JC Master Legal News Issue 909

Key Takeaways for This Issue

The China Securities Regulatory Commission has issued six financial industry standards, including “Content and Format of Data Related to Investor Rights in the Securities and Futures Industry.”

To advance the informatization of the capital market, strengthen foundational standardization efforts, and elevate industry-wide standards, the China Securities Regulatory Commission issued six financial industry standards on February 28, which shall take effect from the date of their publication.

China Banking and Insurance Regulatory Commission: A temporary policy to defer principal and interest payments on loans for small, medium, and micro enterprises will be introduced in the near future.

The China Banking and Insurance Regulatory Commission recently convened a videoconference to brief on epidemic prevention and control efforts and financial support for economic and social development. The meeting noted that, in the near term, a policy will be introduced to temporarily extend the repayment deadlines for principal and interest on loans to small, medium, and micro enterprises, further alleviating the difficulties faced by businesses—particularly private and small and micro enterprises—and providing targeted financial services to support epidemic control, the resumption of work and production, and the development of the real economy.

The State Taxation Administration held a press conference to launch the 2020 “Spring Breeze Action for Convenient Tax Services,” introducing 24 measures.

On February 27, the State Taxation Administration held a press conference to provide an update on the 2020 “Spring Breeze Action for Convenient Tax Services” and to answer questions from reporters on how the tax authorities have coordinated efforts to contain the epidemic while supporting broader economic and social development.

The Supreme People’s Court and the Supreme People’s Procuratorate Address Legal Issues in Criminal Cases Involving Obstruction of Epidemic Prevention and Control Measures.

Since the outbreak of the COVID‑19 pandemic, people’s courts and people’s procuratorates at all levels have, in accordance with the law, handled a number of criminal cases involving obstruction of epidemic prevention and control. Recently, Jiang Qibo, Director of the Research Office of the Supreme People’s Court, and Gao Jingfeng, Director of the Legal and Policy Research Office of the Supreme People’s Procuratorate, addressed legal application issues that arose during case handling.

The Statistical Bulletin on National Economic and Social Development of the People’s Republic of China for 2019 has been released.

On the 28th, the National Bureau of Statistics released the 2019 Statistical Bulletin on National Economic and Social Development. Covering everything from economic size and structure to scientific and technological innovation, ecological progress, social programs, and people’s living standards, the bulletin paints a new picture of China’s economic and social development.

Table of Contents

Table of Contents

Finance & Capital Markets

The China Securities Regulatory Commission has issued six financial industry standards, including “Content and Format of Data Related to Investor Rights in the Securities and Futures Industry.”

Ministry of Finance: Strives to complete the drafting of the Value-Added Tax Law, the Consumption Tax Law, and other legislation within the year.

The National Development and Reform Commission has issued the “Notice on Matters Concerning the Implementation of a Registration System for Corporate Bond Issuance.”

The General Office of the State Council has issued the “Notice on Relevant Work for Implementing the Revised Securities Law.”

The Shenzhen Stock Exchange has revised its Guidelines on Standardized Operations to align with the new Securities Law and establish an efficient regulatory framework.

Corporate & Commercial

China Banking and Insurance Regulatory Commission: A temporary policy to defer principal and interest payments on loans for small, medium, and micro enterprises will be introduced in the near future.

State Post Bureau: In January, the volume of express deliveries reached 3.78 billion parcels, down 16.4% year on year.

Shenzhou Computer has filed a lawsuit against JD.com for failing to pay 300 million yuan in outstanding payments.

Has the registration of multiple new fresh‑food trademarks accelerated business expansion? Meituan responded: “We protect intellectual property.”

The fitness industry has seen offline closures give way to a surge in online live streaming.

Taxation

The State Taxation Administration held a press conference to launch the 2020 “Spring Breeze Action for Convenient Tax Services,” introducing 24 measures.

Three departments in Hubei Province have issued guidelines to exempt enterprises from three types of social insurance contributions for a period of five months.

The Ministry of Finance and the State Taxation Administration have jointly issued a document clarifying VAT policies to support the resumption of business operations by individual industrial and commercial households.

In 2020, the central government’s allocation ratio for the basic old-age insurance fund for enterprise employees was increased to 4%.

Tax big data helps ensure that business-friendly policies are effectively implemented.

Litigation & Arbitration

The Supreme People’s Court and the Supreme People’s Procuratorate Address Legal Issues in Criminal Cases Involving Obstruction of Epidemic Prevention and Control Measures.

A batch of new regulations—covering securities investment, internet governance, and mortgage interest rates—will take effect starting in March.

China has imposed a comprehensive ban on the illegal trade of wild animals and eliminated the harmful practice of consuming them.

Nanjing police have solved a murder case involving a female student that occurred 28 years ago.

The Ministry of Justice is soliciting public comments on the Regulations on the Administration of Permanent Residence for Foreigners.

Other

The Statistical Bulletin on National Economic and Social Development of the People’s Republic of China for 2019 has been released.

Finance & Capital Markets

The China Securities Regulatory Commission has issued six financial industry standards, including “Content and Format of Data Related to Investor Rights in the Securities and Futures Industry.”

On February 28, the China Securities Regulatory Commission issued six financial industry standards, including “Content and Format of Investor Rights‑Related Data in the Securities and Futures Industry – Part 1: Securities,” “Content and Format of Investor Rights‑Related Data in the Securities and Futures Industry – Part 2: Futures,” “Content and Format of Investor Rights‑Related Data in the Securities and Futures Industry – Part 3: Funds,” “Lightweight Real‑Time STEP Message Transmission Protocol,” “Elements of Futures Contracts,” and “Investor Identification Codes for the Securities and Futures Industry.” These standards shall take effect from the date of their publication.

From its inception, China’s capital market has adopted electronic trading. Equity‑related data, such as client funds and securities, futures, and fund account information, are stored in paperless electronic form. Relevant laws and regulations require all financial institutions to properly preserve information pertaining to investors’ rights and interests. At present, significant discrepancies exist among institutions in how they define and store such data, which undermines the effective protection of investor rights. The implementation of the series of standards titled “Content and Format of Investor‑Related Data in the Securities and Futures Industry” has standardized the content and format of investor‑related data across the securities, futures, and fund markets. These standards provide guidance for industry participants in conducting investor‑data governance, enhance market efficiency, and lay a solid foundation for advancing investor‑rights protection efforts.

As China’s domestic securities market continues to develop and the capital market further opens up to overseas investment institutions, the scope of application for the Securities Trading Data Exchange Protocol (STEP) standard has expanded across the industry. Built upon the international Financial Information eXchange (FIX) protocol, the STEP standard specifies sophisticated mechanisms for detecting message gaps and retransmitting them, which impose a high technical barrier to implementation. Therefore, it is necessary to tailor the standard in light of industry‑specific technical practices and evolving technological trends. The adoption of the “Lightweight Real‑Time STEP Messaging Protocol” as a financial industry standard, on the one hand, simplifies the protocol’s transmission mechanism, helping to reduce R&D costs and operational complexity while enhancing reliable data delivery and secure system operation. On the other hand, it preserves interoperability with international standards, aligns with the requirements of an increasingly globalized capital market, and effectively lowers the barriers to entry for international market participants operating in the domestic market.

The current Regulations on the Administration of Futures Trading and Measures for the Administration of Futures Exchanges have established the procedures and institutional framework for futures exchanges to design and organize the listing of futures contracts, but they have not yet provided explicit provisions regarding the constituent elements of such contracts. The “Standards for Futures Contract Elements,” while balancing practical business needs with the demands of innovation, summarizes the common characteristics and key components found in existing futures contracts, enumerates 17 frequently used contract elements, standardizes their definitions and formulations, and adopts uniform nomenclature, thereby providing a reference framework for the development of futures contracts.

As China’s multi-tiered capital markets continue to evolve, the securities, futures, and fund markets have each established their own investor account management systems. However, the types of valid identification documents, identification codes, and naming conventions used when opening accounts across these markets vary according to market-specific regulations, which hinders data exchange and investor information sharing among all market participants. The implementation of the “Investor Identification Code for the Securities and Futures Industry” standard will enhance transparency and regulatory oversight in the domestic capital markets, support cross‑market regulatory requirements, and facilitate seamless connectivity of investor information across spot and derivatives markets. This, in turn, will enable more tailored investment services for investors, promote information sharing among market participants, and further bolster the development of an efficient, comprehensive market‑wide regulatory framework.

Ministry of Finance: Strives to complete the drafting of the Value-Added Tax Law, the Consumption Tax Law, and other legislation within the year.

On the 26th, the Ministry of Finance’s website released its legislative work plan for the full year 2020. The ministry aims to complete, within the year, the drafting of the Value-Added Tax Law, the Consumption Tax Law, the Customs Tariff Law, the Government Procurement Law (revision), the Implementing Regulations of the Government Procurement Law (revision), and the Regulations on the Administration of State‑Owned Financial Capital, and to submit these drafts to the State Council in a timely manner.

Strive to complete, within the year, the revision of such regulatory instruments as the Measures for the Administration of Fiscal Receipts, the Measures for the Administration of Government Procurement Framework Agreements, the Measures for the Administration of Non‑Tender Procurement Methods in Government Procurement (revised), the Measures for the Administration of Bidding and Tendering for Goods and Services in Government Procurement (revised), and the Financial Rules for Financial Enterprises (revised). Actively advance the revision of the Accounting Law, the Certified Public Accountant Law, the Measures for the Administration of State‑Owned Asset Appraisals, and the Regulations on Penalties and Disciplinary Actions for Fiscal Violations, and submit these revisions to the State Council in a timely manner. In addition, undertake the revision of the Interim Measures for the Investment Management of the National Social Security Fund and the Measures for the Administration of the Road Traffic Accident Social Assistance Fund, and promulgate and implement them at an appropriate time.

Conduct legislative research in areas such as the management of state-owned assets, the administration of government non-tax revenues, fiscal transfer payments, and budget performance management.

