JC Master Legal News Issue 906

Key Takeaways for This Issue

The China Banking and Insurance Regulatory Commission has issued the Interim Measures for Equity Management of Commercial Banks, encouraging trust companies to bring in well‑established strategic investors.

To strengthen equity management at trust companies, standardize the conduct of their shareholders, and safeguard the legitimate rights and interests of trust companies and other parties involved, the China Banking and Insurance Regulatory Commission has formulated the Interim Measures for the Administration of Equity in Trust Companies (hereinafter referred to as the “Interim Measures”), which shall take effect as of March 1, 2020.

Many localities have halted land auctions, with the total starting prices amounting to RMB 34 billion.

Affected by the pandemic, since February 4, numerous cities across the country have temporarily suspended land auctions, either postponing the bidding process or rescheduling it for a later date.

Announcement of the State Taxation Administration on the Duty-Free Policy for Imported Materials Used in the Prevention and Control of the Novel Coronavirus Pneumonia Epidemic

To further support epidemic prevention and control efforts, a more favorable import tax policy will be implemented from January 1 to March 31, 2020. This announcement is hereby issued.

The General Office of the State Council has issued a notice on the “Administrative Measures for the Construction of National Government Informatization Projects,” which will take effect on February 1.

In order to standardize the management of national e‑government informationization, promote inter‑departmental and cross‑hierarchical connectivity, information sharing, and business collaboration among government information systems, and strengthen performance evaluation of their application, this Measures is formulated in accordance with the State Council’s Notice on Issuing the Interim Measures for the Management of Government Information Resource Sharing (Guofa [2016] No. 51) and other relevant provisions.

The No. 1 Central Document for 2020 has been released.

The 17th Central No. 1 Document guiding work related to agriculture, rural areas, and farmers since the beginning of the 21st century was officially released on the 5th, authorized by Xinhua News Agency.

Table of Contents

Table of Contents

Finance & Capital Markets

The China Banking and Insurance Regulatory Commission has issued the Interim Measures for Equity Management of Commercial Banks, encouraging trust companies to bring in well‑established strategic investors.

SSE: Effective February 3, the calculation of response deadlines for STAR Market issuances and other matters will be suspended.

Shenzhen Stock Exchange’s first-ever corporate bond issuance supporting epidemic prevention has been approved.

The capital market leverages its role as a catalyst for capital, helping agricultural enterprises upgrade.

Securities offices’ online operations have been only marginally affected by the pandemic, while the tug-of-war among their offline branches continues.

Corporate & Commercial

Many localities have halted land auctions, with the total starting prices amounting to RMB 34 billion.

The Big Five State-Owned Banks: During the pandemic, term deposits that matured could be automatically renewed.

Huawei says it will establish a 5G manufacturing base in Europe.

The People’s Bank of China: Ensuring that the actual financing costs for key enterprises are reduced to below 1.6%

The Ministry of Human Resources and Social Security and other authorities: During the extended Spring Festival holiday, any work performed should first be compensated with compensatory time off.

Taxation

Announcement of the State Taxation Administration on the Duty-Free Policy for Imported Materials Used in the Prevention and Control of the Novel Coronavirus Pneumonia Epidemic

Announcement of the State Taxation Administration on Clarifying VAT Policies Relating to the Leasing of State-Owned Agricultural Land, etc.

Announcement of the State Taxation Administration on Tax Policies Supporting the Prevention and Control of Pneumonia Caused by the Novel Coronavirus Infection

Announcement of the State Taxation Administration on Tax Policies Supporting Donations for the Prevention and Control of Pneumonia Caused by the Novel Coronavirus Infection

Announcement of the State Taxation Administration on Personal Income Tax Policies Supporting the Prevention and Control of Pneumonia Caused by the Novel Coronavirus Infection

Litigation & Arbitration

The General Office of the State Council has issued a notice on the “Administrative Measures for the Construction of National Government Informatization Projects,” which will take effect on February 1.

Xi Jinping presided over the third meeting of the Central Commission for Comprehensively Promoting the Rule of Law.

Sentenced for defrauding people of money by falsely claiming to sell masks in WeChat and QQ groups!

Other

The No. 1 Central Document for 2020 has been released.

Finance & Capital Markets

The China Banking and Insurance Regulatory Commission has issued the Interim Measures for Equity Management of Commercial Banks, encouraging trust companies to bring in well‑established strategic investors.

To strengthen equity management at trust companies, standardize the conduct of their shareholders, and safeguard the legitimate rights and interests of trust companies and other stakeholders, the China Banking and Insurance Regulatory Commission has formulated the Interim Measures for the Administration of Equity in Trust Companies (hereinafter referred to as the “Interim Measures”), which shall take effect on March 1, 2020. Following the promulgation of the Interim Measures, with respect to any instances where a trust company’s equity management fails to comply with the requirements set forth therein, the CBIRC will promptly issue relevant supporting measures to specify transitional arrangements for rectification and other related requirements, thereby promoting the gradual alignment of trust companies’ equity management with the Interim Measures.

The Provisional Measures draw on and retain the sound institutional practices set forth in the Provisional Measures for Equity Management of Commercial Banks, such as穿透监管 (penetration-based supervision) and classified management of shareholders. Guided by a problem‑oriented approach and anchored in a “three‑in‑one” equity‑management framework, the Measures clearly delineate the equity‑management responsibilities of the three key stakeholders—trust company shareholders, trust companies, and regulatory authorities—across all stages, from equity entry to exit.

The Provisional Measures comprise six chapters—General Provisions, Shareholder Responsibilities of Trust Companies, Duties of Trust Companies, Supervision and Administration, Legal Liability, and Supplementary Provisions—totaling 78 articles. They play a crucial role in addressing irregularities in equity management within the trust industry and strengthening the regulatory oversight of trust company equity.

SSE: Effective February 3, the calculation of response deadlines for STAR Market issuances and other matters will be suspended.

On February 2, the Shanghai Stock Exchange issued a notice stating that, effective February 3, the calculation of review deadlines—such as those for initial public offering reviews on the STAR Market, reviews of major asset restructurings by listed companies, and other related review procedures—as well as the deadline for issuers to update their financial reports, will be suspended. The specific date for resuming such calculations will be announced separately based on the progress of epidemic prevention and control measures. During the period of epidemic prevention and control, the Shanghai Stock Exchange will continue to accept, in accordance with applicable rules, applications submitted through its STAR Market review system for initial public offerings, major asset restructurings of listed companies, and other related matters. During the review process, on-site meetings and consultations by appointment will not be conducted at this time. Project personnel from sponsoring institutions may submit questions online via the Exchange’s review system or contact reviewers by phone; the STAR Market review body will respond promptly.

Shenzhen Stock Exchange’s first-ever corporate bond issuance supporting epidemic prevention has been approved.

On February 4, Wuhan CheDu Four-Water Integrated Management Co., Ltd. (hereinafter referred to as Wuhan Four-Water) received an approval letter from the Shenzhen Stock Exchange for its green‑project‑related corporate bond issuance. This marks the first innovative corporate bond issued in Hubei Province to be approved since the outbreak of the novel coronavirus pneumonia epidemic, and represents a proactive measure by the Shenzhen Stock Exchange to leverage the capital market’s mechanisms and help enterprises mitigate the adverse impacts of the pandemic.

