Key Takeaways for This Issue

The China Securities Regulatory Commission and the State-owned Assets Supervision and Administration Commission of the State Council have jointly issued the “Notice on Supporting Central Enterprises in Issuing Science and Technology Innovation Corporate Bonds.”

This Notice aims to further improve the support mechanisms for the capital market in serving technological innovation, leverage the leading and exemplary role of central enterprises in driving scientific and technological advancement, promote high‑level circulation among science and technology, capital, and industry, and guide various financial resources to accelerate their allocation to the field of technological innovation, thereby better supporting the national strategy of innovation‑driven development.

The central bank and other authorities have further strengthened support for small and micro enterprises by extending the grace period for principal and interest repayments on their loans.

The People’s Bank of China, the China Banking and Insurance Regulatory Commission, the Ministry of Finance, the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the State Administration for Market Regulation—six departments in total—have jointly issued the “Notice on Further Strengthening Support for Extending Principal and Interest Repayments on Loans to Small and Micro Enterprises.” For small and micro enterprise loans due in the fourth quarter of 2022, banking and financial institutions are encouraged to, in accordance with market-based principles, work with enterprises to negotiate extensions of principal and interest repayments.

Nationwide, new tax and fee reductions, refunds, deferrals, and exemptions have exceeded 3.7 trillion yuan—demonstrating the growing positive impact of tax and fee support policies.

From January 1 to November 10 this year, the national tax system collectively implemented new tax and fee reductions, refunds, deferrals, and exemptions totaling over RMB 3.7 trillion. Meanwhile, the positive effects of various tax and fee support policies have continued to emerge: according to monitoring by the tax authorities, among 100,000 key tax‑paying enterprises nationwide, the tax and fee burden per RMB 100 of operating revenue has decreased by 5.3%. Since the third quarter, corporate sales revenue across the country has grown 3.4% year on year, signaling a steady recovery and improving momentum.

Provisions of the Supreme People’s Court on Several Issues Concerning Jurisdiction in Foreign-related Civil and Commercial Cases

　 The Provisions of the Supreme People’s Court on Several Issues Concerning Jurisdiction in Foreign-related Civil and Commercial Cases were adopted at the 1872nd Meeting of the Judicial Committee of the Supreme People’s Court on August 16, 2022. They are hereby promulgated and shall enter into force as of January 1, 2023.
 

Finance and Capital Markets

FINANCE &CAPITAL MARKETS

The China Securities Regulatory Commission is soliciting public comments on the “Guiding Opinions on Deepening the Reform of the Corporate Bond Registration System (Draft for Comments).”

To implement the major decisions adopted at the 20th National Congress of the Communist Party of China on improving the functions of the capital market and increasing the share of direct financing, and to deepen the reform of the corporate bond registration system and promote the high-quality development of the exchange‑traded bond market, the China Securities Regulatory Commission has recently drafted the “Guiding Opinions on Deepening the Reform of the Corporate Bond Registration System (Draft for Comments)” (hereinafter referred to as the “Guiding Opinions”).

The “Guiding Opinions,” in accordance with relevant provisions of the Securities Law, the Measures for the Administration of the Issuance and Trading of Corporate Bonds, and other applicable laws and regulations, adhere to a framework of institutionalization, standardization, and transparency. They set out a systematic institutional arrangement to deepen the reform of the corporate bond registration system, proposing 12 measures across four key areas: optimizing the review and registration mechanism for corporate bonds; strengthening the responsibilities of issuers and intermediary institutions; enhancing ongoing‑period management; and cracking down, in accordance with the law, on illegal and non‑compliant activities in the bond market.

Going forward, the China Securities Regulatory Commission will carefully review and incorporate feedback from all stakeholders, promptly issue and implement the Guiding Opinions, further refine the foundational framework of the bond registration system, safeguard a healthy bond market ecosystem, and enhance the quality and effectiveness of services to the real economy.

The China Securities Regulatory Commission and the State-owned Assets Supervision and Administration Commission of the State Council have jointly issued the “Notice on Supporting Central Enterprises in Issuing Science and Technology Innovation Corporate Bonds.”

The Party Central Committee with Comrade Xi Jinping at its core has consistently placed scientific and technological innovation at the heart of the country’s overall development. The report to the 20th National Congress of the Communist Party of China emphasized the need to uphold the principles that science and technology are the primary productive forces, talent is the primary resource, and innovation is the primary driving force; to adhere to the “four orientations”; and to accelerate the achievement of high-level self-reliance and self-strengthening in science and technology. It also called for improving the functions of the capital market and increasing the share of direct financing. To implement the major decisions and arrangements of the CPC Central Committee and the State Council, the China Securities Regulatory Commission and the State-owned Assets Supervision and Administration Commission of the State Council recently jointly issued the “Notice on Supporting Central Enterprises in Issuing Science and Technology Innovation Corporate Bonds” (hereinafter referred to as the “Notice”), aimed at further strengthening the capital market’s mechanisms for supporting scientific and technological innovation, leveraging the leading and exemplary role of central enterprises in this field, promoting a high‑level cycle among science and technology, capital, and industry, and guiding various financial resources to converge more rapidly into the realm of scientific and technological innovation, thereby better serving the nation’s innovation‑driven development strategy.

In recent years, the China Securities Regulatory Commission (CSRC) has actively promoted the establishment of a bond‑financing support system that covers the entire lifecycle of science and technology innovation enterprises. In 2017, it launched bonds for innovative and entrepreneurial companies, broadening financing channels for start-ups and growth‑stage offices; in 2021, it initiated a pilot program for science‑and‑technology innovation corporate bonds, extending eligibility to mature enterprises undergoing transformation and upgrading; and in 2022, it transitioned this pilot to a regular framework, bringing innovative and entrepreneurial bonds under the unified management of the science‑and‑technology innovation corporate bond program. At the same time, it further refined institutional measures related to issuers, use of proceeds, information disclosure, and ancillary arrangements, and issued relevant business guidelines. The State-owned Assets Supervision and Administration Commission of the State Council (SASAC) has encouraged central enterprises to seize the opportunities presented by bond‑market reforms and development, proactively participating in the pilot issuance of science‑and‑technology innovation corporate bonds to provide medium- and long-term funding support for advancing high‑level scientific and technological self‑reliance and strength. To date, these bonds have facilitated nearly RMB 140 billion in financing for more than 130 enterprises, with funds primarily directed toward cutting‑edge sectors such as integrated circuits, artificial intelligence, and high‑end manufacturing, thereby accelerating the translation of scientific and technological achievements into real productive forces. The joint issuance of the “Notice” by the CSRC and SASAC represents a concrete step to enhance the capital market’s service capabilities, promote the optimal allocation of innovation resources, and better serve both technological innovation and the real economy. This initiative will help strengthen the new national system for scientific and technological innovation, enabling central enterprises to take the lead in establishing hubs for original technologies; deepen industry–university–research collaboration under enterprise leadership, raising the level of technology transfer and commercialization; reinforce the role of enterprises as the main drivers of technological innovation; leverage the leading and supporting roles of key technology‑oriented enterprises; and foster a favorable environment for the growth of small and micro‑enterprises in the tech sector, thus advancing the deep integration of the innovation chain, industrial chain, financial chain, and talent chain.

