JC Master Legal News Issue 902

Key Takeaways for This Issue

The Securities Law of the People’s Republic of China has been revised and adopted.

On December 28, 2019, the 15th Meeting of the Standing Committee of the 13th National People’s Congress reviewed and adopted the revised Securities Law of the People’s Republic of China (hereinafter referred to as the New Securities Law), which will come into force on March 1, 2020.

The Supreme People’s Court has issued the “Judicial Interpretation of the Foreign Investment Law.”

The Judicial Interpretation of the Foreign Investment Law comprises seven articles and has been in effect since January 1, 2020. The primary objective in formulating this judicial interpretation is to ensure that the Foreign Investment Law is implemented fairly and efficiently in the judicial sphere.

Announcement of the State Taxation Administration on the Issuance of 2019 Stamp Duty Stamps

The following matters concerning the issuance of 2019 stamp tax stamps are hereby announced.

Several Provisions of the Supreme People’s Court on Evidence in Civil Litigation

The Decision of the Supreme People’s Court on Amending the Provisions on Evidence in Civil Litigation was adopted at the 1777th Meeting of the Judicial Committee of the Supreme People’s Court on October 14, 2019. It is hereby promulgated and shall enter into force as of May 1, 2020.

[Xi Jinping’s Seventh “Golden Quote” of the Year] Greatness arises from the ordinary; the ordinary makes greatness.

“Greatness arises from the ordinary, and the ordinary gives rise to greatness.” This remark by Xi Jinping at the ceremony for awarding the State Medals and State Honorary Titles on September 29 struck a chord and quickly became a widely shared, resonant catchphrase.

Table of Contents

Table of Contents

Finance & Capital Markets

The Securities Law of the People’s Republic of China has been revised and adopted.

The China Securities Regulatory Commission has issued the “Administrative Provisions on the Implementation of Liquidity Support by the Securities Investor Protection Fund.”

The China Securities Regulatory Commission has issued a warning regarding the misappropriation of funds by controlling shareholders and the associated audit risks.

Carrying forward the past and forging ahead, leading the times: The CSI 300 ETF options have been listed on the Shanghai Stock Exchange.

The STAR Market, a “testing ground,” is thriving.

Corporate & Commercial

The Supreme People’s Court has issued the “Judicial Interpretation of the Foreign Investment Law.”

Ministry of Housing and Urban–Rural Development: In 2020, efforts will focus on stabilizing land prices, housing prices, and market expectations.

With robust market demand, how can the in-home caregiver industry be standardized and upgraded?

Beijing has over 190,000 electric vehicle charging stations.

What is the latest round of “burning-money wars” in e-commerce trying to achieve?

Taxation

Announcement of the State Taxation Administration on the Issuance of 2019 Stamp Duty Stamps

Interpretation of the “Announcement of the State Taxation Administration on the Issuance of 2019 Stamp Duty Stamps”

Shanghai, Jiangsu, Zhejiang, Anhui, and Ningbo have signed a tax agreement to support the integrated development of the Yangtze River Delta.

Leaders of the State Taxation Administration have traveled to various localities to attend special democratic life meetings at the grassroots tax authorities.

State-owned enterprises have improved operational efficiency, and their payable taxes and fees continue to decline.

Litigation & Arbitration

The State Council has issued the “Opinions on Further Strengthening Efforts to Ensure Employment.”

Several Provisions of the Supreme People’s Court on Evidence in Civil Litigation

Focus on the Group Deliberations of the Civil Code Draft: Three Major Issues in the Marriage and Family Chapter Spark Heated Debate

The Higher People’s Court of Jiangsu Province has issued the “Guidelines for Reviewing Case‑Closing Evidence in Theft Cases (Trial Implementation).”

Jiangsu has taken the lead in enacting local regulations to promote the development of the Grand Canal Cultural Belt.

Other

[Xi Jinping’s Seventh “Golden Quote” of the Year] Greatness arises from the ordinary; the ordinary makes greatness.

Finance & Capital Markets

The Securities Law of the People’s Republic of China has been revised and adopted.

On December 28, 2019, the Fifteenth Meeting of the Standing Committee of the 13th National People’s Congress reviewed and adopted the revised Securities Law of the People’s Republic of China (hereinafter referred to as the New Securities Law), which will come into effect on March 1, 2020. In line with the requirements of top-level institutional design, this revision further strengthens the fundamental systems of the securities market, reflecting a commitment to market‑oriented, law‑based, and internationally aligned principles. It provides robust legal safeguards for the comprehensive deepening of reforms in the securities market, ensures effective risk management, enhances the quality of listed companies, earnestly protects the legitimate rights and interests of investors, and promotes the ability of the securities market to serve the real economy. Ultimately, it lays the groundwork for building a capital market that is standardized, transparent, open, dynamic, and resilient, carrying significant and far‑reaching implications.

This revision of the Securities Law systematically summarizes China’s years of practical experience in securities market reform and development, regulatory enforcement, and risk prevention and control. Based on an in-depth analysis of the operating principles of the securities market and its stage‑specific characteristics, it introduces a series of new institutional reforms and improvements:

First, the securities issuance registration system has been comprehensively implemented. Building on the experience gained from establishing the STAR Market at the Shanghai Stock Exchange and piloting the registration system there, the new Securities Law enacts the relevant requirements of the Third Plenary Session of the 18th CPC Central Committee on registration‑based reform and those of the Fourth Plenary Session of the 19th CPC Central Committee on improving the capital market’s foundational institutional framework. In line with the fundamental principle of fully implementing the registration system, the law has systematically revised and refined the securities issuance regime, thereby clearly demonstrating the determination and direction of the registration‑based reform. At the same time, recognizing that registration‑based reform is a gradual process, the new Securities Law also empowers the State Council to specify the particular scope and implementation steps of the securities issuance registration system, thus leaving the necessary legal room for the phased introduction of the registration system across relevant sectors and types of securities.

Second, the costs of securities-related violations and illegal activities have been significantly increased. The new Securities Law substantially raises the penalties for securities law violations. For instance, for fraudulent issuance, the maximum fine has been raised from 5% of the funds raised to an amount equal to the funds raised; for violations of information disclosure by listed companies, the maximum fine has been increased from RMB 600,000 to RMB 10 million; and for controlling shareholders or actual controllers of issuers who organize or instruct others to make false statements, or who conceal relevant matters resulting in false statements, the law provides for a maximum fine of RMB 10 million. At the same time, the new Securities Law has also refined the civil liability regime for securities law violations. For example, it stipulates civil liability for issuers and other parties that fail to honor public commitments, and clarifies the presumption of fault and joint and several liability of controlling shareholders and actual controllers in cases of fraudulent issuance or unlawful information disclosure.

Third, the investor protection system has been improved. The new Securities Law dedicates a separate chapter to investor protection and introduces numerous noteworthy provisions. These include distinguishing between retail investors and professional investors and tailoring measures to safeguard their rights; establishing a system for soliciting proxy votes on behalf of shareholders of listed companies; instituting mechanisms for bondholders’ meetings and bond trustees; creating a mandatory mediation procedure for disputes between retail investors and securities offices; and refining the cash dividend policy for listed companies. Particularly noteworthy is that, in response to the needs of the reform toward a registration-based securities issuance regime, the new Securities Law has pioneered a civil litigation framework suited to China’s national conditions, stipulating that investor protection organizations may act as litigation representatives and, in accordance with the principles of “explicit opt-out” and “implicit opt-in,” bring civil claims for damages on behalf of injured investors in compliance with the law.

Fourth, information disclosure requirements have been further strengthened. The new Securities Law dedicates an entire chapter to the information disclosure regime, systematically refining and improving it. This includes expanding the scope of entities obligated to disclose; enhancing the content of disclosures; emphasizing the need to provide investors with all information necessary for making value judgments and investment decisions; regulating voluntary disclosures by obligors; clarifying that acquirers of listed companies must disclose the sources of funds used to increase their shareholdings; and establishing a system for disclosing public commitments made by issuers, their controlling shareholders, actual controllers, directors, supervisors, and senior management, among other measures.

Fifth, the securities trading system will be improved. This includes optimizing provisions on listing requirements and delisting circumstances; refining legal prohibitions against insider trading, market manipulation, and the use of non‑public information; strengthening the real‑name registration requirement for securities transactions, stipulating that no entity or individual may, in violation of such rules, lend out their securities account or borrow another’s securities account to engage in securities trading; improving the share‑reduction regime for listed company shareholders; establishing regulations governing the suspension and resumption of trading as well as algorithmic trading; and enhancing the stock exchanges’ mechanisms and measures for managing market risks and maintaining trading order.

Sixth, in accordance with the “delegation, regulation, and service” requirements, relevant administrative licenses have been abolished. This includes abolishing the approval process for the qualifications of directors, supervisors, and senior management personnel of securities companies; adjusting the regulatory framework for securities service institutions, such as accounting offices, engaged in securities business by replacing qualification approvals with a filing system; and revising the exemption from the obligation to make a tender offer in the context of contractual acquisitions—from being granted by the CSRC to being granted in accordance with CSRC regulations, including exemptions from the obligation to issue a tender offer.

Seventh, the legal duties of intermediary institutions as “gatekeepers” of the market are being officely enforced. The regulations stipulate that securities offices may not permit others to directly engage in centralized securities trading in their own names; they explicitly establish a presumption of fault and joint liability for sponsors, underwriting securities offices, and their directly responsible personnel when they fail to fulfill their obligations to injured investors; and they increase the range of administrative penalties for securities service institutions that fail to exercise due diligence, raising the maximum fine from five times their business income to ten times, with severe cases also subject to suspension or prohibition from engaging in securities services.

Eighth, establish and improve a multi-tiered capital market system. The securities trading venues shall be categorized into three tiers: stock exchanges, other nationwide securities trading venues approved by the State Council, and regional equity markets established in accordance with State Council regulations. It is stipulated that stock exchanges and other nationwide securities trading venues approved by the State Council may, in accordance with the law, establish different market tiers; it is clarified that securities issued through non‑public offerings may be transferred on the aforementioned trading venues; and the State Council is authorized to formulate administrative measures governing nationwide securities trading venues and regional equity markets, among other matters.

Ninth, strengthen regulatory enforcement and risk prevention and control. The responsibilities of the China Securities Regulatory Commission (CSRC) to monitor, prevent, and address risks in the securities market in accordance with the law have been clarified; the time limits for the CSRC to freeze or seize illegal funds and securities during enforcement have been extended; a system has been established whereby the CSRC may adopt regulatory measures to prevent market risks and maintain market order; an administrative settlement mechanism and a securities market integrity record system have been introduced; and the securities market disqualification regime has been refined, stipulating that entities subject to market disqualification shall be prohibited from engaging in securities trading for a specified period.

Tenth, expand the scope of application of the Securities Law. Depositary receipts shall be explicitly defined as statutory securities; asset-backed securities and asset management products shall be incorporated into the Securities Law, with the State Council authorized to formulate administrative measures governing the issuance and trading of such securities and products in accordance with the principles set forth in the Securities Law. At the same time, in light of the practical need for cross-border regulation in the securities sector, it is clarified that any securities issuance or trading activities conducted outside China that disrupt the order of the domestic market or infringe upon the legitimate rights and interests of domestic investors shall be subject to legal liability under the Securities Law.

In addition, this revision of the Securities Law has further refined the systems governing public company acquisitions, the business management of securities offices, securities registration and settlement, and cross-border regulatory cooperation.

The China Securities Regulatory Commission will earnestly study and implement the new Securities Law, fully appreciate its profound significance, comprehensively understand and master the systems and measures stipulated therein, accelerate the formulation, amendment, and improvement of supporting regulations and rules, refine the fundamental institutional framework of the securities market, rigorously enforce all provisions following the law’s revision, continuously enhance the quality of regulatory and enforcement work, and fully leverage the new Securities Law’s positive role in advancing market reform, upholding market order, strengthening market functions, and safeguarding the legitimate rights and interests of investors.

The China Securities Regulatory Commission has issued the “Administrative Provisions on the Implementation of Liquidity Support by the Securities Investor Protection Fund.”

To establish and improve a long-term mechanism for liquidity support in the securities industry and to fully leverage the role of the Securities Investor Protection Fund (hereinafter referred to as the “Protection Fund”), in accordance with the spirit of the relevant plan—approved by the State Council—to expand the scope of use of the Protection Fund, the China Securities Regulatory Commission has issued the “Administrative Provisions on the Implementation of Liquidity Support by the Securities Investor Protection Fund” (hereinafter referred to as the “Provisions”), which shall take effect from the date of their promulgation.

