Other BriefingsChina’s 2025 Legislative Agenda: Key Laws and Regulations for Foreign Companies to Watch
On May 14, 2025, China’s State Council released its 2025 legislative work plan (hereinafter the “legislative agenda”), outlining key priorities for the year, including the introduction of new laws and regulations, as well as revisions to existing legislation.
The agenda identifies 16 pieces of legislation – both new and amended – that will be submitted to the Standing Committee of the National People’s Congress (NPC) for review and approval. An additional 30 laws and amendments are slated for drafting. The plan also outlines a broader pipeline of legislative initiatives currently in the preparatory phase, including future revisions and upcoming submittals to the NPC Standing Committee.
The legislative agenda includes a range of new and amended laws and regulations that could significantly impact foreign businesses operating in or engaging with China. However, many of these pieces of legislation are still in the early drafting stages, and therefore will likely not come into force for another few years.
This article examines the upcoming legislative developments most relevant to foreign companies, highlighting key laws and regulations to monitor as China’s legal landscape continues to evolve.
2025 legislative agenda
The agenda includes 16 laws and regulations, both newly drafted and amended, to be submitted to the Standing Committee of the National People’s Congress (NPS) for deliberation, and a further 30 that are to be drafted or amended. The agenda also states the different departments and government bodies responsible for the work.
The new pieces of legislation that are to be submitted for review include:
- Draft National Development Planning Law (new)
- Draft amendment to the Foreign Trade Law
- Draft Medical Insurance Law (new)
- Draft amendment to the Food Safety Law
- Draft amendment to the Banking Supervision and Administration Law
- Draft amendment to the Bidding Law
- Draft amendment to the Trademark Law
- Draft Financial Law (new)
After being submitted to the NPC Standing Committee, the legislation will be deliberated and a draft version published for public comment, before undergoing further readings. Only after multiple rounds of review by the NPC Standing Committee will they be passed into law and implemented. For this reason, many of these pieces of legislation may not come into effect this year.
Meanwhile, the laws and regulations that will be drafted or amended include:
- Regulations on the implementation of the Anti-Foreign Sanctions Law (new)
- Regulations of the State Council on the handling of foreign-related intellectual property disputes (new)
- Amendment to the Measures for the Implementation of the Drug Administration Law
- Regulations on government data sharing (new)
- Regulations on commercial mediation (new)
- Provisions on the submission of tax-related information by internet platform enterprises (new)
- Regulations on the administration of clinical research and clinical transformation application of new biomedical technologies (new)
- Amendment to the Regulations on Supervision and Administration of Securities Companies
- Amendment to the Regulations on the Implementation of the Drug Administration Law
The agenda also lists a number of laws and regulations that are being prepared to be submitted to the NPC Standing Committee, including the draft Telecommunications Law, draft Consumption Tax Law, a draft amendment to the Law on the Administration of Tax Collection, a draft amendment to the Exit and Entry Administration Law, and a draft amendment to the Customs Law.
Legislative changes with potential impact on foreign companies
Key areas of reform include updates to the legal framework governing foreign trade, customs procedures, outbound investment, and international commercial dispute resolution.
Key among them is a draft revision of the Foreign Trade Law that will be submitted to the NPC Standing Committee for deliberation, while new provisions of the Anti-Foreign Sanctions Law will be formulated. New provisions of the State Council for the handling of foreign-related intellectual property disputes, the Commercial Mediation Regulations, will also be formulated, while the relevant departments are preparing to submit draft revisions to the Exit and Entry Administration Law and the Customs Law to the NPC Standing Committee.
Other legislative changes that may affect foreign companies include planned revisions to the Regulations on the Administration of Technology Import and Export, the Regulations on the Administration of Foreign Labor Cooperation, and the Regulations on International Shipping. Meanwhile, foreign businesses may also be affected by enhanced oversight of sectors such as telecommunications, finance, and taxation. Draft regulations for the implementation of the Value-Added Tax Law, the planned drafting of the new Telecommunications Law, and changes to financial regulation – including updates to laws on the People’s Bank of China, commercial banks, and securities companies – reflect a push for stricter compliance, more transparent regulatory frameworks, and tighter control over capital flows.
The agenda also includes proposed updates to trademark and copyright law, and new regulations targeting cross-border IP disputes. Finally, stricter standards around data governance and cybersecurity, such as regulations on government data sharing and cybersecurity classification, could raise compliance costs and regulatory scrutiny for multinational companies, especially those handling sensitive data.