Wuhan Sishui primarily engages in the investment, construction, operation, and maintenance of the Sishui Integrated Governance Project in the Wuhan Economic & Technological Development Zone. The project has raised RMB 1 billion, which will be allocated to flood prevention, drainage, wastewater treatment, water supply security, and the development of an information‑based platform. These efforts are of great significance for enhancing urban sanitation, promoting ecological conservation, and optimizing the region’s environmental quality. Wuhan Sishui and its lead underwriter, Changjiang Securities, are both based in Wuhan, a city that has been severely affected by the pandemic. Despite these challenges, the issuer and the project team worked tirelessly, preparing the filing documents around the clock and submitting them on the first trading day after the Spring Festival. In response, the Shenzhen Stock Exchange expedited the review process through its “green channel,” issuing a no‑objection letter the very next day.

The capital market leverages its role as a catalyst for capital, helping agricultural enterprises upgrade.

On February 5, Xinhua News Agency, acting on authorization, released the “Opinions of the CPC Central Committee and the State Council on Prioritizing Key Tasks in the ‘Three Rural Issues’ Sector to Ensure the Timely Achievement of a Moderately Prosperous Society in All Respects.” The document notes that 2020 marks both the year when the goal of building a moderately prosperous society in all respects will be achieved and the final year for securing a decisive victory in the battle against poverty. Industry insiders believe that, in winning this battle, capital market‑based poverty alleviation has emerged as an important force, capable of attracting social capital and leveraging its guiding and catalytic role.

In recent years, the China Securities Regulatory Commission has actively supported the financing and development of enterprises in poverty-stricken areas while leveraging the futures market to contribute to poverty alleviation. According to available data, as of now, 14 companies from impoverished counties have completed their initial public offerings, raising a total of approximately RMB 7.9 billion; in the 12 western provinces, municipalities, and autonomous regions—including Xinjiang and Tibet—listed companies have undertaken 269 mergers and reorganizations, with a combined transaction value of RMB 173.267 billion; additionally, the exchange‑traded market has issued 25 poverty‑alleviation bonds totaling RMB 17.074 billion, and four poverty‑related asset‑backed securities projects with a combined size of RMB 2 billion.

In terms of leveraging the futures market to support poverty alleviation, following the launch of apple futures, the Zhengzhou Commodity Exchange introduced red jujube futures. The “Insurance + Futures” pilot program has yielded increasingly tangible results: over the past three years, the Dalian, Zhengzhou, and Shanghai futures exchanges have provided substantial financial backing, while 50 futures companies and 12 insurance offices have collaborated to implement 249 pilot projects across 23 provinces, municipalities, and autonomous regions. In 2019 alone, 128 projects were approved, covering eight commodities—soybeans, corn, eggs, soybean meal, white sugar, apples, red jujubes, and natural rubber—with total funding from the three commodity futures exchanges amounting to approximately RMB 410 million, a 51% increase compared with 2018. The insured spot volume reached roughly 3.39 million tons, and among these, 62 projects targeted national-level impoverished counties, benefiting 157,700 impoverished households in 43 such counties.

Securities offices’ online operations have been only marginally affected by the pandemic, while the tug-of-war among their offline branches continues.

Following the outbreak of the novel coronavirus pneumonia epidemic, numerous securities offices promptly established epidemic‑control leading groups and put in place emergency response mechanisms. After A‑shares reopened on February 3, brokerage branches were fully prepared, with virtually all core services seamlessly shifted to online channels. Given that the securities industry is already highly digitized, this pandemic has had only a limited impact on the normal operations of brokerage offices.

Meanwhile, as offline branches serve as a key channel for securities offices to expand their business, these offices have not slowed their expansion efforts, and the tug-of-war over the establishment and closure of branch offices continues to intensify. According to observations by a Securities Daily reporter, in just over a month since the beginning of 2020, three listed securities offices have received approval to set up 28 new branches—19 new sales offices and 9 new subsidiaries—while another three listed offices have closed five sales offices.

Commercial & Corporate

Many localities have halted land auctions, with the total starting prices amounting to RMB 34 billion.

Affected by the pandemic, since February 4, numerous cities across the country have temporarily suspended land auctions, either postponing the bidding process or rescheduling it for a later date.

On February 5, the Zhejiang Provincial Land Use Rights Website issued supplementary announcements for several parcels, suspending the planned auction of 10 plots in Hangzhou’s ten districts—originally scheduled for next week (February 10–14)—with a combined starting price of RMB 6.97 billion. Meanwhile, on February 4, Beijing and Tianjin postponed the release of eight residential and commercial land parcels to the market, with a total expected transaction value exceeding RMB 16 billion.

According to incomplete statistics, based on nationwide land‑sale activity, on January 31, Nantong, Jiangsu Province, listed a parcel with a starting price of RMB 5.869 billion, which was won by China Merchants Shekou at the reserve price. On February 3, Hangzhou sold a residential plot at auction for RMB 390 million, with a premium of 29.66%.

Since February 4, numerous cities including Beijing, Tianjin, Shanghai, Hangzhou, and Chongqing have temporarily suspended land auctions, with the total starting prices of the affected parcels exceeding RMB 34 billion. Furthermore, according to the scheduled auction timetable, Beijing was set to bring 10 residential and commercial‑service land parcels—totaling over RMB 30 billion in land value—onto the market in February; however, some of these plots have already been put on hold, and it remains to be seen whether the remaining parcels will proceed as originally planned.

According to incomplete statistics from the E-House Real Estate Research Institute, in January 2020, at least 45 of China’s 100 major cities had clearly defined land‑supply plans; these cities will need to closely monitor the pandemic’s impact on the land market. The primary reasons for the current delays in scheduled land auctions are twofold: first, under the pandemic conditions, it is necessary to avoid on‑site gatherings, and the extension of the holiday period has further postponed auction schedules; second, during the epidemic, the vast majority of real estate projects and sales offices nationwide have been subject to “sales suspension orders” and “construction halt orders,” disrupting land investment, transactions, and project commencement. As a result, property developers face significant financial pressures, leading to a diminished appetite for land acquisition.

Generally speaking, the first quarter is a prime window for property developers to acquire land. Given typical project turnover cycles, land acquisitions made at the start of the year can typically lead to sales launches within the same year, with revenue contributions by year-end. However, this year’s sudden outbreak of the pandemic has disrupted both the land‑sale process and developers’ investment strategies, which are usually guided by cash‑flow considerations. With cash inflows from sales severely hampered and financing conditions remaining tight, companies are unlikely to expand their investment scale indiscriminately.

The Big Five State-Owned Banks: During the pandemic, term deposits that matured could be automatically renewed.

