"We expect 2023 to be a year of bringing the AML amendments into practice. Practitioners and the business community are eyeing the issuance of implementing rules on, to name a few, safe harbor, stop-the-clock, and the new merger filing threshold. We also expect further reconciliation in AML enforcement. There will be some interesting developments in the interplay between the national anti-monopoly authority and the judiciary. The State Administration for Market Regulation (SAMR) is mandated to formulate rules that will apply to court cases, while the Supreme People's Court (SPC) is proposing new judicial interpretations that will create substantive rules. The People's Procuratorates are now also on the stage as a force in bringing public interest litigation. It will be fascinating to see how these (potentially) different views develop and are reconciled and how competition enforcement will evolve. We also expect a further reduction in domestic trade barriers through the fair competition review process and anti-administrative monopoly enforcement as the administration doubles down on economic recovery."

Fay Zhou, Linklaters, Beijing

"In 2023, the SAMR will consolidate its enforcement teams by finalizing its new staff hirings and evaluating its recent merger review delegation to a number of provincial antimonopoly regulators. In parallel, the SAMR will finalize and enact various amendments to its implementing regulations to align them with the amended AML. As these activities subside, we can expect increased enforcement activities, especially in sectors which are visible and prone to have a direct impact on the lives of ordinary people, including life sciences, agriculture, and food & beverages, and sectors dominated by private companies such as software development. 2023 also could see an important increase in private antitrust litigation. The new judicial interpretation being drafted by the SPC should be enacted in 2023, lowering the burden of proof to bring a successful civil antitrust lawsuit. There may be headline-grabbing antitrust judgments coming our way soon as this more permissive attitude trickles down through the judicial hierarchy."

Adrian Emch, Hogan Lovells, Beijing

"With the AML amendment now in force and substantially all of China's COVID restrictions lifted, we see no obstacles for the SAMR to resume and advance communications and co-operation with its international counterparts and anticipate that the year of 2023 will likely see increasingly active antitrust enforcement from the SAMR and its provincial offices, particularly in sectors concerning people's livelihood such as healthcare, properties, utilities. We also expect the SAMR to finalize most (if not all) of the AML's implementing rules with respect to merger control, unilateral and joint conduct, and administrative monopolies. Further, we should not be surprised if the courts play a more important and decisive role in resolving antitrust disputes under the guidance of the SPC's forthcoming trial rules."

Scott Yu and Frank Jiang, Zhong Lun Law Firm, Beijing

"The PIPL and the DSL have been implemented for over a year now. 2022 witnessed a series of legislative developments on all three of the cross-border data transfer mechanisms stipulated by the PIPL, the cross-border data transfer security assessment, the security certification, and the use of standard contract clauses. We expect this legislative trend to continue in 2023, including the maturation of the procedures for conducting security assessments and some practical solutions in the security certification regime to address the qualifications of certification institutions, the validity period for the certification, and the rules for challenging the results of an unsuccessful certification application. We also expect the standard contract clauses to be finalised in mid-2023, if not earlier. Other data protection regulations such as the draft Regulations on Network Data Security Management, the draft revision of the CSL, and other implementing regulations might also be finalized and come into force in 2023."

Samuel Yang, AnJie Broad Law Firm, Beijing

"Data export will remain a priority of the authorities from both regulatory and enforcement perspectives in the new year. With the grace period for security assessment expiring at the end of February, enforcement will become an imminent concern for companies, especially those that are not able to submit their applications by the deadline. In addition, we expect the authorities to complete the current data export regulatory regime by finalising the standard contract and appointing certification institutions. The authorities may also step up their overall enforcement efforts of the PIPL, which could see some major penalties being handed down by the CAC. On the DSL side, this year may herald the implementation of the data security regime. More sectoral regulators may publish their own data security regulations and standards for multi-level data classification scheme, and we could see the first catalogues of important data coming out."

James Gong, Bird & Bird, Beijing

"In 2022, the focus of China's privacy regulator, the CAC, was to issue detailed rules to implement the cross-border data transfer mechanisms provided under the PIPL, namely the security assessment, security certification, and the standard contract. With respect to the security assessment, the CAC released measures specifying the scope of entities that must complete the procedure to transfer data overseas, as well as guidelines to assist companies to prepare the related application materials. Rules on the standard contract have not yet been finalized, though the CAC released the draft provisions that we expect will be finalized in 2023. Similarly, we also have not seen the full picture on the requirements regarding security certification. While the National Information Security Standardization Technical Committee (TC 260) released multiple guidelines or draft guidelines on certification in 2022, it is still not clear how the procedures will be implemented by qualified certification bodies."