In recent years, the securities industry has operated in a generally orderly manner, with adequate capital and enhanced compliance and risk‑control capabilities, and no major liquidity risks have materialized. However, compared with mature overseas markets and with domestic banking and trust institutions, securities offices still lack long‑term, unified tools for providing liquidity support. Consequently, when liquidity risks arise and threaten to spill over, they can only rely on market‑based measures such as self‑rescue or seeking shareholder assistance. To proactively prevent such risks, drawing on proven practices both domestically and internationally, and with the approval of the State Council following a request from the China Securities Regulatory Commission, the Insurance Security Fund has been authorized to expand its scope of use, enabling it to provide liquidity support to securities offices during periods of severe market volatility or in the event of significant industry‑wide risk incidents. This long‑term mechanism will further diversify the instruments available to securities offices for maintaining liquidity, strengthen the industry’s resilience to risks, and lay a more solid foundation for its sustained, stable development.

To provide institutional safeguards for liquidity support to the Insurance Security Fund, the China Securities Regulatory Commission (CSRC) has formulated the Regulations. From July 5 to August 4, 2019, the CSRC publicly solicited comments on the Regulations through its official website. During this consultation period, financial institutions, industry self-regulatory organizations, the general public, and relevant government departments offered positive feedback and submitted specific suggestions for revision. The CSRC reviewed each provision carefully, fully incorporated these inputs, and refined the Regulations accordingly.

The Regulations comprise thirty articles and primarily cover the following provisions: First, they clearly define the circumstances under which the Fund may be utilized. When a securities office faces liquidity risks that could significantly undermine financial market stability in the short term, yet remains capable of continuing operations and meeting its principal and interest obligations, it may apply to draw on the Insurance Fund for short-term liquidity support. Second, they delineate the primary responsibilities of securities offices. In the event of a severe liquidity crisis, a securities office must first undertake self‑rescue measures or other market‑based approaches to mitigate the risk; only if such measures prove ineffective may it seek to access the Insurance Fund. Third, they impose stringent usage constraints. To guard against moral hazard, the Regulations set out rigorous requirements regarding the procedures, costs, and duration of a securities office’s use of the Insurance Fund, while also mandating that, during the period of such utilization, the office restrict capital‑consumptive practices such as executive compensation and shareholder dividends, and increase its subsequent contributions to the Fund. Fourth, they strengthen oversight and accountability. Regulatory authorities and the Insurance Fund management entity shall conduct comprehensive monitoring and surveillance over the use of the Fund, promptly intervene upon identifying any issues, and pursue accountability in accordance with applicable laws and regulations.

The China Securities Regulatory Commission has issued a warning regarding the misappropriation of funds by controlling shareholders and the associated audit risks.

On the 23rd, the China Securities Regulatory Commission issued Accounting Regulatory Risk Alert No. 9—“Use of Funds by Controlling Shareholders of Listed Companies and Their Auditing,” highlighting accounting regulatory risks associated with the misappropriation of funds by controlling shareholders of listed companies and related audit engagements.

The guidance document notes that the misappropriation of funds by controlling shareholders takes various forms. By summarizing and categorizing existing regulatory cases, it can be broadly classified into two main patterns: First is the “balance‑sheet” approach, in which a listed company fabricates the cash balance in its financial statements to conceal fund misappropriation by the controlling shareholder and its affiliates, or fails to disclose restrictions on cash holdings to hide illegal guarantees, thereby directly undermining users’ assessment of the authenticity and liquidity of the cash account. Second is the “transaction‑volume” approach, whereby the controlling shareholder and its affiliates appropriate funds through direct or indirect means—such as fund lending, commercially hollow purchase‑sale transactions or bill‑exchange arrangements, external investments, or payments for construction projects—often via affiliated entities, third parties, or companies established by employees. Such misappropriation is typically reflected in items such as intercompany balances, notes receivable and payable, long-term equity investments, construction in progress, and short‑ and long‑term borrowings; by contrast, the cash account itself usually does not exhibit outright falsification.

With regard to matters of accounting oversight, the China Securities Regulatory Commission (CSRC) has stated that listed companies shall, in accordance with the requirements of the Company Law, the Securities Law, the Basic Norms for Internal Control of Enterprises, the Corporate Governance Guidelines for Listed Companies, the Model Articles of Association for Listed Companies, and other relevant regulatory provisions, establish and continuously improve robust corporate governance and internal control mechanisms. They are also required to cooperate fully with the audit work of certified public accountants, ensure the truthfulness, accuracy, and completeness of financial reports and related information, and enhance the overall quality and investment value of the listed company. With respect to the misappropriation of funds, accounting oversight should focus on the following aspects of corporate governance and internal control at listed companies: effective governance, independence management, fund and financing management, guarantee activities, related-party transactions, procurement and payment management, sales and collection management, negotiable instrument management, investment management, and project management.

The document also lists common audit issues and matters of concern in accounting oversight, noting that, in the course of regulatory work, attention should be paid to whether certified public accountants have properly performed risk‑assessment procedures, adequately understood the audited entity and its operating environment, maintained appropriate professional skepticism in response to red flags, and appropriately identified and assessed risks of material misstatement and fraud, while designing adequate follow‑up responses. Furthermore, CPAs should analyze and identify internal control systems and key control points relevant to the prevention and detection of fund misappropriation, select sufficient and appropriate samples for control testing, with particular focus on whether there are instances of transactions lacking proper authorization or approval, and assess whether any internal control deficiencies related to fund misappropriation exist. Additionally, regulators should examine whether CPAs, based on their risk assessments and control tests pertaining to fund misappropriation, have implemented appropriate conofficeation procedures for cash and cash equivalents.

Carrying forward the past and forging ahead, leading the times: The CSI 300 ETF options have been listed on the Shanghai Stock Exchange.

On December 23, 2019, the listing ceremony for the CSI 300 ETF options was held at the Shanghai Stock Exchange, with more than 200 participants from the options market jointly witnessing this significant moment. This marked the second ETF option product listed on the Shanghai Stock Exchange, following the launch of the SSE 50 ETF options on February 9, 2015, and also represented the first cross‑market ETF option product in the Shanghai market.

Based on the day’s trading activity, overall market conditions remained stable and largely in line with expectations. A total of 72 contracts for CSI 300 ETF options were officially listed, comprising both call and put options across four expiration months—January, February, March, and June 2020—and nine strike price levels. Total daily volume reached 468,700 contracts, with 275,200 call options and 193,500 put options; premium turnover amounted to RMB 425 million, with a notional value of RMB 18.838 billion, and open interest stood at 180,700 contracts. On its debut, pricing for CSI 300 ETF options was deemed reasonable. The put‑call ratio, an indicator of investor sentiment toward the underlying asset, registered 0.70 (a reading below 1 signaling bullish market outlook). Overall, market operations were steady, risks remained manageable, and investor participation was rational.

The CSI 300 ETF options are the first cross‑market, exchange‑traded stock options listed on the Shanghai Stock Exchange, covering a broader range of A‑share underlying assets and offering enhanced hedging capabilities and greater asset pricing efficiency. The Shanghai Stock Exchange’s vision for its options market is “to make investing safer through options.” As the pilot program for options continues to deepen, investors’ understanding of these products is steadily growing, driving expanding market demand. Consequently, the SSE options market is poised to evolve into a marketplace characterized by an increasingly diversified product suite, progressively refined trading mechanisms, and a maturing participant base.

The STAR Market, a “testing ground,” is thriving.

The STAR Market has profoundly reshaped the landscape of China’s capital markets, for the first time opening the vast A-share market to unprofitable companies and offices structured as red-chip entities. High‑quality enterprises in fields such as next‑generation information technology, high‑end equipment manufacturing, and biopharmaceuticals have all welcomed this development with great enthusiasm. Listing on their home turf—leveraging the capital markets to nurture growth and strengthen China’s position in cutting‑edge technologies—has become a shared aspiration among these companies. The STAR Market, serving as a “testing ground,” is thriving. Market observers note that the registration‑based IPO system has removed key barriers to financing for “hard tech,” sparking a new wave of investment in science and technology. With the STAR Market leading the way, the pipeline from capital to innovation is poised to become even more efficient, enabling China to translate the substantial gains achieved since the reform and opening‑up into core technological capabilities and ultimately advance toward becoming both a capital powerhouse and a global leader in science and technology.

Technology companies are flocking to the STAR Market.

The STAR Market has become the first choice for an increasing number of high-tech companies seeking to list on the capital markets. On December 18, China Railway Construction Corporation announced that its board of directors had approved a proposal to spin off China Railway Construction Heavy Industry Group Co., Ltd. and list it on the STAR Market of the Shanghai Stock Exchange. CRCHI is a leading enterprise in the machinery manufacturing sector. According to CRCC’s 2019 interim report, CRCHI operates an internationally advanced tunneling machine manufacturing base with an annual capacity of 200 units, holding over 50% of the domestic market share. Its TBM (tunnel boring machine) products command more than 85% of the domestic market, enabling the company to provide comprehensive intelligent construction solutions and high-end equipment for underground engineering projects, with several breakthroughs filling critical domestic gaps. From 2016 to 2018, CRCHI reported net profits of RMB 963 million, RMB 1.308 billion, and RMB 1.644 billion, respectively, while its first-half profit this year reached RMB 710 million. “Spinning off high-quality technologies to list on the STAR Market will become an important component of state‑owned enterprise mixed‑ownership reform,” said Wang Qiang, a senior vice president at a large private equity office in Shanghai, speaking on condition of anonymity. He noted that over the years, state‑owned enterprises have amassed substantial technological achievements through market competition; however, constrained by property‑rights frameworks, listing‑spinoff regulations, and limited avenues for public access, these valuable assets have long lacked effective channels for securitization. The STAR Market, along with the accompanying changes to spinoff‑listing rules, now offers such companies a viable opportunity. As of December 22, the STAR Market had received listing applications from 189 companies, with 67 already officially listed—ranging from well‑known domestic office‑software leader Kingsoft Office to niche industry pioneers like AMEC, which has quietly led the way in the chip sector for decades.

From a data perspective, STAR Market–listed companies have lived up to their reputation as pioneers of science and technology. In the first three quarters, the 40 STAR Market offices that had already gone public posted double-digit growth in both revenue and net profit, with total operating revenue reaching RMB 69.116 billion, up 14% year over year, and net profit totaling RMB 8.581 billion, up 40% year over year. In terms of R&D investment, the average R&D expenditure as a percentage of revenue across these 40 companies stood at 13%; eight offices allocated more than 20% of their revenue to R&D. The three companies with the highest R&D intensity were Megvii Technology, Hillstone Networks, and MicroPort BioMed, with R&D spending accounting for 35%, 33%, and 33% of revenue, respectively. Following their IPOs, the initial cohort of 25 companies continued to ramp up their R&D investments, with third-quarter R&D expenses rising 14% year over year.

Building a “Capital + Technology” Ecosystem

The STAR Market has served as the vanguard and experimental platform for capital market reform, representing a key breakthrough in China’s efforts to modernize its capital markets. With the establishment of the STAR Market and the implementation of the pilot registration-based system, a series of institutional reforms have been set in motion across A‑share markets. To fully leverage the STAR Market’s role as an “experimental field,” it is essential to stay true to its original positioning, refine the mechanisms linking review and registration, and maintain steadfast commitment to reform. Summarizing and scaling up the STAR Market’s proven institutional arrangements, steadily advancing the registration system, and further improving the market’s foundational frameworks are now top priorities in the ongoing capital market reform agenda. As the principles of the registration system gain broader acceptance, other segments of the A‑share market have greater confidence in drawing on the successes of this reform. On December 13, in order to deepen supply-side structural reform in the financial sector, fully harness the functions of the capital market, and invigorate market dynamism, the China Securities Regulatory Commission issued the “Several Provisions on the Pilot Program for Listed Companies to Spin Off Subsidiaries for Domestic Listing.” This landmark policy breakthrough has enabled major state-owned enterprises, such as China Railway Construction Corporation, to spin off high‑quality, cutting‑edge technology assets and list them on the STAR Market. In fact, the newly released rules governing spin‑off listings represent significant advances: for instance, the profitability threshold has been lowered. Under the latest regulations, a listed company must have reported consecutive profits over the most recent three fiscal years, and, after deducting the net profit attributable to the proposed spun‑off subsidiary—calculated on an equity‑based basis—the cumulative net profit attributable to the listed company’s shareholders must total no less than RMB 600 million. By contrast, the earlier draft had set the threshold at RMB 1 billion. Moreover, the new rules relax requirements on the use of raised funds and ease shareholding restrictions for directors and senior executives of the spun‑off entity. They also revise provisions related to同业竞争 (competition with the parent company) to better accommodate the distinct characteristics of different market segments.