Recently, the five major state-owned banks—ICBC, Agricultural Bank of China, Bank of China, China Construction Bank, and Postal Savings Bank of China—have issued announcements stating that they will automatically renew personal time deposits in both domestic and foreign currencies that are nearing maturity. Interest will continue to accrue at the original rate through March 31, 2020. Once the epidemic situation stabilizes, customers may visit a branch to withdraw their funds and handle any subsequent transactions.

However, major banks have slightly different policies regarding the automatic extension of maturity dates for time deposits. Specifically, Industrial and Commercial Bank of China (ICBC) and Agricultural Bank of China (ABC) will, for customers holding paper certificates of personal RMB and foreign‑currency time deposits that mature between January 24 (inclusive) and March 31 (inclusive)—including ICBC’s whole‑deposit‑whole‑withdrawal products and large‑denomination certificates of deposit, as well as ABC’s whole‑deposit‑whole‑withdrawal time deposit certificates, regular “One‑Book” passbooks, “Nonghang Yinlido” products opened with certificates or passbooks, and paper‑based personal large‑denomination certificates of deposit—extend interest accrual at the original rate through March 31 if customers are unable to visit a branch to withdraw funds or renew their deposits before that date. For customers who have already visited a branch to arrange a standard renewal on their own, the banks will apply the terms and interest rates corresponding to the renewed deposit period.

In addition, ICBC encourages customers to handle the automatic renewal of time deposits—without a physical certificate—online through its online banking and mobile banking platforms. Meanwhile, ABC states that for time deposits held in debit cards or electronic accounts that mature during the aforementioned period, customers can process the renewal online via ABC’s mobile banking app or online banking channels.

In addition, Bank of China, China Construction Bank, and Postal Savings Bank of China have stated that for customers holding fixed‑term deposits with these banks that do not automatically renew upon maturity, if the maturity date falls between January 31 (inclusive) and March 31 (inclusive), the bank will automatically extend the deposit to March 31 at the interest rate agreed upon at the time of deposit. Customers may choose to visit a branch after the epidemic situation has stabilized to withdraw their funds and handle any subsequent transactions.

Huawei says it will establish a 5G manufacturing base in Europe.

At the Chinese New Year reception held in Brussels, Huawei’s EU representative, Liu Kang, stated: “Huawei is more committed to Europe’s development than ever before, which is why we have decided to establish a manufacturing base in Europe—so that we can truly offer 5G products made in Europe, for the European market.”

Just a few days ago, the European Union recommended that member states may bar telecom operators deemed to pose security risks from participating in the construction of critical components of 5G infrastructure. However, the EU’s plan does not prohibit Huawei from taking part in the next-generation communication networks for instant data transmission. This proposal closely mirrors the rules adopted by the United Kingdom, which allow Huawei to play a limited role. The aforementioned guidelines are the result of months of painstaking deliberation within the EU, as the bloc has sought to strike a balance between Huawei’s substantial dominance in the 5G arena and the security concerns raised by Washington.

The People’s Bank of China: Ensuring that the actual financing costs for key enterprises are reduced to below 1.6%

On February 7, the People’s Bank of China held a video conference to roll out special-purpose relending facilities in support of epidemic prevention and control efforts. Financial institutions were encouraged to extend loans at interest rates below the statutory cap. Meanwhile, the central government will subsidize 50% of the actual loan interest rate paid by enterprises, ensuring that their effective financing costs are reduced to below 1.6%.

The meeting emphasized that the central banking system should establish an electronic ledger for financial institutions’ loans, track and oversee the use of special-purpose relending funds, ensure that these funds are used exclusively for their designated purposes, and disburse them promptly to support production and business activities related to epidemic prevention and control.

The People’s Bank of China, together with relevant departments, has introduced 30 targeted financial measures to support epidemic prevention and control, providing liquidity support beyond expectations to stabilize financial markets and establishing a special re-lending facility totaling RMB 300 billion. This special re‑lending program is a key macroeconomic policy for ensuring supply; through it, the central bank provides low-cost funding to major national banks and to selected local legal‑person banks in Hubei and other key provinces, enabling them to extend preferential‑rate loans to enterprises engaged in the production, transportation, and sale of critical medical supplies and essential daily necessities.

Key enterprises are subject to a roster‑based management system, with the list determined by the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the provincial governments of key regions. Financial institutions are responsible for loan review and post‑loan management; the interest rate on loans disbursed using special re‑lending funds may not exceed the most recently published one-year Loan Prime Rate (LPR) minus 100 basis points—currently 3.15%—and financial institutions are encouraged to extend loans at rates below this cap. The central government provides a 50% interest subsidy on the actual loan rates borne by enterprises, ensuring that their effective financing costs are reduced to below 1.6%.

The Ministry of Human Resources and Social Security and other authorities: During the extended Spring Festival holiday, any work performed should first be compensated with compensatory time off.

On February 7, the Ministry of Human Resources and Social Security, the All-China Federation of Trade Unions, the China Enterprise Confederation/China Entrepreneurs Association, and the All-China Federation of Industry and Commerce jointly issued the “Opinions on Maintaining Stable Labor Relations and Supporting Enterprises in Resuming Work and Production During the Prevention and Control of Pneumonia Caused by the Novel Coronavirus Infection.” The Opinions stipulate that, for employees who are unable to take leave during the extended Spring Festival holiday due to epidemic prevention and control measures, employers should first arrange compensatory time off; where compensatory time off cannot be arranged, overtime wages shall be paid in accordance with the law.

The Opinions stipulate that labor‑employment issues during the epidemic prevention and control period shall be handled with flexibility.

Encourage the negotiation of labor‑related issues prior to resuming work. For employees unable to report to work on schedule or for enterprises unable to resume production due to the epidemic, guide employers to proactively engage with their workforce; where feasible, allow employees to perform their duties from home using flexible arrangements such as telework or online platforms. For enterprises that cannot implement remote work, negotiate with employees to prioritize the use of paid annual leave, employer‑provided welfare leave, and other types of leave. Furthermore, instruct enterprise trade unions to actively mobilize workers to stand together with their employers, balancing the legitimate rights and interests of both parties while helping enterprises minimize losses caused by the epidemic.

Encourage flexible work arrangements. During the epidemic prevention and control period, to reduce gatherings of people, enterprises that meet the relevant requirements should be encouraged to implement flexible employment measures, consulting with employees to adopt staggered or flexible working hours. For enterprises tasked with critical government epidemic‑prevention and control duties that require urgent overtime, while ensuring workers’ health and workplace safety, guidance should be provided to facilitate consultations between employers, trade unions, and employees, allowing for appropriate extensions of working hours to address emergency production needs, without being subject to statutory limits on overtime.

Provide guidance on standardizing employment management. During the epidemic prevention and control period, enterprises should be guided to thoroughly ascertain whether their employees are subject to quarantine measures or other emergency measures imposed by the government, and they must not terminate the labor contracts of employees who are unable to perform normal work due to such measures, nor reassign dispatched workers back to their original employers. For enterprises that meet the requirements for resuming work, guidance should be provided to ensure they implement necessary preventive and occupational safety measures and actively encourage employees to return to their posts. For employees who are reluctant to resume work, enterprise trade unions should promptly communicate the policies and requirements related to epidemic prevention and control, as well as the importance of resuming operations, and proactively persuade these employees to return without delay. If persuasion proves ineffective or if employees refuse to return on other unjustified grounds, enterprises should be guided to handle such cases in accordance with the law. Enterprises are encouraged to explore innovative approaches and mechanisms for stabilizing labor relations. For those that, despite taking appropriate measures, still need to carry out layoffs, enterprises should be guided to develop layoff plans, comply with relevant legal procedures, manage labor relations appropriately, and maintain the normal order of production and operations.

