Published by ChinaMNC · Huanggang

China Releases 515 National Standards: What Foreign Founders Need to Know

China's market regulator approved 515 national standards covering AI, robotics, safety, and more. Here's how these standards affect foreign founders registering and operating a company in China.

China's New Standards: A Practical Guide for Foreign Founders

China's State Administration for Market Regulation (SAMR) has approved 515 important national standards and national standardization guiding technical documents. These standards span public safety, high-tech, traditional industries, and consumer goods. For foreign founders planning to register or operate a company in China, these standards signal where compliance requirements are heading and what to prepare for.

Key Takeaways for Foreign Founders

• Public safety and data security: New mandatory standards for intelligent connected vehicles (ICVs) and fire safety mean stricter data protection and product safety rules. If your business involves connected vehicles or data, you'll need to comply.
• High-tech and AI: Standards for AI, humanoid robots, and industrial robots set safety baselines and technical specifications. This affects product design, testing, and market access.
• Traditional industries: Standards for ship equipment and aerospace components provide technical benchmarks for manufacturing and safety.
• Consumer goods and education: Updates for paper products and education services may impact product quality requirements and vocational education partnerships.

These standards are not directly about company registration, but they shape the regulatory environment in which your China entity will operate. Understanding them helps you choose the right business scope, plan for certifications, and avoid compliance pitfalls.

Understanding China's Standard System

China's standards are categorized into national standards (GB), industry standards, local standards, group standards, and enterprise standards. National standards are further divided into mandatory (GB) and recommended (GB/T). Mandatory standards are legally binding; recommended standards are voluntary but often used as technical references.

For foreign founders, the key is to identify which standards apply to your products or services. Compliance with mandatory standards is required before selling or using products in China. Recommended standards can influence market acceptance and procurement decisions.

Public Safety and Data Security Standards

The new mandatory standards for intelligent connected vehicles (ICVs) focus on spatiotemporal data security. This means if your company deals with ICV data, you must implement measures to protect data during collection, storage, transmission, and processing. The standards also cover fire safety, detailing rules for fire products and premises management, aiming to refine urban safety governance.

For foreign founders, this implies:

• If you're in the automotive or mobility sector, your data handling practices must meet these mandatory requirements.
• You may need to conduct data security assessments and possibly obtain certifications.
• Your China entity's business scope should include relevant activities, and you may need to apply for licenses related to data processing.

High-Tech and AI Standards

Sixteen national standards were released for AI, humanoid robots, and industrial environment robots, covering AI system safety and robot technical requirements. These standards set safety baselines and unify technical specifications to support high-quality development of the AI and robotics industries.

For foreign founders in these fields:

• Product design and development should align with these standards to ensure safety and interoperability.
• Testing and certification may be required before market launch.
• Consider incorporating these standards into your quality management system.

Traditional Industries: Ship and Aerospace

Twenty-five standards were issued for marine diesel generator sets, marine check valves, and remote operation and maintenance systems for offshore platforms. These provide support for research, safe operation, and green transformation of ships and marine engineering equipment. Twelve standards cover aircraft static converters and terminology for civil aircraft powerplant systems, offering technical criteria for aerospace product design and manufacturing.

If your company manufactures or supplies components in these sectors, adherence to these standards is crucial for market access and partnerships with Chinese firms.

Consumer Goods and Education Services

Twelve standards for paper products (toilet paper, wallpaper, etc.) aim to optimize product performance and quality. Six standards for education services (elderly learning, educational organizations) clarify management systems and service requirements for elderly learners, supporting vocational education brands and promoting Sino-foreign cooperation in vocational education.

For foreign founders in consumer goods, these standards may affect product quality requirements and labeling. In education, there may be opportunities for collaboration in vocational training, but compliance with service standards is necessary.

Implications for Company Registration and Operation

While these standards are not part of the company registration process, they influence your business scope, licenses, and ongoing compliance. Here's what to consider:

• Business scope: Ensure your business scope accurately reflects your activities, especially if they involve regulated areas like data processing, AI, or manufacturing. Some activities require pre-approval or special licenses.
• Registered capital: Standards compliance may require investment in testing, certification, and quality systems. Consider this when determining registered capital, though China has largely moved to a subscribed capital system.
• Licenses and certifications: Mandatory standards often require product certification (e.g., CCC mark) or data security assessments. Identify these early in your setup process.
• Tax and incentives: High-tech enterprises may qualify for tax incentives, but certification often requires compliance with relevant standards. Keep this in mind for tax planning.
• Ongoing compliance: Standards are updated periodically. Build a compliance system to monitor changes and adapt.

Steps for Foreign Founders

1. Identify applicable standards: Research which national standards apply to your products or services. Sources include SAMR announcements and industry associations.
2. Choose entity type: A wholly foreign-owned enterprise (WFOE) is common for foreign founders. If your activities are in restricted sectors, consider a joint venture.
3. Register with SAMR: The company registration process involves name approval, submission of documents (articles of association, investor identification, etc.), and obtaining a business license.
4. Obtain necessary licenses: Based on your business scope, apply for industry-specific licenses (e.g., for data processing, manufacturing).
5. Ensure product compliance: Test and certify products as required by mandatory standards.
6. Maintain compliance: Monitor regulatory updates and adjust as needed.

These steps are general; specific requirements vary by industry and location.

Conclusion

China's new national standards reflect the country's focus on safety, innovation, and quality. For foreign founders, they represent both challenges and opportunities. By understanding and complying with these standards, you can position your China company for success in a regulated market.

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

For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.