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JC Master Legal News Issue 897

Release Date:

2019-11-25 17:14

Key Takeaways for This Issue

The China Securities Regulatory Commission has released basic information on the capital market practice of securities‑qualified accounting offices.

As independent attestation entities, accounting offices serve as gatekeepers of financial information quality in the capital market and play an indispensable role in enhancing the reliability of such information.

National Bureau of Statistics: With transformation and upgrading gaining momentum, the automotive industry’s value added rose 4.9% in October.

The National Bureau of Statistics reported that in October, the value added of industrial enterprises above designated size increased by 4.7% year on year in real terms (adjusted for price factors), down 1.1 percentage points from September. Among them, the automotive manufacturing sector grew by 4.9%, accelerating by 4.4 percentage points from the previous month and slightly outpacing the overall average.

Announcement of the State Taxation Administration on Matters Relating to the Administration of Abnormal Value-Added Tax Credit Certificates, among Other Issues

The following matters concerning the administration of abnormal VAT credit certificates are hereby announced.

The Supreme People’s Court and other authorities have issued a document to advance the development of a diversified mechanism for resolving financial disputes.

To safeguard the legitimate rights and interests of financial consumers, prevent and defuse financial risks, and promote the sustained and sound development of the financial sector, on November 20, the Supreme People’s Court, the People’s Bank of China, and the China Banking and Insurance Regulatory Commission jointly issued the “Opinions on Comprehensively Advancing the Establishment of a Diversified Mechanism for Resolving Financial Disputes.”

The CPC Central Committee and the State Council have issued the “National Medium- and Long-Term Plan for Actively Addressing Population Aging.”

Table of Contents

Finance & Capital Markets

The China Securities Regulatory Commission has released basic information on the capital market practice of securities‑qualified accounting offices.

The China Securities Regulatory Commission has fully launched the “full circulation” reform for H-shares.

The China Securities Regulatory Commission has, in accordance with the law, initiated risk-resolution measures against Shanghai Huaxin Securities Co., Ltd.

Comprehensively Deepening Capital Market Reform and Continuously Enhancing the Quality of Listed Companies — Remarks by Vice Chairman Yan Qingmin at the 10th Caixin Summit

Chairman Yi Huiman attended and addressed the Mobilization Conference on Building a Culture in the Securities and Fund Industry.

Corporate & Commercial

National Bureau of Statistics: With transformation and upgrading gaining momentum, the automotive industry’s value added rose 4.9% in October.

Capital aggregation is shaping the ecosystem, and the 5G industry chain is accelerating its deployment.

Blockchain is all the rage, but don’t let these rumors leave you confused.

WeChat has become the most frequently used tool in online fraud.

The 2019 Benelux Chamber of Commerce Annual Conference was held in Beijing, bringing together participants to discuss the dynamism of economic and trade exchanges and emerging business opportunities.

Taxation

Announcement of the State Taxation Administration on Matters Relating to the Administration of Abnormal Value-Added Tax Credit Certificates, among Other Issues

Interpretation of the “Announcement of the State Taxation Administration on Matters Relating to the Restoration of Taxpayer Credit”

The State Taxation Administration has issued an announcement: Minor tax-related breaches of trust may be rectified under certain conditions.

Precisely identifying taxpayer needs: Big data makes tax administration more convenient.

The Exhibition of Contemporary Chinese Tax History Has Opened

Litigation & Arbitration

The Supreme People’s Court and other authorities have issued a document to advance the development of a diversified mechanism for resolving financial disputes.

The Supreme People’s Court has released ten typical cases of telecom and online fraud crimes.

The Ministry of Justice has issued a document to encourage high‑quality lawyers to participate in handling legal aid cases.

The “Rules on the Implementation of Educational Discipline by Primary and Secondary School Teachers (Draft for Public Comment)” Has Been Released.

Wuxi has issued the “Implementation Plan for Monitoring and Evaluating the Construction of a Law-Based Wuxi.”

Other

The CPC Central Committee and the State Council have issued the “National Medium- and Long-Term Plan for Actively Addressing Population Aging.”

Finance & Capital Markets

The China Securities Regulatory Commission has released basic information on the capital market practice of securities‑qualified accounting offices.

The capital market is a disclosure‑centric marketplace, and financial information constitutes its most fundamental and critical input. High‑quality financial information enables investors to make sound investment decisions, form rational price expectations, and enhance the market’s decisive role in allocating resources. At the same time, it helps to promptly identify risks, creating favorable conditions for safeguarding against systemic risk and thereby playing a pivotal role in ensuring that the capital market better serves the real economy, effectively manages financial risks, and protects the legitimate rights and interests of investors. As independent attestation providers, accounting offices serve as gatekeepers of financial information quality in the capital market, making them of paramount importance in elevating the overall quality of such information.

However, constrained by inadequate channels through which listed companies and investors access information about accounting offices, significant information asymmetry persists between these entities and the offices themselves. As a result, shareholders’ meetings and audit committees of listed companies struggle to make optimal decisions regarding the selection of accounting offices, while accounting offices, in turn, lack effective public oversight. This situation undermines the development of a healthy audit market characterized by “survival of the fittest” and hampers the full realization of accounting offices’ role in supporting capital markets. To mitigate information asymmetry among market participants, investors, and accounting offices, and to enable all stakeholders to assess an accounting office’s capacity to deliver high‑quality audit services—thereby helping listed companies make informed decisions on office selection—the China Securities Regulatory Commission has issued the “Basic Information on Capital Market Practice of Securities‑Qualified Accounting Offices” (hereinafter referred to as the “Basic Information”). The Basic Information is distinguished by four key features: first, it focuses exclusively on capital market practice, with all disclosed data closely tied to the securities‑related services provided by the offices; second, it emphasizes professional competence, including records of regulatory violations and penalties imposed on offices, as well as their experience and capabilities in auditing listed companies; third, all indicators are objective, with the vast majority being quantifiable; and fourth, rankings are presented without prioritization, arranged solely according to the pinyin order of the offices’ names. In addition, all securities‑qualified accounting offices have now published their basic capital market practice information on their official websites.

The CSRC’s recent release of the “Basic Information” represents an initial effort to enhance the transparency of accounting offices and does not constitute an assessment of their professional quality. Going forward, while intensifying oversight and enforcement against accounting offices and rigorously investigating and sanctioning violations in accordance with the law, the CSRC will also actively explore the establishment of an information disclosure regime for securities‑qualified accounting offices, further bolstering transparency and fostering an audit market environment characterized by healthy competition and survival of the fittest.

The China Securities Regulatory Commission has fully launched the “full circulation” reform for H-shares.

To advance high‑level opening-up of the capital market and promote the sound development of H‑share companies, the China Securities Regulatory Commission successfully completed a pilot program in 2018 to achieve “full circulation” for three H‑share issuers. During the pilot phase, both markets operated smoothly, yielding positive results and receiving favorable feedback from all stakeholders. With the approval of the State Council, the CSRC is now rolling out the H‑share “full circulation” reform on a nationwide basis. The CSRC has published on its website the “Guidance on Applying for ‘Full Circulation’ of Unlisted Domestic Shares by H‑Share Companies” (CSRC Announcement [2019] No. 22), along with a checklist of application materials and key review considerations for H‑share “full circulation.” Eligible H‑share companies, as well as those planning to launch an initial public offering of H‑shares, may apply for “full circulation” in accordance with applicable laws and regulations.

The China Securities Regulatory Commission will advance this reform in a proactive yet prudent manner, in accordance with the law and regulatory requirements, following the principle of “launching one after another as each is ready.” The outstanding domestic unlisted shares held by individual H‑share issuers account for a relatively small proportion—less than 7% of the total market capitalization of H‑shares listed on the Hong Kong Stock Exchange. Once approved, these domestic unlisted shares may be converted into H‑shares and listed for trading on the Hong Kong Stock Exchange. Depending on the progress of technical system development, the functionality enabling domestic shareholders of eligible H‑share companies to increase their holdings of the company’s Hong Kong‑listed shares has not yet been put into operation; it will be activated in due course, following the completion and refinement of the relevant technical systems.

Building on the experience gained from pilot programs, steadily advancing the “full circulation” reform for H‑shares will help align the interests of all types of shareholders in H‑share companies and enhance corporate governance, enabling domestic enterprises to better leverage both domestic and international markets and resources for growth, while also fostering the development of Hong Kong’s capital market. Going forward, the China Securities Regulatory Commission will continue to earnestly implement the requirements of the “delegation, regulation, and service” reform, further refine regulatory frameworks and institutional arrangements for overseas listings, and provide stronger support for enterprises and the real economy.

The China Securities Regulatory Commission has, in accordance with the law, initiated risk-resolution measures against Shanghai Huaxin Securities Co., Ltd.

In view of the fact that Shanghai Huaxin Securities Co., Ltd. (hereinafter referred to as Huaxin Securities) has, in violation of laws and regulations, provided financing to its shareholder, Shanghai Huaxin International Group Co., Ltd., and its affiliated parties; engaged in asset management business in breach of rules; and failed to meet the risk‑control requirements, including net capital, thereby jeopardizing its ability to continue operating as a securities office and seriously infringing upon the legitimate rights and interests of its clients, the China Securities Regulatory Commission (CSRC), pursuant to the relevant provisions of the Securities Law, the Regulations on the Supervision and Administration of Securities Companies, and the Regulations on the Risk Disposal of Securities Companies, has decided, effective November 15, 2019, to revoke all business licenses of Huaxin Securities and to entrust Grandall Law Office (Beijing) with the establishment of an administrative liquidation team to carry out the administrative liquidation of Huaxin Securities. During the administrative liquidation period, the CSRC has appointed Guotai Junan Securities Co., Ltd. to assume custody over Huaxin Securities’ client‑related businesses, including securities brokerage. At the same time, the CSRC has dispatched a risk‑disposal on-site working group to supervise and provide guidance to Huaxin Securities, the administrative liquidation team, and the custodial entity. The administrative liquidation period shall, in principle, not exceed twelve months.

In response to Huaxin Securities’ violations of laws and regulations, from May to August 2018, the China Securities Regulatory Commission (CSRC) imposed regulatory measures, including restrictions on shareholder rights, suspension of asset management business, and orders to make corrections. In August 2018, the CSRC initiated an investigation into Huaxin Securities. To date, Huaxin Securities has yet to rectify the relevant illegal and non-compliant practices. On November 15, 2019, the CSRC, in accordance with the law, issued an administrative penalty revoking all business licenses of Huaxin Securities, along with corresponding regulatory measures.

Since the outbreak of legal and regulatory risks at Huaxin Securities, the China Securities Regulatory Commission has dispatched a risk‑monitoring task force to the office to conduct a special inspection and oversee its operations and management. At present, Huaxin Securities has undertaken a comprehensive contraction of its business; risks have been effectively contained, client assets are secure, its inter‑dealer business has been wound down, and staff remain largely stable. During the administrative liquidation period, the custodial team will continue to ensure the normal operation of securities brokerage and other related services, maintaining the continuity and stability of ongoing business; meanwhile, the administrative liquidation team will, in accordance with the law, organize the transfer of securities‑related assets and provide appropriate arrangements for clients and employees.

At present, the securities industry as a whole operates in a well‑regulated manner, maintains adequate capital levels, and demonstrates strong risk‑resilience. The risk‑resolution measures applied to Huaxin Securities constitute an isolated case. Going forward, the China Securities Regulatory Commission will advance the resolution process in a prudent and orderly fashion, safeguard the legitimate rights and interests of clients and other stakeholders in accordance with the law, and effectively uphold the sound and stable development of the capital market.

Comprehensively Deepening Capital Market Reform and Continuously Enhancing the Quality of Listed Companies — Remarks by Vice Chairman Yan Qingmin at the 10th Caixin Summit

I. The comprehensive deepening of reforms in the capital market has begun to yield tangible results.

Since the 18th National Congress of the Communist Party of China, the Party Central Committee with Comrade Xi Jinping at its core has put forward a systematic and scientifically grounded vision for the reform and development of the capital market, charting the course for capital market reform in the new era. In particular, at the 2018 Central Economic Work Conference, General Secretary Xi Jinping emphasized the need to “deepen reform to build a capital market that is standardized, transparent, open, dynamic, and resilient,” offering an authoritative articulation of the new-era positioning and strategic significance of the capital market. The China Securities Regulatory Commission has earnestly implemented the spirit of General Secretary Xi Jinping’s important instructions, and, under the unified leadership and coordination of the Financial Stability and Development Committee of the State Council, has adhered to the overarching principle of seeking progress while maintaining stability, upheld the reform orientation of market‑based and law‑based approaches, drawn on international best practices, and demonstrated respect for the market, the rule of law, professional expertise, and risk management. Working in concert with all stakeholders, the Commission has pooled strong synergies, focused on optimizing capital market supply, advanced key institutional innovations, and fulfilled the requirements of supply‑side structural reform in the financial sector.

First, a broad consensus on reform has been officely established. Over the past two decades and more, the development of China’s capital market has been a process of learning from others, embracing innovation, and pursuing reform. We have made substantial progress through diligent exploration in areas such as institutional frameworks and regulatory practices. However, it is also clear that our capital market continues to grapple with coexisting challenges: immature investors, an incomplete foundational institutional framework, an imperfect market structure, and a regulatory system that falls short of current needs. Structural and systemic issues remain unresolved, leaving the market ill‑suited to meet the demands of high‑quality real‑economy growth. Governments at all levels, listed companies, investors, and the media have all reached a strong consensus on deepening reform across the board, eagerly anticipating reforms that will foster the market’s long-term stability and sound development. This favorable external environment provides a solid foundation for advancing these reforms.

Second, the reform roadmap has been clearly defined. Since the beginning of this year, in line with the new development philosophy, the China Securities Regulatory Commission has mobilized dedicated teams to conduct research and deliberations on key, strategic issues that have drawn concentrated market attention, thereby formulating a comprehensive plan for deepening capital market reform. At the symposium on comprehensively deepening capital market reform held within the CSRC system in early September, 12 priority tasks were outlined, including leveraging the STAR Market as a testing ground. This serves as the blueprint for the next phase of comprehensive, in-depth capital market reforms, and has received extensive coverage in the media. As can be seen, these measures encompass both market‑wide and industry‑specific reforms, as well as internal improvements; they address both near‑term implementation priorities and medium‑ to long‑term objectives. In short, this represents a comprehensive, systemic reform effort.

Third, reform measures are being steadily implemented. In designing these reforms, we have adhered to the principle of rolling out one measure only after it is fully mature. To date, several reform initiatives have been launched and have yielded initial results. The major reform of establishing the STAR Market and piloting the registration-based IPO system has been successfully put into practice; as of the end of October, 40 companies had been listed, and innovations in trading mechanisms and ongoing regulatory frameworks have been gradually put to the test. Key reforms—such as enhancing the quality of listed companies and developing a multi-tiered capital market—are advancing steadily, significantly bolstering the capital market’s resilience to external shocks. This strong start to the comprehensive deepening of capital market reforms has fueled widespread anticipation among all market participants for the introduction of additional reform measures.

This round of comprehensive, in-depth capital market reforms features numerous measures and significant力度, drawing close attention from the market and requiring the support and coordinated efforts of all stakeholders. The China Securities Regulatory Commission will, in accordance with the principles of “seeking progress while maintaining stability, ensuring effective coordination, and expediting implementation where feasible,” accelerate the rollout and effective execution of these reforms.

II. Vigorously Promote the Enhancement of Listed Company Quality

The CPC Central Committee and the State Council attach great importance to enhancing the quality of listed companies, and General Secretary Xi Jinping has issued a series of important instructions and directives. In December 2018, at the Central Economic Work Conference, General Secretary Xi Jinping set forth the major task of “improving the quality of listed companies.” In July 2019, at a meeting of the Political Bureau of the CPC Central Committee, he urged that “the STAR Market must stay true to its mission, effectively implement the registration-based system centered on information disclosure, and raise the quality of listed companies.” More recently, during his inspection tour in Shanghai, General Secretary Xi Jinping once again emphasized that “the establishment of the STAR Market and the pilot registration-based system must remain officely focused on their intended purpose and work to improve the quality of listed companies.” Accordingly, advancing the enhancement of listed-company quality is both a foundational task for the capital market’s comprehensive deepening of reform and a major political mission for the CSRC system.

