JC Master Legal News Issue 983

Key Takeaways for This Issue
The Judicial Interpretation of the Anti-Unfair Competition Law (Draft for Public Comment) is now open to public consultation.
　To ensure the proper adjudication of unfair competition disputes and to uphold a fair competitive order, the Supreme People’s Court has drafted the “Interpretation of the Supreme People’s Court on Several Issues Concerning the Application of the Anti-Unfair Competition Law of the People’s Republic of China (Draft for Public Comment).” The draft is now being made public for public consultation. All sectors of society are invited to submit their comments and suggestions by letter or email. The deadline for submitting feedback is September 19, 2021.
China Telecom has been listed on the Shanghai Stock Exchange, bringing all three major telecom operators together on the A-share market.
With China Telecom and China Mobile successively returning to the A-share market, China’s three major telecom operators are set to converge on the A‑share market. In this regard, many brokerage offices believe that this move will enable A‑share investors to fully benefit from the robust and steady growth of the telecommunications sector. At the same time, by leveraging the A‑share market, the three operators’ spillover and catalytic effects on the broader communications industry are expected to become even more pronounced.
Sichuan: The “delegation, regulation, and service” reform safeguards market entities.
　Market entities are the driving force of the economy; safeguarding them means safeguarding social productivity. Sichuan’s tax authorities have consistently focused on providing convenient services, steadily advancing the “delegation, regulation, and service” reform in the tax sector.

The extradition proceedings in the Meng Wanzhou case have concluded; it will still take time to announce the verdict.
 On the afternoon of August 18, Canadian local time, the extradition proceedings in the Meng Wanzhou case concluded at the Supreme Court of British Columbia. The judge did not announce a ruling immediately. Observers expect that the decision may be handed down after Canada’s federal election this year—likely in late October or later.

Finance & Capital Markets
The Judicial Interpretation of the Anti-Unfair Competition Law (Draft for Public Comment) is now open to public consultation.
Regarding the “Interpretation of the Supreme People’s Court on Several Issues Concerning the Application of the Anti-Unfair Competition Law of the People’s Republic of China (Draft for Comments)”
Notice on Soliciting Public Opinions

To ensure the proper adjudication of disputes involving unfair competition and to uphold a fair competitive order, the Supreme People’s Court has drafted the “Interpretation of the Supreme People’s Court on Several Issues Concerning the Application of the Anti-Unfair Competition Law of the People’s Republic of China (Draft for Public Comment).” The draft is now being made public for public consultation. All sectors of society are invited to submit their comments and suggestions by mail or email. The deadline for submitting feedback is September 19, 2021.

Promote the full integration of the bond market and refine the credit risk pricing framework.
Recently, the Guiding Opinions on Promoting High-Quality Development of the Corporate Credit Bond Market, jointly issued by the People’s Bank of China and five other departments, have been widely regarded by the market as a landmark industry‑wide regulatory framework comparable to the new asset‑management rules. The document outlines directions and pathways for advancing the high‑quality development of the corporate credit bond market across ten key areas, including aligning issuance and trading‑related regulations, strengthening oversight of credit rating agencies, improving pricing mechanisms, and enhancing regulatory coordination and unified enforcement.
Unlike the new regulations on asset management, some of the reform measures outlined in the opinions are already being implemented. For example, to gradually harmonize the rules and standards across the corporate credit bond market and address the long-standing issues of fragmented development between the two bond markets and siloed, “railway‑police‑style” regulation, the People’s Bank of China, the National Development and Reform Commission, the China Securities Regulatory Commission, and other bond‑market regulators have introduced a series of reforms in recent years—covering areas such as information disclosure and investor protection—to promote the convergence of rules governing various types of corporate credit bonds. Since last year, efforts to overhaul and standardize the credit rating industry have also gained momentum, aiming to ensure that credit rating agencies effectively fulfill their role as gatekeepers of the bond market.
Since the establishment of the Financial Stability and Development Committee, China’s bond market has accelerated its institutional reforms, focusing on such areas as unifying rules for corporate credit bonds, refining information disclosure requirements, strengthening the due‑diligence obligations of intermediary institutions, enhancing regulatory oversight and ensuring consistent enforcement, and establishing a framework for handling defaults. Although some observers have argued that this latest set of guidelines signals the advent of a fully unified corporate credit bond market, in reality, the drive toward market integration has not only remained steady in recent years but has also gained momentum.
The reform objectives in the aforementioned areas were reiterated in these guidelines, underscoring the regulatory authorities’ determination to advance the full integration of the bond market. However, beyond promoting the gradual harmonization of rules across the corporate credit‑bond market, another key development goal outlined in the guidelines—too significant to overlook—is to refine the pricing framework and foster a credit‑risk pricing system that fully reflects credit‑rating differentials.
Since 2014, when the “Chaori Bond” became the first bond default in China’s bond market, the market has been moving away from implicit guarantees for more than seven years. Over the past seven years, the bond market has weathered a series of challenges, including disputes over the efficacy of bondholders’ meetings, doubts about the due diligence and accountability of intermediaries, waves of defaults among private‑sector issuers, and instances of some issuers deliberately evading debt repayment. As a result, bond risk pricing has, through rigorous investor education grounded in real‑money outcomes, begun to develop a rudimentary credit‑rating hierarchy. Nevertheless, it remains undeniable that today’s credit stratification is still relatively crude, and the “implicit guarantee” mindset—particularly among certain issuer segments—remains widespread. This phenomenon is closely linked to unclear delineations of responsibility between the government and enterprises, as well as inappropriate interference in bond‑issuance pricing, which prevents the establishment of a robust credit‑risk pricing framework and hinders the price mechanism from fulfilling its proper role in efficiently allocating financial resources. Such conditions not only create a vicious cycle in which “bad money drives out good,” but also undermine and deprive investors of the returns they are entitled to.
The opinions emphasize the need to “clarify the boundaries of responsibility between the government and enterprises” and to “strictly prohibit any improper interference by government departments or issuers in the pricing of bond offerings,” thereby addressing the risks associated with local governments’ implicit debt and the unchecked, snowballing accumulation of liabilities among state-owned enterprises. It is foreseeable that, in the years ahead, additional regulatory measures will be introduced to govern borrowing practices by both the government and SOEs. Only by enforcing rigorous discipline in bond issuance, adopting a zero‑tolerance stance, and safeguarding market fairness and order can we effectively delineate credit distinctions among various entities—such as the government, policy‑oriented financial institutions, state‑owned enterprises, and local government financing platforms—and foster a risk‑pricing framework that fully reflects credit stratification. This, in turn, lays the foundation for the bond market to truly uphold the principle of “seller accountability and buyer responsibility.”
Market performance in Shanghai and Shenzhen diverged, with the salt‑lake lithium extraction sector once again gaining strength.
On the morning of August 19, A-share markets in Shanghai and Shenzhen showed divergent trends: the Shanghai Composite opened lower and continued to decline, while the Shenzhen Component Index and the ChiNext Index both turned positive amid volatile trading. Data showed that as of midday, the Shanghai Composite fell 0.71% to 3,460.38 points; the Shenzhen Component Index rose 0.07% to 14,463.64 points; and the ChiNext Index gained 0.72% to 3,271.79 points.
