China

China's free trade zones have published data export negative lists that clarify what constitutes 'important data' under Chinese law. Companies processing such data must comply with strict obligations including MLPS Level 3, annual security audits, and government approval for cross-border transfers.

China's CAC has escalated enforcement of cross-border data transfer rules under PIPL and Cybersecurity Law, with fines including RMB 10 million against Ctrip. The amended Cybersecurity Law (effective Jan 1, 2026) raises penalty ceilings, and nationwide campaigns target broader privacy violations. Companies must ensure compliance now.

China's new five-year energy plan sets a binding target for non-fossil energy to reach 50% of power generation by 2030, up from 42.3% in 2025. Companies operating in China should prepare for accelerated renewable energy deployment and potential impacts on energy costs and carbon compliance.

The Asset Management Association of China (AMAC) has issued first-of-its-kind transparency rules for sustainability funds, requiring disclosure of sustainability objectives and investment strategies. This aligns with global ESG standards like the EU SFDR and aims to combat greenwashing, affecting asset managers in China.

China's Cyberspace Administration of China (CAC) is actively enforcing the Personal Information Protection Law (PIPL), imposing strict compliance obligations on financial firms. Violations can result in fines up to millions of dollars, requiring robust data governance, regular audits, and cross-border data transfer restrictions.

China's new Interim Measures require employers to sign written agreements with over-age workers, guarantee minimum wage and safety, provide mandatory work injury insurance, and shift wage/safety disputes to labor arbitration. Employers must prepare for compliance by July 1, 2026.

Chinese government regulations now require three-star and higher-rated hotels and tourist attractions to accept foreign bank cards, including American Express. This regulatory change supports market expansion for foreign payment networks and simplifies spending for international visitors in China.

China is introducing interest earnings and deposit insurance protection for its central bank digital currency (e-CNY) starting January 1 to boost adoption. This regulatory enhancement aims to modernize payments, encourage use in payroll and investments, and position the digital yuan as an alternative to stablecoins and dominant payment apps.

Chinese regulators have instructed major tech companies including Ant Group and JD.com to suspend their stablecoin launch plans in Hong Kong, despite Hong Kong's new stablecoin licensing framework. This reflects mainland China's intervention in Hong Kong's financial innovation initiatives to control monetary policy and promote its digital yuan CBDC.

China has released updated climate and energy transition goals as part of its latest five-year plan, including new CO2 emissions intensity reduction targets of 3.8% by 2026 and 17% by 2030, and raising the non-fossil energy share target to around 25% by 2030. While maintaining existing commitments to peak emissions by 2030 and achieve carbon neutrality by 2060, the plan has been criticized as less ambitious than previous targets, with environmental groups noting it represents a cautious approach to climate policy.

China's MIIT and CAC have issued new guidance on automotive data security that introduces exemptions from SCCs and CAC approval for cross-border transfers of specific automotive data categories and shifts to data controller-led identification of 'important data' with detailed standards. The guidance is effective February 2026 and represents a significant update to automotive data compliance requirements in China.