Legal News and Articles
China extends visa-free policy for 38 countries
To further facilitate cross-border travel and China's high-quality development and high-standard opening up, China has decided to extend the unilateral visa-free policy to more countries, which involves visa-free treatment to travelers holding ordinary passport from thirty-eight countries, namely, France, Germany, Italy, Netherlands, Spain, Malaysia, Switzerland, Ireland, Hungary, Austria, Belgium, Luxembourg, New Zealand, Australia, Poland, Portugal, Greece, Cyprus, Slovenia, Slovakia, Norway, Finland, Denmark, Iceland, Andorra, Monaco, Liechtenstein, Republic of Korea, Bulgaria, Romania, Croatia, Montenegro, North Macedonia, Malta, Estonia, Latvia, Japan and Negara Brunei Darussalam.
From November 30, 2024 to December 31, 2025 , ordinary passport holders from above 38 countries can be exempted from Visa to enter China and stay for no more than 30 days for business, tourism, family visit , exchange visit and transit purposes. Those who do not meet the purposes of visit and time limit for visa free policy are still required to apply for Visas to China.
Besides extending unilateral visa-free policy to more countries, exchange visit purpose will be included in visa-free category and the visa-free stay time will be pronged to 30 days comparing with the previous policy.
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Implementation of Export Control Regulations
China has tightened its grip on the export of sensitive goods and technologies by implementing a new set of regulations for dual-use items—products with both civilian and military applications. Effective December 1, 2024, these regulations mandate that companies exporting such items, including semiconductor equipment and specialized industrial technologies, secure prior approval from Chinese authorities.
The newly introduced export control measures reflect China’s determination to safeguard its national security and technological assets in the face of increasing global competition. By requiring exporters to obtain prior clearance, the regulations aim to prevent the misuse of dual-use technologies that could potentially threaten China’s security or strategic interests.
This policy not only places stringent requirements on domestic firms but also impacts foreign companies operating in China, especially those dealing in advanced technologies. Exporters must now navigate a more complex compliance landscape to ensure that their products align with the government’s regulations. The move comes as part of a broader trend of global powers asserting greater control over sensitive technologies amid rising geopolitical tensions.
Industry experts believe that the new regulations could have far-reaching implications for the global semiconductor supply chain and other high-tech industries. While the policy enhances China’s ability to control strategic exports, it also underscores the country’s heightened focus on technological self-reliance and security.
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CAC released the Draft Measures for Personal Information Protection Certification for Cross-Border Data Transfers
On January 3, 2025, the Cyberspace Administration of China (CAC) released the Draft Measures for Personal Information Protection Certification for Cross-Border Data Transfers (the "Draft Measures") for public comment. These measures aim to provide further clarification regarding the certification process for transferring personal information (PI) abroad in compliance with China’s Personal Information Protection Law (PIPL). The Draft Measures complement existing regulations, such as the Implementation Rules for Personal Information Protection Certification and the Cybersecurity Standards Practice Guidelines.
According to Article 4 of the Draft Measures, a data processor can opt for certification to transfer PI overseas if:
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The processor is not classified as a Critical Information Infrastructure Operator (CIIO);
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The data being transferred does not involve important data;
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Since January 1 of the current year, the cumulative volume of PI transferred overseas:
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Exceeds 100,000 individuals but is less than 1 million (excluding sensitive PI); or
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Involves less than 10,000 individuals of sensitive PI.
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A key addition to the Draft Measures is the inclusion of foreign personal information processors as eligible entities for certification under Article 3(2) of PIPL. This means foreign entities collecting PI directly from individuals in China can apply for certification, either through an authorized designated representative or by establishing a specialized entity in China.
As per Article 7, CAC will develop standards, technical rules, and assessment procedures for PI protection certification in coordination with relevant authorities. The currently recognized standards include:
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Information Security Technology—Personal Information Security Specification (GB/T 35273-2020)
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Cybersecurity Standards Practice Guidelines – Security Certification Specifications for Cross-Border Processing of Personal Information V2.0 (TC260-PG-20222A)
The certification assessment criteria outlined in Article 10 are divided into three categories:
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Compliance of Cross-Border PI Transfers: Ensuring that the transfer of PI aligns with applicable laws and regulations.
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PI Protection Level of Overseas Processors and Recipients: Evaluating the data protection capabilities of overseas entities and the cybersecurity environment in their respective regions.