From an industry perspective, among the 28 SW Level‑1 sectors, diversified, telecommunications, and defense‑related industries posted the strongest gains, while non‑bank financials, banking, and steel led the decliners.
Among the sector indices, lithium mining, salt‑lake lithium extraction, and photoresist led the gains, while chemical fibers, stock‑trading software, and chemical raw materials posted the biggest losses.
Northeast Securities believes that, following the main-market rally, the market typically exhibits a pattern of style rotation over the medium to short term. This is driven by the pace of capital reallocation, with rotation primarily shifting between lingering themes in established sectors and emerging opportunities in nascent areas. From an investment perspective, we recommend continuing to seek opportunities across both old and new themes: for the former, focus on catch-up gains in the upstream segments of the new-energy sector, hydrogen energy, cyclical industries, and defense; for the latter, look to policy‑driven sectors such as sports, tourism, and both traditional and new infrastructure.
Six departments: Adhering to a “zero-tolerance” stance, they will rigorously investigate and prosecute all forms of debt evasion.
To improve the legal framework of the bond market and establish a multi-tiered bond market system that is well‑regulated, orderly competitive, and transparent and open, the People’s Bank of China, the National Development and Reform Commission, the Ministry of Finance, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange recently jointly issued the “Guiding Opinions on Promoting the High‑Quality Reform and Opening‑Up of the Corporate Credit Bond Market.”
In advancing the improvement of the bond market’s legal framework and strengthening its legal foundation, the Opinions call for, in accordance with the principle of converging regulatory categories, gradually harmonizing the rules and implementation standards governing the issuance and trading of corporate credit bonds, information disclosure, credit rating, investor suitability, risk management, and other related areas. It also emphasizes bolstering market oversight, refining a unified enforcement mechanism, reinforcing behavioral supervision of market participants, and rigorously cracking down on all illegal and non-compliant activities that harm investor interests or undermine market order.
With regard to the standardization of the credit rating industry, the Opinions call for strengthened regulatory oversight of practices such as delayed tracking ratings, large‑range rating adjustments, and upward rating upgrades following a change of rating agency, so as to enhance rating agencies’ risk‑early‑warning capabilities. For violations involving rating competition or the buying and selling of ratings, penalties will be increased, and market exit measures will be enforced more rigorously.
The Opinions call for clarifying the boundaries of responsibility between the government and enterprises, and for distinguishing the credit limits of various entities, including the government, policy-based financial institutions, state-owned enterprises, and local government financing platforms. They also urge accelerating the reform of local government financing platforms to prevent the transfer of related implicit debt risks. The government shall not finance through corporate borrowing or provide any form of guarantee for corporate bond issuance, nor shall it assume repayment of corporate debts or act as a fiscal backstop. Instead, the principle of “borrower‑repayer, self‑bearing risk” must be officely upheld to effectively guard against the risks associated with local governments’ implicit debt.
Standardize the pricing mechanism for corporate credit bond issuances to ensure that prices are determined in an open, fair, and impartial manner. Strictly prohibit any undue interference by government authorities or issuers in the pricing process, and strictly forbid underwriting institutions from artificially suppressing issuance yields or distorting the market-based interest rate formation mechanism through practices such as self‑underwriting and self‑purchasing, or by channeling raised funds back into deposits.
The Opinions make clear that proactively preventing and defusing risks in the bond market should be given even greater priority, with three lines of defense—market access, early intervention, and orderly resolution and exit—being officely established, and a robust risk monitoring and early-warning mechanism being put in place. Furthermore, the market‑based, rule‑of‑law‑driven mechanisms for handling bond defaults will be refined to enhance the efficiency of market‑driven deleveraging.
Strengthen issuers’ market awareness and rule-of-law consciousness, adopt a zero-tolerance stance, and safeguard market fairness and order. In accordance with the law, rigorously investigate and prosecute all types of illegal and non-compliant conduct, including malicious asset transfers and misappropriation of proceeds from issuance; impose severe penalties on debt‑evading behavior; and prohibit enterprises from using debt restructuring or bankruptcy as an opportunity to shed liabilities or offload burdens. Reinforce local authorities’ responsibility for risk resolution, urge all market participants to strictly fulfill their principal responsibilities, and foster a sound local financial ecosystem and credit environment.

The State-owned Assets Supervision and Administration Commission (SASAC) stated that it will further strengthen oversight of the financial operations of central enterprises and strictly cap the scale of perpetual bonds issued by these companies.
The meeting noted that, since the beginning of this year, central enterprises have maintained a steady and improving momentum from January to July, with net profits reaching RMB 1.2 trillion, up 112.4% year on year and averaging a 21.3% increase over the past two years. Operating revenue totaled RMB 20 trillion, up 27.4% year on year and averaging an 8.8% rise over the past two years. Key industry performance indicators have shown steady improvement, corporate operational quality has continued to enhance, and metrics such as R&D expenditure intensity, revenue profit margin, and total‑employee labor productivity have all registered sustained growth. Meanwhile, the asset‑liability ratio has declined year on year, and tax contributions have steadily increased, making significant contributions to the country’s sustained and sound economic development and laying a solid foundation for achieving the annual targets.
The meeting emphasized that, in accordance with the arrangements and requirements set forth at the Central Politburo meeting, we must demonstrate even greater ideological resolve and adopt precise, pragmatic measures to ensure solid progress in all aspects of state‑owned asset and SOE work in the next phase. We must coordinate epidemic prevention and control with economic operations across central SOEs, promote quality improvement, efficiency gains, and upgrading among these enterprises, and strengthen analysis and assessment of both domestic and international economic conditions as well as trends in key industries. In line with the need for cross‑cycle adjustments, we should plan and manage business development in a coordinated manner, prevent sharp fluctuations, and ensure the achievement of the “two profits and four ratios” targets. We must elevate scientific and technological innovation to a more prominent position, encouraging central SOEs to proactively integrate into the national innovation system for basic research and applied basic research. Focusing on critical core technologies in areas such as industrial mother machines, high‑end chips, new materials, and new‑energy vehicles, we will intensify efforts to master key technologies, strive to establish original technology “source hubs,” assume responsibility as leaders of industrial chains, launch special campaigns to strengthen and complete supply chains, enhance upstream–downstream collaboration, and actively support the growth of small, medium, and micro enterprises. Taking the three‑year action plan for SOE reform as a crucial lever, we will guide and drive central SOEs to make decisive breakthroughs in advancing the three major institutional reforms, deepening pilot programs for state‑capital investment and operating companies, and implementing term‑based management and contractual governance for managerial personnel, ensuring that by year’s end 70 percent of the three‑year tasks are completed. We will also vigorously promote the optimization and structural adjustment of state‑capital deployment, focusing on strategic emerging industries and establishing new central enterprise groups where appropriate. Furthermore, we will coordinate and orderly advance efforts to peak carbon emissions and achieve carbon neutrality, clearly defining pathways and approaches for central SOEs to reach these goals, accelerating the development of energy‑saving and environmental‑protection industries, promoting the application of pollution‑reduction and carbon‑cutting technologies, and deepening green development. Finally, we must uphold Party leadership and strengthen Party building, carry out Party history study and education in earnest, conduct follow‑up reviews on the implementation of the spirit of the National Conference on Party Building in State‑Owned Enterprises, consolidate and deepen the outcomes of such efforts, and provide a fundamental guarantee for strengthening, improving, and expanding state‑owned enterprises.
