Published by ChinaMNC · Qidong
China’s State Council Signals AI Push, Price Governance, and Regulatory Cleanup: What Foreign Founders Should Know
A State Council executive meeting chaired by Premier Li Qiang reviewed the AI Plus initiative, discussed draft amendments to the Teachers Law and Price Law, and approved changes to administrative regulations. Here’s a practical summary for foreign founders operating or registering a company in China.
State Council Meeting Highlights AI, Pricing, and Regulatory Changes
On October 16, Premier Li Qiang chaired a State Council executive meeting in Beijing. The meeting heard a report on the progress of the “AI Plus” initiative, discussed draft amendments to the Teachers Law and the Price Law, and approved a draft decision to amend and repeal certain administrative regulations. For foreign founders building or running a company in China, these discussions signal policy priorities that can affect hiring, technology adoption, pricing strategies, and regulatory compliance.
AI Plus Initiative: Focus on Deployment and Real-Economy Integration
The meeting described artificial intelligence as a key variable shaping future development. It stressed that China’s complete industrial system, rich application scenarios, and strong engineering capabilities should guide the AI Plus initiative, with an emphasis on deploying applications to drive technological innovation.
Key directions mentioned include:
- Strengthening the foundation: advancing technical research and algorithm innovation, promoting coordination between computing and electricity, and increasing the supply of high-quality data.
- Addressing gaps and leveraging strengths: shoring up weaknesses while building on existing advantages.
- Prioritizing application: focusing on the real economy, improving supply-demand connections, encouraging joint research and development, advancing pilot testing, and expanding application scenarios so that AI technologies translate into real productivity.
- Balancing development and security: applying sector-specific, tiered and categorized measures, strengthening risk assessment, and safeguarding AI security.
For foreign founders, this suggests that AI-related projects with clear real-economy applications and joint R&D components may find a supportive policy environment. However, companies should also prepare for sector-specific risk assessments and security requirements.
Teachers Law Amendment: Potential Impact on Education Sector Employers
The meeting discussed and principle-approved a draft amendment to the Teachers Law and decided to submit it to the Standing Committee of the National People’s Congress for review. The draft focuses on strengthening guarantees for teachers’ treatment and rights, reducing non-teaching burdens, improving public services for teachers, and protecting their professional dignity and lawful rights. It also aims to cultivate a high-quality, professional teaching workforce, improve the teacher education system, enhance teaching capabilities, strengthen professional ethics, and foster a society that respects teachers and values education.
Foreign founders in the education or training sector should monitor the legislative process, as the amendment could affect employment practices, teacher qualifications, and workplace policies.
Price Law Amendment: Curbing Unfair Low-Price Competition
The meeting also discussed and principle-approved a draft amendment to the Price Law, to be submitted to the NPC Standing Committee. The amendment is intended to adapt to new circumstances, further improve price governance mechanisms, refine government pricing procedures, and clarify standards for identifying unfair pricing practices and associated legal liabilities.
Specific measures mentioned include:
- Govern low-price disorderly competition in accordance with laws and regulations.
- Improve supporting rules such as industry cost investigations and prohibitions on below-cost dumping.
- Strengthen price enforcement and supervision.
- Continue to regulate price competition in the platform economy and guide companies to enhance the value of their products and services.
- Foster a fair and orderly market environment.
For foreign founders, especially those in e-commerce, retail, or platform-based businesses, this signals a tighter focus on pricing conduct. Companies should review their pricing strategies, discount policies, and platform practices to ensure they align with evolving rules on low-price competition and unfair pricing.
Administrative Regulation 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 four administrative regulations, including the Provisions on Limitation of Liability for Maritime Passenger Transport between Ports. While the source does not specify all the regulations affected, this cleanup is part of broader efforts to streamline and update the regulatory framework.
Foreign founders should stay informed about which regulations are amended or repealed, as changes may affect compliance obligations in areas such as record-keeping, transport, and other sector-specific operations.
Practical Takeaways for Foreign Founders
- AI projects: Align your AI initiatives with real-economy applications and consider joint R&D and pilot testing. Be mindful of security and risk assessment requirements that may vary by sector.
- Education sector: If you employ teachers or trainers, monitor the Teachers Law amendment for potential changes to labor rights, professional standards, and non-teaching workload reduction.
- Pricing and platform operations: Review your pricing policies and platform practices in light of the proposed Price Law amendment, particularly regarding low-price competition and unfair pricing.
- Regulatory compliance: Keep track of the administrative regulations being amended or repealed to ensure your business remains compliant.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.