Luo, Yan, Covington & Burling, Beijing

"In the digital sector, we expect a shift in focus toward algorithm compliance. In addition to various CAC regulations governing algorithms, the amended AML includes a new clause which forbids undertakings from conducting illegal monopoly activities by means of algorithms. Platform giants worldwide have harmed the interests of both merchants and consumers by leveraging competitive advantage through algorithms developed from big data, and China's internet platforms are not an exception. Ironically, big data are generated through voluminous transactions between merchants and consumers. We expect the authorities to apply the new clause to help prevent information dominance and abuse against merchants and behaviour-based price discrimination against consumers."

David Pan, Llinks Law Offices, Shanghai

"While policies encourage internet platforms to empower the real economy, they are expected to face a set of stricter multi-dimensional regulations in 2023. Personal information protection rules will continue be enforced at a more granular level. The regulations will also attempt to go deeper by targeting the algorithms deployed by the platforms as they can create discriminatory outcomes. From the data security aspect, it seems that cybersecurity review clearance will become a precondition for IPOs of platforms. For platforms that operate in multiple jurisdictions, the outbound data transfer rules will likely bring about a significant impact on data flow and IT configurations."

Calvin Chiu, Dentons, Beijing

"In accordance with the Opinions of the Central Committee of the Communist Party of China and the State Council on Building Fundamental System of Data to Make Better Use of Data Factors (20 Key Measures), the National Development and Reform Commission and related authorities will enact relevant rules for data ownership identification and data utilization in 2023. The rules are still at the framework level, without many details on implementation, and we expect that implementing rules on the 20 Key Measures and personal information protection will be promulgated this year to flesh out and clarify data ownership and utilization to fully exploit the value of data and facilitate the digital transformation of enterprises."

Cai, Peng, Zhong Lun Law Firm, Beijing

"We are all suffering collective whiplash after the abrupt end to not only COVID-zero but to virtually all COVID controls, and what appears to be a much more business-friendly tone from government. Global PE funds already seem to be responding favourably and 2023 is likely to see a resurgence of inbound investment. But even as regulators introduce measures to attract new investment, regulatory complexity will remain a strong theme for the year, such as with more active enforcement of PIPL and other data security and privacy rules. National security scrutiny of cross-border investments will continue in China and elsewhere, but we will probably see new interest among SOEs and private companies in China in overseas assets and a more active outbound market."

Paul McKenzie, Morrison Foerster, Beijing and Shanghai

"Seeking co-operation in a fragmented world, the theme at Davos in 2023 also perfectly describes the goals of the Chinese government if it wants to continue to use FDI to boost its economy. To achieve that goal, the government is expected to continue its open-door policy by further shrinking and adding clarity to the Negative List, to effectively address deficiencies in implementing the Foreign Investment Law, to offer more tax and other incentives, and to further protect intellectual property rights. In short, the Chinese government will redefine itself to the world after waking from its three years' fight against the virus. Foreign investors will likely see more opportunities in advanced manufacturing sectors, modern services, energy conservation, and emission reduction businesses, as well as region-specific development efforts. Although success in investment by foreign investors can never be guaranteed, it can be guaranteed that there will be more and better opportunities for foreign investment in China in 2023."

Vincent Wang, Global Law Office, Shanghai

"The removal of Zero-COVID restrictions may spark further interest in China M&A transactions, as it will be practically easier for investors to complete negotiations and get deals done, and we may see further policies incentivising the manufacturing sector to rejuvenate growth in particular provinces and regions. However, we also anticipate broader application of the national security review (NSR) regime, including strengthening the monitoring of foreign investments in key sectors and key regions and supervising the implementation of NSR decisions. Private equity funds may see improved management and controls in 2023. Proposed rule changes include minimum investments by the general partner and other officers in the fund manager, enhanced track record requirements for controllers and key managers, and additional compliance requirements for foreign fund managers. We also expect to see the rise of global depositary receipts as one of the main channels for mainland Chinese listed companies seeking to raise funds on overseas capital markets."