At present, listed companies are playing an increasingly prominent role as leaders and models in the operation of the national economy. With more than 3,700 listed offices spanning all 90 major sectors of the economy, they account for over 70 percent of China’s top 500 enterprises. In the first three quarters of this year, real‑economy listed companies generated operating revenue of RMB 29.45 trillion and net profit of RMB 1.52 trillion—total profits equivalent to half that of all large‑scale industrial enterprises nationwide during the same period. The capital market’s function as a “barometer” is gradually being reflected through these listed companies. However, violations of laws and regulations remain frequent among some listed offices, risks continue to surface, the foundation for their sustained, healthy development remains fragile, and stakeholders remain largely dissatisfied with the overall quality of listed companies.

III. Striving to Enhance Corporate Governance of Listed Companies

The quality of listed companies encompasses a wide range of dimensions, including operational performance, accounting fundamentals, corporate governance capabilities, and the reliability of disclosed information, with corporate governance serving as the foundational pillar. Sound, transparent, and effectively balanced corporate governance is a critical safeguard for the sustained and healthy development of listed companies. In 2015, the Organisation for Economic Co-operation and Development (OECD) revised and issued the “Principles of Corporate Governance,” while in 2018, the China Securities Regulatory Commission revised and released the “Corporate Governance Code for Listed Companies.” These updates respond to evolving domestic and international market conditions and trends in corporate governance, introducing a series of new requirements that are grounded in China’s national context and aligned with international best practices.

Corporate governance is an essential component of the national governance system, reflecting the level of modernization in economic governance. The China Securities Regulatory Commission’s primary mandate is regulation; fostering improved corporate governance and standardized operations among listed companies constitutes a key aspect of their day-to-day oversight. Overall, after years of practical experience, listed companies have emerged as the most well‑regulated segment in China’s efforts to establish a modern enterprise system, having generally put in place robust governance frameworks and organizational structures.

Chairman Yi Huiman attended and addressed the Mobilization Conference on Building a Culture in the Securities and Fund Industry.

In August this year, the CPC Committee of the China Securities Regulatory Commission established a leading group for building industry culture and issued a work plan, outlining the sector’s overarching goals, guiding principles, priority tasks, and institutional safeguards. The CSRC system and industry institutions are called upon to thoroughly study and implement the decisions and arrangements of the CPC Central Committee and the State Council, as well as the important instructions of leading officials of the State Council, to align thinking, build consensus, and accelerate the development of an industry culture characterized by compliance, integrity, professionalism, and soundness, thereby providing value guidance and spiritual support for the long-term stability and healthy development of the capital market.

I. A sound and robust industry culture is a key manifestation of the securities and fund industry’s soft power and core competitiveness.

Culture is the soul of a country and a nation. A cause without cultural underpinning is bound to lack vitality and sustainability. Building a sound culture within the securities and fund industry is of paramount importance for inheriting and promoting the industry’s spirit, cultivating and consolidating its core values, and guiding and driving high-quality development. Over the past two to three decades, China’s securities and fund industry has forged ahead through numerous challenges, steadily strengthening its developmental momentum and cultural DNA in practice, and has initially established a distinctive Chinese‑style industry culture. However, overall, compared with the rapid expansion of “hard indicators” such as industry scale, capital strength, and profitability, the development of “soft power”—including corporate culture and professional ethics—has lagged behind. This imbalance and lack of coordination between cultural and operational dimensions is particularly pronounced, while the absence of a healthy investor culture and an ethical internal culture continues to constrain the comprehensive improvement of operational quality and efficiency. Industry participants must, from a strategic perspective, fully recognize the profound significance of cultural development, accurately grasp its underlying principles, adopt a problem‑oriented approach, address weaknesses, reinforce areas of strength, continuously enhance the industry’s soft power, and actively cultivate a positive, constructive industry image.

II. Accurately Grasping the Core Principles and Key Implications of the Securities and Fund Industry’s Culture in the New Era

At the symposium on securities and fund institutions held in July this year, it was proposed to progressively cultivate an industry culture characterized by “compliance, integrity, professionalism, and prudence.” This eight-character guideline strikes a balance between tradition and innovation; it not only reflects the imperative of implementing the core socialist values but also aptly captures the distinctive features of the securities and fund sector. The China Securities Regulatory Commission stands ready to work with industry participants to engage in thorough discussions, pool collective wisdom, and continually enrich and advance the substance of this industry culture.

Compliance is the bottom line. The capital market is a rules‑based marketplace; when the rule of law thrives, so does the market. As the most important professional institutions in the capital market, securities and fund companies serve as its gatekeepers and must make compliance with laws, regulations, and supervisory requirements the paramount principle guiding all business activities. Operating in full compliance has always been an inviolable baseline for the survival and sustainable development of these offices—both a hard‑won lesson learned through years of industry practice and a costly reminder of what can go wrong when that baseline is crossed. Only by conducting business in strict accordance with the law can offices earn the trust of their clients, the market, and society at large, thereby securing a favorable environment for growth. By flouting regulatory constraints, pursuing speculative regulatory arbitrage, or skirting the edges of the law, offices may reap short‑term windfall gains—but in the end, they only dig their own grave, inflicting severe damage on individuals, their own organizations, and the reputation of the entire industry. Securities and fund institutions must place compliance at the forefront of their priorities, uphold the principle that compliance creates value and that everyone bears responsibility for it, and lead by example as steadfast believers in and practitioners of the law. Compliance must become ingrained in their very DNA, deeply rooted in their minds, and etched into their core values.

III. Roadmap and Key Measures for Strengthening Cultural Development in the Securities and Fund Industry

According to the Outline for Building a Culture in the Securities and Fund Industry, the period from August 2019 to December 2021 constitutes the foundational phase of industry‑wide cultural development. Through two to three years of concerted efforts, the goal is to establish a comprehensive, well‑structured, and effectively applicable industry‑wide cultural framework; significantly enhance the industry’s public image and social reputation; and secure a leading role for industry culture in the broader societal cultural and ethical landscape, thereby laying a solid foundation for the sector’s long-term growth. On this basis, the China Securities Regulatory Commission has set out phased development objectives and a roadmap. First, the period from August to December 2019 will serve as the publicity and advocacy phase, with key tasks including the release of the Outline for Building Industry Culture, the issuance of an industry‑wide cultural‑building initiative, the convening of a mobilization and deployment conference, and the dissemination of case studies to raise awareness and provide guidance. Second, 2020 will be the pilot implementation phase, focusing on identifying and recognizing model examples, refining classification‑based evaluation criteria, and strengthening the integrity‑management system. Third, 2021 will mark the full‑scale rollout phase, during which industry‑specific cultural systems, mechanisms, and an enabling ecosystem aligned with business development are expected to be largely in place. Starting in 2022, ongoing efforts will reinforce and consolidate the achievements of industry‑wide cultural development, ensuring its continued advancement. Securities and fund operating institutions, self‑regulatory organizations, and regulatory authorities are all required to clarify their objectives, assume clear responsibilities, and implement work plans in a transparent, results‑oriented manner, ensuring that all relevant requirements are fully and faithfully executed.

IV. Uphold the use of scientific methods to comprehensively elevate the level of cultural development in the securities and fund industry.

Cultural development is a foundational undertaking that underpins the sound growth of the securities and fund industry and enhances its core competitiveness. It requires coordinated efforts across all dimensions, levels, and components, fostering consensus and pooling resources, while emphasizing systemic integration, holistic approaches, and synergistic collaboration. Moreover, it calls for deepening the comprehensive embedding of cultural principles into the industry’s operations and management, with sustained, long-term commitment and meticulous attention to detail, ensuring that policies are implemented thoroughly, precisely, and effectively.

The development of industry culture must be grounded in concrete actions; it is not a mere formality. We must ensure that theoretical efforts are translated into tangible results, demonstrating real progress and delivering measurable outcomes. It is imperative to avoid merely chanting lofty slogans, publishing glossy magazines, or staging flashy events. Industry culture-building must cultivate distinctive characteristics. Rather than spreading resources too thinly across all fronts, we should focus on key priorities, use pilot initiatives to drive broader change, and leverage flagship projects to advance the overall corporate cultural agenda. Building industry culture requires the concerted efforts of all stakeholders. As the saying goes, “Many hands make light work.” Cultivating a robust industry culture is a shared responsibility among all participants in the capital market. We must fully harness the combined strengths of self‑governance, self‑discipline, and regulatory oversight, seamlessly integrating internal momentum with external pressure to jointly foster a resilient cultural framework and fortify safeguards against moral hazard. Sustained, long-term commitment is essential. Cultural development is a foundational endeavor that rarely yields quick, visible results; it demands genuine conviction, painstaking effort, and unwavering dedication—grounded in practical action and sustained momentum.

Commercial & Corporate

National Bureau of Statistics: With transformation and upgrading gaining momentum, the automotive industry’s value added rose 4.9% in October.

By product category, in October, automobile sales totaled 2.279 million units, down 2.1%. Specifically, passenger car sales reached 899,000 units, a decline of 8.7%; SUV sales stood at 814,000 units, up 2.6%; and new-energy vehicle sales amounted to 85,000 units, down 39.7%.

In response, National Bureau of Statistics spokesperson Liu Aihua stated during the press briefing, “Based on October data, automobile production, which has been growing at a persistently low pace since the beginning of the year, is showing signs of improvement. In October, the decline in monthly auto output narrowed, and the sector’s value added increased by 4.9%, accelerating by 4.4 percentage points compared with the previous month. Looking within the automotive industry, production of models such as SUVs and MPVs has shifted from decline to growth, indicating that the transformation and upgrading of traditional industries are continuing to advance.”

Capital aggregation is shaping the ecosystem, and the 5G industry chain is accelerating its deployment.

Capital is rapidly converging and flowing into the sector, as companies strive to build industrial ecosystems; “killer” applications are emerging in droves, and device manufacturers and operators are stepping up their efforts on the terminal side. With the commercial rollout of 5G gaining momentum, the entire industry value chain is now fully mobilized.

From a corporate perspective, if companies fail to board this “giant vessel” now, they risk being left behind. The heightened enthusiasm at the 2019 China Mobile Global Partner Conference—far surpassing previous years—underscores that 5G has entered a phase of accelerated industrial‑chain deployment. At the exhibition, a wealth of application experiences unfolded before attendees; at the summit forums, signing ceremonies followed one after another. During the event, China Mobile Chairman Yang Jie announced plans to refine investment strategies in key 5G sectors, aiming to mobilize investments totaling hundreds of billions of yuan over the next five years. Additionally, China Mobile unveiled a 30-billion-yuan 5G industry fund, further concentrating resources on leading enterprises and emerging players across priority industries.

Recently, China Unicom announced the establishment of a 5G innovation fund with a total size of RMB 10 billion, earmarked for investments in 5G‑related applications such as smart homes, smart healthcare, and intelligent manufacturing. Meanwhile, reports indicate that China Telecom is also preparing a RMB 10 billion 5G industry fund. Clearly, if the upstream and downstream players in the industry chain fail to board this “giant vessel” of 5G, it will be far too late.

Harness the connectivity and aggregation effects of capital. The development of next-generation mobile communication technologies is by no means limited to benefiting telecom operators alone. For instance, the rollout of 4G not only spurred collective breakthroughs across the communications‑related manufacturing sectors—such as network equipment, terminals, chips, and test instruments—as well as in software services, but also catalyzed the widespread adoption of mobile‑internet‑based services like e‑commerce, mobile payments, and the sharing economy.

The development of 5G is particularly promising. Drawing on the lessons learned from 4G, 5G must effectively leverage capital to foster connectivity and aggregation, thereby building a collaborative ecosystem characterized by complementary capabilities, positive synergy, joint problem‑solving, and open sharing—ultimately expanding the 5G “mobile community.” At the 2019 China Mobile Global Partner Conference, China Mobile unveiled its “Double Ten‑Billion Plan” for 2020. In explaining this initiative, Vice President Jian Qin clarified that the plan comprises two components: a ten‑billion‑yuan ecosystem‑onboarding program and a ten‑billion‑yuan revenue‑sharing scheme. Specifically, China Mobile will allocate ten billion yuan to attract ecosystem partners, with 3.5 billion yuan earmarked for ecosystem‑related benefits, 1.5 billion yuan for smart home‑connected devices, and 5 billion yuan for large‑screen content. Additionally, it will share up to ten billion yuan in incremental revenue across mobile cloud services, DICT (big data and information and communication technology) integrated applications, and industry‑specific smart hardware, working together with its partners to drive growth.

Meanwhile, in 2020, China Mobile aims to acquire 70 million 5G subscribers, sell 300 million 5G services, 100 million 5G smartphones, 50 million smart home devices, and 15 million industry‑specific modules. Clearly, opportunities span a wide range of areas—from smart home devices and large‑screen content to mobile cloud services and industrial IoT hardware—each presenting significant market potential. Upstream and downstream players in the value chain have already begun capitalizing on these prospects. At the conference, China Mobile Migu joined forces with partners including Konka Group, Skyworth CoolOpen, and Hisense to establish the “Smart Large‑Screen Advertising Ecosystem Consortium,” recognizing that, as China Mobile’s “Double Ten Billion Plan” gains momentum and its home‑based large‑screen business expands, operator‑dedicated network advertising will emerge as a new blue ocean in large‑screen marketing—and a key driver for unlocking the home‑connected‑device traffic market.

In addition, during the conference, Guokewei, a leading chip supplier in the smart set-top box, intelligent surveillance, and IoT sectors, signed a strategic cooperation agreement with China Mobile IoT. The two parties will engage in close collaboration across industries such as 4K/8K ultra‑high definition, the Internet of Things, and inter‑process communication. Lu Xinrong, General Manager of Guokewei’s Intelligent Multimedia Business Unit, told an Economic Daily reporter: “Guokewei will aggressively expand into the operator market, providing a full range of chips and solutions—including ultra‑HD and intelligent surveillance—for the 5G era.” With the 5G “butterfly” already flapping its wings, it will further accelerate the digital, networked, and intelligent transformation of the economy and society, serving as a key driving force behind paradigm shifts in economic development, technological application, business competition, and consumer behavior.

Blockchain is all the rage, but don’t let these rumors leave you confused.

The wealth‑creation myth surrounding Bitcoin has ignited a mind‑bending technology—blockchain—and a virtual currency whose price once soared to $19,850 (December 2017), giving rise to a red‑hot crypto market. Meanwhile, opportunists have exploited the blockchain hype by drafting white papers, issuing tokens, and orchestrating media campaigns to drive up prices; after listing on exchanges for just a few days, they can raise tens of millions of dollars.

Blockchain has taken off, and with it have come all sorts of rumors.

Is blockchain the same as Bitcoin? Bitcoin and blockchain are more like the chicken-and-egg relationship. On November 1, 2008, a post appeared on a cryptography mailing list: “I am working on a new electronic cash system that is fully peer-to-peer, with no trusted third party.” The author signed it as Satoshi Nakamoto. Soon after came the first block in the blockchain, known as the genesis block. Aside from the genesis block’s unique ID, every subsequent block carries two IDs: one for itself and another referencing the preceding block. In essence, Bitcoin was the first application of blockchain technology, and blockchain itself evolved from Bitcoin—but the two are not identical. Put another way, Bitcoin and blockchain resemble the chicken-and-egg dilemma: it’s hard to say which came first. What is clear is that blockchain technology, born out of Bitcoin, has undergone numerous formal transformations over time and has spawned innovations tailored to different application domains. “Bitcoin is the quintessential example of a public blockchain—a system where anyone worldwide can join at any time to read data, send verifiable transactions, and compete to maintain the ledger,” explains Chen Shanhua, head of technology at Beijing Siyuan Zhengtong Technology Group. “Ethereum, Hyperledger, and other platforms have introduced smart contracts into the blockchain, using contractual agreements to define transactional behavior between parties. Smart contracts have opened up entirely new avenues for blockchain applications. Moreover, by encapsulating underlying protocols within user-friendly frameworks and providing comprehensive development documentation, these platforms have lowered the barrier to entry for blockchain adoption, accelerating its deployment across diverse industries.”