The meeting called for coordinating development with security, strengthening bottom-line thinking, and guiding central enterprises to establish and improve long-term mechanisms for preventing and addressing risks across production, operations, and other areas, ensuring that risks are identified early, flagged promptly, and addressed without delay. The State-owned Assets Supervision and Administration Commission will further tighten oversight of the financial activities of central enterprises, strictly cap the scale of perpetual bonds, enhance management of financing guarantees, and enforce strict financial discipline. It will guide enterprises to adhere to market‑based and law‑based principles in managing and mitigating financial risks, resolutely safeguarding against major risks and ensuring stable corporate operations. Furthermore, it is imperative to implement the work requirements of the Financial Stability and Development Committee of the State Council, strengthen guidance on local state‑owned enterprises’ debt‑risk prevention and control, and strive to uphold the sound reputation of state‑owned enterprises and maintain financial market stability.

Commercial & Corporate
China Telecom has been listed on the Shanghai Stock Exchange, bringing all three major telecom operators together on the A-share market.
With China Telecom and China Mobile successively returning to the A-share market, China’s three major telecom operators are set to converge on the A‑share exchange. In this regard, many brokerage offices believe that this move will enable A‑share investors to fully benefit from the telecom sector’s rapid and steady growth. At the same time, by leveraging the A‑share market, the three operators’ spillover and catalytic effects on the broader communications industry are expected to become even more pronounced.
Zhongtai Securities stated that the “convergence” of the three major telecom operators on the A-share market will strengthen market‑based incentive and accountability mechanisms, prompting them to further integrate resources across cloud networks, edge computing, customer bases, and talent. By attracting strategic investors, they will build an open ecosystem to support their transformation and development.
From an investment‑strategy perspective, the telecommunications sector—led by 5G—is one of the tech subsectors that has posted relatively modest year‑to‑date gains and offers attractive valuation multiples. Consequently, amid a broader market pullback, it stands to benefit from renewed interest from active investors.
Su Hui, a strategy analyst at Guotai Junan Securities, stated that once assets with “wide moats” and “strong growth momentum” have been fully priced into the market, the next major investment theme will be identifying securities that offer attractive valuation multiples and benefit from a cyclical turnaround in sector conditions. Specifically, the new infrastructure sector will remain a key investment focus for the foreseeable future.
Guotai Junan Securities believes that, compared with the 2020 new‑infrastructure rally, the current market cycle is driven by fiscal stimulus prompting an expansion of the new‑infrastructure sector, and therefore expects it to last longer. In terms of sector selection, investors are advised to focus on four key themes: smart new infrastructure—led by 5G and the industrial internet; transportation‑related new infrastructure—represented by rail transit; energy‑related new infrastructure—centered on photovoltaics; and livelihood‑oriented new infrastructure—such as steel‑structure venues.
Chen Guo, chief strategy analyst at Anxin Securities, believes that against the backdrop of economic transformation, the traditional “railways, highways, and infrastructure” model now plays a rather limited role in driving growth. Meanwhile, new infrastructure—designed to support economic upgrading and the rapid development of strategic emerging industries—is receiving increasing policy support. He advises investors to focus on five key areas of new infrastructure: new‑energy infrastructure, domestically developed software and the industrial internet, smart cities and intelligent connected vehicles, new‑infrastructure for healthcare, and educational informatization.
Qin Peijing, Chief Strategy Analyst at CITIC Securities, likewise advises investors to shift from high‑valued growth sectors to relatively undervalued ones—such as the defense industry, which is expected to be boosted by interim report earnings, and 5G, telecom equipment, and auto parts, whose fundamentals are poised for a turning point. At the same time, he recommends positioning on the left side of the value spectrum, focusing on high‑prosperity consumer and healthcare sectors.
The Cyberspace Administration of China and four other departments have issued the “Several Provisions on the Security Management of Automotive Data (Trial).”
Recently, the Cyberspace Administration of China, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, and the Ministry of Transport jointly issued the “Several Provisions on the Security Management of Automotive Data (Trial)” (hereinafter referred to as the “Provisions”), which will take effect on October 1, 2021. An official from the Cyberspace Administration of China stated that the issuance of these Provisions aims to regulate automotive data processing activities, protect the legitimate rights and interests of individuals and organizations, safeguard national security and public interests, and promote the rational development and utilization of automotive data.
As next-generation information technologies increasingly converge with the automotive industry, and as the intelligent vehicle sector and connected‑vehicle technologies rapidly advance, artificial intelligence–based technologies—particularly automated and assisted driving—are becoming ever more widespread, while vehicles’ data‑processing capabilities continue to grow. Consequently, the associated data‑security challenges and potential risks are becoming increasingly pronounced. In this context, the enactment of targeted regulations in the field of automotive data security—clarifying the responsibilities and obligations of data processors and standardizing data‑handling practices—is essential both for preventing and mitigating data‑security risks and for ensuring the lawful, reasonable, and effective use of automotive data, as well as for safeguarding national security interests and protecting individuals’ legitimate rights and freedoms.
The Regulations advocate that automotive data processors, in carrying out their data-processing activities, adhere to principles such as “in-vehicle processing,” “default non-collection,” “applicability within an appropriate level of precision,” and “anonymization,” thereby curbing the indiscriminate collection and unlawful misuse of automotive data.
The Regulations stipulate that automotive data processors shall fulfill their obligations to protect personal information and ensure the security and lawful rights and interests of individuals. When carrying out personal information processing activities, automotive data processors must conspicuously inform individuals of relevant information and obtain their consent, or otherwise comply with circumstances prescribed by laws and administrative regulations. For the processing of sensitive personal information, automotive data processors must also obtain separate consent from the individual and meet specific requirements, such as limiting the purpose of processing, clearly indicating the status of data collection, and ceasing collection, or else satisfy other conditions set forth in laws, administrative regulations, and mandatory national standards. Automotive data processors may collect biometric data—including fingerprints, voiceprints, facial features, and heart rhythms—only when such collection serves the purpose of enhancing driving safety and is demonstrably necessary.
The Regulations emphasize that automotive data processors, when carrying out critical data processing activities, must comply with the legal requirement to store such data within China and strengthen safeguards for the security of critical data; they must also implement the requirements of the risk assessment reporting system to proactively mitigate data security risks, and adhere to the annual reporting regime by submitting timely and proactive reports on their annual automotive data security management practices. Where, due to business needs, it is indeed necessary to transfer critical data abroad, automotive data processors shall comply with the requirements of the cross-border data transfer security assessment system, refrain from transferring critical data overseas in violation of the conclusions of the assessment, and include relevant information in their annual reports.
The Regulations stipulate that relevant state departments shall, in accordance with their respective responsibilities, carry out the management and safeguarding of automotive data security, including conducting data security assessments, performing spot checks and verifications on cross-border data transfers, and building network platforms for intelligent (connected) vehicles. With respect to automotive data processors that violate these Regulations, the competent authorities shall impose penalties in accordance with the provisions of laws and administrative regulations such as the Cybersecurity Law of the People’s Republic of China and the Data Security Law of the People’s Republic of China.
