EU-China Trade Project II (EUCTP II) strengthens cooperation with the State Council, NPC and NCAC on legislative reforms

As China tackles domestic legislative and regulatory reform, EUCTP II has provided deepening support and shared relevant EU experience to enhance and inform these exchanges. Within the past few months, activities on alternative dispute resolution, tourism, and copyrights have been delivered to representatives of the State Council Legislative Affairs Office (SCLAO), the Legislative Affairs Commission of the National People’s Congress (NPC) and the National Copyright Administration of the PRC (NCAC) respectively, to assist China in the development of its regulatory framework.

When supporting legislative drafting, timing is always a key factor, and the Project has specifically designed activities around the drafting schedules of the related Chinese agencies. Both the Seminar on the Revision of the Copyright Law and the Workshop on Tourism Legal Frameworks were delivered to support the consultation or review process of the relevant legal drafts. And as EU-China cooperation on regulatory reform continues to strengthen, EUCTP II will remain focused on contributing to future drafts in the calendars of the NPC and the State Council.

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Regulatory Reform top
Sharing European practice and experience on dispute resolution: To cope with increased caseloads for courts, and cost and time pressures, the State Council Legislative Affairs Office (SCLAO) is putting in place a comprehensive administrative dispute resolution system, which would enable the prompt resolution of social conflicts. To inform these efforts, a Study Visit to the EU on Alternative Dispute Resolution (ADR) of Administrative Disputes was organised in November 2012 for a group of 12 high level officials from SCLAO. The study visit focused on European best practice and case studies on alternatives to litigation when the government or its agents are involved in disputes. Furthermore, it provided the opportunity for delegates to meet with relevant European counterparts at both the EU and Member State levels to strengthen the understanding of how ADR can be implemented in civil, family and even criminal matters.

EUCTP II has also contributed to concrete legislative reform priorities, such as its Seminar on the Revision of the Copyright Law, which was held in Shanghai in November 2012. The timing of the seminar was particularly relevant as China is in the process of consultation on the second draft of its Copyright Law, which was released in July 2012. Chinese and European experts discussed the four technical areas that were identified by NCAC as requiring further discussion - Resale Rights, Collective Management Systems of Copyright, Orphan Works and Copyright Protection in the digital environment. As a result, exchanges were in-depth, informative and of direct value for Chinese legislative drafters and experts involved in the process of legislative drafting.

Chinese experts discuss with European counterparts the technical areas relating to the drafting and implementation of copyright laws
Tourism & Culture top
Advancing the development of tourism legislation and the EU-China Year of Intercultural Dialogue:Currently, the NPC working bodies are drafting China’s first tourism law, a crucial development as the volume of Chinese tourists travelling domestically and internationally continues to increase.  Following up on the May 2012

Respective tourism laws and regulations are exchanged during a study visit to the EU
Workshop on Tourism Legal Frameworks, EUCTP II organised a Study Visit on Enacting and Enforcing Tourism Laws and Regulations, highlighting how Europe divides regulators´ responsibilities among European, national and regional authorities, how it oversees travel contracts and tour guides, and how it supervises time-share holidays. Chinese lawmakers entered into the first round of deliberations on a draft law on tourism just several months prior to the study visit, and will be reviewing the second draft in late December. Delegate feedback from the study visit confirmed it helped them consider improvements to the legislative framework for tourism.

In recognition of the EU-China Year of Intercultural Dialogue, EUCTP II organised a Study Visit on EU Experience on Policies Related to Cultural Industries: Publishing. EU-China trade in publishing is flourishing, and the activity supported the General Administration of Press and Publication (GAPP), the State Administration of Taxation (SAT) and the Ministry of Finance (MOF) to better understand Europe’s financial policy and regulatory framework for promoting the press and publication sector, while enhancing further EU-China cooperation and informing developments within China’s own publishing sector. During a Study Visit on EU-China Cooperation in Growing the Cultural Industry and Implementing the 2005 UNESCO Convention, in-depth knowledge was shared of EU experiences and expertise in developing the cultural industry and regulating the trade of cultural products and services. As China seeks to expand its cultural and creative industries (CCIs) - with the goal of having high-value added services (including CCIs) account for over 45% of its total trade by 2015 - the study visit provided a useful platform for Chinese agencies involved in CCIs and their European counterparts to discuss CCI support and promotion policies. 

Financial Stability & Services top

Contributing policy recommendations on insurance and incorporating modelling into monetary policy: With China’s insurance market expanding rapidly, EUCTP II supported three activities in this sector through a Seminar on Insurance, which provided representatives from the China Insurance Regulatory Commission (CIRC) and the insurance industry with in-depth knowledge of three topics: Solvency, Pension Supervision and Auto-insurance. The sessions allowed participants to compare European and Chinese approaches on solvency regulation, while also exploring possibilities for further cooperation, such as in the area of China Automobile Liability Insurance (CALI) supervision.