Is a blockchain just a single chain? In fact, it comes in many forms, and intra-chain mechanisms can be designed to enable cross-chain interoperability. As Chen Shan-hua explains, for example, in the public‑sector domain, ledger‑based systems such as directory chains, credential chains, and service‑item chains can be established to isolate data, separating public‑facing information from sensitive, private data, thereby ensuring robust data protection. From Bitcoin to Ethereum and then to Hyperledger, and from public blockchains to consortium chains and private chains, viewed across different dimensions, blockchain manifests in a variety of forms. With its growing adoption across multiple sectors, blockchain is increasingly becoming a critical foundational infrastructure across industries—far beyond the realms of cryptocurrencies and financial services.

Will blockchain expose private data? By employing hybrid encryption, users can encrypt their sensitive information with their own public key, while keeping the corresponding private key securely in their possession. Only the user can decrypt the ciphertext. During data sharing and transmission, both parties use each other’s public keys to encrypt the data, enabling secure peer-to-peer communication and sharing. In terms of cryptographic algorithms, blockchains typically rely on internationally standardized ECC and China’s SM2. Theoretically, decryption is extremely difficult—practically infeasible—and, with blockchain’s “one person, one key” approach, the risk of data leakage or compromise is further minimized. Reports indicate that since Bitcoin’s inception, no hacker has ever intercepted the data carried by the blockchain itself; any issues that have arisen have stemmed from external factors, such as vulnerabilities at exchanges. In reality, the security challenges of blockchain technology lie in the possibility of undiscovered vulnerabilities within its open-source code, which could be exploited by attackers. Hacker attacks on blockchain systems can target six distinct layers: the application layer, the smart contract layer, the incentive layer, the data layer, and others. The 360 Security Team conducted security assessments on a public blockchain and an exchange, identifying 42 vulnerabilities, including 29 high‑severity flaws that could jeopardize user account security. Wang Weibo of 360 Group’s Information Security Department stated, “By analyzing past security incidents and using blockchain‑related attacks as a starting point, we can gain deep insights into hackers’ techniques and develop targeted defenses against various types of threats.”

Is all information on the blockchain accurate? Ensuring the authenticity of on-chain data still requires complementary institutional frameworks. Blockchain is tamper‑proof; if someone alters the data in a particular node—for example, changing Zhang San’s transfer of 1 Bitcoin to Li Si into 2 Bitcoins—the timestamp would no longer match, and that node would cease to be the original, thus being detected. Moreover, the blockchain network maintains numerous replicas, so any falsified data can be corrected. Consequently, once data is recorded on the blockchain, it cannot be altered. But does “tamper‑proof” mean that all information is correct? Blockchain can only impose constraints on virtual‑world data; it has no means of verifying the authenticity of real‑world data before it is added to the chain. Wei Kai, deputy director of the Cloud Computing and Big Data Research Institute at the China Academy of Information and Communications Technology, notes that linking on-chain data with real-world data remains a significant challenge. Each industry faces its own pain points when adopting blockchain—for instance, in the traceability sector: how can we ensure that the data entered onto the chain corresponds precisely to the traced product, without the risk of substitution? Whether the information written onto the chain is genuine and accurately reflects reality is a question that blockchain technology alone cannot resolve; external mechanisms are indispensable. Wei Kai argues that guaranteeing the authenticity of on-chain data also calls for the development of supporting institutional frameworks.

WeChat has become the most frequently used tool in online fraud.

The Supreme People’s Court’s “Special Report on Judicial Big Data: Characteristics and Trends of Cybercrime” (hereinafter referred to as the “Report”) indicates that, from 2016 to 2018, more than 48,000 cybercrime cases were concluded. Nearly 20 percent of online fraud cases were perpetrated after obtaining citizens’ personal information.

Sun Fuhui, deputy director of the Information Center of the Supreme People’s Court, stated that both the number of cybercrime cases and their share of all criminal cases have been rising year by year. Fraud committed using the internet is most prevalent in the southeastern coastal regions, with Fujian, Zhejiang, Shanxi, and eight other provinces or municipalities recording a proportion of such offenses that exceeds the national average. On average, each cybercrime case involves 2.73 defendants; three-quarters of defendants fall within the 20‑to‑40 age range, with those aged 28 accounting for the largest group, while the share of defendants under 18 has been declining annually. Among cybercrime defendants, the largest cohort—37.21%—is employed in information transmission, computer services, and software industries.

In cybercrime cases, nearly one-third are instances of online fraud. In recent years, the share of online fraud within the overall fraud caseload has risen markedly, from 7.67% in 2017 to a sharp increase to 17.61% in 2018.

In 2018, WeChat surpassed QQ as the most frequently used tool in online fraud offenses, with over half of all such cases involving the use of WeChat to carry out fraudulent schemes. Among defendants, 31.52% impersonated others to perpetrate fraud, and the proportion of cases exploiting recruitment as a lure saw a significant increase in 2018. In impersonation‑based online fraud cases, perpetrators often posed as women or acquaintances; nearly 20% of these cases exhibited characteristics of precision‑targeted fraud.

According to Luo Guoliang, Deputy Chief Judge of the Third Criminal Division of the Supreme People’s Court, in recent years, fraud schemes have become increasingly sophisticated and diverse. For example, the “pig‑butchering” scam combines romance‑and‑dating fraud with online gambling fraud. Perpetrators typically target individuals on major dating websites or social media platforms, using romantic relationships as a pretext to lure them to pre‑arranged offshore gambling sites for betting, or to overseas online investment platforms, where they claim victims can exploit digital vulnerabilities to turn a profit, thereby inducing them to pour large sums of money into these schemes. Criminals refer to the victims as “pigs,” describe the process of establishing a romantic relationship as “raising pigs,” and call the actual act of defrauding others “slaughtering pigs.”

In addition, another common scam is the “low‑interest, no‑deposit chain scheme.” Fraudsters exploit borrowers’ eagerness to access funds by touting low interest rates and no collateral, but then demand various handling fees upfront. What begins as a small loan can ultimately leave victims paying a steep price. According to Luo Guoliang, these scams capitalize on two key human traits: greed and haste. He advises that to effectively guard against telecom and online fraud: first, cultivate a strong awareness of personal data protection—never store personal information on your phone, and never share it lightly with strangers; second, adhere to several “don’ts”: don’t transfer money to unfamiliar accounts, don’t connect to unknown Wi‑Fi networks, don’t disclose SMS verification codes to others, and don’t readily trust online dating or social‑media acquaintances. Above all, avoid the temptation to seek quick gains or dream of getting rich overnight. As the saying goes, “If it sounds too good to be true, it probably is.” If you encounter anything suspicious, report it promptly and cooperate fully with law enforcement to help solve the case.

The 2019 Benelux Chamber of Commerce Annual Conference was held in Beijing, bringing together participants to discuss the dynamism of economic and trade exchanges and emerging business opportunities.

On November 15, 2019, the annual conference of the Netherlands–Belgium–Luxembourg Chamber of Commerce was held in Beijing, under the theme “A Trip to the Benelux.” Representatives from leading Dutch, Belgian, and Luxembourgish enterprises operating in China, along with consuls from the respective embassies, engaged in on-site discussions and presentations showcasing achievements in economic and trade cooperation, jointly exploring the dynamism and business opportunities across the three countries in areas such as economy, culture, and trade.

In 2001, the Bencham Chamber of Commerce, jointly established by the chambers of commerce of the Netherlands, Belgium, and Luxembourg, became one of the most active business platforms operating in China. Today, it has grown into a pivotal institution in the field of Sino‑foreign economic cooperation and exchange. Each year, the Bencham Chamber’s annual conference not only honors companies that have demonstrated outstanding performance but also serves as a testament to the continued expansion and deepening of cooperation between China and the three Benelux economies.

This time, the century-old Dutch dairy company Primavita was invited to attend the BenCham 2019 Annual Awards Ceremony and, alongside KLM Royal Dutch Airlines and ING Bank, was honored with the BenCham Spotlight Award for Outstanding Performance by Dutch Enterprises in China. At the event, the Dutch Ambassador to China highly commended Primavita’s achievements over its 15 years in the Chinese market and personally presented the award. Li Chao, the Chinese head of Primavita, stated: “At present, China’s infant formula industry is undergoing unprecedented changes under the country’s stringent regulatory framework, with major domestic and international brands and manufacturers accelerating adjustments and improvements across the entire supply chain. Cutting-edge technology, uncompromising quality, a well‑established brand reputation, and strong consumer trust remain essential ingredients for success in this market. As a company dedicated to infant nutrition, we are acutely aware of our responsibilities and have never relaxed our commitment to high standards and rigorous quality control. 2019 was a year of focused, meticulous efforts to elevate quality to new heights. In March, Primavita’s Dutch factory successfully obtained registration approval for its ‘Holelai’ series of formula milks. Through continuous collaboration with our Dutch team to refine formulations and upgrade both hardware and software across the entire value chain, we have remained steadfastly committed to delivering safe, reliable dairy products to an ever‑growing number of infants and young children. As one of the first batches of imported infant formula to undergo overseas facility inspections and pass all required testing and certification criteria, this milestone marks a significant step forward—providing a new benchmark and reference point for overseas factories in registration, production, testing, and R&D, and establishing a new standard for the industry.”

Organizing high‑level business events has long been one of the core activities of the Benelux Chamber of Commerce. As the association’s signature event, the annual Best of BenCham Awards Ceremony aims to highlight the successful experiences of Benelux companies in China over the course of the year and to foster the growth of their operations in the Chinese market. With the deepening economic ties between China and the Netherlands, Belgium, and Luxembourg, an increasing number of Benelux enterprises are placing greater emphasis on long‑term development in China and within the Chinese market, seeking to make meaningful contributions to Chinese society and the Chinese economy.

Taxation TAXATATION

Announcement of the State Taxation Administration on Matters Relating to the Administration of Abnormal Value-Added Tax Credit Certificates, among Other Issues

The following matters concerning the administration of abnormal value-added tax credit certificates (hereinafter referred to as “abnormal certificates”) are hereby announced:

I. Value-added tax special invoices that fall under any of the following circumstances shall be classified as abnormal vouchers:

(1) Value-added tax special invoices that have not been issued or have been issued but not yet uploaded, which are stored on tax control-specific devices lost or stolen by the taxpayer;

(2) Special VAT invoices issued to taxpayers classified as “abnormal accounts” that have neither been reported to the tax authorities nor had their taxes paid in accordance with applicable regulations;

(3) Special VAT invoices identified through audit and reconciliation in the VAT invoice management system as “reconciliation discrepancies,” “missing copies,” or “cancelled”;

(4) Where, following big data analysis conducted by the State Taxation Administration and the provincial tax authorities, it is found that the value-added tax special invoices issued by a taxpayer are suspected of being falsely issued or that consumption tax has not been paid in accordance with applicable regulations;

(5) Value-added tax special invoices falling under the circumstances specified in Article 2, Paragraph (1) of the “Announcement of the State Taxation Administration on Issues Concerning the Identification and Handling of Value-Added Tax Special Invoices Issued by Enterprises That Have Fled or Lost Contact” (State Taxation Administration Announcement No. 76 of 2016).

II. Where a general VAT taxpayer declares the deduction of an abnormal credit note and simultaneously meets the following conditions, the corresponding special VAT invoice shall be included in the scope of abnormal credit notes:

(1) The cumulative amount of input VAT attributable to abnormal vouchers accounts for 70% or more of the total input VAT shown on special VAT invoices issued during the same period;

(2) Where the cumulative input VAT attributable to abnormal vouchers exceeds RMB 50,000.

For abnormal certificates for which the taxpayer has neither yet claimed input tax credit nor filed an export tax rebate application, or for which the input tax has already been transferred out, the corresponding input tax shall not be included in the calculation of the input tax attributable to such abnormal certificates.

III. Where a general VAT taxpayer obtains a special VAT invoice that falls within the scope of abnormal vouchers, it shall be handled in accordance with the following provisions:

(1) For input VAT that has not yet been declared for credit, no credit shall be allowed for the time being. For input VAT that has already been declared for credit, unless otherwise provided, it shall uniformly be treated as an adjustment to transfer out the input tax amount.

(2) For transactions that have not yet been declared for export tax rebates, or that have been declared but for which the rebate has not yet been processed, no export tax rebate shall be granted, unless otherwise provided. Where taxpayers subject to the VAT exemption‑credit‑refund method have already obtained an export tax rebate, they shall reverse the input VAT credit by the amount of VAT indicated on the special VAT invoices falling within the scope of abnormal vouchers. For taxpayers subject to the VAT exemption‑refund method who have already received an export tax rebate, the tax authorities shall, in accordance with the applicable current regulations, recover any rebate amounts corresponding to the special VAT invoices included in the scope of abnormal vouchers.

Where a taxpayer’s special VAT invoices obtained during the period in which export tax refunds (or exemptions) have been suspended due to fraudulent claims are classified as abnormal vouchers, they shall be handled in accordance with paragraph (1) of this Article.

(3) Where a consumer‑taxpayer uses taxed consumer goods—purchased or obtained through commissioned processing and subsequently recovered—as raw materials to continuously produce taxable consumer goods, and has not yet declared a deduction for the consumption tax already paid on such raw materials, the input tax credit shall be temporarily disallowed. If a deduction has already been claimed, the amount of consumption tax eligible for credit in the current period shall be reduced; any shortfall shall be supplemented by paying the corresponding tax.

(4) Taxpayers rated as Credit Grade A who have obtained abnormal certificates and have already declared input VAT credit, processed export tax refunds, or claimed consumption tax credits may, within ten working days from the date of receiving notification from the tax authority, submit a verification request to the competent tax authority. Upon verification by the tax authority, if the taxpayer is found to comply with the applicable provisions governing the deduction of input VAT, the granting of export tax refunds, or the crediting of consumption taxes, no adjustments shall be made, such as reversing input VAT, recovering previously refunded amounts, or reducing the consumption tax credit allowable for the current period. If the taxpayer fails to submit a verification request within the prescribed time limit, the relevant treatment shall be carried out in accordance with paragraphs (1), (2), and (3) of this Article upon expiration of the deadline.

(5) If a taxpayer disputes an abnormal voucher determined by the tax authority, they may submit a verification request to the competent tax authority. Upon verification, if the voucher complies with the relevant provisions governing the current‑period input VAT credit or export tax rebate, the taxpayer may continue to file for such credit or re‑file for an export tax rebate; if it meets the requirements for consumption tax credit and the corresponding consumption tax has already been paid, the taxpayer may continue to claim such credit.

IV. Taxpayers identified through big data analysis by the State Taxation Administration and provincial tax authorities as posing tax-related risks shall not issue invoices offline. When using invoicing software, their authorized personnel must undergo real-name verification of their identity information in accordance with the methods prescribed by the tax authorities.

V. Taxpayers newly registered as general VAT taxpayers may not issue invoices offline within three months from the date of their first invoice issuance, except for specific taxpayers who, in accordance with relevant regulations, do not use online tax services or do not meet the applicable risk‑based criteria.