Two departments have issued a document to improve the management of funds invested by overseas institutional investors in China’s bond market.

On the 18th, the People’s Bank of China and the State Administration of Foreign Exchange jointly issued the “Regulations on the Management of Funds for Overseas Institutional Investors Investing in the Chinese Bond Market,” which refine and clarify the requirements for managing funds invested by overseas institutional investors in China’s bond market, thereby further opening up the Chinese bond market. The regulations will take effect on January 1, 2023.

　　According to the announcement, the regulation standardizes and harmonizes the management rules governing foreign institutional investors’ participation in China’s bond market, covering aspects such as fund accounts, fund remittances and conversions, and statistical monitoring. It also refines spot foreign‑exchange settlement and sales management and permits foreign institutional investors to conduct these transactions through third‑party financial institutions other than their clearing agents. In addition, the regulation enhances foreign‑exchange risk‑management policies by further expanding hedging channels for foreign institutional investors and removing the cap on the number of counterparties in over-the-counter trading.

　　According to reports, the regulations have also streamlined the management of currency‑matching for remittances in and out of China, enhancing the convenience of capital repatriation for overseas institutional investors and encouraging long-term investment in the Chinese bond market. The rules further clarify foreign exchange‑management requirements for sovereign‑type institutions: sovereign‑type investors investing through custodians or settlement agents (commercial banks) are required to register with the relevant bank.

　　A spokesperson from the People’s Bank of China stated that the issuance of these regulations will further facilitate investment by overseas institutional investors in China’s bond market and enhance the market’s appeal to such investors.

Business and Corporations

COMMERCIAL & CORPORATE

The Beijing Stock Exchange supports the innovation and development of small and medium-sized enterprises.

The report to the 20th National Congress of the Communist Party of China proposed strengthening the primary role of enterprises in scientific and technological innovation, leveraging the leading and supporting role of technology‑driven backbone enterprises, fostering a favorable environment for the growth of technology‑based small and micro enterprises, and promoting the deep integration of the innovation chain, industrial chain, financial chain, and talent chain.

　　As a key platform for serving innovative small and medium-sized enterprises in the capital market, the Beijing Stock Exchange has delivered a strong performance on the occasion of its first anniversary: as of November 14, the exchange had 123 listed companies, of which 77% are SMEs and 86% are private enterprises. Over 80% are concentrated in strategic emerging industries and advanced manufacturing, with 49 being national-level “Little Giant” offices specializing in niche markets. The average R&D intensity stands at 4.3%, significantly above the national average.

Over the past year since its launch, the Beijing Stock Exchange has continuously refined its institutional framework and strengthened its service capabilities, fostering the clustered development of a cohort of small and medium-sized enterprises that boast strong innovation capacity, rapid growth, and robust technological foundations, while accelerating efforts to forge an inclusive financial pathway through the capital market that better serves these businesses.

Precision‑based inclusiveness and differentiated development are gradually giving rise to institutional arrangements that align with the distinctive characteristics of innovative small and medium‑sized enterprises.

　　Having begun preparations for an IPO last October, the company received unconditional approval from the review committee on June 17 this year and officially listed on the Beijing Stock Exchange on August 8—marking a smooth entry into the exchange market after ten months of preparation. “We’re incredibly excited! We’ve truly experienced the Beijing Stock Exchange’s precise and inclusive support for innovative small and medium-sized enterprises,” said Hou Peng, the company’s deputy general manager, adding that the exchange’s backing has bolstered the company’s confidence.

Innovation-driven growth has been significantly strengthened, and a positive ecosystem characterized by the accelerated convergence of resources from all sectors has begun to take shape.

　　In late August this year, Jilin TanGu Carbon Fiber Co., Ltd. successfully commissioned its 10,000‑ton‑per‑year production line for large‑tow carbon fiber precursor. “This ultra‑fine carbon fiber weighs only one‑quarter as much as steel, yet its strength is seven to eight times that of steel,” said Lu Guijun, the company’s board secretary. The company focuses on the R&D and production of large‑tow carbon fiber, which is widely used in wind power, automotive lightweighting, and other industries. As one of the first batch of companies to transition from the Select Tier of the New Third Board to listing on the Beijing Stock Exchange, Jilin TanGu has gained broader growth prospects, continuously enhanced its R&D and manufacturing capabilities, and rapidly expanded its market presence. In the first three quarters of this year, its net profit attributable to shareholders surged 170.1% year over year.

Reform and innovate, improve institutional frameworks, and build a world-class exchange dedicated to serving innovative small and medium-sized enterprises.

A responsible official at the Beijing Stock Exchange stated that the exchange will continue to refine its systems and functions across three key areas, elevating market development to a new level: first, by balancing standardization with growth, improving institutional frameworks tailored to the needs of enterprises, comprehensively enhancing market service capabilities, and fostering innovation and development; second, by prioritizing investor needs, refining relevant regulatory arrangements, streamlining investment and exit channels, effectively safeguarding investors’ legitimate rights and interests, and boosting their sense of gain; and third, by adhering to the principle of inclusive finance, leveraging the platform roles of the New Third Board and the Beijing Stock Exchange, strengthening communication and coordination with national ministries and local governments at all levels, promoting the improvement of policy support systems for small and medium-sized enterprises, and pooling diverse resources to jointly cultivate a favorable ecosystem that better supports the innovative development of SMEs.

　　“Over the past year since the Beijing Stock Exchange opened, it has established a market structure that integrates the New Third Board with the Beijing Stock Exchange, providing small and medium-sized enterprises with a step-by-step pathway for capital market development and offering us a broader platform,” said Li Xudong. “We must adopt a long-term perspective: securities offices, intermediary service providers, and other market participants should uphold the principles of inclusive finance, increase their investment in capital market services for SMEs, and help build comprehensive service platforms tailored to innovative small and medium-sized enterprises.”

From January to October, the revenue and profitability of central enterprises grew steadily.

From January to October this year, central enterprises posted steady growth in revenue and profitability, recording operating revenue of RMB 32.3 trillion, total profits of RMB 2.2 trillion, and net profits of RMB 1.7 trillion—up 9.9%, 4.7%, and 3.9% year on year, respectively.

This information was obtained by the reporter at an expanded meeting recently convened by the Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council.

According to the meeting’s findings, while operational quality has remained stable and improved, state-owned enterprises have played a leading role in fostering coordinated development across the industrial chain, from upstream to downstream. By offering rent reductions, lowering service fees, and implementing other measures, they have extended approximately RMB 20 billion in benefits to society, thereby providing strong support for stabilizing the overall macroeconomic landscape.

