JC Master Legal News Issue 988

Release Date:

2021-09-27 18:52

Key Takeaways for This Issue
The China Securities Regulatory Commission, in coordination with public security authorities, has uncovered several major market-manipulation cases.
Since the beginning of this year, the China Securities Regulatory Commission has earnestly implemented the “Opinions on Strictly Cracking Down on Securities Law Violations in Accordance with the Law,” jointly issued by the General Office of the CPC Central Committee and the General Office of the State Council. Adhering to a zero-tolerance policy, the Commission has leveraged the Coordination Task Force for Combating Illegal Activities in the Capital Market as a platform and launched targeted enforcement campaigns as key measures, further strengthening law enforcement cooperation with public security and judicial authorities. It has rigorously prosecuted, in accordance with the law, illegal and criminal activities such as market manipulation, false statements, and insider trading.

Finance & Capital Markets
The China Securities Regulatory Commission, in coordination with public security authorities, has uncovered several major market-manipulation cases.
Since the beginning of this year, the China Securities Regulatory Commission has earnestly implemented the “Opinions on Strictly Cracking Down on Securities Law Violations in Accordance with the Law,” jointly issued by the General Office of the CPC Central Committee and the General Office of the State Council. Adhering to a zero‑tolerance policy, the Commission has leveraged the Coordination Task Force for Combating Illegal Activities in the Capital Market as a platform and used targeted enforcement campaigns as a key tool to further deepen law‑enforcement cooperation with public security and judicial authorities. It has rigorously prosecuted illegal and criminal activities such as market manipulation, false statements, and insider trading in accordance with the law. Recently, following the investigation and conofficeation of cases involving Shi and others manipulating the stock prices of “Zhongyuan Home” and “Litong Electronics,” the CSRC, in collaboration with public security organs, activated a joint investigation into a series of egregious market‑manipulation cases. Drawing on intelligence‑sharing mechanisms and exchange‑monitoring findings, these cases have been designated as priority matters under the CSRC’s 2021 special enforcement campaign. Resources have been concentrated, enforcement coordination strengthened, and progress accelerated. At present, significant advances have been made in probing allegations that certain individuals manipulated the stock prices of “Nanling Civilian Explosives,” “Jinchuang Group,” and “Haozhi Electromechanical.”
Upon investigation, it was found that from August 2020 to December 2020, the group led by Liu Mouye controlled dozens of securities accounts through stock margin financing and entrusted wealth management, allegedly manipulating the stock of “Nanling Civilian Explosives” by leveraging concentrated capital and shareholding advantages to engage in continuous buying and selling, thereby illegally profiting tens of millions of yuan. Meanwhile, Ye Mou, fully aware that Liu Mouye and others were manipulating the price of “Nanling Civilian Explosives,” actively provided relevant assistance and advice, creating favorable conditions for market manipulation and seeking illicit gains. Since 2019, the groups led by Liu Moulong and Yan Mou have been suspected of manipulating the stock prices of “Jinchuang Group” and “Haozhi Electromechanical,” respectively, through methods such as consecutive trading and wash trading, involving substantial sums of money. The investigation also revealed that certain institutional practitioners are suspected of exploiting their official positions to transfer benefits to the manipulative groups. In view of the fact that the illegal conduct of these individuals meets the threshold for criminal prosecution, the China Securities Regulatory Commission has, in accordance with the law, referred relevant case leads to the public security authorities. Recently, the CSRC, in coordination with the public security organs, launched a joint operation and successfully apprehended the principal suspects involved in three market-manipulation cases.
The aforementioned case is a market-manipulation offense perpetrated by an organized criminal group, uncovered through the joint efforts of the China Securities Regulatory Commission and public security authorities. It reveals a shadowy, illicit profit chain involving collusion among manipulative gangs, margin‑financing intermediaries, market brokers, and “black‑mouth” stock analysts—key targets of the CSRC’s zero‑tolerance enforcement approach in recent years. Moving forward, we will continue to implement the “Opinions on Strictly Cracking Down on Securities‑Related Illegal Activities in Accordance with the Law,” earnestly carry out the directives issued at the first meeting of the Coordination Task Force for Combating Illegal Activities in the Capital Market, and further strengthen and refine our collaborative mechanisms with public security and judicial authorities. We will fully leverage the combined strengths of all stakeholders, maintain unwavering enforcement pressure, and rigorously prosecute serious illegal and criminal conduct—including false information disclosure and financial fraud, market manipulation conducted under the guise of “market‑capitalization management,” and insider trading. Upholding comprehensive monitoring, end‑to‑end crackdowns, and all‑round accountability, we will effectively encourage all market participants to respect the law, safeguard investors’ legitimate rights and interests, and ensure the healthy and stable development of the capital market.

China is currently undertaking a comprehensive revision of the Negative List for Market Access (2020 Edition).
On the 24th, Jiang Yi, Deputy Director-General of the Institutional Reform Department of the National Development and Reform Commission, stated at a special press conference held by the Commission that market access is a matter of widespread concern among private entrepreneurs, and that the market access system is one of the most fundamental components of the market‑based economic system.
Jiang Yi stated that, in accordance with the decisions and arrangements of the CPC Central Committee and the State Council, the market access negative list system has been fully implemented. Following the principle of revising the list annually, three versions of the market access negative list have been issued, reducing the number of items from 151 to 123. The “one national list” management model has been comprehensively established, a number of hidden barriers hindering fair market access for all entities have been removed, and the list‑based institutional framework continues to be refined and improved. Moving forward, the National Development and Reform Commission plans to focus on three key areas of work.
First, we will continue to advance the relaxation of market access restrictions. In accordance with the decisions and arrangements of the CPC Central Committee and the State Council, the National Development and Reform Commission and the Ministry of Commerce, together with relevant departments and local authorities, are undertaking a comprehensive revision of the Negative List for Market Access (2020 Edition). The overall goal is to further reduce the number of items on the list compared with the previous version. Public comments are currently being solicited, and we welcome active participation and constructive feedback from all stakeholders. Following due approval procedures, the revised list will be promulgated and implemented.
Second, we will vigorously carry out pilot programs to ease market access. In April this year, with the approval of the CPC Central Committee and the State Council, the National Development and Reform Commission, in collaboration with the Ministry of Commerce, issued the “Opinions on Several Special Measures to Support the Construction of the Hainan Free Trade Port by Relaxing Market Access,” introducing 22 specific measures across sectors such as healthcare, education, culture, and finance, thereby officially launching the first pilot program for easing market access. Moving forward, in alignment with the country’s major regional strategies, we will accelerate the formulation and implementation of special measures to relax market access for Shenzhen’s development as a pioneering demonstration zone of socialism with Chinese characteristics; actively advance the research and drafting of similar measures for Pudong, Hengqin, and other regions; and support Hubei in conducting pilot programs to further liberalize market access.
Third, a mechanism has been established for collecting and publicly reporting cases of violations of the negative list, as well as for assessing the effectiveness of market access. Since the beginning of this year, the National Development and Reform Commission has guided Fujian and Yunnan provinces in conducting comprehensive assessments of market‑access effectiveness, focusing on the implementation of the market‑access negative‑list system, the efficiency of market‑access approval and service processes, and the removal of implicit barriers to entry. These efforts have set a positive example. Going forward, we will further refine the indicator framework for evaluating market‑access effectiveness, gradually expand the scope of such assessments, institutionalize the collection and public disclosure of cases involving violations of the negative list, and ensure smooth channels for market entities to provide feedback on various market‑access issues, thereby fostering a fairer and more transparent market‑access environment.

Serving the New Development Paradigm and Supporting the High-Quality Development of SMEs — Shenzhen Stock Exchange Hosts the SME Investment and Financing Forum
On September 16, the 17th China International Small and Medium Enterprises Fair and the inaugural SME International Cooperation Summit Forum, co-hosted by the Ministry of Industry and Information Technology, the State Administration for Market Regulation, and the People’s Government of Guangdong Province, opened in Guangzhou. On September 17, the Shenzhen Stock Exchange hosted a sub-forum on SME financing and investment, themed “Financial Support for Building a New Development Paradigm and Fostering High-Quality Growth of SMEs.” The event aimed to thoroughly implement the spirit of General Secretary Xi Jinping’s important speeches and the decisions and arrangements of the CPC Central Committee and the State Council, actively support the national strategy of innovation-driven development, bolster the high-quality growth of SMEs and the private sector, and advance the continued deepening of capital market reforms and high-standard opening-up. In strict compliance with epidemic prevention and control requirements, the sub-forum was held in a hybrid format—combining an on-site main venue with online live streaming—and was attended by Xu Kemin, Chief Economist of the Ministry of Industry and Information Technology, Sha Yan, General Manager of the Shenzhen Stock Exchange, and other dignitaries, who delivered remarks.
Xu Keming stated that General Secretary Xi Jinping attaches great importance to the development of small and medium-sized enterprises (SMEs), calling for stronger financial support for market entities and continued backing for SMEs’ innovation and growth. The Ministry of Industry and Information Technology will focus on three key areas—policies, services, and the business environment—while prioritizing two critical priorities: financing facilitation and the protection of rights and interests. By closely targeting the enhancement of SMEs’ innovation capacity and professionalization, the ministry will establish and refine an “3-2-1” working framework for SMEs, strive to optimize the development environment, and further invigorate market entities. It will also intensify efforts to cultivate high‑quality enterprises across different tiers, promote the modernization of industrial and supply chains, and foster closer collaboration between industry and finance to drive SMEs’ innovative development.
Sha Yan stated that supporting the innovative development of small and medium-sized enterprises is a major political responsibility of the capital market. Under the unified leadership of the China Securities Regulatory Commission, the Shenzhen Stock Exchange will uphold the “two unwavering commitments,” steadfastly pursue a development path characterized by market‑orientation, rule of law, and internationalization, consolidate and deepen the reform of the registration‑based system on the ChiNext Board, draw on and replicate best practices from around the world in serving SMEs, and, with a focus on technological innovation and strategic emerging industries, provide support to growth‑oriented startups and innovative enterprises as well as to specialized, refined, distinctive, and innovative “little giant” companies. The Exchange will launch more innovative products that directly channel financing to the real economy, strive to build a high‑quality center for innovative capital and a world‑class stock exchange, and work hand in hand with all market participants across different segments to deliver stronger support for fostering a new development paradigm and promoting high‑quality growth.
This one-day forum featured keynote speeches by distinguished guests on topics including policies for the development of small and medium-sized enterprises (SMEs) and practical experience in financing and investment, ways to fully leverage the capital market’s role in facilitating investment and financing, and how the registration-based reform of the ChiNext board can support SMEs’ innovative growth. A roundtable discussion was also held on the theme “The Capital Market as a Catalyst for SMEs to Become Key Hubs of Innovation.” During the event, six “specialized, refined, distinctive, and innovative” SMEs conducted on-site investment‑raising roadshows via the Shenzhen Stock Exchange’s Innovation and Entrepreneurship Investment‑Financing Service Platform (V‑Next).
More than 100 representatives from the SME Bureau of the Ministry of Industry and Information Technology, the Second Department of Markets of the China Securities Regulatory Commission, the Enterprise Research Institute of the Development Research Center of the State Council, the Guangdong Securities Regulatory Bureau, local financial regulatory authorities, the Shenzhen Stock Exchange, the Shanghai Stock Exchange, the National Equities Exchange and Quotations Company, the Hong Kong Stock Exchange, as well as relevant industry associations, small and medium-sized enterprises, financial institutions, research institutes, and the media, attended the event in person.

