On 19 January 2019, the MOJ issued a notice permitting joint venture law partnerships between qualified Mainland law firms and law firms from the Hong Kong and Macao throughout the mainland China, with effect from 1 March 2019. Joint venture law firms may engage in civil and commercial litigation and non-litigation legal affairs but not criminal or administrative litigation, and they are subject to restrictions on the scope of their practice and other applicable laws and regulations and rules on professional ethics and discipline. See Legal update, MOJ permits partnerships between Mainland and Hong Kong and Macao law firms nationwide.

On 15 March 2019, China enacted the Foreign Investment Law (FIL), with effect from 1 January 2020. The new law becomes the unified, basic law regulating Chinese foreign investment matters, repealing and replacing China's existing three foreign investment laws that were in place for decades. See Legal update, China enacts unified Foreign Investment Law.

On 18 March 2019, the State Council amended the Regulations on the Administration of Technology Imports and Exports to remove some of the restrictions on inbound technology transfers by foreign transferors. The revisions coincide with the US-China trade dispute and the passage of the FIL. See Practice note, Regulation of technology import: China.

On 16 and 17 March 2019, the MOF and SAT jointly issued a pair of announcements that help clarify how China's tax authorities will determine the tax residency status of expatriates under China's newly amended Individual Income Tax Law. See Legal update, MOF, SAT clarify determination of tax residency status of expatriates.

On 30 June 2019, the NDRC and MOFCOM jointly released China's revised nationwide negative list for foreign investment, together with a separate revised list applicable in China's pilot free trade zones. The revisions show China continuing its reform and opening-up policy to foreign investment. The two lists are further synchronised, allowing wider foreign participation in sectors including mining, culture, telecoms and transportation. Both lists took effect 30 July 2019. See Article, China issues 2019 nationwide and FTZ negative lists.

On 26 August 2019, the NPC Standing Committee amended the Drug Administration Law, with effect from 1 December 2019. The amendments significantly reorganise and expand the law to cover every phase in the research and development, registration, production, sale, use and storage of drugs and are aimed at encouraging the development of new drugs, lowering drug prices and combating counterfeit and substandard drugs. See Legal update, NPC Standing Committee amends Drug Administration Law.

On 26 August 2019, the NPC Standing Committee amended the Land Administration Law, with effect from 1 January 2020. The amendments allow collectively-owned land to be transferred or leased to individuals and organisations (besides famers) for industrial and commercial construction purposes, and further transferred or assigned to third parties. See Legal update, NPC Standing Committee amends Land Administration Law and our updated land note for details.

On 26 October 2019, the NPC Standing Committee enacted the Encryption Law, with effect from 1 January 2020. The law is China's first top-tier legislation governing encryption and helps further flesh out the emerging security assessment and certification requirements under the Cybersecurity Law. See Legal update, China enacts Encryption Law.

On 22 November 2019, the NDRC and MOFCOM jointly issued the 2019 negative list for market access applicable to foreign and domestic investors nationwide. Investment in industry sectors not contained in the 2019 list is permitted without administrative approval, subject to applicable registration and record-filing requirements. Local governments are prohibited from imposing separate market access barriers, including regional negative lists and approval restrictions, that are not contained in the 2019 list, except for temporary administrative measures issued at the provincial level and approved by the State Council. See Legal update, NDRC and MOFCOM issue 2019 market access negative list.

On 31 December 2019, China published the long-awaited Regulations on the Implementation of the Foreign Investment Law and the Measures for Foreign Investment Information Reporting, both with effect from 1 January 2020. We covered draft bills of these in Legal updates, China circulates draft FIL implementing regulations for public consultation and MOFCOM circulates draft measures on foreign investment information reporting. Stay tuned with us for more information on the impact of the enacted versions.