China's national anthem - "March of the Volunteers" - will only be allowed at formal political gatherings, including the opening and closing of National People's Congress (NPC) sessions, and other major official events such as diplomatic occasions, state-run Xinhua news agency reported.
It will be illegal to use the national anthem during funerals, "inappropriate" private occasions, commercials or as background music in public places, according to the report.
The law, to be implemented from October 1, says violators, including those who maliciously modify the lyrics or distort and disrespect the national anthem can be detained for up to 15 days or held criminally liable.
China has already adopted laws covering its national flag in 1990 and national emblem in 1991.
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"The national anthem is different from other songs, it is the symbol of our country," said well-known music composer Jin Fuzai. "The law ensures people will be more serious when playing or singing the song."
Reports previously said that the national anthem should not be used in brand logos or advertisements, performed at funerals and other improper events or played as background music at public places.