivery (excluding Internet news, online publishing, online audio‑visual services, and Internet cultural operations), and information protection and processing services. Reports indicate that by February 2025, 13 foreign‑invested enterprises had been granted approval to participate in this scheme.
Coverage Value-added telecommunications services, including Internet data centre services and online data processing and transaction processing services

CHINA

Since December 2001, entry into force in January 2002, last amended in March 2022
Since 2000, last amended in 2015

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Maximum foreign equity share
Administrative Provisions on Foreign-funded Telecommunications Enterprises (外商投资电信企业管理规定)

Classification Catalogue of Telecommunications Services (电信业务分类目录)
Art. 6 of the "Administrative Provisions on Foreign‑funded Telecommunications Enterprises" stipulates that, unless otherwise prescribed by the State, the aggregate equity held by foreign investor(s) in a foreign‑funded telecommunications enterprise engaged in basic telecommunications services, excluding radio paging services, may not ultimately exceed 49%, and the "Classification Catalogue of Telecommunications Services" identifies all categories of basic telecommunications services that fall within the scope of this restriction.
Coverage Basic telecommunications services

CHINA

Since June 2018, last amended in 2024

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Maximum foreign equity share
Special Administrative Measures (Negative List) for Foreign Investment Access (外商投资准入特别管理措施(负面清单))
Section 13 of the "Special Administrative Measures (Negative List) for Foreign Investment Access" stipulates that foreign investment in Internet news and information services, Internet publishing services, Internet audio-visual programme services, and cyber culture operations, excluding music, is prohibited. The prohibition also extends to Internet public information services, except in relation to content that has been liberalised in accordance with China’s commitments under the World Trade Organization.
Coverage Internet news and information services, Internet publishing services, Internet audio-visual programme services, cyber culture operations, and Internet public information services

CHINA

Since June 2018, last amended in 2024

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Maximum foreign equity share
Special Administrative Measures (Negative List) for Foreign Investment Access (外商投资准入特别管理措施(负面清单))
Section 19 of the "Special Administrative Measures (Negative List) for Foreign Investment Access" provides that investment in the following areas shall be prohibited, namely aerial imaging and mapping, real 3D maps, electronic navigational charts, remote sensing geology, and the compilation of topographic maps.
Coverage Maps sector

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  |  Indicator 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 July 2015

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator 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 December 2001, entry into force in January 2002, last amended in April 2022
Since April 2001, last amended in October 2021

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Screening of investment and acquisitions
Administrative Provisions on Foreign-funded Telecommunications Enterprises (外商投资电信企业管理规定)

Rules for the Implementation of the Law of the People's Republic of China on Foreign-capital Enterprises (中华人民共和国外资企业法实施细则) (第3条))
According to Art. 11-13 of the Provisions on Administration of Foreign-Invested Telecommunications Enterprises, investors seeking to establish foreign-invested telecommunications enterprises—whether for basic telecommunications services or value-added services—must submit a project application report. This report should include the names and basic information of the joint venture parties, the total investment in the business, registered capital, each party's capital proportion, the type of business applied for, and the duration of the joint venture.
Additionally, under Art. 14 of the Provisions, the project proposal and feasibility study report must provide a business forecast, development plan, and an analysis of the return on investment. Furthermore, as stated in Art. 3 of the Implementing Rules of the Law of the People's Republic of China on Foreign Capital Enterprises, the establishment of foreign capital enterprises must contribute to the development of China's national economy and demonstrate the potential for significant economic benefits.
Coverage Telecommunication services and other foreign capital enterprises

CHINA

Since November 2016, entry into force in February 2017
Since December 2016, entry into force in December 2016

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Screening of investment and acquisitions
Regulations on the Approval and Filing of Corporate Investment Projects (企业投资项目核准和备案管理条例)

Catalogue of Investment Projects Subject to Government Confirmation (政府核准的投资项目目录)
Art. 3 of the "Regulations on the Approval and Filing of Corporate Investment Projects" provides that projects involving national security, the national distribution of major productive forces, the development of strategic resources, or major public interests are subject to an approval-based management regime. Under Art. 6, enterprises undertaking project approval procedures must submit a project application to the competent approving authority, and this application must include, among other elements, an assessment of the project’s economic and social impacts. Art. 9 requires the approving authority to examine whether the project endangers national security, including economic, social and ecological security, whether it complies with relevant development and construction plans, technical standards and industrial policies, whether it ensures the rational development and effective utilisation of resources, and whether it adversely affects major public interests. In connection with the foregoing approval requirements, Section IV of the "Catalogue of Investment Projects Subject to Government Confirmation" further provides that international telecommunications infrastructure projects require approval from the competent investment authority under the State Council, while domestic backbone transmission networks and other telecommunications infrastructure projects involving information security must be approved by the relevant sectoral regulatory authorities of the State Council.
Coverage International telecommunications infrastructure projects and domestic backbone transmission networks and other telecommunications infrastructure projects

CHINA

Since June 2021

Pillar Intellectual Property Rights (IPRs)  |  Indicator Practical or legal restrictions related to the application process for patents
Patent Law of the People's Republic of China (Amended in 2020) (中华人民共和国专利法 (2020年修订))
Art. 18 of the amended Chinese Patent Law establishes that non-resident foreigners or organisations without business establishments in China shall entrust the patent agency established by law to handle patent applications or other patent-related matters in China. Moreover, according to Art. 19, any entity or individual intending to file a patent application in a foreign country for an invention or utility model completed in China shall submit a request for confidential examination to the patent administration department under the State Council in advance. The patent administration department of the State Council shall handle international patent applications in accordance with the relevant international treaties to which the People's Republic of China is a party, this Law and the relevant provisions of the State Council.
Coverage Horizontal

CHINA

Reported in 2022, last reported in 2025

Pillar Intellectual Property Rights (IPRs)  |  Indicator Practical or legal restrictions related to the enforcement of patents
Reported obstacles to patent enforcement
It has been reported that the obstacles to patent enforcement include prolonged delays within the judicial system, a perceived reluctance of the courts to grant preliminary injunctions, burdensome invalidity proceedings, stringent evidentiary requirements, and uncertainty regarding whether a patentee's right to exclude encompasses manufacturing for export.
Coverage Horizontal

CHINA

Since June 2002, entry into force in January 2003, last amended in August 2014

Pillar Public procurement of ICT goods and online services  |  Indicator Exclusion from public procurement
Government Procurement Law of the People's Republic of China (中华人民共和国政府采购法)
Art. 10 of the Government Procurement Law stipulates that government procurement should prioritise domestic goods, construction works, and services, except where such items are unavailable within China or cannot be obtained there on reasonable commercial terms, where they are intended for use outside China, or where other laws or administrative regulations provide otherwise. It is reported that, under both its government procurement framework and its tendering and bidding regime, China continues to implement policies that favour products, services, and technologies produced or developed by Chinese‑owned and Chinese‑controlled enterprises, through both explicit and implicit requirements that impede fair competition by foreign firms. In practice, foreign companies frequently report that tender documentation requires “domestic brands” or “indigenous designs”, and, in the absence of clear and authoritative rules defining what constitutes a “domestic product”, procurement officials tend to adopt a cautious approach by preferentially sourcing from domestic Chinese enterprises.
Coverage Horizontal

CHINA

Since January 1994

Pillar Intellectual Property Rights (IPRs)  |  Indicator Participation in the Patent Cooperation Treaty (PCT)
Patent Cooperation Treaty (PCT)
China is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal

CHINA

Since July 2014

Pillar Public procurement of ICT goods and online services  |  Indicator 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

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