An official from the Cyberspace Administration of China stated that automotive data security management requires the joint participation of multiple stakeholders, including government authorities, automotive data processors, and individuals. Relevant departments at or above the provincial level—such as those responsible for cyberspace affairs, development and reform, industry and information technology, public security, and transportation—will strengthen coordination and data sharing in the course of managing automotive data security, thereby fostering synergistic efforts.
The scope of the carbon market will be gradually expanded.
Since the launch of trading on the national carbon market, the cumulative transaction value has exceeded RMB 350 million. On the 18th, Minister of Ecology and Environment Huang Runqiu stated that the next steps will involve expanding the market’s coverage by gradually incorporating more high-emission sectors, progressively diversifying trading products, mechanisms, and participants, and enhancing market liquidity.
National carbon emissions trading is an important mechanism for leveraging market forces to control and reduce greenhouse gas emissions and promote green, low-carbon development. It also represents a institutional innovation and a key policy tool for achieving China’s carbon peak target and carbon neutrality vision.
On July 16, trading was launched on the national carbon emissions trading market. On that day, the cumulative trading volume of carbon emission allowances (CEAs) reached approximately 4.104 million tonnes, with a total transaction value of RMB 210 million, and an average daily price of RMB 51.23 per tonne.
During the first compliance period of the national carbon market, 2,162 key emitting entities in the power generation sector were included, covering approximately 4.5 billion tonnes of annual carbon dioxide emissions. This also means that, upon its launch, China’s carbon emissions trading market became the world’s largest in terms of the total volume of greenhouse gas emissions covered.
Data show that on the very day the national carbon emissions trading market was launched, its daily turnover accounted for more than half of the total trading volume over the past month. “The overall trading scale is fairly normal, but there is still considerable room for growth in trading volume,” said Lai Xiaoming, Chairman of the Shanghai Environment and Energy Exchange, adding that, as the market is still in its early stages, some companies are still in the process of opening accounts. In the coming months, total trading volume is expected to continue rising.
“The power generation sector has taken the lead in piloting this approach, but it will by no means remain the sole frontrunner,” said Liu Youbin, spokesperson for the Ministry of Ecology and Environment. At present, in conjunction with the preparation of the national emissions inventory, the ministry has for several years in a row organized data accounting, reporting, and verification activities across high-emitting sectors such as steel, cement, building materials, aviation, petrochemicals, chemicals, and papermaking, thereby establishing a relatively robust data foundation in these industries.

Taxation TAXATATION
Heze, Shandong: “Tax-Village Co‑construction” Empowers Rural Revitalization
To promote the development of agriculture-related industries and invigorate rural entrepreneurship and employment, the Heze Municipal Tax Service Bureau of the State Taxation Administration has taken proactive measures by establishing a dedicated service team and extending mobile tax‑service terminals to villages, thereby harnessing the full power of taxation to support rural revitalization.
Mobile Tax Services: Bridging the “Point” of Service
At present, rural revitalization efforts are in full swing. With initiatives such as improving the living environment, dredging rivers and ditches, and building “beautiful, livable villages,” the number of rural workers involved is steadily rising, leading to a substantial increase in the volume of invoice‑issuing services. Consequently, issuing invoices on behalf of village‑level expenditure items has become one of the primary services offered at the self‑service tax service hall of the Yuncheng County Tax Bureau of the State Taxation Administration.
Given that most migrant workers are older farmers who are unfamiliar with the specific procedures for online tax filing, the Yuncheng County Tax Service Bureau of the State Taxation Administration has adapted to the situation by leveraging the flexibility and mobility of its mobile tax service units. These units have been deployed directly into communities and villages, providing on-site invoice issuance, offering consultations, delivering services to people’s doorsteps, and bringing policy guidance right into the countryside—precisely targeting rural areas with tailored tax and fee preferential policies. This taxpayer‑driven support for rural revitalization has opened up a new chapter in “tax‑village co‑construction,” earning widespread praise from the local population.
“Thanks to the government’s excellent policies, we can earn a living and support our families right at our doorstep. And now the tax bureau has even rolled out thoughtful services—now we can get our invoices without leaving the village. It’s incredibly convenient. In this sweltering heat, we no longer have to brave the blazing sun and travel all the way into town just to obtain an invoice; it’s truly a huge relief!” At the community courtyard in Wangshawan, Yuncheng County, Heze City, villager Mr. Liu beamed as he held two freshly issued invoices, proudly touting them to everyone he met.
The mobile tax service hall integrates all the services offered at physical tax service centers, breaking down traditional barriers to tax processing. It both complements online tax services and encompasses front‑office operations, thereby meeting taxpayers’ needs for greater efficiency and reduced in‑person visits.
Policy Promotion Forms a Service “Chain”
“The ‘Tax‑Village Co‑construction’ initiative has been immensely helpful to us farmers. The current tax and fee policies are truly favorable—products we sell can be invoiced without being subject to tax, which has helped double our incomes,” said the Party branch secretary of Baliwan Village in Yuncheng County, Heze City.
Baliwan Village is a well-known specialized cucumber‑growing community, renowned far and wide. In recent years, leveraging a party branch–led cooperative, the village has achieved large-scale cultivation, with 302 members. Its cucumbers and other vegetables are sold to more than ten neighboring cities and counties, and during peak season, daily sales exceed 50 tons. In response to Baliwan Village’s specific business needs, the Yuncheng County Tax Bureau of the State Taxation Administration has rolled out a comprehensive package of farmer‑friendly policies. By integrating tax and fee incentives covering production, supply, and marketing, along with streamlined services for invoicing, filing, and tax payment, the bureau has provided ongoing support to help the village strengthen and expand its vegetable brand. Meanwhile, staff from the mobile tax service center have formed the “Spring Breeze Tax Service Team,” offering on-site briefings to village committee officials and vegetable farmers on tax and fee policies that promote agricultural development, as well as related policies on urban and rural residents’ pension and medical insurance. They also guide villagers in using mobile tax‑service devices to handle their tax matters.
“We will leverage the village committee’s strengths in connecting with the community to assist the tax authorities in publicizing tax and fee preferential policies and in collecting taxes and fees, build a communication bridge between the tax authorities and taxpayers, help gather feedback and suggestions, continuously improve our work, and contribute to rural revitalization,” said members of the Party and Village Committees of Baliwan Village.
Precision-driven support to broaden the scope of services.
The Heze Municipal Tax Service Bureau is focusing on supporting the rural economy and has launched an in-depth initiative titled “Strengthening ‘Tax–Village Co‑construction’ to Boost Rural Revitalization.” By aligning with the specific characteristics of local industries, the bureau is fully implementing a range of tax and fee policies designed to benefit businesses and farmers, leveraging policy incentives to encourage enterprises to invest deeply in rural areas, mobilize more agricultural market players, and jointly build a robust platform for rural revitalization.
“The tax authorities provide face-to-face guidance and hands-on training, ensuring that all our agriculture‑related enterprises can fully benefit from preferential tax and fee policies. This has laid a solid logistical foundation for the development of rural industries and given us the confidence to grow stronger with each passing day!” said Shang Fuwei of the Juancheng County Agricultural Science and Technology Industrial Park.
