Pulusi · Tongan

China Launches Smart Metering Regulation Pilot: What Foreign Founders Need to Know

China's market regulator has launched a smart metering regulation pilot in four provinces and municipalities. For foreign founders, this signals stricter oversight of measuring instruments used in trade, affecting sectors like EV charging, utilities, and fuel retail. Here's what it means for company registration and compliance.

Practical Takeaways for Foreign Founders

• Stricter metering oversight: Companies using measuring instruments in trade (e.g., EV charging piles, utility meters, taxi meters, electronic scales, fuel dispensers) should prepare for more digital, data-driven supervision.
• Pilot regions: Beijing, Shanghai, Jiangsu, and Sichuan are the first pilot areas, running until December 31, 2028.
• Compliance shift: The pilot aims to move from on-site inspections to remote, data-based monitoring, meaning companies must ensure their metering data is accurate and accessible.
• No new registration steps: The pilot does not change company registration procedures, but it may affect sector-specific licenses and ongoing compliance for businesses in the pilot regions.

What Is the Smart Metering Regulation Pilot?

China's State Administration for Market Regulation (SAMR) has approved a pilot program for smart metering regulation in four provincial-level market regulators: Beijing, Shanghai, Jiangsu, and Sichuan. The pilot targets new forms of metering fraud that are software-based and hidden, making them difficult to detect, gather evidence for, and trace. The goal is to upgrade the metering supervision system and protect fair market transactions.

The pilot runs until December 31, 2028.

Which Regions and Sectors Are Affected?

The pilot focuses on metering instruments that are closely tied to people's daily lives. Each region has specific areas of focus:

• Beijing: Electric vehicle charging piles, civil water, electricity, and gas meters (the "three meters"), and taxi meters.
• Shanghai: Civil water, electricity, and gas meters, and electronic pricing scales.
• Jiangsu: Full-chain smart supervision of electronic pricing scales.
• Sichuan: Electronic pricing scales and fuel dispensers.

For foreign founders, if your business involves any of these instruments in these regions—whether manufacturing, installing, or using them—you may be subject to the new supervisory approach.

What Does This Mean for My China Company Registration?

The pilot does not introduce new requirements for registering a company in China. However, it may affect sector-specific licenses and compliance obligations. For example:

• EV charging operators: If you plan to operate EV charging piles in Beijing, you will need to ensure your metering devices comply with the new smart supervision requirements. This may include providing remote access to metering data.
• Utility meter manufacturers or installers: In Shanghai, businesses dealing with water, electricity, or gas meters may face stricter data reporting obligations.
• Retailers using electronic scales: In Jiangsu and Sichuan, the full-chain supervision of electronic pricing scales means that from production to use, data may need to be integrated with regulatory platforms.
• Fuel retailers: In Sichuan, fuel dispensers will be under smart supervision, requiring accurate and transparent metering data.

When registering your company, you should consider these compliance requirements if your business falls into these sectors. You may need to obtain additional approvals or certifications from the local market regulator.

How Does the Smart Supervision Work?

The pilot introduces several digital measures:

• Smart metering platform: Automatic collection of metering data and remote monitoring of device status.
• Risk warning models: Real-time alerts and rapid response to anomalies such as metering fraud or equipment malfunctions.
• Cross-level data links: Breaking down information silos to enable non-on-site supervision.

The aim is to shift from "post-event investigation" to "pre-event prediction and in-process control," and from "single-point supervision" to "full-chain smart control." This means businesses should be prepared for continuous data reporting and remote monitoring.

What Should Foreign Founders Do?

• Assess your sector: Determine if your business uses or produces any of the metering instruments covered by the pilot.
• Check local requirements: If you operate in Beijing, Shanghai, Jiangsu, or Sichuan, consult with local authorities or professional advisors on specific compliance steps.
• Prepare for data integration: Ensure your metering devices can provide accurate data and potentially connect to regulatory platforms.
• Maintain records: Keep documentation of metering accuracy and calibration, as remote supervision may rely on data trails.
• Stay informed: SAMR will guide the pilot and distill replicable practices, which may expand to other regions and sectors in the future.

Conclusion

The smart metering regulation pilot is part of China's broader effort to digitalize market supervision. While it does not alter company registration procedures, it raises the bar for compliance in specific sectors. Foreign founders should factor these requirements into their business planning and ensure their operations align with the new supervisory model.

For assistance with company registration and compliance in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.