Published by ChinaMNC · Leiyang

China’s State Council Reviews ‘AI Plus’ Initiative and Draft Legal Changes: What Foreign Founders Should Watch

A State Council executive meeting chaired by Premier Li Qiang reviewed progress on the ‘AI Plus’ initiative and discussed draft revisions to the Teachers Law and Price Law, plus changes to administrative regulations. Here is a practical breakdown for foreign founders operating or registering companies in China.

What Happened at the State Council Executive Meeting

On 16 October, 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 a draft revision of the Teachers Law, discussed a draft amendment to the Price Law, and approved in principle a draft decision on amending and repealing certain administrative regulations.

For foreign founders, the significance lies less in the headline items and more in the policy direction they signal: support for applied AI, tighter rules on pricing conduct, and continued adjustment of the administrative rulebook.

1. “AI Plus”: Application-Led Innovation

The meeting described artificial intelligence as a key variable shaping future development. It said China’s approach should start from the country’s existing conditions — a complete industrial system, rich application scenarios and strong engineering capacity — and should focus on using real-world deployment to pull technological innovation, while continuing to deepen and expand the “AI Plus” initiative.

Specific priorities set out in the readout include:

• Strengthening the foundation: intensifying technical research and algorithm innovation, promoting coordination between computing and electricity, and increasing the supply of high-quality data.
• Addressing weaknesses and building on strengths: the meeting called for efforts to shore up shortcomings and reinforce advantages.
• Focusing on enabling applications: with the real economy as the priority, improving links between supply and demand, encouraging joint research and development, advancing pilot-scale testing and verification, and expanding the cultivation of application scenarios.
• Turning AI into real productivity: the stated aim is for AI technology to be better converted into tangible productive capacity.
• Balancing development and security: applying differentiated, sector-specific and tiered measures, strengthening risk assessment, and holding the bottom line on AI safety.

Founder takeaway: The meeting language points toward continued policy support for AI applications tied to industry rather than purely consumer-facing experimentation. Foreign founders in AI-enabled software, industrial technology or data-related services may find that framing their China activities around concrete deployment, joint R&D and pilot verification aligns with the stated direction. Note, however, that the readout sets direction; it does not announce new incentives, approvals or guarantees.

2. Teachers Law Revision: Draft Sent to the NPC Standing Committee

The meeting discussed and approved in principle the draft revision of the Teachers Law and decided to submit it to the Standing Committee of the National People’s Congress for deliberation. The readout says teachers are the foundation of education and the source of its vitality.

Measures mentioned include strengthening protection of teachers’ pay and rights, reducing non-teaching administrative burdens, improving public services for teachers, and safeguarding their professional dignity and lawful rights. The meeting also called for building a high-quality, professional teaching workforce, improving the teacher education system, raising teaching capability, strengthening professional ethics, and fostering a society-wide atmosphere of respect for teachers.

Founder takeaway: This item is primarily relevant to founders in education and training, edtech, or corporate learning. It is a draft revision still subject to legislative deliberation, so the final text may differ. Businesses in these sectors should monitor the NPC process rather than treat the draft as final law.

3. Price Law Amendment: Competition and Pricing Conduct

The meeting discussed and approved in principle the draft amendment to the Price Law and decided to submit it to the NPC Standing Committee for deliberation. According to the readout, the amendment responds to new circumstances and changes, further improves the price governance mechanism, refines government pricing procedures, and clarifies the criteria for identifying improper pricing conduct and the related legal liability.

The meeting called for:

• Governance of low-price disorderly competition in accordance with laws and regulations;
• Improving supporting rules such as industry cost investigations and prohibitions on below-cost dumping;
• Strengthening price enforcement and supervision;
• Continuing to regulate price competition in the platform economy;
• Guiding enterprises to continuously improve the value of their products and services;
• Creating a fair and orderly market environment.

Founder takeaway: For foreign founders operating e-commerce, marketplaces, SaaS platforms or consumer businesses in China, pricing strategy is a compliance topic. The readout signals continued attention to predatory low pricing and platform pricing behaviour. Companies should ensure their pricing, discount and promotional practices are documented and defensible, and watch for the supporting rules mentioned in the readout. Again, the draft amendment is pending NPC deliberation.

4. Administrative Regulations: 14 Amended, 4 Repealed

The meeting decided to amend parts of 14 administrative regulations, including the Implementing Regulations of the Archives Law, and to repeal 4 administrative regulations, including the Provisions on Limits of Liability for Maritime Passenger Transport between Chinese Ports.

The readout also states that the meeting studied other matters.

Founder takeaway: Amendments and repeals of administrative regulations can affect registration formalities, record-keeping obligations and sector-specific operating rules. The source does not list the full set of amended provisions, so founders should check the final published texts and consult professional advisers on whether any item touches their licence, filing or archival obligations.

Practical Checklist for Foreign Founders

• Track the legislative calendar: Both the Teachers Law revision and the Price Law amendment are drafts submitted to the NPC Standing Committee, not enacted law.
• Review pricing policies: If your China entity sells on platforms or competes aggressively on price, assess exposure to rules on below-cost dumping and improper pricing.
• Document AI deployments: If you use or develop AI, keep records of testing, data sources and risk assessment, consistent with the meeting’s emphasis on safety and tiered sector measures.
• Check regulatory changes: Confirm whether any of the 14 amended or 4 repealed administrative regulations affect your industry.
• Do not assume incentives: The readout expresses policy direction; it does not announce subsidies, approvals or guarantees.

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