Taxation TAXATATION

Announcement of the State Taxation Administration on the Duty-Free Policy for Imported Materials Used in the Prevention and Control of the Novel Coronavirus Pneumonia Epidemic

To further support epidemic prevention and control efforts, a more favorable import tax policy will be implemented from January 1 to March 31, 2020. The following announcement is hereby made:

I. Appropriately expand the scope of duty‑free importation under the Provisional Measures on Exemption from Import Taxes for Charitable Donations, exempting imported goods donated for epidemic prevention and control from import duties, value‑added tax at the import stage, and consumption tax.

(1) Imported supplies include reagents, disinfectants, protective equipment, ambulances, epidemic‑prevention vehicles, disinfection vehicles, and emergency command vehicles.

(2) The scope of tax exemption is expanded to include donations directly imported from abroad or from special customs supervision zones and donated by relevant domestic government departments, enterprises, public institutions, social organizations, individuals, as well as foreign nationals entering or residing in China; it also covers donations made by domestic processing‑trade enterprises. Such donated goods must be used exclusively for epidemic prevention and control and must comply with the provisions set forth in paragraph (1) above or with the Interim Measures on the Exemption of Import Taxes for Charitable Donations.

(3) The recipient shall add the provincial civil affairs department or a unit designated by it. The provincial civil affairs department shall notify, in writing, the directly affiliated customs authority and the provincial tax authority of the locality of the list of designated units.

Donated imported goods without a designated recipient shall be accepted by the Red Cross Society of China, the All-China Women’s Federation, the China Disabled Persons’ Federation, the China Charity Federation, the China Primary Health Care Foundation, the China Soong Ching-ling Foundation, or the Chinese Cancer Foundation as the recipients.

II. Tariffs shall be exempted on goods imported under the organization of the health and health‑related authorities that are directly used for epidemic prevention and control. Such imported goods shall comply with either paragraph (1) of Article 1 set forth above or the provisions of the Interim Measures on the Exemption of Import Taxes for Charitable Donations. The provincial finance departments (bureaus), in coordination with the provincial health and health‑related authorities, shall determine the list of importing entities and the inventory of imported goods, and shall notify the local directly affiliated customs offices and the provincial tax authorities by official letter.

III. With respect to the tax‑exempt imported goods covered by this announcement, any duties and taxes that have already been collected shall be refunded. Specifically, for imports on which duties have been paid but for which input VAT credit has not yet been claimed, the importer may, upon presentation of the “Certificate of Unclaimed Input VAT Credit for Imported Goods Used in Preventing and Controlling the Novel Coronavirus Pneumonia Epidemic” issued by the competent tax authority (see attachment), apply to Customs for a refund of the import duties, as well as the import‑stage value‑added tax and consumption tax. For imports for which input VAT credit has already been claimed, the importer need only apply to Customs for a refund of the import duties and the import‑stage consumption tax. Relevant importing entities shall complete the refund procedures with Customs no later than September 30, 2020.

IV. With respect to the tax‑exempt imported goods covered by this announcement, they may, in accordance with or by analogy to General Administration of Customs Announcement No. 17 of 2020, be registered and released first, with the relevant formalities subsequently completed as required.

Announcement of the State Taxation Administration on Clarifying VAT Policies Relating to the Leasing of State-Owned Agricultural Land, etc.

The VAT policies regarding the leasing of state-owned agricultural land, among others, are hereby announced as follows:

I. Where a taxpayer leases state-owned agricultural land to agricultural producers for agricultural production, value-added tax shall be exempted.

II. For general taxpayers among real estate development enterprises, if they acquire an existing real estate project that is still under construction and subsequently continue its development, any real estate sold under the taxpayer’s own name shall be deemed an existing real estate project and may elect to apply the simplified tax calculation method, with VAT payable at a rate of 5%.

III. In accordance with Item (3) of Article 4 of the “Notice of the Ministry of Finance and the State Taxation Administration on Clarifying Policies Such as the VAT Exemption for Elderly Care Institutions” (Cai Shui [2019] No. 20), insurance companies shall offset their VAT liabilities in subsequent months. Any remaining unoffset amount as of December 31, 2020, may be subject to a one-time refund application submitted to the competent tax authority.

IV. Where a taxpayer exports goods or services, or engages in cross-border taxable activities, and fails to file for export tax refund (exemption) or obtain the “Certificate of Agency Export of Goods” within the prescribed time limit, such taxpayer may file for export tax refund (exemption) upon submission of all required refund (exemption) documents and relevant electronic information. If foreign exchange is not received within the prescribed time limit, or if procedures for non‑collectibility have not been completed, the taxpayer may file for refund (exemption) once the foreign exchange has been received or the non‑collectibility procedures have been finalized. The provisions set forth in Article 6, Paragraph (1), Subparagraph 3, Article 7, Paragraph (1), Subparagraph 6, and Article 9, Paragraph (2), Subparagraph 2 of the “Notice of the Ministry of Finance and the State Taxation Administration on the Value-Added Tax and Consumption Tax Policies for Exported Goods and Services” (Cai Shui [2012] No. 39) shall accordingly be discontinued.

V. Effective August 20, 2019, Article 1 of the “Notice of the Ministry of Finance and the State Taxation Administration on the VAT Exemption Policy for Interest Income from Small and Micro Enterprise Loans by Financial Institutions” (Cai Shui [2018] No. 91) shall be amended to read: “the benchmark lending rate of the People’s Bank of China for the corresponding period,” which is hereby replaced with “the Loan Market Quote Rate published by the National Interbank Funding Center authorized by the People’s Bank of China.”

VI. Taxpayers who have received a refund of input VAT credit in accordance with the “Announcement of the Ministry of Finance, the State Taxation Administration, and the General Administration of Customs on Policies Related to the Deepening of VAT Reform” (Ministry of Finance, State Taxation Administration, and General Administration of Customs Announcement No. 39 of 2019) and the “Announcement of the Ministry of Finance and the State Taxation Administration on Clarifying the Policy for Refunding End-of-Period Input VAT Credit for Certain Advanced Manufacturing Industries” (Ministry of Finance and State Taxation Administration Announcement No. 84 of 2019) shall not, thereafter, apply for the preferential policies of immediate VAT collection and refund or collection first followed by refund (return).

Prior to the date of this announcement, taxpayers who have already received VAT credit refunds in accordance with the aforementioned provisions shall, by June 30, 2020, remit in full any VAT credit refunds previously issued; they may then, as prescribed, avail themselves of the policies of immediate VAT refund upon collection and refund upon collection after payment. Otherwise, they shall not be eligible for such policies.

