This Year, 28 Changes to China's Economic and Trade Laws

[Asia Economy Reporter Park So-yeon] With the implementation of 28 newly enacted and revised economic and trade-related laws in China starting this year, many changes are expected, prompting companies to exercise caution.

The Korea International Trade Association's Beijing branch, in collaboration with the Chinese law firm Jingdu (Kyoto), published a report titled 'Major Changes in China's Economic and Trade Regulations in 2021' on the 10th.

China's first-ever "Civil Code" came into effect on January 1.

The Civil Code is characterized by actively reflecting social changes, such as formally recognizing digital documents, including online contract formation, as written forms.

Notably, for the first time, it established a system for mental damages compensation for infringement of personal rights, specifying that if one party's breach causes serious mental harm by infringing on the other party's personal rights, the injured party can claim breach of contract liability along with mental damages compensation.

A new "Cosmetics Supervision and Administration Regulation" aimed at strengthening consumer goods quality control also took effect on January 1.

Comprising more than twice the number of provisions compared to the previous "Cosmetics Hygiene Supervision Regulation," with 80 articles, it stipulates more detailed and stringent management.

Imported cosmetics must provide certification documents related to production quality management of overseas manufacturers and proof of product manufacturing location and origin for products sold in the market during registration and reporting.

If it is difficult to submit origin documents for products manufactured for export to China, relevant research and experimental data conducted targeting Chinese consumers must be submitted.

Additionally, from an environmental protection perspective, the "Notice on the Comprehensive Ban on the Import of Solid Waste," enacted last year, came into effect on January 1, banning the import of all types of solid waste. The export of solid waste generated within bonded zones to outside bonded zones is also restricted.

Furthermore, throughout this year, purchasing electric vehicles, plug-in hybrid electric vehicles (PHEVs), and fuel cell vehicles will be exempt from vehicle purchase tax.