An official from the Department of Laws and Regulations of the Ministry of Finance pointed out that 2020 marks both the year in which China will have fully built a moderately prosperous society and the concluding year of the 13th Five-Year Plan. The Ministry of Finance will, with the goal of advancing the modernization of the national governance system and governance capacity, ensure that fiscal legislation proactively adapts to the needs of economic and social development and fiscal reform, uphold scientific, democratic, and law-based legislation, and further promote law-based administration and financial management, thereby providing robust legal safeguards for accelerating the establishment of a modern fiscal system.

The National Development and Reform Commission has issued the “Notice on Matters Concerning the Implementation of a Registration System for Corporate Bond Issuance.”

On March 1, the National Development and Reform Commission (NDRC) issued the “Notice on Matters Concerning the Implementation of a Registration System for Corporate Bond Issuance” (hereinafter referred to as the “Notice”). The Notice stipulates that a registration system will be fully implemented for corporate bond issuance. In accordance with the Securities Law of the People’s Republic of China and the requirements set forth in the Notice, the approval-based regime for corporate bond issuance has been replaced by a registration-based regime. The NDRC serves as the statutory registration authority for corporate bonds, and any issuance of corporate bonds must be registered with the NDRC in compliance with the law. The NDRC has designated relevant institutions to handle the acceptance and review of corporate bond applications. Specifically, Central Government Bond Registration and Settlement Co., Ltd. is the accepting agency, while Central Government Bond Registration and Settlement Co., Ltd. and the National Association of Financial Market Institutional Investors serve as the reviewing agencies. These two institutions are required to promptly formulate supporting systems, including relevant business procedures and acceptance‑review standards, and to complete the acceptance and review processes within the prescribed time limits. Corporate bond issuers shall submit their applications directly to the accepting agency. The NDRC will oversee and provide guidance on the acceptance and review of corporate bond applications, as well as on the work of the two designated agencies, and will carry out the issuance registration procedures within the statutory time frame.

The Notice clarifies that corporate bond issuers shall have a sound and well-functioning organizational structure, with average distributable profits over the most recent three years sufficient to cover one year’s interest on the bonds. They must also maintain a reasonable debt-to-asset ratio and normal cash flow. Furthermore, it encourages the use of proceeds from corporate bond offerings to finance projects that align with national macroeconomic regulation policies and industrial policies.

The Notice states that a regulatory framework centered on information disclosure should be established under the registration-based system, with issuers clearly designated as the primary entities responsible for such disclosure. Issuers shall adhere to the principles of truthfulness, accuracy, completeness, timeliness, and fairness, disclose information through designated channels in accordance with applicable laws, regulations, and relevant provisions of the National Development and Reform Commission, and assume corresponding legal liabilities. Underwriting institutions, credit rating agencies, accounting offices, law offices, asset appraisal agencies, and other intermediary institutions are required to exercise due diligence, act with integrity, and maintain professional standards. These intermediaries must conduct thorough due diligence on bond issuers, assist in preparing and disseminating disclosure materials, and take responsibility for the professional reports and opinions they issue. The reviewing and accepting authorities may conduct oversight and inspections of both the content and format of information disclosures.

The Notice clarifies that, in line with the requirements of the registration‑based reform, the provincial-level forwarding procedure in the corporate bond filing process will be abolished. For bonds whose proceeds are earmarked for fixed‑asset investment projects, the provincial development and reform authorities shall issue a special opinion conofficeing compliance with national macro‑regulation policies, regulations on fixed‑asset investment management, and industrial policies, and shall assume the corresponding responsibilities. Provincial development and reform authorities are expected to leverage their local‑management advantages, conducting project screening, risk assessments, and oversight inspections to strengthen the supervision of corporate bonds within their jurisdictions and to prevent and defuse risks in the corporate bond sector.

The Notice states that the National Development and Reform Commission will work closely with the China Securities Regulatory Commission and other relevant authorities to fully implement the requirements of the Securities Law of the People’s Republic of China and this Notice, and to coordinate and advance all aspects of the registration‑based system in an orderly manner. The NDRC will actively support the CSRC in carrying out unified enforcement in the bond market and, in accordance with the law, impose strict penalties on illegal and non‑compliant conduct in the corporate bond sector. With respect to corporate bond projects that were accepted prior to the entry into force of the revised Securities Law of the People’s Republic of China, the NDRC will continue to process them in line with the original approval‑based requirements. Furthermore, the NDRC will continuously refine its regulatory framework, formulate supporting documents such as registration‑document formats and lists of required submission materials, and establish an open, transparent, and efficient registration‑management system for corporate bond issuance.

The General Office of the State Council has issued the “Notice on Relevant Work for Implementing the Revised Securities Law.”

On February 29, the General Office of the State Council issued the “Notice on Relevant Work for Implementing the Revised Securities Law” (hereinafter referred to as the “Notice”), outlining measures to ensure the effective implementation of the revised Securities Law of the People’s Republic of China (hereinafter referred to as the Securities Law).

The Notice points out that this revision of the Securities Law provides robust legal safeguards for building a capital market that is standardized, transparent, open, dynamic, and resilient. It is of great significance for deepening supply-side structural reform in the financial sector, improving a modern financial system that is highly adaptive, competitive, and inclusive, and safeguarding national economic and financial security. All regions and relevant departments are urged to intensify study and publicity efforts, conduct training tailored to different categories and levels, and continuously enhance the capacity of securities administration and law enforcement personnel to administer, regulate, and govern the market in accordance with the law.

The Notice states that the registration-based system for public securities offerings should be steadily advanced. First, the reform to introduce a registration-based system for stock public offerings will be implemented in stages. The China Securities Regulatory Commission (CSRC), in coordination with relevant authorities, will further refine the institutional rules governing the STAR Market, enhance the transparency of registration and review processes, and streamline working procedures. It will also develop an overall plan to pilot the registration-based system for stock public offerings on the ChiNext Board of the Shenzhen Stock Exchange, while actively creating the necessary conditions to, at an appropriate time, propose a scheme to extend this system to other boards of the stock exchanges and to other nationwide securities trading venues approved by the State Council; such proposals will be implemented upon approval by the State Council. Prior to the adoption of the registration-based system for stock public offerings on the relevant boards of the stock exchanges and other nationwide securities trading venues approved by the State Council, the existing approval-based system will remain in place. Second, the requirements of the registration-based system for public corporate bond offerings must be fully implemented. In accordance with the provisions of the revised Securities Law, the public issuance of corporate bonds shall, in compliance with the law, be subject to registration with either the CSRC or the National Development and Reform Commission. Third, the registration procedures for public securities offerings shall be improved.

The Notice clearly states that securities‑related illegal and criminal activities must be punished in accordance with the law. Efforts to investigate and prosecute serious violations that disrupt market order—such as fraudulent issuance, unlawful disclosure of information, failure by intermediary institutions to exercise due diligence, as well as market manipulation, insider trading, and trading based on non‑public information—will be intensified. Coordination between administrative enforcement and criminal justice will be strengthened, with enhanced information sharing and prompt reporting of leads, thereby improving the efficiency of case referrals and investigations. Public security organs are required to step up their crackdown on securities‑related offenses and crimes to establish effective deterrence. Furthermore, the lawful protection of investors’ legitimate rights and interests must be reinforced. Robust and effective measures shall be adopted to safeguard, in accordance with the law, the legitimate rights and interests of investors, particularly small and medium‑sized investors, and the system allowing investor protection agencies to bring civil securities‑related compensation lawsuits on behalf of investors should be steadily advanced.

The Notice emphasizes the need to expedite the review and improvement of relevant rules and regulations. The China Securities Regulatory Commission, the Ministry of Justice, and other departments are to conduct a special review of administrative regulations related to the Securities Law and promptly submit proposals for amendment. Relevant authorities should, in light of the new requirements introduced by the revised Securities Law, promptly undertake a comprehensive review of pertinent rules and regulations, carry out the necessary work of enacting, amending, abolishing, and interpreting provisions, and ensure seamless policy coordination.

The Shenzhen Stock Exchange has revised its Guidelines on Standardized Operations to align with the new Securities Law and establish an efficient regulatory framework.

To ensure seamless institutional alignment and regulatory adaptation in the full implementation of the new Securities Law, further optimize and refine the regulatory framework for listed companies, and solidify the institutional foundation for enhancing the quality of listed offices, the Shenzhen Stock Exchange recently revised and issued the “Guidelines on Standardized Operations of Listed Companies” (hereinafter referred to as the “Guidelines”), which will take effect on March 1.

The new Securities Law will officially come into effect on March 1, 2020, marking the entry of China’s securities market into a new historical phase. The law provides a legal framework to support the high-quality development of listed companies and sets forth new tasks and requirements for their standardized operations. In this revision, the Shenzhen Stock Exchange has merged the original two separate guidelines on standardized operations—the Main Board and the SME Board—into a single document, which now applies equally to both Main Board and SME Board listed companies. Meanwhile, the revision of the ChiNext Board’s guideline on standardized operations maintains distinct provisions, advancing in tandem with the ChiNext reform.

On this basis, the revision process adheres to a reform agenda guided by market principles and the rule of law, with a steadfast focus on information disclosure. Drawing on the provisions of higher-level laws and the practical effectiveness of existing regulatory frameworks, it distills new lessons learned, addresses emerging challenges, and introduces refinements and enhancements in four key areas:

First, we have ensured seamless alignment in the development of supporting regulations for the new Securities Law. The Shenzhen Stock Exchange has refined provisions in seven key areas—short‑term trading disclosure, information disclosure channels, circumstances triggering interim reports, voluntary information disclosure, the scope of persons privy to inside information, public solicitation of shareholder rights, and disclosure of changes in equity interests—and issued announcements specifying detailed disclosure requirements, such as for every 1% change in a major shareholder’s holdings. The Exchange has emphasized that all information necessary for investors to form value judgments and make investment decisions must be fully disclosed, thereby ensuring orderly coordination with and effective implementation of the relevant requirements under the new Securities Law.

Second, we are “reducing burdens and streamlining operations” to help listed companies operate with greater agility. On the one hand, by “stripping away complexity and simplifying procedures,” we have optimized regulatory requirements, granting market participants greater flexibility in areas such as the use of proceeds during fundraising for working capital and corporate governance on the SME Board. On the other hand, by consolidating and integrating the provisions of more than 20 business rules, guidelines, and memoranda, we have created a user-friendly “regulatory compendium” that is easy to consult and straightforward to comply with, thereby enhancing the quality of our regulatory services.

