Call for Comments - Patent, Export Control, Data Security Law

China’s government has recently published a series of draft laws and regulations which could have a considerable impact on foreign businesses. In early July, it published six drafts for public consultation. Among them, the Second Amendment to the Patent Law, the Export Control Law, and the Data Security Law are the most important for companies operating in China.

The deadline for submitting comments is 16th August 2020. Submissions can be uploaded directly to the website of the National People’s Congress or submitted via the China-Britain Business Council.

We will, in cooperation with the Department for International Trade and other UK trade organisations, submit a consolidated and anonymised comment on behalf of our members.

Please note that the English translations of the drafts provided below are unofficial and for your convenience only.

Amendment to the Patent Law

The second draft of the Amendment to the Patent Law (Chinese* / English*). The draft includes 29 revisions with the most important concerning patents of pharmaceutical products. Thus, the revised law would include a framework for early resolution of disputes regarding follow-up pharmaceutical products. It also allows for patent term adjustments ("PTAs") and patent term restoration ("PTRs").

Other changes include a stricter control of abuse by monopolies as well as the better protection of patents based on information published in an emergency situation (e.g. vaccine research during a pandemic) .

*Chinese version:

https://cbbc.us3.list-manage.com/track/click?u=c9d02ed07b9b9b82fd48c9a61&id=2c8c1817a9&e=a7d9eb3193

*English version:

https://cbbc.us3.list-manage.com/track/click?u=c9d02ed07b9b9b82fd48c9a61&id=6f87d4f91b&e=a7d9eb3193

Export Control Law

China’s first Export Control Law (Chinese* / English*) reflects the increasing technological prowess of China’s own domestic manufacturers and the Chinese government’s intention to safeguard these technologies vis-à-vis foreign competitors. It is also aimed at aligning Chinese regulations with the export control of the Nuclear Supplier Regime ("NSR"), which China joined in 2004.

Apart from banning the export of dual use items, military equipment, and nuclear material, it allows the Chinese government to restrict exports based on technological and industrial competitiveness, international market supply, and technological progress.  

Furthermore, it creates a legal basis for the Chinese government to blacklist individuals and organisations, raising the risk for further trade sanctions in an already tense global environment.

*Chinese version:

https://npcobserver.files.wordpress.com/2020/07/export-control-law-2nd-draft.pdf

*English version:

https://www.cov.com/-/media/files/corporate/publications/file_repository/prc_export_control_law_comparison_dec_2019_to_jun_2020_ch_en.pdf

Data Security Law

Data and privacy protection has become a major issue in global trade and the impact of local data rules on international business has only increased in importance. Following the sweeping 2017 Cybersecurity Law, China has issued a series of data rules, including for e-commerce and personal data protection.

The new Data Protection Law (Chinese* / English*) intends to tie together these regulations in a unified legal framework. But the new law would also go beyond existing statutes. For example, Article 2 of the proposed law extends Chinese jurisdiction to entities outside China, if their actions are considered a violation of Chinese domestic data regulations.

The law would also allow provincial governments and sectorial regulators to define their own data protection standards which might allow for a more nuanced approach in certain sectors, such as research and life sciences, where data exchange is crucial for global cooperation.

*Chinese version:

https://npcobserver.files.wordpress.com/2020/07/data-security-law-draft.pdf

*English version:

https://www.newamerica.org/cybersecurity-initiative/digichina/blog/translation-chinas-data-security-law-draft/

How to submit comments 

If you would like us to submit comments and suggestions regarding any or all of the above mentioned drafts, please use our CBBC comment template* and send it to [e-mail] or [e-mail]. Please put the title to the name of the regulation(s) on which you wish to comment in the subject box.
 
Comments can be submitted in both English and Chinese. However, please be aware that the final submission to Chinese authorities will be in Chinese only and that we will translate English-only submissions internally.

*CBBC comment template:

https://cbbc.us3.list-manage.com/track/click?u=c9d02ed07b9b9b82fd48c9a61&id=f21e480af1&e=a7d9eb3193

UK Business Dialogue with the Shanghai Government 

In addition to our advocacy work with the Chinese government, we are also offering members the opportunity to engage directly with Chinese officials at the central and local level. 

If you are a Shanghai-based UK company, join our UK Business Dialogue with the Shanghai Municipal Government. For more information, please contact MA Weifeng ([e-mail]).

For more information, please contact:

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The China-Britain Business Council ("CBBC") is the UK’s national business network promoting trade and investment with China. Since 1954 we have acted as the independent voice of business, located at the heart of the action, engaging across both countries in every sector and region. We support our members and partners by delivering the advice, analysis and access which they need in order to seize the China opportunity. Our diverse membership includes leading UK companies and universities, many of the UK’s most dynamic SMEs, and an ever increasing number of Chinese companies exporting to and investing in the UK.

英中贸易协会（“CBBC”）是英国促进对华贸易和投资的国家级商业贸易网络。自1954年以来，我们一直作为独立的商业声音，处在行动的核心位置参与两国在每个行业和地区的合作。为了协助我们的会员与合作伙伴更好地抓住中国的商业机遇，英中贸易协会不遗余力地为其提供所需的商业建议、解析与渠道。我们的会员包括众多英国领先的公司与知名大学、英国最具活力的中小企业，以及越来越多向英国出口和在英国投资的中国企业等。