John Xu, Linklaters, Shanghai

"We expect the implementing regulations for the Export Control Law will be promulgated in the first half of 2023 and customs authorities and the Ministry of Commerce of China to initiate more investigations in accordance with the Export Control Law and its forthcoming regulations. In addition, the implementation of the Anti-Foreign Sanctions Law (AFSL) by the Ministry of Foreign Affairs will become normalized. In 2023, more foreign individuals and entities may be added onto the AFSL List, and some civil litigation may be brought by companies, relying on the AFSL, against their business partners for implementing foreign sanctions. Multinational corporations are advised to devote more resources to strengthen or update their export control and sanctions compliance program in China."

Ren, Qing, Global Law Office, Beijing

"2023 could see the adoption of a major amendment to the Company Law, following circulation of a second review draft at the end of 2022. Once implemented, the amended law will significantly impact foreign invested and domestic companies in China. If a limited liability company has more than 300 employees, the Board of Directors or the Supervisory Board must, for the first time, include employee representatives. A new Audit Committee within the Board of Directors may, on the other hand, replace the traditional Supervisors. Another noteworthy change is that where a shareholder fails to fully contribute subscribed capital, or tries to withdraw its contribution, the 'responsible' directors, supervisors and other senior managers would bear joint and several liability, which could substantially increase their personal exposure if interpreted broadly. Apart from the eye-catching draft Company Law amendment, we also expect some timely business friendly investment regulations and stimulus packages after three years of Zero-COVID paralysis."

Dr. Falk Lichtenstein, CMS China, Beijing

"2022 was a challenging year for corporate lawyers in China. Cross border deals dropped off dramatically as China's self-imposed isolation together with geo-politics greatly reduced interaction. China's policy makers are now prioritizing economic development and based on these regulatory winds of support, coupled with strong pent-up demand from both Chinese and international enterprises to re-engage or even to wrestle with issues that have been largely left to fester, China's economy will likely bounce back strongly in 2023. Headquarters should be aware that 2023 is one year closer to the expiry of the transitional period under the Foreign Investment Law on 1 January 2025. Joint ventures and WFOEs will need to update their internal governance structures before the deadline, and parties to joint venture contracts in particular may wish to get an early jump on negotiations with their business partners, while keeping a close eye on the progress of the proposed amendment to the Company Law."

Mark Schaub, King & Wood Mallesons, London

"We expect significant headway in the anti-money laundering space in 2023. China's central bank, the People's Bank of China (PBoC), may accelerate its amendment to the Anti-Money Laundering Law and its supplemental rules, together with an ongoing legislative focus on client due diligence, client data maintenance, and the reporting of large-amount and suspicious transactions. In terms of enforcement, PBoC will continue its growing attention on the dual-penalty system, and thus we may witness ever-increasing regulatory penalties and soaring fines in 2023 on both institutions and individuals, especially commercial banks and third-party payment institutions. We also expect to see an overhaul of the banking and finance regulatory regime, especially the promulgation of the Financial Stability Law to empower financial risk prevention and resolution, the long-awaited amendment to the Commercial Banking Law, the Banking Supervision Law, and specific regulatory rules to provide more clarity on banking supervision and to guide the practice of market players."

Yang, TieCheng, Han Kun Law Offices, Beijing

"We expect that Chinese capital markets will be further opened to international investors in 2023. In the primary market, we foresee growth through the issuance of RMB-denominated bonds, that is, the so-called Panda Bonds, in the Chinese interbank bond market and mainland stock exchanges following issuance by the PBoC and SAFE of a uniform rule applicable to foreign exchange matters relating to Panda Bonds in both markets. In the secondary market, we expect growth in variety of ways, not only in the stock markets but also in the bond markets, through the QFII/RQFII, CIBM and Stock/Bond Connect mechanisms, after regulators paved the way by consolidating the applicable rules and guidelines with an aim to encourage the inflow of international capital."

Zhang, Xin, Global Law Office, Beijing

"As this will be the first post-COVID year, it is not difficult to expect solid economic growth in 2023, and we anticipate the financial sector will both assist and benefit from such growth. First, we expect the use of FINTECH, such as big data, AI, and other technologies, to support innovation in the sector, including in the field of insurance, among others, transforming the core business system of insurance with the Internet of Things architecture. Second, foreign investment in the financial market will continue to open, expand, and diversify, and regulatory approval for market access to the sector will accelerate. Third, various laws and regulatory rules in the financial area are likely to be issued and revised in 2023, including, for example, the Financial Stability Law, the Anti-Money Laundering Law, management rules on basic financial infrastructures, banking loans and financing rules, trust company management rules, and various implementing rules for the Futures and Derivatives Law."