Third, we will implement “precision‑based regulation,” focusing closely on key areas and the “key few.” We will strengthen oversight of high‑risk domains such as external guarantees, the fulfillment of performance commitments, and goodwill impairment. We will also tighten disclosure requirements for situations where controlling shareholders or actual controllers become unreachable, are under investigation, face coercive measures, or incur significant penalties, while reinforcing independence standards for their related parties, thereby enhancing the effectiveness of frontline regulatory efforts.

Fourth, “keeping pace with the times” by aligning with new market conditions and emerging demands. Building on pilot initiatives in the real estate and energy‑saving and environmental protection sectors, the “guarantee‑limit” framework has been rolled out nationwide, allowing listed companies to estimate aggregate guarantee limits when extending guarantees to their controlled subsidiaries or joint‑venture and associate companies. In addition, the requirement for the board of directors and the supervisory board to conduct eligibility reviews of candidates for director, supervisor, and senior management positions has been abolished, while commitment‑based constraints and public oversight have been strengthened, thereby enhancing the regulatory framework’s adaptability to market developments and policy shifts.

In the preliminary stage, adhering to the principles of “open and democratic rulemaking,” the Shenzhen Stock Exchange solicited opinions from all main‑board and SME‑board listed companies on the revision of the Guidelines, receiving a total of 28 responses. Overall, stakeholders endorsed the fundamental rationale and key provisions of the revision and put forward several suggestions for refinement and improvement. Following careful deliberation, this round of revisions has incorporated 14 of these recommendations that were deemed reasonable and feasible.

The Shenzhen Stock Exchange stated that it will continue to ensure the thorough and meticulous implementation of all measures for enforcing the new Securities Law, diligently conduct training and outreach on the new laws and regulations, accelerate the development of a streamlined and efficient regulatory framework for listed companies, improve the capital market’s foundational institutional framework, further enhance market transparency and efficiency, and foster a sound legal environment to support the comprehensive deepening of reforms in the capital market and promote the high-quality development of listed companies.

Commercial & Corporate

China Banking and Insurance Regulatory Commission: A temporary policy to defer principal and interest payments on loans for small, medium, and micro enterprises will be introduced in the near future.

According to information released on the website of the China Banking and Insurance Regulatory Commission, the Commission recently convened a video‑conference briefing on epidemic prevention and control efforts and financial support for economic and social development. The meeting noted that, in the near term, a policy will be introduced to temporarily defer principal and interest payments on loans to small, medium, and micro enterprises, further alleviating the difficulties faced by businesses—particularly private and small‑and‑micro enterprises—and providing targeted financial services to support epidemic control, the resumption of work and production, and the development of the real economy.

The meeting noted that, in order to win the tough battle against the epidemic, the China Banking and Insurance Regulatory Commission has guided banking and insurance institutions to take proactive measures and earnestly carry out both epidemic prevention and control efforts and financial support for economic and social development.

In response to the needs of epidemic prevention and control, since January 26, the China Banking and Insurance Regulatory Commission has, either independently or in coordination with relevant ministries and commissions, issued eight documents aimed at providing financial services to support pandemic response. These measures have urged banking and insurance institutions to establish green channels for financial services, ensure an adequate supply of credit resources, and maintain the stable functioning of financial markets. Banks are prohibited from arbitrarily recalling loans, cutting off credit, or imposing undue restrictions on sectors severely affected by the pandemic, including wholesale and retail, accommodation and catering, logistics and transportation, and culture and tourism. Support is being actively extended to small and micro enterprises and individual business households that demonstrate growth potential but are temporarily facing difficulties. For individuals who have temporarily lost their sources of income due to the pandemic, flexible adjustments have been made to repayment schedules for housing mortgages, credit cards, and other personal loans. Insurance institutions have also been guided to further enhance claims-handling services, innovate products, and strengthen consumer protection efforts in the context of epidemic prevention and control.

Various banking and insurance regulatory bureaus have introduced a range of financial support measures to combat the epidemic, facilitating financing matchmaking, addressing urgent needs, and providing all‑round assistance to help enterprises resume work and production in an orderly manner. Industry associations have encouraged member institutions to make donations of funds and materials, expand financial support, and reduce or waive relevant fees. Banking and insurance institutions have implemented multiple measures—streamlining application procedures, establishing green channels, expanding online services, lowering loan interest rates, and flexibly adjusting repayment schedules—to ensure robust financial service support.

According to industry association statistics, as of now, banking and insurance institutions, along with industry associations, have collectively donated 2.5 billion yuan. Banking financial institutions have provided credit support exceeding 1 trillion yuan to combat the epidemic, while insurance companies have pledged risk coverage totaling 15.7 trillion yuan.

The meeting emphasized that epidemic prevention and control has entered a critical phase, and that supporting the recovery and development of the real economy must be given even greater priority. It called for rigorous implementation of the support policies already introduced, continued guidance to banking and insurance institutions to step up their assistance, and proactive coordination to meet enterprises’ legitimate funding needs, thereby providing targeted financial services to underpin epidemic response, resumption of work and production, and the growth of the real economy—while officely safeguarding against systemic risks. The China Banking and Insurance Regulatory Commission stated that, in the near term, it will also introduce a policy to temporarily defer principal and interest payments on loans to small, medium, and micro enterprises, further alleviating the difficulties faced by businesses—particularly private and small and micro enterprises—and delivering precise financial support for epidemic control, resuming work and production, and fostering the development of the real economy.

State Post Bureau: In January, the volume of express deliveries reached 3.78 billion parcels, down 16.4% year on year.

On February 27, according to information posted on the official WeChat account of the Development Research Center of the State Post Bureau, the bureau released data on the performance of the postal industry for January 2020. In that month, express delivery companies nationwide handled a total of 3.78 billion parcels, down 16.4% year on year; revenue from these services reached RMB 50.05 billion, a decrease of 16.1% compared with the same period last year. The specific figures are as follows.

Affected by both the Spring Festival holiday and the COVID‑19 pandemic, the postal industry’s year-on-year growth rate declined in January this year. In January, the postal industry’s business revenue (excluding direct operating income of the Postal Savings Bank) totaled RMB 74.75 billion, down 12.4% year on year; total business volume reached RMB 108.16 billion, a decrease of 8.6% compared with the same period last year.

In January, the total volume of postal services reached RMB 22.95 billion, up 1.7% year on year; the volume of postal delivery services totaled 2.12 billion items, down 4.7% year on year; and revenue from postal delivery services amounted to RMB 3.88 billion, a decrease of 12% compared with the same period last year.

In January, nationwide express delivery companies handled 3.78 billion parcels, down 16.4% year on year; total revenue reached RMB 50.05 billion, a decrease of 16.1% compared with the same period last year. Specifically, intra-city deliveries totaled 670 million parcels, down 27.1% year on year; inter-city deliveries amounted to 3.0 billion parcels, down 14.4% year on year; and international/Hong Kong, Macao, and Taiwan deliveries reached 110 million parcels, up 12.3% year on year.

In January, same-city, intercity, and international/Hong Kong, Macao, and Taiwan express delivery volumes accounted for 17.6%, 79.5%, and 2.9% of the total, respectively; their corresponding revenues represented 9.9%, 49.8%, and 11.1% of total express delivery revenue, respectively. Compared with the same period last year, the share of same-city express delivery decreased by 2.7 percentage points, while the shares of intercity and international/Hong Kong, Macao, and Taiwan express delivery increased by 1.9 and 0.8 percentage points, respectively.

Shenzhou Computer has filed a lawsuit against JD.com for failing to pay 300 million yuan in outstanding payments.

On February 20, Shenzhen Shenzhou Computer Co., Ltd. (hereinafter referred to as “Shenzhou Computer” or “Shenzhou”) announced on its official Weibo account that it had “formally filed a lawsuit against JD.com.”

According to a statement released by Shenzhou Computer, the company filed a lawsuit with the Beijing No. 2 Intermediate People’s Court on February 18, 2020, seeking payment from Beijing Jingdong Century Trading Co., Ltd. for outstanding debts, with the amount in dispute totaling RMB 338.3 million.

Subsequently, Wu Haijun, Chairman of the Shenzhou Computer Group, also retweeted the post, stating, “Paying one’s debts is only natural.”

In response, JD.com stated that, due to Shenzhou’s violation of the terms of the product purchase and sales agreement signed by both parties, payment for unsettled goods has been temporarily withheld. Since February 10, JD.com and Shenzhou have been in ongoing discussions to address the outstanding issues. Both parties are urged to resolve their differences in a reasonable and lawful manner, while upholding the spirit of contract.

According to Qixinbao, Beijing Jingdong Century Trading Co., Ltd. was established on April 20, 2007, with Liu Qiangdong as its legal representative and a registered capital of RMB 1.398 billion. Shenzhou Computer was founded on January 15, 2001, with Wu Haijun as its legal representative and a registered capital of RMB 738 million.

Shenzhou Computers maintains a self-operated partnership with JD.com, and consumers can find Shenzhou’s official flagship store on the JD platform. This means that Shenzhou will supply its products to JD.com, which will then handle sales; accordingly, the two parties should have agreed upon relevant payment terms and settlement cycles.

In addition, Hasee is a key vendor in JD.com’s computer and digital category. During the 2019 “618” shopping festival, JD.com released a “618 Computer and Digital Rankings,” in which Hasee took first place on the overall laptop leaderboard, with HP, Lenovo, Dell, and other brands trailing behind.

Prior to publicly filing a lawsuit against JD.com on February 20, Shenzhou Computer ran promotional sales on Suning and Tmall on February 17 and February 18, respectively.

Has the registration of multiple new fresh‑food trademarks accelerated business expansion? Meituan responded: “We protect intellectual property.”

Under the shadow of the pandemic, “staying at home” has become the defining keyword of nationwide lockdowns over the past month. Meanwhile, during this extraordinary period of fighting the epidemic, instant‑delivery platforms and fresh‑produce retailers—responsible for daily vegetable supplies—have experienced a new surge in popularity.

