JC Master Legal News Issue 984

Key Takeaways for This Issue
A flurry of policy measures has been rolled out, bolstering the high-quality development of the bond market.
　“The Guiding Opinions on Promoting the High-Quality Reform and Development of the Corporate Credit Bond Market,” “The Notice on Fostering the Healthy Development of the Bond Market’s Credit Rating Industry,” “The Notice on Matters Related to the Removal of Credit Rating Requirements for Debt Financing Instruments Issued by Non-Financial Enterprises”... Over the past half month or so, a series of regulatory policies have been rolled out in quick succession, focusing on unifying and standardizing market rules, regulating rating agencies, and proactively preventing and defusing risks, thereby supporting the sound development of the bond market, particularly the corporate credit bond segment.
Local carbon-peaking roadmaps have been released one after another.
Under the guidance of the “dual carbon” goals, local roadmaps for peaking carbon emissions are rapidly taking shape. According to the 14th Five-Year Plans unveiled across regions, numerous provinces and municipalities—including Shanghai, Beijing, and Jiangsu—have set targets to achieve peak carbon emissions ahead of schedule and as early as possible. Detailed implementation plans at the local level have been released in quick succession; overall, optimizing industrial and energy structures remains the central focus. Notably, while strictly regulating high‑carbon and high‑energy‑consumption projects, many localities are also stepping up positive policy guidance by establishing near‑zero‑carbon emission demonstration zones.
Tax and fee reduction policies place greater emphasis on improving quality and boosting efficiency.
　Since 2016, China has steadily increased the scale of tax and fee reductions year after year, with policy measures reaching an unprecedented level last year amid the COVID‑19 pandemic. Among the seven batches of 28 tax and fee reduction measures implemented, there were emergency measures to support epidemic prevention and control and ensure supply; measures to assist industries severely affected by the pandemic; and measures to help enterprises resume work and production.

The Cyberspace Administration of China has unveiled ten measures to crack down hard on the chaos in “fan circles.”
To further intensify efforts to address these issues, the Cyberspace Administration of China recently issued the “Notice on Further Strengthening Governance of Disorderly Practices in ‘Fan Circles,’” outlining ten measures, including abolishing celebrity ranking lists, refining and adjusting ranking rules, and strictly regulating celebrity management agencies, to take decisive action against the rampant problems plaguing fan communities.

Finance & Capital Markets
A flurry of policy measures has been rolled out, bolstering the high-quality development of the bond market.

“The Guiding Opinions on Promoting the High-Quality Reform and Development of the Corporate Credit Bond Market,” “The Notice on Fostering the Healthy Development of the Bond Market’s Credit Rating Industry,” “The Notice on Matters Related to the Removal of Credit Rating Requirements for Debt Financing Instruments Issued by Non-Financial Enterprises”... Over the past half month or so, a series of regulatory policies have been rolled out in quick succession, focusing on unifying and standardizing market rules, regulating rating agencies, and proactively preventing and defusing risks, thereby supporting the sound development of the bond market, particularly the corporate credit bond segment.
Industry insiders interviewed by a reporter from the Economic Information Daily said that in recent years, China’s corporate bond market has grown rapidly and played a vital role in supporting the real economy. With the implementation of several regulatory policies, the corporate credit bond market is poised to enter a stage of unified, standardized, and high-quality development, further enhancing its ability to serve the real economy.
A landmark document lays the groundwork for “unification” in the bond market.
China’s bond market has long remained relatively fragmented, with different types of bonds subject to approval or registration by distinct regulatory authorities and issued and traded across separate market segments. “The corporate credit bond market serves as a crucial channel for direct financing, playing an important role in meeting the financing needs of the real economy and diversifying its funding sources. However, as the market continues to evolve and the scale of issuers expands, issues such as fragmented regulation and market segmentation have become increasingly pronounced. Certain rules and regulations promulgated independently by various market regulators can no longer keep pace with the rapid growth of financing demand, thereby, to some extent, impeding the free flow and efficient allocation of market factors,” said Liu Muhuan, a research analyst at Orient Golden Credit Rating.
In recent years, regulatory authorities have continuously introduced policies to progressively harmonize the institutional framework of the bond market. In November 2018, the People’s Bank of China, together with the China Securities Regulatory Commission and the National Development and Reform Commission, jointly issued the “Opinions on Further Strengthening Law Enforcement in the Bond Market.” In November 2019, the Interim Measures for the Administration of the Credit Rating Industry were promulgated, establishing a unified regulatory framework for the rating industry. In July 2020, the People’s Bank of China and the China Securities Regulatory Commission approved cooperation between relevant infrastructure institutions in the interbank and exchange‑traded bond markets to achieve interconnectedness. In December 2020, the People’s Bank of China, in conjunction with the National Development and Reform Commission and the China Securities Regulatory Commission, jointly issued the Measures for the Administration of Information Disclosure of Corporate Credit Bonds, thereby, for the first time, standardizing information disclosure requirements across all stages of corporate credit bond issuance.
The recently released “Guiding Opinions on Promoting the Reform, Opening-Up, and High-Quality Development of the Corporate Credit Bond Market” (hereinafter referred to as the “Opinions”) further strengthens the unified institutional framework for credit bonds. Zhang Xu, Chief Fixed Income Analyst at Everbright Securities, stated that the “Opinions” propose “gradually harmonizing rules and standards across issuance, trading, information disclosure, investor protection, and other areas in the corporate credit bond market, in line with the principle of regulatory convergence.” The document reinforces the overarching legal foundation for corporate credit bonds and seeks to prevent regulatory arbitrage through unified oversight.
Liu Linan, Head of Macro Strategy for Greater China at Deutsche Bank, believes that the “Opinions” set out specific measures to harmonize rules governing market trading, settlement, and access, which will help establish a unified RMB-denominated corporate bond market, reduce investors’ transaction costs, and enhance market pricing efficiency.
Zhang Xu also stated that unified regulation does not mean consolidating regulatory authority under a single administrative body; rather, it refers to the harmonization of regulatory standards and regulatory principles. On the basis of such standardization and alignment in regulatory philosophy, moderate and orderly competition across different markets and among various bond types is more conducive to increasing the share of direct financing and fostering the overall sound development of the bond market.
Proactively prevent and defuse risks in the bond market.
Stringent regulation has become the dominant theme in bond market oversight in recent years. “Recently, a series of policy documents have sought to mitigate risks in the bond market by enhancing the effectiveness of information disclosure, strengthening oversight of credit rating agencies, tightening investor suitability management, improving pricing mechanisms, clarifying the boundaries of responsibility between governments and enterprises, and cracking down on debt evasion,” said Liu Linan.
For example, the “Opinions” propose: “Establish a constraint mechanism for issuers whose asset‑liability ratios are significantly higher than the industry average, whose business expansion is overly aggressive, and whose related‑party relationships are complex,” and “place proactive prevention and resolution of bond market risks in an even more prominent position, fortify the three lines of defense—market access, early intervention, and orderly exit—and improve the risk monitoring and early‑warning system. Furthermore, refine the market‑based, rule‑of‑law‑driven mechanisms for handling bond defaults to enhance the efficiency of market clearing.”
A research report by Guojin Securities notes that the “Opinions” encourage the use of government bond yields as the benchmark for pricing in the bond market, and call for clarifying the boundaries between government and corporate responsibilities as well as credit risk. Specifically, the government is prohibited from financing through corporate borrowing, providing guarantees for corporate bond issuances, or assuming implicit fiscal liabilities on behalf of enterprises, while emphasizing the need to guard against risks associated with local governments’ hidden debt.
Several new regulatory measures also target risk prevention and control by focusing on intermediary institutions such as credit rating agencies and accounting offices. For example, the “Notice on Promoting the Healthy Development of the Bond Market Credit Rating Industry” (hereinafter referred to as the “Notice”) stipulates that credit rating agencies shall, over the long term, establish a rating‑quality verification mechanism centered on default rates, formulate implementation plans, and, by the end of 2022, put in place and apply a rating methodology system capable of achieving appropriate differentiation, thereby effectively enhancing rating quality.