The Juancheng County Agricultural Science and Technology Industrial Park is a joint investment‑attraction project undertaken by Guquan Subdistrict Office and Dongkou Town. The first phase involves an investment of RMB 170 million and covers 141 mu of land. Upon reaching full production, it is expected to generate annual revenues of RMB 60 million and provide employment for more than 600 workers, thereby playing a positive role in demonstrating best practices and spurring the development of the agricultural sector in the surrounding areas of Juancheng County.
To comprehensively support rural revitalization, the Juancheng County Tax Service Bureau of the State Taxation Administration has implemented categorized management for key tax‑paying enterprises in priority villages, provided tailored, precision‑driven services at agricultural science and technology industrial parks, leveraged tax‑related big data to identify and prioritize distinctive local industries, and offered guidance on the effective implementation of tax and fee preferential policies designed to benefit businesses and farmers. These efforts have energized both enterprises and villagers, fostering entrepreneurship and employment while boosting the thriving development of the agricultural sector. Meanwhile, by coordinating with township finance offices, the bureau has deployed mobile tax service stations—dubbed “tax‑service caravans”—and organized village accountants and staff from Party‑and‑mass service centers to undergo online training on tax‑related procedures and preferential policies, cultivating a corps of volunteer tax‑advisors and forging close ties with local residents.
Going forward, the Heze Municipal Tax Service Bureau of the State Taxation Administration will continue to prioritize optimizing the business environment, leverage the advantages of its mobile tax service centers, and extend taxpayer services deeper into agriculture, rural areas, and among farmers, thereby contributing the tax sector’s efforts to advancing rural revitalization.

Sichuan: The “delegation, regulation, and service” reform safeguards market entities.
　Market entities are the driving force of the economy; safeguarding them means safeguarding social productivity. Sichuan’s tax authorities have consistently focused on delivering convenient services, steadily advancing the “delegation, regulation, and service” reform in the tax sector.
Customized services provide precise “nutrient supplementation.”
Since the beginning of this year, to ensure that tax policies are delivered swiftly and directly to taxpayers, the Sichuan tax authorities have established a customized service for precisely targeting taxpayers with policy information—the Tax and Fee Preferential Policy Tagging System.
The tax and fee preferential policy labeling system categorizes and profiles taxpayers and payers, leveraging a cloud platform to proactively identify those who meet the eligibility criteria. This enables precise delivery of policy benefits, channeling fiscal support directly to the “roots” of market entities’ growth. According to statistics, as of the end of July, Sichuan’s tax authorities had issued 61 batches of targeted policy notifications, reaching over 20.21 million taxpayer instances.
“The tax authorities have proactively provided us with a ‘point-to-point’ service package covering preferential policies such as the additional deduction for R&D expenses, the additional deduction for employing persons with disabilities, and export tax rebates. Starting this year, we are eligible for a 100% additional deduction on R&D expenses, with an estimated benefit of RMB 27 million. These savings will enable us to expand our innovative R&D production lines and continuously bring high‑quality products to market,” said Feng Su, Manager of the Finance Department at CRRC Ziyang Locomotive Co., Ltd.
Canceling registration fosters a “healthy ecosystem” for nurturing growth.
The business environment is the fertile ground in which market entities thrive and grow. Whether tax‑related market entities can enter the market smoothly and exit without obstacles are key indicators of a favorable business climate. In Pengzhou, the local tax authorities, in collaboration with the Administrative Approval Bureau and the Human Resources and Social Security Bureau, have launched the “Qi Yi Qing” joint deregistration service. A dedicated “Comprehensive Deregistration” counter has been established, enabling businesses to complete deregistration procedures for three government departments through a single window. This has reduced processing times by two working days, addressing longstanding bottlenecks caused by complex and time‑consuming deregistration procedures.
At present, the Sichuan tax authorities have streamlined the tax deregistration process: for general VAT taxpayers, the procedure is now completed within 10 working days, while for small-scale VAT taxpayers and other taxpayers, it is concluded within 5 working days. By accelerating processing times and reducing administrative burdens, these measures have lowered compliance costs, enhanced taxpayers’ experience and satisfaction, further optimized the business environment, and improved the “soil” in which market entities can thrive.
Silver-Tax Collaboration Channels “Financial Fresh Water”
Since the beginning of this year, tax authorities across Sichuan Province have continued to deepen “bank‑tax cooperation,” expanding the range of online bank‑tax products to help enterprises overcome financing challenges and channel financial resources into driving business growth. According to statistics, as of the end of July, loans had been extended to more than 40,000 businesses, totaling RMB 36.374 billion.
Chengdu Feiya Aviation Equipment Application Research Institute Co., Ltd. is a private enterprise located in Wenjiang District, Chengdu. “Last year, thanks to our tax credit rating, we were able to promptly secure a bank loan and successfully navigate the operational challenges posed by the pandemic. This year, maintaining a B‑level tax credit, we have once again applied to the Wenjiang Branch of the China Construction Bank for a 2 million yuan loan. We will make full and effective use of these funds, manage our business with dedication, and contribute even more to the region’s economic development,” said Peng Daotang, head of Chengdu Feiya Aviation Equipment Application Research Institute Co., Ltd.
Going forward, Sichuan’s tax authorities will take the Opinions of the CPC Central Committee and the State Council on Tax Collection and Administration Reform as their guiding principle, and regard the provision of more efficient and intelligent tax and fee services as their core responsibility. They will make full use of tax‑related big data to ensure that preferential policies and measures are delivered precisely and directly to eligible taxpayers, continue to promote online tax filing and payment, and leverage the electronic tax bureau and taxpayer‑tax authority interaction platforms to advance smart, personalized services. In doing so, they will effectively reduce the administrative burden on taxpayers and payers, thereby providing robust support for high‑quality development.

Guangdong: New Technological Tools Bolster Precision Tax Services
“The VAT threshold for small-scale taxpayers has been raised to RMB 150,000—what a great policy! With the tax authorities’ support this year, we’ve benefited from reduced corporate income tax rates for high-tech enterprises and an additional deduction for R&D expenses. As of June 2021, we’ve received tax reductions and exemptions totaling RMB 1.0945 million, significantly easing our operational pressures,” said Ms. Luo, the finance director of Guangdong XianDao Advanced Materials Co., Ltd., speaking highly of the work of the High-Tech Zone Tax Bureau.
To further ensure the effective implementation of tax and fee preferential policies and to continuously upgrade taxpayer‑friendly services, the Qingyuan High‑Tech Industrial Development Zone Tax Bureau has been earnestly carrying out the “Doing Practical Things for Taxpayers and Payers—Spring Breeze Action for Convenient Tax Services,” deploying concrete measures both online and offline. By leveraging multiple channels, the bureau has refined its tax‑related services, delivering tangible benefits to taxpayers and ensuring that these people‑centric initiatives are fully realized.