The Beijing Stock Exchange has issued the Measures for the Administration of Investor Suitability.
To ensure the effective functioning of the Beijing Stock Exchange’s market‑based financing and trading mechanisms, promote the integration of technology and capital, foster a healthy market ecosystem, and cultivate a culture of rational, long‑term investing, the Beijing Stock Exchange, following thorough research and deliberation, issued the “Administrative Measures on Investor Suitability of the Beijing Stock Exchange (Trial)” on September 17, 2021. The measures set the minimum threshold for individual investors at RMB 500,000 in securities‑related assets, while no such threshold is imposed on institutional investors. Effective from the date of the rule’s promulgation, investors may begin to schedule the activation of their trading access on the Beijing Stock Exchange.
Following the launch of the Beijing Stock Exchange, individual investors must meet a threshold of having an average daily securities asset balance of RMB 500,000 over the 20 trading days immediately preceding the activation of trading access, and possess at least two years of experience in securities investment. Investors who had already obtained trading access to the Select Tier prior to the Beijing Stock Exchange’s opening will have their trading permissions automatically extended to the Beijing Stock Exchange. In addition, the Beijing Stock Exchange will continue to pursue integrated development and regulatory coordination with the Innovation and Basic tiers of the New Third Board; investors holding trading rights for the Innovation or Basic tiers of the New Third Board will have their trading scope encompassing shares listed on the Beijing Stock Exchange.
It should be noted that, from the date of this rule’s issuance until the Beijing Stock Exchange commences trading, investors seeking to trade stocks on the Select Tier must continue to meet the requirement of having RMB 1 million in securities assets. Meanwhile, to facilitate investors, effective immediately, investors may apply to their brokerage offices to schedule the activation of trading access for the Beijing Stock Exchange.
In tandem with the release of the relevant rules, the Beijing Stock Exchange has begun guiding securities offices to formulate and refine their suitability‑management policies and procedures, steadily advance investor account‑opening appointments, and ensure thorough risk‑disclosure measures, thereby creating favorable conditions for deepening the reform of the New Third Board and ensuring the smooth launch of the Beijing Stock Exchange.
Major central and local measures have been implemented to crack down rigorously on illegal activities in the securities market.
In response to illegal and non‑compliant practices in the capital markets—such as financial fraud, market manipulation, and insider trading—authoritative regulatory measures at both the central and local levels have been rolled out one after another. Recently, the China Securities Regulatory Commission (CSRC) convened the inaugural meeting of the Coordination Task Force on Combating Illegal Activities in the Capital Markets, emphasizing a continued focus on these unlawful behaviors. Meanwhile, securities regulatory authorities in numerous regions—including Shanghai, Beijing, Xinjiang, and Hunan—have also launched coordinated crackdowns. As signals of “strict regulation” continue to be sent, a number of high‑profile cases involving securities‑related violations in key sectors have entered the enforcement phase this year.
Central and local policies have been rolled out one after another.
On September 16, the China Securities Regulatory Commission (CSRC) convened the inaugural meeting of the Coordination Task Force on Combating Illegal Activities in the Capital Market. The meeting underscored the need to strengthen penalties for major and high‑profile cases, continuing to focus on illegal and non‑compliant practices such as financial fraud, market manipulation, and insider trading. It also emphasized enhancing cooperation between administrative and criminal law enforcement and judicial authorities, accelerating the establishment of a multi‑layered accountability framework that seamlessly links administrative enforcement, civil recovery, and criminal sanctions, thereby further fostering a robust deterrent effect rooted in “zero tolerance.”
This is not the first public warning issued by regulators this year. Earlier, on August 27, the Cyberspace Administration of China announced a special campaign to rectify the illegal collection, editing, and dissemination of financial information by commercial websites and “self-media” platforms, banning and shutting down a number of self-media accounts that had been acting as “black mouths” and drawing strong public criticism. On August 28, major platforms—including WeChat, Douyin, Weibo, Youku, and Kuaishou—also issued notices, launching a targeted crackdown on self-media practices such as illegally publishing financial news, distorting and misinterpreting economic policies, pessimistically predicting or shorting financial markets, sensationalizing content to attract attention, spreading rumors, and engaging in extortion and blackmail, with the aim of purifying the online environment.
Meanwhile, securities regulatory authorities across the country have also been actively taking measures to carry out concentrated crackdowns on securities‑related illegal activities. On September 8, the Shanghai Securities Regulatory Bureau announced on its website that it had recently joined forces with the Shanghai Cyberspace Administration to launch a special campaign targeting online information related to illegal securities and futures activities. Notably, in order to implement the “Opinions of the CPC Central Committee and the State Council on Strictly Cracking Down on Securities‑Related Illegal Activities in Accordance with the Law,” and in line with the Financial Stability and Development Committee of the State Council’s guiding principle of “establishing sound systems, non‑interference, and zero tolerance,” the China Securities Regulatory Commission has recently orchestrated a series of targeted enforcement actions. As a result, securities regulatory bureaus in numerous localities—including Beijing, Shanghai, Xinjiang, Hunan, and Shenzhen—have successively launched comprehensive, centralized rectification campaigns and achieved significant progress.
The bond market has likewise sent a strong signal of stringent regulatory oversight. On September 17, the China Securities Regulatory Commission (CSRC) issued a statement vowing to resolutely crack down on illegal and non‑compliant activities in the bond market. Going forward, the CSRC will deepen enforcement coordination with the People’s Bank of China, the National Development and Reform Commission, and other relevant authorities, further sharpen its focus on key enforcement priorities, and adopt a multi‑pronged approach to investigate each case thoroughly. It will rigorously pursue, in accordance with the law, violations such as fraudulent issuance, false disclosure of information, malicious asset transfers, and misappropriation of proceeds from bond offerings, while officely combating deliberate attempts to evade debt obligations. The CSRC is committed to safeguarding fairness and order in the bond market and protecting the legitimate rights and interests of bond investors.
Punishment for major and high-profile cases has been further strengthened.
In recent years, illegal and non‑compliant practices in the securities market, such as market manipulation and insider trading, have remained a key focus of rigorous enforcement by regulatory authorities. Penalties for major and high‑profile cases have been further strengthened, and a number of landmark cases in priority areas have also entered the sanctioning process.
Recently, the Intermediate People’s Court of Jinhua City, Zhejiang Province, delivered its first-instance verdict in the case involving market manipulation and other illegal activities by Wu Chengze and others. The principal offender, Wu Chengze, was sentenced to 19 years in prison and fined RMB 79.03 million. Additionally, 14 other members of the group received prison terms ranging from 2 to 6 years. This case also set a new record for the longest prison sentence handed down in an A-share market‑manipulation case. Between October 2016 and March 20, 2019—over 595 trading days—the Wu Chengze gang engaged in “hat‑grabbing” trading to manipulate stocks on 465 occasions, amassing illicit profits of RMB 270 million. They also carried out fund‑based manipulations—through coordinated and continuous trading—in seven stocks, generating another RMB 260 million in illicit gains, for a total profit of RMB 530 million.
In addition, high-profile cases of securities‑related violations—such as LeEco’s financial fraud and the defaults on bonds issued by Huachen and Yongmei—have all been subject to appropriate penalties. The first-ever representative‑class action in a securities dispute—the case involving Kangmei Pharmaceutical’s liability for false statements—has already been initiated. Meanwhile, Kangde Xin has completed its delisting and removal from the stock exchange.
Earlier, the China Securities Regulatory Commission (CSRC) released data showing that since 2020, it has initiated investigations into 90 market-manipulation cases and 160 insider-trading cases, accounting for 52% of all new cases opened during the same period. The CSRC has imposed administrative penalties in 176 market-manipulation and insider-trading cases, with total fines and confiscations exceeding RMB 5 billion. Additionally, it has referred 41 leads related to suspected market-manipulation crimes and 123 leads involving insider trading to public security authorities—collectively representing 76% of all cases referred—and has transferred 330 suspects to the police.
Based on this year’s developments, relevant authorities have steadily intensified their crackdown on illegal and non-compliant activities in the securities market. According to data from Tonghuashun, as of the time of writing, 57 listed companies have been placed under investigation this year, with the subjects of inquiry ranging from the companies themselves to their senior executives and shareholders. The reasons for these investigations include violations of information disclosure requirements, insider trading, short-term trading, and breaches of securities and futures laws and regulations, among others.
The CSRC emphasized that, going forward, it will strengthen the rule-of-law foundation by continuing to intensify efforts in areas such as expanding the supply of legal frameworks for the capital market, streamlining civil compensation channels, improving market‑based constraint mechanisms, and bolstering the development of a credit system for the capital market, thereby accelerating the establishment of a liability‑based legal regime for the capital market with Chinese characteristics. At the same time, it will reinforce expectation management, fully leverage the deterrent effect of investigating and prosecuting landmark cases, expedite the institutionalization and long-term sustainability of mechanisms for news and public opinion work in the capital market, and urge all types of market participants to officely embrace the principle of voluntarily respecting the law and upholding integrity, thus fostering a favorable external environment for the development of the capital market.