Representatives from CIRC participate in a 3-part workshop series on insurance

In recent years, Dynamic Stochastic General Equilibrium (DSGE) models have been developed by a number of central banks around the world as an important tool in the formulation and communication of monetary policy. To promote further monetary policy cooperation, EUCTP II organised a Workshop on the Coordination between China-EMU Monetary Policy Based on the Multi-Country DSGE Model, enhancing understanding of the DSGE framework and its application.  

Agriculture & Food Safety top

Establishing sustainable cooperation and implementation mechanisms for the harmonisation of standards: In support of the March 2012 dialogue between the Ministry of Agriculture (MOA) and the Directorate-General for Health and Consumers of the European Commission (DG SANCO), EUCTP II is facilitating work towards the twining of the ANSES Laboratory - a World Organisation for Animal Health (OIE)/European Union Animal Health (EU) reference laboratory located in Maisons-Alfort, France - with the Chinese Animal Health and Epidemiology Center (CAHEC) - an MOA reference laboratory located in Qingdao, Shandong Province. This cooperation supports the harmonisation of standards between the EU and China in the area of surveillance and control of zoonotic diseases (diseases transmissible to humans), which currently undermines food safety in domestic and international trade.

European experts evaluate reference laboratory procedures during a 10-day consultation in Qingdao, China EUCTP II delivered a series of activities to progress these aims, including a Roundtable to Harmonise Animal Health Reference Laboratory Standards in April 2012 and a Study Visit on Standardising Animal Health Reference Laboratories in July 2012. In October 2012, a 10-day Consultation to Harmonise Animal Health Reference Laboratory Standards was held in Qingdao, where European experts evaluated the status of the surveillance systems that are in place for the disease brucellosis, the status of the CAHEC laboratory facilities, the laboratory management procedures and the regulatory environment related to reference laboratories in China. As a result, a series of technical recommendations were issued that, once

implemented, will allow the Chinese laboratory to fulfil the requirements to apply for recognition as an OIE brucellosis reference laboratory. The next steps of the twining program will be the implementation of the technical recommendations and an upgrading of Chinese experts' technical skills through training at the laboratory in Maisons- Alfort.

To support both the harmonisation of standards and the capacity of competent authorities to implement and enforce these standards, EUCTP II supported the EU-China Forum on Technologies Used in Food Safety and Product Authentication to build awareness about the scientific methods and technologies for determining the authenticity of agricultural produce and alcoholic beverages. The forum focused on the application of stable isotope mass spectrometry techniques to define the authenticity of food and beverages, further supporting the implementation of China’s Food Safety Law.

To strengthen food safety throughout the supply chain, a Seminar on Feed Materials Safety and Quality Management was held in Beijing, building Chinese authorities’ and feed industry representatives’ capacity to comply with China's State Council Decree No.609 on the Regulation on the Administration of Feed and Feed Additives, which came into effect on May 1, 2012. The seminar established connections between these aims and the EU “farm to table” strategy on food safety, by highlighting the safety of feed materials used for animals as a key element.
Chinese and European experts cooperate
to support the enforcement of newly implemented Chinese feed and feed
additive regulations
Internationalisation of Standards top
Facilitating China's progress in the international standardisation system: As follow-up to a 2011 EU-China Training on International Standardisation, the Project organised a September 2012 Workshop on Support to SAC Leadership in International Standardisation. The workshop aimed to inform the Standardisation Administration of China (SAC) on methods and approaches for training future trainers in this field. In addition, EUCTP II and SAC have cooperated in developing an e-learning course on international standardisation, which SAC aims to incorporate into its international training procedures. Further supporting progress in standards, EUCTP II organised the China-Europe Standards Information Platform (CESIP): Standards

Workshop trainers engage with SAC representatives on train-the-trainer exercises for international standardisation
for Enterprise seminar, which presented CESIP’s aims of strengthening bilateral trade and investment flows by making standards and technical regulations more accessible. In the automotive sector, a Study Visit on Automotive Market Surveillanceaided the General Administration of Quality Supervision, Inspection, and Quarantine (AQSIQ) in better understanding the EU regulatory system in this sector, while a Study Visit on Alternatives to Animal Testing in Cosmetics brought together delegates from AQSIQ and the Joint Research Centre (JRC) of the EU to discuss the movement towards a gradual ban on animal testing in cosmetics, which is already prohibited in the EU and thus impacts Chinese exports internationally.
Drug Precursor Prevention top

Strengthening cooperation between Private Sector (Associations) of China and the EU in drug precursor prevention:Since January 2009, an agreement has been in force to strengthen EU-China cooperation in preventing illicit imports of chemical substances used for synthetic drug production. The agreement, which is under the high level dialogue on drug precursor control, supports a wide system of monitoring the legal movements of these precursors. Last year, the project delivered the Best Practices Workshop on Drug Precursors, which was followed up this year with a Best Practice Seminar on Drug Precursors Co-operation between Private Sector (Associations) of China and the EU. The seminar focused on the exchange of good practice in the cooperation between competent authorities, industry, and industry associations in both China and the EU.

