• With the aim of thoroughly implementing the national strategy of actively responding to climate change, comprehensively advancing the construction of a Beautiful China, ensuring the realization of the carbon peaking target before 2030 as scheduled, and fully fulfilling the 2030 nationally determined contribution commitments, the Ministry of Ecology and Environment and 18 relevant departments have jointly gazetted the National Climate Change Response Plan for the 15th Five-Year Plan Period.
• To effectively advance the allowance allocation work for relevant sectors, and further give full play to the critical role of market mechanisms in controlling greenhouse gas emissions and reducing the overall societal emission reduction costs, the Ministry of Ecology and Environment has gazetted the Plan on the Total Allowance Volume and Allocation of Allowances for the Power Generation Sector for 2025 and 2026, and for the Iron and Steel, Cement, and Aluminum Smelting Sectors for the 2026, under China's National Carbon Emissions Trading Market.
• To further promote the standardized supervision of noise sources, and strengthen source prevention and control as well as classified management, the General Office of the Ministry of Ecology and Environment has gazetted the Guiding Catalogue for Noise Source Classification.
• In a bid to better adapt to the new development landscape of the real estate market and give full play to the housing security role of the housing provident fund system, the State Council has revised the Regulations on the Administration of Housing Provident Fund.
• The Special Equipment Service Administration Regulation (TSG 08-2026) further standardizes the use and management behavior of special equipment, effectively implements the main responsibility for safety, strengthens the safety defense line for special equipment safety, and effectively safeguards lives and property of people.
• The Eye and face protection—Emergency shower and eye wash equipment applies to the design, manufacturing, testing, installation, and maintenance of emergency shower and eye wash equipment for emergency rinsing treatment after workers who accidentally come into contact with hazardous chemicals and other dangerous goods in the workplace.
• To promote the sound and orderly international development of the automotive industry, guide automotive industry enterprises to standardize their overseas competition conduct and strengthen compliance capacity-building, deepen international cooperation along the automotive industry chain and supply chain, and contribute to the development and progress of the global automotive industry, the Ministry of Commerce, the Ministry of Industry and Information Technology and the State Administration for Market Regulation have jointly gazetted the Guidelines on Overseas Competition Conduct and Compliance Building for the Automotive Industry.
• To foster a favorable environment for the development of small and medium-sized enterprises, scale up support for them, and focus on driving enterprise innovation, the Ministry of Industry and Information Technology and 9 other departments have jointly gazetted the 15th Five-Year Plan for the Promotion of Small and Medium-Sized Enterprises Development.
• Updated Minimum Wage Standard of Guangdong Province and Yunnan Province. 

Environment

• <  National Climate Change Response Plan for the 15th Five-Year Plan Period >
• <  Plan on the Total Allowance Volume and Allocation of Allowances for the Power Generation Sector for 2025 and 2026, and for the Iron and Steel, Cement, and Aluminium Smelting Sectors for the 2026, under China's National Carbon Emissions Trading Market >
• < Guiding Catalogue for Noise Source Classification >

Social (Labour, Health and Safety)

• < Decision of the State Council on Amending the Regulations on the Administration of Housing Provident Fund >
• < Special Equipment Service Administration Regulation >
• < Eye and face protection — Emergency shower and eye wash equipment >

Governance & Comprehensive

• < Guidelines on Overseas Competition Conduct and Compliance Building for the Automotive Industry > 
• < 15th Five-Year Plan for the Promotion of Small and Medium-Sized Enterprises Development >

Minimum Wage Standard Update

• Guangdong Province, Yunnan Province 

Environment

1. < National Climate Change Response Plan for the 15th Five-Year Plan Period > (2026-07-24)

The National Climate Change Response Plan for the 15th Five-Year Plan Period hereinafter referred to as the Plan) has been jointly gazetted by the Ministry of Ecology and Environment and 18 other departments, on 24^th July 2026. The main contents are as below:

1) Core Quantitative Targets

By 2030, China will fully fulfill its nationally determined contribution commitments and achieve the carbon peaking target as scheduled:

• Carbon dioxide emissions per unit of GDP will decrease by 17% compared with the 2025 level.

• Carbon dioxide emission per unit of product in sectors covered by the national carbon market will drop by around 3% compared with the 2025 level.

• The control of non-carbon dioxide greenhouse gas will form a 30 million tons of carbon dioxide equivalent reduction capacity.

• A national voluntary greenhouse gas emission reduction trading market aligned with international standards will be established, and a product carbon footprint management system will be basically established.