Commercial & Corporate
Ministry of Commerce: During the National Day holiday, the market for daily necessities is well-supplied, with a wide variety of products and stable prices.
Today, the Ministry of Commerce held a press conference on ensuring market supply during the holiday season and unlocking consumption potential. The briefing was chaired by Shu Juting, Deputy Director-General of the Department of Finance and spokesperson for the Ministry of Commerce. Yin Hong, Deputy Director-General of the Department of Circulation Development; Wang Bin, Deputy Director-General of the Department of Consumption Promotion; and Zhu Guangyao, Second-Level Inspector (at the deputy director-general level) of the Department of Trade in Services, attended and briefed reporters on relevant developments.
Wang Bin, Deputy Director-General of the Department of Consumer Promotion: It is my pleasure to take this opportunity to brief you on the work undertaken by the commerce authorities to ensure adequate market supplies during the National Day holiday and to unlock consumers’ spending potential, and to join my two colleagues in addressing the questions of our journalist friends.
The National Day holiday is a major national celebration and a prime period for consumer spending and leisure. During this traditional peak season, ensuring adequate market supply and supporting consumer demand is of great importance. Overall, the consumption market during this year’s National Day holiday is expected to maintain robust and stable growth, with ample supplies of daily necessities, a wide variety of products, and stable prices.
First, supply is ample. Wholesale markets, chain supermarkets, and agricultural markets across the country have generally increased their inventories of essential commodities—such as grain, edible oil, meat, vegetables, fruits, and aquatic products—tailored to the characteristics of the holiday season, thereby ensuring market stability. Key distribution enterprises and e‑commerce platforms are proactively aligning with the trend of consumption upgrading by expanding the availability of green, smart, and health‑oriented products, broadening the range of new‑model and high‑quality offerings, and better meeting consumers’ growing demand for personalized, diversified, and premium‑quality goods.
Second, prices remained stable. According to monitoring by the Ministry of Commerce, nationwide grain and edible oil prices have been very steady recently, while prices for vegetables, fruits, meat, and aquatic products have generally declined, with poultry prices registering a slight increase. From September 13 to 19, wholesale pork prices fell 2.3% compared with the previous week, wholesale mutton prices dropped 0.1%, and wholesale beef prices remained unchanged. The average wholesale price of 30 types of vegetables decreased by 0.7%.
Third, the market is thriving. The holiday consumption landscape will be characterized by robust growth and stability. Affected by the pandemic, this year’s National Day spending will highlight four major trends compared with previous years: first, local, nearby‑area, and at‑home consumption will emerge as new hotspots; second, green, smart, and health‑focused consumption will enjoy growing favor; third, demand for personalized, high‑quality products will rise, keeping mid‑to‑high‑end consumption strong; and fourth, the integration of online and offline channels will accelerate, driving continued growth in experiential and scenario‑based consumption.
The Ministry of Commerce attaches great importance to ensuring the supply of essential goods and boosting consumption. Recently, it issued the “Notice on Strengthening Epidemic Prevention, Ensuring Supply and Stabilizing Prices to Safeguard the Market Supply of Essential Goods During the Mid-Autumn and National Day Holidays,” the “Notice on Further Advancing Key Tasks to Promote Consumption in the Current Business Sector,” and the “Notice on Ensuring Workplace Safety in the Business Sector During the 2021 Mid-Autumn and National Day Holiday.” These documents set out specific arrangements and deployments for related work. Local authorities have actively implemented measures to ensure thorough execution, making every effort to secure market supply and safeguard residents’ consumption during the National Day holiday. The main measures adopted include the following:
First, strengthen market monitoring. Conduct on-site investigations at production bases, wholesale markets, supermarkets, agricultural markets, and other frontline production and business entities; enhance market surveillance and early‑warning systems for essential commodities such as rice, flour, edible oil, meat, eggs, dairy products, and vegetables; and gain a comprehensive understanding of supply‑demand dynamics and price trends. Closely track market developments, promptly release relevant information, and stabilize market expectations.
Second, we will strengthen the organization of supply sources. We will guide key enterprises responsible for ensuring supply to make appropriate production and operational arrangements during the holiday period, and step up efforts to produce, transport, and secure the supply of essential goods to priority regions. We will also instruct commercial and distribution enterprises to adjust their inventories in line with holiday‑specific consumption patterns, increase stock levels of daily necessities, and boost the frequency of restocking and shelf replenishment, thereby effectively safeguarding market supplies. Any abnormal situations, such as concentrated purchasing, will be promptly identified and appropriately addressed to ensure that markets remain adequately stocked and supply chains remain uninterrupted. In Beijing, Inner Mongolia, Guangxi, Ningxia, and other localities, large commercial and distribution offices have been directed to expand their procurement and inventory levels of vegetables, meat, and other essential items. In Harbin, recent data show that major agricultural markets are receiving 1,600 tons of vegetables per day, with an inventory of 5,500 tons, while the city’s daily pig‑slaughtering capacity exceeds 600 tons—sufficient to fully meet residents’ consumption needs.
Third, we strengthened the safety net. We mobilized key regions to leverage their regional joint‑guarantee and supply‑coordination mechanisms, ensuring emergency supply in extreme circumstances. We directed local commerce authorities to enhance communication and coordination with relevant departments, so that, in the event of an outbreak, they can ensure the steady provision of essential goods to communities under lockdown, thereby safeguarding the basic livelihoods of the population. In Fujian, major wholesale markets, supermarkets, and e‑commerce platforms have been tasked with maintaining market supplies in affected areas; recently, the province’s average daily supply of major necessities has exceeded 20,000 tons, with ample inventories and stable deliveries. In Heilongjiang, a dedicated task force for market supply has been established, implementing a “point‑to‑point” delivery system to ensure the availability of essential items in locked‑down residential compounds.
Fourth, we strengthened reserve management and regulation. Ahead of the holiday, the Ministry of Commerce, in coordination with relevant departments, released central reserves of beef and mutton to seven provinces and municipalities, meeting the festive consumption needs of residents in ethnic minority areas. Since the beginning of this year, a total of over 90,000 tons of central reserve pork and 8,300 tons of beef and mutton have been distributed, along with 42,000 tons of frozen pork from the central reserve. Local authorities have been guided to appropriately increase government reserves and to release them at appropriate times. In Hainan and other regions, affordable vegetables have been made available on the market, while Qingdao has established 120 wholesale‑retail outlets citywide to distribute government‑reserved meat and vegetables.
Fifth, we will invigorate the holiday market. Guiding localities to organize a wide range of consumption‑stimulating activities tailored to regional conditions—while maintaining routine epidemic prevention and control measures and ensuring workplace safety—we aim to harness the momentum of festivals to boost urban vitality and commercial activity. Shanghai has launched its Golden Autumn Shopping and Tourism Season; Yunnan is rolling out the “Golden Autumn Shopping” series of consumer‑boosting events; Gansu is holding a series of promotions to mark National Day; Jinan is hosting a Golden Autumn Consumption Season; and numerous other regions, including Hubei, Nanjing, and Zhengzhou, will issue consumer vouchers to benefit residents during the National Day holiday.
During the holiday period, commercial authorities at all levels will rigorously implement routine epidemic prevention and control measures, strengthen emergency on-duty arrangements and market monitoring, closely track the impact of sudden events such as typhoons, floods, and outbreaks on market supply, and coordinate key enterprises to prepare for the emergency dispatch of essential supplies, thereby ensuring that the public enjoys a joyful and peaceful National Day holiday.

The 2021 Top 500 Chinese Private Enterprises Have Been Announced, with Five Shanxi-Based Private Offices Making the List.
On September 25, the All-China Federation of Industry and Commerce released the 2021 Ranking of China’s Top 500 Private Enterprises. Five Shanxi-based private companies—Shanxi Pengfei Group Co., Ltd., Shanxi Lubao Group, Shanxi Jinnan Iron & Steel Group Co., Ltd., Shanxi Jianbang Group Co., Ltd., and Shanxi Jincheng Iron & Steel Holding Group Co., Ltd.—were included on the list.
The rankings show:
The total operating revenue of the Top 500 private enterprises reached RMB 35.12 trillion, an increase of 16.39%.
Total assets amounted to RMB 50.73 trillion, an increase of 37.25%.
Net profit after tax totaled RMB 1.97 trillion, up 41.40%.
The threshold for inclusion reached RMB 23.501 billion, an increase of RMB 3.297 billion over the previous year.
Compared with the previous year, the operating revenues of Shanxi‑based companies on this year’s list have grown significantly. Shanxi Pengfei Group Co., Ltd. posted revenue exceeding RMB 50 billion for the first time, ranking first among private enterprises in Shanxi Province. Meanwhile, Shanxi Lubao Group, Shanxi Jinnan Iron & Steel Group Co., Ltd., and Shanxi Jianbang Group Co., Ltd. all saw their revenues surpass RMB 30 billion.
The All-China Federation of Industry and Commerce also released the 2021 List of China’s Top 500 Private Manufacturing Enterprises. Thirteen private enterprises from Shanxi Province made the list, including Shanxi Pengfei Group Co., Ltd., Shanxi Lubao Group, Shanxi Jinnan Iron & Steel Group Co., Ltd., Shanxi Jianbang Group Co., Ltd., Shanxi Jincheng Iron & Steel Holding Group Co., Ltd., Shanxi Antai Holding Group Co., Ltd., Dayun Jiuzhou Group Co., Ltd., Changzhi Nanye Industrial Group Co., Ltd., Shanxi Gaoyi Iron & Steel Co., Ltd., Shanxi Hongda Iron & Steel Group Co., Ltd., Shanxi Sunshine Coking Group Co., Ltd., Shanxi Zhongyang Iron & Steel Co., Ltd., and Shanxi Gengyang Investment Group Co., Ltd.—two more than in the previous year. Notably, Changzhi Nanye Industrial Group Co., Ltd. and Shanxi Zhongyang Iron & Steel Co., Ltd. were newly included this year.

We will continue to steadily advance the development of the national carbon market.
On the 26th, Li Gao, Director-General of the Department of Climate Change under the Ministry of Ecology and Environment, stated at the 2021 Annual Conference and the Fifth Anniversary Academic Forum of the International Institute of Green Finance at Central University of Finance and Economics that, in the next phase, efforts will continue to steadily advance the development of the national carbon market. Building on the sound operation of the carbon market in the power generation sector, the scope of coverage will be gradually expanded to other high-emission industries, trading products and mechanisms will be diversified, and the national carbon market will be steered toward sustained, healthy growth, thereby effectively leveraging the market’s role in curbing greenhouse gas emissions and achieving the “dual carbon” goals.
Li Gao stated that since the national carbon emissions trading market officially launched and began trading on July 16 this year, the market has operated smoothly, with transaction prices remaining within a reasonable range. As of September 23, the cumulative volume of quota transactions reached 8.48 million tonnes, with a total transaction value of RMB 418 million.
Li Gao also stated that advancing climate‑related investment and financing is a systemic undertaking that requires coordinated efforts to strengthen greenhouse gas emission controls, facilitate the low‑carbon transformation of traditional industries, and identify and mitigate climate risks. This calls for the government to reinforce macro‑policy guidance and ensure policy stability, thereby fostering a conducive policy environment for the development of green and low‑carbon industries, innovation in low‑carbon and zero‑carbon technologies, and the creation of climate‑friendly products. At the same time, it necessitates that all market participants actively and proactively engage in technological innovation and commercial operations, jointly channeling capital toward climate‑change mitigation, thus making climate action more secure and sustainable.

Analysis of China’s Steel Production Statistics for August 2021: Crude steel output declined by 13.2% year on year.
In August 2021, national crude steel production totaled 83.24 million tonnes, down 13.20% year on year, with a daily output of 2.69 million tonnes, a 4.09% decline from the previous month. Pig iron production reached 71.53 million tonnes, down 11.10% year on year, at a daily rate of 2.31 million tonnes, down 1.81% month on month. Steel product output stood at 108.80 million tonnes, down 10.10% year on year, with a daily output of 3.51 million tonnes, a 1.98% decrease from the prior month. From January to August, cumulative crude steel production nationwide amounted to 733 million tonnes, up 5.30% year on year, with a cumulative daily output of 3.02 million tonnes, an increase of 5.73% compared with the same period last year. Pig iron production totaled 605 million tonnes, up 0.60% year on year, with a cumulative daily output of 2.49 million tonnes, up 1.01% year on year. Steel product output reached 918 million tonnes, up 7.30% year on year, with a cumulative daily output of 3.78 million tonnes, an increase of 7.74% year on year.
In August 2021, key statistical steel enterprises produced a total of 67.6823 million tonnes of crude steel, down 10.08% year on year, with daily output at 2.1833 million tonnes, a 3.39% decrease from the previous month. Pig iron production reached 60.7210 million tonnes, down 7.61% year on year, with daily output of 1.9587 million tonnes, a 1.93% decline month on month. Steel product output totaled 66.1639 million tonnes, down 8.41% year on year, with daily output of 2.1343 million tonnes, a 1.26% drop from the previous month. From January to August, these key statistical steel enterprises accumulated 585 million tonnes of crude steel, up 6.95% year on year, with an average daily output of 2.4074 million tonnes, a 6.88% increase compared with the same period last year. Accumulated pig iron production stood at 508 million tonnes, up 3.52% year on year, with a daily output of 2.0905 million tonnes, a 3.95% rise month on month. Cumulative steel product output reached 562 million tonnes, up 7.94% year on year, with a daily output of 2.3146 million tonnes, a 8.39% increase over the same period last year.
Shenzhen: Strictly investigates and penalizes intermediary agencies that list second-hand home prices exceeding the reference transaction price.
According to the official website of the Shenzhen Real Estate Agents Association, on February 23, the Shenzhen Housing and Construction Bureau issued the “Notice on Conducting a Special Inspection of Real Estate Brokerage Offices’ Implementation of Reference Prices for Secondhand Home Transactions” (hereinafter referred to as the “Notice”), mandating strict enforcement against real estate brokerage offices that list secondhand homes at prices exceeding the reference transaction price, with the aim of promoting rational transactions and stabilizing market expectations.
Meanwhile, in order to implement the Shenzhen Municipal Government’s real estate regulation measures and comply with the requirements of the “Notice of the Shenzhen Housing and Construction Bureau on Establishing a Mechanism for Publishing Reference Prices for Secondhand Home Transactions” (Shen Jian Fang Chan [2021] No. 2), and to effectively manage the listing prices of secondhand homes by real estate brokerage agencies while further standardizing the professional conduct of relevant personnel, the “Work Plan for Conducting a Special Inspection on the Implementation of Reference Prices for Secondhand Home Transactions by Real Estate Brokerage Agencies” (hereinafter referred to as the “Work Plan”) has been formulated.
The Work Plan states that, through targeted inspection campaigns, real estate brokerage agencies will be rigorously investigated and penalized for listing second-hand housing at prices exceeding the reference transaction price, thereby fostering rational transactions, stabilizing market expectations, and promoting the steady and sound development of Shenzhen’s real estate market.
The scope of this special inspection primarily includes: whether the listed prices for second-hand homes advertised by real estate brokerage agencies at their storefronts, on their websites, and on relevant online platforms exceed the reference transaction prices for second-hand homes; and whether the second-hand home prices posted by real estate agents via online platforms such as WeChat and QQ also exceed the reference transaction prices.
In accordance with the division of responsibilities, the Shenzhen Housing and Construction Bureau is primarily responsible for formulating the work plan for the special inspection; and for guiding, supervising, and inspecting the housing construction bureaus of each district in implementing the special inspection on the reference prices for second-hand housing transactions.
The housing construction bureaus of each district in Shenzhen are responsible for the specific organization and implementation of special inspection activities within their jurisdictions; they collaborate with real estate brokerage associations to conduct routine inspections; upon identifying violations of laws or regulations during inspections or through other channels, they promptly carry out investigations, gather evidence, and complete verification and review procedures; in accordance with relevant provisions, they impose penalties on real estate brokerage agencies and agents suspected of illegal or non-compliant conduct; and they have established a regular reporting system to promptly compile and submit progress updates on these special initiatives.
The Shenzhen Real Estate Agents Association has launched educational training and thematic awareness‑raising campaigns, requiring real estate brokerage offices and their practitioners to conduct self‑inspections and self‑corrections and promptly remove any listings containing illegal pricing information. It also conducts preliminary investigations and gathers evidence regarding identified violations, promptly referring such cases to the housing and construction bureaus of each district for handling, and collaborates with these bureaus in carrying out routine inspections.
The Action Plan stipulates that, from February 23 to February 26, 2021, all real estate agencies and agents are required to conduct comprehensive self-inspections and self-corrections, while the Real Estate Agents Association will organize training sessions. It also mandates that all real estate brokerage offices and agents strictly adhere to the reference prices for second-hand housing transactions. From February 27 to March 26, 2021, complaints and reports from the public regarding listed prices of second-hand homes that exceed the prescribed reference prices will be extensively collected; these complaints and reports will be systematically categorized and analyzed; and any instances of illegal or non-compliant behavior will be promptly investigated, swiftly addressed, and appropriately followed up with timely feedback.
Prior to this, on February 8, the Shenzhen Housing and Construction Bureau issued three consecutive announcements, establishing a mechanism for publishing reference prices for second-hand home transactions and releasing, for the first time, such reference prices for 3,595 residential communities across the city. However, these reference prices were generally quite low, roughly equivalent to 70% of market prices.
According to public media reports, as of now, several banks with branches in Shenzhen—including China Everbright Bank, China Construction Bank, Bank of Communications, and Bank of Beijing—have stated that they are issuing mortgages in accordance with the official reference prices for second-hand home transactions released by the Shenzhen authorities.