Environmental Services top

Supporting progress in liberalising the environmental services market:The development of environmental services has become a shared concern for both the EU and China, with China’s Twelfth Five Year Plan for Strategic Emerging Industries identifying both energy saving and environmental protection among its seven strategic priorities. To address the needs of this growing industry, EUCTP II organised a Workshop on the Liberalisation of the Environmental Services Market and Development Policies for stakeholders involved in the development of the environmental services sector in China, including MOFCOM, the Ministry of Environmental Protection (MEP), and academic and industry associations. The workshop introduced EU experience and practice in liberalising environmental services in order to inform China’s own development of rules and regulations in this growing sector.

Experts exchange views on approaches for developing environmental services
Sectoral Exchanges
Enhancing mutual exchange through the EU-China Consultation and Cooperation Mechanism: From September through November 2012, EUCTP II delivered sectoral exchanges in several areas including toys, cosmetics, medical devices and textiles, engaging Chinese and European regulators, experts and industry participants in these exchanges. The Project continued its support for the EU-China Consultation and Cooperation Mechanism by hosting the 5th Cosmetics Technical Exchange Meeting anda Medical Devices Expert Roundtable II final reporting meeting between the State Food and Drug Administration (SFDA) and DG SANCO. In addition, a Seminar on Toy Safety involving AQSIQ and DG ENTR, promoted the establishment of a long-term toy inspection and quarantine supervision mechanism for exports. In the field of textiles,
a Comparative Study of EU & China Textile Systemswas commissioned and introduced at a Working Group meeting between AQSIQ and DG ENTR to help identify key issues for future regulatory dialogues. Overall, these exchanges reinforced bilateral regulatory dialogues by reporting outcomes from technical expert discussions and presenting recommendations to respective WG interlocutors.
Discussions support the EU-China Consultation and Cooperation Mechanism at the 5th
Cosmetics Technical Exchange Meeting
Competition Policy top
Aligning the implementation of technical assistance to meet the current needs of Chinese Anti-Monopoly Enforcement Agencies (AMEAs): Technical assistance to support the EU-China Competition Policy dialogue has been aligned with the internal training schedules and secondary legislation drafting processes of the Chinese Anti-Monopoly Enforcement Agencies (AMEAs) to ensure all activities delivered contribute to capacity-building in the enforcement activities of the agencies and to the process of drafting procedures, guidelines and legislation related to - and developing - the legal infrastructure of the Chinese Anti-Monopoly Law.

In September, a study visit to Europe was organised for legislative drafters and case handlers from both the State Administration for Industry & Commerce (SAIC) and the National Development and Reform Commission (NDRC) Anti-Monopoly Law enforcement agencies to discuss with EU experts the regulation and enforcement of IP with reference to European good practice, as well as case investigations in vertical agreement and abuse of market dominance. These topics and the outcomes from the visit were then integrated into planning for the following EU-China Competition Week 5, which took place in October.

EU-China Competition Week 5
was held in Xi’an, Shaanxi Province to address each AMEA’s respective needs. For NDRC, discussions centred on vertical agreements, an area which has seen a number of cases moving through the courts as the relevant Chinese agencies further develop their practice in this field. For MOFCOM, the agenda focused on the supplementary rules in mergers - in particular for simplified procedure drafting, which is due imminently. And with SAIC, exchanges aimed to share best

Chinese and European experts and AMEA representatives gather for the 5th EU-China Competition Week
practice and case studies on IPR guidelines concerning competition issues, where Chinese draft legislation is also under development. Over 200 central and provincial level representatives from the three AMEAs participated in the training sessions. In addition, the presentations and training sessions in Xi’an were filmed and have been edited into a DVD for distribution through the AMEAs' internal training networks across all provinces in China. All training materials delivered throughout the week were also uploaded to the EU-China Competition Policy mini-site - launched in June 2012 - to provide access to European regulatory practices and case studies for Chinese beneficiaries regardless of their ability to attend the specific training sessions.