2) Key Priority

• Curb Carbon Dioxide Emissions in Key Sectors. The dual control system for total amount of carbon emission and emission intensity is implemented to drive the peak of coal and oil consumption. New coal-consuming projects in key air pollution prevention and control zones are required to follow equivalent or reduced coal replacement rules, the blind launch of high-emission, high-pollution and low-efficiency projects is firmly curbed, and the carbon sink capacity of ecosystems is enhanced in parallel.  

• Strengthen non-CO₂ Greenhouse Gas Control. For the first time, this field is listed as an independent chapter. Priorities are given to methane leakage control, industrial nitrous oxide emission reduction, and full-chain management of fluorinated gases, with special governance projects rolled out as supporting measures.

• Upgrade the National Carbon Market System. The coverage scope of the carbon market is expanded in an orderly manner. The combined free and paid allowances allocation model is steadily implemented with the proportion of paid allocation gradually increased. More than 10,000 networked monitoring gateways are deployed, and large model technology is introduced to realize full-process digital intelligent supervision of the carbon market.

• Establish a Unified National Carbon Footprint Management System. Product carbon footprint accounting standards and carbon emission limits for key products are formulated, the national product carbon footprint factor database is built, carbon footprint labeling and certification pilots are launched, and carbon footprint requirements are integrated into scenarios such as government procurement, green finance and international trade.

• Enhance Climate Risk Response Capacity. The national climate observation network is improved, an early warning system for climate change risks is established, national climate change risk zoning maps are compiled, and the weak points of flood control, drainage and disaster resistance infrastructure in northern regions are fully addressed.

• Systematically Advance Climate Change Adaptation Actions. Adaptation tasks are deployed from three dimensions: natural ecosystems, economic and social systems, and key regions. Climate-smart agriculture is developed, cities are encouraged to compile climate risk maps, and climate resilience across all sectors is comprehensively enhanced.

• Improve the Climate Governance Support System. Special legislation on climate change response is advanced, the carbon emission accounting system is improved, the national greenhouse gas emission factor database is built, and joint governance synergy is formed through climate investment and financing, low-carbon technology promotion and public low-carbon initiatives.

• Deep Participate in Global Climate Governance. Constructively leads the multilateral climate negotiation process, fulfills international transparency obligations, deepens bilateral and multilateral climate cooperation, advances flagship South-South cooperation projects on climate change, and significantly enhances its influence in global climate governance.

2. < Plan on the Total Allowance Volume and Allocation of Allowances for the Power Generation Sector for 2025 and 2026, and for the Iron and Steel, Cement, and Aluminums Smelting Sectors for the 2026, under China's National Carbon Emissions Trading Market> (2026-09-1)

The Plan on the Total Allowance Volume and Allocation of Allowances for the Power Generation Sector for 2025 and 2026, and for the Iron and Steel, Cement, and Aluminums Smelting Sectors for the 2026, under China's National Carbon Emissions Trading Market (hereinafter referred to as the Plan) has been gazetted by the Ministry of Ecology and Environment on 1^st September 2026. The main contents are as below：

1) General Requirements

• Adhering to the three major principles of goal orientation, gradual progress and priority to efficiency, the plan fully implements free allowance allocation at the current stage, laying a solid foundation for the subsequent implementation of the allocation mode combining free allocation and paid allocation.

• With the core orientation of "incentivizing the advanced and spurring the backward", the lower the carbon emissions per unit of product, the higher the enterprise's allowance surplus rate, which guides enterprises to proactively carry out low-carbon transformations such as energy efficiency improvement and process innovation.

• Strengthening the carbon emission control for non-compliant backward production capacities and self-provided power plants, gradually align with production capacity replacement and output regulation policies, and promote industry to achieve orderly carbon reduction and safe decarbonization.

2) Coverage and Accounting Boundaries

• The power generation sector is covered for the two consecutive years of 2025 and 2026; for the Iron and steel, cement and aluminum smelting sectors, only the 2026 annual allowances are implemented, and the 2025 annual allowance allocation shall follow the provisions of the previous old version of the plan.

• For the power generation, Iron and steel and cement sectors, only carbon dioxide is accounted for; for the aluminum smelting sector, two additional greenhouse gases, namely tetrafluoromethane and hexafluoroethane, are covered, and all emissions are uniformly converted into carbon dioxide equivalent for statistical purposes.

• For all sectors, only the direct emissions generated in the production process are counted, and the indirect emissions arising from purchased electricity and purchased heat are excluded from the allowance accounting scope.