Li Xin, head of the credit rating department at China Central Depository & Clearing Co., Ltd., stated that the bond market has experienced rapid growth in recent years, and China’s rating industry has now reached a certain scale. However, it also faces numerous challenges, including notably inflated rating levels, insufficient disclosure of risks, and inadequate accuracy and forward‑looking capabilities. “Insufficient ex‑ante warnings coupled with sharp post‑event downgrades” are key factors that exacerbate market volatility and may trigger systemic risks. She added that the Notice comprehensively regulates both the internal operations of rating agencies and the external rating ecosystem, thereby fundamentally fostering the sound development of the entire bond market. By placing particular emphasis on overseeing the most pressing issue—rating quality—the Notice will help steadily improve the accuracy of ratings and enable rating agencies to better fulfill their roles in identifying risks and providing reference points for bond pricing.
The bond market’s role in serving the real economy will be strengthened.
According to data from the People’s Bank of China, in July, the bond market issued a total of RMB 5.16691 trillion worth of bonds, including RMB 1.1184 trillion in corporate credit bonds. As of the end of July, the outstanding balance of bonds under custody stood at RMB 124.6 trillion, with corporate credit bonds accounting for RMB 2.95 trillion of that total.
Industry insiders note that the corporate bond market plays a vital role in supporting the real economy, yet it has long been plagued by various challenges. As regulatory policies are progressively implemented, the corporate credit bond market is poised to enter a unified, standardized phase of high-quality development, thereby better serving the real economy.
Liu Muhuan stated that, as the bond market becomes increasingly segmented along credit lines, investment entities with diverse risk preferences proliferate, and pricing frameworks and default‑resolution mechanisms continue to improve, the bond market’s ability to serve the real economy will be further strengthened. In the future, more issuers will gain access to the bond market, thereby broadening financing channels for the real economy—particularly for private enterprises and small and medium-sized businesses—and the high-yield bond market may enter a new phase of development.
Liu Linan stated that over the past three decades, China’s bond market has grown rapidly. Today, with the goals of further enhancing the bond market’s role in financial resource allocation, supporting the dual-circulation development strategy, advancing high‑level opening-up of the financial sector, and promoting the internationalization of the renminbi, strengthening institutional reforms—particularly in areas such as the legal framework, rating‑agency compliance, open and transparent information disclosure, and investor suitability management—is essential for improving market efficiency and achieving sustainable development. Continuously raising the efficiency of financial resource allocation will help reduce resource waste and misallocation, foster balanced development across sectors of the macroeconomy, and contribute to economic structural adjustment and an overall improvement in the quality of growth.

Fiscal and tax policies are bolstering the Yangtze River Economic Belt, driving China’s high-quality economic development.
Recently, the development of the Yangtze River Economic Belt has received a new wave of policy incentives. At its meeting held on August 25, the State Council Executive Meeting (hereinafter referred to as the “State Council Meeting”) outlined fiscal and tax measures to comprehensively advance the development of the Yangtze River Economic Belt. The meeting emphasized the need to strengthen fiscal and tax support, improve market‑based and diversified investment mechanisms, pool resources from all sectors, prioritize ecological conservation and pursue green development, and thereby promote high‑quality growth in the Yangtze River Economic Belt.
The Yangtze Economic Belt spans China’s eastern, central, and western regions, holding a pivotal economic position in the country and bearing significant strategic importance for the nation’s overall development. According to data released on August 17 by the National Development and Reform Commission, in the first half of the year, the combined GDP of the 11 provinces and municipalities along the Yangtze River reached 24.88 trillion yuan, up 14% year on year, accounting for 46.9% of the national total—underscoring the Belt’s increasingly prominent role as a leader in China’s pursuit of high-quality economic growth.
Luo Zhiheng, deputy director of the Yuekai Securities Research Institute and chief macro researcher, told a reporter from the Securities Daily that the State Council executive meeting has outlined fiscal and tax measures to comprehensively advance the development of the Yangtze River Economic Belt, increasing transfer payments to the region, boosting local disposable income, and addressing the cost‑sharing challenges associated with positive externalities. These steps will help promote ecological conservation and green development along the Yangtze River. Furthermore, they will reduce local reliance on factor‑driven growth and environmentally damaging, over‑exploitative development models, guiding regions toward innovation‑driven and green‑oriented pathways, accelerating the transition from old to new growth drivers, optimizing the economic structure, and ensuring more sustainable economic development.
“This State Council executive meeting specifically introduced fiscal and tax policies to support the development of the Yangtze River Economic Belt, taking ecological and environmental protection as a starting point for achieving sustainable development, leveraging the Yangtze’s “golden waterway” as a key lever to enhance infrastructure and service capabilities along its banks, harnessing green and low-carbon development as a driver of economic growth, and establishing comprehensive bonded zones as an additional platform for further opening up to the outside world—while fully capitalizing on the Yangtze River Economic Belt’s existing economic foundation,” said Zhang Yiqun, deputy director of the Performance Management Committee of the Chinese Fiscal Society, in an interview with Securities Daily.
Regarding how to leverage fiscal and tax policies to support the Yangtze River Economic Belt and steer the nation toward high-quality economic development, Zhang Yiqun identifies two key approaches: first, deploying proactive fiscal measures to swiftly address shortcomings in public‑service infrastructure along the Belt; and second, building on the effective implementation of existing tax‑reduction and fee‑cutting policies, strategically employing tax and fee incentives, interest subsidies, and dedicated funds to upgrade traditional industries and strengthen pillar sectors, thereby facilitating the transition from old to new growth drivers and a shift in the development model. With green development as its foundation, technological innovation as its guiding force, and pioneering progress as its goal, this approach seeks to connect China’s eastern, central, and western economic regions, creating a “Yangtze Valley” for a new model of Chinese economic development—one that serves as a policy‑driven hub and a frontier of innovation.
It is worth noting that, since the implementation of the Yangtze River Economic Belt development strategy, financing conditions in the region have remained robust. According to Luo Zhiheng, the Yangtze River Economic Belt has leveraged green credit as a key tool to encourage banks and financial institutions to vigorously expand green lending, thereby supporting the development of a green economy and facilitating economic restructuring as well as the upgrading and transformation of the industrial structure.
 The Securities Daily reported that on July 28, the China Development Bank successfully issued RMB 10 billion of “Yangtze Economic Belt Development”–themed Bond Connect green financial bonds to global investors. The bonds have a three-year maturity and carry a coupon rate of 2.28%. Proceeds from this issuance will be used to provide loans for projects related to energy conservation, environmental protection, and the green upgrading of infrastructure along the Yangtze Economic Belt.
“In recent years, the bond market within the Yangtze Economic Belt has played an increasingly prominent role in regional financing and resource allocation, and direct bond financing has also provided a steady influx of additional capital to support local development,” Luo Zhiheng added.
Fostering and Strengthening Market Entities: An Authoritative Department Provides Detailed Explanations of the Regulations on the Registration and Administration of Market Entities
At the State Council’s regular policy briefing held by the State Council Information Office on August 25, officials from the State Administration for Market Regulation, the Ministry of Justice, and other relevant departments provided a detailed interpretation of the recently promulgated Regulations on the Registration and Administration of Market Entities (hereinafter referred to as the “Regulations”) and outlined specific measures for their next‑step implementation.
Xiong Maoping, Deputy Director of the State Administration for Market Regulation, stated that the Regulations represent China’s first administrative regulation to uniformly standardize the registration and management of all types of market entities. They have streamlined and harmonized the relevant provisions on market entity registration and management found in various standalone laws and regulations, thereby establishing a foundational institutional framework for such registration and management nationwide. The promulgation and implementation of these Regulations serve as an important safeguard for further fostering and strengthening market entities and promoting fair competition, while also constituting a key measure to protect the legitimate rights and interests of all market participants, stabilize market expectations and confidence, and stimulate entrepreneurship and innovation.
