Published by ChinaMNC · Lanshan
China’s State Council Signals AI Push and Price Reforms: What Foreign Founders Need to Know
A State Council executive meeting chaired by Premier Li Qiang reviewed progress on the “AI Plus” initiative and discussed draft amendments to the Teachers Law and Price Law. Here’s how these policy directions may affect foreign founders operating in China.
China’s State Council Signals AI Push and Price Reforms: What Foreign Founders Need to Know
On October 16, Premier Li Qiang chaired a State Council executive meeting in Beijing that covered several policy areas relevant to businesses operating in China. The meeting reviewed the progress of the “AI Plus” initiative and discussed draft revisions to the Teachers Law and the Price Law. It also approved a decision to amend and repeal certain administrative regulations. For foreign founders registering or running a company in China, these developments offer signals about regulatory priorities and market direction.
AI Plus Initiative: Focus on Practical Application
The meeting noted that artificial intelligence is a key variable influencing future development. It emphasized that China will deepen and expand the “AI Plus” initiative by leveraging the country’s complete industrial system, rich application scenarios, and strong engineering capabilities. The approach will prioritize practical applications to drive technological innovation.
Key points include:
- Strengthening the foundation: Enhancing technical research, algorithm innovation, computing-power coordination, and high-quality data supply to address weaknesses and build on strengths.
- Promoting application: Focusing on the real economy, improving supply-demand alignment, encouraging joint research and development, advancing pilot testing, and cultivating more application scenarios to turn AI technology into real productivity.
- Balancing development and security: Implementing industry-specific, tiered measures, strengthening risk assessment, and upholding AI safety bottom lines.
For foreign founders, this suggests that AI-related businesses may find support for application-focused projects, particularly those connected to manufacturing, logistics, or other real-economy sectors. However, compliance with safety and risk assessment requirements will remain important.
Teachers Law Revision: Potential Impact on Education Sector
The meeting discussed and principle-approved a draft revision to the Teachers Law, which will be submitted to the National People’s Congress Standing Committee for deliberation. The revision aims to strengthen teacher compensation and rights, reduce non-teaching burdens, improve social public services for teachers, and protect their professional dignity and lawful rights. It also seeks to build a high-quality, professional teaching workforce and improve teacher education.
While this law primarily concerns the education sector, foreign founders in education or training businesses should monitor how these changes may affect teacher qualifications, employment practices, and operational standards. The emphasis on reducing non-teaching burdens and improving rights could influence labor practices across educational institutions.
Price Law Amendment: Curbing Unfair Price Competition
The meeting also discussed and principle-approved a draft amendment to the Price Law, which will be submitted to the NPC Standing Committee. The amendment aims to adapt to new situations by improving price governance mechanisms, refining government pricing procedures, and clarifying standards for identifying unfair price behaviors and related legal responsibilities.
Specific measures include:
- Governance of low-price disorderly competition in accordance with the law.
- Improving supporting rules such as industry cost investigations and prohibitions on low-price dumping.
- Strengthening price law enforcement and supervision.
- Regulating price competition in the platform economy and guiding companies to enhance product and service value.
For foreign founders, especially those in e-commerce or platform-based businesses, this signals tighter scrutiny of pricing practices. Companies should review their pricing strategies to ensure compliance with fair competition rules and avoid engaging in predatory pricing or other unfair behaviors.
Regulatory Cleanup: Amendments and Repeals
The meeting decided to amend certain provisions of 14 administrative regulations, including the Implementation Regulations of the Archives Law, and to repeal 4 administrative regulations, including the Provisions on Limitation of Liability for Maritime Passenger Transport between Ports. This regulatory cleanup is part of ongoing efforts to streamline and update the legal framework. Foreign founders should stay informed about which regulations affect their industry, as changes may impact compliance requirements.
Practical Takeaways for Foreign Founders
These policy directions suggest several considerations for foreign entrepreneurs:
- AI opportunities: If your business involves AI, aligning with application scenarios in the real economy may align with government priorities. Ensure compliance with safety and risk assessment rules.
- Education sector: Monitor the Teachers Law revision for potential changes in employment and qualification requirements if you operate in education.
- Pricing compliance: Review pricing strategies, particularly in platform economy contexts, to avoid unfair competition. The Price Law amendment may lead to stricter enforcement.
- Regulatory updates: Keep track of amendments and repeals of administrative regulations that could affect your operations.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.
For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.