Against this backdrop, Meituan’s recent series of trademark‑registration filings related to fresh produce has drawn considerable attention.

On February 17, according to data from Qixinbao, Meituan’s operating entity, Beijing Sankuai Technology Co., Ltd., filed multiple new trademark applications on January 17 and January 19. These include trademarks such as “Meituan Takeout—Grocery Shopping Is Fast Too,” “Cai Daquan,” and “Meituan Takeout Qing Shan Initiative.” Currently, several of these trademark series are still pending substantive examination. Meanwhile, additional applications are underway for marks like “Meituan Takeout—Flower Delivery Is Fast Too” and “Meituan Takeout—Pharmacy Purchases Are Fast Too.”

In response, Meituan conofficeed that this is part of its routine trademark‑registration process and characterized the filings as a measure to safeguard its intellectual property. However, the company did not address any direct link between these registrations and the expansion of its fresh‑food business.

Notably, while its core business continues to grow robustly, Meituan has consistently prioritized fresh‑food e‑commerce within its new‑business strategy. Within one year of launching Meituan Maicai, the service has already expanded to four cities: Beijing, Shanghai, Wuhan, and Shenzhen.

In late August 2019, Meituan quietly launched a pilot program for its new grocery‑delivery service, “Cai Daquan,” offering home delivery of vegetables. During the 2020 Spring Festival, publicly released data showed that Beijing’s daily order volume had surged to two to three times its pre‑holiday level, with “contactless delivery” becoming Meituan’s rallying cry. Meanwhile, amid the pandemic, a quiet battle to ensure the stable supply of fresh produce unfolded—driving a sharp spike in demand not only for Meituan’s fresh‑food business but also for platforms such as Hema Fresh, Daily Fresh, and JD Daojia.

According to the “2020 China Mobile Internet ‘Fighting the Epidemic’ Special Report” released on February 12 by third-party data office QuestMobile, from January 24 to February 2, the daily active user growth rates of Hema, Dingdong Maicai, and Daily Fresh all exceeded 100%, while Dmall and JD Daojia also posted double-digit increases in daily active users.

Notably, Meituan’s fresh‑food business is absent from the top five rankings of third‑party publicly available data. The rapid surge in daily active users across other platforms may also accelerate Meituan’s expansion into the fresh‑food sector.

On February 17, the Wuhan Municipal Bureau of Commerce unveiled its latest guide to online grocery shopping, featuring 23 fresh‑food delivery platforms—including Shixianghui, Meituan Maicai, and Hema Fresh—among those recommended. By all accounts, online grocery shopping may well become a new everyday habit during this extraordinary period. Meanwhile, the successive introduction of contactless delivery and contactless pickup shelves has provided residents staying at home with both peace of mind and added convenience.

The fitness industry has seen offline closures give way to a surge in online live streaming.

Amid the pandemic, traditional industries have increasingly shifted to online live streaming. Compared with sectors like real estate and automobiles, online fitness is already well familiar to many fitness enthusiasts. However, as brick-and-mortar gyms have shuttered, online platforms are leveraging live streams and other tactics to further monetize their user traffic, potentially ushering in a new wave of rapid growth.

Li Ruoming, the PR director, told reporters that they have also engaged with many offline professionals who have been severely impacted by the pandemic. Everyone agrees that the opportunities presented by the online space will accelerate transformation in the industry—though it’s not a wholesale reshuffling, but rather a process of integration.

Affected by the pandemic, nearly all brick-and-mortar gyms have been shut down. Fitness platforms such as Keep, Super Orangutan, and Qingniao Sports have recently announced continued closures, with no concrete timeline for reopening. At the same time, these platforms have rolled out online live‑streamed classes. With people unable to leave their homes, live‑streamed fitness has quickly become extremely popular.

According to reports, Keep has partnered with livestreaming influencer Li Jiaqi, inviting him to record a customized “voice‑upbeat pack” and launching his “devilish core‑slimming workout plan.” Additionally, 15,000 yoga mats were delivered to Li Jiaqi’s livestream, selling out in just over 30 seconds.

Data shows that Keep, in collaboration with more than ten brands including Daily Yoga and Lululemon, launched a cross-platform live‑streaming fitness campaign called “Live Now,” which has attracted over 56 million participants, with daily engagement rising by an average of 145%. As of February 16, LeKe’s 11‑day livestreams amassed 2.31 million views across all platforms, with users sharing videos of themselves working out in their living rooms, turning their homes into makeshift gyms. Meanwhile, Super Orangutan’s “Super Orang at Home” account on the Yizhibo platform drew millions of concurrent viewers at its peak.

Zhang Kang, founder of TT Live, stated that by offering live‑streamed fitness sessions, TT Live achieved a daily compound user growth rate of 20% within 15 days. By the end of the first quarter, the total number of users is expected to be 10 to 20 times its previous level.

Leading companies such as Keep, LeKe, and Super Orangutan are all accelerating their expansion into the online space.

Following this pandemic, users have further developed the habit of working out online, and online fitness is poised for a new wave of rapid growth. According to a report released by Zhiyan Consulting, the number of online fitness subscribers surged from 10.4 million in 2014 to 126 million in 2018.

Taxation TAXATATION

The State Taxation Administration held a press conference to launch the 2020 “Spring Breeze Action for Convenient Tax Services,” introducing 24 measures.

To thoroughly implement the spirit of General Secretary Xi Jinping’s important speech at the meeting on coordinating COVID‑19 prevention and control with economic and social development, and to further carry out the decisions and arrangements of the CPC Central Committee and the State Council, the State Taxation Administration has decided to launch the 2020 “Spring Breeze Action for Convenient Tax Services,” under the theme “Fighting the Epidemic and Promoting Development to Support All‑Round Moderately Prosperous Society,” across the national tax system.

This year marks the seventh consecutive year that the tax authorities have launched the “Spring Breeze Action” to facilitate tax services. Compared with previous years, this year’s initiative focuses on implementing and refining the spirit of General Secretary Xi Jinping’s important speeches and the decisions and arrangements of the CPC Central Committee and the State Council. It introduces 24 measures across such areas as supporting epidemic prevention and control, helping enterprises overcome difficulties, promoting the resumption of work and production, serving national development strategies, and optimizing the tax-related business environment. These measures fully embody three key principles of integration: combining support for epidemic response with the promotion of enterprise development; aligning enhanced tax‑administration convenience with an improved business climate; and linking responses to public concerns with service to the broader national agenda. Overall, they reflect a balanced approach that addresses both immediate needs and long-term goals, while emphasizing integration and innovation.

— With a focus on convenience and public benefit, we have vigorously accelerated and enhanced the efficiency of tax administration. We have extensively promoted “non-contact” tax filing and payment services, further expanded the scope of online tax‑related transactions, and leveraged the electronic tax bureau to enable taxpayers to complete more than 90% of their major tax‑related services online. The proportion of invoices obtained through non‑contact methods has increased from 50% in 2019 to 70% in 2020. In addition, we have actively worked to broaden the coverage of paperless export‑tax‑rebate declarations, reducing the average processing time for normal export‑tax‑rebate cases nationwide by an additional 20% beyond the 2019 benchmark of 10 working days.

— Focusing on key bottlenecks and sticking points, we will vigorously advance institutional reforms and innovations. By year’s end, we aim to achieve substantive progress in the electronic transformation of special VAT invoices; building on pilot programs, we will issue tax‑UKEYs free of charge to newly registered taxpayers and gradually address the issue of third‑party fees for tax‑control invoice devices. We will streamline and optimize tax and fee filing procedures, and explore the integration of property‑related tax filings. In addition, we will revise the “Notice on Taxpayers’ Rights and Obligations” to strengthen institutional safeguards for better protecting the legitimate rights and interests of taxpayers and payers.

— Focusing on supporting development, we have vigorously advanced targeted assistance to enterprises. We have earnestly implemented the three newly introduced batches of tax and fee preferential policies to bolster efforts to combat the pandemic and promote business growth, helping enterprises navigate difficulties and achieve stronger development. We have also deepened “bank‑tax collaboration” to address the financing challenges faced by small and micro‑enterprises, further expanding the scope of participating entities to include M‑rated offices in addition to those rated A and B for tax compliance, thereby enabling businesses to grow larger and more robust.

Three departments in Hubei Province have issued guidelines to exempt enterprises from three types of social insurance contributions for a period of five months.

On February 28, according to the website of the Hubei Provincial Department of Human Resources and Social Security, the department, together with the Hubei Provincial Department of Finance and the Hubei Provincial Tax Service Bureau of the State Taxation Administration, issued an implementation guideline on the same day. The guideline stipulates that, for all types of employers participating in the basic old-age insurance, unemployment insurance, and work-related injury insurance for enterprise employees, employer contributions to these three social insurance schemes will be temporarily exempted.

The implementation guidelines specify that the exemption applies to all types of employers participating in the enterprise employee basic pension insurance, unemployment insurance, and work-related injury insurance; however, it does not extend to government agencies and public institutions that have registered as legal entities with the institutional establishment management authorities. The exemption period is from February to June 2020, lasting a total of five months. During this period, the individual contributions to the enterprise employee basic pension insurance and unemployment insurance will continue to be paid by insured employees, with the employer withholding and remitting these amounts on their behalf, thereby safeguarding employees’ legitimate rights and interests.

The Implementation Opinions stipulate that, during the epidemic prevention and control period, participating employers may handle declaration, determination, and payment procedures online. Alternatively, they may defer these formalities and complete them within three months after the local epidemic has ended. No late‑payment penalties will be imposed during this period. For participating employers facing severe operational difficulties due to the epidemic, applications may be submitted to suspend payment of the individual portion of social insurance contributions for the exempted period; alternatively, starting in July, they may apply to defer payment of both employer‑ and employee‑shared social insurance contributions, with no late‑payment penalties applicable during the deferral period. The deferral period shall, in principle, not exceed six months. Participating units that were previously included in Hubei Province’s pilot program for pension insurance for government agencies and public institutions—those required to transition to the enterprise employee pension insurance system but have yet to do so—shall, by analogy, be entitled to the three‑fold policy of exemption, deferral, and suspension of social insurance contributions set forth in these Opinions.

