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China

China’s First Negative List for Cross-Border Data Transfer Released by Tianjin Free Trade Zone

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The Tianjin Free Trade Zone in China has released a Negative List outlining data that requires a security review by China’s cybersecurity bureau before being transferred out of the country. This list clarifies compliance requirements for companies operating in certain industries within the free trade zone.


The Tianjin Free Trade Zone has released China’s first data Negative List outlining the types of data that must undergo a security review by China’s cybersecurity bureau to be transferred out of China. While the Negative List maintains previously set thresholds for the volume of data that companies can handle before triggering data export compliance procedures, it also clarifies compliance requirements for companies in the free trade zone operating in certain industries.

The Tianjin Pilot Free Trade Zone (Tianjin FTZ) has released a new Negative List of data that will be subject to certain compliance requirements to be exported.

The China (Tianjin) Pilot Free Trade Zone Data Export Management List (Negative List) (2024 Edition), released by the Tianjin FTZ Management Committee and the Tianjin Municipal Commerce Bureau on May 8, 2024, is the first CBDT Negative List released in China. Ostensibly, data that is not included in the Negative List can be freely transferred out of China, which would significantly ease compliance requirements for companies based in the Tianjin FTZ.

Under China’s Personal Information Protection Law (PIPL) and subsequent regulations, companies that wish to export a certain amount or types of personal information and data outside of China are required to undergo one of three compliance requirements. These are 1) a security assessment carried out by the Cybersecurity Administration of China (CAC), 2) signing a Standard Contract with the overseas recipient of the data, or 3) receiving data export security certification by a third-party agency.

Due to the relatively low threshold for the volume and type of data that can trigger these compliance measures, these regulations significantly increase compliance burdens and hinder normal operations for companies, in particular foreign companies and multinational corporations (MNCs).

In an effort to improve the business environment for foreign companies in China, the CAC has released the Regulations to Promote and Standardize Cross-Border Data Flows (the CBDT Regulations). Among many other measures to facilitate data export, such as the increased data volume thresholds for triggering compliance procedures, these new regulations allow China’s FTZs to implement their own data governance rules, including formulating their own data Negative Lists.

The Tianjin FTZ is the first FTZ in China to release such a Negative List, and it is likely to be followed by more in the near future.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

China

Outlook for China’s Wine Market: Current Trends and Opportunities

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China’s wine market faces challenges like declining consumption and imports, but remains resilient. Adapting to consumer preferences, focusing on quality and sustainability, and using digital platforms for sales are key strategies. Despite setbacks, the market is promising for foreign producers.


Despite challenges such as declining consumption and import figures, China’s wine market remains resilient and promising. Strategic adaptation to evolving consumer preferences, emphasis on quality and sustainability, and leveraging digital platforms for sales are pivotal strategies for success in this dynamic and competitive landscape.

In recent years, China’s wine market has faced significant challenges marked by declines in key metrics such as consumption, imports, and domestic production. These difficulties were further compounded by the disruptions brought about by the COVID-19 pandemic. Despite these setbacks, the market retains its allure, presenting opportunities for foreign wine producers and exporters who are willing to adapt and strategically engage.

As consumer preferences evolve and government policies increasingly emphasize quality and sustainability, understanding these complexities becomes crucial for stakeholders navigating China’s evolving wine landscape. By staying attuned to shifting trends and regulatory developments, stakeholders can position themselves effectively to capitalize on the market’s enduring potential.

The wine sector in China has experienced dramatic shifts over the last two decades, initially reflecting rapid growth and then gradually declining. In the early 2000s, China emerged as a lucrative market for global wineries seeking expansion due to soaring wine imports driven by rising consumer wealth and the perception of wine as a symbol of sophistication. However, per capita consumption peaked around 2012, and imports have since plateaued, with recent years showing significant market contraction. The COVID-19 pandemic exacerbated these challenges, particularly affecting wine sales due to its association with social gatherings, which were restricted during lockdowns.

Following this trend, in 2023, China saw a significant decline in wine consumption, with a 24.7 percent decrease compared to 2022. According to the International Organization of Vine and Wine (OIV), China’s wine consumption has been falling since 2018, averaging a loss of 2 million hectoliters annually.

Nevertheless, China remains the ninth-largest wine-consuming nation worldwide.