Liu Changchun, Director-General of the Second Legislative Bureau of the Ministry of Justice, stated that the overall legislative approach comprises four key elements: First, further improve the regulatory framework for market oversight, streamline registration procedures, reduce the number of registration steps, simplify application requirements, lower institutional costs, and alleviate the burden on enterprises. Second, ensure that market entity registration is conducted in accordance with the law, standardize the rules governing the registration of all types of market entities, and establish uniform provisions on registration matters, procedures, and specific requirements. Third, adopt a problem‑oriented approach, introducing targeted measures to address pressing issues such as cumbersome registration documentation, difficulties in deregistering market entities, and fraudulent registrations, while strengthening ongoing and post‑registration supervision. Fourth, accurately define the role of administrative law by primarily establishing the fundamental system for managing market entity registration, thereby creating institutional space for the State Council’s market regulation authorities to refine relevant regulations based on the type of market entity and actual needs, and to continue deepening reform.
It is worth noting that Yang Hongcan, Director of the Registration Bureau of the State Administration for Market Regulation, stated that the Regulations draw on relevant systems from other jurisdictions and incorporate the experience gained from earlier pilot programs in certain localities to establish a business suspension regime. Under this regime, market entities facing operational difficulties due to natural disasters, accidental catastrophes, public health emergencies, or social security incidents may, at their own discretion, suspend operations for a specified period. The introduction of this suspension mechanism aims to provide struggling enterprises with a temporary institutional option, reduce their ongoing operating costs, and help alleviate their financial burdens. It also lays the institutional groundwork for the formulation of related support policies and measures in China.
“Going forward, we will take the promulgation and implementation of the Regulations as an opportunity to comprehensively carry out all tasks related to their enforcement, continue to deepen reforms of the business registration system, and steadily expand the benefits of these reforms. We will focus on optimizing the business environment, work to establish a market access and regulatory framework that is fair, just, efficient, standardized, and predictable, foster the growth and strengthening of all types of market entities, uphold a fair‑competition market order, and provide robust support for building a new development paradigm and promoting high‑quality development,” said Xiong Maoping.
In addition, Xiong Maoping stated that, in the next phase, efforts will be continuously stepped up to enhance the sharing and utilization of market entity registration information with data from other government departments. First, market entity information will continue to be accurately disseminated and shared via the government information‑sharing platform to relevant competent authorities, thereby advancing the standardization of business scopes, strengthening the coordination between market entity registration and licensing approvals, enabling licensing agencies to promptly grasp the operational status of market entities, and facilitating streamlined market access and compliant operations. Second, work will be accelerated to build a nationwide, real-time‑updated, authoritative, and reliable electronic certificate and license database. Third, the role of market entity registration information in implementing targeted regulatory measures will be further strengthened.
Regulators Have Deployed a Multi‑Pronged Approach to Optimize the Securities Intermediary Industry Ecosystem.
Recently, regulators have issued a series of statements and taken concerted measures to continuously refine institutional mechanisms and intensify efforts to identify and penalize problematic intermediary institutions. Experts interviewed by the Economic Information Daily believe that this recent “package of policy measures” addresses the most salient issues facing intermediary offices under the registration-based system, helping to enhance regulatory effectiveness and improve the professional environment for these entities.
Capital market accounting regulation continues to be strengthened.
The capital market is underpinned by high-quality information disclosure, and auditing and valuation offices serve as the “gatekeepers” that safeguard the quality of financial information disclosed by public companies. At present, accounting oversight in the capital market continues to be strengthened.
The General Office of the State Council recently issued the “Opinions on Further Regulating the Financial Audit Order and Promoting the Healthy Development of the Certified Public Accountant Industry” (hereinafter referred to as the “Opinions”), which calls for strengthening, in accordance with the law, the supervision of accounting offices engaged in securities‑related business. A responsible official from the Ministry of Finance stated that, while China’s certified public accountant industry has achieved notable progress, it also faces challenges such as inadequate fulfillment of the “gatekeeper” role by accounting offices, insufficient regulatory and enforcement efforts, a need to further enhance industry governance, and the requirement for more innovative approaches to ongoing and post‑event oversight. The Ministry of Finance is working jointly with the State-owned Assets Supervision and Administration Commission of the State Council, the China Securities Regulatory Commission, and other relevant departments to accelerate the research, formulation, and refinement of regulations governing the selection and appointment of accounting offices by state‑owned enterprises and listed companies.
At the beginning of this year, the China Securities Regulatory Commission stated in its report on the inspection and handling of audit and valuation offices for 2020 that it would continue to strengthen accounting oversight in the capital market, promote the comprehensive enhancement of professional competence among audit and valuation institutions, foster a sound professional ecosystem, and effectively improve the quality of financial information in the capital market, thereby supporting high-quality economic development.
Shi Donghui, a professor of finance at the Guanghua School of International Financial Studies at Fudan University, told a reporter from the Economic Information Daily that the registration-based system places information disclosure at its core, with financial information serving as the most fundamental and critical component. The issuance and implementation of the “Opinions” will help strengthen the accountability of accounting offices as the gatekeepers of financial information in the capital market, encourage them to rigorously ensure audit quality, reinforce their audit responsibilities, and establish a framework for assigning liability that aligns with the principle of “information disclosure at the core.” This, in turn, will play a positive and constructive role in ensuring the effective functioning of the registration-based system.
Chen Li, Chief Economist and Director of the Research Institute at Chuancai Securities, also believes that strengthening oversight of accounting offices will help ensure the quality of listed companies from the outset and promote high‑quality corporate development. At present, some intermediary institutions have yet to fully assume their responsibilities and obligations as “gatekeepers.” The issuance of the Opinions clarifies these duties and delineates accountability boundaries, thereby fostering the sound and sustainable development of the industry.
Intense signals of stringent regulation are being sent by intermediary institutions.
Since July, the China Securities Regulatory Commission has issued multiple statements, consistently signaling its intention to impose stringent oversight on intermediary institutions.
On August 20, the China Securities Regulatory Commission convened its 2021 mid-year regulatory work conference, noting that the registration-based reform has entered a critical phase of implementation and that all preparatory measures must continue to be carried out in a solid and meticulous manner. Key priorities include advancing reforms to optimize the issuance pricing mechanism, enhancing the quality of prospectus disclosures, further clarifying the responsibilities of intermediary institutions, and improving institutional mechanisms for preventing integrity risks.
On August 13, the China Securities Regulatory Commission released information on the on-site inspections of the 28th batch of companies seeking an initial public offering. The inspection findings revealed that some companies under review exhibited issues such as inappropriate accounting practices, inadequate information disclosure, and insufficient implementation of internal control systems. Additionally, certain intermediary institutions were found to have shortcomings, including non-standard compliance procedures and incomplete working paper documentation.
In early July, the China Securities Regulatory Commission issued the “Guiding Opinions on Urging Securities Offices to Fulfill Their Duties and Responsibilities in Investment Banking under the Registration-Based System,” further strengthening oversight of investment banking activities such as sponsorship and underwriting, and financial advisory services under the registration system, thereby better enabling intermediary institutions to serve as gatekeepers.
Meanwhile, some intermediary institutions have already received penalties or are under investigation.
Public records show that several intermediary institutions are currently under investigation. As of the evening of August 20, the Shanghai and Shenzhen stock exchanges had collectively suspended IPO reviews for 42 companies. According to information disclosed by the exchanges and multiple listed companies, the primary reason is that the issuer’s valuation office, Kaiyuan Asset Appraisal Co., Ltd.; the law office, Beijing Tianyuan Law Office; the sponsor, Hualong Securities Co., Ltd.; and the reporting accountant, Zhongxing Cai Guanghua Certified Public Accountants (Special General Partnership), have all been placed under investigation by the China Securities Regulatory Commission. Consequently, refinancing or merger-and-acquisition plans for eight listed companies, including Zhonglai Shares and Dahao Technology, have been terminated.
In early August, the China Securities Regulatory Commission also disclosed 10 disciplinary actions against securities offices, with a total of seven brokerage offices and 14 sponsor representatives receiving penalties.