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Legally Binding Agreements and Organizational Safeguards: Reviewing the legal agreements between data processors and overseas recipients, as well as the organizational and technical safeguards in place to protect PI.
Under Article 8, professional certification bodies must register with CAC to conduct PI protection certification. Currently, the China Cybersecurity Review, Certification, and Market Regulation Big Data Center (CCRC) is the only officially recognized certification body. However, more certification bodies may emerge as the regulatory framework develops.
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The new Company Law Introduces Significant Changes
On July 1, 2024, the new Chinese Company Law came into effect; one of the most significant changes introduced by the reform concerns the terms for the payment of capital of limited liability companies (the most widespread type of company in China). The new law, in fact, introduces the obligation for shareholders to pay the entire subscribed capital within five years of the incorporation of the company (in the previous law, the payment terms of the share capital were left to the free determination of the shareholders who indicated them in the company's bylaws).
The reform also introduces the possibility that, when a company is insolvent and the share capital has not been fully paid, creditors can request the shareholders to pay the capital with an earlier timing than initially established in the bylaws. The new law also provides that if a shareholder fails to pay the subscribed capital within the deadline and for the amount set out in the bylaws, in addition to the liability of the defaulting shareholder towards the company for any damages caused by this default, the other shareholders also become liable for the portion of capital not paid by the defaulting shareholder. Therefore, an unsatisfied creditor may request payment not only from the shareholder who has not paid his share of the share capital, but also from the other shareholders (obviously within the limits of the amount not paid by the defaulting shareholder).
It is also important to underline that this reform strengthens the powers of minority shareholders in various respects; in particular, their right to obtain information on the company's management, to call extraordinary meetings and to appoint accounting firms or law firms to obtain the main corporate documents such as the minutes of the meetings and of the Board of Directors and the company's accounting documents is guaranteed.
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Foreigner's Work Permits and the Social Security Cards have been integrated
As of December 1, China has integrated the Foreigner's Work Permits with the Social Security Cards, streamlining processes for foreign nationals working and living in the country. This integration includes embedding the information from each Foreigner's Work Permit into the corresponding Social Security Card, available in both physical and electronic versions. This reform is designed to enhance convenience and accessibility for foreign workers in China.
The process for obtaining, extending, changing, and canceling work permits is now fully digitized. Applications can be completed online via the Service System for Foreigners Working in China (外国人来华工作管理服务系统). Foreign nationals no longer need to acquire physical work permits upon entering China. Existing physical work permits will remain valid under the "No Change, No Replacement" policy unless an extension or modification is required. At that point, the new integrated standard will apply.
Foreign nationals possessing the Notification of Work Permit for Foreigners can directly apply for a Z visa, allowing them to work in China. Upon arriving in China, foreign nationals can download the "Electronic Social Security Card" (电子社保卡) app to their smartphones. By registering with personal information such as their name, work permit number, or social security number, and completing identity verification, they can access an electronic Social Security Card containing their work permit details. This electronic card provides standard services tailored to the needs of foreign nationals.
To apply for a residence permit, foreign nationals must present either the Notification Letter of Foreigner's Work Permit or the electronic Social Security Card. Public security authorities can verify work permit information directly through the system or by scanning the QR code on the electronic card. This streamlined process eliminates the need for additional documentation. Foreign nationals or their employers can use the Notification Letter of Foreigner's Work Permit or the electronic Social Security Card to register for social insurance. This can be done via the online social security portal or at physical social security offices. Verification of work permit information is conducted through the Foreigners' Work Management System. Once approved, foreign nationals will receive a social security number and a physical Social Security Card.
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A reform gradually raises the statutory retirement age in China
In September 2024, China's National People's Congress approved a significant reform to gradually raise the statutory retirement age, addressing challenges posed by an aging population and a shrinking workforce.
Current Retirement Ages:
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Men: 60 years
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Women in white-collar jobs: 55 years
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Women in blue-collar jobs: 50 years
Planned Changes Effective January 1, 2025:
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Men: Retirement age will increase incrementally from 60 to 63 years.
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Women in white-collar jobs: Retirement age will rise from 55 to 58 years.
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Women in blue-collar jobs: Retirement age will be raised from 50 to 55 years.
These adjustments will be implemented gradually over a 15-year period, with the retirement age increasing by several months each year. Furthermore, the required years of contributions for pension eligibility will increase from 15 to 20 years by 2030.
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