3) Calculation Rules for Allowances by Sector

• Power Generation Sector: Adopt the carbon emission intensity benchmarking method, calculate allowances on a per-generator-unit basis, set separate power generation and heat supply benchmark values for coal-fired and gas-fired units, and add a peak-shaving correction coefficient. Exemption arrangements are set for gas-fired units, and the maximum 20% upper limit exemption for enterprises' compliance gap rate is introduced to reduce their short-term compliance pressure.

• Iron and Steel, Cement and Aluminum Smelting Sectors: Adopt the carbon emission intensity coefficient method, compare the enterprise's actual emission intensity with the industry equilibrium value. Enterprises with emissions better than the industry benchmark will receive extra allowances, while those above the industry level will have their allowances deducted.

• Exemptions for Special Circumstances: Nine types of special entities, including units that meet the co-firing ratio standards for biomass/green hydrogen, enterprises with hydrogen-rich blast furnaces, production lines with high calcium carbide slag substitution rates, newly commissioned/closed-down enterprises, shall have their allowances directly verified and approved based on the actual verified emissions.

4) Rules for Allowance Issuance and Surrender

• Issuance Process: Implemented in two steps. First, 50% of the verified emissions of the previous year will be issued as pre-allocated allowances. After the annual carbon emission verification results are released, the verified allowances will be settled on a "more-refund-less-supplement" basis. For high-risk enterprises that have shut down or failed to complete surrender in history, their allowances will be retained in the provincial account first and then transferred to the enterprises after they complete compliance.

• Surrender Requirements: Complete the surrender of allowances for the previous year before December 31 of each year. Old allowances for 2019-2024 cannot be used for compliance in 2025 and later years, while allowances for 2025 and 2026 can be carried forward across years for use.

• Offset Rules: Enterprises can use the CCER (Chinese Certified Emission Reduction) registered after the launch of the national voluntary emission reduction trading market in January 2024 to offset the surrender of allowances for the corresponding year.

3. < Guiding Catalogue for Noise Source Classification > (2026-07-28)

The Guiding Catalogue for Noise Source Classification (hereinafter referred to as the Catalogue) has been gazetted by the general office of the Ministry of Ecology and Environment on 28^th July 2026. The main contents are as below：

1) The Catalogue divides all noise sources into four basic categories: industrial noise, construction noise, transportation noise and social life noise. This classification aligns with the management responsibility boundaries for noise pollution prevention and control under the current legal framework, fundamentally eliminating the problem of classification standards being disconnected from statutory requirements.

2) The Catalogue establishes a progressive three-level classification framework consisting of primary, secondary and tertiary tiers, covering all mainstream noise pollution scenarios and considering both the statutory framework and the practical needs of grassroots-level implementation. It provides important support for the normalized and refined governance of noise pollution. By unifying the noise classification standard, it ensures that noise sources can be clearly described, accurately categorized and effectively managed.

3) As the unified reference standard for the classified statistics of national noise complaints and the analysis of pollution characteristics and patterns, the Catalogue provides a set of general and unified benchmarks for the subsequent cross-regional interconnection of national acoustic environment management data and the precise assessment of noise control effectiveness.

Social (Labour)

1. < Decision of the State Council on Amending the Regulations on the Administration of Housing Provident Fund > (2026-09-20)

The Decision of the State Council on Amending the Regulations on the Administration of Housing Provident Fund was adopted at the 93rd Executive Meeting of the State Council on 31^st July 2026 and came into force as of 20^th September 2026. The main changes of amended Regulations on the Administration of Housing Provident Fund are as below:

1) The scopes of withdrawal and utilization of housing provident fund are expanded. For the withdrawal of housing provident fund for rent payment, there will no longer be a threshold restriction that the rent must exceed the stipulated proportion of the household wage income. New eligible scenarios for housing provident fund withdrawal are added, including renovation of owner-occupied housing, payment of property management fees for owner-occupied housing, and other housing consumption circumstances approved by the State Council. The investment and utilization channels of housing provident funds are appropriately expanded, which explicitly stipulates that housing provident fund management centers may use the funds to purchase policy-based financial bonds.  

2) Management and service efficiency is improved. The procedures for employees to apply for housing provident fund withdrawal are simplified, the review time limit for housing provident fund loan applications is shortened, the mutual recognition of housing provident fund payment records and other information across the country is realized, and the convenient and efficient handling of businesses such as housing provident fund transfer and continuation, and off-site loans is promoted.