It is reported that, to further refine and implement the “Spring Rain Nurtures Seedlings” special initiative and foster a cohort of specialized, refined, distinctive, and innovative SMEs, the High-tech Zone Tax Bureau organized a policy‑briefing symposium for such enterprises. The event provided policy training to eight specialized, refined, distinctive, and innovative SMEs within the jurisdiction, including Guangdong XianDao Advanced Materials Co., Ltd. Prior to the symposium, the High-tech Zone Tax Bureau conducted a survey of these eight enterprises, gaining an in-depth understanding of their production and operations, tax and fee compliance, and future prospects. This comprehensive assessment enabled the bureau to fully grasp each company’s unique characteristics and specific tax‑related needs, allowing it to deliver tailored services and support corporate innovation and R&D through high‑quality assistance. During the symposium, participating enterprises were able to benefit from a range of tax‑reduction and fee‑cutting measures, including reduced corporate income tax rates for high‑tech enterprises, additional deductions for R&D expenses, one‑time write‑off of equipment and instruments valued at RMB 5 million or less, preferential tax policies for high‑tech offices, and a reduced corporate income tax rate of 15% for eligible high‑tech enterprises. In the first half of 2021, the total tax relief and exemptions granted to these eight enterprises amounted to RMB 8.9017 million.
“The tax authorities have launched extensive outreach efforts, employing a wide range of formats—such as WeChat push notifications, telephone guidance, on-site Q&A sessions, and seminar presentations. Among these, the taxpayer training courses have been particularly valuable for us. The policy briefings are extremely timely, with content that is both comprehensive and clearly explained. We hope more such sessions can be organized,” said a representative from a nonprofit organization in the live-streaming comment section.
Recently, the High-tech Zone Taxation Bureau leveraged 5G technology to host an online taxpayer education session on tax policies for nonprofit organizations. The event was delivered via live streaming, attracting 315 nonprofit entities within the jurisdiction and drawing over 3,000 viewers. Key topics included whether nonprofit organizations qualify as taxpayers, whether their income is exempt from taxation, and how to obtain tax-exempt status. By clarifying these critical issues through tax policy guidance, the bureau aims to promote the sound development and efficient operation of nonprofit organizations, thereby fostering a favorable external environment for the advancement of public‑interest initiatives.
It is reported that, in response to the realities faced by small and micro enterprises—namely, limited staffing, weak tax‑filing capabilities, and the risk of failing to promptly benefit from policy incentives—the High‑Tech Zone Tax Bureau has leveraged its Taxpayer Academy. By using a mini‑program to proactively gather taxpayers’ most pressing policy‑related inquiries, the bureau has adopted a demand‑driven approach to create a “à la carte” Taxpayer Academy. Taxation “streamers” systematically organize tax‑related hot topics collected through routine operations, meticulously prepare teaching materials, and conduct specialized online training sessions under the “Spring Rain Nurtures Seedlings” initiative. These sessions provide detailed explanations of tax and fee policies for small and micro enterprises, address complex and topical issues, and highlight the latest service measures and business procedures, ensuring that these enterprises can easily navigate the processes and fully reap the benefits of available policies.
On August 2, the High-tech Zone Tax Bureau launched the V‑Tax remote visual self-service tax system at the Longtang Tax Service Hall. By seamlessly integrating with the Electronic Tax Bureau, the system enables end-to-end online processing of all tax-related procedures, bridging the final “last mile” of contactless tax services. “The interface is clean and intuitive, making it very user-friendly. The system also clearly lists the documents required for each transaction, which is extremely convenient,” said taxpayer Ms. Xiao, who was among the first to experience the V‑Tax remote visual self-service system’s features.
To effectively bridge the “last mile” of contactless tax services, the High-tech Zone Tax Bureau has meticulously prepared for this initiative, making rational adjustments to the existing structure of the tax service hall, intensifying professional training for tax personnel, and ensuring rigorous and detailed implementation of all preparatory measures. The system introduces a brand-new remote audio‑video interaction model, streamlining four key processes—tax guidance, form completion, preliminary review, and tax processing—while virtually replicating the physical tax service hall with real-time human‑to‑human interaction, thereby providing taxpayers with personalized online services that are both efficient and warmly attentive.
“The V‑Tax system supports multi-channel access via the WeChat mini‑program, web portal, and desktop client, enabling taxpayers to handle their tax affairs without being constrained by time or location. Upon completion of each transaction, forms and supporting documents are automatically uploaded to the electronic archive platform. With its clean, user‑friendly interface, the system significantly boosts tax‑administration efficiency and helps both the tax authorities and taxpayers reduce their administrative burdens. Moving forward, the district bureau will actively explore ‘fully online processing for all services,’ laying the groundwork for achieving 100% online handling of tax and fee‑related matters,” said the principal official of the Taxpayer Services Division of the High‑Tech Zone Tax Bureau.

Litigation & Arbitration
The Party Leadership Group of the Supreme People’s Procuratorate has put forward 54 specific tasks for implementing the CPC Central Committee’s Opinions on Strengthening Legal Supervision by the Procuratorial Organs in the New Era.
Focus on implementation, deliver tangible results, and achieve real‑world effectiveness. Following the issuance of the “Opinions of the CPC Central Committee on Strengthening Legal Supervision by the Procuratorial Organs in the New Era” (hereinafter referred to as the “Opinions”), the Supreme People’s Procuratorate has led procuratorial organs nationwide in taking swift and decisive action, ensuring rigorous implementation. The spirit of the “Opinions” has been integrated into the procuratorial practice guided by Xi Jinping Thought on the Rule of Law, reflected in all specific prosecutorial tasks, and translated into concrete measures that put the people at the center, thereby delivering solid, people‑oriented outcomes and better serving the overall national interest and providing justice for the people. At present, what challenges and shortcomings remain in implementing the “Opinions”? How can we further refine the top‑level design for their execution, adopting a coordinated, whole‑system approach to ensure more effective and thorough implementation across all procuratorial organs? Recently, the Supreme People’s Procuratorate convened an expanded meeting of its Party Leadership Group to deliberate and refine the division of responsibilities for carrying out the “Opinions of the CPC Central Committee on Strengthening Legal Supervision by the Procuratorial Organs in the New Era.” Building on the progress made in the earlier phase of implementation, Zhang Jun, Secretary of the Party Leadership Group and Procurator General of the Supreme People’s Procuratorate, laid out plans and set forth requirements for advancing the effective implementation of the “Opinions.”
In light of evolving crime trends and public security conditions, it is essential to accurately implement the criminal policy of combining leniency with strictness, further advance the system of lighter penalties for those who admit guilt and accept punishment, and rigorously apply arrest and detention measures in accordance with the law. At the same time, we will improve the mechanism by which procuratorial organs legally initiate oversight of civil litigation, refine the procedures for accepting and reviewing appeals against final civil judgments, and enhance the system for accessing case files. We will also refine talent recruitment policies to better suit grassroots realities and strengthen the foundational infrastructure of procuratorial organs at the community level. The division-of-labor plan aligns with the requirements set forth in the “Opinions,” outlining 54 specific tasks, each with clearly designated “responsible leaders,” “leading departments,” and “concrete implementation measures.” “We must regularly review the progress of implementing the ‘Opinions,’ identify existing problems, and propose targeted measures for improvement,” and “all departments and relevant sectors should enhance coordination in ensuring effective implementation of the ‘Opinions.’” During the meeting, participants engaged in lively discussions on the specific measures outlined in the division-of-labor plan and put forward suggestions for optimizing their execution.
