Published by ChinaMNC · Baoan

China’s State Council Signals AI, Pricing and Regulatory 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 Pricing Law, plus changes to administrative regulations. Here is what the meeting covered and why it matters for foreign founders operating 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 Xinhua, the meeting heard a report on progress of the “AI Plus” initiative, discussed a draft revision of the Teachers Law of the People’s Republic of China, discussed a draft amendment to the Pricing Law of the People’s Republic of China, and deliberated and approved a draft decision of the State Council on amending and repealing certain administrative regulations. The meeting also examined other matters.

For foreign founders registering or running a company in China, the meeting is a useful signal of policy direction in three areas that touch business operations: artificial intelligence deployment, price competition and platform pricing conduct, and the stock of administrative rules that govern day-to-day compliance.

AI Plus: application-led development

The meeting described artificial intelligence as a key variable affecting future development. It said China’s approach should start from the country’s realities, including a complete industrial system, rich application scenarios and strong engineering capacity. The emphasis is on letting real-world deployment pull technological innovation forward and on continuously deepening and expanding the “AI Plus” initiative.

What the meeting said about building the foundation

The meeting called for strengthening the development base. Specific points included:

• Stepping up technical research and algorithm innovation.
• Promoting coordination between computing and electricity.
• Increasing the supply of high-quality data.
• Working to shore up weaknesses and strengthen areas of advantage.

What it said about applied deployment

The meeting stressed enabling applications, with the real economy as the focus. It called for stronger alignment between supply and demand, encouragement of joint research and development, progress in pilot testing and validation, and greater efforts to cultivate application scenarios. The aim stated was to turn AI technology into real productive capacity more effectively.

What it said about safety

The meeting also linked development and security. It called for differentiated, tiered and classified measures by industry, stronger risk assessment, and holding the bottom line on AI safety.

Practical takeaway for foreign founders: The source does not announce new subsidies, licensing rules or market-access measures for foreign companies. What it does show is official priority for AI applications tied to the real economy, joint R&D, pilot testing and scenario development, alongside risk assessment and industry-specific safety measures. Founders building AI-enabled products or services in China should expect continued policy attention to data supply, computing capacity and safety compliance, but should not treat this readout as a specific approval or entitlement.

Teachers Law draft: what it covers

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 described teachers as the foundation of education and the source of its strength. It called for strengthening safeguards for teachers’ pay and rights, reducing non-teaching burdens, improving public services for teachers, and protecting the dignity and lawful rights of the teaching profession. It also called for cultivating a high-quality, professional teaching workforce, improving the teacher education system, raising teaching ability, strengthening professional ethics, and fostering respect for teachers across society.

Practical takeaway for foreign founders: The source does not address foreign-invested schools, work permits, recruitment of foreign teachers or any specific compliance obligation for companies. The draft is a legal revision heading to the legislature, not a final law. Employers in education-related sectors should monitor the NPC process rather than assume new rules are already in force.

Pricing Law amendment: competition and platform conduct

The meeting discussed and approved in principle the draft amendment to the Pricing Law and decided to submit it to the Standing Committee of the National People’s Congress for deliberation. According to the readout, the amendment responds to new circumstances and changes. It 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 governing low-price disorderly competition in accordance with laws and regulations, improving supporting rules such as industry cost investigations and the prohibition of below-cost dumping, and strengthening price enforcement and supervision. It also called for continuing to regulate price competition in the platform economy, guiding companies to keep improving the value of their products and services, and fostering a fair and orderly market environment.

Practical takeaway for foreign founders: Companies with platform-based sales, discount-heavy pricing strategies or cross-subsidised models should watch the legislative process closely. The readout signals continued scrutiny of below-cost pricing and platform pricing behaviour, but it does not set out new thresholds, penalties or effective dates. The draft still requires NPC Standing Committee deliberation.

Administrative regulation clean-up

The meeting decided to amend some provisions of 14 administrative regulations, including the Implementing Regulations of the Archives Law of the People’s Republic of China. It also decided to repeal four administrative regulations, including the Provisions on Limitation of Liability for Maritime Passenger Transport between Ports of the People’s Republic of China.

Practical takeaway for foreign founders: The readout does not list all 14 amended regulations or detail the changes. Companies should check the eventual published text of the State Council decision to see whether any amended or repealed rule affects their sector, record-keeping obligations or transport-related liabilities.

What foreign founders should do next

• Treat this as a policy-direction readout, not a set of immediately effective obligations. The Teachers Law and Pricing Law drafts still go to the NPC Standing Committee.
• Track the published State Council decision on the 14 amended and four repealed administrative regulations.
• For AI-related ventures, align product plans with the stated focus on real-economy applications, pilot testing and risk assessment, while awaiting specific implementing rules.
• For pricing and platform operations, review discount and below-cost practices against existing law while watching the Pricing Law amendment process.
• Consult qualified local counsel on registration, licensing and compliance questions specific to your business.

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