This Week in Asian Law

September 7-13

China

The National People’s Congress Standing Committee is reviewing a draft revision to the Foreign Trade Law (对外贸易法) to give the government more tools to counter what it calls unilateralism, protectionism, and bullying by the US. Among other things, it would establish “trade adjustment assistance system” to stabilize industrial and supply chains, and include new provisions for restricting or prohibiting imports and exports. The draft also codifies a negative list for cross-border trade in services, support for new trade models and digital trade, a green trade system, and other recent policy reforms.

The NPC Standing Committee is reviewing two draft laws that aim to promote ethnic integration. The draft Law on Promoting Ethnic Unity and Progress (民族团结进步促进法) emphasizes shared cultural identity, social integration, and Communist Party-led cohesion. The proposed revisions to the Law on the Standard Spoken and Written Chinese Language (国家通用语言文字法) seek to standardize language usage across education, public services, and digital platforms. Supporters argue that these measures will consolidate national unity but critics warn that they threaten minority languages and cultures. Public comment may be submitted on the drafts until October 11, 2025.

The Supreme People’s Court (SPC) released eight typical cases of unfair competition in the context of new technologies and emerging business models. The SPC also released five typical cases concerning monopoly practices in areas closely related to people’s daily lives. The rulings in these cases clarify the legal standards for monopolistic practices led by industry associations, presumption of damages and the burden of proof in horizontal monopoly disputes, and the criteria for recognizing and calculating anti-competitive conduct. In one case, the court ruled against an administrative body for restricting competition in the shared e-bike industry. It was the first judicial decision in an administrative monopoly case.

The Ministry of Justice reported that it submitted 53 legislative proposals and revised150 regulations during the 14th Five-Year Plan (2021–25). The ministry also increased its capacity to handle foreign-related legal matters, managing 16,000 arbitration cases worth 730 billion yuan and supporting Chinese firms abroad.

Hong Kong

A High Court judge agreed with a lesbian couple that the government’s refusal to include both women’s names on the birth certificate of their child could cause the child inconvenience, embarrassment, and actual harm. The couple underwent reciprocal in vitro fertilization, with the egg extracted from one woman, R, while the other woman, B, carried and gave birth to the baby. Judge Russell Coleman said the government’s practice of recognizing only the birth mother and her husband as legal parents undermines parental rights and could have serious consequences in urgent situations. The couple wants the government to amend the baby’s birth certificate to include both parents’ names, but the judge has not yet ruled on what relief they will be offered.

The Legislative Council resoundingly rejected a government-proposed bill that would have allowed same-sex couples who already have married overseas to register their partnership in Hong Kong and enjoy some of the rights of married heterosexual couples, such as to make medical decisions for their partner and arrange for after-death care. The bill was drafted in response to a 2023 Court of Final Appeal ruling that required the government to establish a framework for recognizing same-sex relationships by October 27, 2025. Lawmakers said the bill threatened traditional family values.  

The Legislative Council approved a bill legalizing basketball betting and authorizing the government to grant a basketball betting license to the Hong Kong Jockey Club. The bill imposes a 50 percent duty on net profits and strengthens efforts against illegal gambling. The new regime is modeled on the legalization of football betting in 2003. The Jockey Club already holds a monopoly on betting on horse races, football matches, and lotteries.  

Japan

Prime Minister Shigeru Ishiba, in office for less than a year, announced his resignation after his Liberal Democratic Party lost its majority in elections for the upper house of the Diet. The LDP had already lost its majority in the more powerful lower house in October 2024. Voters soured on the LDP because of its slush fund scandals and failure to address cost-of-living problems. Ishiba will remain in office until his party chooses a new leader, probably in October.

Justice Minister Keisuke Suzuki said in an interview that Japan needs to craft a unique model for accepting foreign nationals. He said Japan will not become an “immigrant nation” but it must attract skilled foreign workers to address labor shortages and strengthen the economy. Suzuki released a report in August that urged a review of immigration policies, a topic on which society is sharply divided. In an editorial, the Asahi Shimbun newspaper said the government focus should be on how to encourage integration, mutual understanding, and coexistence, rather than viewing foreigners as a convenient labor force or threat to social stability.

Koreas

The administration of President Lee Jae-myung finalized a government reorganization plan that includes breaking up the powerful Supreme Prosecutors’ Office and transferring its functions to two newly established departments under the Ministry of Interior and Safety, a Public Prosecution Department and a Major Crimes Investigation Department. The plan also redistributes powers related to drafting the national budget and setting financial policy, expands the Ministry of Environment to take on energy policy, expands the Ministry of Gender Equality and Family, reorganizes the commission that regulates media and communications, and makes other changes. The plan now goes to the National Assembly for approval.

The government plans to amend the Immigration Control Act to protect foreign workers from deportation when reporting wage theft or labor violations. Officials say the lack of safeguards has discouraged many victims who lack legal status from reporting labor violations. The law will be revised to remove the obligation for public officials to alert immigration authorities when they encounter undocumented workers in wage theft or other labor law investigations.

The National Assembly unanimously amended the law that created special counsels to investigate impeached President Yoon Suk Yeol, his wife, and the death of a Marine soldier. The amendment increases the number of prosecutors on the special counsel teams, extends their terms by 30 days, and clarifies matters including the power and obligations of the special counsels.

Taiwan

The Coast Guard Administration recently intensified round-the-clock patrols in waters around critical undersea communication cables. The government alleges that vessels with Chinese ties deliberately sabotaged two cables this year as a form of “gray-zone warfare.” In addition to increasing surveillance, Taiwan and friendly countries are sharing intelligence on the real-time locations of nearly 400 China-linked boats operating in the region.

The opposition Nationalist Party (Kuomintang or KMT) said it would propose amendments to the Allocation of Revenue and Expenditures Act (財政收支劃分法) to correct errors in the distribution formulas that have resulted in unequal distributions, central government debt, and some funds remaining undistributed. The KMT and Taiwan People’s Party (TPP), which jointly control the legislature, approved the formulas in March over the objections of the Democratic Progressive Party (DPP), which holds the presidency. The KMT and DPP blame each other for the errors. Sixteen KMT and TPP heads of local government jointly demanded that their funds be restored.

The Executive Yuan approved a “Special Budget for Strengthening Economic, Social, Livelihood, and National Security Resilience in Response to International Circumstances” (中央政府因應國際情勢強化經濟社會及民生國安韌性特別預算案) to counter the impact of US tariffs and boost the economy. Premier Cho Jung-tai said the special budget allocates NT$550 billion to support industries, stabilize employment, improve livelihoods, and enhance national resilience. It includes universal cash handouts of NT$10,000 (US$330). The budget goes to the Legislative Yuan for approval.