“The vitality of the ‘Opinions’ lies in their effective implementation!” Zhang Jun emphasized that we must strengthen our sense of responsibility for implementing them. Enhancing the legal supervision work of the procuratorial organs in the new era is vital to the overall interests of the Party and the country, to high-quality economic and social development, to the continued advancement of law-based governance across the board, and to the steady progress of the Party’s prosecutorial cause. In conjunction with the implementation of the ‘Opinions,’ we must strive to overcome all difficulties and translate the heavier political, legal, and prosecutorial responsibilities entrusted by the CPC Central Committee into concrete actions that reinforce legal supervision.
“Implementing the ‘Opinions’ is no task that can be accomplished overnight; it requires us to sustain our efforts ‘today,’ ‘tomorrow,’ and ‘the day after tomorrow’!” Zhang Jun urged that we must strengthen our sense of mission in implementing the ‘Opinions.’ It is imperative to recognize that their implementation is an ongoing, dynamic process that evolves with the times. The procuratorial organs must take Xi Jinping’s thought on the rule of law as their guiding principle, integrate the spirit and specific requirements of the ‘Opinions’ into their concrete prosecutorial work, and ensure that the Party’s absolute leadership, a people-centered approach, and adherence to the path of socialist rule of law with Chinese characteristics are fully put into practice in the performance of their duties.
“We must recognize the gaps and shortcomings!” Zhang Jun emphasized, stressing the need to heighten our sense of urgency in implementing the Opinions. The exercise of prosecutorial duties is a vital component of advancing the rule of law across the board. In the new era and at this new stage of development, the people have higher‑level, more multifaceted expectations in areas such as democracy, the rule of law, fairness, justice, security, and the environment, placing even greater demands on the prosecution service. Compared with these evolving public needs, legal supervision by the procuratorial organs still falls short and fails to keep pace in many domains. We must, in light of the Opinions, identify gaps and deficiencies, address weaknesses, and strengthen our weak points, thereby comprehensively enhancing the quality and effectiveness of legal supervision in their implementation. Only by delivering tangible results that uphold judicial fairness can we safeguard political security and social stability, and ensure that the people truly experience fairness and justice in every judicial case.
Leaders of the Supreme People’s Procuratorate, full-time members of the Procuratorial Committee, and heads of the internal departments and directly affiliated institutions of the organ attended the meeting.
Breaking the “home-field advantage” in litigation, China’s courts plan to launch a pilot program to reform the functional positioning of the trial levels.
A draft decision on authorizing the Supreme People’s Court to conduct a pilot program for reforming the functional positioning of the four-tier court system at the Supreme People’s Court and in selected regions was submitted to the Standing Committee of the National People’s Congress for deliberation on the 17th. This means that the Supreme People’s Court, along with the people’s courts of Beijing, Tianjin, and 12 other provinces and municipalities, is expected to launch a pilot reform aimed at refining the functional roles of the four-tier court system, thereby advancing the improvement of China’s litigation framework, comprehensively optimizing the allocation of judicial resources, and ensuring the correct and uniform application of the law.
When explaining the draft decision, Chief Justice of the Supreme People’s Court Zhou Qiang stated that China’s “four-tier, two-instance system” generally aligns with the country’s actual conditions, balancing fairness and efficiency while facilitating case triage, hierarchical division of functions, and optimal allocation of resources. At the same time, challenges remain, including an insufficiently clear definition of the roles and responsibilities of each level of court, an imperfect mechanism for elevating cases to higher courts, difficulties in ensuring that certain cases—where a “home‑court versus away‑court” dynamic may arise—are heard by higher‑level courts, and the need to further refine the standards and procedures governing applications for retrial in civil and administrative matters.
According to reports, this pilot program will refine the system of jurisdictional levels for civil and administrative cases, gradually ensuring that most first-instance civil cases are heard by primary people’s courts, with only a small number assigned to intermediate people’s courts. Based on the extent to which local factors may affect the legitimate rights and interests of the parties and the impartiality of case adjudication, the standards for determining the level of jurisdiction over first-instance administrative cases will be appropriately adjusted, thereby promoting the substantive resolution of administrative disputes.
At the same time, the pilot program will refine the mechanisms for transferring jurisdiction over cases and for hearing cases at a higher level. It will establish a system whereby first-instance jurisdiction over “special‑type cases” is elevated one level, along with corresponding procedures for such elevation, and will clearly define the criteria for identifying these cases. When a higher people’s court deems that a first-instance case under the jurisdiction of a lower people’s court falls within the category of “special‑type cases” and that hearing it itself would better ensure uniform application of the law or help break the phenomenon of “litigation being venue‑dependent,” it may decide to assume jurisdiction over the case and preside over it directly, while also specifying the procedures and standards governing such elevated adjudication.
With regard to reforming the procedures and standards for applications for retrial in civil and administrative cases, the grounds for and the procedures governing applications for retrial to the Supreme People’s Court will be streamlined. Through its own review of retrial cases, the Supreme People’s Court will primarily adjudicate matters that bear nationwide significance as guiding precedents on the application of law, cases involving major national interests or public interests, and landmark cases that help dismantle the “home-field advantage” phenomenon in litigation.
In addition, this pilot program will further refine the mechanism for exercising the Supreme People’s Court’s adjudicatory authority. For cases of broad legal‑application significance, it will strengthen and improve the mechanism for the participation of the Chief Justice in case adjudication and establish a collegial panel of five or more judges, drawn from multiple judicial divisions, to hear such cases.
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China’s legislation aims to prevent minors from being victimized by organized crime and evil forces.
To prevent organized crime and evil forces from harming minors, the second draft of the Anti-Organized Crime Law, submitted to the Standing Committee of the National People’s Congress for deliberation on August 17, further refines provisions related to combating organized crime involving minors.
The second draft of the bill refines schools’ preventive duties and reporting obligations, adds provisions requiring relevant authorities to conduct anti‑organized crime publicity and education for minors, and stipulates that organized criminal activities involving minors shall be subject to aggravated criminal liability in accordance with the law.
According to a responsible official from the Ministry of Public Security, in recent years, some minors have been coerced or enticed into participating in and committing crimes perpetrated by organized criminal gangs. In some cases, these gangs have even exploited provisions in the Criminal Law regarding the age of criminal responsibility, deliberately recruiting minors as targets for recruitment in order to evade criminal penalties. Such practices gravely harm the physical and mental well-being of minors and undermine public order, social harmony, and stability.
The second draft stipulates that if a school discovers organized crime that endangers students’ personal safety or property, disrupts order on and around campus, involves the recruitment of students by organized criminal groups, or entails student participation in organized criminal activities, it shall promptly implement measures to stop such activities and prevent their recurrence, and report the matter to the public security authorities and the education administrative department.
Drawing on the practical experience gained from the special campaign to combat organized crime and evil forces, the second draft of the bill adds provisions requiring relevant authorities to carry out publicity and education on combating organized crime among minors. Education administrative departments and schools shall, in coordination with the relevant authorities, establish mechanisms to prevent organized crime from harming school campuses, strengthen publicity and education on this issue, enhance minors’ awareness and capacity to guard against organized crime, and guide them to consciously resist such criminal activities and protect themselves from harm.
In addition, the second draft of the bill stipulates that organized criminal activities involving minors shall be subject to aggravated criminal liability in accordance with the law, thereby providing a legal framework for rigorously punishing those who exploit minors in such criminal enterprises.