Taxation TAXATATION
The State Taxation Administration has issued an announcement to further encourage enterprises to increase their R&D investment.
To implement the CPC Central Committee and the State Council’s directives on encouraging enterprises to increase R&D investment and optimizing the implementation of the policy for additional deductions on R&D expenses, and to carry out in depth the 2021 “Doing Practical Things for Taxpayers and Payers” initiative and the Spring Breeze Action for Convenient Tax Services, the State Taxation Administration today issued the “Announcement on Further Implementing Relevant Issues Concerning the Policy of Additional Deductions for R&D Expenses” (hereinafter referred to as the “Announcement”). Building on the existing provision allowing enterprises to claim the first-half‑year R&D expense additional deduction during the October tax filing period, an additional quarterly preferential treatment has been introduced for the October 2021 tax filing period. At the same time, the format of the auxiliary ledger for R&D expenditures has been streamlined and simplified, and the calculation methods have been adjusted and optimized, enabling enterprises to benefit earlier from the R&D expense additional deduction, boosting working capital, alleviating financial pressures, and reducing the administrative burden of tax compliance.
The additional deduction for R&D expenses allows enterprises to claim, when calculating their taxable income, an extra deduction—beyond the actual amount of R&D expenditures—equal to a specified percentage of those expenses. This policy is a key tax incentive designed to promote technological advancement among businesses. The Announcement clarifies that, during the October 2021 corporate income tax provisional filing period, enterprises filing their third-quarter (quarterly) or September (monthly) corporate income tax returns may elect to apply the additional R&D expense deduction for the first three quarters in advance. When claiming this benefit in October, enterprises need only enter the name of the preferential item and the amount of the additional deduction on the provisional return; all other relevant documentation shall be retained for record‑keeping purposes.
The Notice has streamlined and simplified the documentation that enterprises must retain for record‑keeping to claim the additional deduction benefit, revising the system from the 2015 version—comprising “four supplementary ledgers plus one summary table”—to the 2021 version—“one supplementary ledger plus one summary table”—thereby further reducing the administrative burden. Following the release of the 2021 supplementary ledger format, the 2015 format remains valid; taxpayers may also design their own ledger formats based on their specific circumstances and preferences, thereby further facilitating the application of this preferential policy.
The Announcement also revises and optimizes the method for calculating the cap on “other related expenses” within R&D expenditures. For enterprises conducting multiple R&D activities within a single tax year, the previous practice of calculating the cap for each project separately has been replaced by a unified calculation of the cap for all R&D projects, enabling companies to maximize their benefit from the preferential policies.
Tax incentives are being delivered more promptly, giving taxpayers a stronger sense of gain. Li Yang, head of the Finance Department at Chery Automobile Henan Co., Ltd., stated that the company invests heavily in R&D each year and was able to take advantage of the enhanced R&D expense deduction for the first three quarters as early as October. This helps the company alleviate financial pressures in a timely manner and bolsters its confidence in future prospects. Moving forward, the company will continue to increase investment in technological upgrading projects, stepping up efforts in intelligent manufacturing and new‑product development.
Zhejiang Rixin Electric Co., Ltd. is a nationally recognized “Little Giant” enterprise specializing in niche, specialized, and innovative fields, integrating research, development, production, and sales. According to Yuan Yunxia, the company’s finance director, the additional deduction for R&D expenses in the first three quarters of this year is expected to free up approximately RMB 6.5 million in cash flow. The workload associated with maintaining auxiliary accounting records has been significantly reduced, and all R&D projects can now be calculated under a unified framework, simplifying the entire process. As a result, the company feels more confident and better positioned to further increase its investment in R&D.
“The policy of additional tax deductions for R&D expenses is an effective tool for supporting scientific and technological innovation,” said Li Xuhong, Director of the Institute of Fiscal and Taxation Policy and Application at the National Accounting Institute in Beijing. Compared with the existing policy that allows companies to claim additional deductions for R&D expenses in the first half of the year, this year’s extension of the preferential treatment to include an additional quarter, coupled with the optimization and simplification of the auxiliary accounting format for R&D expenditures, enables enterprises to benefit from these incentives earlier and more conveniently. This tax relief is designed to encourage offices to increase their R&D spending and boost their enthusiasm for technological innovation.

The Jiangsu Provincial Government has issued a notice on several policy measures to proactively address the impact of the epidemic, help enterprises alleviate their difficulties, and ensure a faster economic recovery.
The recent outbreaks in Nanjing and Yangzhou have posed challenges to the province’s efforts to coordinate epidemic prevention and control with economic and social development. Recently, the Standing Committee of the Provincial Government reviewed and approved the “Several Policy Measures for Actively Addressing the Impact of the Epidemic, Helping Enterprises Overcome Difficulties, and Ensuring a Faster Economic Recovery” (Document No. 56 [2021] of the Jiangsu Provincial Government), commonly referred to as the “30 Measures of Jiangsu.” This document focuses on the shocks and impacts of the epidemic on current economic performance, strengthens support for enterprises in regions and sectors most severely affected, and seeks to ensure smooth economic circulation and accelerate recovery. A comprehensive package of policy measures was issued and put into effect on September 6.
I. Overall Considerations in Drafting the Document
During the drafting of the “30 Measures of the Su Government,” four key priorities were emphasized.
First, we emphasize targeted efforts to ensure that policies and measures are more precise.
Adhering to a problem- and demand-driven approach, the policy focuses on service sectors—such as accommodation and catering, wholesale and retail, culture, sports and entertainment, logistics and transportation, and tourism—that have been particularly hard hit by the pandemic, as well as on small, medium, and micro enterprises and individual business households with limited risk resilience, providing targeted support and introducing tailored measures.
Meanwhile, in light of the varying degrees of impact from the pandemic, targeted and differentiated policy support has been extended to Nanjing and Yangzhou.
Second, we will focus on providing practical assistance and support, ensuring that market entities and the general public experience a greater sense of gain.
We have extensively solicited opinions and concerns, working both to address common issues on a broad scale and to provide targeted solutions to pressing, difficult, and deeply felt problems.
A series of concrete, effective, and practical policy measures have been introduced to provide fiscal and tax incentives, financial credit support, relief from burdens on enterprises, stable employment, enhanced credit services, and smooth logistics, with tangible financial resources allocated to help businesses address the challenges and difficulties they face in production and operations.
Third, we will emphasize overall coordination and adopt a comprehensive set of measures to accelerate economic recovery.
While addressing the immediate challenges posed by the pandemic to economic performance and rolling out targeted, high‑impact policies designed to accelerate recovery, we are also looking ahead to the period ahead, putting forward a comprehensive set of measures—including stabilizing prices and ensuring supply, expanding consumer and investment demand, optimizing the business environment, strengthening workplace safety, and enhancing the quality of public services—to restore the smooth functioning of the economy and society as quickly as possible.
Fourth, emphasis is placed on comprehensive integration, drawing on and adapting best practices.
While building on the effective measures of last year’s “50 Measures of the Jiangsu Provincial Government” to ensure smooth economic circulation, the initiative also places emphasis on studying and drawing upon the experiences and practices of other provinces and municipalities. Following careful collation, aggregation, and comprehensive integration, the result is the current package of 30 policy measures.
II. Document Framework and Main Contents
The “Su Zheng 30 Measures” comprise 10 sections:
Part One: Strengthening Fiscal and Tax Policies. For example, taxpayers unable to file tax returns on time due to the pandemic will be granted an extension; those facing genuine financial difficulties in paying taxes on schedule will also be allowed to defer payment. Furthermore, for taxpayers in Nanjing operating in the accommodation and catering, culture, sports and entertainment, transportation, and tourism sectors, as well as small-scale VAT taxpayers, property tax and urban land use tax for the third quarter will be exempted. In Yangzhou, property tax and urban land use tax for both the third and fourth quarters will be exempted.
Part II: Strengthening Financial and Credit Support. For example, financial institutions shall refrain from arbitrarily withdrawing, cutting off, or curtailing loans to sectors such as wholesale and retail, accommodation, and catering; they are encouraged to offer loan extension services and rollover‑without‑principal‑repayment arrangements. The scale of new loans to small and micro enterprises will be steadily expanded, with short-term bridge‑loan financing provided to support these businesses. Guarantee and reinsurance fees for small, medium, and micro enterprises in key industries and epidemic‑affected regions will be reduced. Special measures will be implemented to boost lending to private and small‑and‑micro enterprises in Nanjing and Yangzhou that have been impacted by the pandemic, with additional quotas for relending and rediscounting.
Part Three: Effectively Reducing the Burden on Enterprises. For example, strengthening oversight of enterprise‑related fees and implementing electricity‑supply policies such as maintaining power despite outstanding payments, extending payment deadlines, and waiving high‑reliability power supply charges; improving medical insurance reimbursement policies for treating major epidemics and refining the system for direct settlement of out‑of‑town medical expenses; granting temporary deferrals of contributions to pension, unemployment, and work‑injury insurance, as well as housing provident fund payments, for enterprises that are temporarily unable to pay; and, in Nanjing and Yangzhou, applying phased reductions in unemployment, work‑injury, and medical insurance rates, with preferential support from the provincial unemployment insurance adjustment fund directed toward Yangzhou.
Part Four: Helping Enterprises Stabilize Employment. For example, enterprises that maintain or minimally reduce their workforce will receive unemployment insurance subsidies to support employment retention; the eligibility threshold for such subsidies will be relaxed for small, medium, and micro-sized enterprises; and enterprises will be encouraged to implement work‑based training and online training, with corresponding vocational training subsidies provided.
Part Five: Strengthening Credit Services for Enterprises. For example, enterprise misconduct shall be determined with due diligence; instances of non‑compliance arising from force majeure due to the pandemic shall not be recorded as breaches of trust. Furthermore, support will be provided to facilitate credit rehabilitation, with reviews at the relevant level completed within one working day of receiving an enterprise’s application for credit restoration or objection.
Part VI: Ensuring the Smooth Flow of Enterprise Logistics Channels. This primarily involves implementing the policy on dedicated emergency transport corridors to ensure that emergency supplies and essential production materials for enterprises resuming work can pass through swiftly and with priority.
Part VII: Strengthening Price Stability and Supply Assurance for Key Essential Goods. For example, a special price‑adjustment fund of RMB 5 million has been allocated to Yangzhou, and provincial‑level reserved pork has been strategically released into the market there. In addition, targeted business development funds have been earmarked for Nanjing and Yangzhou to support commercial and distribution enterprises that ensure the supply of essential goods to the public.
Part VIII: Expanding Consumption and Investment Demand. For example, support will be provided for consumption‑stimulating initiatives, with encouragement to issue consumer vouchers and to reduce or exempt service fees for cultural and tourism enterprises as well as admission fees at key scenic spots. In the allocation of funds—such as those from the central budget, local government special bonds, and programs supporting strategic emerging industries and the development of modern services—priority will be given to eligible projects in Nanjing and Yangzhou.
Part Nine: Effectively Strengthening Safety Production Supervision. This primarily involves enhancing the dynamic analysis and assessment of big data on workplace safety, providing enterprises with precise technical guidance on safety, and ensuring that enterprise‑level safety risk controls are fully in place and that hazard rectification is carried out in a closed-loop manner.
Part Ten: Continuously Enhancing the Level of Facilitation Services. For example, by comprehensively employing operational models such as consolidated tax collection and customs‑guarantee insurance, we will improve enterprises’ customs clearance efficiency; assist businesses in minimizing liabilities and losses arising from their inability to fulfill contracts due to the pandemic; and further advance “non‑face‑to‑face” approval processes while optimizing government services.
The effective implementation of the “30 Measures of the Su Government” will help localities, while maintaining routine epidemic prevention and control, to vigorously advance all aspects of economic and social development, make up for lost time, offset losses incurred by the pandemic, minimize its impact, and strive to achieve the year‑long goals and tasks for economic and social development.
Going forward, relevant provincial departments and all localities should, in response to the concrete needs voiced by grassroots communities and the general public, further refine and flesh out policy measures. At the same time, they should conduct oversight and inspections to ensure effective implementation, thereby guaranteeing that the “30 Measures of the Jiangsu Provincial Government” are fully put into practice and delivering tangible benefits to enterprises and residents at the grassroots level.

