Summary:

• The Anti-Unfair Competition Law of the People’s Republic of China has been amended by the Standing Committee of the National People’s Congress. Significant modification and optimization are made in this amendment comparing with the previous version of 1993.
• The Measures for Implementation on Fire Safety Responsibility System was gazetted by the General Office of the State Council to propel the implementation of responsibilities on fire safety.
• The Environmental Protection Tax Law of the People’s Republic of China will come into force on 1st January 2018. Pollutant discharge fee shall not be levied since the date of enforcement of this law.
• Updated Minimum Wage of Jiangxi Province.

Contents

Ethics

• < Anti-Unfair Competition Law of the People’s Republic of China >

Health and Safety

• < Measures for Implementation on Fire Safety Responsibility System >

Environment

• < Environmental Protection Tax Law of the People’s Republic of China >

Minimum Wage Standard Update

• Jiangxi Province

Summary of Law Updates:

Ethics

1. < Anti-Unfair Competition Law of the People’s Republic of China > (2018-01-01)

The Anti-Unfair Competition Law of the People’s Republic of China (hereinafter referred to as Competition Law) has been amended by the Standing Committee of the National People’s Congress on 4th November 2017 and it will come into force on 1st January 2018. Main points of amendment are as follows:

• The definition of Operator is refined. The condition of profitability is removed in the amended Competition Law, thus the scope of application of the Competition Law is expanded.
• Addition of clause against unfair competition in internet.
• The provisions on prohibiting "organizing false transaction" are added. Henceforth, click farming, deleting negative comments, false transactions, and carrying out false rating of honors shall be investigated and penalized.
• The provisions on counterfeiting and imitation are amended and refined. Counterfeit or imitation of influential brand name, packaging,  company name, trade name, and commercial activity, are defined.
• The Commercial Bribery is defined more reasonably. The intention to gain trading opportunity and competitive advantage is defined explicitly, and the scope of bribe taker is limited. Provisions on commercial bribery behavior of an employee are defined specifically, and the boundary between commercial bribery and normal market competition is clarified.
• Provisions on legal liability are improved, and penalties for unfair competition are increased. Corresponding legal liability are provided for unfair competitions listed in the amended Competition Law.

Health and Safety

1. < Measures for Implementation on Fire Safety Responsibility System > (2017-10-29)

The Measures for Implementation on Fire Safety Responsibility System (hereinafter referred to as Measures) was gazetted by the General Office of the State Council on 29th October 2017 and it has come into force on the same day. The main contents of the Measures are as follows:

1. Enterprises shall equip with fire-fighting facilities, equipment and set up fire safety signage according to relevant standards with regular inspection and maintenance. Fire-prevention facilities in buildings shall be comprehensively inspected at least once a year to ensure intact and functional. If a fire control room is set up in an enterprise, the 24-hour duty system shall be implemented with no fewer than 2 staff holding qualification certificate per shift.
2. The Key Entity of Fire Safety shall explicitly define its organization of fire safety management and designate the fire safety manager, then report to local Fire Department of Public Security, and implement the fire safety management. The fire safety managers shall have been trained on fire safety.
3. If a same building managed or occupied by two or more entities, the fire safety responsibilities of each party shall be defined explicitly, and a person-in-charge shall be designated to be responsible for managing the common evacuation routes, exits, fire-prevention facilities in the building, and fire lanes in a consistent way.

Environment

1. < Environmental Protection Tax Law of the People’s Republic of China > (2018-01-01)

The Environmental Protection Tax Law of the People’s Republic of China was deliberated and adopted by the Standing Committee of the National People’s Congress on 25th December 2016, and it will come into force on 1st January 2018. Pollutant discharge fee shall not be levied since the date of enforcement of this law. The main points are as follows:

1. Scope of application

• The enterprises, public institutions and other producers and operators that directly discharge air pollutants, water pollutants, solid wastes and noises to the environment within the territory of the People’s Republic of China and other sea areas under the jurisdiction of the People’s Republic of China are Environmental Pollution Tax-Payer.
• The enterprises, public institutions and other producers and operators, that discharge taxable pollutants to a centralized sewage or domestic refuse treatment sites which are established in accordance with laws and store or dispose of solid wastes at any facility or site that meets the national and local environmental protection standards, shall not be deemed as directly discharging pollutants to the environment, and thus are not required to pay Environmental Protection Tax for the corresponding pollutants.

2. Applicable tax amounts

• Air pollutants: RMB 1.2 to RMB 12 per pollutional equivalent
• Water pollutants: RMB 1.4 to RMB 14 per pollutional equivalent
• Solid wastes: RMB 5 to RMB 1,000 per ton
• Noises: RMB 350 to RMB 11,200 per month for excessive emission

3. Tax reduction and exemption

• If the concentration of taxable air pollutants or water pollutants discharged lower than 30% of the emission limits of both national and local provisions, the Environment Protection Tax shall be reduced by 25%.
• If the concentration of taxable air pollutants or water pollutants discharged lower than 50% of the emission limits of both national and local provisions, the Environment Protection Tax shall be reduced by half.

4. Essentials of levy management

• The taxpayer shall declare and pay the Environmental Protection Tax to the tax authorities ｗｈｅｒｅ the taxable pollutants are discharged.
• The Environmental Protection Tax shall be calculated on a monthly basis but declared and paid on a quarterly basis. If the tax cannot be calculated and paid by a fixed term, it can be declared and paid each time according to the amount of pollutants discharged.
• Taxpayers who declare and pay the tax on a quarterly basis shall hand in the declaration and payment of tax to the tax authorities within 15 days from the end of the quarter. Taxpayers who declare and pay the tax each time according to the amount of pollutants discharged shall hand in the declaration and payment of tax to the tax authorities within 15 days from the date when the tax is payable.

5. Other requirements

• The specific amount of tax shall be determined and adjusted by the people’s governments of individual provinces, autonomous regions and municipalities directly under the Central Government.
• The amounts of Environmental Protection Tax in majority of provinces are equivalent to the former standards of Pollutant Discharge Fee, but some are raised, such as those in Guizhou Province and Guangdong Province.

China Minimum Wage Standard Update - November 2017

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