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Image: Linnaea Mallette, Energy Transition Wind Turbines
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In early October, amid growing concerns about artificial intelligence (“AI”), the Chinese leadership issued an important document to show its unwavering commitment to AI and other innovative developments. Included in the document is a special message concerning micro, small, and medium-sized enterprises (“MSMEs”) that indicates Chinese leaders’ dedication to helping these enterprises overcome challenges presented by the current AI era. In order to grasp the full extent of this dedication, one needs to understand China’s strong opposition to recent characterizations of the Chinese economy as “K-shaped” and the country’s specific measures aimed at helping MSMEs. Despite these efforts, there are major problems associated with MSMEs that China will need to tackle effectively.Read this article

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October 1, 2026 marks the 77th anniversary of the establishment of the People’s Republic of China and the coming into effect of the country’s revised National Defense Mobilization Law. This is the first revision of this law since it was promulgated in 2010. In response to concerns that the revision may be a signal of China’s preparation for “a long-term, large-scale war”, a spokesperson for China’s Ministry of National Defense urged concerned parties not to “overinterpret” the revision. This response, however, is unlikely to put foreign investors’ minds at ease. The revised law now authorizes the Chinese government to expropriate “civilian resources” under broadly defined circumstances. This change brings the “expropriation” provisions under China’s Foreign Investment Law into the spotlight. It is now incumbent upon Chinese authorities to provide detailed explanations of these provisions in order to boost foreign investors’ confidence.Read this article

Images: Linnaea Mallette, Divergent Direction Signpost Drawing;
Basudev Shrestha, Communist Flag
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A new set of rules allowing China to tighten its exit controls over Chinese scientific, technological, and other professional talent will come into effect on September 15. Not only will these rules directly affect Chinese talent currently living in China and those returning to the country, but they may also have significant implications for foreign talent planning to pursue their careers in China. China’s new regulatory changes contain complexities and ambiguities that all talent, be they Chinese or foreign, cannot ignore, as such talent may, due to these changes, need to reconsider their plans in China. China’s potential loss of such talent could be a gain for other countries that are committed to advancing their scientific and technological developments while at the same time circumnavigating current geopolitical turbulence to provide safe harbor for such talent and their families.Read this article

In mid-July, when the World Artificial Intelligence Cooperation Organization was officially established, Kazakhstan stood out among the 29 founding members. This organization is generally perceived as a China-led alliance aimed at shaping global AI governance in line with the Global South’s interests to counterbalance similar Western initiatives such as Pax Silica, the U.S.-led technology alliance that also counts Kazakhstan as a member. This complicated situation, together with ways in which China’s enforcement of its new law on ethnic unity may strain Sino-Kazakhstan relations, will sharpen China’s focus on its options in Central Asia. The growing ties between Kyrgyzstan and China signal that Kyrgyzstan is likely to outperform Kazakhstan to become a leading force supporting China to advance its interests in the region or even beyond. This, however, presents a challenge to Kyrgyzstan.Read this article

Images: Okan Çalışkan, Law and Justice Concept;
Peter Griffin, Money
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The Supreme People’s Court of China’s landmark judgment that ordered an infringer of technological secrets to pay the owner of these secrets nearly RMB 640 million as damages was recently selected as a Guiding Case. However, the guiding principles of this case do not focus on this exceptionally high amount of damages, but primarily concern (1) the circumstances under which an alleged infringer has the burden to prove that the alleged infringement did not occur; and (2) the additional damages an infringer is required to pay if the infringer fails to perform, within the required time period, the obligations imposed by the judgment. This Guiding Case has significant implications for the implementation of China’s new five-year plan on judicial protection of intellectual property rights.Read this article

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President XI Jinping recently issued instructions on the “high-quality development of philosophy and social sciences” to, according to China’s state-run news agency, “break the hegemony of Western discourse” and enhance China’s “cultural soft power”. President Xi’s instructions were rooted in a speech delivered ten years ago, which led to the recent publication of a handbook outlining the “autonomous systems of knowledge” of Chinese legal studies. Featuring how China’s “original theories” explain topics such as national security and human rights, this handbook will likely serve as an example when other “philosophy and social sciences” disciplines in China explore their ways to set up “autonomous systems of knowledge”. These developments, together with China’s growing population of foreign students, suggest that the country’s cultural soft power could grow rapidly and reshape geopolitics.Read this article

