• The Ministry of Human Resources and Social Security issued the Compliance Guidelines for Enterprises Implementing Non-Compete Restrictions, helping balance the rights and interests of enterprises and workers.
• The Corporate Governance Code for Listed Companies was revised and issued by the China Securities Regulatory Commission (CSRC), aiming to strengthen responsibilities of the "Key Minorities" and improve the level of governance.
• The Ministry of Commerce issues two new regulations on overseas infrastructure, which are Evaluation Specifications for Oversea Sustainable Infrastructure Projects by Chinese Enterprises (WM/T 12 - 2025) and Guidance for Implementation of Overseas Sustainable Infrastructure Projects by Chinese Enterprises (WM/T 11 - 2025), bolstering compliance-driven global growth for Chinese enterprises.
• Aiming to standardize ecological environment monitoring activities, enhance monitoring capabilities, and ensure the quality of relevant data, the State Council has gazetted the Regulation on Ecological Environment Monitoring.
• Aiming to help organizations in assessing the impacts, dependencies, risks, and opportunities of biodiversity, the International Organization for Standardization (ISO) has launched the world’s first International Standard on biodiversity, ISO 17298 Biodiversity-Considering biodiversity in the strategy and operations of organizations-Requirements and guidelines.
• The Safety Technical Specification for Prevention of Dust Explosion from the Mechanical Processing of Aluminum and Magnesium Products stipulates the general requirements for dust explosion prevention in mechanical processing of aluminum and magnesium products, the structure and layout of buildings (structures), electrical safety and static electricity prevention, safety of mechanical processing equipment, explosion-proof of dust removal equipment, and the requirements for the collection, treatment, storage and dust cleaning of aluminum and magnesium dust, slurry and magnesium scraps.
• The Safety Specification for Dust Explosion Prevention in Wood Processing System AQ 4228-2025 stipulates general requirements for dust explosion prevention in wood processing systems, inspection and maintenance of safety-related equipment and facilities, dust cleaning and management, and training requirements.
• Updated Minimum Wage Standard of Anhui Province, Ningxia, Yunnan Province and Shandong Province. 

Comprehensive

• < Compliance Guidelines for Enterprises Implementing Non-Compete Restrictions >
• < Corporate Governance Code for Listed Companies >
• < Evaluation Specifications for Overseas Sustainable Infrastructure Projects by Chinese Enterprises > < Guidance for Implementation of Overseas Sustainable Infrastructure Projects by Chinese Enterprises >

Environment

• < Regulation on Ecological Environment Monitoring >
• < ISO 17298: 2025 Biodiversity - Considering biodiversity in the strategy and operations of organizations - Requirements and guidelines >

Health and Safety

• < Safety Technical Specification for Prevention of Dust Explosion from the Mechanical Processing of Aluminum and Magnesium Products > 
• < Safety Specification for Dust Explosion Prevention in Wood Processing System >

Minimum Wage Standard Update

• Anhui Province, Ningxia, Yunnan Province and Shandong Province

Comprehensive

1. < Compliance Guidelines for Enterprises Implementing Non-Compete Restrictions > (2025-09-04)

The Ministry of Human Resources and Social Security issued the Compliance Guidelines for Enterprises Implementing Non-Compete Restrictions (hereinafter referred to as the Guidelines) on 4^th September 2025, providing clear basics for enterprises to implement non-compete restrictions in a standardized manner. The aim is to comprehensively protect both the trade secrets of enterprises and the employment rights of employees.

The Guidelines specify that non-compete restrictions apply to employees who are required to keep trade secrets. A trade secret must meet conditions such as not being known to the public, having commercial value, and being protected by the enterprise through confidentiality measures. When implementing non – compete restrictions, enterprises should adhere to the principles of necessity and reasonableness. They shall prioritize protecting trade secrets by controlling access to sensitive information and encrypting data. It is not allowed to indiscriminately expand the scope of personnel subject to non - compete restrictions or restricting employment regions.

Regarding economic compensation, if enterprise requiring employee to assume non - compete restriction obligations, it must provide compensation. The standard is determined by the factors such as the value of the trade secret, the scope of restrictions, and the employee's salary level. Monthly compensation shall generally be not less than 30% of the employee's average monthly salary in the past 12 months before leaving the job and not lower than the local minimum wage standard. For non - compete restriction periods exceeding one year, the compensation should preferably not be less than 50%.

In addition, the Guidelines provide detailed provisions on the execution, performance, modification, and termination of non - compete agreements, clarify the rights and obligations of both enterprises and employees. If an enterprise fails to pay compensation as agreed, employees can file complaints with local human resources and social security departments. In case of disputes, both parties can resolve them through negotiation, and if negotiation fails, they can resort to mediation, arbitration, or litigation procedures.

