The Standing Committee of China's National Assembly has considered a draft amendment to the national flag law, which prohibits the flying of the flag, according to state media.
Xinhua reported today that the bill would prohibit "indiscriminately throwing" the flag and require flags used in major events to be handled in a "proper" manner.
The bill also requires the flag to be flown when a "public health event" occurs that causes significant casualties.
The new bill aims to increase use and promote awareness of the flag, in which schools must include it in the curriculum as an important part of patriotism education, Xinhua added.
Previously, China's national flag law considered "openly and intentionally stinging, biting, defiling, doodling or trampling" the flag as an offense.
China's parliament is also considering amending the emblem law to prohibit commercial use.
The above changes will apply even in the Hong Kong Special Administrative Region, where the law of the flag was introduced into the Basic Law in 1997, when the UK handed the city to China.
The Chinese flag was born after the establishment of the People's Republic of China in 1949. It has a red background, consisting of a large yellow star, surrounded by four small stars in the corner of the left flag.