“The rules on spin-off listings represent a new framework designed to serve the entire capital market, yet it is already evident that principles such as the registration-based system have been significantly incorporated,” said Wang Qiang. He added that, as the valuable institutional insights pioneered on the STAR Market are gradually implemented across A‑shares, the A‑share market is poised to evolve into an efficient, interconnected marketplace that seamlessly integrates capital and technology, thereby further bolstering the development of China’s high‑tech industries.

Commercial & Corporate

The Supreme People’s Court has issued the “Judicial Interpretation of the Foreign Investment Law.”

Interpretation of the Supreme People’s Court on Several Issues Concerning the Application of the Foreign Investment Law of the People’s Republic of China

(Adopted at the 1787th Meeting of the Judicial Committee of the Supreme People’s Court on December 16, 2019; effective January 1, 2020)

In order to ensure the proper application of the Foreign Investment Law of the People’s Republic of China, to safeguard, in accordance with the law, the legitimate rights and interests of both Chinese and foreign investors on an equal footing, and to foster a stable, fair, and transparent business environment under the rule of law, and in light of judicial practice, the following interpretations are hereby issued regarding the legal issues applicable to cases involving investment contract disputes between parties of equal standing heard by the people’s courts.

Article 1. For the purposes of this Interpretation, “investment contract” refers to any agreement entered into by a foreign investor—namely, a foreign natural person, enterprise, or other organization—arising from direct or indirect investment within the territory of China, including contracts for the establishment of foreign-invested enterprises, share transfer agreements, equity transfer agreements, contracts for the transfer of property interests or other similar rights, and new‑project construction contracts, among others.

Contractual disputes arising from foreign investors’ acquisition of corresponding equity interests through gifts, property division, corporate mergers, corporate spin-offs, or other such means shall be governed by this Interpretation.

Article 2: With respect to investment contracts entered into in sectors not listed on the Negative List for Foreign Investment Access as referred to in Article 4 of the Foreign Investment Law, people’s courts shall not uphold claims by the parties that such contracts are invalid or have not taken effect on the ground that they have not been approved or registered with the relevant administrative authorities.

If an investment contract falling under the preceding paragraph was entered into prior to the entry into force of the Foreign Investment Law, but the people’s court had not yet rendered a final judgment as of the date the Foreign Investment Law came into effect, the provisions of the preceding paragraph shall apply in determining the validity of such contract.

Article 3: Where a foreign investor invests in a sector prohibited by the Negative List for Foreign Investment Access, and the party concerned asserts that the investment contract is invalid, the people’s court shall uphold such claim.

Article 4: Where a foreign investor invests in an area subject to investment restrictions set forth in the Negative List for Foreign Investment Access, and the party concerned asserts that the investment contract is invalid on the ground of violation of the special administrative measures governing such restrictive access, the people’s court shall uphold such claim.

Prior to the people’s court rendering a final judgment, if the parties have taken the necessary measures to comply with the requirements of the special administrative measures governing market access, their claim that the investment contract specified in the preceding paragraph is valid shall be upheld.

Article 5: Prior to the entry into force of a final judgment, if, due to an adjustment to the Negative List for Foreign Investment Access, the foreign investor’s investment no longer falls within a sector prohibited or restricted from investment, and the party concerned asserts that the investment contract is valid, the people’s court shall uphold such claim.

Article 6: When the people’s courts hear cases involving disputes arising from investments made in the mainland by investors from the Hong Kong Special Administrative Region and the Macao Special Administrative Region, Chinese citizens residing overseas, or by investors from Taiwan in the mainland, they may apply this Interpretation by analogy.

Article 7 This Interpretation shall take effect as of January 1, 2020.

Where any judicial interpretation previously issued by this Court is inconsistent with this Interpretation, this Interpretation shall prevail.

Ministry of Housing and Urban–Rural Development: In 2020, efforts will focus on stabilizing land prices, housing prices, and market expectations.

The National Housing and Urban–Rural Development Work Conference was held in Beijing on the 23rd. Minister of Housing and Urban–Rural Development Wang Menghui delivered a comprehensive review of the sector’s work in 2019, analyzed the current situation and challenges, outlined the overall objectives for 2020, and laid out plans for key tasks.

Wang Menghui stated that in 2020, efforts will focus on stabilizing land prices, housing prices, and market expectations, ensuring the steady and healthy development of the real estate market. He emphasized the need to uphold the principle that housing is for living in, not for speculation, refrain from using real estate as a short-term tool to stimulate the economy, and continue to implement, in a prudent manner, the long-term mechanism for the stable and healthy development of the real estate market, with particular attention paid to establishing and improving the institutional framework for real estate regulation. He stressed the importance of refining the urban housing security system and intensifying efforts to provide housing assistance to vulnerable urban populations. Pilot programs to improve the housing security system will be vigorously advanced, with the aim of developing replicable and scalable best practices. Public rental housing will be expanded, and targeted support will be strengthened for disadvantaged groups in sectors such as sanitation and public transportation. At the same time, supporting policies will be further refined, and work on renovating older urban residential areas will be carried out effectively. Regarding housing for new urban residents, Wang Menghui noted that efforts will be directed toward fostering and developing rental housing to help address the housing needs of new citizens and other groups. This includes nurturing institutionalized, large-scale rental enterprises and accelerating the establishment and improvement of government‑led platforms for managing housing rentals. Priority will be given to developing policy‑driven rental housing, while exploring standardized norms and operational mechanisms for such housing. In addition, Wang Menghui pointed out that a comprehensive evaluation system for urban construction management and living environment quality will be established and refined, with pilot projects launched to build “beautiful cities.” Work will also be expedited to construct a three‑tier CIM platform framework at the national, provincial, and municipal levels, and systematic, citywide initiatives will be advanced to promote sponge city development, alongside special campaigns to address infrastructure shortcomings and carry out renewal and upgrading projects.

In the agenda of this meeting, specific policy guidelines such as “adhering to city‑specific measures and categorized guidance, and reinforcing the principal responsibility of local governments” and “maintaining the continuity and stability of regulatory policies” were not reiterated. Instead, the guiding principles emphasized refraining from using real estate as a short‑term tool to stimulate the economy, continuing to steadily implement the long‑term mechanism for the stable and sound development of the real estate market, and focusing on establishing and improving the institutional framework for real estate regulation.

With robust market demand, how can the in-home caregiver industry be standardized and upgraded?

Recently, 58.com released its latest “China Household Services Market Employment and Consumption Report.” According to the data, among the various sub-sectors of the household services market, the average monthly salary for postnatal care matrons reached 9,795 yuan in 2019, ranking first across the industry.

Currently, demand for postpartum care providers is robust, with supply falling short of demand, making this role the hottest career in the domestic‑services sector. However, a journalist’s investigation reveals that the rapidly expanding industry is also exposing various shortcomings. In particular, as maternal and infant care services become more sophisticated, many parents are calling for new industry standards to regulate the market and safeguard their spending.

The Bitterness Behind the High Salary

“The pay is indeed quite good, but the work we do is both physically and emotionally exhausting,” said Wu Mei (a pseudonym), who hails from Yongchuan District in Chongqing. She has been working as a postpartum nanny for more than two years and was recently named the “Annual Gold‑Medal Postpartum Nanny” by the domestic‑service company she contracts with. The company’s director, Ms. Wang, told reporters that their “Gold‑Medal Postpartum Nannies” charge starting at 12,000 yuan per month, and if the employer is satisfied and gives a five‑star review, the nanny can earn an additional bonus of 10% to 15%. “People often say our postpartum nannies now outpace white‑collar workers, but outsiders don’t realize that our working hours far exceed theirs—quite literally, around the clock!” Wu Mei outlined her duties: monitoring the newborn’s umbilical cord, jaundice, and bowel and bladder movements; changing diapers, bathing, feeding, and soothing the baby to sleep; observing the mother’s postpartum recovery, cleaning wounds, providing massage and lactation support; and preparing nutritious meals while offering emotional counseling. Even with such demanding hours, Wu Mei never stops upskilling herself. Over the past two years, she has earned multiple professional certifications—ranging from infant‑care qualifications to pediatric tuina therapist training, lactation consultant credentials, and health‑management certification—all while continuing to work. “The scope of postpartum‑nanny services keeps expanding, and these skills are essential,” she explained. It is precisely through this steady progression that she has transformed herself from a newcomer to the field into a recognized “Gold‑Medal Postpartum Nanny.”

The anxiety in the mind of the demander

They can’t secure a qualified postpartum nanny recommended by an acquaintance, and they feel uneasy about hiring one through a housekeeping agency—situations like Mr. Zhang’s are far from uncommon. During a visit to a housekeeping agency in Chongqing, prospective clients all shared a common sense of apprehension. “Postpartum nannies sign contracts with the agency and are managed by it. If the nanny we hire at home doesn’t meet our expectations, aside from filing a complaint with the agency or requesting a replacement, are there any other options?” asked a young father who is soon to welcome his baby, voicing his lingering concerns.

What further unsettled Mr. Zhang were the negative reports about the postpartum care‑assistant industry. “Earlier, CCTV’s March 15 gala exposed that many domestic housekeeping agencies allow caregivers to obtain certification without attending any training—and there are even cases of people paying to buy such certificates, a clear sign of widespread misconduct in the sector,” Mr. Zhang admitted. After seeing these reports, he found himself consumed by anxiety.

The “new national standard” is expected to be released next year.

“As the market for postpartum care providers continues to grow, the industry has indeed become rife with hidden risks—such as the emergence of a shadowy supply chain involving training, certification, and in‑home service provision,” an industry insider revealed.

The 21st Century Economic Research Institute, in collaboration with several institutions, conducted a survey and statistical analysis of China’s maternal and infant consumer market. The data show that since 2010, the market has experienced explosive growth, with its overall size expanding from RMB 1 trillion in 2010 to RMB 3 trillion in 2018; projections suggest it could reach RMB 4 trillion by 2020. As an important segment of this market, the postpartum nanny industry has also undergone rapid development. “In the past, postpartum care was typically provided by older female relatives based on their own experience. Today, as parents become younger and more educated, many families opt for professional postpartum nannies, transforming traditional home‑based postnatal care into a specialized form of nursing. This shift places higher demands on the industry, necessitating progress toward greater professionalism, scale, and brand recognition,” said a representative from the Department of Obstetrics and Gynecology at the First Affiliated Hospital of Chongqing Medical University.

As early as July 2015, the National Standardization Administration approved and released two national standards—“Quality Specifications for Maternal and Infant Care Services in Domestic Service” and “Classification and Evaluation of Domestic Service Agencies”—which were officially implemented in February 2016, thereby standardizing and defining the quality of maternal and infant care services and the classification of domestic service agencies.

However, as living standards continue to rise, many industry experts and scholars have called for the upgrading of two previously issued national standards. According to relevant authorities, a new set of professional technical specifications for maternal and infant health care is expected to be released next year, at which point the “new national standard” will further regulate maternal and infant care services. Industry insiders emphasize that the goals and direction of the sector lie in achieving greater precision, professionalism, standardization, and quality in maternal and infant care. In the face of consumers’ growing demand for high‑quality services, only premium products and services can ensure long‑term sustainability.

Beijing has over 190,000 electric vehicle charging stations.

According to the Beijing Municipal Commission of City Management, the city has currently built approximately 193,100 electric vehicle charging stations. This year, the commission conducted safety inspections at 340 sites; among them, 17 charging stations with Class A safety hazards have been de-energized and brought into compliance, with 15 now back in operation after rectification, while the remaining two are still undergoing remediation.

Safety inspections of nearly 80 charging infrastructure operators

According to a responsible official from the Urban Management Commission, in the private‑use sector, residential communities have collectively installed approximately 145,500 dedicated charging stations for individual parking spaces. In the public‑use sector, at eligible large commercial shopping centers, agricultural wholesale markets, tourist attractions, freight hubs, and other public parking facilities, about 2,358 sites with roughly 24,300 publicly accessible charging points have been built, achieving a ratio of one public charger for every six private electric vehicles. This has essentially established a citywide public charging network in the plain areas, with a service radius of less than 5 kilometers.