The Implementation Opinions stipulate that social security administration agencies at all levels are responsible for identifying entities eligible for exemption from social insurance contributions and transmitting the relevant information to the tax authorities via the social insurance contribution information-sharing platform. They shall not require any additional applications or supporting documents, so as to avoid imposing undue administrative burdens on participating employers. For employers whose February social insurance contributions have already been assessed, a re-assessment shall be conducted in accordance with the regulations; for those who have already paid their February contributions, their preferences shall be respected, and refunds shall be processed as prescribed or the amounts shall be offset against future payable contributions. With respect to employee‑individual contributions withheld and remitted by participating employers, appropriate records of individual entitlements must be maintained.

The Implementation Opinions require that all localities strengthen monitoring of social insurance fund operations, fully take into account the realistic possibility that pandemic‑related disruptions may lead to a substantial decline in social insurance premium collection revenues, and conduct thorough analysis and assessments. Should difficulties arise in fund disbursements within a pooled area, timely reports must be submitted to the local Party committees and governments to ensure that all social insurance benefits are paid on time and in full. Localities are to implement these measures strictly within the scope and timeframes specified herein, standardize and reinforce fund management, and refrain from independently introducing any additional policies that reduce revenue or increase expenditures. At the same time, in light of exemption measures, the 2020 fund revenue budget should be adjusted appropriately and in a timely manner.

The Ministry of Finance and the State Taxation Administration have jointly issued a document clarifying VAT policies to support the resumption of business operations by individual industrial and commercial households.

The Ministry of Finance and the State Taxation Administration recently jointly issued the “Announcement on VAT Policies to Support the Resumption of Business Operations by Individual Industrial and Commercial Households” (hereinafter referred to as the “Announcement”). The Announcement states that, from March 1 to May 31, 2020, for small-scale VAT taxpayers in Hubei Province, taxable sales revenue subject to a 3% tax rate will be exempt from VAT, and the prepayment of VAT on projects subject to a 3% withholding rate will be temporarily suspended.

With the exception of Hubei Province, small-scale VAT taxpayers in other provinces, autonomous regions, and municipalities directly under the central government shall have their taxable sales revenue subject to a VAT rate of 1%, down from the standard rate of 3%; likewise, for VAT prepayment items currently subject to a 3% withholding rate, the prepayment shall be made at a reduced rate of 1%.

In 2020, the central government’s allocation ratio for the basic old-age insurance fund for enterprise employees was increased to 4%.

Recently, the Ministry of Human Resources and Social Security, the Ministry of Finance, and the State Taxation Administration jointly issued the “Notice on Phased Reductions and Exemptions of Enterprise Social Insurance Contributions,” specifying that, for a limited period, employers will be exempted from paying their share of contributions to basic old-age insurance, unemployment insurance, and work-related injury insurance. Meanwhile, in 2020, the central government’s allocation ratio for the basic old-age insurance fund for enterprise employees was raised to 4%, further strengthening support for regions facing financial difficulties.

The notice clarifies that, starting February 2020, all provinces except Hubei may exempt small, medium, and micro enterprises from the employer’s share of contributions to the three social insurance schemes, for a period not exceeding five months. For large enterprises and other insured entities (excluding government agencies and public institutions), the employer’s share of these three social insurance contributions may be reduced by half, for a period not exceeding three months. In Hubei Province, all types of insured entities (excluding government agencies and public institutions) may also be exempted from the employer’s share of the three social insurance contributions, for a period not exceeding five months. Enterprises experiencing severe operational difficulties due to the epidemic may apply to defer payment of social insurance premiums; the deferral period shall, in principle, not exceed six months, and no late-payment penalties will be imposed during the deferral period. Each province shall, in accordance with relevant regulations and based on its own circumstances, determine the specific enterprises eligible for such reductions or exemptions.

The notice emphasizes that, to ensure the social insurance rights and interests of insured persons are not affected, enterprises must withhold and remit employees’ individual contributions in accordance with the law, while social security administration agencies must maintain accurate records of individual entitlements. All provincial governments are required to assume full responsibility for ensuring that all social insurance benefits are paid on time and in full. The notice further calls on provincial governments to strengthen organizational leadership, promptly formulate specific implementation measures, and expedite the delivery of relief and exemption policies.

Tax big data helps ensure that business-friendly policies are effectively implemented.

During the pandemic, tax authorities leveraged multi-channel approaches to advance data integration. Drawing on the criteria of tax relief policies for epidemic prevention and control, they consolidated their own tax data while strengthening inter‑agency collaboration and concurrently expanding the use of third‑party data, thereby helping enterprises fully benefit from various preferential measures and facilitating their resumption of work and production.

Data integration “locks in” preferential enterprises.

“The tax authorities’ online, precision‑targeted guidance has been a tremendous help to us. At present, our production lines are operating at more than 70% capacity, and we expect output value for January and February to reach RMB 3.2 billion—on par with the same period last year,” said Chen Huiyong, the finance director of Luxun Electronic Technology Co., Ltd.

How can taxpayers eligible for tax incentives be accurately identified? Tax authorities across the country are leveraging tax‑related big data, each employing its own innovative approaches.

The Lin’an District Tax Service Bureau of Hangzhou City, starting from identified issues and taxpayer needs, leverages information technology to analyze and organize frequently asked questions and match them with detailed answers. Using online communication platforms such as DingTalk, WeChat, and QQ, it proactively delivers this information to 6,070 taxpayers who have been intelligently identified as potentially eligible for relevant policies, enabling them to independently access the materials and resolve their queries on their own.

The Guangxi tax authorities have made full use of big data to accurately identify and analyze taxpayers in industries severely affected by the pandemic, providing them with comprehensive support.

“Just as I was worrying about inaccuracies in our financial reporting and considering a delay in filing, I received a push notification from the tax authorities about preferential policies,” said Ni Min, the company’s finance officer at Guilin Dagongguan Hotel Co., Ltd. “The national policies are truly supportive, and the tax services are exceptionally attentive—enjoying tax exemptions right away and completing online filing with a single click!”

Third-party data enhances the precision of tax services.

While leveraging their own data to enhance the convenience of “contactless” services, tax authorities across the country have also proactively strengthened inter‑agency collaboration and extensively utilized third‑party data to accelerate and improve the precision of implementing epidemic prevention and control policies.

The Shandong Provincial Tax Service Bureau has established a data-sharing mechanism to obtain from the Provincial Department of Industry and Information Technology a list of 146 key enterprises across the province that produce epidemic‑prevention and control supplies, and has integrated this list into the bureau’s “Comprehensive Monitoring Service Platform for Tax and Fee Reductions,” thereby achieving information‑based management.

Anjie Company is a manufacturer of epidemic‑prevention supplies that has been brought under the platform’s management. General Manager Liu Feng said, “Dezhou tax officials contacted us by phone and promptly helped resolve our difficulties in obtaining invoices, while also providing a detailed explanation of the tax relief—exceeding RMB 215,000—that we are eligible for under the relevant policies. With such strong support from tax policies, we feel even more confident in our ability to fully ensure the supply of epidemic‑prevention materials.”

Following reports from big‑data donation records that Fujian Qiaolong Emergency Equipment Co., Ltd. donated RMB 1 million through the Longyan City Red Cross Society to support pandemic‑response efforts, the Fujian tax authorities promptly provided guidance via the online taxpayer‑administration interaction WeChat platform, helping the company understand the tax policies governing charitable donations and ensuring proper filing for the relevant tax benefits. As a result, this RMB 1 million donation will be fully deductible before tax.

Tax data is bridging the gap for resuming work and production.

Tax‑related big data, particularly VAT invoice data, boasts broad coverage and high timeliness, enabling a comprehensive reflection of economic dynamics. According to reports, while prioritizing epidemic prevention and control, the Jiangsu tax authorities have leveraged the advantages of tax‑related big data to conduct in-depth analyses of economic trends, help enterprises meticulously map out their industrial chains, identify challenges faced by upstream and downstream partners, and formulate targeted support measures and recommendations, thereby providing practical assistance to facilitate the resumption of production and operations.

To boost mask production and support frontline抗疫 efforts, Maidaikang Medical Supplies Company added a new production line shortly after the Spring Festival. However, it faces an 8-ton shortfall in a key raw material—elastic bands—and each day the line idles results in significant losses for the company.

Upon receiving this request for assistance, the Wuzhong District Tax Bureau of Suzhou promptly leveraged tax‑related big data to conduct searches using keywords such as “elastic bands” and “stretch straps,” along with key fields like business scope and tax classification. This initial screening identified several dozen manufacturing enterprises. Building on these findings, the bureau conducted comparative analyses of financial data and engaged in telephone and online communications, ultimately identifying Zhangjiagang Jinkaili Apparel Co., Ltd. as a supplier that met the specified requirements.

“Thanks to the robust support of the tax authorities’ big data, we were able to identify our raw-material suppliers,” said Sha Hongwei, head of Medicon Medical. At present, the company’s newly commissioned mask production line has officially begun operations and is running at full capacity to ramp up output.

To help businesses resume production and operations smoothly, the Sichuan tax authorities leveraged big data to identify and map logistics and transportation enterprises, enabling Sichuan Tianwei Food Group Co., Ltd. to secure additional transport capacity and avert potential losses of 20 to 30 million yuan that could have resulted from failure to fulfill contractual obligations.

LITIGATION & ARBITRATION

The Supreme People’s Court and the Supreme People’s Procuratorate Address Legal Issues in Criminal Cases Involving Obstruction of Epidemic Prevention and Control Measures.

Since the outbreak of the COVID‑19 pandemic, people’s courts and people’s procuratorates at all levels have, in accordance with the law, handled a number of criminal cases involving obstruction of epidemic prevention and control. Recently, Jiang Qibo, Director of the Research Office of the Supreme People’s Court, and Gao Jingfeng, Director of the Legal and Policy Research Office of the Supreme People’s Procuratorate, addressed legal application issues that arose during case handling.

Question: When handling criminal cases involving obstruction of epidemic prevention and control, how should the crimes of endangering public safety by dangerous methods and obstructing the prevention and control of infectious diseases be accurately applied?