VII. This announcement shall take effect from the date of its issuance. Any matters that have already occurred but remain unresolved shall be handled in accordance with the provisions of this announcement.

This is hereby announced.

Announcement of the State Taxation Administration on Tax Policies Supporting the Prevention and Control of Pneumonia Caused by the Novel Coronavirus Infection

To further strengthen the prevention and control of pneumonia caused by the novel coronavirus infection and to support the development of relevant enterprises, the following tax policies are hereby announced:

I. For enterprises producing key materials for epidemic prevention and control, equipment newly purchased to expand production capacity may be fully expensed in the current period and deducted before corporate income tax.

II. Enterprises producing key materials for epidemic prevention and control may, on a monthly basis, apply to their competent tax authorities for a full refund of the incremental input VAT credit.

The incremental input VAT credit referred to in this announcement means the increase in the end-of-period input VAT credit compared with the balance as of December 31, 2019.

The list of enterprises producing key materials for epidemic prevention and control, as referred to in Articles 1 and 2 of this announcement, shall be determined by the development and reform departments and the industrial and information technology departments at or above the provincial level.

III. Value-added tax shall be exempted on income derived by taxpayers from the transportation of key materials essential for epidemic prevention and control.

The specific scope of key materials for epidemic prevention and control shall be determined by the National Development and Reform Commission and the Ministry of Industry and Information Technology.

IV. For enterprises in industries severely affected by the pandemic, the maximum carryforward period for losses incurred in 2020 is extended from 5 years to 8 years. The eligible industries include transportation, catering, accommodation, and tourism (covering travel agencies and related services, as well as scenic‑spot management). Specific eligibility criteria shall be determined in accordance with the current “National Economic Industry Classification.” Furthermore, for such enterprises, revenue from their principal business activities must account for at least 50% of total revenue (excluding non‑taxable income and investment income) in 2020.

V. Income derived from providing public transportation services, lifestyle services, and express delivery and collection services for essential daily necessities to residents shall be exempt from value-added tax. The specific scope of public transportation services shall be governed by the “Provisions on Matters Relating to the Pilot Program for Replacing Business Tax with Value-Added Tax” (issued as Cai Shui [2016] No. 36). The specific scope of lifestyle services and express delivery and collection services shall be governed by the “Notes on the Sale of Services, Intangible Assets, and Real Estate” (issued as Cai Shui [2016] No. 36).

VI. This announcement shall take effect as of January 1, 2020, and its expiration date will be announced separately depending on the epidemic situation.

Announcement of the State Taxation Administration on Tax Policies Supporting Donations for the Prevention and Control of Pneumonia Caused by the Novel Coronavirus Infection

To support the prevention and control efforts for pneumonia caused by the novel coronavirus infection, the following tax policies regarding donations are hereby announced:

I. Enterprises and individuals who donate cash and goods through public‑interest social organizations or state organs such as people’s governments at or above the county level and their departments, for the purpose of responding to the novel coronavirus pneumonia epidemic, shall be permitted to deduct the full amount when calculating taxable income.

II. Enterprises and individuals that directly donate goods to hospitals undertaking epidemic prevention and control tasks for the purpose of responding to the novel coronavirus pneumonia outbreak shall be permitted to deduct the full amount when calculating taxable income.

Donors may claim pre‑tax deductions by presenting the donation receipt issued by a hospital undertaking epidemic prevention and control duties.

III. Units and individual industrial and commercial households that donate, free of charge, goods they have produced themselves, commissioned for processing, or purchased—through public welfare social organizations, state organs such as people’s governments at or above the county level and their departments, or directly to hospitals undertaking epidemic prevention and control tasks—for the purpose of responding to the novel coronavirus pneumonia outbreak shall be exempt from value-added tax, consumption tax, urban maintenance and construction tax, the education surcharge, and the local education surcharge.

IV. Donations received by state organs, public-interest social organizations, and hospitals tasked with epidemic prevention and control shall be used exclusively for efforts to address the novel coronavirus pneumonia outbreak and may not be diverted for any other purpose.

V. This announcement shall take effect as of January 1, 2020, and its expiration date will be announced separately depending on the epidemic situation.

Announcement of the State Taxation Administration on Personal Income Tax Policies Supporting the Prevention and Control of Pneumonia Caused by the Novel Coronavirus Infection

To support the prevention and control of pneumonia caused by the novel coronavirus infection, the following personal income tax policies are hereby announced:

I. Temporary work allowances and bonuses received by medical personnel and epidemic prevention workers engaged in epidemic prevention and control, in accordance with the standards prescribed by the government, shall be exempt from individual income tax. The government‑prescribed standards include the allowance and bonus rates set by governments at all levels.

The temporary work allowances and bonuses granted to personnel involved in epidemic prevention and control, as stipulated by the people’s governments at or above the provincial level, shall be implemented by analogy.

II. Physical items such as medicines, medical supplies, and protective gear provided by employers to employees for the prevention of novel coronavirus pneumonia (excluding cash) shall not be included in wages or salary income and are exempt from personal income tax.

III. This announcement shall take effect as of January 1, 2020, with the expiration date to be announced separately depending on the epidemic situation.

Litigation & Arbitration

The General Office of the State Council has issued a notice on the “Administrative Measures for the Construction of National Government Informatization Projects,” which will take effect on February 1.

Measures for the Administration of National Government Informatization Project Construction

Chapter I General Provisions

Article 1

In order to standardize the management of national e‑government informationization, promote inter‑departmental and cross‑hierarchical connectivity, information sharing, and business collaboration among government information systems, and strengthen performance evaluation of their application, this Measures is formulated in accordance with the State Council’s Notice on Issuing the Interim Measures for the Management of Government Information Resource Sharing (Guofa [2016] No. 51) and other relevant provisions.

Article 2

The national government information systems to which these Measures apply primarily include: the national unified e‑government network platform, key national business information systems, national information resource databases, national information security infrastructure, national e‑government infrastructure (such as data centers and server rooms), the national e‑government standardization system, and related supporting systems—provided that such systems comply with the provisions set forth in the “Definition and Scope of Government Information Systems.”

Article 3

The management of national e-government informationization shall adhere to the principles of unified planning, joint construction and shared use, business synergy, and security and reliability.

Article 4

The National Development and Reform Commission is responsible for leading the formulation of the national plan for e‑government informationization and for implementing record‑keeping management of national e‑government informationization projects approved by various departments. The Ministry of Finance is responsible for budgetary management and government procurement oversight of such projects. Relevant departments, in accordance with their respective responsibilities, shall oversee the approval, construction, operation, and security supervision of national e‑government informationization projects, and, in line with the principle of “prioritizing coordination while integrating coordination with decentralization and emphasizing practical effectiveness,” strengthen the parallel management of these projects.

Article 5

The National Development and Reform Commission, in coordination with the Cyberspace Administration of China, the General Office of the State Council, and the Ministry of Finance, has established a consultative mechanism for the management of national government informationization initiatives, ensuring overall planning and coordination, conducting oversight, inspections, and evaluations, disseminating best practices and achievements, and fostering synergies across relevant sectors.

