China Advances Legal Reforms: CPA, Trademark, Antarctic

China is pushing forward significant legal reforms on multiple fronts, with three major draft laws set for second reading at the National People’s Congress (NPC) Standing Committee from June 23 to 26, 2026. The reforms target financial fraud by listed companies, crack down on bad-faith trademark registrations, and bring Antarctic tourism under a formal legal framework for the first time.

Announced by NPC Legislative Affairs Commission spokesperson Huang Haihua at a press conference on June 22, the three draft laws reflect Beijing’s multi-pronged approach to strengthening its legal architecture in financial regulation, intellectual property, and environmental protection.

CPA Law: Cracking Down on Financial Fraud

The Certified Public Accountant (CPA) Law amendment, now at its second reading, targets the persistent problem of financial fraud by listed companies. The draft proposes raising the maximum penalty for issuing false reports from five times illegal income to ten times illegal income, according to The Paper.

“Financial fraud by listed companies severely disrupts the fair order of capital markets, may lead to resource misallocation, harm investor rights, and may also trigger systemic risks,” Huang Haihua said at the press conference. “CPAs should adhere to professional standards, be diligent and responsible, and play the role of ‘gatekeeper’ well.”

The amendment introduces enhanced qualification penalties for severe cases, including suspension of business, revocation of practice licenses, and industry bans. New provisions also establish legal liability for clients and third parties who collude with or instigate CPAs to produce false reports, with an explicit clause that violations constituting crimes will be pursued under criminal law.

The current CPA Law was enacted in 1993 and last amended in 2014. As of the end of 2024, China had approximately 11,000 accounting firms and 100,000 CPAs. The amendment follows a series of high-profile financial fraud cases and is part of a broader regulatory push that has already seen significant amendments to the Accounting Law in 2024 and revisions to the Securities Law.

Trademark Law: Targeting ‘Scheming Trademarks’

The Trademark Law revision, its fifth amendment since enactment in 1983, takes aim at what Chinese regulators call “心机商标” (scheming trademarks) — marks deliberately designed to mislead consumers. The CNIPA confirmed that the State Council passed the revised draft in principle on March 13, 2026.

“Some enterprises go to great lengths in trademark registration and use, turning trademarks into ‘trick tools’ to mislead consumers,” Huang Haihua said, responding to a question from The Paper. “This behavior seriously disrupts trademark management order and harms consumers’ legitimate rights and interests.”

The draft introduces strict measures against bad-faith registrations, including fines of up to 100,000 yuan for applicants who knowingly apply for deceptive marks. For misleading use of registered trademarks, fines can reach up to five times the illegal turnover for amounts exceeding 50,000 yuan, or up to 250,000 yuan for smaller amounts. Repeated violations can result in trademark revocation.

Addressing the long-standing “registration-heavy, use-light” phenomenon, the draft stipulates that applications “not for use purposes” and “clearly exceeding normal business needs” will not be registered. Registered trademarks unused for three consecutive years without legitimate reason can be revoked by the CNIPA. The O’Brien & Wu law firm noted that the revision also shortens the opposition window from three months to approximately two months and expands protection for non-traditional marks including movement, sound, color, and position marks.

Antarctic Tourism: From Unregulated Growth to Legal Framework

The Antarctic Activities and Environmental Protection Law marks a significant step in regulating China’s growing presence in polar tourism. Under the draft, all Antarctic tourism activities will require a permit from the State Oceanic Administration, with unlicensed operations facing fines of up to one million yuan and a ten-year ban on reapplying for permits, as reported by The Paper.

Applicants must submit an activity plan, environmental impact assessment, emergency plan, property guarantee, and insurance documentation. The draft also imposes obligations on both tour operators and tourists, requiring compliance with Antarctic Treaty Consultative Meeting standards and regulations when visiting national research stations.

China Minutes reported that Antarctic tourism has become a new hotspot for Chinese outbound travel in recent years. The law aims to transition the sector from “野蛮生长” (unregulated growth) to a legally managed framework, aligning China with its obligations under the Antarctic Treaty system and associated environmental protocols.

Broader Implications

Taken together, these three reforms share common themes of dramatically increased penalties, enhanced regulatory oversight, and the closing of legal loopholes. The CPA law amendment signals a serious crackdown on financial fraud that has long concerned domestic and international investors in Chinese capital markets. The trademark revision provides stronger protections for brand owners, potentially improving China’s business environment. And the Antarctic regulation demonstrates Beijing’s commitment to international environmental obligations.

All three drafts will be reviewed at the 23rd session of the 14th NPC Standing Committee from June 23 to 26, with formal promulgation of the amended Trademark Law expected in the second half of 2026.