Amendments to the Foreign Trade Law
China’s Ministry of Commerce (MOFCOM) began procedures to amend the Foreign Trade Law in 2020, and a draft version of the amendments to the Foreign Trade Law was released for public comment in September 2024.
This is the first major revision since 2004, when the law was updated to align with China’s WTO accession commitments.
The current round of amendments is being introduced against the backdrop of rising global trade tensions, particularly with the US, and growing protectionist measures in key export markets. According to an official explainer released by MOFCOM, the new amendment is necessary “to provide stronger legal safeguards for advancing foreign trade and safeguarding national sovereignty, security, and development interests.”
The draft amendment introduces key reforms to deepen institutional opening-up and align with international trade rules. Specific changes include provisions to clarify operators’ compliance duties and establish a trade policy compliance mechanism to improve the business environment.
A major change is the formal adoption of a negative list for cross-border services trade, which will provide foreign businesses with much-needed clarity on which sectors are open to cross-border participation and under what conditions. Such lists already exist. In March 2024, MOFCOM released the first negative lists for cross-border services trade – one national and one for free trade zones – which specify the services that are restricted to overseas providers. By clearly identifying only the prohibited sectors, these lists effectively liberalize all other service areas and help prevent arbitrary local restrictions. The addition of this mechanism to the draft amendment formalizes the approach, reinforcing regulatory consistency and transparency.
An important change in the draft is a tweak to the wording regarding the conditions under which the Chinese government can prohibit or restrict the trade in certain goods or technologies. The amendment expands the wording to include “other necessary measures”. While it does not specify what these measures could be, previous actions taken suggest they could include export controls, probes into foreign companies, and sanctions on foreign companies and individuals.
Why it matters
China’s position in the world has changed drastically since the last time the law was amended in 2004, growing from a small but emerging player to the world’s single largest trading company. At the same time, the global trade environment has become more complex, with countries such as the US seeking to realign its trade ties with China.
The amendments to the Foreign Trade Law will seek to update the legislation to better reflect current trading conditions. This will involve both further trade liberalization on the one hand, offering more opportunities for foreign companies and investors, while also bolstering China’s ability to protect its economy against external shocks. Foreign companies should closely monitor how the law is amended and implemented in practice, looking out for both new opportunities and assessing how it may increase compliance burdens and risks.
Amendments to the Customs Law
The proposed amendments to the Customs Law, released for public comment in November 2023 and now scheduled for submission to the NPC Standing Committee for deliberation, introduce key changes that will directly impact foreign companies engaged in trade with China.
The revisions aim to strengthen customs supervision and enforcement by clarifying the legal responsibilities of importers and exporters, including stricter penalties for violations. The amendments also seek to improve customs clearance efficiency by promoting the use of advanced technologies and data-sharing platforms, which are expected to expedite inspection and release processes.
Additionally, the law enhances risk management and anti-smuggling measures, providing customs authorities with broader powers to monitor and investigate suspicious activities.
Why it matters
Foreign businesses should note the emphasis on greater transparency and stricter compliance requirements, which will require them to ensure accurate documentation and adherence to customs regulations to avoid delays or penalties. Overall, the updated law aims to balance facilitation of trade with stronger regulatory control, signaling a more structured environment for international trade operations.
Financial Law
The formulation of the Financial Law was first mentioned in a resolution adopted during the third plenary session of the 20th Central Committee of the Communist Party of China in July 2024. While there is still little information on the law, the resolution suggests the law will seek to standardize and consolidate China’s current financial regulations. Notably, it called for deepening reform of China’s financial system, including improving the financial regulatory system “to ensure that all financial activities are placed under regulation in accordance with the law”. It also emphasized the need to “strengthen regulatory responsibility and accountability systems, and improve regulatory coordination between the central and local levels”, as well as unifying “the rules and systems for registration, custody, settlement, and liquidation for the financial market, establish binding constraints for defusing risks at an early stage, and build a robust system to effectively fend off and control systemic risks and ensure financial stability”.
According to Chinese media reports, the first review of the Financial Law is scheduled for this year.
Why it matters
With few details released, it is unclear how the Financial Law could affect foreign companies. Stricter regulatory oversight could raise compliance burdens for companies, but a more predictable and standardized regulatory environment could improve the quality of the industry as a whole and enhance investor confidence over the long term.
National Development Planning Law
The draft National Development Planning Law, released in April 2025 for public comment, represents a major step toward institutionalizing China’s strategic planning framework. It aims to formalize longstanding practices by codifying the process through which the CPC Central Committee proposes national development strategies, the State Council drafts the plan, and the NPC reviews and approves it.