VI. This Announcement shall take effect as of February 1, 2020. Article 2, Paragraph (2) of the “Announcement of the State Taxation Administration on Issues Concerning the Identification and Handling of Value-Added Tax Special Invoices Issued by Enterprises That Have Fled or Lost Contact” (State Taxation Administration Announcement No. 76 of 2016), the “Notice of the State Taxation Administration on Establishing a Rapid Response Mechanism for Out-of-Control VAT Invoices” (issued under Document No. Guoshui Fa [2004] No. 123, as amended by State Taxation Administration Announcement No. 31 of 2018), Article 1, Paragraph (2) and Article 2 of the “Notice of the State Taxation Administration on the Handling of Suspected Irregularities in Value-Added Tax Special Invoices Identified through the Golden Tax Project’s VAT Administration Information System” (Guo Shui Han [2006] No. 969), the “Notice of the State Taxation Administration on Matters Relating to the Careful Collection of Data on Out-of-Control VAT Invoices” (Guo Shui Han [2007] No. 517), the “Reply of the State Taxation Administration on the Handling of Out-of-Control Value-Added Tax Special Invoices” (Guo Shui Han [2008] No. 607), and Article 2, Paragraph (2) of the “Announcement of the State Taxation Administration on Issues Concerning the Use of Value-Added Tax Special Invoices by Foreign Trade Enterprises for Export Rebate Processing” (State Taxation Administration Announcement No. 22 of 2012) are hereby repealed simultaneously.

This is hereby announced.

Interpretation of the “Announcement of the State Taxation Administration on Matters Related to the Administration of Abnormal VAT Credit Certificates”

I. Background to the Issuance of the Announcement

In recent years, in order to thoroughly implement the directives of the CPC Central Committee and the State Council, the tax authorities have continuously advanced the “delegation, regulation, and service” reform, optimized the business environment, further stimulated the entrepreneurial and innovative vitality of market entities, and steadily enhanced taxpayers’ sense of gain. At the same time, however, a small number of lawbreakers have exploited measures designed to facilitate tax administration by registering “shell companies” that conduct no actual business operations and exist solely to issue false invoices, thereby fraudulently obtaining special VAT invoices. Following the commission of illegal activities involving the issuance of fictitious invoices, these offenders swiftly abscond or go out of contact, deliberately evading tax supervision. Such behavior not only severely disrupts tax order but also gravely infringes upon the legitimate rights and interests of law-abiding taxpayers. To promote the modernization of the tax governance system and governance capacity, strengthen the tax regulatory framework, further curb the practice of issuing false invoices, safeguard tax order, optimize the business environment, and protect the lawful rights and interests of taxpayers, this announcement is hereby issued.

II. According to the relevant regulations, which special value-added tax invoices are classified as abnormal VAT credit notes (hereinafter referred to as “abnormal vouchers”)?

(1) Value-added tax special invoices that have not been issued or have been issued but not yet uploaded, which are stored on tax control-specific devices lost or stolen by the taxpayer.

(2) Special VAT invoices issued to taxpayers classified as “abnormal accounts” that have either not been reported to the tax authorities or for which taxes have not been paid in accordance with applicable regulations.

(3) Value-added tax special invoices identified through audit and reconciliation in the VAT invoice management system as “mismatched,” “missing a copy,” or “cancelled.”

(4) Where big data analysis conducted by the State Taxation Administration and the provincial tax authorities reveals that the special VAT invoices issued by a taxpayer are suspected of being falsely issued or that consumption tax has not been paid in accordance with applicable regulations.

(6) Where a general VAT taxpayer applies for the credit of an abnormal certificate and simultaneously meets the following conditions, the corresponding special VAT invoice issued shall be included in the scope of abnormal certificates:

1. The cumulative amount of input VAT attributable to abnormal vouchers accounts for 70% or more of the total input VAT shown on special VAT invoices issued during the same period;

2. Where the cumulative input VAT attributable to abnormal vouchers exceeds RMB 50,000.

III. How should a general VAT taxpayer handle the situation when a special VAT invoice it has obtained is classified as an abnormal voucher?

Where a general VAT taxpayer’s special VAT invoice falls within the scope of abnormal vouchers, it shall be handled in accordance with the following provisions:

IV. If a general VAT taxpayer’s special VAT invoice is classified as an abnormal voucher and the input VAT has already been declared for deduction, must the corresponding input VAT be uniformly transferred out?

In accordance with the provisions of this announcement, taxpayers rated as Tax Credit Grade A who have obtained abnormal certificates and have already declared input VAT credit, processed export tax refunds, or claimed consumption tax credits may, within 10 working days from the date of receiving notification from the tax authority, submit a verification request to the competent tax authority. Upon verification by the tax authority, if the circumstances comply with the relevant regulations governing the deduction of input VAT, export tax refunds, or consumption tax credits, no adjustments shall be made, such as reversing input VAT, recovering previously refunded amounts, or reducing the current period’s allowable consumption tax credit. If the taxpayer fails to submit a verification request within the prescribed time limit, the relevant treatment shall be carried out in accordance with items (1), (2), and (3) of Article 3 of this announcement upon expiration of the deadline.

V. If a taxpayer disputes the tax authority’s determination of an abnormal voucher, how should it be handled?

In accordance with the provisions of the announcement, if a taxpayer disputes an abnormal voucher determined by the tax authority, they may submit a verification request to the competent tax authority. Upon verification, if the voucher complies with the relevant regulations governing the current‑period input VAT credit or export tax rebates, the taxpayer may continue to file for such credits or re‑file for export tax rebates; if it meets the requirements for consumption tax credit and the corresponding consumption tax has already been paid, the taxpayer may continue to claim such credit.

VI. What regulations apply to taxpayers identified by tax authorities through big data analysis as posing tax-related risks, as well as to taxpayers newly registered as general VAT taxpayers?

In accordance with the announcement, taxpayers identified through big‑data analysis by the State Taxation Administration and provincial tax authorities as posing tax‑related risks are prohibited from issuing invoices offline. When using invoicing software, their authorized personnel must undergo real‑name identity verification in the manner prescribed by the tax authorities. Newly registered general VAT taxpayers may not issue invoices offline within three months from the date of their first invoice issuance, except for those who, pursuant to relevant regulations, do not use online tax services or who meet specific risk‑exemption criteria.

The State Taxation Administration has issued an announcement: Minor tax-related breaches of trust may be rectified under certain conditions.

The State Taxation Administration has issued the “Announcement on Matters Relating to Tax Credit Restoration.” Effective January 1, 2020, corporate taxpayers subject to tax credit management may undertake tax credit restoration by making credit commitments and rectifying untrustworthy behaviors, thereby further encouraging and guiding taxpayers to strengthen their awareness of lawful and honest tax compliance and actively fostering a new tax‑supervision mechanism based on credit.

According to reports, credit restoration is neither a simple “clean‑up” of records nor a straightforward “exit from sanctions.” In line with the principle of limited‑scope restoration, the Notice specifies 19 types of tax‑credit‑related breaches that are either minor in nature or have not caused significant adverse social impact, along with their corresponding restoration conditions. These include 15 instances of failing to file tax returns, remit taxes, or submit supporting documents within the prescribed time limits, as well as 4 circumstances that automatically result in a Class D rating. Based on past tax‑credit evaluation data, such situations occur relatively frequently and affect a broad range of taxpayers. Following the implementation of the Notice, eligible taxpayers may apply to the tax authorities for tax‑credit restoration.

Taxpayer credit restoration is predicated on the rectification of untrustworthy conduct. The Notice clarifies that taxpayers in any of the following four circumstances may apply for taxpayer credit restoration only if they correct their untrustworthy behavior within the prescribed time limit—

If a taxpayer has failed to file tax returns, pay taxes, or submit supporting documentation within the statutory time limits but has subsequently rectified the deficiencies, their evaluation score shall be adjusted in accordance with the “Scope and Standards for Tax Credit Restoration,” and a tax credit rating shall be reassessed.

Taxpayers who, without having paid the taxes, late payment penalties, and fines as determined by the tax authorities, have not yet committed a criminal offense and whose tax credit rating has been directly assigned to Grade D, may apply for tax credit restoration only if they fully pay the outstanding taxes, late payment penalties, and fines within 60 days after the expiration of the deadline specified in the tax authority’s decision.

Taxpayers classified as “abnormal accounts” must fulfill their corresponding legal obligations and, only after the tax authorities have legally lifted their abnormal status, may they apply for tax credit restoration. For taxpayers with abnormal‑account status, tax credit restoration may be requested only once per tax year. A tax year runs from January 1 to December 31 of the Gregorian calendar.

Taxpayers whose tax credit rating has been restored to a level other than D may, through their directly responsible person or other taxpayers under their management, apply to the competent tax authority to have any prior D‑level tax credit associations lifted.

Precisely identifying taxpayer needs: Big data makes tax administration more convenient.

In recent years, tax authorities have integrated big data into tax administration, continuously improving the tax governance system and refining governance approaches. They have also launched a series of innovative service initiatives that, while enhancing taxpayer convenience, have further elevated the efficiency and effectiveness of tax collection and administration.

Hubei Tax Authorities: Smart Monitoring Service Platform Launched to Ensure Businesses Fully Benefit from Preferential Policies

“The company benefited from newly introduced policy‑related tax reductions and exemptions totaling RMB 53,458.77, all of which were tax cuts. For detailed information on the reductions and exemptions, please click ‘Tax and Fee Reduction Inquiry.’ Please be advised.” On November 4, Zhong Ming, Finance Manager at Wuhan Keqian Biological Co., Ltd., logged into the provincial electronic tax bureau and accessed the list of tax and fee reductions for October this year, which includes itemized breakdowns of tax reductions by category as well as the corresponding actual taxable amounts. In August this year, the Hubei Provincial Tax Service Bureau of the State Taxation Administration officially launched an intelligent monitoring platform for tax and fee reductions, continuously tracking the status of such measures across the province’s 1.58 million taxpayers (excluding individuals). The platform provides tailored “benefit statements” to all taxpayers, ensuring that policy‑driven benefits are fully realized. Since its launch just over two months ago, the platform has issued cumulative reminders to 17,012 taxpayers who were eligible but had not yet claimed their entitled tax and fee reductions, helping them secure tax concessions totaling RMB 26.4532 million.

Zhejiang Tax Authorities: Data Sharing and Mutual Recognition to Foster a Better Business Environment

“I originally thought it would take at least a week, but it was done in just one hour. I only had to make this one trip—much more convenient than before.” Mr. Lu from Shangcheng District, Hangzhou, was pleasantly surprised and highly satisfied after obtaining the business license and tax invoices required to start Hangzhou Qingshen Network Technology Co., Ltd. in just one hour. This remarkably streamlined process is made possible by data sharing and mutual recognition among tax authorities, market regulators, and other relevant departments. In Zhejiang Province, an increasing number of businesses are reaping the benefits of such data‑driven collaboration. In recent years, the Zhejiang Provincial Tax Service Bureau of the State Taxation Administration has focused on two key priorities—the “at most one visit” reform and the government’s digital transformation—leveraging data sharing and openness as a strategic cornerstone. By concentrating on the practical application of shared data, the bureau has contributed tax‑related expertise and support to comprehensively improve the business environment. Starting a company involves numerous steps, including applying for a business license, registering for tax purposes, completing real‑name authentication, determining applicable tax types, and obtaining invoices. Previously, a newly established enterprise had to spend more than ten days: first securing a business license from the market regulator, then visiting the tax service hall to register and request invoices. To address this, the Zhejiang Provincial Tax Service Bureau, in collaboration with the Zhejiang Provincial Administration for Market Regulation, has implemented joint processing of business registration through data sharing. Once a company completes its industrial and commercial registration, the relevant data is transmitted to the tax authorities within 15 minutes, enabling the initiation of tax‑related procedures. Building on this, by sharing invoice‑application information, the authorities have promoted an integrated, paperless, end‑to‑end online process for certificate issuance and invoice collection. As a result, the time required for new enterprises across the province to obtain invoices has been reduced to under half an hour, allowing businesses to complete their establishment within a single day. According to statistics, since the system went live in October 2018, it has already benefited more than 2.5 million taxpayers.

Yinchuan Tax Authority: With the “Appointment & Number Collection” System, Tax Services Are No Longer Clogged

“Back then, as soon as the filing and payment period rolled around, I’d have to arrive at the service hall early just to grab a number. Now, with this appointment‑and‑number‑collection system, I can book in advance. Look—my appointment for today is already set, so I can get my business done right away. It’s really convenient,” said Yuan Mei, an accountant at Ningxia Sanchuang Advertising & Decoration Co., Ltd., as she opened her phone and checked the appointment she had made yesterday for a declaration slot between 10:00 a.m. and 11:00 a.m. The WeChat “Appointment‑and‑Number” system integrates multiple functions, including demand management, data analysis, and performance monitoring. By analyzing big‑data inputs such as appointment‑based tax‑filing information, it has transformed tax services from a largely intuitive, ad‑hoc approach into a refined, systematic one. On the one hand, taxpayers can now view real‑time counts of people waiting and queue‑progress at each service hall, enabling them to choose their preferred hall and time with greater flexibility—and they can cancel their appointments at any moment, significantly reducing both time and administrative costs. On the other hand, tax authorities can dynamically adjust window allocations based on appointment volumes and types of transactions, thereby lowering the rate of idle service windows.

Since the system’s two-month trial run, taxpayers have used the “Appointment & Number Collection” platform for more than 63% of their transactions, with this share increasing month by month. This has transformed tax services—from in-person visits to online access, from physical counters to digital platforms, and from paper-based processes to fingertip convenience—delivering a completely new tax‑filing experience for taxpayers.

The Exhibition of Contemporary Chinese Tax History Has Opened

The Beijing Tax Museum is proudly presenting the “Exhibition on the History of Contemporary Chinese Taxation.” This exhibition, from a national perspective, traces the evolution of China’s tax system and the development of its tax categories over the 70 years since the founding of the People’s Republic of China, while also highlighting the new concepts and initiatives driving tax modernization in the new era.

According to reports, the Beijing Tax Museum officially opened to the public free of charge in May 2016. Its permanent exhibitions include “An Exhibition of Chinese Tax History” and “An Exhibition of Contemporary Beijing Tax History.” Spanning approximately 1,400 square meters, the museum showcases over 3,000 cultural relics and historical materials—ranging from bronze artifacts and ceramics to ironware, currency, official documents, and contracts—arranged in a thoughtfully curated display. State-of-the-art presentation techniques such as holographic imaging and projection further enhance the experience, enabling visitors to gain a vivid understanding of tax history and to appreciate, through comparisons between past and present, the profound relationship between taxation and the rise and fall of the nation.

The “Exhibition of Contemporary Chinese Tax History” was originally titled the “Beijing Exhibition of Contemporary Tax History.” Located on the basement level of the Tax Museum, it covers an exhibition space of 790 square meters and showcases over 600 historical artifacts and documents. The main thematic sections include taxation in the early years of the People’s Republic of China, taxation during the planned economy era, taxation in the initial stages of reform and opening-up, taxation in the socialist market economy period, tax modernization in the new era, and remarks by national leaders on finance and taxation. Supplementary sub‑themes comprise the evolution of tax categories in New China, the agricultural tax in New China, Beijing’s local–national tax administration, and international taxation.

This newly redesigned exhibition, “A Display of Contemporary Chinese Tax History,” has received strong support from the State Taxation Administration. Here, you can view such treasures as Premier Zhou Enlai’s handwritten appointment letter for the deputy director of the Tianjin Municipal Tax Bureau, Comrade Zhao Zhao’s manuscript recalling the first National Tax Conference, firearms permits issued to tax officials in the early years of the People’s Republic of China, personal belongings of the renowned fiscal historian Cui Jingbo, tax receipts and vouchers from various eras, tax‑related badges from provinces and municipalities, tax registration certificates, tax uniforms of different designs, and a wealth of original historical documents on finance and taxation. You will also encounter numerous precious vintage photographs, period newspapers and magazines, posters that capture the spirit of their times, simulated office settings, and cutting‑edge electronic tax‑service models of the new era. In addition, the Beijing Tax Museum features a dedicated timeline wall tracing the evolution of China’s tax system since the founding of the People’s Republic, where you can follow the entire trajectory of tax types—birth, transformation, and eventual abolition—over the past seven decades, as well as an overview of all currently levied taxes nationwide.