Shi Donghui believes that the recent series of measures introduced by regulators have been officely grounded in both problem‑oriented and goal‑oriented approaches. Addressing pressing issues such as generally subpar professional standards among intermediary institutions under the registration‑based system, an incomplete institutional framework, and insufficient market‑based oversight mechanisms, these measures adhere to the principles of law‑based regulation and a holistic, root‑cause‑addressing approach. As a result, they are helping to enhance regulatory effectiveness and lay a solid foundation for the high‑quality development of the capital market.
Regarding how to enhance the professional quality of intermediary institutions, he proposed the following measures: First, expedite the introduction of an evaluation mechanism for sponsor institutions’ information disclosure. Focusing on key issues such as the effectiveness and relevance of the prospectus, as well as the objectivity and fairness of financial reporting conclusions, establish and promulgate a standardized evaluation framework to assess sponsors’ verification and validation of the truthfulness, accuracy, and completeness of issuers’ disclosures, thereby institutionalizing safeguards to ensure that intermediaries fulfill their duties and maintain rigorous oversight. Second, conduct research and introduce a legal‑verification mechanism for prospectuses to strengthen the standardization and rigor of application documents, thus improving the quality of information disclosure at its source. Third, accelerate the development of professional practice guidelines and review standards; based on a thorough assessment of intermediary institutions’ compliance challenges, formulate relevant codes of conduct, clearly define due‑diligence requirements, and raise overall professional standards.

Six departments emphasized that tools such as the reserve requirement ratio will be employed to provide financial support for rural revitalization.
Recently, the People’s Bank of China, the Ministry of Agriculture and Rural Affairs, the Ministry of Finance, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the National Rural Revitalization Administration jointly convened a videoconference on “Financial Support for Consolidating and Expanding Poverty-Alleviation Achievements and Comprehensively Advancing Rural Revitalization.” The meeting emphasized leveraging monetary policy tools such as relending, rediscounting, and the reserve requirement ratio to provide financial support to institutions serving rural revitalization, while also ensuring rigorous assessment and evaluation of their performance in this area.
Experts believe that the measures introduced at this meeting constitute a structural credit policy. In light of the People’s Bank of China’s earlier symposium on the monetary and credit situation among financial institutions, it cannot be ruled out that targeted reserve requirement ratio cuts may follow, extending to rural areas and agricultural entities, including county-level financial institutions, thereby further bolstering financial institutions’ support for rural revitalization.
The meeting reviewed the progress and outcomes of financial poverty alleviation efforts. The financial sector has remained officely committed to the fundamental strategy of “targeted poverty alleviation and targeted poverty eradication,” establishing and improving a comprehensive system of policies, organizational structures, financial products, and services. As a result, financial service gaps have been largely eliminated, and the capacity and quality of rural financial services have been significantly enhanced. Since the launch of the battle against poverty, financial institutions have disbursed 9.2 trillion yuan in targeted poverty‑alleviation loans, providing support to more than 90 million impoverished individuals.
The meeting called for making every effort to provide financial support to consolidate and expand the achievements of poverty alleviation and to comprehensively advance rural revitalization. During the transition period, it is essential to strictly implement the “four no‑removals” policy, maintain overall stability in financial support, and continue to assist poverty‑alleviated areas and populations in their development. Focus should be placed on key areas such as ensuring an effective supply of grain and other important agricultural products, as well as on priority groups like new types of agricultural business entities, to deliver robust financial services. Efforts must also be intensified to improve basic rural financial services, including payment systems and credit reporting. Large banks are urged to accelerate the establishment of a sound financial service framework for rural revitalization, while small and medium-sized rural financial institutions should adhere to their “three‑service” operating principle—serving local communities, small and micro enterprises, and urban and rural residents—to enhance their capacity to provide financial support for rural revitalization. Furthermore, efforts should be made to expand the coverage, diversify the product offerings, and raise the standards of agricultural insurance; building on the central government’s decision to broaden the scope of full‑cost insurance and planting‑income insurance for the three major grain crops, the coverage of insurance for locally distinctive and advantageous agricultural products should be continuously extended.
The meeting emphasized the need to further strengthen policy coordination. It called for better leveraging the role of government-backed financing guarantee institutions by abolishing or lowering profit‑performance targets for these entities. Additionally, it urged the full exploitation of big data resources in agriculture and rural areas, the effective integration and sharing of agricultural credit information, the refinement and expansion of the roster system for new types of agricultural business entities, and the establishment of a platform to facilitate financial services for rural areas.

Commercial & Corporate
Local carbon-peaking roadmaps have been released one after another.
Under the guidance of the “dual carbon” goals, local roadmaps for peaking carbon emissions are rapidly taking shape. According to the 14th Five-Year Plans unveiled across regions, numerous provinces and municipalities—including Shanghai, Beijing, and Jiangsu—have set targets to achieve peak carbon emissions ahead of schedule and as early as possible. Detailed implementation plans at the local level have been released in quick succession; overall, optimizing industrial and energy structures remains the central focus. Notably, while strictly regulating high‑carbon and high‑energy‑consumption projects, many localities are also stepping up positive policy guidance by establishing near‑zero‑carbon emission demonstration zones.
　The Central Economic Work Conference held at the end of 2020 called for the swift formulation of an action plan to peak carbon emissions before 2030, while supporting regions with the necessary conditions to reach peak emissions ahead of others. According to the “14th Five-Year” plans unveiled across the country this year, numerous provinces and cities—including Shanghai, Beijing, and Jiangsu—have already set targets to achieve peak carbon emissions early and ahead of schedule, with some areas even having already attained their peak‑carbon goals.
At the 2021 China Currency Brokerage Forum, Huo Xuewen, Director of the Beijing Local Financial Supervision and Administration, stated that Beijing has already reached peak carbon emissions and will now move steadily toward carbon neutrality.
As clear timelines take shape, local action plans for peaking carbon emissions are also being rolled out at an accelerated pace. Overall, reducing carbon emissions by optimizing industrial and energy structures remains the central focus.
The Jiangsu Provincial Department of Ecology and Environment has issued the “2021 Work Plan for Promoting Carbon Peaking and Carbon Neutrality,” which outlines the establishment of a carbon‑peaking action framework structured as “1+1+6+9+13+3.” The plan emphasizes advancing carbon‑peaking efforts in key sectors and strictly controlling the approval of new high‑energy‑consumption, high‑pollution projects. Meanwhile, the Shanghai Municipal Government has released the “Shanghai Ecological and Environmental Protection Plan for the 14th Five-Year Period,” calling for carbon reduction to serve as the overarching driver of a comprehensive green transformation of the economy and society. The plan further commits to continuously restructuring the four major sectors—energy, industry, transportation, and agriculture—promoting widespread adoption of green, low‑carbon lifestyles and consumption patterns, and strengthening the institutional framework for addressing climate change.
Judging from the “roadmaps” of carbon‑peak plans across various regions, while maintaining strict controls over the approval and operation of high‑carbon‑intensity and high‑pollution projects, many localities are also strengthening positive guidance by establishing near‑zero‑carbon‑emission demonstration zones.
The Ecology and Environment Department of the Guangxi Zhuang Autonomous Region has issued the “Implementation Opinions on Deeply Promoting High-Quality Development of Ecological and Environmental Protection Services”; Hangzhou recently adopted the “2021 Work Task List for Peaking Carbon Emissions and Achieving Carbon Neutrality,” unveiling the first batch of 12 low-carbon pilot projects; and the Hubei Provincial Department of Ecology and Environment will soon launch a number of near-zero‑carbon pilot and demonstration projects.
Experts point out that, at present, most Chinese cities have yet to reach peak carbon emissions. Consequently, leading by example in well‑positioned regions will be a key driver for China to achieve its carbon‑peak target and its vision of carbon neutrality.
Given the variations across regions in economic models, total carbon emissions, emission structures, progress, and trends, pioneering efforts must also be tailored to specific approaches. Industry experts recommend that each region adopt strategies suited to its local conditions, leverage its unique resource and environmental advantages, and develop tailored peaking plans, prioritize key areas, and map out implementation pathways, thereby achieving a differentiated yet inclusive low-carbon transition.
