The labeling exemption regulation for genetically modified (GM) foods, which functions to protect the lawful rights and interests of both consumers and producers and promote the healthy development of the GM food industry, is indispensable under the mandatory labeling regulation for GM foods. The inaccurate functional orientation of legislation for the GM food labeling exemption regulation in China leads to many defects including poor feasibility, low economy, little dynamics and scientific insufficiency as well as enlarged negative effects. Therefore, the labeling exemption regulation in China should be improved through establishing a supervisory system, executing threshold management, improving the classification catalogue and stepwise execution in order to bring it into full implementation. © 2016, China Food Publishing Company. All right reserved.