Within the parking facilities of government agencies, enterprises, and public institutions, approximately 2,382 sites have been developed, providing roughly 17,900 publicly accessible charging points for internal use. In the public‑dedicated sector, at depots and stations serving public vehicles such as buses, sanitation trucks, and taxis, about 534 sites have been established, offering roughly 5,400 dedicated charging points.

With regard to the safety management of charging infrastructure, this year the Urban Management Commission has conducted safety inspections at 340 sites operated by 36 companies, covering all 16 districts across the city. These efforts have essentially achieved full coverage of small-scale operators’ sites and sampled inspections of key sites belonging to medium- and large-scale operators. Meanwhile, the Commission has rolled out measures to ensure that nearly 80 charging‑infrastructure operators in Beijing fulfill their primary responsibility for workplace safety, set forth specific requirements, and publicly reported the findings of the safety inspections.

17 charging stations with Class A safety hazards have been de-energized for rectification.

According to the person in charge, Beijing has established a mechanism for addressing and rectifying safety hazards. Based on risk levels, the 21 common safety issues identified during inspections have been categorized into three types: A (serious hazard), B (general hazard), and C (safety advisory), with enterprises required to implement corrective measures within specified deadlines. For stations classified as having Category A hazards, operators are mandated to immediately disconnect power and complete remediation within a set timeframe; power supply and operations may be restored only after the work is finished and a follow-up inspection conoffices compliance. To date, all 17 charging stations found to have Category A hazards during inspections have undergone power disconnection and corrective action. Of these, 15 have resumed operations following completion of remediation and successful re-inspection, while the remaining two are currently undergoing整改.

Beijing has also introduced measures to assess and reward the operation of public charging facilities. By evaluating these facilities on metrics such as utilization rates, safety management, and operational maintenance, the city provides tiered incentives to charging‑station operators, encouraging a shift from a “construction‑first, management‑second” approach to one that balances both. This effort aims to progressively enhance the level of facility operation and maintenance, ensuring that electric‑vehicle users enjoy safe and reliable charging services.

To ensure that district-level administrative departments fulfill their local regulatory responsibilities, the Urban Management Commission has organized safety‑management training for these departments, conducted safety inspections of publicly accessible charging facilities within their jurisdictions, and incorporated the inspection results into the performance‑based evaluation and incentive system for operating companies. According to reports, Beijing will continue to refine its policies on operational subsidies and incentives for charging infrastructure, engage third‑party professional agencies and district authorities to carry out ongoing safety inspections of public charging stations, and publicly notify facilities with inadequate maintenance and management. The city will also develop and disseminate educational materials on the safe use of charging equipment to guide electric‑vehicle owners in proper operation; furthermore, it will integrate indicators such as damaged charging piles and missing signage or user instructions into the capital’s grid‑based management framework, leveraging a three‑tiered urban–district–street grid system to strengthen routine oversight of charging infrastructure.

What is the latest round of “burning-money wars” in e-commerce trying to achieve?

The long‑awaited “e‑commerce price‑war” has returned: Alibaba, JD.com, and Pinduoduo have all recently launched “ten‑billion‑yuan subsidies,” touting platform‑funded discounts to offer the lowest prices across the entire online marketplace. Pinduoduo, which unveiled its “ten‑billion‑yuan subsidy” initiative as early as May, says its New Year and Spring Festival shopping festivals cover a wide range of products—clothing, food, housing, and transportation. JD.com, which joined the fray during the 618 shopping event, is not to be outdone, rolling out a new round of ten‑billion‑yuan subsidies for the Double 12 period, spanning multiple promotional milestones including Double 12 and the New Year shopping festival. Meanwhile, Alibaba’s Juhuasuan entered the race last, but with a strong push, spotlighting dozens of “hit low‑price items” each day—and plans to keep the campaign going through and beyond the Spring Festival.

Price wars among e‑commerce platforms, once a fierce battleground, are now a thing of the past. This latest round of competition may be driven primarily by the developmental bottlenecks confronting China’s e‑commerce market. Whether established players or emerging newcomers, all have resorted to the most “brutal and straightforward” strategy: burning cash to break through.

Taxation TAXATATION

Announcement of the State Taxation Administration on the Issuance of 2019 Stamp Duty Stamps

The following matters concerning the issuance of 2019 stamp duty stamps are hereby announced:

I. Content of the Tax Receipt Design

In 2019, the stamp series was themed “Silk Road Vistas,” comprising nine stamps. The denominations and corresponding motifs are as follows: 1 jiao (“Silk Road Vistas: Pioneering the Silk Road”), 2 jiao (“Silk Road Vistas: Hexi Trade Fairs”), 5 jiao (“Silk Road Vistas: Welcoming Distant Guests”), 1 yuan (“Silk Road Vistas: Ships Sailing Along the Routes”), 2 yuan (“Silk Road Vistas: Maritime Commerce”), 5 yuan (“Silk Road Vistas: Sails Hoisted High”), 10 yuan (“Silk Road Vistas: An Ancient Route, a New Journey”), 50 yuan (“Silk Road Vistas: Calm Tides, Expansive Shores”), and 100 yuan (“Silk Road Vistas: A Great Road, United in Purpose”).

In the upper-left corner of each revenue stamp is a hollowed-out seal-script character “Tax.” Along the left edge of the base of each stamp are printed the denomination and the year “2019,” while the right edge bears the title of the design, the words “China Revenue Stamp,” and a serial number arranged in ascending order according to the face value (9–X).

II. Tax Invoice Specifications

In 2019, the perforation size of the revenue stamp was 50 mm × 38 mm, with a perforation gauge of 13 × 12.5. Twenty stamps were arranged on a single sheet measuring 280 mm × 180 mm, with perforations extending to the edges on both the left and right sides.

III. Anti-Counterfeiting Measures for Tax Receipts

(1) A dumbbell-shaped perforation is used, with the perforations centered on both sides.

(2) All red elements in the illustration are printed using specially formulated anti-counterfeiting ink.

(3) Each sheet is printed with a continuous seven-digit ink code;

(4) Other technical and paper-based anti-counterfeiting measures.

IV. Other Matters

The 2019 stamp duty stamps shall come into effect as of the date of this announcement, and all previously issued editions of stamp duty stamps remain valid.

This is hereby announced.

Interpretation of the “Announcement of the State Taxation Administration on the Issuance of 2019 Stamp Duty Stamps”

To ensure the successful issuance of 2019 Chinese stamp tax stamps, the State Taxation Administration has issued the “Announcement of the State Taxation Administration on the Issuance of 2019 Stamp Tax Stamps” (hereinafter referred to as the “Announcement”). The main contents of the Announcement are set out below:

I. Background

Revenue stamps are negotiable instruments printed with a fixed face value, specifically used to collect stamp duty. They serve to generate tax revenue, certify payment of taxes, and promote tax awareness, and are periodically reissued by the State Taxation Administration. To strengthen the management of revenue stamps, enhance public recognition, and meet the needs of collectors, the State Taxation Administration simultaneously announces to the public, upon each new edition’s release, the thematic motifs and anti-counterfeiting features of the updated stamps.

II. Design and Content of the 2019 Stamp Duty Stamps

In 2019, the stamp series adopted the theme “Vistas Along the Silk Road,” highlighting the pivotal role of the ancient Silk Road and the Belt and Road Initiative in fostering trade, driving economic development, and promoting cultural exchange among countries and regions along these routes. The first three stamps depict the opening and flourishing of the ancient overland Silk Road: “Pioneering the Silk Road” portrays how Zhang Qian’s mission to the Western Regions during the Han Dynasty officially established the overland route; “Hebei Trade Fairs” illustrates merchants from various states engaging in commercial activities along the Hexi Corridor from the Wei–Jin and Northern and Southern Dynasties through the Sui Dynasty; and “Welcoming Distant Guests” shows large numbers of people from Western Regions migrating to Chang’an during the Tang Dynasty. The fourth through sixth stamps trace the evolution of the ancient maritime Silk Road: “Ships Paving the Way” depicts early coastal communities forging sea lanes; “Maritime Trade and Commerce” captures the gradual prosperity of the Song Dynasty’s maritime Silk Road; and “Sails Hoisted High” showcases the Ming Dynasty’s vast fleets venturing into the Western Ocean. The seventh through ninth stamps underscore the powerful appeal and inspiring vision of the Belt and Road Initiative: “Ancient Routes, New Paths” highlights the successful implementation of major cooperative projects along the Silk Road Economic Belt; “Tides Ebb and Flow, Shores Broaden” demonstrates the smooth operation of international maritime cooperation under the 21st Century Maritime Silk Road; and “Walking the Great Road Together” reflects the widespread participation and support for the Belt and Road Initiative.

III. Effective Date of the 2019 Stamp Duty Stamps

The 2019 revenue stamps shall come into effect as of the date of this announcement.

Shanghai, Jiangsu, Zhejiang, Anhui, and Ningbo have signed a tax agreement to support the integrated development of the Yangtze River Delta.

On December 26, 2019, the first joint meeting on tax support and services for the integrated development of the Yangtze River Delta was held in Qingpu, Shanghai. The tax authorities of the three provinces and two municipalities (Shanghai, Jiangsu, Zhejiang, Anhui, and Ningbo) signed the "Cooperation Agreement on Jointly Promoting Tax Support and Services for the Integrated Development of the Yangtze River Delta," and reviewed and approved the "Working Rules of the Joint Meeting on Tax Support and Services for the Integrated Development of the Yangtze River Delta" as well as the "Work Plan for Tax Support and Services for the Integrated Development of the Yangtze River Delta." This marked a substantive step forward in implementing the national strategy to provide tax support and services for the integrated development of the Yangtze River Delta. Reminder No. 2: For housing purchased separately by both spouses prior to marriage, only one spouse may claim the deduction for housing loan interest.

According to reports, in line with the State Taxation Administration’s deployment, the tax authorities of three provinces and two municipalities have focused on achieving “integrated tax administration and streamlined tax services” across the region. Guided by the actual needs and challenges of taxpayers and grassroots tax agencies, they have moved beyond the existing framework of tax administration and information technology, emphasizing coordination while accommodating regional differences. They have conducted multiple rounds of intensive, centralized research and engaged in thorough consultations and exchanges.

Following the issuance of the Outline for the Development Plan on Regional Integration in the Yangtze River Delta, the State Taxation Administration promptly introduced 16 measures to support and facilitate the region’s integrated development. Grounded in the principles of “integrating into integration, serving integration, and advancing integration,” these measures have established new approaches and a comprehensive framework for cross‑regional tax administration and services.

Focusing on “integration,” and aimed at fostering economic synergy and convergence across regions, measures have been introduced to streamline cross‑provincial business relocation procedures, facilitate the filing and verification of tax‑related matters across provinces, and enhance the management of property and land tax sources in other provinces. A list of one‑stop services for the Yangtze River Delta region has also been formulated. These four measures will make it far more convenient for taxpayers in the Delta to handle tax affairs across provincial boundaries. Centering on “service integration” and seeking to optimize the regional business environment, initiatives have been launched to enable smart tax administration, standardize taxpayer advisory services, improve tax services for large enterprises, and expand the scope of tax‑benefit filings from mandatory registration to record‑keeping only. In addition, a “one‑visit‑maximum” service checklist for the Yangtze River Delta has been developed, with Shanghai’s best practices in optimizing the tax‑related business climate serving as a benchmark to elevate the region’s overall taxpayer service standards. These six measures will effectively enhance taxpayers’ sense of gain and satisfaction. Lastly, with an eye toward “advancing integration,” efforts are being made to promote information sharing through dynamic credit scoring, mutual recognition of tax‑credit evaluation results, joint risk‑alert and early‑warning systems, and collaborative tax‑economic analyses. At the same time, legal and regulatory frameworks are being strengthened, with unified standards for exercising discretionary powers in tax administrative penalties, and a “first‑time‑violation‑no‑penalty” list for the Yangtze River Delta being established. These six measures will help foster taxpayers’ integrity and self‑discipline, thereby raising their compliance with tax laws.

At this meeting, in addition to signing agreements and reviewing relevant systems and plans, participants also approved a task‑allocation matrix. The tax authorities of the three provinces and two municipalities assigned responsibility for each of the 16 measures to specific units and departments, ensuring full and rigorous implementation through clearly defined objectives, quality alignment, and coordinated action. “The tax authorities of the five regions will provide mutual support and close collaboration, standardize the execution of the cooperation agreement, continuously refine the joint‑meeting mechanism, and work together to deliver on the overarching goal of ‘3+2>5’ in advancing integrated tax administration and services within the Yangtze River Delta,” said Jiang Xutao, Chief Economist of the Shanghai Municipal Tax Service of the State Taxation Administration. “Following this meeting, the various measures will be progressively rolled out and put into practice, further enabling the Yangtze River Delta to take the lead in modernizing tax administration and services, while also offering a successful model and viable experience for nationwide replication in the future.”