Tax and fee preferential policies are being effectively implemented, providing strong momentum for the modernization of China’s agriculture.
“Innovation is the cornerstone of entrepreneurship, and throughout this process, tax policies have bolstered businesses’ confidence,” said Jiang Guanshun, Chairman of Guangzhou Lvwochuan High-Tech Agricultural Science and Technology Co., Ltd. During the company’s early stages, the tax authorities issued the “Guangdong Province Guidelines on Tax and Fee Policies Supporting the Development of Modern Agricultural Industrial Parks,” which outlines 108 tax and fee measures. These guidelines helped industrial parks align their operations to benefit from the policies, enabling enterprises to quickly understand and master relevant tax and fee regulations as well as tax‑filing procedures.
“This year, the tax authorities issued the ‘Guidance on Tax Preferential Policies for Comprehensively Promoting Rural Revitalization,’ compiled by Guangdong Province’s tax administration. The guide covers eight major categories and 112 preferential policies—ranging from supporting the development of agriculture-related industries to boosting rural entrepreneurship and employment—giving us greater confidence in turning these policy benefits into competitive advantages,” said Jiang Guanshun.
On September 23, the fourth Chinese Farmers’ Harvest Festival arrived as scheduled. Statistical data show that this year has seen frequent extreme weather events and severe disasters in some regions, yet the overall outlook for a bountiful harvest remains favorable. China’s remarkable resilience and robust vitality in the “agriculture, rural areas, and farmers” sector are underpinned not only by farmers’ hard work but also by the critical support of science and technology.
At present, green and eco-friendly agricultural technologies are being rapidly adopted and taking root, while the widespread use of advanced agricultural machinery is making farming increasingly convenient, efficient, and smart. Across China, tax authorities are stepping up their efforts to support the development of green and ecological agriculture by providing meticulous services, implementing favorable tax policies that encourage scientific and technological R&D, and offering tailored taxpayer assistance. These measures bolster confidence in agricultural science and technology innovation and inject new momentum into the drive to promote sustainable, green agriculture.
Changsha City in Hunan Province is one of the three host locations for this year’s National Farmers’ Harvest Festival. In Shalong Village, Yanxi Town, Liuyang City, there is a place known as the “Vegetable Park,” where vast expanses of vegetable plots are neatly arranged among the hills and fields. According to Zhou Fuchu, head of the Xinfeng Vegetable Planting Professional Cooperative in Shalong Village, the “Vegetable Park” comprises 13 local vegetable‑growing cooperatives, with Xinfeng being one of them.
In recent years, as consumer demand for organic vegetables has continued to grow, the cooperative has been committed to adopting advanced cultivation techniques and enhancing product quality. According to reports, in early 2021, to meet production needs, the cooperative urgently required funding to build integrated water‑fertilizer systems, smart greenhouses, cold storage facilities, and other projects. Upon learning of the situation, Chen Chongliang, serving as the cooperative’s “tax‑business liaison” at the Liuyang Municipal Tax Service Bureau of the State Taxation Administration, promptly facilitated access to a 1.5‑million‑yuan loan through the “Tax‑Bank Collaboration” program.
In the course of China’s agricultural modernization, ensuring that new technologies take root and are effectively adopted by farmers hinges on robust human‑resource support.
In 2015, Zhejiang Province took the lead nationwide in introducing the concept of “agricultural innovators” and launching initiatives to cultivate this emerging group. According to data, after several years of support and training, the number of college graduates engaged in agricultural production and farming in Zhejiang has now exceeded 5,000. The province’s tax authorities have actively implemented preferential tax and fee policies aimed at fostering entrepreneurship and employment, stepping up their support for agricultural innovators and helping them turn their youthful aspirations into reality.
At another venue for this year’s National Farmers’ Harvest Festival—the city of Jiaxing in Zhejiang Province—“agricultural innovators” are injecting fresh vitality into modern agriculture with their expertise. In Haining, a city under the administration of Jiaxing, at the cherry‑cultivation base of Ninglan Fruit Industry Technology Co., Ltd., clusters of cherries hang gracefully from the branches. Ji Ming, born in the 1990s, is the head of the base. According to him, since its establishment, the company has benefited from tax and fee concessions totaling more than RMB 100,000. Moreover, the “tax‑bank‑agriculture” initiative has tailored agricultural‑focused loan programs specifically for the enterprise, effectively helping it overcome funding challenges.
In Shouguang, Shandong Province, the tax authorities, in pursuit of advancing green vegetable production and further enhancing the intrinsic quality of Shouguang’s vegetables, have adopted a proactive, front‑line service approach. Tailoring their support to the industry-specific characteristics and development needs of enterprises, they have established a one‑stop management and service model—“online guidance, rapid response, and targeted Q&A”—to ensure that tax and fee preferential policies are delivered promptly and fully utilized.
“With the dual support of favorable tax policies and convenient taxpayer services, we are even more confident and assured in providing high-quality, fresh vegetables,” said Wang Zhigang, General Manager of Shandong Shouguang Vegetable Industry Group Co., Ltd.
“Agricultural production has embraced new technologies, and consumers are enjoying organic food. Meanwhile, the tax authorities will leverage smart‑tax solutions to enable agricultural cooperatives and other market entities to access services such as ‘one‑stop online processing’ and ‘tax filing via mobile apps,’ ensuring hassle‑free tax compliance, peace of mind in production, and support that feels truly caring,” said Luo Min, Party Secretary and Director of the Changsha Municipal Tax Service Bureau of the State Taxation Administration. He added that the bureau will spare no effort to implement preferential tax and fee policies for agriculture, help enterprises overcome challenges in technological upgrading and business expansion, and strive to contribute even more through tax measures to the advancement of agricultural science and technology.
Zhang Caixi, a professor and doctoral supervisor at the College of Agriculture and Biology of Shanghai Jiao Tong University, stated that the development of modern agriculture requires, under the guidance of supportive policies in finance, taxation, and scientific research, further pooling resources and leveraging synergies to unite talent, capital, and technology. By integrating advanced production concepts, cutting-edge technologies, and innovative marketing approaches, traditional agriculture can be transformed, thereby accelerating China’s progress toward agricultural modernization.

In the first eight months of the year, national tax revenues grew by nearly 20 percent, while the growth rate of land transfer revenue has slowed.
In August this year, the year-on-year growth rates of major economic indicators moderated, and fiscal revenue growth was no exception.
On September 17, according to data from the Ministry of Finance, national general public budget revenue in August totaled RMB 1.2372 trillion, up just 2.7% year on year. The slowdown in fiscal revenue growth was largely attributable to a higher base in the same period last year, as well as recent outbreaks of COVID-19 and flooding.
However, judging from fiscal revenue trends so far this year, revenues have continued to grow at a relatively robust pace, reflecting a steady economic recovery.
In the first eight months of this year, national general public budget revenue exceeded 15 trillion yuan (15.0088 trillion yuan), up 18.4% year on year. Excluding the base effect from last year, revenue grew 9.5% compared with the same period in 2019.
National general public budget revenue is primarily composed of tax revenue. In the first eight months, national tax revenue approached RMB 13 trillion, up 19.8% year on year.
Tax revenue serves as an economic “barometer”; the sustained high growth rate in tax collections reflects significant progress in economic recovery and underscores an improvement in the quality of fiscal income. By sector, major tax categories have all posted robust growth.
Domestic value-added tax, the largest tax category, continues to lead by a wide margin, with revenue reaching approximately RMB 4.5 trillion in the first eight months, up 19.1% year on year. Among this, VAT revenues from the industrial and commercial sectors rose by 24%, largely driven by growth in industrial value added and, in particular, by persistently high producer prices.
Driven by steady growth in corporate profits, revenue from the second-largest tax—corporate income tax—has maintained double-digit growth. Rising household incomes and property‑related dividend and interest income have fueled a 23% year‑on‑year increase in personal income tax receipts for the first eight months. Meanwhile, continued expansion in goods imports and exports has sustained strong growth in import‑related tax revenues.
Since the beginning of this year, non-tax revenue has maintained double-digit growth, though the pace has been steadily decelerating. In the first eight months, non-tax revenue totaled approximately RMB 2 trillion, up 10.4% year on year. Among the components driving this growth, earmarked revenues, revenues from the paid use of state-owned resources, and fines and confiscations have made significant contributions.
In addition to general public budget revenue, government‑fund revenue—primarily derived from land sales—constitutes a major source of local fiscal income.
In the first eight months of this year, national government‑funded budget revenue totaled RMB 5.3693 trillion, up 14.2% year on year. Within this, revenue from the transfer of state‑owned land use rights under local government funds reached RMB 4.7110 trillion, an increase of 12.1% compared with the same period last year. This growth rate has slowed markedly from the 18% recorded in the first seven months, reflecting a higher base in the corresponding period last year and the continued implementation across regions of policies aimed at ensuring that housing is for living, not for speculation, thereby stabilizing land and housing prices.
As downward economic pressures intensify in the second half of the year, institutions are broadly calling for a more proactive fiscal stance. A key indicator of such fiscal stimulus is the scale and pace of government spending. Since the start of the second half, the growth rate of fiscal outlays has been accelerating, reflecting sustained fiscal support.
According to data from the Ministry of Finance, in August, national general public budget expenditures increased by 6.2% year on year. This growth rate significantly outpaced revenue growth, reflecting a proactive fiscal stance.
In the first eight months of this year, national general public budget expenditures totaled 15.5371 trillion yuan, up 3.6% year on year, a slight acceleration compared with the 3.3% growth rate recorded in the first seven months.
Nationwide, key expenditures such as the “three guarantees” have grown relatively rapidly. For example, in the first eight months, education spending increased by 7.9% year on year, while health and wellness spending rose by 3.9% year on year.
Infrastructure-related spending is also accelerating. For instance, cumulative growth in urban and rural community expenditures has turned positive, with a year-on-year increase of 0.4% in the first eight months of this year. Meanwhile, the declines in transportation spending and agricultural, forestry, and water‑related expenditures have continued to narrow. As a result, the growth rate of broad‑based infrastructure investment picked up somewhat in August.

