The Ministry of Environmental Protection ("MEP") has recently issued the Administrative Regulations for the Acquisition and Benefit Sharing of Biological Genetic Resources (Draft) (Draft for Comment) (the "Draft for Comment") for public comments before April 22, 2017.
The Draft for Comment contains four key systems, namely the category-based management system, the benefit sharing system, the international certificate system, and the exit control system. In particular, the Draft for Comment provides for respectively different regulatory measures for Chinese subjects, foreign entities and individuals that acquire and use China's biological genetic resources, stating that a foreign entity or individual may acquire and utilize China's biological genetic resources only by cooperating with a Chinese institution in a substantive manner and their research and development activities shall be carried out within the territory of China, with the critical part of research and development participated by Chinese scientific researchers and they also need to seek the examination and approval of the competent authority of biological genetic resources under the State Council. However, for Chinese entities and individuals, their acquisition and use of the said resources are further distinguished depending on the purposes for academic studies or for commercial development. Such acquisition and use for commercial development purposes must be reported to the competent authority of biological genetic resources under the provincial government for examination and approval.