The meeting emphasized that state-owned enterprises and central SOEs must prioritize stable growth, strengthen efforts to enhance quality and efficiency, further ensure energy supply, intensify measures to turn around loss-making enterprises, successfully conclude the three-year action plan for SOE reform, strive to achieve the year’s business targets, accelerate the development of original‑technology innovation hubs and assume the role of “chain leaders” in modern industrial chains, bolster core competitiveness, expedite the building of world-class enterprises, and fully leverage the strategic supporting role of the state‑owned economy.

Three departments: Commercial banks may engage in guarantee‑for‑pre‑sale escrow fund replacement transactions with high‑quality real estate developers.

Another major policy has been introduced to address liquidity risks among property developers. On November 14, the China Banking and Insurance Regulatory Commission, the Ministry of Housing and Urban–Rural Development, and the People’s Bank of China jointly issued the “Notice on Matters Related to Commercial Banks Issuing Letters of Guarantee to Replace Pre-sale Supervision Funds” (hereinafter referred to as the “Notice”), aimed at helping high-quality real estate enterprises make prudent use of pre-sale supervision funds, mitigating and resolving their liquidity risks, and promoting the stable and sound development of the real estate market.

　　The Notice clarifies that once the funds in the escrow account reach the regulatory threshold set by the housing and urban–rural development authorities, real estate enterprises may apply to commercial banks for a guarantee to replace funds within the escrow limit. The amount replaced by the guarantee shall not exceed 30% of the funds in the escrow account required to ensure the project’s completion and delivery, and the remaining escrow funds after such replacement must be no less than 70% of the amount needed to secure the project’s completion and delivery. Commercial banks, in accordance with market‑based and rule‑of‑law principles and based on a thorough assessment of the real estate enterprise’s credit risk, financial condition, reputational risk, and other factors, may make independent decisions and engage in guarantee‑based replacement of pre-sale escrow funds with high‑quality real estate enterprises.

　　With regard to the use of performance bonds, the Notice stipulates that when a real estate enterprise submits a performance bond issued by a commercial bank and requests the housing and urban–rural development authority to release funds corresponding to a specified amount from the pre-sale fund supervision account, the supervising bank shall cooperate with the housing and urban–rural development authority in conducting the necessary review. Upon approval following deliberation, the housing and urban–rural development authority shall issue a disbursement instruction to the supervising bank. The supervising bank shall then effect the fund disbursement in accordance with the authority’s instruction and reduce the account’s management limit by an equivalent amount.

　　Meanwhile, the Notice requires commercial banks, when issuing standby letters of guarantee to replace pre-sale escrow funds, to adhere to the credit‑granting standards for development loans and select high‑quality real estate enterprises that are operationally sound and financially stable. The full amount of the letter of guarantee shall be counted toward the unified credit limit extended to the real estate enterprise and its affiliated group. Banks must employ measures such as margin deposits, counter‑guarantees from the real estate enterprise, and other credit‑enhancing mechanisms to mitigate risks associated with this business; they are also required to set aside risk capital and establish risk reserves as prescribed. In the event of any advance payments, the issuing bank must promptly pursue recourse against the real estate enterprise to safeguard its credit rights. Any funds advanced must be adequately provisioned and accurately classified, and no risks may be concealed.

　　Dong Ximiao, chief researcher at Zhaolian Finance, stated that the joint efforts by financial regulators and housing‑and‑urban‑rural development authorities to introduce guarantee‑based replacement of pre-sale escrow funds represent a proactive initiative. This approach helps streamline the management of pre-sale escrow funds, provides liquidity support to high‑quality real estate offices through guarantees, more flexibly accommodates their day‑to‑day funding needs, alleviates liquidity pressures, and thereby promotes the stable and sound development of the real estate market.

The central bank and other authorities have further strengthened support for small and micro enterprises by extending the grace period for principal and interest repayments on their loans.

　Recently, six departments—the People’s Bank of China, the China Banking and Insurance Regulatory Commission, the Ministry of Finance, the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the State Administration for Market Regulation—jointly issued the “Notice on Further Strengthening Support for Loan Principal and Interest Payment Deferrals for Small and Micro Enterprises” (hereinafter referred to as the “Notice”). The Notice encourages banking and financial institutions to, in accordance with market-based principles, work together with small and micro enterprises to negotiate deferrals of principal and interest payments on loans due in the fourth quarter of 2022.

　　The Notice clarifies that, for small and micro enterprise loans—including business loans to individual industrial and commercial households and small‑and‑micro enterprise owners—that mature in the fourth quarter of 2022 and are temporarily distressed due to the COVID‑19 pandemic, the repayment of principal and interest may, in principle, be deferred until no later than June 30, 2023. Deferred loans will accrue interest as normal, with no penalty interest charged. All banking and financial institutions are required to adhere to substantive risk assessments, promptly adjust their credit management systems, refrain from downgrading loan risk classifications solely on the basis of pandemic‑related factors, ensure that such measures do not adversely affect credit records, and refine due‑diligence and liability‑exemption provisions related to loan repayment deferrals.

　　The Notice states that banking and financial institutions should innovate loan‑extension products and services, leverage fintech to enhance their capabilities, proactively align with enterprises’ extension needs, and offer tailored loan‑extension options, online renewal products, and digital channels for processing loan extensions. On the premise of effectively managing risks, applications for loan extensions that lack certain supporting documents may be processed on a “missing‑documents‑accepted” basis, with the required materials submitted afterward. At the same time, banking and financial institutions are urged to intensify efforts to publicize and explain relevant policies, promptly disclose eligibility criteria, required documentation, application procedures, and processing timelines, thereby improving the convenience of loan‑extension services for small and micro enterprises.

　　Since 2020, in response to the pandemic’s impact on market entities, the People’s Bank of China and other authorities have introduced a temporary policy allowing small, medium, and micro enterprises to defer principal and interest payments on their loans, effectively easing their liquidity pressures. “This time, the People’s Bank of China and other departments have once again emphasized that financial institutions are encouraged to extend loans to small and micro enterprises due in the fourth quarter of 2022, with extensions possible up to the end of June 2023. They have also coordinated related measures such as ‘acceptance of applications with missing documents,’ ensuring the continuity and stability of these policies. This provides small and micro enterprises with much‑needed reassurance, helping to bolster their confidence and expectations, and enabling them to navigate challenges and emerge from adversity,” said Dong Ximiao, Chief Researcher at Zhaolian Finance.