Ren, Zhiyi, Fangda Partners, Shanghai

"We expect 2023 to be a busy year of legal developments in the IP sector. We anticipate some movement on revising the implementing regulations for the Patent Law, the release and implementation of revised Patent Review and Examination Guidelines, and possible revisions to the IP provisions of the AUCL, but we are more bullish on significant developments in the trademark space. A new draft Trademark Law was circulated in mid-January and we could see another round of revisions before the end of the year as well. This most recent draft has introduced some big changes, including enhanced tools to address bad faith filings and the introduction of a 'use in commerce' requirement for the maintenance of trademark registrations in China. With the current draft, together with the release of the Regulations on the Supervision and Management of Trademark Agents in late 2022, we also expect more oversight over trademark agencies, with increased enforcement and sanction activities targeting those entities that support trademark pirates and other bad actors."

Scott Palmer, Perkins Coie, Beijing

"Given the challenges from international economic and political dynamics and China's recent pandemic policies, the years of 2023 to 2025 will be critical for achieving China's first-stage goals as set forth in the Guidelines for Building a Powerful Intellectual Property Country (2021-2035). China amended its four IP laws during 2019-2021, aiming to further foster innovation, better utilize IPR, and build a more favourable business environment by reinforcing IP protection. Subsequent years are expected to be the experimental stage for implementing the amendments, while China simultaneously continues its legislative efforts. China released draft amendments to AUCL in November 2022 and the Trademark Law in January 2023 for public consultation. These newly proposed amendments demonstrate that China endeavours to promote and implement more practical IP protection measures, and we therefore remain optimistic about IP practice in China over the coming year."

Aggie Liu, Baker McKenzie FenXun, Beijing

"2023 will be a year to seek economic recovery in China after the pandemic era. Pending changes to the IP laws will reflect this chief goal, by both clearing roadblocks and paving infrastructure. The proposed amendment to the Trademark Law, as may be seen in the second review draft, aims to further reduce malicious registrations and strengthen the requirements of good faith. The long overdue implementing rules for the Patent Law will focus on facilitating implementation by enhancing the protection of industrial right holders and encouraging patent and technology transfers. It is also worth mentioning the emerging protection of data assets. We are seeing new concepts such as 'commercial data' in the proposed amendment to the AUCL, together with judicial precedent relating to the protection of data asset rights in NFTs, both of which signal an improved judicial infrastructure this year against the backdrop of a more digitalised economy."

Kevin Duan, Han Kun Law Offices, Beijing

"China dramatically changed its Zero-COVID policy at the end of 2022, and with the ease of restrictions we expect to see more matters relating to international mobility as personnel renew cross-border work or take up international assignments. Companies should keep an eye out for developments in visa procedures and requirements, changes with respect to personal income tax applicable to foreigners, and the enforcement by tax authorities of permanent establishments formed by sending personnel to work in China. We also expect to see more disputes in the high-tech space involving infringements of trade secrets and restrictive covenants by key former employees as the labour market continues to tighten and competition intensifies. Courts have taken a more balanced approach in recent cases, as opposed to the former, heavily pro-employee approach in this kind of dispute, and with the challenges in the overall economic environment faced by many companies, this trend may well continue into 2023."

Johnny Choi, DLA Piper, Beijing and Hong Kong

"The amendments to the Law on the Protection of the Rights and Interests of Women, which add important new protections in relation to equal employment and protections against sexual harassment, take effect on 1 January 2023. The newly amended law provides various channels for female employees to protect their rights, including civil claims, public interest litigation by prosecutor's offices, and labour audits and administrative enforcement actions by local labour authorities. Companies can expect to see more sexual harassment complaints being brought against managers for inappropriate conduct and a greater willingness by their employees to seek remedial action. Another likely trend involves increased legal protection and enforcement for gig workers. The government has issued various rules over the past two years signalling an increased focus on the rights and interests of gig workers, such as guidance on work injury insurance coverage, union representation, criteria for the right to claim de facto employment, and other issues."