In addition, the 16 measures have also drawn widespread attention from taxpayers. Zhong Yan, Director of Public Affairs at Zhenkunxing Industrial Supermarket (Shanghai) Co., Ltd., expressed great anticipation for the Yangtze River Delta’s “regional one-stop service”: “Going forward, with tax-related services across the region becoming accessible through a single point of contact, we in Shanghai will be able to handle tax matters that previously required visits to multiple locations, significantly reducing our tax administration costs.” Meanwhile, Cong Haiying, Finance Manager at Shanghai Sofima Automotive Filters Co., Ltd., is particularly interested in the “Yangtze River Delta One-Visit‑Maximum List”: “I’ve heard that this list will take leading practices as its benchmark and be designed according to the principles of minimal documentation, streamlined processes, and shortest turnaround times, making tax compliance even more convenient for businesses throughout the region.” Among the 16 measures, the provisions related to taxpayer services are equally noteworthy. At the service level, while establishing a “one‑visit‑maximum” checklist for tax‑related procedures across the Yangtze River Delta, the authorities will also develop unified regional guidelines for each item on the list. Furthermore, building on the existing online self‑service capabilities of the electronic tax bureau, they will compile a separate list of offline, cross‑province/city services—such as information reporting, tax‑related data inquiries, and issuance of tax certificates—and set up dedicated service windows for inter‑regional processing. These windows will enable out-of‑jurisdiction acceptance, internal workflow, local handling, and time‑bound feedback, allowing taxpayers to complete relevant transactions at their nearest tax service hall. In terms of tax advisory services, the tax authorities of the three provinces and two municipalities are keeping pace with advances in artificial intelligence by jointly developing an integrated tax knowledge base, providing taxpayers in the region with intelligent, round‑the‑clock, multi‑channel advisory support.

It is foreseeable that, as the 16 measures are progressively implemented, enterprises in the Yangtze River Delta will benefit from increasingly high‑quality tax administration and collection services. The concentric circles of tax support and services for the integrated development of the Yangtze River Delta will continue to expand, providing stronger impetus to elevate the region’s standing and competitiveness within the global economic landscape.

Leaders of the State Taxation Administration have traveled to various localities to attend special democratic life meetings at the grassroots tax authorities.

Recently, in order to further deepen the study and implementation of the spirit of the Fourth Plenary Session of the 19th CPC Central Committee and to assess the outcomes of the thematic education campaign on “Staying True to Our Original Aspiration and Keeping Our Mission Officely in Mind,” leaders of the State Taxation Administration traveled to Anhui, Liaoning, Sichuan, Jiangsu, Shaanxi, Ningbo, and other localities to attend special democratic life meetings at the grassroots tax authorities. They sought to gain a better understanding of how the second phase of the thematic education is progressing and to solicit extensive feedback and suggestions from grassroots tax officials.

Wang Jun, Secretary of the Party Committee and Director of the State Taxation Administration, paid a visit to the Anhui Provincial Tax Authorities and attended and guided the special democratic life meeting of the Party Committee of the Suixi County Tax Bureau on the theme of “Staying True to Our Original Aspiration and Keeping Our Mission Officely in Mind.” Wang Jun expressed full approval of the Suixi County Tax Bureau’s special democratic life meeting and urged that efforts be further focused on the theme of “Staying True to Our Original Aspiration and Keeping Our Mission Officely in Mind,” with an emphasis on thoroughly studying and implementing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and on sustained, concrete action to deepen understanding, address shortcomings, and ensure effective implementation.

Wang Jun emphasized that the national tax system must continue to consolidate and expand the achievements of the thematic education campaign, steadfastly prioritize learning and education, and proactively translate these gains into concrete ideas and measures for planning reforms, addressing persistent challenges, advancing high-quality modernization of taxation in the new era, and supporting the modernization of national governance. It is essential to sustain efforts to implement corrective actions: units in the first batch of the campaign should conduct thorough “look-back” reviews, while those in the second batch should, based on issues identified during special democratic life meetings and organizational meetings, formulate targeted rectification plans and ensure their rigorous implementation through systematic alignment and follow-up. Special attention must be given to strengthening leadership teams: heads of tax authorities at all levels should consciously elevate their political awareness and take the lead in upholding democratic centralism, while deputy leaders should cultivate a sense of the bigger picture and serve as effective advisors and assistants. Furthermore, it is imperative to refine and enforce institutional frameworks, actively explore the establishment of long-term mechanisms that keep the original aspiration and mission officely in mind, and advance institutional development to support the modernization of the national governance system and governance capacity through tax administration. Finally, all work at year’s end and the beginning of the next should be coordinated and effectively managed: continue to fully and meticulously implement tax and fee reduction policies; collect tax and fee revenues in accordance with laws and regulations; improve the tax-related business environment; and carefully map out the strategic direction for next year’s tax work, thereby contributing the full strength of the tax sector to ensuring the complete building of a moderately prosperous society and the successful conclusion of the 13th Five-Year Plan. During his field visit, Wang Jun convened a symposium at the Baishan Tax Sub‑bureau of the Suixi County Tax Service Bureau, where he heard views and suggestions from representatives of grassroots township tax sub‑bureaus in Anhui, Shandong, Jiangsu, and Henan provinces on addressing prominent issues of formalism and alleviating burdens on the front lines.

Yu Chunsheng, a member of the Party Committee and Deputy Director of the State Taxation Administration, emphasized while attending the special democratic life meeting of the Benxi Municipal Tax Service Bureau of the State Taxation Administration that units in the second phase of the thematic education campaign within the tax system should take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as their guiding principle, persistently strengthen study, engage in self-cultivation with a spirit of self‑criticism, and place the Party’s political development at the forefront. They should promote the integration and mutual reinforcement of Party building and tax administration, using Party building to lead tax reform and development. Furthermore, they must continue to ensure effective implementation of corrective measures, further reinforce principal responsibility, and conscientiously carry out tasks such as revenue collection and tax and fee reductions, while establishing sound, long‑term mechanisms that address fundamental issues, deliver lasting benefits, and prioritize practical results. Finally, they should promptly and thoroughly plan ahead, refine the strategic vision for next year’s tax development, and ensure the successful completion of this year’s tasks and a strong start to next year’s tax work.

 Tax authorities at all levels have promptly organized and implemented corrective measures for the issues identified during democratic life meetings. With regard to problems that “manifest at the grassroots level but originate at higher levels,” the Party Committee of the State Taxation Administration has instructed all departments and bureaus of the Administration as well as provincial tax authorities to further strengthen coordinated, integrated efforts across different levels, ensuring that these issues are thoroughly addressed and appropriate systems are put in place. This will help establish a long-term mechanism for staying true to our original aspiration and keeping our mission officely in mind, thereby continuously consolidating and expanding the achievements of the thematic education campaign.

State-owned enterprises have improved operational efficiency, and their payable taxes and fees continue to decline.

From January to November, total profits amounted to 3.1981 trillion yuan, up 5.3% year on year. On December 23, the Ministry of Finance released statistical data showing that, during the same period, major economic indicators for state-owned and state-controlled enterprises nationwide continued to grow, while taxes and fees payable kept declining. In the first 11 months, the total profits of state-owned enterprises reached 3.1981 trillion yuan, a year-on-year increase of 5.3%.

This year, China is implementing a larger‑scale package of tax and fee reductions, with the total expected to exceed 2 trillion yuan for the full year. Bai Jingming stated that the decline in taxes and fees payable by state-owned enterprises is a clear manifestation of the impact of these policies.

Li Xuhong analyzed that, since the beginning of this year, the benefits of tax and fee reductions have continued to materialize. With the implementation and advancement of policies such as the incremental value-added tax credit refund, the year-on-year decline in taxes and fees payable by state-owned enterprises widened by 0.2 percentage points in the first 11 months compared with January–October. The easing of the operational burden on state-owned enterprises will help them further play a positive role in technological innovation, industrial upgrading, and regional coordination, thereby promoting high-quality economic development. Statistics show that at the end of November, the asset-liability ratio of state-owned enterprises stood at 64.4%, unchanged from the same period last year. Specifically, central SOEs recorded an asset-liability ratio of 67.6%, also unchanged year on year, while local SOEs registered 62%, up 0.1 percentage point.

“Under significant downward economic pressure, the leverage ratio of state-owned enterprises has remained stable, reflecting the effectiveness of a series of supply-side structural reform policies—particularly the implementation and impact of tax and fee reductions, which have boosted corporate cash flow, eased borrowing and bond‑issuance pressures, and ensured steady operations. The sound performance of state-owned enterprises indicates that downward economic pressures are manageable,” said Bai Jingming.

Litigation & Arbitration

The State Council has issued the “Opinions on Further Strengthening Efforts to Ensure Employment.”

December 24 — With Premier Li Keqiang’s approval, the State Council recently issued the “Opinions on Further Strengthening Efforts to Ensure Employment” (hereinafter referred to as the “Opinions”).

The Opinions state that, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we must comprehensively implement the spirit of the 19th National Congress of the Communist Party of China and the Second, Third, and Fourth Plenary Sessions of the 19th CPC Central Committee. We will give top priority to ensuring stable employment, strengthen bottom-line thinking, effectively implement employment‑first policies, and improve mechanisms that promote fuller and higher‑quality employment. We will simultaneously focus on creating more jobs and stabilizing existing ones, emphasize key areas, coordinate overall efforts, and adopt targeted measures, striving to prevent and defuse the risk of large‑scale unemployment and to ensure overall stability in the employment situation. The Opinions set forth six priority measures to stabilize employment.

First, we will support enterprises in stabilizing employment. We will extend for one year the temporary reductions in unemployment and work‑injury insurance rates, as well as the policies providing unemployment insurance refunds for job retention and subsidies for on‑the‑job training of employees. We will strengthen financial support for private enterprises and small and micro businesses, guide companies in expanding domestic markets, and regulate corporate layoffs.

Second, we will create more jobs. We will support the development of service sectors—such as community services, domestic work, tourism, childcare, and elderly care—that are particularly effective at generating employment. We will appropriately expand effective investment and moderately reduce the equity‑capital requirements for certain infrastructure projects. We will also study the possibility of further lowering import tariffs and institutional costs at an appropriate time.

Third, we will promote diversified employment and entrepreneurship for workers. We will lower the eligibility requirements for entrepreneurial guarantee loans for small and micro enterprises. We will launch a pilot program to provide occupational injury protection for workers in new forms of employment and promptly review and eliminate regulations that unreasonably restrict flexible employment. For individuals facing hardship who have exhausted their eligibility for social insurance subsidies for flexible employment or public‑service‑oriented positions but remain unable to secure stable employment, the period during which they can receive such benefits may be extended by one year.

Fourth, we will carry out large-scale vocational skills training. We will vigorously advance initiatives to enhance vocational skills, expand the scale of skills development and training, and strengthen the foundational capacity of vocational training. We will organize junior and senior high school graduates who do not continue their education, as well as registered unemployed individuals under the age of 20 who express interest, to participate in pre-employment training, providing them with training subsidies in accordance with relevant regulations.

Fifth, we will strengthen employment and entrepreneurship services. We will improve the employment information monitoring system, open online channels for unemployment registration, and enable cross‑regional sharing of basic information on unemployed individuals, their job‑seeking preferences, and employment services. We will enhance our capacity to track and respond to the employment impacts of major projects, large‑scale engineering initiatives, and targeted policy measures. Public employment and talent service agencies at or above the city level will ensure that job postings are published online and aggregated upward. We will implement a plan to bolster the administrative capabilities of grassroots public employment services and establish a system of regular outreach to registered unemployed individuals, along with tiered and categorized service delivery.

Sixth, ensure adequate basic living security. Promptly disburse unemployment insurance benefits; for those who have exhausted their entitlement but remain unemployed and are less than one year from the statutory retirement age, unemployment insurance benefits may continue to be paid until they reach that age. For unemployed individuals facing severe financial hardship, promptly include them, in accordance with regulations, within the scope of temporary living allowances, minimum living allowances, and emergency assistance.