In the “Exhibition on the Contemporary History of Taxation in China,” the Beijing Tax Museum dedicates extensive space to highlighting the modernization of taxation since the 18th National Congress, as China has entered a new era. The exhibition is organized around ten key themes—raising fiscal resources through law-based tax collection, advancing development through tax reform, providing taxpayer‑friendly and high‑quality services, leveraging technology to enhance tax administration and efficiency, fostering multi‑stakeholder collaboration for shared governance, strengthening Party building through vertical integration and horizontal coordination, improving leadership teams via performance management, managing cadres with digital personnel systems, cultivating outstanding talent through targeted programs, and ensuring rigorous oversight while treating grassroots officials with care—enabling visitors to gain a clear, firsthand understanding of the tax authorities’ innovative achievements and their new operational model: delivering excellent tax services while leading the way in driving tax‑related development.

“The Exhibition of Contemporary Chinese Tax History” is an extension of and a learning outcome from the first phase of the “Remain True to Our Original Aspiration and Keep Our Mission Officely in Mind” thematic education campaign organized by the Beijing Municipal Tax Service of the State Taxation Administration. It has also been designated as a visiting and study base for the second phase of this campaign. To date, more than 60 organizations and departments have scheduled visits. On November 19, the Haidian District Tax Service of the Beijing Municipal Tax Service of the State Taxation Administration, in collaboration with Beitapingzhuang Subdistrict and several enterprises within the subdistrict’s jurisdiction, hosted the themed event “Joining Hands to Uphold Our Original Aspiration, Optimize the Business Environment, and Promote Development” at the Beijing Tax Museum. Representatives from the enterprises, the subdistrict, and the tax service engaged in joint discussions and exchanged views on the history of taxation.

The Beijing Tax Museum has announced that visitors can now make reservations to tour the museum. After booking, guests need only present a valid ID—such as an identity card—to exchange for a ticket at the museum. With complimentary professional guided tours, a bilingual Chinese–English audio guide system, and richly illustrated explanatory texts, visitors are sure to enjoy an exceptional experience. In addition, the museum has prepared exclusive surprise gifts for the first 1,000 attendees who successfully complete the interactive quiz and win. Reservations can be made by calling 010-84299713 or 010-84299357. The museum is open Tuesday through Saturday, except on statutory holidays.

LITIGATION & ARBITRATION

The Supreme People’s Court and other authorities have issued a document to advance the development of a diversified mechanism for resolving financial disputes.

To safeguard the legitimate rights and interests of financial consumers, prevent and defuse financial risks, and promote the sustained and sound development of the financial sector, on November 20, the Supreme People’s Court, the People’s Bank of China, and the China Banking and Insurance Regulatory Commission jointly issued the “Opinions on Comprehensively Advancing the Construction of a Diversified Dispute Resolution Mechanism for Financial Disputes” (hereinafter referred to as the “Opinions”).

The Opinions set forth provisions regarding the scope of cases covered by the diversified dispute‑resolution mechanism for financial disputes and the system for judicial conofficeation of mediation agreements, stating that contract and tort disputes arising from financial transactions between equal civil and commercial entities may be submitted to a financial dispute mediation organization for mediation. Mediation agreements reached under the auspices of a mediator from such an organization have the nature of civil contracts. After being signed and sealed by the mediator and the financial dispute mediation organization, the parties may apply to the people’s court with jurisdiction for conofficeation of their legal effect. Once conofficeed by the people’s court as valid, mediation agreements that specify the obligor and the subject matter of performance may, if one party refuses to perform, be subject to compulsory enforcement upon application by the other party.

The “Opinions” set forth provisions governing the workflow of the diversified dispute‑resolution mechanism for financial disputes. In the course of accepting and adjudicating financial dispute cases, people’s courts shall implement the principle of “mediation first, with mediation and adjudication working in tandem.” For cases that are amenable to mediation, and in accordance with the principles of voluntariness and legality, courts shall, through pre‑filing assignment, post‑filing entrustment, or in‑proceeding invitation, guide the parties to resolve their disputes via financial dispute mediation organizations. People’s courts at all levels must effectively leverage the role of the diversified dispute‑resolution mechanism, integrating its development with the construction of litigation service centers. Financial dispute mediation organizations and mediators should be incorporated into litigation service centers; where conditions permit, dedicated financial dispute mediation rooms should be established to enable specially invited mediation organizations and mediators to carry out their work. Courts are also required to establish and maintain up‑to‑date registers of specially invited mediation organizations and mediators, providing parties to financial disputes with comprehensive and accurate information on available mediation entities and practitioners. Furthermore, efforts should be made to explore the appointment of mediators from financial dispute mediation organizations as people’s jurors, thereby enhancing the professionalization of judicial proceedings. People’s courts and financial dispute mediation organizations may set up mutual workstations to strengthen two‑way coordination and improve the convenience and public‑benefit orientation of mediation services.

The Opinions emphasize that all departments should strengthen division of labor and collaboration to ensure the effective implementation of mechanisms for the diversified resolution of financial disputes. It is necessary to enhance the level of informationization in financial dispute resolution, establish and refine databases of typical financial dispute cases and financial complaint records, deepen the sharing of judicial and financial information, and fully leverage the positive role of smart court and smart finance initiatives in promoting the diversified resolution of financial disputes. People’s Courts at all local levels, branches of the People’s Bank of China at all levels, dispatched agencies of the China Banking and Insurance Regulatory Commission, and local financial dispute mediation organizations shall jointly establish working groups to advance the development of diversified mechanisms for resolving financial disputes, hold regular joint meetings to exchange updates on their work, strengthen information sharing, and coordinate the mediation of major, high‑profile financial dispute cases. They should also evaluate and summarize the progress of diversified dispute resolution efforts, continuously refine the relevant mechanisms, and prioritize the joint establishment of early‑warning and risk‑alert systems to prevent individual cases from triggering systemic financial risks. Furthermore, through model cases, intensified public awareness campaigns, and enhanced financial consumer education, all parties should work together to raise awareness of and build trust in diversified mechanisms for resolving financial disputes among disputing parties and the general public, actively encouraging stakeholders to resolve financial disputes through mediation and to protect their rights in a lawful and rational manner.

It is understood that the Second Civil Division and the Case Filing Division of the Supreme People’s Court, together with the Financial Consumer Rights Protection Bureau of the People’s Bank of China and the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission, will establish a working group on the diversified dispute resolution mechanism for financial disputes, which will be specifically responsible for guiding and coordinating the development of this mechanism. The Opinions stipulate that each higher people’s court shall provide guidance, oversight, and inspection to ensure that the people’s courts within its jurisdiction fully implement all requirements of the diversified dispute resolution mechanism for financial disputes. Local people’s courts at all levels, branches of the People’s Bank of China at all levels, and branch institutions of the China Banking and Insurance Regulatory Commission are required to promptly report their work progress and any issues encountered to the Supreme People’s Court, the People’s Bank of China, and the China Banking and Insurance Regulatory Commission.

The Supreme People’s Court has released ten typical cases of telecom and online fraud crimes.

I. Case of Fraud and Infringement of Citizens’ Personal Information Involving Chen Wenhui and Six Others

(1) Basic Facts of the Case

From November 2015 to August 2016, the defendants Chen Wenhui, Huang Jinchun, Chen Baosheng, Zheng Jinfeng, Xiong Chao, Zheng Xiancong, Chen Fudi, and others formed overlapping criminal groups. They purchased student information and residential‑property purchase data online, then rented premises in Jiujiang and Xinyu in Jiangxi Province, Qinzhou in Guangxi Zhuang Autonomous Region, Haikou in Hainan Province, and other locations as bases for their fraud. Posing as officials from the Education Bureau, the Finance Bureau, and the Real Estate Administration, they targeted高考 (college‑entrance exam) candidates under the pretext of disbursing financial aid to impoverished students and housing subsidies. They made more than 23,000 fraudulent phone calls, defrauding victims of over RMB 560,000 and causing the death of the victim, Xu Yuyu.

(II) Judgment Outcome

This case was tried in the first instance by the Intermediate People’s Court of Linyi City, Shandong Province, and in the second instance by the Higher People’s Court of Shandong Province. It has now attained legal effect.

The court held that the defendants, including Chen Wenhui, formed a telecom fraud criminal gang with the intent of illegal appropriation, impersonated staff members of state organs, fabricated false facts, and made telephone calls to defraud others of their money; such conduct constitutes the crime of fraud. Furthermore, Chen Wenhui obtained personal information of citizens by unlawful means, which also constitutes the crime of infringing upon citizens’ personal information. In the fraud schemes carried out in Jiujiang City and Xinyu City, Jiangxi Province, Chen Wenhui played an organizing and commanding role, making him a principal offender. By impersonating a state organ employee to defraud students of their funds and thereby causing the death of the victim, Xu Yuyu, Chen Wenhui was sentenced to a heavier penalty at the court’s discretion. Accordingly, the defendant Chen Wenhui was sentenced to life imprisonment for the crimes of fraud and infringement of citizens’ personal information, with deprivation of political rights for life and confiscation of all his personal property; the defendants Zheng Jinfeng, Huang Jinchun, and others were sentenced to fixed-term imprisonment ranging from fifteen years to three years for the crime of fraud.

(III) Typical Significance

In recent years, telecom and online fraud cases have been occurring with alarming frequency, seriously jeopardizing the property security and legitimate rights and interests of the public, undermining social trust, and threatening social harmony and stability. Xu Yuyu, a Shandong college‑entrance exam candidate, tragically died suddenly after being defrauded of more than 9,000 yuan—funds she had painstakingly raised for her tuition—leaving her family in profound grief and anger. The incident sparked widespread public outcry and once again brought intense attention to the need to crack down on telecom and online fraud. To strengthen enforcement and punishment, in December 2016, the Supreme People’s Court, the Supreme People’s Procuratorate, and the Ministry of Public Security jointly issued the “Opinions on Several Issues Concerning the Application of Law in Handling Criminal Cases of Telecom and Online Fraud,” stipulating that offenders who cause serious consequences such as the victim’s suicide, death, or mental disorder; who impersonate judicial or other state officials to perpetrate fraud; who organize or direct criminal gangs engaged in telecom and online fraud; or who defraud students of their property shall be subject to enhanced penalties at the court’s discretion. This case represents the first major case tried under the provisions of these Opinions. In accordance with the principle of proportionality between crime, culpability, and punishment, the defendant Chen Wenhui was sentenced to the maximum penalty, fully reflecting the spirit of strictly and lawfully punishing perpetrators of telecom and online fraud.

II. Case of Du Tianyu’s Infringement of Citizens’ Personal Information

(1) Basic Facts of the Case

The defendant Du Tianyu, by implanting a Trojan horse program, illegally gained unauthorized access to the Shandong Province 2016 Ordinary Higher Education Entrance Examination Information Platform website, seized administrative control over the site, and illicitly obtained more than 640,000 pieces of personal information pertaining to candidates in the 2016 Shandong provincial college entrance examination. He then sold over 100,000 of these records to another defendant, Chen Wenhui, thereby earning an illegal profit of RMB 14,100. Chen Wenhui, using the aforementioned information purchased from Du Tianyu, organized multiple individuals to commit telecommunications fraud, making over 10,000 fraudulent phone calls and defrauding victims of more than RMB 200,000, ultimately resulting in the death of Xu Yuyu, a college entrance examination candidate.

(II) Judgment Outcome

This case was tried in the first instance by the People’s Court of Luozhuang District, Linyi City, Shandong Province. Following the pronouncement of the judgment at the trial, the defendant Du Tianyu stated that he accepted the verdict and would not appeal. The judgment has now become legally effective.

The court held that the defendant, Du Tianyu, violated relevant state regulations by illegally obtaining over 640,000 pieces of citizens’ personal information and selling more than 100,000 such items, thereby constituting the crime of infringing upon citizens’ personal information. As a professional in the field of information technology, the defendant should have been aware of the importance of safeguarding cybersecurity and protecting citizens’ personal data; nevertheless, he exploited his technical expertise to unlawfully access the website of a higher‑education admissions examination information platform, steal examinees’ personal information, and sell it for profit, seriously jeopardizing cybersecurity and posing a grave threat to the personal safety and property of others. Accordingly, the defendant Du Tianyu was sentenced to six years’ imprisonment and fined RMB 60,000 for the crime of infringing upon citizens’ personal information.

(III) Typical Significance

The crime of infringing upon citizens’ personal information is often referred to as the “root cause of all cybercrimes,” giving rise to a host of offenses such as telecommunications and online fraud, extortion, and kidnapping. The resulting social harm is extremely grave, making it imperative to crack down on such activities. This case is closely related to the fraud case involving the victim, Xu Yuyu. The defendant, Du Tianyu, by unlawfully obtaining and selling citizens’ personal information, created favorable conditions that enabled another defendant, Chen Wenhui, to carry out targeted fraudulent schemes and defraud others of their money. Accordingly, Du Tianyu must bear corresponding responsibility for the severe adverse social consequences stemming from his sale of personal information. During the trial, the court applied the relevant provisions of the Supreme People’s Court and the Supreme People’s Procuratorate’s “Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases Involving Infringement of Citizens’ Personal Information.” Following the pronouncement of the verdict, the defendant pleaded guilty, accepted the sentence, and did not file an appeal, thereby achieving both positive legal and societal outcomes.

III. Fraud Case Involving Chen Minghui and Six Others

(1) Basic Facts of the Case

The defendant, Chen Minghui, recruited Fan Zhijie, Gao Xuezhong, Ye Qifeng, Xiong Yunjiang, and others to form a fraud ring. They mass‑sent fraudulent prize‑winning messages—such as “Keep Running, Brother!”—luring recipients to log onto “phishing websites” to enter their personal information and claim prizes. Subsequently, they defrauded victims of their money under the pretext of requiring security deposits, notarization fees, taxes, and other charges for prize redemption. They then further extorted victims by posing as lawyers or court officials, alleging that failure to pay the required deposits or collect the prizes constituted a breach of contract and threatening them with additional handling fees. Between June and August 2016, they swindled a total of RMB 681,310 from 63 victims, including Cai Shuyan, and obtained an additional RMB 359,812.21 from other victims. After discovering she had been scammed, Cai Shuyan jumped into the sea and took her own life on August 29, 2016. In addition, Chen Minghui sent over 730,000 fraudulent prize‑winning messages by impersonating popular variety shows such as “Where Are We Going, Dad?”

(II) Judgment Outcome

This case was tried in the first instance by the Intermediate People’s Court of Jieyang City, Guangdong Province, and in the second instance by the Higher People’s Court of Guangdong Province. It has now attained legal effect.

The court held that the defendants, including Chen Minghui, formed a telecommunications fraud criminal gang with the intent of illegal appropriation and, by fabricating facts and employing methods such as linking to “phishing websites,” sending fraudulent messages, and making fraudulent phone calls, perpetrated fraud against an indeterminate number of victims. Their conduct thus constitutes the crime of fraud. Chen Minghui recruited other co-conspirators to participate in the offenses and played a principal role in the joint fraud scheme, making him a principal offender; moreover, he was found to have multiple aggravating circumstances warranting enhanced punishment. Accordingly, the defendant Chen Minghui was sentenced to life imprisonment for the crime of fraud, with deprivation of political rights for life, and confiscation of all his personal property; the defendants Fan Zhijie and others were sentenced to fixed-term imprisonment ranging from fifteen years to eleven years for the same offense.

