Summary of the Digital Technology Industry Law
Chapter I – General Provisions
This chapter includes:
• Defines the scope of regulation: development of the digital technology industry, semiconductor industry, artificial intelligence (AI), and digital assets.
• Provides definitions of key concepts: digital technology, digital technology industry, digital devices, digital workforce, digital enterprises, digital technology zones, semiconductor industry, and AI systems.
• Establishes State policies: investment incentives, human resource development, controlled sandbox testing, promotion of AI, development of digital data, and special incentives for semiconductors.
• Sets out State management responsibilities and international cooperation mechanisms.
• Lists prohibited acts.
Article 3. Interpretation of Terms
1. Digital technology refers to a set of scientific methods, technological processes, and technical tools used to produce, transmit, collect, process, store, exchange digital information and data, and digitize the physical world.
2. Digital technology industry is an economic technical sector based on the integration of science, technology, innovation, and digital transformation to create digital technology products and services; it is the next stage of development of the information technology industry.
3. Digital technology equipment means equipment used to produce, transmit, collect, process, store, exchange digital information and data, and digitize the physical world.
4. Digital technology industry human resources refers to individuals possessing qualifications, skills, and professional knowledge in digital technology who participate in producing digital technology products, providing digital technology services, or managing activities in the digital technology industry.
5. Digital technology enterprises are enterprises that produce digital technology products or provide digital technology services.
6. Concentrated digital technology zones are functional zones where activities such as research and development, support, training, innovation promotion, incubation of digital technology and digital technology enterprises, production and business of digital technology products and services, infrastructure provision, and service supply for organizations, enterprises, individuals, and other activities within the zone are concentrated.
7. Semiconductor industry refers to the industry that conducts research and development, design, manufacturing, packaging, and testing of semiconductor products, as well as the production of equipment, machinery, and tools serving these activities. The semiconductor industry plays an essential and foundational role in the digital technology industry.
8. Semiconductor products include semiconductor materials, devices, or electronic components made from semiconductor materials; they are among the key inputs for creating digital technology products.
9. Artificial intelligence systems are machine based systems designed to operate with varying levels of autonomy and capable of adapting after deployment to achieve explicit or implicit objectives, reasoning from input data to generate predictions, content, recommendations, or decisions that may affect the physical or digital environment. Artificial intelligence systems are digital technology products integrating hardware, software, and data.
Article 12. Prohibited Acts
1. Exploiting activities in the digital technology industry to infringe upon national interests, ethnic interests, national defense, national security, social order and safety, public interests; human rights, citizens’ rights, and the lawful rights and interests of organizations and individuals; or to negatively affect social ethics, human health, or life.
2. Violating intellectual property rights in the digital technology industry.
3. Using digital technology products or services to commit acts that violate the law.
4. Forgery or fraud to obtain State incentives or support; or to be exempted from liability during controlled testing of digital technology based products and services.
5. Obstructing lawful activities or supporting unlawful activities related to the digital technology industry conducted by organizations or individuals.
6. Using, providing, or deploying artificial intelligence systems to infringe upon national interests, ethnic interests, national defense, national security, social order and safety, public interests; human rights, citizens’ rights, and the lawful rights and interests of organizations and individuals; or to undermine social morality and cultural values.
Chapter II – Development of the Digital Technology Industry
This chapter includes:
• Regulates activities in the digital technology industry: production of hardware, software, digital content; provision of digital technology services.
• Identifies priority digital products/services and those restricted from transfer.
• Policies to promote R&D, financial support, and tax incentives.
• Human resource development: training support, scholarships, credit incentives, attraction of high quality experts and talents.
• Development of digital infrastructure: laboratories, data centers, digital technology zones.
• Policies on digital data and data quality.
• Investment incentives for producing digital products, semiconductor chips, and AI data centers.
• Support for digital technology startups.
• Market development and procurement incentives using State budget.
• Sustainable development and environmentally friendly products.
• Establishment of national information systems and digital technology industry databases.
Chapter III – Semiconductor Industry
This chapter includes:
• Development principles: focus on semiconductor chips, integration with global ecosystems, alignment with the electronics industry.
• Formulation of a national semiconductor strategy.
• Regulates activities across the semiconductor value chain: R&D, materials, equipment, design, manufacturing, packaging, testing.
• Special mechanisms: investment incentives, financial support, permission to import used equipment, and lists of encouraged materials/equipment.
• Support for enterprises participating in the semiconductor supply chain, including tax incentives, prototype development, and technology innovation.
Chapter IV – Artificial Intelligence
This chapter includes:
• Principles for developing and using AI: human centric, transparency, safety, risk control, compliance with data laws.
• Development of a national AI strategy.
• Management of high risk and high impact AI systems: technical requirements, transparency, data governance, supervision.
• Rules on AI identification: user notification during interaction, labeling of AI generated content.
• Responsibilities of entities developing, providing, and deploying AI systems.
Chapter V – Digital Assets
This chapter includes:
• Defines digital assets according to the Civil Code.
• Classification: virtual assets, cryptographic assets, and other digital assets.
• Management of digital assets: creation, issuance, storage, transfer, ownership establishment; anti money laundering requirements; conditions for operating cryptographic asset businesses.
Chapter VI – Implementation Provisions
This chapter includes:
• Amends and supplements several related laws (Information Technology, High Technology, Personal Income Tax, Labor, etc.).
• Effective date: from January 1, 2026; Articles 11, 28, and 29 take effect from July 1, 2025.
• Transitional provisions: existing concentrated IT zones are converted into digital technology zones.