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China’s newly revised law on the use of simplified Chinese characters across the country has, among other requirements, new provisions increasing punishments imposed on parties who violate the law. If the Chinese Communist Party is indeed interested in resolving the “Taiwan issue” through peaceful reunification, the language differences between the two sides of the Taiwan Strait should be addressed. This approach would closely align with the “opinions” enumerated by Xi Jinping during his recent meeting with Taiwan’s Kuomintang Chairperson CHENG Li-wun: “foster spiritual harmony through a correct sense of identity […] with […] Chinese culture”. The revised law does make it possible to create exceptions allowing people in Taiwan, Hong Kong, and Macao to use traditional Chinese characters deeply rooted in Chinese culture. Yet a better and long-term approach is worth considering.Read this article

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To accelerate the country’s AI growth, China has been implementing the “Data Elements ×” Three-Year Action Plan. While the plan is scheduled to be completed by the end of 2026, its “multiplier effect” will, however, continue. This is because China’s newly adopted five-year national economic and social development plan identifies “deepen[ing] the implementation of the ‘Data Elements ×’ Action” as one of the tasks that the country needs to focus on during the period from 2026 to 2030. More importantly, China’s national legislature just passed a new law to render this and other tasks included in the five-year plan—which, despite its significance, is not law—legally binding.Read this article

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China recently took an unprecedented step to issue permits allowing two models of vehicles equipped with “conditional autonomous driving” functions to operate on select roads. This creates a pressing need for unambiguous legal rules to regulate the liability issues that will arise from road safety violations. A new Guiding Case, a new piece of local legislation, and a set of draft national standards currently available for public comments all shed light on this important topic. Chinese automakers and their potential investors should seize the opportunity to provide their comments on the draft national standards, as any failure to comply with these standards, once adopted, will have significant legal implications.Read this article

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During an important meeting held last week, President XI Jinping identified key challenges facing China such as “new changes” related to the “international situation” and emphasized the need to make domestic demand “the main driving force of economic development”. Various legal measures that China has introduced since May 2025 should help private enterprises—important contributors to China’s domestic economy—withstand these challenges. For example, in certain cases where private enterprises cannot pay counterparties compensation in accordance with court rulings, the courts are authorized to take flexible approaches to help these enterprises address their financial issues. Counterparties dealing with such enterprises should understand these approaches to better protect their own legal rights and interests.Read this article

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Since 2020, mainland China has stepped up its legal measures to better tackle the problem concerning fake safety certification documents. Understanding these efforts should reassure those handling a fire in Hong Kong, which killed at least 160 residents of a housing complex, that their commitment to pursue accountability without reservation is matched by a similar commitment on the part of the mainland Chinese authorities.Read this article

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The pioneering guidelines issued by an important arbitration commission in China regarding the use of AI in arbitration will test the commission’s ability to reassure all stakeholders that AI-facilitated arbitration can deliver efficient results without compromising accuracy, confidentiality, and fairness. The test is complicated by the potential for this commission to handle disputes arising from special types of “administrative agreements” signed by private parties and governments. The possibility of having governments participate in AI-facilitated arbitration presents difficult problems.Read this article

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China’s administrative litigation system came into effect in 1990 amidst strong demand for more protection of the legal rights and interests of citizens and private enterprises by enabling them to seek courts’ assistance in reviewing the legality of officials’ decisions. According to China’s Supreme People’s Court, this system has experienced challenges but shown progress over the past ten years. However, more information about a key aspect of the system should be disclosed to strengthen the role of Chinese courts and to align with the goals of a new law.Read this article

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China’s greenlight to allow American ownership of TikTok’s U.S. operations helps address concerns that Chinese ownership of this popular platform for short videos could put millions of U.S. users’ personal information at risk. This deal should alert Chinese leaders that other Chinese companies operating overseas could face similar challenges unless the country demonstrates its commitment to the protection of personal information. Two Guiding Cases recently issued by the Supreme People’s Court provide a glimpse of the judicial application of China’s rules on personal information. More importantly, these two de facto binding cases in China are just the beginning, as revealed by the highest court.Read this article

Image: Mohamed Mahmoud Hassan, Visa Appointment
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Slightly more than a month after creating “K” visas for “foreign young scientific and technological talents”, China’s State Council released a new AI plan. The timing is not coincidental. It reflects gradual steps taken by China to mobilize foreign young talents to help advance the development of AI in the country and the Global South, which is of strategic importance to China.Read this article