The Opinions emphasize the need to strengthen organizational support for stabilizing employment by improving five mechanisms—work‑organization and coordination, financial‑resource allocation, employment‑situation monitoring, emergency‑response management, and public‑opinion guidance—so as to ensure that all localities earnestly fulfill their primary responsibility for maintaining employment and to pool robust collective efforts to achieve this goal.

Several Provisions of the Supreme People’s Court on Evidence in Civil Litigation

On the morning of December 26, the Supreme People’s Court held a press conference to release the “Decision on Amending the Several Provisions on Evidence in Civil Litigation” (hereinafter referred to as the “Amendment Decision”). Jiang Bixin, Vice President of the Supreme People’s Court, and Zheng Xuelin, Chief Judge of the First Civil Division, attended the conference to provide an overview and answer questions from reporters, while spokesperson Li Guangyu presided over the event.

As the common saying goes, “Litigation is all about evidence.” Evidence is closely linked to the protection of parties’ substantive rights and to the objective and impartiality of the people’s courts’ adjudications, thus occupying a pivotal position in litigation. Amending the Supreme People’s Court’s Provisions on Evidence in Civil Litigation (hereinafter referred to as the “Civil Evidence Provisions”) is an important measure for implementing the spirit of the Fourth Plenary Session of the 18th CPC Central Committee, advancing the reform of the litigation system centered on trial, and fully applying the rule of evidence‑based adjudication. It will help further refine the rules on civil procedural evidence and related procedural norms, better safeguard the litigants’ procedural rights, promote judicial transparency, standardize the criteria for adjudication, and enhance public confidence in the judiciary.

The first major overhaul in 18 years, with newly added provisions accounting for nearly half of the total.

The Provisions on Civil Evidence have been in effect since April 1, 2002, and have now been in force for nearly 18 years. During this period, the Civil Procedure Law has undergone three amendments—in 2007, 2012, and 2017—and the Supreme People’s Court promulgated and implemented the Interpretation on the Application of the Civil Procedure Law of the People’s Republic of China in 2015 (hereinafter referred to as the “Interpretation of the Civil Procedure Law”). As a result, significant changes have taken place in social life, the legal system, and civil litigation practice.

“In 2015, we launched the revision of the Provisions on Civil Evidence. After four years of extensive consultation and thorough deliberation, we have completed the amendment to these provisions,” Jiang Bixin stated.

It is reported that the revised “Provisions on Civil Evidence,” republished pursuant to the “Amendment Decision,” came into effect on May 1, 2020, and comprises a total of 100 articles. Of these, only 11 provisions from the original “Provisions on Civil Evidence” were retained unchanged; 41 provisions were amended, and 47 new provisions were added.

The revisions focus on four key areas: evidence collection, the admission‑of‑facts regime, sanctions for false expert testimony, and electronic data.

According to the briefing at the meeting, the main provisions of the revised “Regulations on Civil Evidence” include:

First, the system of “orders to produce documentary evidence” has been refined, expanding the avenues available to parties for gathering evidence. Building on the Interpretation of the Civil Procedure Law, the Amendment Decision sets forth the conditions for applying for such an order, the review procedures, the scope of the obligation to produce documentary evidence, and the consequences of non-compliance. Moreover, through Provision 113 of the Amendment Decision—“The provisions concerning documentary evidence shall apply to audiovisual materials and electronic data”—audiovisual materials and electronic data have been brought within the scope of the “order to produce documentary evidence.”

Second, the rules governing party admissions have been revised and refined to better balance the exercise of parties’ right of disposition with the courts’ need to ascertain the truth. This is reflected in two key aspects: first, with respect to admissions made by litigation agents, whether or not the agent has been specially authorized is no longer taken into account; except for matters expressly excluded in the power of attorney, an admission by a litigation agent is deemed to be an admission by the party itself. Second, the conditions under which a party may withdraw an admission have been appropriately relaxed: where an admission is made due to coercion or a substantial misunderstanding, the party is no longer required to prove that the admitted fact is inconsistent with the facts. In addition, the Amendment Decision sets forth provisions governing admissions by joint litigants, conditional admissions, and limited admissions.

Third, the system of written undertakings by parties and witnesses, as well as the commitment system for expert witnesses, is being refined, along with sanctions for false statements by parties and witnesses and for false expert opinions, thereby advancing the implementation of the principle of good faith in civil litigation. On the one hand, the Amendment Decision has improved the forms and contents of written undertakings required when parties are questioned and when witnesses testify, and it has introduced a provision mandating that expert witnesses sign commitment letters, so as to strengthen their internal self‑restraint.

On the other hand, the law provides for corresponding penalties for parties and witnesses who intentionally make false statements, as well as for experts who intentionally issue false expert opinions, thereby promoting the implementation of the principle of good faith in civil litigation.

Fourth, the provisions on the scope of electronic data have been supplemented and refined, and the rules for examining and evaluating such data have been clearly defined. To address practical operational issues in judicial practice, the Amendment Decision provides relatively detailed regulations on the scope of electronic data in Item 15, sets forth requirements for parties to produce electronic data and for people’s courts to investigate, collect, and preserve it in Items 16 and 25, and establishes rules for the examination and evaluation of electronic data in Items 105 and 106, thereby improving the system of evidentiary rules governing electronic data.

“The Amendment Decision sets out principled guidelines for the examination and evaluation of this new form of evidence, primarily from the perspective of assessing its authenticity,” Zheng Xuelin stated in response to questions from reporters. He added that, in judicial practice, when reviewing electronic evidence, people’s courts may commission expert appraisals, enabling specialized institutions and qualified professionals to issue authoritative opinions that assist judges in their assessment and determination.

Strengthening the exercise of the duty to clarify and accurately applying the rules on electronic data.

Jiang Bixin stated that, in implementing the Amendment Decision, people’s courts at all levels must accurately grasp the relationship between the courts’ official‑initiated evidence‑gathering and their respect for parties’ exercise of their disposal rights, as well as the proper fulfillment of the parties’ burden of proof. They should strengthen the exercise of their power to provide clarification, enhance guidance on the presentation of evidence, and encourage parties to actively, comprehensively, correctly, and honestly exercise their right to produce evidence. Furthermore, they must precisely apply the rules governing electronic data, carefully examine the impact of new technologies such as big data, cloud computing, and blockchain on the investigation, authentication, and admissibility of evidence, and guide parties in appropriately utilizing novel forms of evidence and methods of proof to meet their evidentiary obligations. Finally, they should ensure a clear understanding and correct application of the interplay between the Amendment Decision and the Interpretations of the Civil Procedure Law and the former Provisions on Evidence in Civil Litigation.

At the press conference, it was learned that, in principle, cases that had not yet been concluded as of the date the Amendment Decision came into effect shall be governed by that Decision; however, for cases that have already been concluded, applications for retrial may not be based on the provisions of the Amendment Decision. Any judicial interpretations and regulations previously issued by the Supreme People’s Court that are inconsistent with this Decision shall no longer apply.

Focus on the Group Deliberations of the Civil Code Draft: Three Major Issues in the Marriage and Family Chapter Spark Heated Debate

December 25 (Reporter Liang Xiaohui) — The draft Civil Code is currently being submitted to the Standing Committee of the 13th National People’s Congress for deliberation. During group discussions, three major issues concerning the marriage and family section of the draft have sparked intense debate.

On Improving the Divorce Cooling-off Period

Article 1077 of the draft provides for a divorce cooling-off period: Within thirty days from the date the marriage registration authority receives the application for divorce registration, either party may withdraw the application if they no longer wish to proceed with the divorce. Upon expiration of the aforementioned period, both parties must personally appear at the marriage registration authority within the subsequent thirty days to apply for the issuance of a divorce certificate; failure to do so shall be deemed a withdrawal of the divorce registration application.

Committee member Li Yuefeng believes that, in line with the original intent of the legislation, the measure is designed to prevent hasty or impulsive divorces by the parties involved, thereby safeguarding family stability. According to surveys, some courts have already begun experimenting with a cooling-off period in divorce cases: when both spouses agree, they are granted a specified period of reflection; upon expiration of this period, the court decides whether to proceed with divorce proceedings based on the parties’ attitudes, yielding positive social outcomes. However, in practice, not all registered divorces stem from impulsiveness. He pointed out that, as a general rule, no cooling-off period is necessary in cases involving bigamy, domestic violence, abandonment, or persistent vices. Therefore, a screening mechanism should be established. From a legislative‑technical standpoint, the draft currently sets forth conditions for imposing a cooling-off period but fails to specify, by way of negation, the circumstances under which such a period is unnecessary—this aspect remains in need of refinement. He proposed adding a third paragraph to Article 1077 of the draft, stating: “A cooling-off period may be waived in any of the following circumstances: (1) bigamy or cohabitation with another person; (2) perpetration of domestic violence or abuse and abandonment of family members; (3) persistent engagement in vices such as gambling or drug addiction despite repeated admonishments; (4) separation due to irreconcilable differences for a period of two years.”

Regarding the Determination of the Scope of Close Relatives

Previously, the draft of the Marriage and Family section of the Civil Code stipulated that in-laws—such as parents-in-law and in-laws—and daughters-in-law and sons-in-law who live together were to be regarded as close relatives.

During the deliberations, some parties pointed out that determining “cohabitation” is rather difficult and that it would be inappropriate to use this criterion to define whether individuals are close relatives; they therefore suggested deleting this provision. In response, the draft Civil Code removed the relevant clause, no longer relying on “cohabitation” to determine kinship. Committee member Xin Chunying noted that during the review, there were views arguing that “cohabitation” is hard to define, a position she shares. “However, now that this entire paragraph has been deleted, I believe we should not throw the baby out with the bathwater—after all, the original provision still carries meaningful substance.” She further observed that these foundational definitions in the Civil Code touch upon the rights and obligations arising from family ties, marital relationships, and blood relations. She recommended retaining the remaining content while deleting the words “cohabitation,” as the logic of this provision—defining relatives, close relatives, those treated as close relatives, and family members—constitutes a basic framework for family relationships and should not be discarded.

On the Joint Right of Residence to the Sole Marital Home

During the panel deliberations, some members proposed adding a joint right of residence to the marital home.

Committee Member Deng Li proposes adding the following provision before Article 1060 of the draft: “Where a house owned solely by one spouse constitutes the couple’s only residence, both spouses shall have the right to jointly use and reside in it, and the owner may not dispose of it at will after divorce.” The main rationale is that the marital home serves as an essential venue for spouses to fulfill their legal obligations and plays a critical role in determining matters such as litigation, inheritance, and abandonment. In rural areas, it also bears on land rights and the allocation of residential land, making it of paramount importance. To safeguard the stability and harmony of family life, it is necessary to explicitly stipulate the right of joint occupancy with respect to the couple’s sole residence.

Deng Li stated that China’s current level of social security remains relatively low. To safeguard the rights of the weaker party in marriage, the disposition of the marital home should be subject to special restrictions: the owner may not, upon divorce, arbitrarily dispose of the sole residence previously occupied jointly, thereby leaving the other spouse homeless. Moreover, the provisions on residential rights in the Property Law section of the Civil Code have yet to take into account the specific needs and unique issues arising in the context of marriage and family; therefore, it is necessary to establish rules governing family residential rights within the Marriage and Family section of the Civil Code.

The Higher People’s Court of Jiangsu Province has issued the “Guidelines for Reviewing Case‑Closing Evidence in Theft Cases (Trial Implementation).”

To thoroughly implement the requirements of the criminal procedure reform centered on trial, and to further standardize the review, evaluation, and determination of evidentiary materials in theft cases, the Provincial Higher People’s Court issued the “Guidelines for the Review of Evidentiary Materials in Theft Cases (Trial)” on December 20.

In order to fully implement the requirements of the criminal procedure reform centered on trial, to ensure uniformity in judicial standards, and to further standardize the examination, evaluation, and determination of evidence in theft cases, thereby guaranteeing lawful, impartial, and standardized adjudication of such cases, this Guideline is formulated in accordance with the Criminal Law of the People’s Republic of China, the Interpretation by the Supreme People’s Court and the Supreme People’s Procuratorate on Several Issues Concerning the Application of Law in Handling Criminal Cases of Theft, and other relevant provisions, taking into account the judicial practice of our province’s courts in hearing theft cases.

Chapter 1: General Requirements for Admissible Evidence in Theft Cases

Article 1: In accordance with the principle of adjudication based on evidence, the ascertainment of the facts of a case must be grounded in evidence; no fact may be established in the absence of evidence.

