I. Regulatory Background and Legislative Developments The regulatory framework for China RoHS (Restriction of Hazardous Substances) was established by the Administrative Measures for the Restriction of the Use of Hazardous Substances in Electrical and Electronic Products, which took effect on July 1, 2016. This regulation applies to all electrical (and electronic) products manufactured, sold, or imported into China, covering consumer household appliances and electronics as well as industrial machinery and equipment. The regulation introduces specific compliance management requirements for certain products: Products listed in the Catalog of Compliance Management for the Restriction of Hazardous Substances in Electrical and Electronic Products (the “Compliance Management Catalog”) must meet strict limits on hazardous substances and undergo a formal conformity assessment. In November 2025, the Ministry of Industry and Information Technology(MIIT) issued the 2025 Edition of the Compliance Management Catalog (Draft for Public Comment) (see below for details).

I. Background It is not uncommon for foreign companies that have not established a representative office, subsidiary, or any other form of business presence in China to nonetheless carry out business activities—such as sourcing and procurement—through local teams based in China. In these circumstances, some foreign companies enter into service agreements with Chinese human resources providers, under which the provider acts as the nominal employer (commonly referred to as an Employer of Record, or "EOR"). The EOR formally enters into employment contracts with Chinese staff, handles payroll processing, and administers social insurance and housing fund contributions, thereby enabling the foreign company to meet its staffing needs in China. This model is attractive to many foreign companies because it allows them to commence operations in China quickly, with a relatively light asset footprint, while streamlining HR administration and maintaining greater flexibility in staffing.

When the terms “monopoly” or “market dominance” are mentioned, small and medium-sized enterprises (SMEs) often instinctively think of industry giants with massive social influence. However, in judicial practice, being investigated or penalized by antitrust authorities, or facing litigation, for alleged abuse of a dominant market position is not exclusive to large, well-known companies. Many enterprises that hold a dominant position in specific regions or market segments—even if they are not as well-known as large enterprises—may likewise face legal risks if their conduct violates antitrust laws.