Xiong Yuan, Chief Macro Analyst at Guosheng Securities, believes that action plans should be tailored to local conditions and highlight regional characteristics. For instance, relatively economically developed provinces and municipalities such as Zhejiang, Beijing, and Shanghai could prioritize technological innovation and structural transformation; provinces with strong industrial foundations and abundant resources, like Hebei and Jiangsu, might emphasize the green transformation of industry; western provinces such as Gansu and Ningxia can leverage their endowment advantages to vigorously develop new energy; and provinces with high forest coverage, like Sichuan and Fujian, could focus on enhancing ecological carbon sinks.
On the front of supporting policies, Liu Xiangdong, Deputy Director of the Department of Economic Research at the China Center for International Economic and Trade Exchanges, recommends further refining incentive‑based economic measures—such as fiscal, tax, and pricing policies—to steer capital and technology toward green, low‑carbon sectors. He also calls for gradually expanding the coverage of the carbon market, improving carbon pricing mechanisms, diversifying trading products and methods, and implementing nature‑based solutions to enhance carbon sinks and curb greenhouse gas emissions. At the same time, the allocation of targets across regions—whether in terms of overall caps, intensity limits, or the pace of carbon‑emission growth—should be made more scientific and equitable. Furthermore, a unified national market for energy‑use rights and a carbon‑emissions‑rights trading system should be refined, granting greater autonomy to local governments and market entities in decarbonization efforts and independent trading activities.
Capital activity is robust across all segments of China’s greater health industry, with the digital healthcare sector particularly favored.
On August 26, PwC released its report, “Mid-Year Review and Outlook of M&A Activity in China’s Healthcare Services Sector for 2021,” which revealed that since the launch of the new healthcare reform, capital activity across various segments of China’s greater health industry has remained robust, with hospital‑investment strategies increasingly focused on scaling up and pursuing chain‑based expansion. In the first half of 2021, the digital health sector was particularly favored among large‑value transactions in China’s healthcare and wellness space.
Data show that from 2013 to the first half of 2021, the cumulative total of M&A investment in China’s healthcare services exceeded RMB 280 billion. Notably, 2016 and the period from 2019 to the present have witnessed peak levels of industry‑wide M&A activity. In the first half of 2021, M&A deals were predominantly driven by financial investors, accounting for 72% of the total deal value; their investments were concentrated in the digital health sector, encompassing AI‑assisted diagnosis and treatment, healthcare IT, online medical services, and health management, among others. By contrast, strategic investors contributed only 28%, with their transactions largely focused on controlling acquisitions of general hospitals as well as specialized facilities in areas such as medical aesthetics, IVF, and maternal and child health.
“Since the launch of the new healthcare reform, investment enthusiasm in China’s greater health industry has risen sharply as market awareness has improved, with robust capital activity across various sectors. Hospital‑related investments have been characterized by a growing number of controlling‑interest acquisitions of for‑profit hospitals and an accelerating trend toward “group‑based” and “chain‑based” operations. Looking ahead, as hospital‑relief‑oriented investments and debt‑restructuring initiatives are unwound, and as cross‑border investors and emerging segments undergo transformation and reshaping, China’s greater health industry is poised to achieve symbiotic growth and shared prosperity between the sector and capital in the post‑pandemic era,” said Qian Liqiang, Managing Partner for Domestic Market and Healthcare M&A Services at PwC China Mainland and Hong Kong.
Qian Liqiang believes that China’s healthcare and greater health industry boasts substantial room for growth, and that the timing for investment in this sector is now quite mature.
Specifically, hospitals and clinics currently operate within a regionally fragmented market. Specialty segments such as ophthalmology and dentistry have achieved nationwide or regional chain expansion through mergers and acquisitions, and may see a rebound in performance in the post‑pandemic era. At the same time, these sectors are poised for further growth through strategic transformation, financing‑driven expansion, and bankruptcy restructuring, which in turn demand that investors possess robust capabilities in integrated operations.
Most segments of the out-of-hospital health management industry remain in the early stages of development, with service quality and customer acquisition capabilities serving as the cornerstones of operations, while scalability still requires further validation. Sectors such as genetic testing, exercise rehabilitation, and chronic disease management are attracting investors by unlocking latent demand, whereas areas like health checkups and lifestyle‑oriented beauty services are drawing investment through the promise of scaled expansion and industry consolidation. Looking ahead, out-of-hospital health management will continue to drive growth through innovation in business models and service offerings, while “big‑wins‑small‑players” consolidation will remain a defining theme for both industry evolution and investment activity.
During the pandemic, internet healthcare experienced accelerated growth. Currently, the sector is dominated by pharmaceutical e‑commerce, with medical services playing a secondary role, though its profitability remains to be fully validated. Looking ahead, sustained investment in marketing, physician engagement, and patient education will be essential for industry development. Investors should focus on the core value drivers of target companies, including their business model, profitability, and potential to leverage their ecosystem.
The China Banking and Insurance Regulatory Commission has issued the newly revised Measures for the Administration of Insurance Clauses and Premium Rates of Property Insurance Companies.
On August 26, the China Banking and Insurance Regulatory Commission announced that, in order to strengthen and improve product regulation for property insurance companies and consolidate the institutional foundation of such regulation, it has recently issued the newly revised Measures for the Administration of Insurance Clauses and Premium Rates of Property Insurance Companies (hereinafter referred to as the “Measures”).
The revised Measures comprise six chapters and 40 articles, covering general provisions, product development and rate setting, approval and filing, supervisory management, legal liabilities, and supplementary provisions. Compared with the previous version, the Measures further refine the institutional framework for the regulation of property insurance products, introducing reforms, enhancements, and adjustments to such aspects as the regulatory authorities responsible for insurance clauses and rates, the entities required to submit filings, and the procedures for approval and filing.
The Measures further strengthen the supervision and administration of insurance policy terms and premium rates, stipulating that the heads of the departments responsible for policy‑term and rate development, the compliance officer, and the chief actuary each bear direct responsibility for the management of policy‑term and rate development, the review of policy terms, and the review of premium rates, respectively, and clearly outlining the disciplinary measures for violations by those directly responsible. At the same time, the Measures require insurers to strictly enforce approved policy terms and premium rates, enhance controls over these elements, establish a mechanism for reviewing significant matters, and conduct timely monitoring, evaluation, and periodic clearance of policy terms and premium rates. Moreover, the Measures refine the procedures for the submission and filing of insurance policy terms and premium rates, improve the principles governing policy‑term development and premium‑rate setting, and clarify the respective responsibilities of insurers in reviewing policy‑term development and approving insurance premium rates. In addition, the Measures have been revised and supplemented in other respects.
The revision of the Measures represents an important step in improving the product‑regulation framework for property insurance companies. It will help strengthen and refine product oversight, standardize the development of insurance clauses and the setting of premium rates, and further enhance the overall quality of insurance products in the property insurance sector.
Going forward, the CBIRC will continue to refine the regulatory framework and mechanisms for property insurance products, further strengthen product oversight of property insurers, and better support economic and social development.

Taxation TAXATATION
Improved tax-refund efficiency is boosting the acceleration of foreign trade exports.