Chapter 2: Planning and Approval Management

Article 6

The National Development and Reform Commission, in coordination with relevant departments, formulates the National Plan for Government Informatization Construction by comprehensively considering and thoroughly assessing the construction needs of all departments, in light of the principles governing information technology development and the specific characteristics of government informatization. The plan is submitted to the State Council for approval before implementation. Should significant changes occur in the internal or external development environment, an appropriate assessment and review shall be organized, and proposed adjustments shall be submitted to the State Council for approval. When preparing plans that involve government informatization, each relevant department shall ensure alignment with the National Plan for Government Informatization Construction.

Article 7

Government informationization projects subject to approval by the National Development and Reform Commission or submitted to the State Council for approval, as well as other government informationization projects managed through project approval procedures by relevant departments, shall, in principle, encompass stages such as the preparation of project proposals, feasibility study reports, and preliminary design plans.

For projects that have already been included in the national e-government development plan, a feasibility study report may be prepared and submitted directly.

For projects that are subject to explicit requirements from the CPC Central Committee and the State Council, or that involve major national strategies, national security, or other special circumstances, where urgency is paramount and the preliminary work has reached the prescribed level of depth, a project feasibility study report, a preliminary design scheme, and an investment estimate may be prepared directly.

Article 8

In principle, national e‑government information projects will no longer be subject to approval procedures such as energy‑saving assessments, site‑selection planning, preliminary land‑use reviews, or environmental impact assessments, except for new civil‑engineering projects and high‑energy‑consumption initiatives.

Article 9

Except for projects subject to approval by the National Development and Reform Commission or submitted to the State Council for review, other relevant departments shall, when independently approving new, renovated, or expanded national government information projects, as well as those initiated through government procurement of services, comply with the prescribed approval procedures and file such projects with the National Development and Reform Commission.

The filing documents shall include the project name, the implementing entity, the approving authority, performance objectives and indicators, the investment amount, operating and maintenance funding, funding sources, an inventory of information resources, arrangements for information sharing and openness, the application system, records of classified protection or tiered protection compliance, a cryptographic application plan, and a cryptographic application security assessment report. For renovation and expansion projects, a third-party post‑evaluation report on the preliminary phase must also be submitted.

Article 10

For inter‑departmental government information projects that are jointly built and shared, the lead department, in coordination with participating departments, shall jointly develop an inter‑departmental engineering framework. Once a unified framework plan is finalized, it shall be submitted jointly to the National Development and Reform Commission. The framework plan must specify the participating departments, project objectives, and core components; delineate the business flows, data flows, and system interfaces between each department’s sub‑projects and the overall project; and preliminarily establish a data catalog, ensuring that the content developed by each department is non‑redundant and non‑overlapping, thereby meeting the requirements for joint construction and shared use. Following approval of the framework plan, each department shall, in accordance with project management requirements, submit applications to build its respective component.

Relevant departments shall, for government information projects requiring local-level sharing and coordination, adhere to the principles of unified planning, tiered approval, tiered implementation, and shared collaboration, and strengthen alignment with existing local initiatives. Project‑implementing entities shall provide robust guidance to local authorities and systematically establish overarching requirements and standard specifications for information sharing and business collaboration. Local project‑implementing entities shall, in accordance with applicable local regulations, carry out project approval and implementation based on the project’s overall objectives, integrated framework, construction tasks, performance goals, and relevant indicators, while ensuring effective coordination and cooperation with the national-level project‑implementing entities.

Article 11

The feasibility study report and the preliminary design scheme shall include a section (chapter) on information resource sharing analysis. The evaluation report prepared by the consulting and assessment agency shall contain its assessment opinions on the information resource sharing analysis section (chapter). The approval document issued by the reviewing authority or the submission to the State Council shall also include its views on the information resource sharing analysis section (chapter).

The project‑implementing entity shall prepare an inventory of information resources, establish a long‑term mechanism for information sharing and a feedback mechanism on the use of shared information, and ensure the effective sharing of information. It shall not restrict access to data that should be universally shared to specific enterprises or social organizations only.

An information resource catalog is a prerequisite for the approval of government informatization projects. The scope and extent of information resource sharing, as well as the state of network security, serve as key criteria for determining project investment, operational and maintenance budgets, and acceptance standards.

Article 12

All newly initiated government informationization projects across all departments shall be submitted for approval or filing through the Government Informationization Project Management Sub‑platform of the National Online Approval and Supervision Platform for Investment Projects (hereinafter referred to as the “Management Platform”).

All central-level government information systems shall be fully incorporated into the management platform for unified administration. Each department shall promptly update its own catalog of government information systems on the management platform. The management platform will aggregate this information to produce a national master catalog of government information systems.

Chapter 3: Construction and Fund Management

Article 13

The project‑implementing entity shall designate a project implementation agency and a project responsible person, establish and improve a comprehensive project management system, strengthen overall coordination throughout the entire project lifecycle, enhance information sharing and inter‑departmental collaboration, and strictly comply with relevant regulations on tendering and bidding, government procurement, engineering supervision, contract management, and other related areas. Where confidential information systems are subject to tendering and procurement, compliance with applicable laws and regulations on confidentiality is also required.

Article 14

The project‑implementing entity shall, in accordance with the Cybersecurity Law of the People’s Republic of China and other relevant laws and regulations, as well as pertinent provisions on security management for Party and government organs, establish a cybersecurity management system, adopt technical measures, strengthen the construction of security and confidentiality facilities for government information systems and information resources, and conduct regular cybersecurity inspections and risk assessments to ensure the secure and stable operation of information systems.

Article 15

The project construction entity shall comply with the requirements of relevant national laws, regulations, and standards on cryptographic management, and shall plan, construct, and operate the cryptographic security system in a synchronized manner, while conducting regular assessments.

Article 16

The project shall employ secure and reliable software and hardware products. During the project approval stage, a detailed assessment of the products’ security and reliability must be provided. The security and reliability of the project’s software and hardware, the status of cryptographic applications and security reviews, as well as the energy efficiency of hardware equipment and newly constructed data centers, constitute key components of the project acceptance process.

Article 17

The project construction entity shall fully leverage cloud service resources to implement centralized construction.

Article 18

For projects with excessively large per capita investment and where the project‑implementing entity lacks the capacity to construct, operate, maintain, and manage them, full use should be made of the roles of relevant functional departments or outsourcing should be employed, thereby reducing reliance on in‑house construction, management, utilization, and maintenance.

Article 19

National government informationization projects shall be subject to an engineering supervision system. The project‑undertaking entity shall, in accordance with the relevant provisions on information system engineering supervision, entrust an engineering supervision agency to carry out engineering supervision over the project’s construction.

Article 20

The project implementing entity shall evaluate the implementation of the project’s performance targets, solicit feedback from the relevant user units and the supervising unit, prepare a project performance evaluation report, and submit it to the project approval authority by the end of each year during the construction period.