Litigation & Arbitration
Prosecutorial organs have prosecuted over 230,000 individuals for organized crime and evil‑related offenses as part of the special campaign to eradicate organized crime and evil forces.
On the 22nd, the State Council Information Office held a press conference on the role of the procuratorial organs in building a moderately prosperous society in all respects. Tong Jianming, Deputy Secretary of the Party Group and Executive Vice Procurator-General of the Supreme People’s Procuratorate, attended the conference and answered questions from reporters.
Tong Jianming stated that since the 18th National Congress of the Communist Party of China, the procuratorial organs have consistently put the people first and striven to provide robust judicial safeguards for the comprehensive building of a moderately prosperous society. They have focused on five key areas of work:
First, we have deepened efforts to build a safe and secure China, safeguarding national security, social stability, and the peace of the people. The procuratorial organs have consistently upheld the holistic approach to national security, prosecuting and preventing all types of crime in accordance with the law. From January 2013 to August this year, they approved the arrest of over 8.12 million criminal suspects and instituted public prosecution against more than 13.57 million individuals. We have also vigorously advanced the three-year special campaign to eradicate organized crime and evil forces, bringing charges against over 230,000 persons involved in such crimes, thereby delivering a strong blow to the brazen arrogance of criminal gangs and underworld elements.
　Second, we have proactively integrated ourselves into the broader development agenda, serving high-quality economic and social development and actively fostering a law-based business environment. In response to the persistent issue of certain cases involving private enterprises remaining indefinitely “on hold,” we launched a special campaign to address this backlog. We have also piloted compliance reforms for enterprises involved in legal proceedings, ensuring that the protection of corporate rights is balanced with the promotion of lawful and compliant operations. Furthermore, we have consolidated criminal, civil, and administrative prosecution functions related to intellectual property, strengthening comprehensive judicial protection of intellectual property rights and advancing the building of an innovation-driven nation.
Third, we have fully discharged our legal supervisory duties and safeguarded social fairness and justice. We have faithfully performed our legal oversight of litigation activities to uphold judicial impartiality. From January 2013 to August this year, we supervised over 170,000 cases in which public security organs failed to initiate investigations when they should have, and ordered the withdrawal of more than 150,000 cases that had been filed as criminal matters despite being minor administrative violations or economic disputes—matters that did not warrant criminal prosecution. With respect to criminal, civil, and administrative judgments deemed manifestly erroneous, we lodged protests in 66,000, 36,000, and 1,500 cases, respectively. We have also innovatively implemented the circuit‑prosecution system, transforming the traditional prison‑stationed procuratorial model into a “stationed plus circuit” approach, thereby more effectively upholding fairness and justice within correctional facilities.
Fourth, actively engage in social governance and help enhance its effectiveness. In recent years, the procuratorial organs have been attentive to identifying issues in social governance through case handling and have proactively issued prosecutorial recommendations aimed at improving governance. The Supreme People’s Procuratorate has, with respect to safeguarding campus safety, standardizing public notice delivery, strengthening financial regulation, enhancing management of manhole covers, preventing and combating fraudulent litigation, and bolstering internet governance, successively issued Prosecutorial Recommendations No. 1 through No. 6 to the relevant authorities, thereby promoting sound social governance. Moreover, the Supreme People’s Procuratorate has disseminated legal principles through the publication of guiding cases and other means, thereby fostering public awareness of the rule of law.
Fifth, we will deliver concrete measures that serve the people and enhance their well-being. We will continue to ensure that every petition from the public receives a response, innovatively conduct public hearings, and more effectively address issues that deeply concern the people. We will also work in depth to achieve substantive resolution of administrative disputes, thereby promoting the final settlement of cases and matters. From January to August this year alone, we resolved over 4,000 administrative disputes, including more than 200 cases that had been pending for over ten years.
In June this year, the CPC Central Committee issued the “Opinions on Strengthening Legal Supervision by the Procuratorial Organs in the New Era,” under which the procuratorial organs will regard the thorough implementation of these Opinions as a major responsibility and continuously enhance their capacity and competence in legal supervision in the new era.

Political and legal organs have rigorously implemented the “Three Regulations” to regulate the professional conduct of former officials.
For some time now, “cases influenced by personal relationships,” “cases decided through connections,” and “cases driven by money” have severely undermined the impartiality of law enforcement and the judiciary. Violations of the “Three Regulations” on preventing interference in judicial affairs—such as judges and prosecutors engaging in unauthorized legal practice or acting as judicial brokers after leaving office—have become deeply entrenched problems that must be addressed.
During the first nationwide campaign to rectify and strengthen the political and legal forces, all localities and relevant departments responded promptly to the call, launching a self‑revolution within the political and legal ranks that amounted to a thorough cleansing. A total of 104,000 cases involving violations of the “Three Regulations” on preventing interference in judicial proceedings were identified and verified, resulting in disciplinary actions against 83,000 officers; additionally, 2,145 former judges and prosecutors were found to have improperly practiced law or acted as judicial intermediaries. By closing off the channels through which undue influence is exerted on the judiciary, the fertile ground for cases driven by personal connections, relationships, or money is being steadily eradicated.
Cases involving personal connections, relationships, or money seriously undermine the impartiality of law enforcement and the judiciary.
On December 4, 2020, a former vice president of a provincial higher people’s court was sentenced to 18 years’ imprisonment and fined RMB 4 million for accepting bribes, rendering unlawful administrative judgments, and fraud.
The court found that, from 2006 to 2019, the former vice president, taking advantage of his positions as chief judge of the First Civil Division of a provincial high people’s court, member of the adjudication committee, member of the Party leadership group, and vice president, sought to secure benefits for relevant entities and individuals in the course of case adjudication through informal interventions and other means. He directly or through intermediaries illegally accepted property totaling RMB 43.75 million, and, at the request of others, interceded on their behalf in specific cases; in some instances, his corrupt conduct even influenced the outcomes of those cases.
For some time now, officers who have violated discipline or the law—like those in this case—have been interceding on behalf of parties and exerting undue influence, seriously undermining judicial impartiality. “These officials, having worked for extended periods in the same region, are surrounded by a dense network of acquaintances and deeply entrenched personal ties, fostering a culture in which officers form collusive interest groups among themselves and with those subject to law enforcement. This has led to a surge in cases involving organized crime and corruption, with some even serving as ‘protective umbrellas’ for criminal gangs,” said Yu Xun, Vice Dean of the School of Criminal Justice at East China University of Political Science and Law.
Among the 37 individuals who bribed the former deputy director, nearly half were lawyers, some of whom had previously served as court personnel. These judicial intermediaries exploited their connections with law enforcement and political‑legal officials to fabricate cases based on personal favors, relationships, or money, earning the deep resentment of the public.
Recently, at the second press conference on the nationwide education and rectification campaign for political and legal personnel, it was disclosed that a total of 4,960 cases involving serious disciplinary and legal violations by township- and section-level officers have been investigated across the country. Among these, cases driven by personal connections or favoritism accounted for over 70%, while 43% involved multiple political and legal officers colluding with one another and subsequently being disciplined or punished.
Recently, the People’s Procuratorate of Yangpu District, Shanghai, instituted public prosecution against the suspect, Yu. According to the procuratorial authorities, in February last year, Ms. Zhao, a local resident, was involved in litigation over her home’s demolition and lost at first instance. Through a friend’s introduction, she learned that Yu knew “relevant personnel” and could help her “handle matters” if she wished to appeal. Consequently, Ms. Zhao paid Yu RMB 600,000 to grease the wheels. However, the court ultimately upheld the original verdict on second appeal. Only then did Ms. Zhao realize she had been defrauded and reported the incident to the police.
Investigating officers stated that this so‑called “paying to get things done” scam preys on the desperation of parties and their families, exploiting their tendency to seek help from judicial intermediaries in hopes of influencing judicial proceedings. Addressing the persistent issues of cases influenced by personal connections, relationships, or money, and cracking down on judicial brokers, have become pressing concerns for the public.
Strictly implement the “Three Regulations,” and “recording every inquiry” has become a matter of conscious compliance.
Wu Qing (pseudonym) is a first‑level prosecutor at the People’s Procuratorate of a certain county. In April 2020, while serving as the public prosecutor in the case of Wang Shun (pseudonym) for dangerous driving, Wu Qing received a call from Wang Changgui (pseudonym), Wang Shun’s uncle and an officer with the county public security bureau, requesting that Wu Qing submit to the trial court a sentencing recommendation for probation. Wu Qing immediately declined and truthfully documented Wang Changgui’s act of interceding on behalf of the suspect, Wang Shun. Subsequently, he recommended that the court impose detention as the sentence. In May 2021, the procuratorate publicly commended Wu Qing for accurately recording and reporting another person’s violation of the “Three Regulations.” Wang Changgui was subjected to a cautionary admonitory talk.
The “Three Provisions” refer to the Regulations on Recording, Reporting, and Accountability for Leading Cadres’ Interference in Judicial Activities and Intervention in the Handling of Specific Cases; the Regulations on Recording and Accountability for Involvement in Cases by Personnel Within Judicial Organs; and the Several Provisions on Further Regulating the Conduct of Judicial Personnel in Their Contacts and Interactions with Parties, Lawyers, Persons with Special Relationships, and Intermediary Organizations—issued successively by the CPC Central Committee General Office, the State Council General Office, the CPC Central Political and Legal Commission, and the “Two High Courts and Three Ministries.”
The “Three Regulations” on preventing interference in judicial proceedings serve as a “purifier” of the judicial environment, a “safety valve” for fairness and justice, and an “amulet” safeguarding against corruption and moral decay. In recent years, political and legal organs have steadily strengthened their rigorous enforcement of these regulations and fostered a growing sense of proactive compliance; however, several salient issues persist, including inadequate awareness among some officers, insufficient accountability mechanisms, and inadequate public outreach.
In response to new developments and emerging issues, local authorities and institutions have seized the opportunity presented by the nationwide education and rectification campaign for political and legal personnel to conduct a comprehensive review and address prominent problems in the implementation of the “Three Regulations.” As of July 31, a total of 104,000 cases violating the “Three Regulations” on preventing interference in judicial proceedings had been identified and verified nationwide, resulting in disciplinary actions against 83,000 officers. Since the launch of the campaign, the number of cases reported by political and legal personnel involving inquiries or interventions has increased markedly, and the practice of “recording every inquiry” has become a standard, self‑imposed norm.
On January 12 this year, Zhou Chunmei, a judge at the Hunan Provincial Higher People’s Court, was tragically murdered at the age of 45 after repeatedly refusing unlawful requests from an individual seeking to intervene in a case. Her courageous stand in upholding judicial impartiality with her life has further strengthened the resolve of law enforcement and judicial officers nationwide to conscientiously implement the “Three Regulations.”
In Hunan Province, the courts at the provincial, municipal, and county levels have fully implemented a new record‑reporting platform under the “Three Regulations,” expanding the scope of registration and reporting to all staff members to ensure full coverage and mandatory recording of every instance of inquiry. A monthly reporting system has been established, and for courts that have long maintained “zero reports” or “zero investigations,” the Hunan High People’s Court has held talks with the principal leaders of those units.
In Shanxi Province, the Political and Legal Affairs Commission of the Provincial Party Committee has incorporated compliance with the “Three Regulations” into its law‑enforcement oversight framework, while refining measures such as regular public reporting, mandatory record‑keeping and submission, public disclosure of typical cases, cautionary education, retrospective accountability, and mechanisms for incentives and protection.
In Zhengzhou, Henan Province, the Municipal People’s Procuratorate has incorporated the implementation of the “Three Regulations” and the reporting of “interference, intervention, or involvement in major matters related to procuratorial case handling” into the performance evaluation framework for building a clean and honest government at the grassroots-level procuratorates, thereby reinforcing accountability and boosting motivation.
Establish an information-sharing platform and expedite the development of a “prohibited‑business list.”
Liu, a former full-time member of the Adjudication Committee of the Intermediate People’s Court of a certain city, leveraged the conveniences afforded by his former leadership position after retirement to assist lawyer Zeng in matters such as gathering case information and securing a retrial, and accepted more than RMB 300,000 from Zeng. The suspected criminal issues have been referred to the judicial authorities for handling.
During the education and rectification campaign targeting political and legal personnel, local authorities have launched initiatives to address the practice of judges and prosecutors serving as judicial intermediaries after leaving office.
The Political and Legal Affairs Commission of the Jilin Provincial Party Committee has issued a special rectification work plan, requiring the Provincial Higher People’s Court and the Provincial People’s Procuratorate to conduct a comprehensive review of all personnel within their respective systems who fall under circumstances mandating recusal, and to promptly adjust their positions. They are also to strengthen random inspections and verification of the professional activities of retirees, resignees, those dismissed, and individuals transferred out of their posts. Meanwhile, the Provincial Department of Justice is intensifying guidance and oversight of lawyers’ practice, establishing a “blacklist” system for lawyers, and imposing stricter administrative penalties on lawyers acting as intermediaries; in cases of serious misconduct, such lawyers will be expelled from the legal profession.
In Zhengzhou, Henan Province, procuratorial organs at both city and county levels have conducted a comprehensive review of cases involving prosecutors who, after leaving office, improperly engaged in the legal profession or acted as judicial intermediaries. To date, they have screened 1,284 former and retired personnel and organized retired and retiring staff from both levels of procuratorial organs to sign commitment letters. Building on these efforts, while simultaneously addressing immediate concerns and establishing long-term safeguards, a total of 17 institutional measures have been formulated, ensuring that the Zhengzhou procuratorial workforce remains clean, upright, and dynamic.
According to reports, the education and rectification campaign targeting political and legal personnel has comprehensively ascertained the employment status of 149,000 former judges and prosecutors since the 18th National Congress of the Communist Party of China. A targeted screening was conducted on 7,640 individuals who took up legal practice after leaving their posts, revealing that 2,044 had engaged in such practice in violation of regulations.
All localities and departments have adhered to targeted measures to rectify violations, ensuring that those who should be encouraged to step down are so advised, those who should be transferred are reassigned, and those who require adjustment are duly reallocated. In cases of serious misconduct, accountability is pursued in accordance with regulations, disciplinary rules, and the law, thereby achieving an integrated approach that combines rectification, education, punishment, and oversight. Meanwhile, the central political and legal organs are expediting the formulation of “prohibition lists” governing the business activities of spouses, children, and their spouses of personnel within their respective systems, refining and clarifying policy boundaries, and promoting the establishment of mechanisms for routine screening, automated identity verification, and retrospective case reviews, thus eradicating the conditions that enable judicial intermediaries to take root and proliferate.