To fully motivate banking and financial institutions, the Notice stipulates that the People’s Bank of China will comprehensively employ a variety of monetary policy tools to ensure adequate liquidity in the banking system; financial regulators will effectively implement differentiated policies, such as setting tolerance levels for non‑performing loans among small and micro enterprises; and fiscal authorities at all levels, when assessing the 2022 operating performance of state‑controlled and equity‑participated banking and financial institutions, should fully take into account the impact of loan repayment‑extension policies and make appropriate adjustments and evaluations. At the same time, government‑backed financing guarantee institutions are encouraged to extend guarantee periods for enterprises with needs for loan repayment extensions and to continue providing credit enhancement support.

Taxation

TAXATION

Deepen thematic joint study and strive to promote collaborative learning and shared progress.

— The tax system is innovating its approaches to earnestly study and implement the spirit of the 20th National Congress of the Communist Party of China.

The national tax system has designated the study, publicity, and implementation of the spirit of the 20th National Congress of the Communist Party of China as its top political priority for the present and the period ahead. In recent days, tax authorities at all levels across the country have organized extensive joint learning activities on the themes of the 20th CPC National Congress, both within and outside the system, striving to enhance the appeal and emotional resonance of such learning while focusing on improving its relevance and effectiveness.

Focusing on Serving Chinese Modernization

System-wide, cross-level joint learning

The report to the 20th National Congress of the Communist Party of China, centered on breaking new ground in the sinicization and modernization of Marxism and advancing the great rejuvenation of the Chinese nation through Chinese-style modernization, addresses a series of major issues, providing fundamental guidance and a scientific roadmap for the development of the Party and the country.

Recently, Party organizations at all levels and cadres across all sectors of the tax system have focused on leveraging tax modernization to advance Chinese-style modernization. They have extensively organized cross‑hierarchical thematic joint study sessions, bringing together Party members and officials from higher‑level authorities and grassroots units to deepen their ideological understanding through deliberation and share their learning insights through exchange.

The report to the 20th National Congress of the Communist Party of China points out that building a modern socialist country in all respects is a great yet arduous undertaking, with a bright future but a long and challenging road ahead. In the thematic campaign “Spirit of the 20th CPC National Congress: Twenty Youth Groups Learn Together,” initiated by 20 youth theoretical study groups from grassroots tax authorities in Su-song, Anhui; Jiading, Shanghai; Dalian, Liaoning; Hulunbuir, Inner Mongolia; Yinchuan, Ningxia; Kunshan, Jiangsu; Taizhou, Zhejiang, and other localities, young Party members and cadres emphasized that China’s development has entered a period characterized by both strategic opportunities and risks and challenges, with an increasing number of uncertain and unpredictable factors. They stressed the need to strengthen their sense of potential danger, adhere to bottom-line thinking, remain vigilant in times of peace, and plan ahead for possible contingencies. On the path forward toward the great rejuvenation of the Chinese nation through the comprehensive advancement of Chinese-style modernization, it is essential to uphold the spirit of struggle, press on despite difficulties, meet challenges head-on, and spare no effort to overcome all obstacles and challenges along the way.

Focusing on Serving High-Quality Development

Interdepartmental joint study sessions within and across systems

“The essence of the socialist market economy is a rule-of-law economy,” says Huang Wenlong, Director of the Policy and Regulations Department of the Hunan Provincial Tax Service. He emphasizes that law is a vital instrument for governing the country, and the rule of law serves as an essential pillar of the national governance system and governance capacity. “The report to the 20th National Congress of the Communist Party of China underscores that advancing the rule of law in all respects constitutes a profound revolution in national governance, bearing on the Party’s governance and rejuvenation of the country, on the people’s well-being and security, and on the long-term stability of both the Party and the state. Fully promoting tax administration in accordance with the law is a fundamental requirement for fostering tax fairness and justice and upholding tax order; it is also one of the foundational prerequisites for the sound and sustainable development of the socialist market economy.”

Learning and advancing together. The 20th National Congress of the Communist Party of China is of great significance, far-reaching impact, and abundant achievements. Tax authorities at all levels will rally even more closely around the CPC Central Committee with Comrade Xi Jinping at its core, earnestly implement the decisions and arrangements of the CPC Central Committee, and continue to devote themselves to comprehensive study, thorough understanding, and rigorous implementation. They will innovate approaches, strengthen interactive communication and immersive experiences, uphold the integration of learning, thinking, and application, and the unity of knowledge, belief, and action, ensuring that the spirit of the 20th National Congress is fully reflected in every aspect of tax work. By fully leveraging the functions and roles of taxation, they will make new and greater contributions to the comprehensive building of a modern socialist country and to the great rejuvenation of the Chinese nation.

As of November 10, nationwide measures to cut taxes and fees, along with tax refunds and deferrals, have totaled over RMB 3.7 trillion—demonstrating the growing positive impact of tax and fee support policies.

On November 16, the State Council Information Office held a regular policy briefing to provide an update on the implementation of a series of tax and fee support measures. At the briefing, Wang Daoshu, Deputy Director of the State Taxation Administration, stated that from January 1 to November 10 this year, the national tax system had collectively processed over 3.7 trillion yuan in new tax and fee reductions, refunds, deferrals, and exemptions. Meanwhile, the positive effects of these policies have continued to emerge: according to monitoring by the tax authorities, among 100,000 key taxpayer enterprises nationwide, the tax and fee burden per 100 yuan of operating revenue has decreased by 5.3%. Since the third quarter, corporate sales revenue across the country has grown by 3.4% year on year, signaling a steady recovery and improving momentum.

Refund of outstanding tax credits “infuses capital” and “revitalizes” enterprises.

Large-scale refunds of outstanding input VAT credits are the centerpiece of this year’s new package of tax and fee support measures. According to Wang Daoshu, as of November 10, the total amount of such refunds credited to taxpayers’ accounts had reached RMB 2.3097 trillion, more than 3.5 times the total refund volume for the entire last year.

Cai Zili, Director-General of the Revenue Planning and Accounting Department of the State Taxation Administration, stated that the carryforward VAT refund has played a positive role in providing enterprises with “blood transfusions” and “revitalizing their cash flow”:

— Supporting the stable operation of the industrial economy. As of November 10, industrial enterprises have received tax refunds totaling RMB 831.3 billion; nationwide, the purchase expenditures of refunded industrial offices increased by 12.1% year on year, 2.8 percentage points higher than those of non‑refunded offices; and their sales revenue rose by 10.3% year on year, 2.2 percentage points above that of non‑refunded offices. Among the more than RMB 2.3 trillion in outstanding tax credit refunds, manufacturing accounted for RMB 617.6 billion, or 26.7%, making it the sector that has benefited most significantly. In addition, the average processing time for newly generated tax credit refunds to manufacturing offices has been shortened to within two working days, an acceleration of nearly 80%.