Personal Information Protection Law: Establishing Processing Rules Centered on “Notice and Consent”
Price discrimination based on big data, arbitrary collection of facial recognition data, and refusal to provide services unless users consent—addressing these pressing concerns in personal information protection, the law has now stepped in. On August 20, the 30th session of the Standing Committee of the 13th National People’s Congress adopted the Personal Information Protection Law, which will take effect on November 1, 2021.
The Personal Information Protection Law comprises eight chapters and 74 articles, clearly defining the principles that must govern personal information processing activities, establishing a framework of rules centered on “notice‑and‑consent,” safeguarding individuals’ rights in such activities, strengthening the obligations of personal information processors, delineating regulatory responsibilities for personal information protection, and imposing stringent legal liabilities.
Establish principles for the protection of personal information
The principles of personal information protection serve as the fundamental guidelines for the collection and use of personal information, and they constitute the institutional foundation upon which specific rules for personal information protection are built.
The Personal Information Protection Law stipulates that the processing of personal information shall adhere to the principles of legality, fairness, necessity, and good faith; serve clear and reasonable purposes directly related to those purposes; adopt measures that minimize any adverse impact on individuals’ rights and interests; be limited to the minimum scope necessary to achieve the processing purpose; disclose processing rules; ensure the quality of the information; and implement appropriate security safeguards. These principles must be applied throughout the entire process and at every stage of personal information processing.
“‘Notice and consent’ is the core principle of personal information protection enshrined in law, and it serves as an essential mechanism for safeguarding individuals’ rights to be informed about and to decide on the processing of their personal information,” said Yang Heqing, Deputy Director of the Economic Law Division of the Legislative Affairs Commission of the Standing Committee of the National People’s Congress, during a press briefing.
The Personal Information Protection Law stipulates that, when processing personal information, consent must be obtained after providing adequate prior notice, and any material changes to the key aspects of such processing must be re‑notified to the data subject and accompanied by renewed consent.
Meanwhile, in response to widespread public concerns regarding blanket authorizations and mandatory consent, the Personal Information Protection Law expressly requires personal information processors to obtain separate consent from individuals when handling sensitive personal information, disclosing or providing personal information to third parties, or transferring personal information across borders. The law also stipulates that personal information processors may not excessively collect personal information, may not refuse to provide products or services on the grounds that an individual has not consented, and grants individuals the right to withdraw their consent. Upon withdrawal of consent, personal information processors must cease processing the relevant personal information or promptly delete it.
Furthermore, in light of the increasingly diverse contexts in which personal information is processed, the Personal Information Protection Law also sets forth specific circumstances under which personal information may be lawfully processed without obtaining the individual’s consent. For example, addressing the issue of the misuse of facial recognition technology, the law stipulates that when image‑capture and personal identification devices are installed in public places, conspicuous signage must be provided; moreover, any personal images or identity‑verification data collected may be used solely for the purpose of safeguarding public security.
Prohibit practices such as “big data price discrimination”
At present, some enterprises, by leveraging information on consumers’ financial circumstances, spending habits, and price sensitivity, engage in discriminatory pricing practices that disadvantage certain consumers, thereby misleading and defrauding them. The most prominent example of this is “big data price discrimination.”
In this regard, the Personal Information Protection Law explicitly stipulates that when a personal information processor uses personal information to make automated decisions, it must ensure the transparency of such decisions and the fairness and impartiality of their outcomes, and may not impose unreasonable differential treatment on individuals with respect to transaction terms, including pricing.
Strictly protect sensitive personal information.
The Personal Information Protection Law classifies biometric information, religious beliefs, specific identities, medical and health information, financial account details, location data, and the personal information of minors under the age of fourteen as sensitive personal information.
Yang Heqing stated that the primary consideration is that once such information is leaked or illegally used, it can easily infringe upon the personal dignity of natural persons or jeopardize their personal safety and property; therefore, activities involving the processing of sensitive personal information should be subject to stricter restrictions.
In this regard, the Personal Information Protection Law stipulates that sensitive personal information may be processed only when there is a specific purpose and sufficient necessity, and strict protective measures have been implemented; moreover, a prior impact assessment must be conducted, and individuals must be informed of the necessity of the processing and its implications for their rights and interests.
Granting individuals full rights and strengthening the obligations of personal information processors.
The Personal Information Protection Law elevates individuals’ rights in personal information processing activities—such as the right to be informed about the rules and purposes of processing, the right to consent and to withdraw consent, as well as the rights to access, copy, rectify, and erase personal information—to the status of “rights to be informed” and “rights to decide,” and explicitly stipulates that individuals have the right to restrict the processing of their personal information.
At the same time, in order to adapt to the practical reality of diversified Internet applications and services and to meet the growing demand for cross-platform transfer of personal information, the Personal Information Protection Law has established general principles regarding the right to data portability, requiring that, where the conditions prescribed by the national cyberspace administration are met, personal information processors shall provide individuals with mechanisms to transfer their personal information.
“Personal information processors bear the primary responsibility for protecting personal information,” Yang Heqing stated. The Personal Information Protection Law underscores that personal information processors must be accountable for their personal information processing activities and take necessary measures to ensure the security of the personal information they handle.
On this basis, the Personal Information Protection Law dedicates a special chapter to clearly set forth the obligations of personal information processors, including compliance management and ensuring the security of personal information. It requires such processors to formulate internal management systems and operational procedures in accordance with the regulations, adopt appropriate technical security measures, designate a person responsible for supervising their personal information processing activities, conduct regular compliance audits of these activities, carry out prior impact assessments for high-risk processing operations—such as handling sensitive personal information, using individuals for automated decision-making, or disclosing or making personal information available to third parties—and fulfill their obligations to notify and remedy personal information breaches.
Increase the severity of penalties for unlawful processing of personal information.
The Personal Information Protection Law establishes tiered administrative penalties for unlawful processing of personal information, depending on the specific circumstances. For minor or moderate violations that have not resulted in serious consequences, enforcement authorities may order rectification, issue a warning, and confiscate illegal gains; failure to comply may incur a fine of up to one million yuan. For particularly serious violations, fines may reach as high as 50 million yuan or 5% of the entity’s turnover in the preceding year, and relevant persons in charge may be subject to bans from engaging in related professions. In addition, the law expressly provides that applications found to be unlawfully processing personal information may be ordered to suspend or cease providing services.
With respect to civil liability, the Personal Information Protection Law stipulates that where the processing of personal information infringes upon individuals’ personal information rights and causes damage, the personal information processor shall bear tort liability, including compensation for damages, unless it can prove that it was not at fault.
At the same time, the Personal Information Protection Law also provides for civil public interest litigation in cases involving infringement of the rights and interests of a large number of individuals.
On the 20th, the Standing Committee of the National People’s Congress voted to adopt a decision on amending the Population and Family Planning Law.
On the 20th, the Standing Committee of the National People’s Congress voted to adopt a decision amending the Population and Family Planning Law. Under the amended law, the state encourages marriage and childbearing at an appropriate age and promotes healthy pregnancies and childrearing, allowing each couple to have up to three children. The state will implement supportive measures in areas such as finance, taxation, insurance, education, housing, and employment to alleviate the burdens faced by families in having, raising, and educating children.

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