Jonathan Isaacs, Baker & McKenzie, Hong Kong

"The government launched a series of rescue measures to cope with liquidity deflation in the real estate sector in 2022, including loan programs by policy banks to enable developers to guarantee delivery of first-hand housing to individual buyers who paid the purchase price before construction was completed, rescue funds by local governments and supported by asset management companies to stabilize the distressed real estate market, local rules by municipalities to permit title transfers of mortgaged housing to facilitate second-hand housing transactions, pilot corporate income tax exemption and deferment policies for infrastructure REITs, and local rules and planning policies by major cities such as Beijing and Shanghai to support urban renewal. In 2023, we expect to see many of these measures extended, further refined, and broadly promoted to drive a new round of investment growth and bring China's real estate market to a turning point of stabilization and recovery in 2023."

Nancy Zhang, JunHe, Beijing

"2022 was a difficult year for many real estate developers and investors, but the market expects a strong recovery in 2023. With supportive financing measures promulgated by the PBoC in November 2022, more real estate developers will complete and deliver their long-delayed projects. For real estate investors, REITs, new infrastructure projects, and long-term rental apartments are worthy of further exploration. The REITs pilot program may expand to include new underlying assets such as renewable energy, new infrastructure and irrigation works, and even long-term rental apartment and commercial properties, which provide widened exit options for investors and will fuel transactions. Investors and developers will also want to pay attention to the on-going real estate tax reform. Although in March 2022 the reform pilot program was postponed due to the prolonged stress in the real estate market, the pilot program might restart in 2023, and Shenzhen might become the next pilot city after Shanghai and Chongqing."

Stephen Lin, Fangda Partners, Shanghai

"In 2022, we saw a range of new legislation, judicial interpretations and guiding cases, a surge in the use of online hearings due to the pandemic control measures and increasing difficulties created by the data transfer regime on the resolution of cross border disputes. We expect those trends to continue in the coming year. 2023 may see the long-awaited new Arbitration Law, new amendments to the Civil Procedure Law, and further judicial guidance on thorny issues in commercial litigation and arbitration. While the pandemic control measures will ease in 2023, courts and practitioners will no doubt continue to embrace online hearings for the convenience and efficiency. The data transfer regime has created significant difficulties in evidence collection and production in cross border disputes and we expect to see more and more cases encountering such difficulties but there will be no easy solution to those issues."

Ye, Weina, Herbert Smith Freehills Kewei Joint Operation Office, Shanghai

"The economic slowdown, woes in the property sector, and disruptions caused by the pandemic last year will lead to a surge in disputes involving Chinese parties for the foreseeable future. Digital assets disputes are also expected to rise as investors and businesses accustomed to investing in traditional assets continue to diversify into other ventures and navigate through unfamiliar digital territories. Chinese parties who traditionally preferred non-confrontational and informal means for resolving disputes are more open to engaging in a formal dispute resolution process, particularly, international arbitration. The new legislation in Hong Kong allowing for outcome related fee arrangements for arbitration and related court proceedings will provide greater flexibility and incentives for clients, especially those with cash-flow negatively affected by COVID-19, to pursue meritorious claims in Hong Kong. The highly anticipated new regime will help Hong Kong maintain its position as one of the most popular arbitral seats in the world for resolving China-related cross-border disputes."

Kevin Hong, Norton Rose Fulbright, Hong Kong

"In the past year, efforts to amend the Company Law have been in full swing. The consultation drafts contain several proposed revisions that are likely to lead to future disputes, including provisions on the personal liability of directors, supervisors, and senior managers for intentional or grossly negligent acts committed in the course of performing their duties, the liability of shareholders for failing to contribute subscribed capital in full and on time, for unlawful capital reductions, and for contributing unpaid capital where a transferee fails to contribute, and so on. Further, the reform of the basic rules on companies' domicile, dissolution and liquidation will potentially affect future enforcement strategies. The contemplated amendment leaves room for interpretation in judicial practice, and we look forward to seeing its impact in future court cases."

Liu, Jing, Han Kun Law Offices, Beijing

"The revision of the Sports Law in 2022 set up, for the first time, the sports arbitration regime, which starts a new chapter in the development of the sports arbitration industry in China. To implement the sports arbitration regime, the General Administration of Sport of China, China's sports regulatory agency, issued arbitration rules pursuant to the Sports Law. The implementing rules entered into effect on 1 January 2023, together with the amended Sports Law. We expect the China Sports Arbitration Commission, the country's national sports arbitration organization, to be formally established and begin to officially accept cases involving sports-related disputes in 2023. The Commission will play an important role in the resolution of sports-related disputes at home and abroad."

Zhu, Qimin, Han Kun Law Offices, Beijing