Article 2: Evidence used for conviction and sentencing must be verified as true through court‑conducted procedures, including the presentation of evidence and cross‑examination, unless otherwise provided by laws or regulations.

Article 3. In adjudicating theft cases, the specific circumstances of each case shall be taken into account, and particular attention shall be paid to examining the following evidence:

(1) Evidence concerning the defendant’s personal details, age of criminal responsibility, capacity for criminal responsibility, any prior punishments imposed, and any compulsory measures taken; if the defendant holds a special official position, evidence relating to their duties and responsibilities shall also be examined.

(2) Evidence pertaining to the defendant’s subjective factors, including the motive and purpose of the crime, awareness of the consequences, the process by which the intent arose, understanding of the function and nature of the object of the conduct, and knowledge of the victim’s condition;

(3) Evidence pertaining to the defendant’s commission of the theft, including the time, place, location, surrounding environment, means and methods employed, instruments used in the offense, number of offenses, co‑perpetrators, consequences, and the disposition of the stolen funds and property.

(4) Evidence concerning the relationships, status, division of labor, roles, and distribution of proceeds among co‑offenders;

(5) Evidence as to whether the victim is a person with a disability, an elderly person living alone, or a person who has lost the capacity to work;

(6) Evidence regarding the nature, characteristics, value, quantity, ownership, possession, and origin of the stolen property;

(7) Evidence as to whether the defendant is a recidivist or otherwise subject to enhanced punishment under the law;

(8) Evidence as to whether the defendant has any mitigating circumstances, such as voluntary surrender, confession, meritorious service, restitution, return of illicit gains, or obtaining the victim’s forgiveness;

(9) Evidence as to whether the defendant has pleaded guilty and accepted the punishment;

(10) Evidence pertaining to the investigation and resolution of the case, the defendant’s surrender, and the circumstances of the arrest;

(11) Evidence as to whether the defendant has any prior convictions or uncharged offenses, whether at the time of the offense he was serving a probation or parole period, and whether he was subject to suspension of execution of sentence or deprivation of political rights.

(12) Evidence as to whether the defendant meets the requirements for community-based correction;

(13) Other evidence relevant to the conviction and sentencing for the crime of theft, such as evidence demonstrating that the theft occurred during a specific period, was directed at a particular victim, or involved specific property, etc.;

(14) Evidence pertaining to the inquiry, seizure, freezing, identification, and return of property involved in the case.

Article 4: In cases of attempted or abandoned theft, the following evidence shall also be subject to focused examination:

(1) Evidence indicating that the theft was targeted at property of exceptionally large value or precious cultural relics, or that other circumstances are particularly serious;

(2) Evidence that the perpetrator has already commenced the act of theft but either failed to achieve the intended result, voluntarily abandoned the attempt, or voluntarily and effectively prevented the occurrence of the criminal outcome.

Chapter 2: Examination of Evidence Pertaining to the Constitutive Elements of Theft Offenses

Section 1: Examination of Evidence Regarding the Subject of the Crime

Article 5: In ascertaining the identity of the defendant, in addition to examining general circumstances, particular attention shall be paid to evidence establishing the defendant’s age at which criminal responsibility attaches, their capacity for criminal responsibility, and any prior penalties imposed. If the defendant is a foreign national or stateless, evidence shall be examined, including the valid documents presented upon their most recent entry into China or certificates issued by the embassy or consulate of the relevant country in China.

Article 6: Where the defendant’s age is in doubt and may affect conviction or sentencing, a comprehensive review and assessment shall be conducted, taking into account documentary evidence such as hospital birth certificates, school records, and vaccination records, as well as testimonial evidence from the defendant’s relatives and friends, neighbors, and birth attendants.

Article 7: Where the defendant exhibits signs of mental abnormality and his or her criminal responsibility is in doubt, a comprehensive assessment shall be conducted, taking into account the defendant’s conduct before, during, and after the commission of the offense, as well as during detention; his or her linguistic logic and level of cognitive functioning; and his or her medical history. When necessary, a forensic psychiatric evaluation shall be commissioned from a qualified institution.

Article 8: Where the defendant’s identity is in doubt, the following shall be subject to particular scrutiny:

(1) Whether the defendant’s statements regarding identity information are consistent with the facts as documented in objective evidence, as well as with the testimonies of relatives, friends, or neighbors;

(2) Whether there are any obvious discrepancies between the defendant’s physique and appearance and the photographs and recorded information contained in the objective evidence;

(3) The defendant’s personal background, including whether his accent and daily habits are consistent with his upbringing and whether they conform to the local customs and practices;

(4) Whether the defendant has any siblings or cousins, and whether there is any suspicion of impersonation;

Where identity is in doubt and the conditions for forensic examination are met, a qualified institution shall be commissioned to conduct a comparative identification of physical evidence, trace evidence, biological samples, and other items left at the crime scene against the defendant.

Section II: Examination of Evidence of Subjective Intent

Article 9: When determining that the defendant possessed the subjective intent to commit theft, particular attention shall be paid to examining the following evidence:

(1) Evidence concerning the defendant’s motive, purpose, intent to commit the crime, the planning process, and the extent of awareness of the consequences;

(2) Evidence demonstrating that the defendant has possessed, controlled, or disposed of another person’s property.

Where the objects of theft are cultural relics or funds and materials intended for disaster relief, emergency rescue, flood control, preferential treatment of entitled groups, poverty alleviation, resettlement, or humanitarian aid, the court shall also examine whether there is evidence demonstrating that the defendant was aware of the special nature and specific functions of such objects. Similarly, where the defendant unlawfully taps into another person’s communication lines, duplicates another person’s telecommunications codes or numbers, or uses telecommunications equipment or facilities knowing that they were obtained through unauthorized tapping or duplication, the court shall further assess whether there is evidence establishing that the defendant acted with the intent to profit.

Article 10: In cases where the defendant and their defense counsel contend that the act was merely a temporary loan and that there was no intent to steal, the following evidence shall be subject to thorough examination:

(1) Whether there is evidence that the defendant returned the funds in a timely manner;

(2) Evidence as to whether the relationship between the defendant and the victim meets the criteria for a loan;

(3) Whether the defendant has a need to use the property, and whether there is evidence of an actual need for its temporary use;

(4) Whether the defendant’s methods and timing of obtaining the property are consistent with the circumstances of a loan, and whether there is evidence that, following the event, the defendant promptly informed the victim of the loan.

Article 11: Where the defendant or his/her defense counsel contends that the property obtained was ownerless, lost property, or personally owned, the following evidence shall be subject to thorough examination:

(1) Evidence of the actual ownership of the property;

(2) Evidence regarding the environment in which the property is located;

(3) Evidence regarding the time, means, and methods by which the defendant obtained the property.

Section III: Examination of Evidence in Theft Cases

Article 12. When determining that the defendant has committed theft, the following evidence shall be examined with particular emphasis:

(1) Evidence that the defendant conducted a site reconnaissance and prepared the tools of the crime;

(2) Evidence regarding the time, location, participants, and number of instances of the defendant’s theft;

(3) The means, methods, and sequence of the defendant’s theft, in particular evidence demonstrating whether the theft was committed by entering a dwelling, with a weapon, or through pickpocketing;

(4) Evidence regarding the whereabouts of the stolen property, as well as evidence of its disposal or receipt.

Article 13: When determining that a staff member of the designated unit has stolen property belonging to the unit, the following evidence shall be examined with particular emphasis:

(1) Evidence pertaining to the defendant’s identity, official position, and duties;

(2) Evidence that the defendant obtained property by taking advantage of his or her official position;

(3) Evidence that the stolen property was neither under the defendant’s control, handling, nor management.

Section IV: Examination of Evidence Regarding the Amount Stolen

Article 14: In determining the amount stolen, particular attention shall be paid to examining the following evidence:

(1) Evidence pertaining to the type, model, quantity, origin, purchase price, and condition (newness or age) of the stolen property;

(2) Evidence of the amount of proceeds from the sale of stolen goods obtained by the defendant;

(3) Price appraisal opinions and other evidence issued by the price appraisal agency.

Article 15: Where stolen property is supported by valid price documentation, priority shall be given to examining such documents as purchase invoices, records of acquisition, and sales records. If no valid price documentation is available, or if the amount of the theft determined on the basis of such documentation is manifestly unreasonable, a competent price appraisal agency shall be commissioned to issue a price appraisal opinion.

Article 16: With respect to opinions on price determination, due diligence shall be exercised in reviewing the following:

(1) Whether the price appraisal institution and the appraisers possess the legally required qualifications;

(2) Whether the price determination procedure is lawful, whether the process and methods employed comply with professional standards, whether the determination opinion is clear, and whether it is relevant to the facts of the case;

(3) Whether the designated personnel have signed and whether the designated institution has affixed its seal.

Article 17: Where the value of stolen property may be directly determined in accordance with laws and judicial interpretations, the following evidence shall be subject to focused examination:

(1) In cases of theft involving foreign currency, examine evidence demonstrating the exchange rate of the foreign currency.

(2) In cases of theft involving electricity, gas, tap water, or other property, evidence shall be examined to establish the volume of consumption (including the volume stolen, the normal consumption level during the six months preceding the theft, and the average monthly consumption following the theft), as well as pricing information.

(3) Where the defendant knowingly uses telecommunications equipment or facilities that have been illegally connected to another person’s communication lines or whose telecommunications codes and numbers have been duplicated, evidence shall be examined to establish that the lawful user has paid the relevant fees, including proof of payments made directly by the lawful user after the theft, payment records, and the average monthly payment record for the six months preceding the theft.

(4) In cases of illegally tapping into another person’s communication lines or duplicating and selling another person’s telecommunications identification numbers, examine evidence that establishes the value of the stolen goods.

(5) In cases of theft involving bearer or non‑reportable‑for‑loss negotiable payment instruments, securities, or tickets, examine evidence establishing the face value of the instrument and the proceeds that could have been obtained at the time of the theft.

(6) In cases of theft involving registered negotiable payment instruments, negotiable securities, or negotiable tickets, for the portion that has already been cashed, examine evidence proving the value of the property that was cashed; for the portion that has not yet been cashed, examine evidence demonstrating the actual loss suffered by the victim.

(7) In cases of theft and subsequent use of a credit card, examine evidence documenting the card’s issuance, withdrawals, and transactions.

Article 18: In cases of theft involving special items, in addition to commissioning a price appraisal agency to determine the value, the following evidence shall be subject to thorough examination:

(1) In cases involving the theft of valuable items such as calligraphy and paintings, jewelry and jade, high‑end timepieces, luggage, and other precious goods, evidence shall be examined to establish the authenticity, condition, and quality grade of the items.

(2) In cases of theft of tobacco monopoly products, examine evidence proving the authenticity, quality, and quantity of the tobacco.

(3) In cases of theft of cultural relics, examine evidence establishing the relic’s grade;

(4) In cases involving the theft of precious or endangered animals and their products, or rare plants and their products, review evidence establishing that the stolen items are indeed precious or endangered animals, rare plants, or their products, as well as evidence demonstrating their protection status.

(5) In cases of theft of rare and valuable flora and fauna, examine evidence establishing the species to which they belong;

(6) In cases involving the theft of stamps, commemorative coins, or other items intended for special purposes, evidence verifying their authenticity shall be examined.

Chapter 3: Evidence Review in Cases of Repeated Theft Crimes

Section 1: Evidence Review in Special Types of Theft Criminal Cases

Article 19: In cases of residential burglary, the following evidence shall be subject to focused examination:

(1) Evidence demonstrating that the premises in question are intended for others’ habitation, such as whether the premises are equipped with essential amenities, whether individuals reside there on a regular or irregular basis, and the circumstances of the occupants.

(2) Whether the place of theft is a closed courtyard, whether it is equipped with locks, fences, or other measures to isolate it from the outside world, and whether it is open to the public—such evidence demonstrating that the premises are relatively isolated from the external environment;

(3) Evidence of the defendant’s unlawful entry into a residence;

Article 20: In cases involving theft committed in premises where residential and commercial activities may be intermingled, the following evidence shall be subject to thorough examination:

(1) Evidence as to whether the defendant entered the relevant premises during non‑business hours to commit theft;

(2) Whether there is evidence of clear separation between premises used for residential purposes and those used for business purposes.

Article 21: In cases of theft involving the use of a weapon, the following evidence shall be subject to focused examination:

(1) Evidence that the weapon carried by the defendant is a firearm, an explosive, a regulated knife, or other instruments prohibited by the State from being carried by individuals;

(2) Evidence that the defendant carried other instruments capable of endangering the personal safety of others in order to commit unlawful or criminal acts.