According to data released recently by the Ministry of Commerce, from January to July 2021, China’s total import and export value, exports, and imports reached RMB 21.34 trillion, RMB 11.66 trillion, and RMB 9.68 trillion, respectively—each hitting a record high for the same period in history. Correspondingly, the pace of export tax rebates has been accelerating. By integrating its export tax rebate system, the tax authorities have further enhanced the convenience of cross-border trade. In Shenyang, the tax authorities have introduced an “apply‑review‑refund” mechanism for export tax rebates: eligible enterprises can file on the same day, with refunds credited as quickly as within one business day. In Guangxi, taxpayers have experienced the convenience of reducing the number of required forms from seven to two. “Invoice and customs declaration information can now be directly imported, boosting overall filing efficiency by nearly 30%,” said Huang Hui, the business manager responsible for export tax rebates at Junsheng Technology (Qinzhou) Co., Ltd., with satisfaction. It is reported that the national average processing time for standard export tax rebates has been shortened from 13 working days in 2018 to 10 working days in 2019, and further reduced to 7 working days in 2021, thereby alleviating pressure on companies’ capital tie-ups. Starting June 30, the tax authorities integrated the Golden Tax System Phase III with the export tax rebate management system and developed a dedicated export tax rebate management module within the Phase III platform, significantly streamlining procedures for export tax refund (exemption) declarations, document submissions, and certificate issuance. According to officials, the optimized and consolidated new system enables taxpayers to achieve “three increases and three reductions.” The “three increases” include expanding the number of filing channels to three, raising the proportion of data items eligible for “no‑filling” to 70%, and adding five service items and six rebate‑reminder features. The “three reductions” involve cutting the number of rebate declaration forms by one‑third, reducing the number of data fields to be filled by one‑fifth, and simplifying both the scope of rebate‑related matters and the rebate application process.

Tax and fee reduction policies place greater emphasis on improving quality and boosting efficiency.
　Since 2016, China has steadily increased the scale of tax and fee reductions year after year, with last year’s measures reaching an unprecedented level in response to the COVID‑19 pandemic. The seven batches of 28 tax and fee reduction initiatives implemented encompassed emergency measures to support epidemic prevention and control and ensure supply chains, targeted assistance for sectors severely affected by the pandemic, and measures to help businesses resume work and production. The combined impact of these policies, coupled with the carryover effect of the large‑scale tax and fee cuts introduced in 2019, ensured that the total additional relief in 2020 exceeded RMB 2.6 trillion. In 2021, efforts to advance tax and fee reductions were continued, maintaining policy consistency, further consolidating and expanding the gains achieved, promoting the improvement of the modern tax system, and contributing to high‑quality development.
For many years in a row, tax and fee reductions have yielded significant results, effectively easing the burden on businesses. According to data from the National Bureau of Statistics, China’s overall tax burden fell to 15.2% in 2020, placing it at a relatively low level worldwide. Over the past five years, the Chinese Academy of Fiscal Sciences has conducted five consecutive specialized surveys on enterprise costs, receiving questionnaire responses from more than 10,000 sampled offices each time—many of which are small and micro enterprises. The survey findings indicate that businesses generally view the series of cost‑reduction measures, primarily centered on tax and fee cuts, quite favorably. Some enterprises report a strong sense of tangible benefits, while others—particularly certain industries and offices—experience comparatively weaker gains.
Undoubtedly, no single policy can address the needs of every enterprise. Judging from the effects of tax and fee reduction measures, there is, in theory, a “critical‑point effect.” Using the break-even point as a benchmark, offices can be categorized into three groups: first, highly profitable enterprises that operate well above the break-even threshold and exhibit strong resilience to risks; second, offices hovering at or near the break-even point, which are highly vulnerable—any slight shift in external conditions could tip them from profit to loss; and third, severely loss‑making companies, also far from the break-even point, which may be forced out of the market if losses persist. The impact of tax and fee reductions varies significantly across these three categories. Enterprises on the cusp of profitability stand to gain the most, as even a modest reduction in costs could turn a loss into a profit, enabling them to stay afloat. For highly profitable offices, the marginal benefits of such measures are minimal, and the impact is often barely perceptible. Meanwhile, for deeply loss‑making companies, whose very survival is already precarious, even substantial tax and fee cuts may prove insufficient to reverse their fortunes, leaving them with limited sense of benefit as well.
However, the number of offices operating at or near the break-even point varies across different economic cycles and conditions. When the economy is slowing, such offices tend to be more numerous, amplifying the overall marginal impact of policy measures and thereby enhancing the sense of tangible benefit among businesses. Conversely, as downward pressure on the economy intensifies and a significant share of offices falls into loss, the perceived gains from tax and fee reductions become less pronounced. This is because rising costs, shrinking demand, and various uncertainties—stemming from the economic downturn—can substantially offset the positive effects of these fiscal measures. Moreover, under China’s current VAT framework, tax cuts may have limited relevance for deeply loss‑making enterprises, primarily affecting their liquidity rather than their profitability. In sum, the degree of assistance and the resulting sense of benefit that any given tax‑and‑fee reduction policy delivers will differ across offices.
It is important to emphasize that tax and fee reductions, as a key lever for deepening supply-side structural reform, should likewise adhere to the market‑driven principle of survival of the fittest. In any competitive market environment, some offices will prevail while others are weeded out. If enterprises on the verge of exit are allowed to enjoy excessive policy benefits over an extended period, this could run counter to the market’s natural process of selection and elimination, thereby undermining the market’s decisive role in resource allocation. Macro policies should aim to stabilize and regulate economic activity without impeding the market’s fundamental functions, seeking to avert large‑scale waves of bankruptcies, rather than granting all offices uniformly similar policy gains. Accordingly, we ought to conduct empirical assessments of tax and fee reduction measures. The goal is not simply to maximize the overall scale of relief or broaden its coverage; instead, attention should be paid to the policy’s macro‑level precision and sustainability. A comprehensive evaluation of policy effectiveness requires consideration at the macro, aggregate, and cross‑cycle levels, rather than drawing conclusions based solely on surveys of a particular phase or specific industries and offices. In short, assessing such policies demands a dialectical and integrated approach: we must examine the micro‑level—seeing the trees—while also keeping the macro‑level—the forest—in view, avoiding sweeping generalizations and overly broad interpretations.
By contrast, in 2021 China did not provide a clear articulation of the objectives or scale of tax and fee reductions; however, it consistently emphasized the need to ensure policy continuity, stability, and sustainability, while calling for the full implementation of previously established institutional measures to cut taxes and fees. The new round of tax and fee relief policies is primarily targeted at small and micro enterprises and individual business households, given their large numbers and their critical role as sources of employment and technological innovation. It is certain that formulating a series of measures to ease the burden on these small market entities—thereby enhancing their sense of gain—will further invigorate market dynamism, bolster innovation, and inject greater certainty into China’s steady economic recovery and sustained improvement.

Tianjin: Promoting the “Three Nos” Mechanism in a Coordinated Manner and Upholding Strict Discipline to Forge a Steel‑Strong Tax Force
　The Tianjin Municipal Tax System has implemented the pilot requirements of the national tax system’s reform of its discipline inspection and supervision mechanisms, consistently upholding sound conduct and strict discipline. It has fully leveraged the fundamental role of case investigations in addressing root causes, deepened efforts to promote learning from cases, improve management, and strengthen preventive measures, and advanced in an integrated manner the institutional mechanisms that ensure officials dare not, cannot, and do not engage in corruption. By rigorously and pragmatically building a highly disciplined tax enforcement force, it has provided robust support for the reform and development of the tax sector.
Truly managing and strictly enforcing discipline, using cases to promote self-reflection and strengthen the deterrent effect of “daring not to be corrupt.”
“The spirit of the CPC Central Committee’s Eight-Point Decision on Improving Party and Government Conduct, along with the Party’s six major disciplines, constitutes the code of conduct that all Party members must observe. They serve as the yardstick for governing the Party and upholding discipline, and represent an inviolable bottom line—there are no exceptions and no special cases; those who violate laws or discipline will inevitably be held accountable,” stated Sun Zhenghuan, head of the Discipline Inspection Group of the Tianjin Municipal Tax Service Bureau.
The “three‑no” institutional mechanisms are advanced in an integrated manner, with “deterrence” serving as the prerequisite. The Tianjin Municipal Tax Service has convened警示教育 (warning‑education) conferences, enabling those involved to share their experiences and conduct self‑criticism, thereby using real‑world cases to warn and educate others. Party members and cadres are no longer outsiders or mere spectators; instead, case‑based learning strengthens targeted oversight and enhances deterrence. On November 5, 2020, the Discipline Inspection Group of the Tianjin Municipal Tax Service under the State Taxation Administration, together with the Commission for Discipline Inspection and Supervision of a certain district in Tianjin, jointly launched an investigation into Zhang, the director of a tax office within that district’s tax bureau, on suspicion of serious disciplinary and legal violations. The findings established that Zhang violated the spirit of the CPC Central Committee’s Eight‑Point Decision on Improving Party and Government Conduct by improperly accepting banquets, gifts, and travel arrangements offered by entities under his administrative oversight; breached work and integrity discipline by exploiting his position to fraudulently claim and misappropriate rewards disbursed by towns and subdistricts to enterprises; and contravened national laws and regulations by defrauding local government reward funds and embezzling official operating expenses. In April 2021, the district tax bureau imposed the disciplinary sanction of expulsion from the Communist Party on Zhang, along with an administrative penalty of removal from his post and demotion to the rank of a first‑class administrative law enforcement officer.
