Published by ChinaMNC · Yongxing

China's State Council Reviews AI+ Initiative, Teacher Law, and Price Law: Key Takeaways for Foreign Founders

A State Council executive meeting on October 16 reviewed progress on the 'AI+' initiative and discussed draft revisions to the Teacher Law and Price Law. For foreign founders operating in China, these updates signal regulatory trends in AI development, pricing practices, and legal compliance.

China's State Council Reviews AI+ Initiative and Legal Reforms

On October 16, Premier Li Qiang chaired an executive meeting of the State Council to review progress on the "AI+" initiative and discuss draft revisions to the Teacher Law and the Price Law. The meeting also approved a decision to amend and repeal certain administrative regulations. For foreign founders registering or operating a company in China, these developments offer important signals about the regulatory environment and compliance priorities.

AI+ Initiative: Focus on Application and Safety

The meeting emphasized that artificial intelligence is a key variable shaping future development. It called for advancing the "AI+" initiative by leveraging China's comprehensive industrial system, rich application scenarios, and strong engineering capabilities. Key points include:

• Application-driven innovation: The focus is on using real-world applications to drive technological innovation, deepening and expanding the "AI+" initiative.
• Strengthening foundations: Efforts will be made to enhance technical research and algorithm innovation, promote synergy between computing and electricity, and increase the supply of high-quality data.
• Empowering the real economy: Emphasis on strengthening supply-demand alignment, encouraging joint research and development, advancing pilot testing, and cultivating more application scenarios to transform AI technology into real productivity.
• Balancing development and security: The meeting stressed the need to coordinate development and security, implement sector-specific and tiered policies, strengthen risk assessment, and uphold the bottom line of AI safety.

For foreign founders in AI-related fields, these points suggest that China continues to encourage AI applications, particularly those integrated with the real economy. However, companies should also prepare for risk assessment and safety compliance requirements.

Teacher Law Revision: Implications for Education Sector

The meeting discussed and principle-approved the draft revision of the Teacher Law, which will be submitted to the Standing Committee of the National People's Congress for review. The revision aims to strengthen the protection of teachers' treatment and rights, reduce non-teaching burdens, enhance social public services for teachers, and safeguard their professional dignity and lawful rights. It also seeks to cultivate a high-quality, professional teaching workforce by improving teacher education systems and reinforcing ethics.

Although this law primarily affects the education sector, foreign investors in education or training services should monitor how these changes may influence teacher employment practices and operational standards.

Price Law Amendment: Curbing Unfair Price Competition

The meeting also discussed and principle-approved the draft amendment to the Price Law, which will be submitted to the NPC Standing Committee. The amendment aims to adapt to new circumstances by improving price governance mechanisms, refining government pricing procedures, and clarifying standards for identifying unfair price practices and related legal liabilities.

Specific measures include:

• Govern low-price disorderly competition: Address low-price disorderly competition in accordance with laws and regulations, and improve supporting rules such as industry cost investigations and prohibitions on low-price dumping.
• Strengthen price enforcement: Enhance price law enforcement and supervision.
• Regulate platform economy pricing: Continue to regulate price competition in the platform economy, guide enterprises to enhance product and service value, and foster a fair and orderly market environment.

For foreign founders, especially those in e-commerce, retail, or platform-based businesses, these changes indicate tighter scrutiny of pricing practices. Companies should review their pricing strategies to ensure compliance with evolving rules on low-price competition and platform pricing.

Amendments and Repeals of Administrative Regulations

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 Limits of Liability for Maritime Passenger Transport between Ports. While these specific changes may not directly affect most foreign founders, they reflect ongoing regulatory streamlining.

Practical Guidance for Foreign Founders

Based on the meeting's outcomes, foreign founders should consider the following:

• AI sector: Leverage opportunities in AI application development while ensuring compliance with safety and risk assessment requirements.
• Education sector: Monitor the Teacher Law revision and its potential impact on employment and service standards.
• Pricing practices: Review pricing strategies to avoid unfair competition, especially in platform economy contexts, and stay informed about upcoming Price Law amendments.
• Regulatory awareness: Keep abreast of amendments and repeals of administrative regulations that may affect your industry.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.