— Supporting the relief and development of small and micro enterprises. Small and micro businesses are the primary beneficiaries of the large-scale carryforward VAT refund policy. So far this year, they account for 93.1% of all taxpayers who have received such refunds, with total refunds amounting to RMB 917.8 billion, nearly 40% of the overall sum. As of November 10, small and micro enterprises and sectors severely affected by the pandemic—such as tourism, civil aviation, railways, and road transport—have collectively received refunds totaling RMB 917.8 billion and RMB 509.2 billion, respectively. Since the third quarter, sales revenue of small and micro enterprises has grown by 0.8% year on year, accelerating by 0.7 percentage points compared with the second quarter; meanwhile, sales revenue in hard-hit industries has increased by 4.3% year on year, up 1.4 percentage points from the second quarter.

— Accelerating the development of new growth drivers. As of November 10, tax refunds totaling RMB 405.6 billion had been issued to high-tech industries and high-tech enterprises, with their sales revenue up 7.2% year on year—3.8 percentage points higher than the average for all enterprises.

Tax incentives boost the recovery of the automotive market.

The automotive industry is a strategic and pillar sector of the national economy, and unlocking its consumption potential is of great significance for boosting overall consumer spending and stabilizing the macroeconomic landscape.

Wang Daoshu stated that, since the beginning of this year, a package of tax and fee preferential policies—combining both continuing measures and temporary ones—has been introduced to support the development of the automotive market. The vehicle acquisition tax exemption and reduction policies have been implemented in tandem, playing a crucial role in boosting the recovery and stabilization of the auto market and stimulating domestic consumption.

On the one hand, the policy exempting new-energy vehicles from the vehicle acquisition tax was extended this September through December 31, 2023, bolstering market confidence. On the other hand, China introduced a temporary measure to reduce the vehicle acquisition tax on certain passenger cars: for vehicles with an engine displacement of 2.0 liters or less and a price not exceeding RMB 300,000, purchased between June 1, 2022, and December 31, 2022, the tax is levied at half the standard rate. “The reduction policy carefully sets the combined criteria of ‘2.0 liters plus RMB 300,000,’ precisely targeting small‑displacement, affordable passenger cars that account for a significant share of the market, thereby effectively and swiftly stimulating automobile consumption,” said Wang Daoshu.

What are the policy effects? Regarding the exemption from vehicle purchase tax for new-energy vehicles, as of November 10, the nationwide cumulative tax exemptions totaled RMB 68.62 billion, up 101.2% year on year; cumulative sales of new-energy vehicles reached 4.48 million units, a year-on-year increase of 78.1%. As for the policy reducing the vehicle purchase tax on certain passenger cars, from June this year to November 10, eligible passenger cars benefited from tax reductions totaling RMB 39.75 billion; nationwide sales of passenger cars with engine displacements of 2.0 liters and below amounted to approximately 6.523 million units, up 20.6% month-on-month compared with January–May prior to the policy’s implementation.

Strongly supporting the direct and swift delivery of tax and fee support policies to beneficiaries.

According to a responsible official from the State Taxation Administration, this year marks the ninth consecutive year that the tax authorities have launched the “Spring Breeze Action” to facilitate tax services. Of the 121 measures under this initiative, 112 have already been implemented, providing strong support for the swift and direct delivery of a series of tax and fee relief policies.

Since the beginning of this year, tax authorities at all levels have, targeting different categories of policy beneficiaries, issued a total of 44 batches of tailored policy notifications, benefiting 475 million taxpayer and payer instances. Following the full implementation of list-based management for tax administrative licensing matters, the number of such matters has been reduced from six to one; the content of certain official documents has been revised and streamlined, with the number of standardized forms decreasing from 15 to 12; and procedures for handling tax-related matters—such as applications for extensions of tax payment deadlines—have been optimized by eliminating steps like legal review, thereby lowering institutional transaction costs for market entities.

In addition, since the Law on Deed Tax and the Law on Urban Maintenance and Construction Tax came into effect on September 1 last year, they have been operating smoothly and steadily for more than a year. According to an official from the State Taxation Administration, after integrating the declaration forms for urban maintenance and construction tax with those for value-added tax and consumption tax, the number of data items taxpayers need to fill out by hand has decreased by 66% compared with before the integration. By consolidating procedures for deed tax, value-added tax, and other related matters involved in second-hand housing transfers, the amount of documentation required has been cut by nearly half, average processing time has been reduced by 60%, and over 90% of transactions are now completed instantly. The legislation on deed tax has elevated the “tax first, certificate later” system to statutory status, continuously enhancing the convenience of tax-related services for real estate registration; in more than 2,800 counties (cities and districts) nationwide, real estate registration and tax services are now provided through a single window.

Deliver tangible results, reduce burdens, and enhance convenience for the broad range of market entities.

— The State Taxation Administration outlines progress in implementing a series of tax and fee support policies.

Since the beginning of this year, a series of new bundled tax and fee support policies, along with a comprehensive package of measures to stabilize the economy and follow-up steps, have been rolled out in phases, providing strong support for easing the burden on market entities and maintaining macroeconomic stability. On the 16th, the State Council Information Office held a regular policy briefing to outline progress in implementing these tax and fee support measures.

Tax and fee concessions totaling over 3.7 trillion yuan have been implemented.

Wang Daoshu, Deputy Director of the State Taxation Administration, stated that since the beginning of this year, the tax authorities have continuously intensified policy publicity, iteratively upgraded information systems, optimized “non-contact” services, and ensured the precise and direct delivery of various tax and fee support measures to taxpayers and payers. As of November 10, the national tax system had collectively processed over RMB 3.7 trillion in new tax and fee reductions, refunds, deferrals, and exemptions.

“Among these measures, the value-added tax credit refunds already credited to taxpayers’ accounts totaled 2.3097 trillion yuan, more than 3.5 times last year’s full-year refund amount; new tax and fee reductions amounted to 789.6 billion yuan; and cumulative deferred tax and fee payments reached 679.7 billion yuan,” said Wang Daoshu.

Large-scale refunds of outstanding input VAT credits are the centerpiece of this year’s new package of tax and fee support measures.

Cai Zili, Chief Auditor of the State Taxation Administration, stated that since April, a total of RMB 2.1864 trillion in value-added tax credit refunds has been credited to taxpayers’ accounts. Adding this to the RMB 123.3 billion refunded under the previous policy during the first quarter of this year, the cumulative amount of VAT credit refunds reached RMB 2.3097 trillion as of November 10.

“Since the beginning of this year, among taxpayers who have received refunds of outstanding input VAT credits, small and micro enterprises account for 93.1% of the total, with a combined refund amount of RMB 917.8 billion, representing 39.7% of the total; medium-sized enterprises received RMB 510.4 billion in refunds, while large enterprises received RMB 881.5 billion, accounting for 22.1% and 38.2% of the total, respectively,” said Cai Zili.