The project performance evaluation report primarily covers construction progress and the implementation of the investment plan. For systems that have already been put into trial operation, it should also detail the trial‑run results and any issues encountered.

Article 21

If, during the course of project construction, serious delays or substantial investment losses occur, the project‑implementing entity shall promptly report such issues to the project approval authority. The approval authority shall, in accordance with applicable regulations, require the implementing entity to undertake corrective measures or suspend project construction.

Article 22

The project implementing entity shall carry out the project in strict accordance with the preliminary design scheme and investment estimate approved by the project approval authority. If the project’s objectives and scope remain unchanged and there is a surplus in the total investment, the surplus funds shall be returned in compliance with the relevant regulations.

Expenditures for project construction shall be managed in accordance with the relevant regulations on centralized treasury payments.

Article 23

If the project’s investment scale remains within the approved budget estimate, the construction objectives remain unchanged, and any necessary adjustments to the main construction components involve funding changes not exceeding 15% of the total estimated investment, and meet one of the following conditions, the project implementing entity may make such adjustments and shall file them with the project approval authority:

(1) Where, in accordance with the arrangements of the CPC Central Committee and the State Council, it is indeed necessary to modify the project’s scope or content;

(2) Where it is indeed necessary to refine and optimize the original project’s technical plan;

(3) Adjusting the relevant project components and timelines, within the framework of the approved project construction plan, in accordance with the business development needs of the government informationization project.

Those that do not fall under the aforementioned circumstances shall, in accordance with relevant state regulations, complete the corresponding formalities.

Article 24

In principle, project construction investment shall not be allocated prior to the approval of the preliminary design scheme and the investment estimate. For government information‑technology projects that, due to activities such as conducting needs assessments, preparing feasibility study reports and preliminary designs, acquiring land, or carrying out relocation, require advance allocation of funds, the project implementing entity may submit an application to the project approval authority after the feasibility study report has been approved.

Article 25

Within six months after the completion of a national e‑government information project, the project‑implementing entity shall, in accordance with relevant national regulations, apply to the approving authority for acceptance inspection. When submitting the acceptance application report, it shall concurrently attach the project construction summary, financial report, audit report, security risk assessment report (including, where applicable, the security and confidentiality assessment report for classified information systems or the network security level protection assessment report for non‑classified information systems), as well as the cryptographic application security assessment report and other pertinent materials.

If the project construction entity is unable to apply for acceptance on schedule, it shall submit a request for an extension of the acceptance deadline to the project approval authority.

The project approval authority shall promptly organize the acceptance inspection. Upon completion of the acceptance, the project implementing entity shall submit the acceptance report and other relevant documents to the project approval authority for record‑keeping.

Article 26

The project construction entity shall, in accordance with the State’s relevant regulations on archives management, ensure proper management of project archives and explore the use of electronic archives.

Projects shall not pass acceptance if the archives have not been inspected or if the archive inspection is deemed non‑compliant.

Article 27

The project implementing entity shall, within 12 to 24 months after the project has passed acceptance and been put into operation, conduct a self‑evaluation in accordance with the relevant requirements for performance evaluation of national e‑government information‑technology development, and submit the self‑evaluation report to both the project approval authority and the financial department. Based on the implementing entity’s self‑evaluation, the project approval authority may commission an appropriate third‑party consulting agency to carry out a post‑evaluation.

Article 28

Strengthen the coordinated linkage between investment in and operational‑maintenance funding for national e‑government information‑technology projects, adhering to the principle that interconnected, integrated services are the norm, with isolated networks being the exception. For existing departmental e‑government information‑technology projects that require upgrading or modernization, or for proposed new projects that can achieve information sharing as required, the National Development and Reform Commission, in coordination with relevant departments, shall conduct a review. If a department determines, in accordance with applicable laws and regulations and the directives of the CPC Central Committee and the State Council, that information sharing is not feasible but that construction or retention is nonetheless necessary, the National Development and Reform Commission shall submit the matter to the State Council; the General Office of the State Council, together with the relevant departments, will then carry out a review, and construction or retention may proceed only upon approval by the State Council.

(1) For government information systems that fail to share data resources as required or engage in redundant data collection, no operating and maintenance funds shall be allocated, and the project‑implementing entity shall be prohibited from initiating new, renovating, or expanding such systems.

(2) No operating and maintenance funds shall be allocated for systems that are not included in the National Catalogue of Government Information Systems.

(3) For government information systems that fail to meet cryptographic application and cybersecurity requirements, or that pose significant security risks, no funding shall be allocated for their operation and maintenance, and the project‑implementing entity shall refrain from initiating the construction, renovation, or expansion of such systems.

Chapter Four: Supervision and Administration

Article 29

The project construction entity shall accept the supervision and administration of the project approval authority and relevant departments, cooperate in performance evaluation, auditing, and other supervisory activities, and truthfully provide all pertinent documentation and information related to the project; it shall neither refuse nor conceal or underreport such information.

Article 30

The General Office of the State Council, the National Development and Reform Commission, the Ministry of Finance, and the Cyberspace Administration of China, in coordination with relevant departments and in accordance with their respective responsibilities, shall exercise oversight and management over whether national government‑information projects comply with the state’s requirements for government information sharing, as well as over such matters as tendering and procurement, use of funds, application of cryptographic technologies, and network security during project implementation. If violations of relevant state regulations or the requirements set forth in the project approval are discovered, the project‑implementing entity shall be required to make rectifications within a specified time limit. Should rectification not be carried out by the deadline, or if, after rectification, the project still fails to meet the required standards, the project‑approval authority may issue public criticism, defer the allocation of investment plans, suspend project construction, or even terminate the project.

Cybersecurity regulatory authorities shall, in accordance with the law, strengthen oversight of the security of national government information systems and guide and supervise project‑implementing entities in ensuring compliance with the requirements of the cybersecurity review regime.

All departments shall strictly comply with relevant laws and regulations on confidentiality and other matters, establish a comprehensive, multi‑layered, and consistent security framework, adopt cryptographic technologies as required, and conduct regular assessments of the security of cryptographic applications, thereby ensuring the operational security of government information systems and the data security of shared and exchanged government information.

Article 31

Audit authorities shall, in accordance with the law, strengthen auditing of national government information systems, ensure the truthful, lawful, and efficient use of special funds, and promote the improvement of relevant institutional frameworks and policies while overseeing their implementation.

Article 32

The project approval authorities and competent departments shall strengthen the application of performance evaluation and post‑project evaluation results. Based on these findings, they shall put forward corrective measures to address identified issues in national e‑government information projects, guide the refinement of relevant management systems, and, in accordance with project approval and management requirements, use the evaluation outcomes as a key basis for allocating government investment and operational‑maintenance funding in the following year.

Article 33

If an organization or individual fails to comply with the approval and filing procedures prescribed in these Measures, or if, due to poor management or fraudulent practices, serious cost overruns, substandard quality, losses and waste, safety accidents, or other incidents attributable to negligence occur, the relevant authorities shall issue a public reprimand and impose disciplinary sanctions, in accordance with the law, on the responsible supervisors and other persons bearing accountability.

