New Rules: Key Regulations Taking Effect in China on Jan 1, 2026

A series of new national regulations have taken effect across China on January 1, 2026, addressing public concerns and shaping daily life in areas from public security and childcare to electric vehicles and cyberspace. Here’s a breakdown of the key changes you should know about.

1. Public Security: Crackdown on New Nuisances

The revised Law on Penalties for Administration of Public Security expands its scope to cover emerging offenses. Actions now explicitly punishable include:

Cheating on exams.

Organizing or leading pyramid schemes.

Acts that damage the protection of heroes and martyrs.

Interfering with public transport by grabbing controls.

Releasing airborne objects carrying open flames.

Throwing objects from high altitudes.

Operating drones without authorization ("black flying").

Failing to restrain pets, leading to injuries.

2. Preschool Education: Transparent Fee Systems

New rules on kindergarten fees mandate clear pricing. Public,普惠 (inclusive), and other non-profit private kindergartens will have government-guided tuition and boarding fees. For-profit kindergartens can set their own market rates. All fees must be publicly listed, and any unlisted or unpublicized charges are prohibited.

3. Electric Vehicles: Stricter Energy Consumption Standards

The world’s first mandatory standard for EV energy consumption limits takes effect. Manufacturers must upgrade new models to meet stricter efficiency targets. For example, a typical 2-ton vehicle must now consume no more than 15.1 kWh per 100 km. This upgrade is expected to increase average range by about 7% with the same battery capacity.

4. Taxation: VAT Becomes Law

The Value-Added Tax (VAT) Law comes into force, formalizing China's largest tax category into law. This marks significant progress in China's "taxation by law" principle, with 14 out of 18 major taxes now governed by specific laws.

5. Cyberspace: Regulating Online Language and AI

The revised Law on the Standard Spoken and Written Chinese Language extends to the digital realm, standardizing language use online. A National Promotion Week will be held every September.

Meanwhile, the amended Cybersecurity Law directly addresses AI governance. It supports AI research and infrastructure while mandating enhanced risk monitoring, assessment, and safety supervision to ensure healthy development.

6. Personal Finance: A One-Time Credit Repair Opportunity

A one-time credit repair policy by the People's Bank of China offers relief. Eligible overdue records will be automatically cleared from personal credit reports if they meet three criteria:

The debt became overdue between Jan 1, 2020, and Dec 31, 2025.

The single overdue amount was 10,000 yuan or less.

Full repayment is made by March 31, 2026.

7. National Parks: Prioritizing Local Employment

The new National Parks Law encourages public participation in conservation. A key provision states that ecological protection jobs within parks should be offered first to local residents. The law also promotes public education and free open days.

8. Legal Proceedings: New Categories for Digital Age Disputes

The updated Civil Case Cause Catalogue expands to 1,055 categories, reflecting modern societal issues. New additions include causes of action related to data and online virtual property disputes, along with refined categories for intellectual property, new forms of employment, and elderly rights protection.

These comprehensive regulations aim to refine governance, protect citizens' interests, and guide sustainable development in a rapidly evolving society.

Source: GICexpat