Published by ChinaMNC · Daxiang

China's State Council Signals Policy Shifts on AI, Pricing, and Teacher Law: What Foreign Founders Need to Know

A State Council executive meeting chaired by Premier Li Qiang reviewed progress on the 'AI Plus' initiative and advanced draft amendments to the Teachers Law and Pricing Law, plus regulatory housekeeping. Here's what foreign founders operating in China should watch.

State Council Meeting Highlights Policy Direction for Foreign Founders

On October 16, Premier Li Qiang chaired a State Council executive meeting in Beijing. According to the official readout, the meeting heard a report on progress of the "AI Plus" initiative, discussed draft revisions to the Teachers Law and the Pricing Law, and approved a draft decision to amend and repeal certain administrative regulations. For foreign founders registering or running a company in China, these agenda items signal where regulation and support are heading—even though the texts are not yet final.

AI Plus: From Technology Push to Application Pull

The meeting described artificial intelligence as a key variable shaping future development. It stressed that China's approach should build on the country's complete industrial system, rich application scenarios, and strong engineering capabilities. The emphasis was on letting real-world deployment drive technological innovation and on deepening the "AI Plus" initiative.

Specific priorities mentioned include:

• Strengthening the foundation: technical breakthroughs, algorithm innovation, better coordination between computing and power, and more high-quality data supply.
• Focusing on application: connecting supply and demand with the real economy as the priority, encouraging joint research and development, advancing pilot testing, and cultivating more use cases so AI translates into real productivity.
• Balancing development and security: differentiated, industry-specific policies, better risk assessment, and maintaining a security baseline for AI.

For foreign founders, this suggests continued policy support for AI adoption in industrial and commercial settings, but also a regulatory environment that will be calibrated by industry and risk. Companies in AI-related fields should prepare for sector-specific rules and for opportunities tied to application pilots and data supply.

Teachers Law Revision: Workforce and Social Policy Signals

The meeting discussed and in principle approved a draft revision of the Teachers Law, which will be submitted to the National People's Congress Standing Committee for review. The readout emphasized improving teacher pay and rights, reducing non-teaching burdens, enhancing public services for teachers, and protecting professional dignity and lawful rights. It also called for a high-quality, professional teaching workforce, a stronger teacher education system, and a society that respects teachers.

While this is primarily social policy, it matters for foreign founders because education-related investments and hiring in the education sector can be affected by changes in teacher qualifications, pay rules, and workload standards. The draft is not yet law, so monitor subsequent legislative steps.

Pricing Law Amendment: Targeting Disorderly Low-Price Competition

The meeting also discussed and in principle approved a draft amendment to the Pricing Law, to be submitted to the NPC Standing Committee. The amendment aims to adapt to new circumstances by improving price governance mechanisms, refining government pricing procedures, and clarifying standards for identifying improper pricing behavior and related legal liability.

The readout specifically calls for:

• Governance of disorderly low-price competition in accordance with law and regulations.
• Improved supporting rules, such as industry cost investigations and measures to curb below-cost dumping.
• Stronger price enforcement and supervision.
• Continued regulation of price competition in the platform economy, guiding companies to enhance product and service value and fostering a fair, orderly market environment.

Foreign founders—especially in e-commerce, retail, and platform-based businesses—should note the policy focus on low-price competition and platform pricing. The amendment could affect pricing strategies, promotional practices, and compliance programs. Because the draft is not final, exact obligations remain to be seen, but the direction is toward tighter scrutiny of below-cost pricing and platform pricing behavior.

Regulatory Housekeeping: Amendments and Repeals

The meeting decided to amend certain provisions of 14 administrative regulations, including the Implementation Regulations of the Archives Law, and to repeal four administrative regulations, including the Provisions on Limitation of Liability for Maritime Passenger Transport between Chinese Ports. Such housekeeping can reduce compliance burdens or change procedures for businesses in affected sectors, though the readout does not provide details. Foreign founders should watch for the published texts to assess any impact on their operations.

Practical Takeaways for Foreign Founders

Although these are draft or framework decisions, they offer useful signals for company registration and operations in China:

• AI-related businesses: expect continued support for application pilots and data supply, alongside industry-specific risk controls. Build compliance around data and algorithm use early.
• Platform and retail businesses: review pricing and promotional policies in light of the planned Pricing Law amendment, particularly regarding low-price competition and platform pricing.
• Education sector: monitor the Teachers Law revision for changes that could affect hiring and qualifications if you operate in education and training.
• General compliance: keep an eye on the final texts of amended and repealed regulations, as they may simplify or alter procedures.

Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.

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