Answer: According to the “Opinions of the Supreme People’s Court, the Supreme People’s Procuratorate, the Ministry of Public Security, and the Ministry of Justice on Lawfully Punishing Criminal Offenses That Obstruct the Prevention and Control of the Novel Coronavirus Pneumonia Epidemic,” when applying the crime of endangering public safety by dangerous methods in handling cases involving offenses that impede epidemic prevention and control measures, the following three aspects should be carefully considered:

First, the subject is limited to conofficeed COVID‑19 patients, pathogen carriers, or suspected COVID‑19 cases; second, the perpetrator must act with intent to spread the COVID‑19 pathogen; and third, objectively, the conduct consists of refusing isolation treatment or leaving isolation prematurely before the prescribed period has elapsed, thereby entering public places or public transportation. In the case of suspected COVID‑19 cases, it is further required that such conduct result in the transmission of the novel coronavirus.

In practice, the crime of endangering public safety by dangerous methods should be applied strictly in accordance with the law. With respect to the two scenarios specified in the Opinions, the crime of endangering public safety by dangerous methods shall apply. Furthermore, where an individual, knowing full well that they have been diagnosed with or are suspected of having COVID‑19, deliberately and maliciously spreads the virus to an indefinite number of persons out of subjective motives such as revenge against society, and the consequences are severe and the circumstances particularly egregious, the crime of endangering public safety by dangerous methods shall likewise apply. As for other acts of refusing to comply with epidemic prevention and control measures that result in the transmission of the novel coronavirus or pose a serious risk of such transmission, the crime of obstructing disease prevention and control, as stipulated in Article 330 of the Criminal Law, shall apply.

Question: How are “conofficeed COVID‑19 patients” and “suspected COVID‑19 patients” defined? If, at the time of the act, the perpetrator was unaware of their own condition but was later determined to be a conofficeed or suspected COVID‑19 patient, can such a situation still be deemed as meeting the criteria?

Answer: In practice, the determination of “conofficeed COVID‑19 patients” and “suspected COVID‑19 patients” shall be based on diagnostic conclusions, laboratory test reports, and other relevant documentation issued by medical institutions. Where an individual exhibits certain symptoms suggestive of COVID‑19 infection, such as fever, dry cough, or fatigue, but no corresponding diagnostic conclusion or laboratory test report has been provided by a medical institution, such person may not be classified as a “conofficeed COVID‑19 patient” or a “suspected COVID‑19 patient” as defined in Article 1 of these Opinions.

In the course of case handling, where an individual has engaged in conduct that obstructs epidemic prevention and control but has not yet been diagnosed by a medical institution as a conofficeed or suspected COVID‑19 patient at the time of the act, yet is subsequently conofficeed—through diagnosis or testing—to be a conofficeed or suspected COVID‑19 patient, the provisions of the Opinions concerning the criminal liability for intentionally spreading the COVID‑19 pathogen by conofficeed or suspected patients shall not apply.

Question: In the course of case handling, how should “violation of the provisions of the Law on the Prevention and Control of Infectious Diseases” and “preventive and control measures proposed by health and epidemic‑prevention institutions in accordance with the Law on the Prevention and Control of Infectious Diseases” be determined? For example, can a notice issued by local emergency command centers or local governments mandating 14 days of home isolation—based on provisions such as the Law on Responding to Sudden Events—be deemed to constitute such violations?

Answer: In handling cases involving obstruction of epidemic prevention and control, the provisions of laws and regulations—including the Law on the Prevention and Control of Infectious Diseases, the Law on Responding to Emergencies, the Regulations on Emergency Response to Public Health Emergencies, and the National Emergency Plan for Public Health Emergencies—may all serve as the basis for determining “violation of the provisions of the Law on the Prevention and Control of Infectious Diseases” in the crime of obstructing such prevention and control. At the same time, with respect to epidemic prevention and control measures issued by local governments and relevant departments during the period of epidemic response pursuant to the aforementioned laws, regulations, and normative documents, if such measures are duly grounded in law and free from manifest impropriety, they may generally be deemed to fall within the scope of the “preventive and control measures proposed by health and epidemic‑prevention institutions in accordance with the Law on the Prevention and Control of Infectious Diseases” as stipulated in Article 330, Paragraph 1, Item 4 of the Criminal Law.

It should be noted that, for an offender to be found guilty of the crime of obstructing infectious disease prevention and control under Article 330 of the Criminal Law, in addition to engaging in conduct that refuses to comply with preventive and control measures, there must also be circumstances demonstrating that such conduct has either caused the spread of the COVID‑19 virus or created a serious risk of such spread. As for ordinary violations of preventive and control measures, public security organs shall impose administrative penalties in accordance with the Law on Public Security Administration Penalties, or the relevant authorities may impose other administrative sanctions.

Question: In the course of handling cases, how should the “causing the spread of a Class A infectious disease or posing a serious risk of such spread” element in the crime of obstructing the prevention and control of infectious diseases be determined?

Answer: In handling cases involving obstruction of epidemic prevention and control, whether the conduct has resulted in the transmission of COVID‑19 or poses a serious risk of such transmission is a key criterion for establishing the crime of obstructing infectious disease prevention and control. Specifically, this determination must be made through a case‑by‑case analysis, taking into account the following three main aspects:

First, from the perspective of the actor, it is necessary to determine whether the individual is a conofficeed COVID‑19 patient, a pathogen carrier, a suspected case, or a close contact thereof; whether the individual has traveled to or from a high‑incidence area; whether the individual has already manifested symptoms of COVID‑19 infection; or whether the individual belongs to other high‑risk groups.

Second, from the perspective of conduct, the question is whether the actor engaged in behavior that refused to comply with epidemic prevention and control measures, such as refusing to implement isolation measures, concealing or falsely reporting one’s medical condition, travel history, residential history, contact history, or whereabouts, entering public places or public transportation, or having close contact with multiple individuals.

Third, from the perspective of the harmful consequences of the conduct, and in light of the specific circumstances of each case, a comprehensive assessment shall be made as to whether the harm caused by the perpetrator has reached the threshold of “causing the transmission of a Class A infectious disease or posing a serious risk of such transmission,” for example, when multiple individuals are conofficeed to have contracted COVID‑19 or are diagnosed as suspected cases.

In practice, given that the crime of obstructing the prevention and control of infectious diseases is a public health offense, cases in which the perpetrator causes transmission or infection among family members living together are generally not treated as criminal offenses.

Question: With respect to villagers, property security personnel, and others who, by means of violence or threats, refuse to cooperate with measures such as testing and quarantine implemented in the context of epidemic prevention and control, can their conduct be characterized as the crime of obstructing official business?

Answer: Given the sudden and widespread nature of the epidemic, in order to maximize prevention and control efforts, governments at all levels and relevant departments are required to organize and mobilize residents’ (village) committees, community organizations, and other entities to fulfill their prevention and control duties and implement corresponding control measures. With respect to personnel within these organizations, if they fall under the category of “public officials engaged in official duties within organizations entrusted by state organs to exercise epidemic‑prevention and control powers on behalf of those organs,” they may be considered subjects of the crime of obstructing official business. Furthermore, any actions taken by individuals lawfully performing epidemic‑prevention and control tasks—consistent with the unified requirements of the government and relevant competent authorities and closely related to measures such as disease prevention, quarantine, compulsory isolation, or isolated treatment—shall be deemed official acts.

For individuals who do not meet the aforementioned two conditions and who, by means of violence or threats, obstruct epidemic prevention and control efforts despite being required to undergo testing or quarantine—where such conduct does not constitute the crime of obstructing official business—they may, depending on the nature of their actions and the resulting harm, be held criminally liable under relevant statutes, including intentional injury, provoking trouble, or insult.

Question: If a person disseminates false information related to the epidemic and then deletes it on their own, can this still be treated as a criminal offense?

Answer: First, it is necessary to examine whether the actor acted with the subjective intent to disseminate false information. Full consideration must be given to the disseminator’s level of cognitive capacity regarding the relevant information, as well as the specific circumstances under which the false information was spread. It is impermissible to conclude that the dissemination of such information constitutes intentional spreading of falsehoods and thus criminal liability solely on the basis that the information differs from objective reality.

Second, it is necessary to assess the degree of social harm caused by the conduct and determine whether it has reached a level that seriously disrupts social order. Whether the act of intentionally disseminating false information related to the epidemic and then voluntarily deleting it constitutes a crime cannot be decided across the board. A comprehensive evaluation must take into account such factors as the scope of the false information’s dissemination and its actual impact on social order; one should not simply conclude that no harm was likely to result merely because the information was “voluntarily deleted.” Some pieces of information remain unshared for an extended period and go unnoticed, while others—particularly sensitive ones—may spread widely within minutes before being deleted, thereby causing substantial harm. If the perpetrator promptly deletes the false information on their own initiative and the act has not resulted in significant social repercussions or reached a threshold of seriously disrupting social order, criminal prosecution shall be refrained from in accordance with the law.

A batch of new regulations—covering securities investment, internet governance, and mortgage interest rates—will take effect starting in March.

A more robust securities law safeguards investors’ rights; stricter new regulations on internet governance ban practices such as “doxing”; more flexible mortgage rates deliver tangible benefits to the public; and newly introduced, user‑friendly traffic‑management rules have launched pilot programs… Starting in March, a wave of pro‑public measures has taken effect, directly impacting our everyday lives.

The new Securities Law strengthens investor protection.

The revised Securities Law has been in effect since March 1, safeguarding the investment security of stock investors. The new law stipulates that issuers must fully disclose, in their securities issuance application documents, all information necessary for investors to make value judgments and investment decisions. With regard to liability for violations of laws and regulations, entities not only face stringent administrative penalties but also bear civil liability for fraudulent issuance and false disclosure, are subject to sanctions for breaches of trust, and, if suspected of criminal offenses, will be referred to judicial authorities for criminal prosecution.

The new Securities Law explicitly prohibits securities offices from permitting others to directly engage in centralized securities trading in the office’s name, and it strengthens the due diligence obligations of underwriters. When an issuer violates disclosure requirements, the sponsor and the directly responsible personnel of the underwriting securities office shall also bear joint and several liability for compensating investors’ losses, based on a presumption of fault.