The positive effects of various tax and fee support policies continue to emerge: According to monitoring by the tax authorities, among 100,000 key tax‑paying enterprises nationwide, the tax and fee burden per 100 yuan of operating revenue has decreased by 5.3%. VAT invoice data show that, with the implementation of a series of tax and fee support measures, corporate sales revenue across the country grew 1.1% year on year in the second quarter, reversing the earlier downward trend; since the third quarter, year‑on‑year growth has accelerated to 3.4%, signaling a steady recovery and improving momentum. From January 1 to November 10, investment by enterprises in equipment purchases increased 4.9% year on year, up 1 percentage point from the first half of the year.

Cumulative exemptions from the vehicle purchase tax for new-energy vehicles have exceeded RMB 68.6 billion.

Wang Daoshu stated that, to support the development of the automotive market this year, the CPC Central Committee and the State Council promptly made policy decisions to extend the exemption from vehicle purchase tax for new-energy vehicles and to introduce a temporary reduction in vehicle purchase tax on certain passenger cars. This combination of “continuity plus targeted measures” has enabled the tax‑exemption and tax‑reduction policies to work in tandem, playing a crucial role in reviving the automotive market and boosting domestic consumption.

“From the beginning of this year through November 10, a total of RMB 68.62 billion in vehicle purchase tax has been exempted for new-energy vehicles, up 101.2% year on year,” said Wang Daoshu. The tax authorities have ensured that taxpayers are fully informed about the policy and can benefit from it as soon as possible by disseminating information through their official website, WeChat public account, and the 12366 hotline. At the same time, they have promptly upgraded their information systems to enable automatic eligibility assessment and automatic application of tax benefits, further enhancing the convenience with which taxpayers access these policies.

“Judging from the implementation, the policy exempting new-energy vehicles from taxes has had a clear impact,” said Wang Daoshu. According to data from the unified invoice for motor vehicle sales, as of November 10, cumulative sales of new-energy vehicles reached 4.48 million units, up 78.1% year on year.

In addition, the policy of reducing the vehicle purchase tax on certain passenger cars has been implemented smoothly and has yielded significant results. From June this year to November 10, a total of RMB 39.75 billion in vehicle purchase tax was reduced for eligible passenger cars. According to data from the unified invoice for motor vehicle sales, from June to October this year, sales of passenger cars with engine displacements of 2.0 liters and below reached approximately 6.523 million units, representing a month-on-month increase of 20.6% compared with January–May prior to the policy’s implementation.

Enjoy policy benefits more conveniently and efficiently.

At the press conference, reporters learned that this year marks the ninth consecutive year the tax authorities have launched the “Spring Breeze Action for Convenient Tax Services.” Based on extensive consultations with taxpayers and payers, tax agencies at all levels have formulated and actively implemented 121 measures to streamline tax administration. To date, 112 of these measures have been put into effect, providing strong support for ensuring that a series of tax and fee relief policies are delivered swiftly and directly to those who need them.

Localities are adopting a range of measures to ensure that policy guidance reaches taxpayers directly: In Gaomi City, Shandong Province, a team conducts monthly live‑stream sessions online, focusing on the implementation of tax preferential policies and taxpayer‑related filing procedures; in Xi’an, Shaanxi Province, authorities are systematically reviewing the circumstances of taxpayers within their jurisdiction and rolling out more targeted, tiered services for tax filing and payment, striving to serve as dedicated “service providers” for businesses; meanwhile, the Shenzhen tax authorities, leveraging an integrated smart‑tax system, are tailoring policies with precision based on industry characteristics.

“Tax authorities at all levels have been delivering tailored policy information in phases to different groups of taxpayers and payers, while providing specialized guidance on a case-by-case basis. Since the beginning of this year, a total of 44 rounds of targeted policy outreach have been carried out, benefiting 475 million taxpayer‑payer instances,” said Shen Xinguo, Director-General of the Taxpayer Services Department of the State Taxation Administration.

Regarding the reduction of tax compliance costs, Shen Xinguo stated that a comprehensive list-based management system for tax administrative licensing matters has been implemented, reducing the number of such matters from the original six to one. In addition, certain document contents have been adjusted and streamlined, decreasing the number of standardized tax administrative licensing forms from 15 to 12. Procedures for handling tax-related matters, such as taxpayers’ applications for extensions to pay taxes, have also been optimized by eliminating steps like legal review, thereby lowering institutional transaction costs for market entities and boosting market vitality.

Litigation and Arbitration

LITIGATION & ARBITRATION

Notice from the Resource Development Department of the Ministry of Culture and Tourism on the Issuance of the “Guidelines for Epidemic Prevention and Control Measures at Tourist Attractions” (Revised November 2022)

Guidance on Epidemic Prevention and Control Measures for Tourist Attractions (Revised November 2022)

