Published by ChinaMNC · Kaifu

China’s State Council Signals Regulatory Shifts on AI, Pricing, and Teacher Law: What Foreign Founders Need to Know

A State Council executive meeting chaired by Premier Li Qiang on October 16 reviewed the progress of the “AI+” initiative and discussed draft amendments to the Teachers Law and the Pricing Law. For foreign founders operating in China, these developments could affect AI deployment, pricing practices, and regulatory compliance.

Overview of the State Council Meeting

On October 16, Premier Li Qiang chaired an executive meeting of the State Council. The meeting reviewed progress on the “AI+” initiative, discussed a draft revision to the Teachers Law and a draft amendment to the Pricing Law, and approved a draft decision to amend and repeal certain administrative regulations. For foreign founders with companies in China, these discussions may signal upcoming regulatory changes that could impact business operations, particularly in technology and pricing practices.

Advancing the “AI+” Initiative

The meeting highlighted artificial intelligence as a key variable shaping future development. It emphasized leveraging China’s comprehensive industrial system, diverse application scenarios, and strong engineering capabilities to drive technological innovation through practical applications. The “AI+” initiative will be deepened and expanded.

Key measures mentioned include:

• Strengthening the development foundation by enhancing technical research and algorithm innovation.
• Promoting the coordination of computing power and electricity.
• Increasing the supply of high-quality data.
• Addressing weaknesses and building on strengths.
• Focusing on empowering applications, especially in the real economy, by improving supply-demand connections.
• Encouraging joint research and development, advancing pilot testing, and expanding application scenarios.
• Balancing development and security through industry-specific, tiered, and classified policies.
• Strengthening risk assessment and safeguarding AI security.

For foreign founders in AI-related fields, these points suggest that China continues to prioritize AI development with a focus on real-economy applications and risk management. Companies may find opportunities in joint R&D, pilot testing, and scenario development, but should also prepare for sector-specific security regulations.

Draft Revision to the Teachers Law

The meeting discussed and principle-approved a draft revision to the Teachers Law, which will be submitted to the Standing Committee of the National People’s Congress for deliberation. The revision aims to strengthen guarantees for teachers’ treatment and rights, reduce non-teaching burdens, enhance social public services for teachers, and protect their professional dignity and lawful rights. It also seeks to cultivate a high-quality, professional teaching workforce, improve the teacher education system, and promote a social atmosphere of respecting teachers.

While this law primarily affects the education sector, foreign founders in education or training businesses should monitor how these changes might influence teacher employment and qualification requirements.

Draft Amendment to the Pricing Law

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

The meeting called for:

• Governance of low-price disorderly competition in accordance with laws and regulations.
• Improving supporting rules such as industry cost investigations and prohibiting low-price dumping.
• Strengthening price enforcement and supervision.
• Regulating price competition in the platform economy.
• Guiding enterprises to enhance product and service value.
• Creating a fair and orderly market environment.

Foreign founders, especially those in e-commerce, retail, or platform-based businesses, should review their pricing strategies to ensure compliance with these evolving rules. The emphasis on curbing low-price dumping and regulating platform competition may require adjustments to promotional and discounting practices.

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 4 administrative regulations, including the Provisions on Limitation of Liability for Maritime Passenger Transport between Ports. While these changes may seem technical, they are part of ongoing regulatory streamlining. Foreign founders should stay informed about specific amendments that could affect their industry.

Implications for Foreign Founders

For foreign entrepreneurs registering or operating a company in China, this meeting underscores the importance of staying agile in a evolving regulatory landscape. The AI+ initiative presents opportunities for tech-driven businesses, but with a clear focus on security and real-economy integration. The Pricing Law amendment signals tighter scrutiny of pricing practices, particularly in platform economies. The Teachers Law revision, while sector-specific, may affect education-related ventures. Overall, these developments reflect China’s efforts to balance innovation with regulation and market order.

Foreign founders should consider reviewing their business models, compliance protocols, and pricing strategies in light of these potential changes. Engaging local legal and tax advisors can help navigate the specifics.

Call to Action: For assistance with company registration and operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.

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