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Amendment to the Technology Transfer Regulations in China

28 March 2019

On March 2, 2019, Premier Li Keqiang signed a State Council decree No.709 to amend a total of 49 regulations, including the Technology Import and Export Regulations (TIER) and the Regulations for the Implementation of the Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures (JV Regulations). The amendment was published on March 18, 2019 and took effect immediately. 

The amendments to TIER and the JV Regulations revoked certain provisions that were biased against the foreign transferor in technology import situations, and reinstated for those foreign parties the general rules under the Contract Law of the People’s Republic of China (PRC Contract Law). Such legislative efforts are likely meant to show China’s willingness to address US concerns regarding forced technology transfer in the ongoing trade war and to meet the national treatment obligations under TRIPS.

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