3) Risk prevention and control are strengthened. The competent housing and urban-rural development department under the State Council shall define the scope of public credit information in the housing provident fund sector, and housing provident fund management centers shall establish comprehensive, complete and accurate credit records and incorporate them into the national credit information sharing platform. Clear legal liabilities are stipulated for acts of illegally withdrawing housing provident fund or obtaining housing provident fund loans by means of fraud, forgery of supporting materials and other methods.

4) The coverage of the system is expanded. It is explicitly stipulated that individual industrial and commercial households, part-time employees, and other flexible employees may voluntarily contribute to the housing provident fund and enjoy corresponding policy support in accordance with regulations.

Social (Health and Safety)

1. < Special Equipment Service Administration Regulation > TSG 08-2026 (2026-05-01)

The Special Equipment Service Administration Regulation (hereinafter referred to as the Regulation) was issued by the State Administration for Market Regulation on 2^nd February 2026, replacing the TSG 08-2017. It came into effect on 1^st May 2026. The main revisions to the Regulation are as follows:

1) The Regulation has refined the "Regulations on the Supervision and Management of Special Equipment User Units’ Implementation of Primary Responsibility for Use Safety", unified the position setting and allocation requirements for safety management personnel in special equipment user units, and clarified the responsibilities of key positions such as safety directors and safety officers.

2) The Regulation organically integrates the risk control and hidden danger investigation and management mechanisms of special equipment user units, forming a closed-loop management of daily control, weekly investigation, and monthly scheduling.  

3) The Regulation requires for the special equipment that has been out of service for more than the effective period of equipment safety inspection, regular inspections shall be conducted in accordance with the relevant requirements of regular inspections before re-enable it. If the oxygen chamber has been out of use for more than 6 months, the user shall apply for regular inspection to the inspection agency before re-enabling it.  

2. < Eye and face protection—Emergency shower and eye wash equipment > GB38144—2025 (2026-09-01)

The Eye and face protection—Emergency shower and eye wash equipment (hereinafter referred to as the Equipment) was jointly issued by the State Administration for Market Regulation and the National Standards Administration on 29^th August 2025. It came into effect on 1^st September 2026. The relevant requirement to the Equipment is as follows:

1) The installation height of the head of emergency sprinkler shall be between 2080 and 2440mm. Within the cylindrical body with a minimum radius of 410mm, there shall not be obstacles except for the valve drive device. The height of the valve drive device shall not exceed 1730mm.

2) The emergency shower shall provide flushing solution at a flow rate of at least 76L/min, and the eyewash station shall provide flushing solution at a flow rate of at least 1.5L/min. Both shall be continuously flushed for at least 15 minutes. The temperature range of the flushing fluid for emergency sprinkler and eyewash equipment is from 16 ℃ to 38 ℃.

3) The nozzle of the eyewash station shall be located at a vertical distance of at least 838mm from the horizontal plane where the user is standing, but not exceeding 1143mm, and at least 153mm from any nearest obstacle. The height of the rinsing liquid sprayed from the eyewash station shall be 150mm~300mm.

4) Emergency sprinkler and eyewash stations shall be installed within an area that can be reached by workers within 10 seconds (15 meters) and shall be on the same plane as the area where danger may occur. At the same time, it is necessary to consider avoiding obstacles on the route to the equipment.

Governance & Comprehensive

1. < Guidelines on Overseas Competition Conduct and Compliance Building for the Automotive Industry > (2026-08-24)

The Guidelines on Overseas Competition Conduct and Compliance Building for the Automotive Industry (hereinafter referred to as the Guidelines) has been jointly gazetted by the Ministry of Commerce, the Ministry of Industry and Information Technology and the State Administration for Market Regulation, on 24^th August 2026. The main contents are as below:

1) Code of Conduct for Competition in Overseas Markets

• Enterprises shall formulate cost-based and international market supply-demand oriented pricing strategies, ensure price compliance management for all categories of complete vehicles and auto parts, and refrain from disrupting the local market competition order by improper means.

• Enterprises shall set clear tiers of overseas suggested retail prices for vehicles with different configurations, to avoid frequent and drastic price fluctuations that harm consumer interests and brand image.

• Enterprises shall reasonably set inter-regional price differences in light of the market environment, tax and fee structure, and logistics costs of different countries, to avoid chaos in cross-regional sales order.

• Enterprises shall fully respect the independent pricing rights of distributors and agents in the host country, make clear compliance agreements on sales incentive policies, and conduct proper compliance supervision over the distribution channel.