To thoroughly implement the important instructions and directives of General Secretary Xi Jinping, carry out the decisions and arrangements of the CPC Central Committee and the State Council, steadfastly uphold the dynamic zero‑COVID policy, and in accordance with the spirit of the Comprehensive Group of the State Council Joint Prevention and Control Mechanism’s “Notice on Further Optimizing COVID‑19 Prevention and Control Measures and Carrying Out Prevention and Control Work in a Scientific and Precise Manner” (Joint Prevention and Control Mechanism Comprehensive Document [2022] No. 101), the “Notice on Strengthening Key COVID‑19 Prevention and Control Measures, Including ‘Arrival Testing’” (National Health Commission Telegram [2022] No. 464), the “Notice on Issuing the Ninth Edition of the COVID‑19 Prevention and Control Plan” (Joint Prevention and Control Mechanism Comprehensive Document [2022] No. 71), and the Ministry of Culture and Tourism’s “Notice on Further Optimizing COVID‑19 Prevention and Control Measures and Carrying Out Prevention and Control Work in the Cultural and Tourism Sectors in a Scientific and Precise Manner” (Ministry of Culture and Tourism Telegram [2022] No. 279), this guideline has been revised—building upon the “Guidance on COVID‑19 Prevention and Control Measures for the Reopening of Tourist Attractions (October 2021 Revision)—to provide direction to tourist attractions nationwide in optimizing and refining their prevention and control measures in response to evolving circumstances, thereby further enhancing the scientific rigor and precision of epidemic prevention and control at these sites.
I. General Requirements for the Opening of Scenic Areas
(1) Uphold routine prevention and control measures. All localities must resolutely overcome complacency, wishful thinking, and a sense of laxity, and rigorously implement and refine routine epidemic prevention and control efforts at tourist attractions. Further improve the emergency response mechanism for epidemic prevention and control, designate the principal person in charge of each tourist attraction as the primary responsible party, and ensure that prevention and control responsibilities are assigned to specific departments and individuals, thereby guaranteeing the effective implementation of all measures.
(2) Uphold science-based prevention and control. In accordance with the requirements of preventing imported cases and guarding against domestic resurgences, conduct a comprehensive assessment of the maximum visitor capacity and reception capabilities of tourist attractions. Where local COVID‑19 risk levels and emergency response tiers are adjusted, management shall be carried out in a tiered manner as prescribed by the local Party committees and governments, with prevention and control strategies and measures dynamically refined on a scientific basis. Tourist attractions located in high-risk areas must immediately suspend operations if such suspension is warranted. The upper limit for visitor admissions at tourist sites shall be determined by the Party committees and governments of each province, autonomous region, and municipality directly under the central government, based on the local epidemic situation, and no one-size-fits-all approach shall be adopted.
(3) Uphold precise prevention and control. Strengthen measures in key areas and critical links, and address existing gaps and vulnerabilities. Continue to proactively educate and guide the public on routine epidemic prevention, reservation-based tourism, and frugal practices, thereby enhancing public awareness of pandemic control and fostering good habits such as civilized travel, advance reservations, and food conservation.
II. Strengthen Health Monitoring and Management of Scenic Area Employees
(4) Strengthen employee health monitoring and reporting. Ensure that all eligible staff members are vaccinated, while continuing to observe personal protective measures even after vaccination. Conduct nucleic acid testing in accordance with local epidemic prevention and control requirements. Establish a health-monitoring system for staff, recording their health status daily, and encourage prompt medical attention upon the onset of any suspicious symptoms. Show care and concern for employees’ physical and mental well-being, and provide timely support and counseling.
(5) Strengthen epidemic prevention and control training. Enhance training for employees on infectious disease prevention, emergency response procedures, and other relevant topics, ensuring that all staff possess the necessary knowledge and skills before taking up their duties, and improving their awareness of and ability to handle abnormal situations.
(6) Strictly adhere to workplace protocols. In accordance with local epidemic prevention and control requirements, ensure proper personal protective measures and minimize gatherings. During working hours, all staff must wear medical surgical masks or higher‑level masks at all times.
III. Strengthen Public Health and Venue-Based Prevention and Control Measures in Scenic Areas
(7) Strengthen cleaning and disinfection. Closed buildings, public areas, sanitary facilities, amusement equipment, dining venues, and other facilities within the scenic area should be promptly ventilated, cleaned, and disinfected. Handwashing stations and shower facilities in the area must remain in proper working order. Sufficient hand soap and no-rinse disinfectant should be provided. Thoroughly clean and disinfect public restrooms, trash bins, and other shared amenities, as well as high-touch surfaces such as door handles and elevator buttons. Maintain overall cleanliness and hygiene throughout the scenic area; dispose of waste daily, and ensure that collection and transportation are conducted using sealed vehicles.

1. Strengthen management of key operational areas. Each scenic area should, based on its specific circumstances and in alignment with regional functions and project types, enhance targeted prevention and control measures at critical venues such as visitor centers and performance halls, as well as at key facilities including tour boats, transportation vehicles, cable cars, and amusement rides. For projects and locations prone to crowd gatherings, local hygiene management and preventive measures must be further reinforced.
   (9) Ensure robust safety and security measures. Stockpile epidemic‑prevention supplies such as masks, hand sanitizers, and disinfectants. Provide adequate medical services; facilities that lack the necessary conditions should establish partnerships with medical institutions. Safeguard equipment by conducting thorough safety inspections of transportation systems and facilities, ensuring compliance with operational standards and safety management requirements. Prior to major holidays and large‑scale events, organize routine patrols to promptly identify gaps in prevention and control and potential risk points, and ensure that corrective actions are fully implemented.
   IV. Strengthening Management of Scenic Area Visits
   (10) Strengthen visitor flow management. Scenic areas shall scientifically and reasonably set maximum visitor capacity limits and strictly enforce the ticket reservation system. Performance venues within scenic areas should implement dedicated reservation-based management, with appropriately determined maximum audience capacities and prescribed spacing between spectators during performances. Employ effective measures such as smart guidance to rationally disperse and direct visitor flows, and ensure proactive control at key entry points to manage visitor numbers.
   (11) Implement real-name registration. Ticket purchases shall be subject to a real-name system, ensuring traceability and accountability. Scenic areas are encouraged to leverage big data and smart technologies to conduct dynamic monitoring of visitor information.
   (12) Strengthen entry management. All visitors entering the scenic area must undergo temperature screening and have their health codes and negative nucleic acid test results within 72 hours verified. Only those with normal temperatures, valid health codes, and negative nucleic acid test results will be permitted to enter. Inspection areas should be rationally configured based on actual conditions, with enhanced crowd‑control measures in place to prevent congestion of people and vehicles. Negative nucleic acid test certificates may be waived for special groups, such as children under three years of age.
   (13) Strengthen visitor protection. Encourage scenic areas to adopt measures such as online ticketing, QR‑code verification, and scan‑to‑pay to effectively reduce person-to-person contact. In enclosed spaces and crowded outdoor areas, visitors are required to wear disposable medical masks, medical surgical masks, or masks of an equal or higher level of protection. Maintain appropriate social distancing in transportation hubs, ticketing areas, sightseeing sites, rest areas, dining venues, and other public spaces, and strictly enforce the “one‑meter line” guideline.
   (14) Prevent crowds from gathering. Visitors should be admitted in staggered time slots and with appropriate spacing. Management personnel must be stationed at景区 entrances and exits, key attractions, narrow passageways, and other areas prone to congestion to strengthen visitor flow control. Optimize tour routes to avoid sudden bottlenecks.
   (15) Optimize the visitor experience. Food and beverage service providers should strengthen the cleaning and disinfection of reusable tableware or switch to single-use, contamination-free tableware, combat food waste, reduce the generation of various types of waste, and thereby enhance the overall visitor environment.
   (16) Strengthen on-site patrols. Staff should be assigned to intensify inspections within the scenic area, promptly advising against behaviors that fail to meet epidemic prevention and control requirements or constitute uncivilized tourism, thereby effectively maintaining orderly visitor management. During performances, designated personnel should be stationed in the venue to remind audience members, service staff, and performers to wear masks properly.
   (17) Strengthen public awareness of prevention and control measures. Through official websites, WeChat official accounts, visitor service centers, informational signage, public address systems, electronic display screens, and other channels, promptly disseminate the scenic area’s epidemic prevention and control protocols and relevant knowledge. Intensify health education for visitors during the winter and spring seasons, helping them understand key protective measures, and encouraging them to heighten their awareness of preventive practices and cooperate with ongoing prevention and control efforts.
   V. Strengthening Organizational Support and Emergency Response
   (18) Implement principal responsibility. Tourist attractions must strengthen organizational leadership and fulfill their primary responsibility for epidemic prevention and control. Based on local conditions, they should further refine requirements such as verifying negative nucleic acid test results, rigorously carry out all epidemic prevention measures, and ensure that visitors can tour safely and in an orderly manner.
   (19) Strengthen communication and coordination. Enhance collaboration with local health, disease prevention, and cultural tourism authorities, and promptly report any unusual incidents.
   (20) Ensure effective response and management. Emergency response plans should be developed, and designated emergency response zones established. Scenic areas that identify employees with suspected symptoms or conofficeed cases must immediately implement isolation measures, strengthen contact tracing, and carry out disinfection of affected sites, while promptly coordinating with local Party committees and governments to ensure timely and appropriate response and management.