The case of Zhang, who committed serious disciplinary and legal violations, is one of the most egregious incidents to have occurred in Tianjin’s tax system in recent years—its lessons are grave and deeply sobering. Such misconduct represents a type of official‑related crime that is relatively common and easy to commit within the tax administration, particularly in areas such as tax incentives, invoice management, risk assessment, inspection and auditing, and routine administrative oversight. Zhang assumed a grassroots leadership position before the age of 30, achieving notable accomplishments; yet, as his rank and power grew, his self‑restraint eroded, he succumbed to indulgence in worldly pleasures, and strayed from his original principles and mission. A sense of侥幸 (luck or chance) took hold, leading him to disregard Party discipline and state law. This case serves as a stark reminder: “Do not reach out—once you do, you will be caught.” The high‑pressure stance of comprehensively strengthening Party governance remains unwavering, with accountability being continuously tightened. Departments, units, and leading cadres whose inadequate fulfillment of responsibilities for Party self‑governance and ineffective day‑to‑day education, management, and supervision result in frequent violations among tax officials will be held strictly accountable in accordance with regulations and Party discipline. As for those responsible for disciplinary or illegal conduct, every instance will be investigated and prosecuted without leniency or compromise. Failure to wield discipline effectively, or to uphold one’s own bottom line and red lines, will inevitably lead to a downward spiral into disciplinary and legal transgressions, culminating in severe punishment under Party discipline and state law.
Bold oversight and strict discipline, using cases to strengthen governance and officely locking down the “cannot‑corrupt” cage.
The “three‑no” institutional mechanisms are advanced in an integrated manner, with “cannot” serving as the fundamental principle. In accordance with the unified deployment of the State Taxation Administration and its resident Discipline Inspection and Supervision Group, the Tianjin Municipal Tax Service has conducted in-depth analyses of corruption cases, leveraged modern technological tools, further refined systems, and strengthened oversight. It has earnestly implemented the Pilot Implementation Plan for Further Deepening the Reform of the Discipline Inspection and Supervision System within the Tax System, along with relevant supporting regulations, continuously reinforcing supervision, disciplinary enforcement, and accountability. By focusing on both addressing symptoms and root causes, it has ensured that the tasks and requirements of the reform are thoroughly carried out in the steady advancement of supervisory and disciplinary work. Horizontal coordination is being vigorously promoted to advance joint consultation and governance. Channels for horizontal communication and coordination have been actively expanded, with efforts underway to establish a two‑tier coordination mechanism linking municipal and district tax authorities with local governments and relevant functional departments. Dedicated task forces have been set up, responsibilities clearly defined, information exchange enhanced, and a collaborative regulatory framework established. Regular consultations and field visits are conducted to explore measures for fostering integrity and mutual support, jointly advancing institutional mechanisms for optimizing the business environment, purifying government‑business relations, and cultivating clean yet close ties between tax authorities and enterprises. Dynamic management is employed to improve the quality and efficiency of handling leads. Since the reform of the national and local tax administration systems, the Tianjin tax system has harnessed the case‑management system, made full use of “big data‑driven supervision,” and established a ledger for tracking petitions and lead‑related meetings. This enables real‑time monitoring of ongoing investigative leads, ensuring accurate direction; timely follow‑up and clear instructions are issued for leads nearing expiration or requiring extended processing; and temporarily shelved cases—due to objective constraints—are regularly reviewed and appropriate recommendations formulated, thereby achieving clarity in figures, transparency in disposition, precision in circumstances, and practicality in execution. Focusing on key areas, the “one case, dual investigation” approach consolidates working synergy. Intensifying the “one case, dual investigation” effort in tax‑law violation cases has been designated as a priority for discipline inspection, with particular emphasis on rigorously investigating corruption underlying false invoicing, tax fraud, and links to organized crime and evil forces. The internal rapid‑response mechanism for VAT invoice‑management risks and the pilot program for the electronic issuance of special VAT invoices have been incorporated into the scope of “one case, dual investigation.” The municipal bureau’s discipline inspection group provides ongoing oversight, striving to build a comprehensive, end‑to‑end supervisory mechanism and a lead‑handling process characterized by prompt receipt, meticulous investigation, and appropriate accountability. Communication, liaison, and feedback mechanisms with relevant departments have been refined to ensure standardized and smooth procedures for “one case, dual investigation.” Regulatory improvements are being pursued to strengthen anti‑corruption risk prevention. A working mechanism for preventing integrity risks associated with the exercise of “two powers” has been established to eliminate lax or non‑compliant implementation of regulations. A joint meeting system for assessing and analyzing integrity risks has also been instituted, employing thematic consultations, reminders, and reporting to form a full‑process management chain encompassing continuous prevention, timely early warning, rigorous follow‑up, and accountability. These measures continually enhance effective oversight and management of tax‑enforcement authority. The systems for leaders’ reporting on major matters and for cadre exchanges are being fully implemented. Leaders who have served in the same department for five years, or who, though serving less than five years, are subject to reported leads and whose cases, upon verification, reveal preliminary signs of problematic tendencies, will be reassigned or rotated, with thorough exit audits conducted to ensure proper accountability.
Long-term governance and stringent oversight, driven by case‑based prevention, strengthen the conscious commitment to “not wanting to be corrupt.”
The “three‑no” institutional mechanisms are advanced in an integrated manner, with the “not wanting to” aspect being paramount. Punishment is a means, not an end. The Tianjin municipal tax system adheres to the principle of using cases to strengthen preventive measures, transforming disciplinary decisions—once mere “pieces of paper”—into educational and guiding “lessons,” thereby enhancing taxpayers’ and staff members’ conscious compliance with discipline and law and addressing the root causes of misconduct and violations. It makes full use of the policy strategies and transformative functions offered by the “four forms” of disciplinary action. In the case of Zhang, who committed serious disciplinary and legal violations, given that Zhang voluntarily turned himself in, proactively surrendered illicit gains, fully cooperated with the investigation, truthfully disclosed the facts of his misconduct, and promptly prepared self‑reflection materials demonstrating remorse and a commitment to rectification, the Party Committee’s Discipline Inspection Group of the Tianjin Municipal Tax Service, in consultation with the district Commission for Discipline Inspection and Supervision, and after seeking approval from the Tianjin Municipal Commission for Discipline Inspection and Supervision, decided to reclassify Zhang’s case from the fourth form to the third form. This approach both upholds the rigidity of discipline and preserves human warmth. Special campaigns have been launched to tackle corruption and misconduct close to the people, focusing on issues affecting taxpayers and payers. By aligning the “dual responsibilities” and mobilizing concerted efforts, these initiatives encourage thorough self‑inspection and self‑correction, starting with common and salient problems, conducting comprehensive and in‑depth investigations, and promptly applying targeted remedies to even minor infractions. A 24‑hour “firewall” has been established, continuously strengthening ideological and moral education as well as education on Party discipline and state laws. For key personnel and critical positions, one‑on‑one, face‑to‑face discussions are conducted to deeply uncover hidden risks lurking in their thinking, enabling timely corrective interventions—“whispering warnings” and “red‑face, sweat‑inducing” reminders. In addition, a regular communication mechanism has been put in place with the families of tax officials, involving periodic visits and timely follow‑ups. Through this family‑based monitoring system, the conduct of tax officials is consistently and effectively regulated, guiding Party members and cadres to consciously benchmark themselves against standards, maintain a sense of reverence, remain vigilant, and stay within red lines.