Article 22: In cases involving pickpocketing, the following evidence shall be subject to focused examination:

(1) Evidence that the theft occurred in public places open to the general public, such as train stations, docks, parks, and shopping malls, or on public transportation vehicles—such as buses, trains, ships, and subways—that serve the travel needs of the public;

(2) Evidence showing that the stolen property was carried by the victim and was under the victim’s direct possession and control.

Article 23: In cases involving repeated theft, the following evidence shall be subject to focused examination:

(1) Evidence regarding the temporal and spatial relationships among the defendant’s multiple thefts;

(2) Evidence that the defendant’s thefts occurred on three or more occasions within a two-year period;

(3) Evidence as to whether the multiple instances of theft have been subject to administrative penalties.

Section II: Examination of Evidence in Cyber Theft Cases

Article 24: In cases of cyber theft, the following evidence shall be subject to focused examination:

(1) Evidence demonstrating that the defendant obtained the victim’s account credentials, verification codes, and other related information;

(2) Evidence that the defendant used the information obtained to secretly access the victim’s account and acquire property;

(3) Evidence demonstrating that the property obtained by the defendant is of value and specifying the extent of such value;

(4) Evidence of ownership of the stolen property.

Article 25: With respect to electronic evidence in cyber‑theft criminal cases, the following shall be subject to focused examination:

(1) Whether the collection and extraction of electronic evidence are comprehensive, objective, and timely, and whether the entities and procedures involved in evidence gathering are lawful;

(2) Whether the electronic evidence is relevant to the facts to be proved;

(3) Whether the content of the electronic evidence has been falsified or tampered with, and whether there are any inconsistencies among the electronic evidence itself and between it and other evidence.

Section III: Evidence Review in Juvenile Theft Cases

Article 26: In cases of theft committed by minors, the following evidence shall be subject to focused examination:

(1) Whether the amount stolen meets the threshold for a “relatively large” sum; whether the thefts were committed more than three times; evidence as to whether, following the incident, the defendant truthfully confessed to all relevant facts and actively returned the ill-gotten gains; and whether there is evidence demonstrating that the defendant falls into one of the following circumstances: being both deaf and mute or blind; playing a secondary or auxiliary role in a joint theft; or having been coerced—where such circumstances are deemed particularly minor.

(2) Evidence as to whether the theft constitutes an attempted offense or a discontinued offense;

(3) Whether the property stolen was that of a family member or a close relative, or whether it was stolen from another relative but the other relative has requested that no prosecution be pursued—evidence to this effect.

Section IV: Examination of Evidence in Joint Theft Cases

Article 27: In cases of joint theft, the determination of common intent shall be based on a thorough examination of the following evidence:

(1) Evidence of prior joint conspiracy, planning, or tacit agreement among the defendants during the course of the offense;

(2) Whether each defendant has presented evidence of dissenting or opposing views;

(3) Evidence regarding the defendants’ agreements on the division of proceeds and the subsequent distribution thereof.

Article 28: In cases of joint theft, the determination of joint criminal conduct shall focus on examining the following evidence:

(1) Evidence concerning the division of labor, cooperation, actions, stages, procedures, and outcomes of each defendant’s theft.

(2) Evidence regarding the number of instances and the amounts involved in the joint thefts in which each defendant participated, or organized and directed;

(3) Evidence regarding the status and roles of each defendant in the joint theft.

Chapter Four: Evidence Review in the Application of Criminal Penalties

Article 29: In adjudicating theft cases, the court shall give priority to examining whether there is evidence demonstrating that the defendant falls under any of the following circumstances warranting a more severe punishment:

(1) Evidence of instigating a person under the age of eighteen to commit theft;

(2) Evidence of recidivism;

(3) Evidence of organizing or controlling minors to commit theft;

(4) Evidence of theft committed at the site of a sudden incident, such as a natural disaster, an accident-related disaster, or a public security incident;

(5) Evidence of theft of property belonging to persons with disabilities, solitary elderly individuals, or persons who have lost the capacity to work:

(6) Evidence of theft of property belonging to patients or their relatives and friends within a hospital;

(7) Evidence of theft of disaster relief funds and materials, emergency rescue supplies, flood‑control resources, preferential treatment allowances, poverty‑alleviation funds, resettlement funds, or relief supplies;

(8) Evidence of theft committed by destructive means, resulting in damage to public or private property;

(9) Evidence of theft committed for the purpose of engaging in unlawful or criminal activities, or of stolen property used in such activities;

(10) Evidence demonstrating that the defendant’s theft resulted in serious consequences for the victim, such as suicide, self-harm, or mental disorder;

(11) Evidence demonstrating that the amount stolen is at or above the threshold for a “considerable” sum, and that the offense involves multiple instances of theft, residential burglary, theft committed while carrying a weapon, or pickpocketing;

(12) Evidence of other circumstances warranting a more severe penalty.

Article 30: In adjudicating theft cases, the court shall give priority to examining evidence as to whether the defendant possesses any of the following circumstances warranting a more lenient punishment:

(1) Evidence that the theft was attempted but not completed, or was abandoned;

(2) Evidence of voluntary surrender or confession;

(3) Evidence of meritorious service;

(4) Evidence of accomplices or coerced participants;

(5) Evidence that the theft was committed out of urgent necessity for living expenses or medical treatment;

(6) Evidence that, prior to the occurrence of the crime, the stolen property was voluntarily returned to its original location or restored to the victim;

(7) Evidence that the offense involves the theft of property belonging to family members or close relatives;

(8) Evidence of active compensation for the victim’s losses;

(9) Evidence of guilty plea and acceptance of punishment;

(10) Evidence of other mitigating circumstances.

Chapter 5: Evidence Review in the Disposition of Property Involved in a Case

Article 31: In the adjudication of theft cases, with respect to property that has been sealed, seized, or frozen in the case, the following evidence shall be subject to focused examination:

(1) Evidence regarding the source, intended use, and ownership of the property involved in the case;

(2) Evidence regarding the nature, type, and value of the property involved in the case;

(3) Evidence regarding the seizure, impoundment, or freezing of property involved in the case;

(4) Evidence establishing the relationship between the property involved in the case and the act of theft.

Article 32: With respect to property involved in a case, due attention shall be paid to distinguishing its nature and handling it separately in accordance with the law. Instruments used in committing the crime shall be confiscated in accordance with the law, and any illegal proceeds shall be recovered or ordered to be returned in accordance with the law.

Jiangsu has taken the lead in enacting local regulations to promote the development of the Grand Canal Cultural Belt.

On December 27, the Standing Committee of the Jiangsu Provincial People’s Congress and the Office of the Leading Group for the Construction of the Grand Canal Cultural Belt jointly hosted a symposium in Nanjing to publicize and implement the “Decision of the Standing Committee of the Jiangsu Provincial People’s Congress on Promoting the Construction of the Grand Canal Cultural Belt.” Wang Yanwen, Member of the Standing Committee of the CPC Provincial Committee and Head of the Publicity Department, Deputy Head of the Leading Group for the Construction of the Grand Canal Cultural Belt, and Director of its Office; Xu Zhongzi, Vice Chairman of the Standing Committee of the Jiangsu Provincial People’s Congress; and Fei Gaoyun, Vice Governor, attended the meeting.

The Grand Canal is the world’s earliest‑dug, longest, and largest artificial waterway. Situated in the central section of the Grand Canal, Jiangsu Province stretches 790 kilometers from north to south and boasts the highest number of sites inscribed on the UNESCO World Heritage List—seven heritage areas comprising 28 individual heritage segments. Enacting legislation to advance the development of the Grand Canal Cultural Belt is of great significance. According to reports, the “Decision” adopted at the twelfth session of the Standing Committee of the 13th Jiangsu Provincial People’s Congress will come into effect on January 1, 2020, marking the first local regulation in China dedicated to the construction of the Grand Canal Cultural Belt.

At the meeting, Xu Zhongzi stated that the promulgation and implementation of the Decision will help fully leverage the guiding, driving, and normative roles of legislation in the development of the Grand Canal Cultural Belt; address the salient issues confronting this initiative through institutional arrangements; and ensure that our province leads the nation in advancing the construction of the Grand Canal Cultural Belt in accordance with the law. All localities and departments across the province are urged to organize thorough study and publicity efforts, and to ensure effective implementation, oversight, and inspection of the Decision. People’s Congresses at all levels throughout the province must comprehensively fulfill their supervisory functions, urging the government and relevant departments to earnestly implement the Decision and safeguard the seriousness and authority of the law.

Fei Gaoyun mobilized and deployed efforts across all levels of government and relevant departments and units to implement the Decision, calling for a thorough study and understanding of its profound significance. He urged that all parties align their thinking and actions with the decisions and arrangements of the CPC Central Committee and the provincial Party committee, as well as with the Decision promulgated by the Standing Committee of the Provincial People’s Congress, thereby strengthening both political and practical awareness in its implementation. He emphasized focusing on key priorities, tackling difficult issues, improving supporting measures, fostering coordinated efforts, and ensuring that all provisions of the Decision are effectively put into practice.

At the meeting, responsible officials from relevant provincial departments and from the prefecture-level cities concerned, drawing on their respective circumstances, delivered remarks sharing their insights on studying, understanding, and implementing the Decision.

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[Xi Jinping’s Seventh “Golden Quote” of the Year] Greatness arises from the ordinary; the ordinary makes greatness.

“Greatness arises from the ordinary, and the ordinary gives rise to greatness.” This remark by Xi Jinping at the ceremony for awarding the State Medals and State Honorary Titles on September 29 struck a chord and quickly became a widely shared, resonant catchphrase.

This concise yet profound statement, steeped in philosophical insight, instills faith and courage, ignites the youthful spirit of striving to turn dreams into reality, fuels the vigorous race of countless vessels vying for the lead, and inspires a grounded pursuit of lofty aspirations. The great cause of socialism with Chinese characteristics in the new era calls for countless extraordinary groups and individuals. Even ordinary work can yield extraordinary achievements; even ordinary people can live extraordinary lives.

Ordinariness gives rise to greatness; it requires steadfast ideals and convictions.

Honoring heroes and role models in the name of the nation is meant to celebrate their unwavering resolve, indomitable spirit, and steadfast commitment to the ideal and conviction of serving the people wholeheartedly. “This life belongs to the motherland; I have no regrets,” said Huang Xuhua, whose pure patriotism is deeply etched in his heart. “A lifetime of staying true to one’s original aspiration and never losing one’s true character”—such was Zhang Fuqing, who has set a timeless standard for those who hold fast to their faith. The light of ideals never fades, nor does the light of conviction. Only by officely upholding our ideals and convictions, translating them into concrete actions, and embracing them with sincere devotion and profound depth, can we summon the spiritual drive to forge ahead without hesitation and remain unswervingly committed—thus unlocking the extraordinary spiritual strength that enables us to stand out and achieve greatness.

Ordinary people can achieve greatness by doing ordinary things well.

Fan Jinshi has devoted more than fifty years to the desert, dedicating herself wholeheartedly to the study of the Mogao Caves; Wang Youde has spent his entire life battling sand and enduring hardship… Whether it’s the delivery rider who braves wind and rain to bring you your meal, or the Party members and cadres fighting on the front lines of poverty alleviation; whether it’s the sanitation workers who toil day after day, year after year, or the soldiers standing guard on the snowy frontier—on their ordinary posts, they work selflessly, make unreserved contributions, set aside personal gain, and put the greater good before their own families, embodying a noble spirit of selflessness.

Ordinary people can achieve greatness through an unwavering spirit of perseverance.

The indomitable spirit of struggle is embodied in the Chinese women’s volleyball team’s tenacious resolve to “fear no strong opponents and dare to fight with all their might”; it is reflected in Du Fuguo’s fearless charge at a critical moment, shouting, “You step back—let me take the lead!”; and it is exemplified by Yuan Longping’s unwavering commitment to working in the fields, relentlessly striving toward the goal of higher yields. To win the battle against poverty on schedule, we must stay focused on our goals and press ahead with determination; and to advance comprehensive and deep‑seated reform with unshakable resolve, we must keep striving and continuously push reform forward.

In 2019, through relentless effort, we are about to bid farewell to an extraordinary year.

In 2020, we will surely continue to forge ahead, steadily advancing toward the goals of the “Two Centenaries.”

China’s present has been forged through the struggles of countless ordinary people.

China’s tomorrow will be forged through the great endeavors of 1.4 billion people!

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