Looking forward to 2024, China’s wine market is poised for dynamic activity, delineated primarily by consumption settings: at-home and out-of-home. According to Statista, revenue from wine sales in supermarkets and convenience stores (at-home) is forecast to reach US$9.7 billion. In contrast, revenue generated from wine consumed in restaurants and bars (out-of-home) is expected to be substantially higher, totaling US$17.2 billion. This projects the total revenue from the wine market to reach US$26.8 billion by the end of 2024.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

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Insights and Impact of China’s National Financing Credit Service Platform

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China introduced the National Financing Credit Service Platform to improve financing opportunities for private enterprises. Efforts include streamlining platform development, enhancing credit data mechanisms, and prioritizing high-quality services for all enterprises, especially small and medium-sized ones. The platform aims to increase credit availability and reduce costs for private enterprises.


On January 2, 2024, the National Development and Reform Commission (NDRC) organized a significant conference in Jinjiang City, Fujian, emphasizing innovative development for high-quality growth in the private economy. During this event, the ‘National Financing Credit Service Platform’ was introduced—a nationwide digital infrastructure designed to improve financing opportunities for private enterprises.

Subsequently, on April 2, 2024, the General Office of the State Council unveiled a comprehensive action plan aimed at strengthening financing credit service platforms. The plan focuses on facilitating financing for micro, small, and medium-sized enterprises (MSMEs). Key strategies include streamlining platform development, enhancing credit data mechanisms, and encouraging financial institutions to prioritize high-quality services for all enterprises, with particular attention to MSMEs.

Historically, MSMEs and private businesses have encountered significant challenges in accessing affordable financing. These entities, especially those in the startup or growth phase, often struggle to secure bank loans due to their lack of collateral and credit data. Financial institutions that provide credit services rely on scattered and hard-to-obtain credit information, which limits their ability to assess the creditworthiness of these enterprises and extend loans.

To address this issue, China established the National Financing Credit Service Platform. This platform offers four key services:

Meanwhile, China aims to optimize its national integrated financing credit service platform network in several ways. Efforts include improving information collection and sharing platforms nationwide, integrating the national financial credit database, streamlining redundant local platforms by the end of 2024, and expanding information collection to cover major enterprise personnel, qualifications, and trade activities. Local platforms are also encouraged to develop specialized modules for emerging industries, green development, key industrial and supply chains, and agricultural sectors.

Currently, the National Financing Credit Service Platform has fostered a new inclusive finance model based on credit information. It provides comprehensive financing services for small and medium-sized enterprises, especially private ones. Going forward, the platform aims to strengthen financial support for private enterprise development by enhancing efficiency through credit information sharing and digital technology applications. This will increase credit availability, reduce costs, and broaden access for private enterprises.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

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A Comprehensive Approach to Addressing Recruitment Risks in China

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Recruitment in China comes with risks such as non-compliance with labor laws and violations of employment equality and personal information protection regulations. Understanding these risks and compliance issues is crucial for businesses. Employers should focus on job qualifications related to position requirements and avoid mentioning unnecessary or discriminatory qualifications in job postings.


Recruitment carries inherent risks. Non-compliance with labor laws, as well as violations of employment equality and personal information protection regulations during the recruitment process, can result in administrative penalties or other legal consequences.  Understanding the relevant risk points and compliance issues is crucial for businesses operating in China. 

Recruitment is a critical function that significantly impacts an organization’s success. Beyond filling vacant positions, it serves as an opportunity to showcase company culture and enhance the organization’s overall image. However, recruitment also comes with inherent risks, and being aware of compliance issues is essential.

In this article, we explore risk management strategies for five common activities within the recruitment cycle, including job posting, resume collection, interview, background check, and offer issuing.

To ensure compliance and promote fairness, employers should avoid mentioning certain job qualifications in their postings. Below are some qualifications that are unnecessary or should not be included:

*Notice on Further Regulating Recruitment Activities and Promoting Equal Employment for Women states that in the process of developing a recruitment plan, posting recruitment information, and employing personnel, all employers and human resources service agencies are prohibited from imposing gender restrictions (except for job scopes specially prohibited for female employees) or give priority to certain gender.

** The Employment Promotion Law of the People’s Republic of China states that no employer, when recruiting employees, shall refuse to employ a job candidate on the basis that he/she is a carrier of any infectious pathogen. However, no carrier of any infectious pathogen that has been proven by the medical examination shall enter into any employment that is prone to facilitate the spread of infectious diseases and is therefore forbidden by laws, administrative regulations, or the public health administration department of the State Council before he/she is cured or eliminates the suspicion of carrying such infectious pathogen.

When posting recruiting information, enterprises are recommended to focus on job qualifications related to position requirements, such as skills, certificates, major, and work experiences, and avoid describing requirements that are related to individual characteristics like age, height, gender, religious belief, or hometown.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

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