With respect to securities service institutions, the new Securities Law adopts a post‑filing regime for all such entities except investment advisory offices. If a securities service institution fails to exercise due diligence, it may be subject to a fine of up to ten times its business income; in cases of serious violations, it may also face administrative penalties, including suspension or prohibition from engaging in securities services.

For investors, the new Securities Law further strengthens the real-name registration system for securities accounts, refines the legal prohibitions against insider trading, market manipulation, and trading based on non-public information, and provides a range of safeguards to protect investors’ rights.

Prohibit illegal activities such as doxxing and fabricated traffic.

The Regulations on the Governance of the Online Information Content Ecosystem have been in effect since March 1. The regulations stipulate that users and producers of online information content, as well as platforms, shall not engage in illegal activities such as cyberbullying, doxxing, deepfakes, fabricated traffic, or account manipulation.

Producers of online information shall abide by laws and regulations, uphold public order and good morals, and shall not harm national interests, public interests, or the legitimate rights and interests of others. They shall not create, reproduce, or publish illegal content that “endangers national security, leaks state secrets, subverts state power, or undermines national unity,” nor content that “damages national honor and interests.” Furthermore, they must prevent and resist the creation, reproduction, and dissemination of harmful information, including that which “uses exaggerated headlines that bear no relation to the actual content” or that which “exploits scandals, controversies, or misconduct.”

Users of online information services shall use the internet in a civilized and healthy manner, conscientiously fulfill their corresponding obligations in accordance with laws and regulations and the terms of the user agreement, and engage in online activities—such as posting, replying, leaving messages, or sending danmaku—in a courteous and rational manner.

In accordance with the relevant regulations, online information content service platforms shall strengthen the governance of their platform’s online information ecosystem and foster a positive, healthy, and morally uplifting online culture. Such platforms must also establish and improve systems for user registration, account management, content‑posting review, follow-up comment moderation, editorial‑page ecosystem management, real-time monitoring, emergency response, and the handling of online rumors and information related to illicit black‑market chains.

Purchasing financial‑planning insurance provides stronger protection for your rights.

What should you do if a dispute arises when purchasing banking or insurance services? The Measures for the Administration of Handling Consumer Complaints in the Banking and Insurance Sectors, which came into effect on March 1, provides a robust framework for protecting your rights.

The Measures clarify that banking and insurance institutions are the entities responsible for handling consumer complaints, exercising jurisdiction over such matters on a local basis, fully considering and respecting consumers’ legitimate demands, and reaching fair and lawful conclusions.

The Measures encourage improving the efficiency of complaint handling. For consumer complaints where the facts are clear and the disputes are straightforward, banking and insurance institutions shall conclude the matter within 15 days and notify the complainant; in cases of greater complexity, the period may be extended to 30 days. In particularly complex situations or where other special circumstances exist, the processing deadline may be further extended by an additional 30 days following the completion of the requisite approval procedures.

The measures require banking and insurance institutions to establish and improve systems for tracing the root causes of issues and for holding parties accountable. Banking and insurance institutions must also institute a conflict-of-interest avoidance mechanism in handling complaints, designating personnel who have no direct interest in the matter at hand to process such complaints.

The Measures emphasize that banking and insurance institutions shall not refuse to accept consumers’ legitimate complaints or demands, nor shall they require complainants to provide materials that the institution already possesses or can obtain by consulting its internal records.

Some regions are piloting a program that allows drivers to have traffic violation points reduced in exchange for completing educational courses.

According to the Ministry of Public Security’s Notice on the “Work Standards for Reducing Points for Road Traffic Safety Violations through Participation in Traffic Safety Education (Trial),” starting March 1, the policy of “reducing traffic violation points through participation in educational programs” has been launched as a pilot initiative in Shenzhen, Guangdong, and several other regions.

Motor vehicle drivers who meet the prescribed conditions may participate in road traffic safety law, regulation, and related‑knowledge study and examinations, or in public‑interest traffic safety activities, organized by the public security traffic management authorities, thereby having their demerit points for road traffic safety violations reduced or waived. Applications will not be accepted if, during the current scoring cycle, the driver has two or more instances of achieving the maximum score, or if their accumulated demerit points have reached 12, or if any one of eight other specified circumstances applies.

According to this regulation, motor vehicle drivers may fulfill their traffic safety education requirements by either taking a study-and-examination course or participating in public‑interest traffic safety activities. The study-and-examination option includes online and on‑site sessions, while the public‑interest activities encompass such forms as promoting civilized traffic behavior and conducting traffic safety awareness campaigns.

With regard to the methods and point‑deduction values for point reductions, it should be clarified that, as stipulated, after a motor vehicle driver completes traffic safety education and meets the eligibility criteria for point reduction, the corresponding points will be deducted from the driver’s existing accumulated total—rather than being treated as no‑points when addressing traffic violations. A motor vehicle driver may receive a maximum cumulative reduction of 6 points per scoring cycle.

Commercial Mortgage Rate Adjustment: Borrowers Can Choose Either Option

According to an announcement by the People’s Bank of China, from March 1 to August 31, 2020, the pricing benchmarks for existing floating-rate loans will be converted. This means that the pricing benchmarks for outstanding commercial individual housing loans will also be converted.

The announcement clarifies that, effective March 1, 2020, financial institutions shall negotiate with existing floating-rate loan customers to amend the pricing‑benchmark conversion provisions, converting the original contractual interest‑rate pricing method to one based on the Loan Prime Rate (LPR) plus a spread (which may be negative), with the spread remaining fixed for the remainder of the contract term; alternatively, borrowers may opt for a fixed interest rate. The pricing benchmark may be converted only once, and once converted, it cannot be changed again. Existing floating‑rate loans that are already in their final repricing cycle are exempt from this requirement.

The conversion of existing loan pricing benchmarks has presented borrowers with a choice: they can negotiate with their bank to switch to the LPR, or opt for a fixed interest rate. If they choose LPR‑based pricing, and given expectations of an LPR decline, a floating‑rate quote would be more appropriate; however, amid factors such as rising inflation, the LPR could also enter an upward cycle, potentially pushing mortgage rates higher. On the other hand, if borrowers switch to a fixed rate, they may incur slightly higher interest expenses during the next repricing period.

Borrowers may proactively communicate with the bank to negotiate and determine the conversion method and specific terms.

Implementation of the Provisional Measures for the Examination of “Three Products and One Medical Device” Advertisements

To implement the “four strictest” requirements, strengthen the supervision and administration of advertisements for “three products and one medical device,” and standardize advertising review procedures, the State Administration for Market Regulation promulgated the Interim Measures for the Review and Administration of Advertisements for Drugs, Medical Devices, Health Foods, and Formula Foods for Special Medical Purposes on December 24, 2019 (hereinafter referred to as the “Interim Measures”), which entered into force on March 1, 2020. The Interim Measures comprise 34 articles, providing a systematic and comprehensive framework covering the legislative basis, scope of application, competent authorities, content standards, review procedures, and legal liabilities pertaining to the review of advertisements for “three products and one medical device.”

China has imposed a comprehensive ban on the illegal trade of wild animals and eliminated the harmful practice of consuming them.

In order to comprehensively prohibit and punish illegal wildlife trade, eradicate the harmful practice of consuming wild animals, safeguard biosafety and ecological security, effectively prevent major public health risks, earnestly protect the lives and health of the people, strengthen ecological civilization, and promote harmonious coexistence between humanity and nature, the 16th Meeting of the Standing Committee of the 13th National People’s Congress adopted, on the afternoon of the 24th, a Decision on comprehensively banning illegal wildlife trade, eradicating the harmful practice of consuming wild animals, and effectively ensuring the safety of people’s lives and health. The Decision shall enter into force as of the date of its promulgation.

The decision explicitly stipulates that any hunting, trading, transporting, or consumption of wild animals prohibited under the Wildlife Protection Law and other relevant laws shall be strictly forbidden. A comprehensive ban is imposed on the consumption of terrestrial wild animals protected at the national level—those of significant ecological, scientific, or social value—as well as other terrestrial wild animals, including those bred or raised in captivity. Furthermore, the hunting, trading, and transporting of terrestrial wild animals that naturally grow and reproduce in the wild for the purpose of consumption are also comprehensively prohibited.

The decision stipulates severe penalties for the illegal consumption and trade of wild animals. For violations of the Wildlife Protection Law and other relevant laws involving the hunting, trading, transporting, or consuming of wild animals, penalties shall be increased beyond the levels prescribed by existing laws. With respect to the acts of illegal consumption and the hunting, trading, or transporting of wild animals for the purpose of consumption that are newly added by this decision, penalties shall be imposed in accordance with the provisions on similar offenses set forth in the Wildlife Protection Law and other applicable laws.

With respect to animals that have been artificially bred and utilized for a long time, with well-established technologies and widely accepted by the public—such as pigeons and rabbits—the decision stipulates that animals listed in the Catalogue of Livestock and Poultry Genetic Resources shall be deemed domestic livestock and poultry and shall be governed by the provisions of the Animal Husbandry Law.

The decision also stipulates that, in special circumstances such as scientific research, medicinal use, or exhibition, any non‑food utilization of wild animals shall be subject to strict approval and quarantine inspection in accordance with relevant national regulations. The State Council and its competent authorities shall promptly formulate and refine the regulations governing the approval, quarantine, and inspection of non‑food utilization of wild animals, and ensure their rigorous enforcement.

The decision stipulates that people’s governments at all levels and their relevant departments shall improve the law enforcement management system, clearly define the entities responsible for law enforcement, enforce accountability for law enforcement management, strengthen coordination and cooperation, intensify supervision and inspection as well as accountability, and rigorously investigate and prosecute violations of this decision and relevant laws and regulations. Illegal business premises and operators shall be shut down or sealed off in accordance with the law. The State Council and its relevant departments, as well as the provinces, autonomous regions, and municipalities directly under the central government, shall, in accordance with this decision and applicable laws, formulate and revise relevant lists and supporting regulations.

Nanjing police have solved a murder case involving a female student that occurred 28 years ago.