Lu Ziqiang, Secretary of the Party Committee and Director of the Tianjin Municipal Tax Service, stated: “On this new journey, we must bear in mind that to forge iron, one must first be strong oneself, and strengthen our political awareness that comprehensively and strictly governing the Party is an ongoing endeavor.” In his important speech at the rally celebrating the 100th anniversary of the founding of the Communist Party of China, General Secretary Xi Jinping once again underscored the paramount importance of comprehensively and strictly governing the Party, charting the course and providing fundamental guidance for reinforcing Party conduct and clean governance as we embark on a new stage and a new journey. The Tianjin tax system will uphold strictness to the very end, deepen efforts to address both symptoms and root causes, and persistently enforce sound conduct, discipline, and anti-corruption measures. It will fully leverage the integrated, comprehensive effectiveness of the “three no’s” — ensuring that officials dare not, cannot, and do not engage in corruption — to forge a loyal, clean, and responsible tax‑service force. Upholding the people-centered stance, it will continue to enhance the satisfaction and sense of gain among taxpayers and payers, foster a clean and upright political environment, and make active contributions to advancing the modernization of taxation with high quality.

Litigation & Arbitration
The Cyberspace Administration of China has unveiled ten measures to crack down hard on the chaos in “fan circles.”
To further intensify efforts to address these issues, the Cyberspace Administration of China recently issued the “Notice on Further Strengthening Governance of Disorderly Practices in ‘Fan Circles,’” outlining ten measures, including abolishing celebrity ranking lists, refining and adjusting ranking rules, and strictly regulating celebrity management agencies, to take decisive action against the rampant problems plaguing fan communities.
According to reports, since the launch of the special campaign “Qinglang: Rectifying Disorder in ‘Fan Circles,’” local authorities have conducted thorough crackdowns on various forms of misconduct within fan communities, focusing on key areas such as celebrity rankings, trending topics, fan groups, and interactive comments, with notable progress achieved. The issuance of this notice aims to further strengthen governance efforts, hold website and platform operators more accountable, and effectively address the most pressing and challenging issues.
The ten measures outlined in the notice include: abolishing celebrity ranking lists; optimizing and adjusting ranking rules; strictly regulating celebrity management agencies; standardizing fan‑group accounts; prohibiting the display of divisive or antagonistic content; removing violating groups and sections; banning the inducement of fans to spend money; strengthening oversight of program‑related content; imposing strict controls on minors’ participation; and regulating fundraising activities for fan support.
The notice mandates the removal of all ranking lists featuring individual celebrities or groups, and strictly prohibits the launch—whether directly or in disguised form—of personal rankings or related products and features. Only rankings for music releases, film and television works, and similar categories may be retained, but they must not include any personal identifiers such as the names of celebrities. Ranking rules must be refined and adjusted to eliminate features that encourage fans to artificially boost rankings, and paid check-in functions or mechanisms that allow users to increase their check-in counts through membership top-ups are prohibited. The goal is to steer fans’ attention toward the quality of cultural products and to curb the fervor surrounding celebrity worship.
In addition, the notice strictly prohibits the dissemination of content that incites mutual attacks, mandates the diligent fulfillment of management responsibilities, and requires the prompt identification and removal of harmful information—including fan‑to‑fan bickering, abusive language, disparagement, provocation, rumor‑mongering, and targeted attacks—within “fan circles.” It also calls for stringent measures against accounts that violate laws or regulations, effectively preventing public opinion from escalating. Websites and platforms found to be slow to act or inadequately managed will face severe penalties.
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Supreme People’s Procuratorate: Persistent problems such as unauthorized inquiries into, interference with, or meddling in prosecutorial case handling have been effectively curbed.
On the 27th, the Supreme People’s Procuratorate released data on the recording of major matters by procuratorial organs nationwide for the second quarter of this year. During that period, procuratorial organs across the country carried out a targeted campaign to address persistent problems related to violations of the “Three Regulations” on preventing interference in judicial proceedings. They rigorously investigated and dealt with misconduct such as failure to record or inaccurate recording, soliciting favors, and interfering in cases. A total of 59,787 instances of reporting inquiries into or interference with, or involvement in, procuratorial case handling were recorded, with the number declining month by month.
The notice points out that, as the nationwide education and rectification campaign for the procuratorial workforce continues to deepen, the procuratorial organs have achieved significant results in addressing persistent problems related to violations of the “Three Regulations” on preventing interference in judicial proceedings. Persistent malpractices such as unauthorized inquiries into or interference with, and meddling in, prosecutorial case handling have been effectively curbed, leading to a steady decline in the number of corresponding records and reports. According to statistics, procuratorial organs across the country recorded and reported 26,820 cases in April, 18,475 in May, and 14,492 in June.
According to reports, in the second quarter, the vast majority of recorded reports concerned inquiries into and oversight of prosecutorial case handling and related matters, while instances of interference or meddling in such proceedings were relatively rare, accounting for only 3.3 percent. By category of the reporting party’s affiliated institution, the individuals subject to recording and reporting primarily came from outside the procuratorial system. Procuratorial organs at all levels have established and institutionalized a regular working mechanism for implementing and enforcing the “Three Regulations.”
It is reported that, in the next phase, the procuratorial organs will consolidate and deepen the achievements of the first round of education and rectification within the procuratorial workforce, while closely aligning with the second round. With a high degree of political awareness, rule-of-law consciousness, and prosecutorial self-awareness, they will continue to rigorously implement the “Three Regulations,” resolutely resist any unauthorized inquiries into or interference with, or meddling in, prosecutorial case handling, and steadfastly adhere to the principle of “recording every instance of inquiry.” At the same time, while closing the “back doors” through which individuals seek to probe case details or exert undue influence, they will fully open the “front doors” by expanding channels for the public to voice their concerns, thereby continuously ensuring the effective implementation of the “Three Regulations” aimed at preventing interference in judicial proceedings.

The Ministry of Public Security and two other departments have launched the “100-Day Campaign to Combat Drug Trafficking through Postal and Express Delivery Channels.”
In response to the growing trend of drug trafficking via “Internet plus express delivery,” the Ministry of Public Security, the State Post Bureau, and the National Narcotics Control Commission convened a joint meeting on August 27 to launch a 100-day campaign from September 1 to December 10, 2021. The campaign will mobilize concentrated resources and efforts to vigorously crack down on drug-related activities in the postal and courier delivery channels.
In recent years, China’s express delivery industry has grown rapidly, playing a positive role in supporting production, boosting consumption, enhancing convenience, and ensuring smooth circulation. Postal administration authorities at all levels and express delivery enterprises have continuously strengthened preventive and control measures, rigorously enforced real-name registration for acceptance and delivery, conducted thorough inspection of items upon receipt, and implemented mandatory security screening through X-ray machines. They have also explored and promoted effective practices, leading to significant progress in drug‑control efforts along delivery channels. However, some criminals exploit the extensive network coverage and swift transportation and delivery services of these enterprises to engage in cross‑regional smuggling and trafficking of narcotics. Particularly under the conditions of routine epidemic prevention and control, the “Internet plus express delivery” model has emerged as an increasingly prominent avenue for drug trafficking. In response to this trend, the Ministry of Public Security, the State Post Bureau, and the National Narcotics Control Commission have jointly launched a comprehensive campaign to crack down on and rectify drug‑related activities in the express delivery sector.
Du Hangwei, Deputy Director of the National Narcotics Control Commission and Vice Minister of Public Security, pointed out that launching the “100-Day Campaign to Combat Drug Trafficking through Postal and Express Delivery Channels” is a crucial strategic deployment aimed at effectively curbing drug smuggling and trafficking via these channels and comprehensively deepening the “Clean Border” special operation. It responds to evolving trends in the drug situation and addresses pressing drug‑related challenges; it is an imperative step to strengthen source‑control measures, close operational gaps, and leverage the strengths of all stakeholders to tackle difficulties together. Moreover, it represents a significant initiative for the postal and express delivery sector to take proactive action and safeguard the security of delivery channels.

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