Reply of the Supreme People’s Procuratorate on the Question of How to Commence the Statute of Limitations for Review and Prosecution in Cases Involving the Same Suspect, Who Is Allegedly Committed Both Official Crimes and Other Crimes

Supreme People’s Procuratorate

Supreme People’s Procuratorate of the People’s Republic of China

Announcement

The “Reply of the Supreme People’s Procuratorate on the Question of How to Calculate the Time Limit for Review and Prosecution in Cases Involving the Same Suspect Who Is Allegedly Committed Both Official Crimes and Other Crimes, Which Were Accepted Successively” was adopted at the 108th Meeting of the 13th Procuratorial Committee of the Supreme People’s Procuratorate on November 9, 2022. It is hereby promulgated and shall enter into force as of November 18, 2022.

Supreme People’s Procuratorate

November 15, 2022

Reply of the Supreme People’s Procuratorate on the Question of How to Commence the Statute of Limitations for Review and Prosecution in Cases Involving the Same Suspect, Who Is Allegedly Committed Both Official Crimes and Other Crimes

(Adopted at the 108th Meeting of the 13th Procuratorial Committee of the Supreme People’s Procuratorate on November 9, 2022)

Jiangsu Provincial People’s Procuratorate:

Your court’s “Request for Instructions on How to Calculate the Time Limit for Review and Prosecution in Cases Involving Mutual Jurisdiction” (Sujian Fasanbu Zi [2022] No. 2) has been duly received. After deliberation, the reply is as follows:

Where, in a case involving the same suspect who is alleged to have committed both official misconduct and other crimes, the supervisory and investigative authorities submit the case to the People’s Procuratorate for review and prosecution at different times, and consolidation of the cases is required, the time limit for review and prosecution shall be recalculated from the date of acceptance of the consolidated case.

This is in reply.
 

Supreme People’s Procuratorate
November 15, 2022

Provisions of the Supreme People’s Court on Several Issues Concerning Jurisdiction in Foreign-related Civil and Commercial Cases

Supreme People’s Court

The Supreme People’s Court has issued the “Provisions on Several Issues Concerning Jurisdiction in Foreign-related Civil and Commercial Cases.”

On November 15, the Supreme People’s Court issued the “Provisions of the Supreme People’s Court on Several Issues Concerning Jurisdiction in Foreign-related Civil and Commercial Cases,” which will take effect on January 1, 2023.
　　The Provisions of the Supreme People’s Court on Several Issues Concerning Jurisdiction in Foreign-related Civil and Commercial Cases were adopted at the 1872nd Meeting of the Judicial Committee of the Supreme People’s Court on August 16, 2022. They are hereby promulgated and shall enter into force as of January 1, 2023.
 

　　Supreme People’s Court
　　November 14, 2022
 

　　Interpretation of the Supreme People’s Court No. 18 [2022]

　　 Provisions of the Supreme People’s Court on Several Issues Concerning Jurisdiction in Foreign-related Civil and Commercial Cases

　　(Adopted at the 1872nd Meeting of the Judicial Committee of the Supreme People’s Court on August 16, 2022, and effective as of January 1, 2023.)
　　In order to safeguard, in accordance with the law, the legitimate rights and interests of both Chinese and foreign parties, facilitate litigation for the parties, and further enhance the quality and efficiency of civil and commercial adjudication involving foreign elements, these Provisions are hereby formulated pursuant to the provisions of the Civil Procedure Law of the People’s Republic of China and in light of judicial practice.
　　Article 1. Basic People’s Courts shall have jurisdiction over first-instance foreign-related civil and commercial cases, unless otherwise provided by law or judicial interpretation.
　　Article 2. Intermediate People’s Courts shall have jurisdiction over the following first-instance foreign-related civil and commercial cases:
　　(1) Foreign-related civil and commercial cases involving substantial amounts in dispute.
　　The intermediate people’s courts within the jurisdictions of Beijing, Tianjin, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong, and Chongqing have jurisdiction over foreign-related civil and commercial cases where the amount in controversy is RMB 40 million or more (inclusive).
　　The intermediate people’s courts within the jurisdictions of Hebei, Shanxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Anhui, Jiangxi, Henan, Hubei, Hunan, Guangxi, Hainan, Sichuan, Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia, and Xinjiang; the military courts directly under the various theater commands of the People’s Liberation Army; and the intermediate people’s courts under the Production and Construction Corps Branch of the Higher People’s Court of the Xinjiang Uygur Autonomous Region—each shall have jurisdiction over foreign-related civil and commercial cases where the amount in dispute is RMB 20 million or more (inclusive).
　　(2) Foreign-related civil and commercial cases that are complex in nature or involve a large number of parties on one side.
　 (3) Other foreign-related civil and commercial cases that have a significant impact within this jurisdiction.
　　Where laws or judicial interpretations provide otherwise regarding the jurisdiction of intermediate people’s courts over first-instance foreign-related civil and commercial cases, such cases shall be handled in accordance with the relevant provisions.
　　Article 3. The Higher People’s Courts shall have jurisdiction over first-instance foreign-related civil and commercial cases where the amount in dispute is RMB 5 billion or more (inclusive), or which otherwise have a significant impact within their respective jurisdictions.
　　Article 4: The Higher People’s Courts, in light of the actual conditions within their respective jurisdictions and upon finding it genuinely necessary, may, with the approval of the Supreme People’s Court, designate one or several Basic People’s Courts or Intermediate People’s Courts to exercise cross‑regional centralized jurisdiction over first-instance foreign-related civil and commercial cases falling under Article 1 and Article 2 of these Provisions, respectively.
　　Where, in accordance with the preceding paragraph, centralized jurisdiction is exercised across administrative regions, the higher people’s court shall promptly make public to the general public the respective jurisdictional areas of the relevant primary people’s courts and intermediate people’s courts.
　　Article 5: Foreign-related civil and commercial cases shall be tried by a specialized tribunal or a collegial panel.
　　Article 6: This Regulation shall not apply to foreign-related maritime and shipping dispute cases, foreign-related intellectual property dispute cases, foreign-related ecological and environmental damage compensation dispute cases, or foreign-related environmental civil public interest litigation cases.
　　Article 7: Civil and commercial cases involving the Hong Kong and Macao Special Administrative Regions and the Taiwan region shall be governed by these Provisions by analogy.
　　Article 8 This Regulation shall enter into force on January 1, 2023. Cases filed after the entry into force of this Regulation shall be governed by it.
　　Article 9: In the event of any inconsistency between this Court’s previously issued judicial interpretations and these Provisions, these Provisions shall prevail.