2. < Corporate Governance Code for Listed Companies > (2026-01-01)

The Corporate Governance Code for Listed Companies was revised and issued by the China Securities Regulatory Commission (CSRC), will officially come into effect on 1^st January 2026. This revision aims to further standardize the behaviors of directors, senior management personnel, controlling shareholders, and actual controllers of listed companies, and enhance their governance level.

The new regulations strengthen the responsibilities of these "Key Minorities" from multiple dimensions. In terms of supervising directors and senior management, a full-cycle regulatory framework covering the entire process from appointment, performance of duties, to departure has been established. It clarifies qualification requirements, refines the obligations of loyalty and diligence, intensifies accountability measures, and introduces a departure review system. Regarding the incentive and restraint mechanisms, the regulations stipulate that the compensation of directors and senior management should align with both the company's operating performance and their individual performance. Performance-based compensation should account for no less than 50% in principle, and a mechanism for stopping and recovering compensation has also been established. For controlling shareholders and actual controllers, the regulations strictly restrict horizontal competition that may have a significant adverse impact on listed companies and improve the review rules for related-party transactions.

This revision marks a new stage in the corporate governance of listed companies in China, transitioning from "formal compliance" to "substantive effectiveness." The new regulations will prompt listed companies to establish a sound modern enterprise system, enhance their standardized operation levels, boost investor confidence, attract long-term capital to enter the market, and facilitate the high-quality development of the capital market.

3. < Evaluation Specifications for Overseas Sustainable Infrastructure Projects by Chinese Enterprises > < Guidance for Implementation of Overseas Sustainable Infrastructure Projects by Chinese Enterprises > (2026-01-01)

On 8^th September 2025, at the Outbound Investment Special Release Event of the 25^th China International Fair for Investment and Trade, the Ministry of Commerce officially promulgated two industry regulations: the Evaluation Specifications for Overseas Sustainable Infrastructure Projects by Chinese Enterprises (WM/T 12 – 2025, hereinafter referred to as the Evaluation Specifications) and the Guidance for Implementation of Overseas Sustainable Infrastructure Projects by Chinese Enterprises (WM/T 11 – 2025, hereinafter referred to as the Implementation Guidance), with a clear implementation date of 1^st January 2026. This move fills the gap in global standards for overseas sustainable infrastructure development led by home-country governments, providing authoritative and systematic compliance guidance for Chinese infrastructure enterprises expanding overseas.

Core of the regulations: Establishing an ESEG Four-in-One Full Lifecycle Management System

The two regulations take "Economic, Social, Environmental, and Governance" (ESEG) as the core dimensions, constructing a sustainable management framework that covers the entire lifecycle of projects. The Evaluation Specifications focus on quantitative assessment, setting 23 mandatory indicators such as carbon emission intensity and community employment contribution rate, requiring enterprises to regularly disclose environmental data and social benefits to ensure that the effectiveness of sustainable project development is measurable and traceable. The Implementation Guidance, on the other hand, emphasize operational execution, detailing sustainable practice paths at each stage from project planning, design, and construction to operation.

The two regulations not only provide a clear basis for enterprises to avoid international compliance risks but also align with the World Bank's ESGG rating system through quantitative indicators, helping to enhance the competitiveness of Chinese infrastructure projects in the international financing market.

Environment

1. < Regulation on Ecological Environment Monitoring > (2026-01-01)

The Regulation on Ecological Environment Monitoring (hereinafter referred to as the Regulation) was adopted at the 70^th Executive Meeting of the State Council on 17^th October 2025. It will come into force on 1^st January 2026. The main contents are as below:

 1) The Regulation comprises 7 chapters and 49 articles emphasizing the need to accelerate the establishment of a modern ecological environment monitoring system, with a focus on comprehensively enhancing the automation, digitization and smart capabilities of ecological environment monitoring.

 2) The Regulation highlights improved public monitoring by establishing an ecological environment monitoring network based on the principles of rational layout, comprehensive functionality, classification and shared development.

 3) The Regulation emphasizes to strengthen supervision and monitoring of various pollution sources, as well as monitoring and early warning for ecological environment risks. Additionally, it mandates the establishment of a robust monitoring and management system for emergent ecological environment incidents.

 4) The Regulation stipulates that technical service organizations must possess the necessary equipment, technical capabilities, professional personnel, and management capacity, and are required to register with environmental authorities.

 5) The Regulation underscores the importance of strengthen oversight and stricter accountability measures.

