On September 23, 2022, the State Council issued Opinions on Deepening Reforms of Electrical and Electronic Industrial Management Systems (hereinafter referred to as “the Opinions”). Its purpose is to further optimize the existing management systems for electrical and electronic products, as well as to encourage higher-quality development within this sector.

Four months after the publication, on January 17, 2023, the Ministry of Industry and Information Technology (MIIT) issued an official FAQ to support better implementation of the reforming measures covered in the Opinions. The key contents of the FAQ are translated as follows: 

Q: What are the main background and purpose of drafting the Opinions?

A: Chin attaches great importance to the high-quality development of the manufacturing industry. The country is drafting policies to provide a sound environment for the high-quality development of the advanced manufacturing industry, including tax and fee reduction, market access expansion and market openness and fairness supervision etc.

The electrical and electronic sector is an important component of the manufacturing industry with its long industrial chain, large consumer market and high globalization level. It plays a significant role in the industrial stability of the country. China’s electrical and electronic industry is in the key stage of strengthening the industrial foundation as well as accelerating economic transformation and upgrading. The Opinions were drafted to remove institutional barriers, promote healthy development of the sector and stabilize the economy. MIIT and the State Administration for Market Regulation (SAMR) have solicited advice from sectors and enterprises, as well as conducted field research in the drafting process.

Q: What positive influence would the Opinion initiate on the industry?

A: The influence may take place in the following perspectives:

·   Fewer requirements for enterprises on pre-market supervision, so their burden will be further reduced, while the new product launching period can be shortened.

·   It may encourage enterprises to improve production efficiency, auto-manufacturing level and technological innovation level. Enterprises can pay less attention to work related to political licenses application.

·   The supervision focus will shift from pre-market approval to post-market surveillance and monitoring. Reinforce full-life-cycle supervision, and guide the enterprises to improve management level. Relevant regulators will also reinforce supervision and rectification actions on illegal behaviours.

Q: What considerations are there behind the reforming measures mentioned in the Opinions for network access license systems for telecommunication equipment?

A: The network access license (hereinafter referred to as “NAL”) system for telecommunication equipment is an administrative permit under the Regulation of the People’s Republic of China on Telecommunications. It manages the public network access of telecommunication terminal equipment, radio equipment and internet-working devices. The system has been effectively implemented for twenty years ,therefore, remains much to be improved. For example, the network access equipment catalogue hasn’t been updated regularly; the requirements of using sticker labelling on equipment for network access can’t cater to the current manufacturing and management processes; repeating testing or inspections are required among different administrative systems etc.

The new full-process reform includes eight specific measures and two supervision requirements to solve current issues that enterprises have encountered.

Eight reform measures include regularly adjusting the catalogue, simplifying testing items, clarifying on approval time period, extending the license validity period, adopting electronic NAL labels, implementing product serial management, mutually recognising EMC testing reports, and making pilot on product self-inspection and self-certification. All aim at achieving a simpler approval process, stronger supervision and better service.  

Q: Why is there a specific statement on optimizing the support to the high-quality development of the basic electronics industry in the Opinions?

A:  Basic electronics industry is critical to the development of the information and telecommunication industry and the security of the industrial supply chain. Current issues in China’s basic electronics industry include a lack of core competitiveness, insufficient innovative capabilities and unnecessary restrictions from existing mechanisms etc. The publication of the Opinions has clarified measures for the high-quality development of the basic electronics industry. It also guides the reinforcement of supportive capabilities and stimulates the upgrade and modernization of industrial foundations.

In general, detailed requirements in four aspects have been put forward to support the high quality development of basic electronics industry in the Opinions:

·   Promote the research and innovation of the basic electronics industry. Encourage enterprises and research institutes to undertake China’s major R&D projects; assemble advanced resources and promote the innovation system for the sector.

·   Systematically improve the application system. Regularly adjust relevant catalogues; take full advantage of governmental funding to support relevant products entering the market.

·   Encourage the investment and financing of the basic electronics industry. With government investment playing the leading role, encourage relevant local investment funds and social capital investment to foster excellent enterprises, especially top-level companies in the industrial line and SMEs that are specialized in certain advanced technologies.

·   Improve with a supportive environment for industrial R&D. Encourage and support enterprises on efficient land use to reduce cost, and to assist the high-quality development.

Q: What measures are stated in terms of type approval of radio transmission equipment in the Opinions?

A: Current type approval system of radio transmission equipment is established and implemented per the Radio Regulations of the People’s Republic of China.

The Opinions put forward detailed reform measures to promote governmental supervision efficiency, and market entities’ vitality, specifically including:

·   Reduce the time period for approving radio transmission equipment models from 30 working days to 15.

·   Optimize the coding rules for model approval codes. MIIT will publish coding rules and leave the enterprises for specific work. No products should be sold or used before acquiring the approval.

·   Extend the validity period of the approval license from less than two years to more than two years except for the limit from radio frequency adjustment or restriction etc.

·   Promote the self-inspection and self-certification of type approval. MIIT is now making further supportive measures. The application of pilot enterprises for type approval self-inspection and self-certification has started. Public opinions are solicited regarding the revision of the code coding rules for model approval codes.

Q: How to further implement those reform measures?

A: MIIT will improve the top-level design, specify related measures, and determine the implementation plan and work schedule etc. Furthermore, regulators will also listen to enterprises’ feedback in time, learn from experience and improve the system.

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