(III) Typical Significance

As one of the high-profile cases involving the sudden death and suicide of a college‑entrance examination candidate following fraud, this case drew widespread public attention after media coverage. During the trial, the court applied the provisions of the “Opinions on Several Issues Concerning the Application of Law in Handling Criminal Cases of Telecommunications and Internet Fraud,” jointly issued by the Supreme People’s Court, the Supreme People’s Procuratorate, and the Ministry of Public Security. The court found that Chen Minghui organized and directed a telecommunications fraud ring, employed tactics such as phishing website links, impersonated judicial officials, targeted minors and students, and caused one victim to commit suicide—circumstances that warranted enhanced penalties. Moreover, since Chen Minghui’s fraudulent conduct included both completed and attempted offenses falling within the same sentencing range, the court imposed punishment for the completed offense of fraud, thereby fully reflecting the principle of strict punishment for such crimes.

IV. Fraud Case Involving Li Shiquan and 68 Other Individuals

(1) Basic Facts of the Case

The defendant Li Shiquan previously engaged in pyramid‑selling activities, thereby mastering the operational model of such organizations. Under this model, he established a fraud syndicate comprising more than 140 individuals. As the general manager of the syndicate, Li Shiquan assumed overall responsibility for overseeing its operations, appointing defendants Wu Yueqiong, Wu Guifei, Yan Qunxia, Yan Yanfei, Luo Jin, Hu Ping’an, and others as key managerial personnel. He set up fraud dens and assigned these managers to monitor and administer each location, designated staff to instruct others in criminal methods, collected the proceeds of the fraud, and distributed the ill‑gotten gains. The syndicate operated under a hierarchical pyramid‑selling structure—general manager–manager–director–business supervisor–salesperson—and required new recruits to pay an entry fee of RMB 2,900 per “case.” It offered tiered rebates based on predetermined percentages, with the submission of cases serving as a performance criterion for promotion. These cascading rebates functioned as incentives and rewards at each level, continually luring others into the fraudulent scheme. Between January 2016 and December 15, 2016, the syndicate established ten fraud dens in Guyuan City, Ningxia Hui Autonomous Region. A large number of subordinate fraudsters obtained victim information from online dating and matchmaking platforms such as Youyuan.com and Baihe.com, then used mobile messaging apps like WeChat and QQ to add victims as friends. Posing as single women seeking partners or friendships, they gained the victims’ trust; those who agreed to join were recruited into the organization, while those who refused were pressured to pay expenses for travel, phone calls, medical treatment, and other costs. The syndicate perpetrated fraud against an indefinite pool of victims, with its criminal activities spanning 31 provinces, municipalities, and autonomous regions nationwide, amassing illicit proceeds exceeding RMB 9.2 million.

(II) Judgment Outcome

This case was tried in the first instance by the People’s Court of Yuanzhou District, Guyuan City, Ningxia Hui Autonomous Region, and was reviewed on appeal by the Intermediate People’s Court of Guyuan City. It has now attained legal effect.

The court held that the 69 defendants, led by the defendant Li Shiquan, with the intent of illegal appropriation, employed methods of fabricating facts and concealing the truth to defraud others of their property; such conduct constitutes the crime of fraud. This case involves a relatively stable criminal organization comprising three or more persons acting in concert, thus qualifying as a criminal syndicate. Li Shiquan played an organizational and leadership role in the entire criminal syndicate and is its principal offender, and shall be punished for all offenses committed by the syndicate. The defendants Wu Yueqiong, Luo Jin, Yan Yanfei, Yan Qunxia, Wu Guifei, Hu Ping’an, and others assisted the principal offender in organizing, leading, and planning the entire criminal syndicate; they are core members of the syndicate and are deemed principal offenders, and shall be punished for all crimes they participated in or organized and directed. Other ordinary members shall be sentenced according to the roles they played within the syndicate and the amounts of fraud they personally obtained. Accordingly, the defendant Li Shiquan was sentenced to fourteen years’ imprisonment and fined RMB 100,000 for the crime of fraud; the defendants Wu Yueqiong and others were sentenced to fixed-term imprisonment ranging from twelve years to one year and three months for the same crime.

(III) Typical Significance

In this case, a criminal syndicate of 69 individuals, led by the defendant Li Shiquan, exploited a pyramid‑selling scheme to recruit victims, offering remuneration and rebates in order to expand its ranks. The organization maintained a tightly structured hierarchy with clearly defined roles, exhibiting distinct organizational characteristics. Its modus operandi was highly innovative: capitalizing on the aspirations of unemployed young people seeking entrepreneurial opportunities or employment, the group selected economically underdeveloped, remote regions as its operational base. It systematically lured victims nationwide into joining the fraud network, using mobile apps such as WeChat and QQ to pose as single women and, under the pretext of requesting travel expenses or medical treatment costs, perpetrate online scams against an indefinite pool of victims. The scheme spanned 31 provinces, municipalities, and autonomous regions across the country, causing severe social harm. During the trial, the People’s Court conducted a comprehensive review of the facts, evidence, applicable laws, charges, and sentencing, ultimately imposing appropriate penalties on each defendant. This decisive action effectively curbed the rampant crime of telecommunications and cyber fraud, safeguarded social order, and helped recover losses suffered by the public.

V. Fraud Case Involving Chen Jie and Eight Others

(1) Basic Facts of the Case

The defendant Chen Jie, together with defendants Zhang Zhen, Yao Dengfeng, and others, established “Wuhan Kangban Yisheng Technology Co., Ltd.” and “Wuhan Yisheng Kangban Trading Co., Ltd.” in September 2012 in Wuhan, Hubei Province. Using these legally registered companies as a cover, they set up two operational bases in Jiang’an District and Jianghan District of Wuhan, organizing more than one hundred gang members—including Zhu Jiaojiao, Xia Zonglu, Liu Qiong, and others—to carry out telecommunications fraud. After acquiring computers, telephones, mobile phones, and other tools, the gang registered WeChat accounts for each member, uniformly adopting fabricated profile pictures of individuals such as “Ma Tianchang” and “Lü Liuyin,” and using pseudonyms like “Miss Qin’s Kidney‑Tonifying Formula,” “Ma’s Traditional Chinese Medicine Kidney‑Tonifying Formula,” or “Lü Liuyin Herbal Paste Team.” Targeting individuals suffering from various male and female physiological ailments or hair loss, the group posted advertisements on the internet and through WeChat public accounts, touting treatments for such conditions. Victims who viewed these ads and provided their contact numbers or added the gang’s WeChat accounts were subsequently contacted by gang members posing as renowned doctors, relatives of medical professionals, or students. Following a pre‑written script, these operatives conducted “consultations” over the phone or via WeChat, introduced products, and requested victims to send photos of their tongue coating and fingernails. Subsequently, under the guise of customer service, they continued to “diagnose” victims and, presenting themselves as “instructors” or “health consultants,” engaged in further communication to gain trust before persuading victims to purchase health supplements or food products that lacked any genuine medicinal efficacy. Between June 16 and November 1, 2016, Chen Jie, Yao Dengfeng, and Zhang Zhen orchestrated the gang to defraud a total of 8,945 victims, appropriating more than RMB 10 million.

(II) Judgment Outcome

This case was tried in the first instance by the People’s Court of Dalat Banner, Inner Mongolia Autonomous Region, and in the second instance by the Intermediate People’s Court of Ordos City. It has now attained legal effect.

The court held that the defendants, including Chen Jie, with the intent of illegal appropriation, employed deception—by fabricating facts and concealing the truth—and utilized telecommunications network technologies to defraud others of property in an especially large amount. Their conduct thus constitutes the crime of fraud. Among them, defendant Chen Jie is the principal offender in the joint crime and shall be punished for all the offenses he organized. Accordingly, defendant Chen Jie was sentenced to thirteen years’ imprisonment and fined RMB 400,000 for the crime of fraud; defendants Yao Dengfeng and others were sentenced to fixed-term imprisonment ranging from twelve years to three years for the same crime.

(III) Typical Significance

At present, some fraudsters exploit the public’s heightened concern for their health—particularly among individuals with specific medical conditions and middle-aged or elderly persons—by targeting these groups to peddle so‑called “medicines” or health supplements and food products that lack any genuine therapeutic efficacy, thereby swindling them out of substantial sums of money. The social impact of such schemes is extremely detrimental. In this case, a fraud ring led by the defendant Chen Jie established a company as a front, deliberately focusing on individuals suffering from various male and female physiological ailments. By disseminating false advertisements online and via WeChat, impersonating renowned physicians, and conducting “consultations” over the phone or through WeChat, the perpetrators employed tactics such as exaggerating patients’ conditions and circulating fabricated “success stories” to carry out their scams. The victims were scattered across numerous regions nationwide, with the total amount involved exceeding RMB 10 million, making this an exceptionally large telecommunications fraud case. Additionally, seven related cases involving co‑conspirators were tried in accordance with the law, and all 85 defendants were convicted and sentenced for the crime of fraud.

VI. Fraud Case Involving Huang Guoliang and Eight Others

(1) Basic Facts of the Case

The defendants Huang Guoliang, Wu Xijin, Liao Yidong, Long Changteng, Liang Hongwei, and others falsely claimed that a group of “overseas dignitaries” and “overseas elders” were returning to China, each carrying a substantial sum of money to be brought back to the mainland for distribution to the general public. They contacted and instructed Tong Jingxia (being prosecuted separately and already sentenced) and the defendant Han Lijun, among others, to engage in the so‑called “national asset thawing enterprise,” and sent to Tong and Han documents such as the “International Plum Association National Asset Thawing Committee,” the “People’s Republic of China Committee Certificate of Gifted Funds Disbursement,” the “Notice on Various Fees for Collecting Gifted Funds,” and the “Certificate from the State Administration of Foreign Exchange and the Head Office of the Bank of China.” They appointed Tong Jingxia and Han Lijun as the chief commander and deputy commander, respectively, of the “International Plum Association National Asset Thawing Committee,” and, under the pretext that vast national assets needed to be unfrozen, directed Tong and Han to recruit members and collect membership fees. From December 2015 to May 2016, Tong Jingxia and Han Lijun collected membership dues from individuals across the country, promising to disburse enormous sums of “national asset thawing charitable funds.” In total, they collected over RMB 63 million from nearly one million people in dozens of provinces nationwide, and transferred more than RMB 28 million to bank accounts designated by Huang Guoliang, Wu Xijin, Long Changteng, and others.

(II) Judgment Outcome

This case was tried in the first instance by the Intermediate People’s Court of Ordos City, Inner Mongolia Autonomous Region, and in the second instance by the Higher People’s Court of Inner Mongolia Autonomous Region. It has now attained legal effect.

The court held that the defendants, including Huang Guoliang, with the intent of illegal appropriation, fabricated the false claim that unlocking frozen ethnic‑related assets would yield substantial returns, thereby defrauding others of property in an especially large amount. Their conduct thus constitutes the crime of fraud. Among them, defendant Huang Guoliang instructed Long Changteng, Liang Hongwei, and others to pose as his assistants and call Tong Jingxia and Han Lijun, and repeatedly used or directed others to use the bank cards involved to withdraw cash via POS terminals, making him a principal offender in this joint crime. Accordingly, defendants Huang Guoliang, Wu Xijin, and Liao Yidong were sentenced to life imprisonment for fraud, with deprivation of political rights for life and confiscation of all personal property; defendants Long Changteng and others were sentenced to fixed-term imprisonment ranging from fifteen years to four years for the same offense.

(III) Typical Significance

Fraudulent schemes under the banner of “unfreezing ethnic assets” have long existed. As law enforcement efforts have intensified, the incidence of such crimes has declined sharply—indeed, in some areas they have all but disappeared. However, in recent years, with the advancement of information technology, these scams have resurfaced, leveraging modern communication and financial tools to spread. They have evolved into hybrid offenses that combine rebate schemes, pyramid selling, and outright fraud, making them highly enticing and deceptive. Criminals exploit victims’ desire to turn small investments into large returns, luring them into fictitious projects—such as so‑called “national undertakings,” “ethnic asset unfreezing” initiatives, or other bogus programs masquerading as government policies or social trends—and promising substantial profits for minimal outlays. They then actively recruit and expand their networks, defrauding victims of money under the guise of certification fees, handling charges, security deposits, and other pretextual fees. These fraudulent schemes are particularly insidious and spread rapidly, often ensnaring large numbers of people within a short period and involving staggering sums of money. They gravely jeopardize the property security of the public, undermine governmental credibility, and pose a serious threat to social stability. The defendants, including Huang Guoliang, acted as the masterminds, organizers, and controllers behind the scenes, directing and instructing Tong Jingxia and Han Lijun to defraud others of vast sums of money in their capacity as agents, thereby amassing enormous personal gains. As the apex of the criminal chain in “ethnic asset unfreezing” cases, they represent the primary target of law enforcement. The people’s courts have imposed severe penalties on Huang Guoliang and his co‑defendants in accordance with the law, ensuring that the punishment fits the crime.

VII. Fraud Case Involving Tong Jingxia and Six Others

(1) Basic Facts of the Case

The defendant Tong Jingxia (female) had previously participated in activities billed as the “Great National Cause.” As such activities evolved, beginning in December 2015, so‑called “overseas elders” and “overseas dignitaries” contacted Tong Jingxia, claiming that more than 300 billion yuan was to be distributed to ordinary citizens overseas but that they preferred not to channel it through government channels, instead inviting Tong Jingxia to oversee its implementation. After Tong Jingxia agreed, the other party issued her an appointment letter designating her as “Commander-in-Chief of the Mainland National Asset Unfreezing Committee.” To gain public trust, Tong Jingxia and others circulated large quantities of forged identity documents and official papers—including fake appointment letters, power of attorney documents, central military‑warehouse dispatch orders, and “Plum Blossom Orders”—in WeChat groups. They also fabricated documents purportedly from the State Council, the Ministry of Finance, and the National Leading Group for Poverty Alleviation, falsely asserting that they were acting under instructions from central leaders, the Central Military Commission, and the State Council to unfreeze national assets. On this pretext, they publicly claimed that, upon paying registration fees, certification fees, and membership dues to join the “Great National Cause” organization, participants would receive substantial rewards, including poverty‑alleviation funds of varying levels. Under Tong Jingxia’s leadership, defendants Tai Yu, Zhang Zhifeng, and others successively joined the “Great National Cause” organization and actively engaged in “unfreezing national assets” activities. The entire organization operated under a hierarchical accountability system: at the management level, provincial and municipal team leaders were appointed; each team was further divided into several senior group leaders, who in turn supervised junior group leaders, with members reporting directly to these group leaders. The scheme worked as follows: assistants to the “overseas elders” sent promotional materials containing information about “unfreezing national assets” to Tong Jingxia’s email address. Management personnel then processed and refined the content before posting it—under Tong Jingxia’s name—in WeChat groups, demanding that members pay certification fees ranging from tens to hundreds of yuan, on the promise of receiving substantial returns—hundreds of thousands or even millions of yuan—within a short period. The organization also collected uniform‑cost fees under the guise of convening meetings at the Great Hall of the People, and levied charges for notarization, bank‑transfer processing, and security deposits. The funds paid by members were aggregated by provincial and municipal coordinators and transferred to Tong Jingxia’s bank account; she, in turn, remitted these sums to the bank accounts of the “overseas elders’” assistants. The “overseas elders” and their assistants then used point‑of‑sale terminals to withdraw cash, subsequently concealing the proceeds. The “Great National Cause” network cultivated by Tong Jingxia spanned more than ten provinces and municipalities nationwide, collectively defrauding victims of over 95 million yuan, of which more than 48 million yuan was funneled into the bank accounts of the “overseas elders’” assistants.

(II) Judgment Outcome

This case was tried in the first instance by the People’s Court of Sangzhi County, Hunan Province, and was reviewed on appeal by the Intermediate People’s Court of Zhangjiajie City. It has now attained legal effect.