Jiangsu has completed its pilot program to deepen the reform of public institutions, streamlining and optimizing services to better serve the people.
In April 2020, as one of the nine pilot provinces designated by the central government, our province launched a pilot program to deepen the reform of public institutions. The Provincial Committee’s Organization and Establishment Office organized and guided four cities and four counties (cities/districts)—Wuxi City and Jiangyin City; Changzhou City and Liyang City; Yangzhou City and Jiangdu District; and Xuzhou City and Jiawang District—to carry out the pilot work.
Recently, Yu Jun, Deputy Director of the Organization Department of the Provincial Party Committee and Director of the Provincial Institutional Establishment Office, stated that the pilot program was completed at the end of June. Based on the ongoing final evaluation, the pilot regions have seen a marked optimization of the layout and structure of public institutions, a more streamlined allocation of institutional staffing, and a strengthening of the Party’s leadership and public-service functions within the relevant institutions.
Integrate and optimize, streamline institutional structures.
In 2019, our province completed the reform of public institutions performing administrative functions and those engaged in production and business activities, abolishing a total of 1,181 such institutions and reclaiming 12,718 institutional staffing positions, thereby essentially achieving the separation of government administration from public service and of public service from enterprise operations.
Building on this foundation, the pilot program for deepening reform of public institutions likewise regards streamlining organizational structures and optimizing spatial layouts as key components. How can these institutions be effectively “slimmed down”? First, it calls for abolishing or merging small, fragmented, and weak public institutions that have been downsized, whose functions have atrophied, and whose public‑service orientation has weakened; it also entails a comprehensive review of institutions that have become “shell entities,” whose functions have been hollowed out, or that have not yet completed legal‑person registration.
The “Pilot Implementation Plan for Deepening Institutional Reform in Jiangsu Province” explicitly stipulates that public institutions with a staffing quota of 10 or fewer at the municipal level and 5 or fewer at the county level will, in principle, no longer be retained. Secondly, public institutions with identical or similar functions are being consolidated and streamlined; for example, in Jiangyin City, the 20 public institutions under the Municipal Housing and Urban–Rural Development Bureau have been reorganized into five entities, covering areas such as integrated law enforcement, housing management, construction project management, the real estate market, and civil defense. In Yangzhou, an interdepartmental inspection and testing center has been established to create a one-stop public service platform for inspection and testing. Thirdly, public institutions that provide support and logistical services to administrative agencies are being streamlined and downsized, freeing up additional resources to deliver public‑interest services to society.
In addition, practices such as implementing quota-based management of the total number of public institutions and subjecting city‑level sub‑bureau‑level and county‑level sub‑section‑level or higher public institutions to stringent and tight approval procedures have also contributed to streamlining the institutional structure.
When formulating reform plans, pilot regions have sought to fully leverage the role of the market. Xu Rong, Director of the Institutional Establishment Office of the CPC Changzhou Municipal Committee, explained that the city has abolished six public institutions—such as the Changzhou Red Cross Training Center—that operate in sectors with a high degree of marketization, transferring their functions to the market. For public services best delivered by the market, the government has increased procurement efforts and will no longer establish new public institutions.
Taking advantage of the reform pilot program, Xuzhou City has implemented a “machinery‑for‑staffing” initiative. Prior to the reform, the Xuzhou Municipal Water Resources Bureau oversaw 32 public institutions, more than 20 of which were engineering management entities with similar functions—such as sluice‑gate and pumping‑station operations—and largely relied on labor‑intensive management practices. Xuzhou has intensified efforts to advance the digitalization of water‑conservation infrastructure, comprehensively promoting the intelligent upgrading of equipment for sluice‑gate and pumping‑station control, thereby significantly reducing manpower requirements. Taking the Zhengji Water Conservancy Hub as an example, its authorized staffing was set at 80 before the upgrade; following the reform, the authorized headcount was reduced to 34. By leveraging smart‑technology projects and market‑oriented operational models, the bureau’s affiliated institutions collectively cut 306 positions, representing a reduction of 33.1%.
According to statistics from the Provincial Organization and Establishment Office, in the pilot areas, at the city level, the total number of public institutions was reduced from 1,366 to 763, a streamlining rate of 44.1%; 9,564 institutional staffing positions were reclaimed, representing a reduction of 20.6%. At the county level, the total number of public institutions fell from 789 to 429, a streamlining rate of 45.6%; 3,517 institutional staffing positions were reclaimed, corresponding to a reduction of 24.9%.
Adopt innovative approaches to ensure that reforms proceed smoothly and in an orderly manner.
Deepening the reform of public institutions involves the merger or dissolution of agencies and the reallocation of personnel, making it a highly policy‑driven and closely watched endeavor; pilot programs must be advanced in a steady and orderly manner.
Based on thorough investigation and research, the Provincial Organization and Establishment Office drafted the “Implementation Plan for Piloting the Deepening Reform of Public Institutions in Jiangsu Province,” and sought the views of the Central Organization and Establishment Office, relevant provincial departments, the organization and establishment offices of the 13 prefecture-level city Party committees, and those of the four pilot counties (cities, districts). The implementation plan was then revised and refined in light of the feedback received.
Pilot regions have also meticulously refined their reform plans. “A good reform plan must thoroughly grasp the guiding principles of higher authorities and gain a clear understanding of its own circumstances,” said Wang Changcheng, Deputy Minister of the Organization Department of the Xuzhou Municipal Party Committee and Director of the Municipal Institutional Establishment Office. To develop a reform plan that “meets expectations and delivers targeted results,” the Xuzhou Municipal Institutional Establishment Office assigned all its staff—except for senior leaders—to serve as “reform liaisons.” Each liaison was paired with two or three relevant administrative departments, providing one‑on‑one oversight of the units involved in the reforms. Meanwhile, the office’s leadership maintained direct coordination with several reform liaisons, regularly convening to align efforts and advance the pilot initiatives. Li Chong, who serves as a reform liaison for both the Municipal Government Affairs Office and the Municipal Housing and Urban–Rural Development Bureau, told reporters that these two departments oversee a total of 29 subordinate public institutions, each with its own distinct historical trajectory and current circumstances. Their functional responsibilities and staffing profiles are notably complex. Only through close communication and in‑depth dialogue can the team gather first-hand information, effectively promote reform policies, and formulate concrete reform measures that are both policy‑compliant and grounded in reality. Under the guidance of the District Party Committee and the Municipal Institutional Establishment Office, the Jiawang District Institutional Establishment Office has carried out its reform pilot, revising its plan more than 30 times over the course of the process.
In this pilot reform, the city of Wuxi has abolished or consolidated 90 public institutions at the municipal level, affecting more than 2,900 incumbent staff members, including 28 department-level officials and 271 section-level officials. The Organization and Establishment Office of the Wuxi Municipal Party Committee has strengthened the interpretation of reform policies, proactively addressed the concerns of cadres and employees, and ensured the proper placement and rational reallocation of personnel, thereby maximizing consensus on the reform.
Prior to being included in this pilot reform, Changzhou City took the initiative to conduct early trials, reallocating staff from public institutions with weakened functions, insufficient tasks, and surplus personnel through a selection-and-transfer process. Wu Xiaoqin, head of the Business Section at the Municipal Government Finance Settlement Center in Changzhou—formerly a department manager at the Gongyuan Hotel—told reporters: “In 2017, the Gongyuan Hotel was operating at half capacity. When the opportunity for transfer arose, everyone cherished it; my four colleagues and I thus left the hotel and joined new organizations.” Over the past four years, Changzhou has reallocated 112 tenured employees from public institutions via this selection-and-transfer mechanism, and this practice has been maintained throughout the current pilot reform.
Serving the people’s livelihood and strengthening the public-service orientation of public institutions.
Deepening the reform of public institutions entails not only streamlining organizational structures and staffing but also optimizing the allocation of institutional staffing resources, addressing shortcomings in public services, and fostering balanced, robust, and high-quality development of public‑welfare undertakings. Pilot regions have adhered to a dual approach of “slimming down” and “strengthening,” leveraging measures such as institutional consolidation and the reallocation of idle or inefficiently deployed staffing resources to tilt personnel allocations toward universally beneficial, foundational, and safety‑net‑oriented areas of public welfare, thereby effectively alleviating staffing shortages in compulsory education, basic healthcare, and public cultural services.
During the reform pilot period, a total of 5,127 additional institutional staffing positions were approved across the province, including 605 in the pilot areas. Additionally, 10,000 public‑sector staffing posts were reallocated from various localities to Suzhou, Xuzhou, and other regions facing severe shortages of primary and secondary school teachers, to bolster the ranks of full‑time educators. Furthermore, four cities and four counties (county-level cities or districts) collectively received approval for an additional 151 public‑sector staffing positions for their work safety supervision departments, with 36 at the city level and 115 at the county level.
Xu Zhigang, Deputy Director of the Organization Department of the Yangzhou Municipal Party Committee and Director of the Municipal Institutional Establishment Office, stated that, taking advantage of the pilot program, the city has approved an additional 227 institutional positions for municipally‑managed schools and 216 for disease‑control institutions. Nearly 400 of these positions have been earmarked for public‑service sectors such as culture, ecological environment, and workplace safety, as well as for social governance. Furthermore, the city has outlined ten specific measures to ensure that, over the next three years, 50 percent of all newly created institutional posts will be allocated to staffing teachers.
Liyang City has integrated four public institutions—the Cultural Center, the Sports Management Center, the Sports Lottery Center, and the Film and Theater Company—into the Liyang Public Culture and Sports Center. By pooling and sharing the resources of these entities, the city has been able to allocate more personnel to public cultural services.
The Wuxi Municipal Bureau of Natural Resources and Planning grants preferential treatment in staffing allocations to key units or departments that provide essential services to the public. For example, despite a 30‑person reduction in the total authorized headcount at the Real Estate Registration Center, one additional position was added to both the Review Department and the Certificate‑Issuance Department—both of which directly serve the public.
In its reform pilot program, our province has placed a strong emphasis on establishing sound systems and mechanisms. Through the implementation of three key mechanisms—completing lists of administrative and institutional powers, formulating regulations on institutional functions and staffing, and adopting statutes for public institutions—the pilot areas have reinforced the public‑service orientation of these entities. Zhang Xuecai, Deputy Director of the Provincial Organization and Establishment Office, stated: “By establishing lists of administrative and institutional powers, we are encouraging government departments to shift their focus from managing the development of public services within their respective sectors and systems to creating more equitable opportunities and a fairer environment. This also strengthens their responsibilities in formulating policies and regulations, sectoral plans, and standards, while reducing micromanagement and direct intervention in public institutions and granting them greater autonomy.”
In the pilot regions, all public institutions have clearly defined, in their lists of administrative and institutional powers, regulations on organizational functions and staffing, and articles of association, the channels, methods, and procedures for the Party organization to exercise its role.