• Enterprises shall implement transparent price marking rules, refrain from illegally raising prices or charging unpublicized fees beyond the marked prices and standardize overseas marketing practices including prize promotions and commercial publicity.

2) Requirements regarding Overseas Compliance Capacity Building

• Compliance with work safety and full-lifecycle product quality management at overseas production bases.

• Compliance of host country local labor protection and employee rights and interests’ protection.

• Compliance of cross-border data transmission and user information security.

• Compliance of anti-monopoly and anti-commercial bribery in the overseas supply chain.

• Compliance of social responsibilities including green low-carbon development and ESG information disclosure.

2. < 15th Five-Year Plan for the Promotion of Small and Medium-Sized Enterprises (SMEs) Development > (2026-09-01)

The 15th Five-Year Plan for the Promotion of Small and Medium-Sized Enterprises (SMEs) Development (hereinafter referred to as the Promotion Plan) has been jointly gazetted by the Ministry of Industry and Information Technology and 9 other departments, on 1^st September 2026. The main contents are as below:

1) Core Targets for 2030

• The per capita operating income of industrial enterprises above designated size among SMEs will achieve a cumulative growth of around 15%.

• The internal R&D expenditure of industrial SMEs above designated size will register an average annual growth of over 8%.

• The number of Specialized, Refined, Differentiated and Innovative (SRDI) “Little Giant” Enterprises will reach  22,000 , and the number of national-level characteristic industrial clusters for small and medium-sized enterprises will reach 600 .

• The proportion of SRDI and SMEs attaining Level 2 digital-intelligent level will be ≥ 95%, and that attaining Level 3 will be ≥ 80%.

• The number of China-foreign SMEs cooperation zones will reach 50, and a long-term mechanism for preventing and resolving overdue payments to SMEs will be basically established.

2) Seven Key Priorities

• Stabilizing enterprises and employment and driving job creation through entrepreneurship. Leveraging government investment fund at all levels to channel capital into seed-stage and start-up enterprises, exploring application scenarios in emerging industries such as new energy, quantum technology and embodied AI, implementing the interest discount policy for entrepreneurship guaranteed loans for micro and small enterprises, and supporting college graduates to seek employment in SMEs.

• Strengthening enterprise cultivation and elevating the development level of SRDI enterprises. Improving the tiered cultivation system for high-quality enterprises, promoting the integration of the evaluation systems for tech-based SMEs and innovative SMEs, supporting SMEs to participate in national key S&T special projects, and enhancing their market competitiveness from three dimensions: quality management, brand cultivation and standardization capability.

• Accelerating digital, smart and green development to drive enterprise transformation and upgrading. Advancing the city-level pilot program for SMEs' digital transformation, reducing the computing cost for SMEs, encouraging enterprises to carry out product carbon footprint management, expanding the scope of green products in government procurement, and guiding financial institutions to support SME development through green finance.

• Promoting coordinated and integrated development and enhancing the supporting capacity of the industrial chain. Encouraging leading enterprises to open up scientific research facilities and application scenarios to SMEs, carrying out the "leading enterprises releasing demands, SMEs tackling challenges" initiative, guiding SMEs to cluster in industrial parks, strengthening the supporting capacity of SRDI SMEs in the industrial chain, and enhancing the stability of the supply chain.

• Strengthening the supply of production factors and consolidating the foundational support for development. Establishing the Phase II of the National SME Development Fund, building the "Sci-Tech Board" on the bond market, improving the system for talent recruitment and development for SMEs, exploring the secure and credible circulation of high-value data between large, medium and small enterprises, and supporting SMEs in including data assets in their accounting statements.

• Improving the SME service system to help enterprises reduce costs, improve quality and increase efficiency. Optimizing and strengthening the national "one-stop service network" for SMEs, deepening the application of "AI + SME services", promoting classified and tiered SME services, and carrying out public welfare services for micro and small enterprises in county towns, townships and remote areas.

• Strengthening legal and policy safeguards to improve the development environment for SMEs. Further advancing the building of a unified national market, enhancing the rigid binding force of fair competition review, improving the complaint mechanism of "two-level acceptance and four-level handling" for overdue payments owed to SMEs, and providing SMEs with fast and coordinated Intellectual Property Rights (IPR) protection services.

Drafted by:
Henry Wang
Feeling Pan
Darrel Chen

Translation Reviewed by:
Kiwi Fu

Approved by:
Paul Shi