The court held that the defendants, including Tong Jingxia, with the intent of illegal appropriation, used the guise of “unfreezing ethnic assets” to fabricate facts and defraud others of their property, amassing an especially large sum. Their conduct thus constitutes the crime of fraud. Tong Jingxia, relying on falsified appointment documents and other fabricated materials, conducted various fee‑based schemes under the banner of “unfreezing ethnic assets,” promising high returns for small investments. After being exposed by the public and after the public security authorities intervened, she continued to perpetrate deception by concocting further falsehoods. As the leader of a criminal organization, she recruited and directed other members. Accordingly, the defendant Tong Jingxia was sentenced to thirteen years’ imprisonment, with deprivation of political rights for three years, and a fine of RMB 200,000; the defendants Zhang Zhifeng and others were each sentenced to fixed-term imprisonment ranging from six years to three years for the crime of fraud.

(III) Typical Significance

This case is related to the fraud scheme perpetrated by the defendant Huang Guoliang and others. The defendant Tong Jingxia served as an agent in the “national asset thawing”‑type criminal network, acting under the direction of the masterminds—namely, Huang Guoliang and his associates—to promote fraudulent projects, recruit and manage members, and collect funds. Agents at all levels unquestioningly obeyed the instructions of the orchestrators, establishing WeChat groups, recruiting new participants, aggressively expanding their downlines, and collecting fees under various pretexts, thereby becoming tools in the hands of the fraudsters. Some agents even, after recognizing the deception of the masterminds, devised their own fictitious schemes and fabricated false projects to continue perpetrating fraud. The existence of these agents has played a pivotal role in enabling the “national asset thawing”‑type fraud to rapidly proliferate through multiple layers of subordinates within a short period, spreading exponentially and continually swelling the pool of victims. The resulting harm is extremely grave, making such individuals prime targets for the judicial authorities’ strict and lawful crackdown.

VIII. Fraud Case Involving Zhu Tao and Others

(1) Basic Facts of the Case

In May 2013, the defendant Zhu Tao funded the establishment of the Yulin Nonghui Spot Trading Platform, recruited and hired the defendants Ai Yang, Chen Chao, and Yao Weilin to join, and colluded with agents. First, they lured customers onto the e‑commerce platform by claiming to provide so‑called insider trading information; subsequently, by instructing market manipulators to either sell off positions or purchase products using virtual funds, they steered the overall market trend in a direction opposite to what the customers had anticipated. Through these fabricated price movements, they sought to induce losses among those who had been tricked into trading on the platform. On occasion, Zhu Tao and his accomplices even deliberately allowed customers to realize small profits after their initial modest investments, thereby encouraging them to commit larger sums and reap substantial losses for themselves. Between September 2013 and February 2014, Zhu Tao, Ai Yang, Chen Chao, and Yao Weilin, employing the aforementioned method of manipulating the trading platform with virtual funds, defrauded customers of more than RMB 2.15 million. Based on the pre‑agreed profit‑sharing ratios with the agents, Zhu Tao, Ai Yang, Chen Chao, and Yao Weilin personally obtained approximately RMB 750,000 from these fraudulent proceeds.

(II) Judgment Outcome

This case was tried in the first instance by the People’s Court of Nan County, Hunan Province, and in the second instance by the Intermediate People’s Court of Yiyang City. It has now attained legal effect.

The court held that the defendant Zhu Tao, with the intent of illegal appropriation, recruited and employed defendants Ai Yang, Chen Chao, and Yao Weilin. Exploiting an e‑commerce platform, they manipulated agricultural commodity market prices to lure clients into trading and thereby profited from their losses, with the amount involved being particularly substantial. Their conduct thus constitutes the crime of fraud. In this joint offense, Zhu Tao assembled accomplices, initiated, organized, and coordinated the trading activities, while Ai Yang issued instructions to traders to control the virtual price movements on the platform, thereby carrying out fraudulent acts; both are principal offenders. Accordingly, defendant Zhu Tao was sentenced to fourteen years’ imprisonment for fraud, and defendants Ai Yang, Chen Chao, and Yao Weilin were each sentenced to fixed-term imprisonment ranging from eleven years to four years, together with fines ranging from RMB 100,000 to RMB 60,000.

(III) Typical Significance

Telecommunications‑based fraud cases are characterized by highly concealed criminal methods that evolve rapidly. In this case, the defendant first established an online trading platform, recruited clients through sales representatives and agents, and then deceived them into trading on the platform by falsely claiming to provide insider‑trading information. After the victims purchased related agricultural products at inflated prices, the defendant instructed traders to artificially drive down prices, forcing the victims to sell at reduced prices and thereby reaping substantial losses. This novel form of cyber fraud is even more insidious and deceptive, making it easier for victims to fall prey to the scheme. Although the defendant conducted transactions via an e‑commerce platform, the essence of the conduct remains the fabrication of facts and concealment of the truth, with the intent to unlawfully appropriate others’ property. Such behavior fully satisfies the elements of the crime of fraud, and the conviction in this case is well founded.

IX. The Fraud Case Involving Shao Tingxiong

(1) Basic Facts of the Case

At the end of 2014, the defendant Shao Tingxiong, acting at the instigation of others, knowingly withdrew funds obtained through telecommunications fraud and remitted them to bank accounts designated by his superiors, while appropriating 10% of the withdrawn amount as compensation. Subsequently, Shao Tingxiong recruited Zhang Yang as a subordinate, provided him with several sets of bank cards, and promised to pay him 5% of the withdrawn sums as remuneration, while also instructing Zhang Yang to recruit additional subordinates to participate in the withdrawals. Through these methods, Shao Tingxiong gradually established a relatively stable hierarchical structure. From December 2014 to July 2015, the defendant Shao Tingxiong took part in 38 criminal incidents, involving a total sum of RMB 484,400. In February 2016, Shao Tingxiong turned himself in to the public security authorities.

(II) Judgment Outcome

This case was tried in the first instance by the People’s Court of Jinshi City, Hunan Province, and the defendant, Shao Tingxiong, accepted the verdict without filing an appeal. The judgment has now become legally effective.

The court finds that the defendant, Shao Tingxiong, with the intent of illegal appropriation, conspired with others to defraud others of property by fabricating facts through telecommunications networks, involving a substantial amount; his conduct constitutes the crime of fraud. This case involves fraudulent acts perpetrated against an indefinite number of persons via telephone calls and text messages, and was committed on multiple occasions; accordingly, the defendant, Shao Tingxiong, is sentenced more severely at the court’s discretion. As this is a joint crime, during the commission of the offense, Shao Tingxiong only participated in the transfer of the proceeds of fraud, playing a secondary role and thus qualifying as an accomplice, for which he may be given a lighter punishment. Moreover, Shao Tingxiong voluntarily surrendered himself, entitling him to a lighter sentence under the law. Accordingly, the defendant, Shao Tingxiong, is sentenced to five years and three months’ imprisonment for the crime of fraud, together with a fine of RMB 50,000.

(III) Typical Significance

Centered on telecom and online fraud, a large number of upstream and downstream related illegal and criminal activities have been induced and proliferated. These ancillary offenses provide various “services” and “support” to the fraud scheme, giving rise to a series of “dark‑gray” criminal value chains anchored in fraud—such as the sale or provision of citizens’ personal information and assistance in laundering illicit proceeds. The “Opinions of the Supreme People’s Court, the Supreme People’s Procuratorate, and the Ministry of Public Security on Several Issues Concerning the Application of Law in Handling Criminal Cases Involving Telecom and Online Fraud” clearly stipulate comprehensive punishment for such associated crimes. In this case, the defendant Shao Tingxiong, fully aware that the funds were derived from fraudulent activities, nevertheless provided assistance and support to the fraudsters in transferring the ill‑gotten gains. His conviction as an accomplice to fraud underscores the judiciary’s strict stance in cracking down on crimes linked to telecom and online fraud.

X. Yang Xuewei Fraud Case

(1) Basic Facts of the Case

In July 2018, the defendant Yang Xuewei, in collusion with others, carried out a prostitution‑related fraud scheme in Lanyang Town, Danzhou City, Hainan Province, using telecommunications networks. Yang Xuewei and his accomplices posed as women offering in‑home sexual services, engaging victims in WeChat conversations to gain their trust. Subsequently, other co‑conspirators called the victims and sent them QR codes to trick them into transferring funds. Yang Xuewei appropriated 20% of the proceeds from these fraudulent transactions. By these means, Yang Xuewei defrauded victims of a total of RMB 12,696.

(II) Judgment Outcome

This case was tried in the first instance by the People’s Court of Danzhou City, Hainan Province, and the defendant, Yang Xuewei, accepted the verdict without filing an appeal. The judgment has now become legally effective.

The court held that the defendant, Yang Xuewei, with the intent of illegal possession, conspired with others to disseminate false information via the internet and thereby committed fraud, obtaining property of a substantial value. His conduct constitutes the crime of fraud. During the commission of the offense, Yang Xuewei was responsible for using the WeChat account employed in the scheme to communicate with the victims and received 20% of the proceeds from the fraud; accordingly, he is a principal offender in this joint crime and, as a recidivist in fraud, should be punished more severely in accordance with the law. Accordingly, the defendant Yang Xuewei was sentenced to two years and one month of imprisonment and fined RMB 20,000 for the crime of fraud.

(III) Typical Significance

In recent years, WeChat‑based prostitution‑related fraud cases have occurred in many localities. As a new type of scam, these offenses often leave victims who were duped into soliciting prostitution hesitant to report them for fear of social stigma, resulting in a high rate of unreported incidents and posing significant challenges to investigation and prosecution. Although the financial losses involved are relatively modest, such crimes seriously undermine public morals and have a detrimental impact on local public security. The adjudication of this case underscores the people’s courts’ office resolve and vigorous efforts to crack down on this emerging form of fraudulent conduct.

The Ministry of Justice has issued a document to encourage high‑quality lawyers to participate in handling legal aid cases.

According to the Ministry of Justice website, the ministry recently issued the “National Standards for Civil and Administrative Legal Aid Services” (hereinafter referred to as the “Standards”), requiring all localities to implement them from the date of their promulgation. The Standards aim to ensure that legal aid services provided to beneficiaries meet established criteria, encourage high‑quality lawyers to participate in handling legal aid cases, and continuously enhance the public’s sense of gain in the field of the rule of law.

The “Regulations” provide definitions for terms such as civil and administrative legal aid, the agencies responsible for handling legal aid cases, the legal aid practitioners, and the beneficiaries. Civil and administrative legal aid refers to a legal protection system in which legally designated legal aid institutions, established by judicial administrative authorities, organize legal aid practitioners to provide, in accordance with the law, free legal consultation, representation in civil and administrative cases, and other related services to eligible citizens.

A civil and administrative legal aid implementing agency refers to a legal aid institution, a judicial office, a law office, a grassroots legal service center, or other social organization that, in accordance with the law, undertakes civil and administrative legal aid matters.

Civil and administrative legal aid practitioners refer to staff members of legal aid institutions, lawyers, grassroots legal service workers, personnel of other social organizations, legal aid volunteers, and others who, in accordance with the law, handle civil and administrative legal aid matters.

A recipient of civil and administrative legal aid refers to a person who has applied for such aid, submitted the requisite supporting documents, and, following review and approval by the legal aid agency, receives services such as representation in civil and administrative cases, as well as those who are exempt from review and thus entitled to legal advisory services.

The “Regulations” refine the service requirements for civil and administrative legal aid. For example, the Regulations stipulate that legal aid agencies shall, taking into account factors such as the distribution of local civil and administrative legal aid handling institutions, their staffing levels, qualifications, areas of expertise, as well as the aided person’s preferences and the nature and circumstances of the case, reasonably designate the handling institution and the designated legal aid provider. When the designated legal aid provider conducts an initial meeting with the aided person or their statutory representative or close relative, they must inform the party of key matters, including the principal litigation risks and the relevant legal consequences. If the aided person is an elderly individual or a person with a disability who has difficulty moving, the legal aid provider may, as appropriate, offer on-site services.

Furthermore, to enhance the quality of civil and administrative legal aid services, the Regulations stipulate that “if a legal aid agency finds that a case file fails review or that the quality of representation is substandard, it may withhold or reduce the case-handling subsidy or direct expenses,” thereby encouraging high‑caliber lawyers to take on legal aid cases and fostering continuous improvements in public satisfaction with legal aid.

The “Rules on the Implementation of Educational Discipline by Primary and Secondary School Teachers (Draft for Public Comment)” Has Been Released.

Full text of the “Rules on the Implementation of Educational Discipline by Primary and Secondary School Teachers (Draft for Public Comment)”:

Article 1 (Purpose and Legal Basis) In order to implement the fundamental mission of fostering virtue and cultivating talent, to ensure and regulate teachers’ lawful fulfillment of their duties to educate and manage students, to uphold the dignity of the teaching profession, and to promote students’ all-round development and healthy growth, these Rules are hereby formulated in accordance with the Education Law, the Teachers Law, the Law on the Protection of Minors, and other relevant laws.

Article 2 (Scope of Application) These Rules shall apply to teachers in regular primary and secondary schools, secondary vocational schools, and special education schools (hereinafter referred to as “schools”) when they impose educational disciplinary measures on students.

Article 3 (Definition of Terms) For the purposes of these Rules, “educational discipline” refers to the official conduct by teachers and schools, in the course of teaching, learning, and school management, whereby students who violate rules or exhibit inappropriate behavior are restrained, disciplined, or corrected through specific measures, with the aim of prompting them to learn from their mistakes and to recognize and rectify their errors.

Educational discipline is a necessary means and a legally mandated authority for teachers to fulfill their educational and instructional duties.

Article 4 (Duties and Requirements): If a student violates the Student Code of Conduct, school rules and regulations, public order and good morals, or applicable laws and regulations, or engages in any other conduct that disrupts the normal course of educational activities or harms their physical and mental health, the teacher shall administer criticism and education and may, depending on the circumstances, impose appropriate disciplinary measures.

Educational administrative departments and schools shall support teachers in the legitimate exercise of their authority to impose educational discipline and shall put a stop to any words or actions that are harmful to students or infringe upon their lawful rights and interests.

Article 5 (Principles of Implementation) The implementation of educational disciplinary measures shall adhere to the following principles:

(1) Student-centered education. It should be grounded in the principle of caring for students, align with the principles of education, and aim to help students abide by rules, strengthen self-discipline, and strive for improvement.

(2) Legality and compliance. Decisions shall be based on previously published rules, respect students’ fundamental rights and personal dignity, adhere to the rule of law, and ensure due process, objectivity, and fairness.

(3) The imposition of disciplinary measures shall be appropriate. Appropriate disciplinary measures should be selected based on the student’s gender, age, personality, physical and mental characteristics, cognitive level, consistent conduct, nature of the offense, and attitude toward repentance, so as to achieve the best educational outcomes.

(4) Ensuring Safety. It is necessary to ascertain students’ motivations and assess the nature of their behavior in advance, while paying close attention to the safety of methods, locations, and environments to prevent potential risks.

Article 6 (General Disciplinary Measures) In classroom instruction and daily management, teachers may, depending on the nature of students’ violations or disciplinary infractions, impose on-the-spot educational disciplinary measures in any of the following forms:

(1) Public reprimand;

(2) Order the offender to offer an apology and make a verbal or written self-criticism;

(3) Appropriately increase the exercise requirements;

(4) Standing in the classroom or facing the wall in reflection for no more than one period of classroom instruction;

(5) Temporarily confiscate items used by students to violate discipline, disrupt order, or carry in violation of regulations;

(6) After-school tutoring on campus;

(7) Other appropriate measures prescribed by the school’s regulations.

If a student disrupts the classroom or the teaching process, thereby affecting others or potentially causing harm to them, the teacher may take necessary measures to remove the student from the classroom or the teaching venue and place the student in temporary isolation.

After implementing the measures set forth in the preceding paragraph, teachers shall, as appropriate, notify the student’s parents or other legal guardians (hereinafter referred to as “parents”) and request that they collaborate in the student’s education.