2. < ISO 17298: 2025 Biodiversity - Considering biodiversity in the strategy and operations of organizations - Requirements and guidelines > (2025-10-07)

The International Organization for Standardization (ISO) has launched the world’s first International Standard dedicated to supporting organizations globally to take action on biodiversity, ISO 17298:2025 Biodiversity-Considering biodiversity in the strategy and operations of organizations-Requirements and guidelines (hereinafter referred to as the Standard) on 7^th October 2025 during its Annual Meeting 2025 (AM25) in Kigali, Rwanda. Its core value lies in helping organizations understand their activities' dependence on nature, their impacts, and associated risks, and transforming the consideration of biodiversity from an abstract concept into concrete actions. The standard guides users in assessing the interactions of biodiversity, setting measurable goals, formulating reliable action plans, and gradually integrating them into the overall sustainable development management system. The key points are summarized as below:

 1) Background for the Introduction of the Standard

• USD 44 trillion of global GDP depends on nature. 
• Biodiversity loss is accelerating, brings operational, financial, and reputational risks. 
• Frameworks like “Kunming Montréal Global Biodiversity Framework” and other emerging regulations require all parties to take actions.

 2) The Standard  provides a clearly structured, practical roadmap to:

• Understand organization’s biodiversity impacts, dependencies, and risks.
• Identify opportunities for green growth and nature-positive finance.
• Align with global frameworks like the Kunming-Montreal Global Biodiversity Framework (GBF).
• Formulate and implement a credible biodiversity action plan.

 3) Implementation of the Standard

• Assess how their activities interact with biodiversity.
• Prioritize actions at both operational and landscape levels.
• Set measurable objectives and monitor progress.
• Integrate biodiversity into broader sustainability efforts (e.g., ISO 14001, ISO 26000).

 4) Benefits of implementing the Standard

• Aligns strategy with emerging biodiversity policies and disclosure requirements.
• Supports risk reduction and resilience across supply chains and operations.
• Unlocks green finance, investor confidence and new market opportunities.
• Enables transparent reporting of nature-related performance.
• Builds institutional capacity – especially for SMEs and public entities in developing countries.

Health and Safety

1. < Safety Technical Specification for Prevention of Dust Explosion from the Mechanical Processing of Aluminum and Magnesium Products > AQ4272-2025 (2026-11-01)

The Safety Technical Specification for Prevention of Dust Explosion from the Mechanical Processing of Aluminum and Magnesium Products AQ4272-2025 (hereinafter referred to as the Specification) was issued by the Ministry of Emergency Management of the PRC on 15^th October 2025, replacing the Safety Specification for Prevention of Dust Explosion from the Mechanical Processing of Aluminum and Magnesium Products (AQ4272-2016). It will come into effect on 1^st November 2026. The main revisions to the Specification are as follows:

1. Removed the requirement for hazardous areas in dust explosion environments.
2. Revised the requirements for the structure and layout of buildings (structures).
3. Removed the requirements for fire prevention and firefighting facilities.
4. Revised the requirements for electrical safety and electrostatic prevention.
5. Revised the requirement for the safety of mechanical processing equipment.
6. Revised the requirement for explosion-proof safety of the dust removal system.
7. Added the requirements for the collection, treatment, and storage of aluminum-magnesium dust, aluminum-magnesium dust slurry, and magnesium scraps.
8. Revised the requirement for dust removal.

2. < Safety Specification for Dust Explosion Prevention in Wood Processing System > AQ 4228-2025 (2026-11-01)

The Safety Specification for Dust Explosion Prevention in Wood Processing System (hereinafter referred to as the Specification) was issued by the Ministry of Emergency Management of the PRC on 15^th October 2025, replacing the Safety Specification for Dust Explosion Prevention in Wood Processing System (AQ4228-2012). It will come into effect on 1^st November 2026. The main revisions to the Specification are as follows:

1. Added the requirement for hazard identification and risk analysis.
2. Revised the requirement for the classification of explosion hazardous areas.
3. Added the requirement for buildings (structures).
4. Revised the general requirement for production equipment and facilities.
5. Revised the general requirement for the dust removal system.
6. Added the requirement for the startup and shutdown of the dust removal system.
7. Revised the requirement for the dust removal system.
8. Revised the inspection and maintenance of explosion-proof equipment.
9. Removed the requirement for dust deposition thickness in the dust deposition area.
10. Removed the requirement for cleaning combustible waste materials containing wood dust that cannot be reused.
11. Revised the requirements for dust cleaning.

Drafted by:
Henry Wang
Feeling Pan
Darrel Chen

Translation Reviewed by:
Kiwi Fu

Approved by:
Paul Shi