Late on the night of the 23rd, the Nanjing Municipal Public Security Bureau announced that the case involving the murder of a female student at Nanjing Medical College had been solved and the suspect had been apprehended. According to officials, the breakthrough was made possible by advances in forensic science, particularly in DNA technology.

On March 24, 1992, a female student named Lin, then a student at Nanjing Medical College in Gulou District, Nanjing, was brutally murdered. At the time, due to insufficient investigative resources, the identity of the perpetrator remained unknown for an extended period.

On February 19 this year, police used DNA analysis to determine that the suspect in the case might be a member of the Ma clan from Pei County, Xuzhou. In the early hours of the 23rd, Nanjing police found that the DNA profile of Ma Mougang, who resides in a residential complex in Nanjing’s Xuanwu District, matched the suspect’s profile exactly, establishing him as a prime suspect. Around 6 a.m., Ma Mougang was apprehended at his home by Nanjing police. During interrogation, he confessed to raping and murdering Lin某 at the former Nanjing Medical College 28 years ago.

The Ministry of Justice is soliciting public comments on the Regulations on the Administration of Permanent Residence for Foreigners.

To clarify the conditions for foreign nationals applying for permanent residency, standardize the application procedures and processes, and provide greater convenience to foreign residents, the Ministry of Justice on the 27th released the Regulations on the Administration of Foreigners’ Permanent Residency (Draft for Public Comment). Relevant organizations and members of the public may submit their comments and suggestions by visiting the Ministry of Justice’s official website or by mail. The deadline for submitting comments is March 27, 2020.

The draft for public comment clarifies that the Foreign Permanent Resident Identity Card serves as proof of identity for foreign nationals with permanent residency in China. Such individuals may use this card to verify their identity and engage in relevant activities, and no organization or its staff may refuse to accept it. The draft also sets out several circumstances under which foreigners may apply for permanent residency in China.

For example, foreigners who have achieved internationally recognized outstanding accomplishments in fields such as the economy, science and technology, education, culture, health, and sports may directly apply for permanent residency. Foreigners who have made significant contributions to China’s economic and social development, upon recommendation by the relevant state authorities or the people’s governments of provinces, autonomous regions, or municipalities directly under the central government, may also apply for permanent residency. Furthermore, foreigners recruited to meet the needs of national economic and social development—such as urgently needed and scarce talents in key industries or regions prioritized for national development, provided they have been recommended by the competent authorities—may likewise apply for permanent residency.

The draft for public comment stipulates that foreign nationals applying for permanent residency shall submit their applications to the entry‑exit administration authority of the public security organ in their place of residence, truthfully complete the application form, and provide their passport or other international travel document, compliant photographs, and the required supporting documents. They must also undergo an interview as prescribed and have their fingerprints and other biometric data collected. Permanent residents are required to spend no less than three months annually physically residing in China.

The draft for public comment stipulates that relevant departments of the State Council and people’s governments at all levels shall, in light of their respective departmental and regional circumstances, progressively promote the social application of the permanent residence ID card, thereby facilitating foreign nationals holding such cards to handle matters within China—including financial services, foreign exchange, education, medical care, transportation, telecommunications, social insurance, accommodation registration, property registration, and the application for a motor vehicle driver’s license.

According to the draft for public comment, foreign nationals with permanent residency may use dedicated channels reserved for Chinese citizens when entering or leaving China. Such individuals may, in accordance with relevant regulations, purchase residential housing for personal use and occupancy within China, and may contribute to and utilize housing provident fund accounts in compliance with applicable rules. Eligible foreign nationals with permanent residency, as well as their accompanying minor children, are entitled to receive compulsory education in China without incurring any fees beyond those prescribed by the state.

Other

The Statistical Bulletin on National Economic and Social Development of the People’s Republic of China for 2019 has been released.

On the 28th, the National Bureau of Statistics released the 2019 Statistical Bulletin on National Economic and Social Development. Covering everything from economic size and structure to scientific and technological innovation, ecological progress, social programs, and people’s living standards, the bulletin paints a new picture of China’s economic and social development.

“Overall, against the backdrop of slowing global economic growth and mounting downward pressure on the domestic economy, China’s economic ship has forged ahead with determination, advancing high-quality development at a steady and robust pace. This fully underscores the fundamentals of China’s stable and improving economic outlook and the institutional strengths of socialism with Chinese characteristics, while also vividly demonstrating the resilience, potential, and dynamism of a major economy’s sustained growth,” said Sheng Laiyun, Deputy Director of the National Bureau of Statistics.

China’s overall national strength has reached a new level.

According to the communiqué, preliminary calculations show that the country’s GDP for the year totaled 99.0865 trillion yuan, up 6.1% year on year; per capita GDP reached 70,892 yuan, an increase of 5.7% over the previous year.

According to estimates by the National Bureau of Statistics, China’s gross domestic product in 2019 reached US$14.4 trillion when converted at the annual average exchange rate, maintaining its position as the world’s second-largest economy. Per capita GDP, also expressed in U.S. dollars at the annual average exchange rate, stood at US$10,276, surpassing the US$10,000 threshold for the first time. Meanwhile, China’s economic growth rate of 6.1% in 2019 significantly outpaced the global average, ranking first among economies with a GDP exceeding US$1 trillion. Moreover, China contributed roughly 30% to global economic growth, continuing to serve as a major driving force behind worldwide economic expansion.

Meanwhile, China’s industrial development continued to advance. According to the report, in 2019, the value added of the industrial sector reached RMB 31.7109 trillion, up 5.7% year on year. Output of major industrial products also remained among the highest in the world. In 2019, integrated circuit production totaled 201.8 billion units, an increase of 8.9%, while steel production reached 1.2 billion tonnes, up 6.3%.

In addition, infrastructure has expanded rapidly. By the end of 2019, the total operating length of high-speed railways exceeded 35,000 kilometers, accounting for more than two-thirds of the world’s high-speed rail network; expressway mileage surpassed 140,000 kilometers, maintaining its position as the longest in the world. In 2019, the volume of express deliveries reached 63.52 billion parcels, up 25.3% from the previous year. Meanwhile, mobile internet data traffic grew by 71.6% year on year.

“China’s economic size has reached a new milestone, per capita income has surpassed US$10,000, industrial development and infrastructure have continued to improve, overall national strength has kept strengthening, and international influence has steadily expanded,” said Sheng Laiyun.

Improving the quality and efficiency of development

As China’s overall national strength has surged, its economic structural adjustment and transformation and upgrading have also made new progress.

— The structure of demand continues to improve. In 2019, domestic demand contributed 89% to economic growth, with final consumption expenditure accounting for 57.8% of that contribution—26.6 percentage points higher than gross capital formation. Total retail sales of consumer goods reached RMB 41.1649 trillion, up 8% year on year, surpassing the RMB 40 trillion mark for the first time.

— The leading role of scientific and technological innovation has been strengthened. In 2019, national expenditure on research and experimental development (R&D) increased by 10.5% over the previous year, accounting for 2.19% of GDP. That year, the number of invention patent applications reached 1.401 million, with 13.3 invention patents per 10,000 people.

— Remarkable progress has been made in promoting coordinated development between urban and rural areas as well as among different regions. At the end of 2019, the urbanization rate of the resident population stood at 60.6%, up 1.02 percentage points from the end of the previous year; the urbanization rate of the registered household population was 44.38%, an increase of 1.01 percentage points. Major regional development strategies have been advanced in a coordinated manner, further optimizing the pattern of regional collaborative development.

— Achievements in energy conservation, consumption reduction, and emissions reduction are becoming evident. In 2019, the national energy intensity of GDP—measured as energy consumption per 10,000 yuan of GDP—decreased by 2.6% compared with the previous year.

Sheng Laiyun stated that China has been vigorously boosting domestic demand as a key driver of growth, coordinating urban–rural and regional development, and achieving new progress in structural adjustment and industrial upgrading. As a result, fresh momentum for development continues to emerge, and high-quality development is advancing steadily and at a robust pace.

People’s living standards continue to improve.

In 2019, China adhered to the principle of shared development and put people’s wellbeing first, laying a solid foundation for enhancing the well-being of the people.

Household incomes grew at a pace broadly in line with economic growth. According to the report, in 2019, the national per capita disposable income stood at 30,733 yuan, up 5.8% in real terms from the previous year—roughly matching GDP growth and outpacing the growth rate of per capita GDP.

Remarkable progress has been made in the fight against poverty. According to the report, at the end of 2019, the rural poor population stood at 5.51 million, a decrease of 11.09 million from the previous year; the poverty incidence was 0.6%, down 1.1 percentage points from the previous year.

The social security system continued to improve. By the end of 2019, the number of participants in the urban employee basic pension insurance, the urban and rural resident basic pension insurance, and the basic medical insurance schemes had increased by 15.81 million, 8.74 million, and 9.78 million, respectively, compared with the end of the previous year.

Social programs continued to develop. In 2019, the consolidation rate of nine-year compulsory education reached 94.8%, up 0.6 percentage points from the previous year; the gross enrollment ratio at the senior secondary level stood at 89.5%, an increase of 0.7 percentage points. By the end of 2019, the country had a total of 1.014 million medical and health institutions, 17,000 more than the previous year, and 10.1 million health professionals, an increase of 570,000.

“It is imperative to recognize clearly that China’s fundamental national condition—remaining in the primary stage of socialism for a long time—has not changed, nor has its international status as the world’s largest developing country. The problems of unbalanced and inadequate development remain prominent, and significant shortcomings persist in public service sectors such as healthcare, education, and housing, requiring sustained efforts and enduring commitment,” said Sheng Laiyun.

2020 marks the year in which China will achieve a moderately prosperous society in all respects and bring the 13th Five-Year Plan to a successful conclusion. Sheng Laiyun stated that, at present, in the face of the adverse impacts of the COVID‑19 pandemic on the lives and livelihoods of the Chinese people, it is essential to remain confident, stand united, and resolutely win the overall battle and the decisive campaign against the epidemic, while sustaining steady and sound economic development to ensure a successful and comprehensive conclusion to the endeavor of building a moderately prosperous society in all respects.

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