Article 7 (Serious Disciplinary Measures): If a student violates the school’s rules and regulations in a serious manner, or refuses to correct the behavior despite on-site educational discipline, the teacher, with the approval of the school’s person in charge of moral education, may impose the following disciplinary measures and shall notify the student’s parents:

(1) Suspend or restrict students’ participation in excursions, social practice activities, and other off-campus group events that are not scheduled in the curriculum;

(2) Undertake internal public service tasks;

(3) The student shall be given admonishment by the school’s person in charge of moral education.

(4) To be isolated for reflection or to undergo specialized education on school rules, discipline, and codes of conduct at designated educational facilities established by the school;

(5) Requiring parents to accompany their children at school;

(6) Other appropriate measures prescribed by the school’s regulations

Article 8 (Severe Disciplinary Measures): When a student commits violations of rules or discipline, engages in conduct that deviates from proper standards, repeatedly fails to improve despite admonishment, seriously disrupts the educational and teaching order, or exhibits egregious behaviors such as bullying classmates or verbally abusing and physically assaulting teachers, the teacher shall recommend that the school impose the following educational disciplinary measures:

(1) Impose a suspension of classes or school attendance for no more than one week, and require parents to take the student home to cooperate with educational measures.

(2) The student shall be admonished by the vice principal for rule of law or the legal education counselor;

(3) Arrange dedicated educational facilities and provide guidance and corrective interventions by qualified professionals;

(4) Reassigning the student to a different educational setting or requiring transfer to another school within a specified time limit;

(5) Other appropriate measures prescribed by the school’s regulations.

For students whose violations or disciplinary infractions are serious, or who fail to correct their behavior despite educational admonishment, the school may impose disciplinary sanctions such as a warning, a recorded demerit, or probation. For students in the senior high school stage, additional disciplinary measures may include ordering expulsion or revoking student status.

When a student’s conduct is suspected of violating the law or constituting a crime, the school shall refer the matter to the judicial authorities for handling. For students who engage in serious misconduct or who have committed unlawful acts or minor offenses but are not subject to administrative or criminal penalties, the school may, in accordance with statutory procedures, recommend that they be transferred to a specialized school for educational correction.

Article 9 (Enforcement Measures): When a teacher discovers that a student is carrying or using prohibited or unlawful hazardous items, the teacher shall intervene to stop such conduct, temporarily confiscate the items, and notify the student’s parents. In serious cases, the teacher shall report the matter to the school. Temporarily confiscated prohibited items shall be returned to the student’s parents at an appropriate time. Illegal or hazardous items shall be seized or reported to the public security organs, the work safety administration department, or other relevant authorities for lawful handling.

When a teacher identifies behavior by a student that poses a safety risk, the teacher shall take necessary measures to intervene; if a student is found to be concealing illegal or prohibited items, the teacher shall require the student to surrender such items or conduct an inspection of the student’s desk, locker, or other storage areas where the items may be concealed.

If a student’s conduct causes damage to public property or the property of others, the student shall, in accordance with the law, restore the property to its original condition or provide compensation.

Article 10 (Formulation of School Rules and Regulations) Schools shall, in accordance with the law, formulate and refine their school rules and disciplinary regulations, clearly specifying the particular circumstances and procedures for teachers to implement student management and educational disciplinary measures.

When formulating school rules and regulations, schools shall extensively solicit the views of faculty and staff, students, and parents. Such rules and regulations shall be submitted to the Parent Committee, the Faculty and Staff Congress, and the Principal’s Office Meeting for deliberation and approval before being implemented, and shall be filed with the competent education authority.

Schools may, in light of their specific circumstances, prescribe additional appropriate educational disciplinary measures beyond those set forth in these Regulations within their internal rules and regulations; however, such measures shall be subject to risk assessment and legality review, and the views of the vice principal for rule of law, legal advisors, and experts shall be sought. Where conditions permit, a hearing may be convened.

Article 11 (Enforcement of School Rules and Regulations) School rules and regulations shall be publicly announced; those not so announced may not be enforced. Schools shall, through orientation programs and other appropriate means, inform and explain these rules and regulations to students and their parents.

Schools may, as appropriate, establish organizational bodies such as a School Rules and Discipline Enforcement Committee, which shall include teachers, students, parents, and representatives from relevant sectors of the community. These bodies shall be responsible for deliberating and determining applicable educational disciplinary measures, overseeing the implementation of teachers’ authority to impose disciplinary sanctions, and conducting related awareness-raising and educational activities.

When a school intends to impose any of the educational disciplinary measures listed in Article 8 of these Regulations on a student, it shall hear the student’s statement and defense, and, where necessary, hold a hearing.

Article 12 (Remedial and Educational Measures): After imposing disciplinary measures on a student, teachers shall prioritize communication and support, ensuring that discipline is effectively aligned with educational outcomes.

Schools may, in accordance with their actual circumstances and needs, establish a mechanism for student education, protection, and counseling. This mechanism shall comprise a counseling team consisting of the school’s responsible deputy, the head of the student affairs office, teachers, the vice principal (or counselor) for legal affairs, as well as professionals from the judicial, psychological, and social work fields, to provide specialized guidance and corrective measures for students exhibiting inappropriate behavior.

For students who have engaged in serious misconduct or committed acts that constitute a crime but have not been subject to criminal punishment, the school shall, in accordance with the law, coordinate with and cooperate with public security organs and procuratorial organs to provide guidance and support, and shall require parents to cooperate.

Article 13 (Prohibited Conduct) In the course of educational administration and the implementation of disciplinary measures, teachers shall not engage in any of the following acts:

(1) Corporal punishment that directly inflicts physical pain through methods such as striking or pricking;

(2) Indirect corporal punishment that harms students’ physical and psychological well-being, such as requiring them to stand for extended periods beyond reasonable limits, making them repeatedly copy text, or forcing them to perform uncomfortable movements or postures;

(3) Conduct that infringes upon students’ personal dignity, such as verbal abuse or disparagement through discriminatory or insulting remarks and actions;

(4) Punishing all students for the misconduct of an individual or a small group;

(5) Imposing or selectively imposing disciplinary measures arbitrarily on the basis of personal emotions or preferences;

(6) Other acts that infringe upon students’ fundamental rights or humiliate their personal dignity.

Article 14 (Rights and Responsibilities of Teachers): If a teacher lawfully imposes educational disciplinary measures and, as a result of an accident or the student’s own conduct, the student suffers physical or psychological harm, the school may not impose disciplinary sanctions or any other adverse measures on the teacher on that basis.

If a teacher violates Article 13 of these Regulations and the circumstances are minor, the school shall administer criticism and education; if the circumstances are serious, disciplinary action shall be imposed in accordance with the law. Where a teacher’s gross negligence results in bodily injury to a student, after the school has assumed the relevant liability for compensation, it may seek recourse against the teacher.

Article 15 (Parental Responsibilities): Parents shall fulfill their educational duties toward their children, respect teachers’ rights in the educational process, and cooperate with teachers in disciplining and guiding students who violate rules or exhibit inappropriate behavior.

If parents object to a teacher’s imposition of educational disciplinary measures, the school shall guide them to express their concerns through appropriate channels and in a reasonable manner. In cases where parents threaten, insult, or harm teachers, the school’s education authorities shall, in accordance with the law, safeguard teachers’ personal safety, protect their legitimate rights and interests, and support or represent teachers in pursuing legal accountability.

Article 16 (Removal of Disciplinary Measures) Where a student, following the educational disciplinary measures or sanctions prescribed in Article 8 of these Rules, sincerely acknowledges their mistake and actively endeavors to make amends, the school may, at its discretion, terminate such disciplinary measures ahead of schedule.

Where a student has had an educational disciplinary measure or sanction lifted, their rights to receive commendations and awards shall be restored.

Article 17 (In-School Appeals) Students and their parents who disagree with the educational disciplinary measures imposed by teachers pursuant to Articles 7 and 8, or with the disciplinary sanctions imposed by the school, may file an appeal.

Schools shall establish a Student Appeals Committee composed of relevant school officials, teachers, students, and representatives from external stakeholders, including the parent committee and the vice principal in charge of legal affairs, to receive student appeals and conduct review proceedings. Schools shall clearly define the composition of the Student Appeals Committee, its scope of acceptance, and its procedural guidelines, and shall make this information publicly available to students and their parents.

The Student Appeals Committee shall conduct a comprehensive review of the facts and grounds underlying the student’s appeal and render a decision to uphold, modify, or rescind the original disciplinary sanction or administrative measure.

Article 18 (Remedies) If a student or a parent is dissatisfied with the decision on the handling of a student appeal, they may apply to the school’s competent education authority for a review.

Article 19 (Guidance and Supervision): Schools shall strengthen guidance and oversight over teachers’ implementation of educational disciplinary measures, adopt measures to enhance teachers’ awareness and capacity to properly exercise their duties, and incorporate such efforts into the assessment of professional ethics. At the end of each semester, schools shall submit to the competent education authority for record‑keeping information on students who have been subjected to the educational disciplinary measures listed in Article 8.

Article 20 (Effective Date) These Measures shall come into force as of [date]. Localities may, in light of their specific circumstances, formulate local implementing rules or instruct schools to develop detailed regulations.

Wuxi has issued the “Implementation Plan for Monitoring and Evaluating the Construction of a Law-Based Wuxi.”

In accordance with the Regulations of the CPC Central Committee and the State Council on the Responsibilities of Principal Party and Government Leaders in Promoting the Rule of Law, the Jiangsu Provincial Commission for Law-Based Governance’s Implementation Plan for Annual Monitoring and Evaluation of Efforts to Deepen the Rule of Law in Jiangsu, and the Wuxi Municipal Assessment Committee’s Measures for Conducting the 2019 Comprehensive Assessment, the Municipal Commission for Law-Based Governance has issued the Implementation Plan for Monitoring and Evaluating the Work of Building a Law-Based Wuxi in 2019.

The Plan stipulates that, in 2019, the monitoring and evaluation of rule-of-law development in Wuxi will be led and implemented by the Municipal Commission for Law-Based Governance, with the participation of all coordination groups under the Municipal Committee for Comprehensive Law-Based Governance. The entities subject to monitoring and evaluation include all cities (counties) and districts, as well as relevant departments and units at the municipal level. The assessment will primarily rely on online submission of specialized reports, public opinion surveys, on-site inspections, and verification procedures. The results will be used to determine the scores for the “Deepening the Practice of Governing the Country According to Law” indicator in the annual Party‑building performance appraisal of each city (county) and district, and for the “Law-Based Administration” indicator in the municipal‑level agencies’ appraisal of their support for high‑quality development. These outcomes will serve as important references and bases for the establishment of law‑based cities (counties) and law‑based governments.

During the formulation of the Plan, the Wuxi Municipal Commission for Law-Based Governance extensively consulted relevant laws and policy documents and solicited input from all entities slated for assessment, striving to ensure that every provision is grounded in legal authority and every statement is duly sourced, while also aligning the assessment framework closely with the practical realities of our city’s work.

The Wuxi Municipal Commission for Law-Based Governance will earnestly implement the requirements set forth in the “Plan” and other relevant documents. Guided by the municipal Party committee’s goal of “striving to establish a model zone for law-based governance in China,” it will ensure the smooth and effective conduct of the 2019 monitoring and evaluation of Wuxi’s efforts to advance law-based governance.

Other

The CPC Central Committee and the State Council have issued the “National Medium- and Long-Term Plan for Actively Addressing Population Aging.”

To proactively address population aging, in accordance with the decisions and arrangements of the 19th National Congress of the Communist Party of China, the CPC Central Committee and the State Council recently issued the “National Medium- and Long-Term Plan for Actively Addressing Population Aging” (hereinafter referred to as the “Plan”). Covering the short term through 2022, the medium term through 2035, and with a long-term outlook extending to 2050, the Plan serves as a strategic, comprehensive, and guiding document for China’s proactive response to population aging by mid-century.

The Plan notes that population aging is a major trend in social development, a reflection of human civilization’s progress, and a fundamental national condition that will characterize China for an extended period to come. Population aging exerts far-reaching implications across all sectors of the economy, every aspect of social development, and multiple dimensions of society and culture, while also affecting the country’s overall strength and international competitiveness—presenting both challenges and opportunities.

The Plan emphasizes that proactively addressing population aging is an intrinsic requirement for implementing the people-centered development philosophy, a necessary safeguard for achieving high-quality economic development, and an important measure for upholding national security and social harmony and stability. In line with the goals of high-quality economic development, it calls for steadfastly prioritizing supply-side structural reform as the main thread, establishing a long-term institutional framework, formulating major policies that deliver tangible results, and adhering to the fundamental principles of proactive response, co‑construction and shared benefits, moderate capacity‑based measures, and innovation and openness—thereby forging a path of population‑aging response with Chinese characteristics.

The Plan sets out the strategic objectives for proactively addressing population aging: continuously strengthening the institutional foundation, steadily building up wealth reserves, continually enhancing human capital, bolstering scientific and technological support, providing a rich array of high-quality products and services, fostering a livable and inclusive social environment, ensuring that economic and social development remains aligned with the pace of population aging, and successfully establishing China as a modern socialist power, thereby realizing the Chinese Dream of national rejuvenation. By 2022, the institutional framework for proactively addressing population aging will have been preliminarily established; by 2035, the institutional arrangements will be more scientific and effective; and by mid-century, the institutional mechanisms for tackling population aging, commensurate with a modern socialist power, will be fully mature and comprehensive.

The Plan outlines specific tasks for addressing population aging across five key areas.

First, we must strengthen the societal wealth reserves needed to address population aging. By expanding the overall economic size, optimizing its structure, and enhancing efficiency, we can ensure that economic development remains aligned with demographic trends. Through refining the national income distribution system and improving the allocation among government, enterprises, and households, we will steadily build up pension‑related savings. Moreover, we will further develop a social security system that is both fairer and more sustainable, continuously raising the well‑being of all citizens.

Second, we must enhance the effective supply of labor in the context of an aging population. By improving the quality of newborns, raising the caliber of the newly entering workforce, and establishing a lifelong learning system that enables older adults to continue learning, we can elevate the overall quality of China’s human resources. We will also advance the development and utilization of human capital, promote higher‑quality and more inclusive employment, and ensure that, in responding to population aging, we have both an adequate workforce and a highly skilled labor pool.

Third, we will build a high-quality system for providing services and products tailored to older adults. We will vigorously advance the Healthy China initiative and establish and refine a comprehensive, continuous elderly health service system that encompasses health education, preventive care, disease diagnosis and treatment, rehabilitation nursing, long-term care, and palliative care. We will also improve a multi-tiered elderly care service system that is home-based, community-supported, with well-developed institutional care, and integrates medical and elderly‑care services. Furthermore, we will expand the supply of age‑friendly products and services across multiple channels and sectors, while enhancing their quality.

Fourth, we will strengthen our capacity for scientific and technological innovation to address population aging. By fully implementing the innovation-driven development strategy, we will harness technological advancement as the primary engine and strategic pillar for proactively tackling population aging, and comprehensively elevate the level of intelligence across the national economic and industrial systems. We will enhance the technological and information‑based delivery of elderly care services, bolster scientific and technological support for elderly health, and intensify research, development, and application of assistive technologies for older adults.

Fifth, we will foster a social environment that supports, respects, and honors the elderly. We will strengthen the legal framework for addressing population aging and safeguard the legitimate rights and interests of older adults. We will establish family‑support systems, build an age‑friendly society, and cultivate a positive climate in which older adults, families, communities, and the government all participate.

The Plan calls for upholding the Party’s leadership over efforts to proactively address population aging, ensuring that the principal officials of both the Party and the government take personal charge and assume overall responsibility. It emphasizes strengthening the principal responsibility of governments at all levels in implementing the Plan and further improving organizational coordination mechanisms. The Plan also seeks to advance international cooperation, fostering policy dialogue and project alignment with countries along the Belt and Road on addressing population aging. Pilot programs for comprehensive innovation in tackling population aging will be launched in selected regions that are distinctive and representative. Mechanisms for work coordination, oversight, and accountability will be established and refined, with strengthened monitoring of Plan implementation to ensure its effective execution.

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