The draft law directly reflects priorities set out in the resolution of the Third Plenary Session of the 20th CPC Central Committee, which emphasized “improving the national strategic planning system and strengthening policy coordination mechanisms”. It underscores the need to better align major national strategies and enhance the macro-guiding role of development plans.
In addition, the draft introduces measures to ensure effective implementation, including mechanisms for dynamic monitoring, evaluation, and inter-agency coordination. It mandates that national plans be supported by corresponding implementation strategies and emphasizes policy alignment across fiscal, monetary, industrial, and employment domains. These provisions mirror the Third Plenum’s calls for tighter integration between macroeconomic policy tools and strategic objectives.
Why it matters
While the draft may not have a direct impact on foreign companies, it will serve as a critical indicator of China’s policy direction. The enhanced coordination it promotes could accelerate the development of strategic and emerging industries, such as advanced manufacturing, digital infrastructure, green technologies, and biomedicine. Foreign investors and businesses should monitor these developments closely, as the national planning framework will increasingly shape policy implementation, resource allocation, and regulatory focus, offering early signals of potential market opportunities or shifts in the business environment.
Amendments to tax legislation
The legislative agenda mentions several upcoming changes to China’s tax regime, including the planned submission of a draft Consumption Tax Law and draft amendment to the Law on the Administration of Tax Collection to the NPC Standing Committee, as well as the formulation of a new implementation regulation of the Value-Added Tax Law.
The planned Consumption Tax Law, which was released in draft form in December 2019, intends to elevate the current consumption tax regime – governed by temporary regulations for over 26 years – into formal law. The new law, which will replace the Interim Regulations on Consumption Tax, largely retains the existing structure of the consumption tax system to ensure stability but incorporates past reforms and policy updates. It also introduces important new provisions, including clear authorization for the State Council to adjust tax rates and carry out reform pilots, subject to record-filing with the NPC Standing Committee.
As of writing, no information has been released regarding the proposed implementation regulations for the Value-Added Tax Law. As the law is relatively new, being promulgated in December 2024, these regulations are likely to provide critical guidance on how the law will be applied in practice, helping businesses and individuals prepare for its full implementation in 2026. Attention will increasingly turn to the detailed provisions of the legislation and their implications for taxpayers. Policymakers and tax authorities are expected to focus on ensuring a smooth transition to the new legal framework while maintaining the stability of tax policies and compliance processes.
Finally, the draft version of the amendment to the Law on the Administration of Tax Collection was released in March 2025. Among the key proposed amendments, the draft amendment introduces taxpayer identification numbers and simplifies tax registration by linking it with business registration. Electronic invoices and data gain full legal validity, and e-commerce platforms must report tax-related information.
The draft amendment also bans government-imposed tax revenue targets, regulates big data use for tax risk analysis, and expands transfer pricing and anti-avoidance rules. Other proposed amendments that will improve the tax collection environment include:
- Requiring for tax authorities to actively use IT to provide taxpayers with convenient tax handling methods.
- Optimizing tax registration procedures by ensuring that taxpayers are not required to apply for tax registration separately after completing establishment registration and requiring the registration authority to inform taxpayers of their tax declaration obligations.
- Improving tax inspection measures and clarifying which taxpayer information and materials tax authorities can access.
Why it matters
Many of the proposed changes to China’s tax regime aim to standardize and modernize the tax system and tax collection process. This will help improve consistency and ease of handling tax procedures for companies and individuals. At the same time, the changes seek to ensure more rigorous enforcement and provide better tools to tackle tax avoidance, which will increase the compliance burden on businesses and may lead to stricter scrutiny of corporate tax practices.
Navigating China’s evolving regulatory landscape
Foreign companies operating in or engaging with China should pay close attention to the legislative developments outlined in the 2025 legislative agenda, as these changes will shape the regulatory environment in the coming years. Key areas to monitor include amendments to the Foreign Trade Law and Customs Law, which introduce stricter compliance requirements and clearer legal responsibilities for cross-border operations. The evolving regulations around intellectual property disputes, commercial mediation, and data governance signal heightened scrutiny and greater emphasis on transparency.
Financial sector reforms, as indicated by the upcoming Financial Law, may increase oversight but also aim to create a more predictable regulatory framework. Additionally, changes to tax laws and administration will impact reporting and compliance obligations, with new rules on electronic invoicing, transfer pricing, and enforcement powers.
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