If relevant departments, entities, or individuals violate state regulations by withholding or misappropriating funds allocated to government information‑technology projects, or by improperly allocating operating and maintenance expenses, the competent authorities shall investigate and impose penalties in accordance with the Regulations on Penalties and Disciplinary Measures for Financial Violations and other applicable provisions.

Chapter V Supplementary Provisions

Article 34

Relevant departments of the State Council may, in accordance with the provisions of these Measures and the division of responsibilities, formulate specific administrative measures for their respective departments.

The people’s governments of provinces, autonomous regions, and municipalities directly under the central government may, by reference to these Measures, formulate administrative measures applicable to their respective localities.

Article 35

This Measures shall be interpreted by the National Development and Reform Commission in conjunction with the Ministry of Finance.

Article 36 Collection

These Measures shall enter into force on February 1, 2020. The Interim Measures for the Administration of National E‑Government Engineering Construction Projects, promulgated by the National Development and Reform Commission on August 13, 2007, are hereby repealed.

Xi Jinping presided over the third meeting of the Central Commission for Comprehensively Promoting the Rule of Law.

On the afternoon of February 5, Xi Jinping, General Secretary of the CPC Central Committee, President of the People’s Republic of China, Chairman of the Central Military Commission, and Director of the Central Commission for Comprehensive Law-Based Governance, presided over the third meeting of the Central Commission for Comprehensive Law-Based Governance and delivered an important speech. He emphasized that, under the centralized and unified leadership of the CPC Central Committee, the safety and health of the people must always be given top priority; efforts must be made across all stages—legislation, law enforcement, judicial administration, and law observance—to comprehensively enhance the capacity for law-based prevention and control and law-based governance, thereby providing strong legal safeguards for epidemic prevention and control.

Li Keqiang, Li Zhanshu, and Wang Huning, members of the Standing Committee of the Political Bureau of the CPC Central Committee and vice directors of the Central Commission for Comprehensive Law-Based Governance, attended the meeting.

The meeting reviewed and approved the “Opinions of the Central Commission for Comprehensive Law-Based Governance on Law-Based Prevention and Control of the Novel Coronavirus Pneumonia Epidemic and on Effectively Safeguarding the Life, Health, and Safety of the People,” the “Opinions on Deepening the Comprehensive Supporting Reforms of the Judicial Accountability System,” the “Opinions on Strengthening the Development of Rule-of-Law Villages,” the “Plan for Reforming the Administrative Review System,” as well as reports on Shanghai’s efforts to foster a law-based business environment and on the progress of reforms to the integrated administrative law enforcement system.

In his address, Xi Jinping emphasized that epidemic prevention and control is currently at a critical juncture, and that conducting prevention and control in a lawful, scientific, and orderly manner is of paramount importance. As the fight against the epidemic enters its most challenging phase, it is all the more essential to adhere to law-based prevention and control, coordinate and advance all related measures within the framework of the rule of law, and ensure the smooth implementation of epidemic‑control efforts.

Sentenced for defrauding people of money by falsely claiming to sell masks in WeChat and QQ groups!

On February 7, 2020, the People’s Court of Gangzha District, Nantong City, Jiangsu Province, applied the summary procedure and conducted a public trial via remote video conferencing in accordance with the law for a case involving online fraud related to epidemic prevention supplies. The defendant, Zhang Zheng, was sentenced to one year and six months’ imprisonment for fraud and fined RMB 10,000. The trial was simultaneously broadcast live across multiple online media platforms, with over 60 media outlets and digital platforms participating throughout. The livestream lasted one hour and attracted a total of 14 million online viewers.

Upon trial, it was ascertained that, from January 28 to 30, 2020, during the period of prevention and control of the novel coronavirus pneumonia epidemic, the defendant Zhang Zheng, despite having neither a source of supply nor having actually procured any goods, exploited the victims’ urgent need to purchase masks by disseminating false information in WeChat and QQ groups claiming a large quantity of masks was available for sale, thereby defrauding three victims of a total deposit of RMB 9,520. Following the incident, the defendant Zhang Zheng’s family reimbursed the full amount of the illicit proceeds on his behalf.

The People’s Court of Gangzha District, Nantong City, held that the defendant, Zhang Zheng, with the intent of illegal possession, fabricated facts and used the internet to defraud others of property in a substantial amount, thereby constituting the crime of fraud. During the epidemic prevention and control period, Zhang engaged in fraudulent activities under the guise of selling goods intended for the prevention and control of the epidemic, and as a recidivist, he should be punished severely and more severely in accordance with the law. After surrendering, he truthfully confessed his crimes, voluntarily pleaded guilty and accepted punishment, and returned all the illicit proceeds; accordingly, the court rendered the aforementioned judgment in accordance with the law.

In response to epidemic prevention and control requirements, the court, in close consultation with the Public Security Bureau, the People’s Procuratorate, and the Legal Aid Center, decided to apply the summary criminal procedure for single-judge adjudication. Leveraging China Mobile’s Cloud Video Conferencing system, the court established a central courtroom, while the District Procuratorate, the detention center, and the Legal Aid Center set up satellite venues, connecting all four locations to conduct a “contactless” trial. The prosecutor, the defendant, and the defendant’s defense counsel participated in the proceedings via remote video conferencing.

Other

The No. 1 Central Document for 2020 has been released.

The 17th Central No. 1 Document guiding work related to agriculture, rural areas, and farmers since the beginning of the 21st century was officially released on the 5th, authorized by Xinhua News Agency.

This document, titled “Opinions of the CPC Central Committee and the State Council on Prioritizing Key Tasks in the ‘Three Rural Issues’ Sector to Ensure the Timely Achievement of a Moderately Prosperous Society in All Respects,” consists of five sections, including:

Resolutely win the battle against poverty; align with the goal of building a moderately prosperous society in all respects and accelerate efforts to address shortcomings in rural infrastructure and public services; ensure an adequate supply of key agricultural products and promote sustained increases in farmers’ incomes; strengthen grassroots governance in rural areas; and reinforce measures to safeguard progress in addressing rural development gaps.

The document states that 2020 is the year in which the goal of building a moderately prosperous society in all respects will be achieved, and also the final year for securing a decisive victory in the battle against poverty. The CPC Central Committee holds that, to accomplish these two major objectives, it is imperative to overcome the last formidable obstacles in the fight against poverty and to address the most pressing shortcomings in agriculture, rural areas, and farmers that have long hindered progress toward moderate prosperity.

The document stipulates that, in alignment with the goal of building a moderately prosperous society in all respects, we will strengthen measures and ensure rigorous implementation, concentrating our efforts on accomplishing two key tasks: securing a decisive victory in the battle against poverty and addressing the most pressing shortcomings in agriculture, rural areas, and farmers. We will continue to stabilize agricultural production and ensure adequate supplies, boost farmers’ incomes, promote high-quality agricultural development, maintain social harmony and stability in rural areas, and enhance the sense of gain, happiness, and security among rural residents. In this way, we will ensure the successful conclusion of the battle against poverty and the synchronized achievement of a moderately prosperous society in all respects in rural areas.

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