Adapting to local conditions helps highlight the distinctive features of the work.
In addition to strengthening their public‑service orientation, the pilot program adheres to a locality‑specific approach, taking into account regional economic conditions, historical contexts, cultural traditions, and environmental factors. By optimizing the organizational structure of public institutions, it supports and underpins local development strategies, pillar industries, and distinctive sectors.
Xuzhou’s Jiawang District, guided by its development strategy of “building the district on ecology, strengthening it through industry, boosting it with tourism, and revitalizing it through culture,” has streamlined and standardized several public institutions, including the Research Center for the Transformation and Development of Resource-Depleted Areas, the Shuanglou Logistics Park Management Service Center, and the Pan’an Lake Scenic Area Management Center. Notably, the staffing of the Research Center for the Transformation and Development of Resource-Depleted Areas, which is affiliated with the District Economic Development Bureau, has been increased from 6 to 11 positions.
To better support the development of science and technology innovation platforms such as “Xiake Bay Science City,” Jiangyin City has reorganized its Municipal Science and Technology Innovation Service Center. The center conducts in-depth outreach to key local enterprises, disseminating science and technology policies; it also implements the “Xiake Light” initiative for independent innovation and technological breakthroughs, fostering deep integration between Jiangyin and leading universities and research institutions, including Tsinghua University. In addition, in alignment with the rural revitalization strategy, Jiangyin has allocated 120 temporary staffing positions to towns and subdistricts, energizing village- and community-level leaders to drive development and entrepreneurship. Furthermore, in response to the Yangtze River’s ten-year fishing ban, the city has added 18 public-sector positions to six riverside towns and subdistricts, bolstering law enforcement capacity.
Relying on the Memorial Hall of the New Fourth Army’s Jiangnan Command, Liyang City has established the Jiangnan Iron Army Education Academy and adopted an integrated “academy‑party school” management model with the Municipal Party School, thereby fully leveraging the red resources of the Maoshan revolutionary old base area. The two institutions have jointly developed a core curriculum framework encompassing six thematic modules—red education, Party‑spirit cultivation, integrity education, rural revitalization, ecological innovation, and local culture—and have consolidated local red, ecological, scientific‑technological, and industrial resources to establish nearly 60 field‑study sites and set up 10 micro‑Party‑class venues on-site, striving to create a new landmark for red education in the Yangtze River Delta.
The Water‑Conservation Education Center at the Source of the Eastern Route of the South-to-North Water Diversion Project, established in Jiangdu District, Yangzhou City, will leverage the project’s infrastructure—along with venues such as the Jiangdu Water Conservancy Hub Exhibition Hall, the Sluice‑Gate Science Park, the Huai River–Yangtze River Confluence Cultural Park, and the Integrity‑and‑Clean Governance Cultural Park—to deliver water‑conservation education uniquely rooted in the “source” context, fostering among the public a sense of responsibility to understand, conserve, protect, and engage with water.
The Ministry of Culture and Tourism is seeking public input: Strengthening the regulation of talent agencies to promote the healthy development of the performing arts market.
Recently, the Ministry of Culture and Tourism issued the “Notice of the Ministry of Culture and Tourism on Regulating Performance Agency Practices, Strengthening Actor Management, and Promoting the Healthy and Orderly Development of the Performance Market (Draft for Public Comment)” (hereinafter referred to as the “Notice”), inviting public input. The aim is to tighten oversight of agency offices and foster a healthy, well-ordered performance market.
The Notice, grounded in the current realities of the performing‑arts market and focusing on the weak links in the management of performance‑agency entities, proposes to comprehensively regulate performance‑agency practices and strengthen actor management through five key measures: tightening oversight of entity qualifications, standardizing performers’ professional conduct, enhancing supervision of performance activities, fostering positive fan engagement, and jointly building a healthy performing‑arts ecosystem.
Strengthen the management of entity qualifications. In accordance with the Regulations on the Administration of Commercial Performances and their implementing rules, actor‑management companies and studios engaged in commercial performance‑agency activities—such as artist contracting, promotion, and representation—are brought under the purview of performance‑agency institutions. They must, in strict compliance with relevant provisions, apply to the cultural and tourism administrative authorities for a commercial performance permit and are subject to clearly defined penalties.
The qualification certification system for performing arts agents shall be strictly enforced, requiring all actor‑agent practitioners engaged in commercial performance brokerage activities to hold valid certificates before taking up their duties. Furthermore, for any serious violations committed during their professional activities, the cultural and tourism administrative authorities shall explicitly revoke the relevant qualification certificates and publicly announce such revocations.
Standardize actors’ professional conduct. Actors should consciously uphold the core socialist values and strive to become artists of both moral integrity and artistic excellence. Strengthen the principal responsibility of talent agencies, studios, and related professionals in managing actors, establish a system of self‑discipline and self‑inspection, safeguard the legitimate rights and interests of actors—especially minors—and further regulate their professional behavior. It is strictly prohibited to exploit the recruitment of “entertainment trainees” or similar designations to instill in minors the misguided notion that “fame must be sought early,” thereby misguiding their values.
Strengthen oversight of performance activities. Cultural and tourism administrative departments at all levels shall, in accordance with the law, enhance content management for such activities and uphold sound aesthetic standards. With respect to commercial performances organized by performance agencies, clear requirements are set forth, including cooperation with industry regulators and compliance with statutory tax obligations. At the same time, specific penalties are prescribed for violations of performance‑related regulations, further reinforcing regulatory enforcement; it is explicitly prohibited to organize lip‑syncing by performers or to facilitate conditions that enable such practice.
Strengthen positive guidance on fan‑driven support activities. Actor agencies and studios must ensure proper management of performance venues, refrain from organizing minors to participate in fan‑support rallies or similar events, and prohibit minors from engaging in any support‑related spending beyond normal ticket‑purchasing and attendance. In doing so, they must effectively safeguard the legitimate rights and interests of minors.
Jointly fostering a sound performing‑arts ecosystem. The Notice sets forth, for both cultural and tourism administrative departments and industry associations, requirements related to policy support, law enforcement inspections, credit‑based regulation, and industry self‑discipline, thereby further consolidating collaborative efforts and jointly building a positive, thriving, and well‑ordered performing‑arts environment.
The Supreme People’s Court has revised the jurisdictional threshold for intermediate people’s courts to hear first-instance civil cases, substantially raising the minimum amount in dispute.
On September 23, the Supreme People’s Court issued the “Notice of the Supreme People’s Court on Adjusting the Threshold for Jurisdiction over First-Instance Civil Cases by Intermediate People’s Courts” (hereinafter referred to as the “Notice”), substantially raising the monetary threshold for first-instance civil cases under the jurisdiction of intermediate people’s courts. The Notice shall take effect as of October 1, 2021.
This document of the Supreme People’s Court has been circulated to the higher people’s courts of all provinces, autonomous regions, and municipalities directly under the central government, the Military Court of the People’s Liberation Army, and the Production and Construction Corps Branch of the Higher People’s Court of the Xinjiang Uygur Autonomous Region.
The Notice states that, in order to meet the needs of economic and social development and civil litigation in the new era, to ensure the accurate application of the provisions of the Civil Procedure Law regarding the jurisdiction of intermediate people’s courts over first-instance civil cases, and to appropriately define the civil adjudicatory functions of the four levels of courts, this Notice is hereby issued to adjust the standards for the jurisdiction of intermediate people’s courts over first-instance civil cases.
The Notice clarifies: “Where the domiciles of all parties are either all within or all outside the provincial administrative region where the court of first instance is located, the intermediate people’s court shall have jurisdiction over first-instance civil cases with a subject matter value exceeding RMB 500 million.”
The Notice clarifies: “Where the domicile of one party is not within the provincial administrative jurisdiction of the court hearing the case, intermediate people’s courts shall have jurisdiction over first-instance civil cases with a subject matter value exceeding RMB 100 million.” “Military courts of theater commands and directly affiliated military courts shall have jurisdiction over first-instance civil cases with a subject matter value exceeding RMB 100 million.”
According to the provisions of the Notice: “With respect to new types of cases, cases that are difficult or complex, or cases that bear general guiding significance for the application of law, the higher-level people’s court may, in accordance with Article 38 of the Civil Procedure Law, decide to hear the case itself, or, upon request by the lower-level people’s court, decide to assume jurisdiction over the case.”
The Notice states: “The jurisdictional standards for levels of court set forth in this Notice shall not apply to intellectual property cases, maritime and shipping cases, or civil and commercial cases involving foreign parties or matters concerning Hong Kong, Macao, and Taiwan.” “Any provisions previously issued by the Supreme People’s Court regarding the jurisdictional standards for first-instance civil cases under the intermediate people’s courts that are inconsistent with this Notice shall no longer be applicable.”
With regard to the jurisdictional standards for first-instance civil and commercial cases at the higher and intermediate people’s courts, the Supreme People’s Court issued a document in 2015 to make adjustments, and in 2018 issued another document to revise the jurisdictional standards for certain higher and intermediate people’s courts—specifically those in the six provincial-level administrative regions of Guizhou, Shaanxi, Gansu, Qinghai, Ningxia, and Xinjiang. In 2020, it further adjusted the jurisdictional standards for first-instance civil and commercial cases under the intermediate people’s courts affiliated with the higher people’s courts of Hebei, Henan, and Hunan provinces.
The Supreme People’s Court has, in this adjustment, substantially raised the threshold for the amount in controversy below which first-instance civil cases fall under the jurisdiction of intermediate people’s courts. Taking Guangdong Province as an example, under the provisions of earlier Supreme People’s Court documents, for first-instance civil and commercial cases where both parties are domiciled within the same provincial administrative region as the court hearing the case, the relevant intermediate people’s court has jurisdiction over cases with a subject matter value of RMB 100 million or more (with an upper limit of RMB 5 billion); whereas, for first-instance civil and commercial cases in which one party is not domiciled within the same provincial administrative region as the court hearing the case, the relevant intermediate people’s court has jurisdiction over cases with a subject matter value of RMB 50 million or more.
The Chinese government, together with compatriots at home and abroad, has provided strong support, paving the way for Meng Wanzhou’s return to China.
On the evening of the 25th, Meng Wanzhou arrived in Shenzhen aboard a chartered flight organized by the Chinese government. Returning to her homeland after nearly three years away, she was accompanied by the warm wishes of overseas Chinese and compatriots around the world. The strong support of the Chinese government and fellow countrymen at home and abroad has finally paved the way for this journey home, which has been fraught with challenges.
Meng Wanzhou, who once confessed that “the closer one gets to home, the more timid one becomes,” said on the chartered flight that homesickness is the soul’s haven, present in every moment of her time away from her homeland. Those living abroad can surely relate. During years spent in a foreign land, the mutual support among compatriots feels both natural and deeply precious. From people back in China to overseas Chinese communities, there has been a persistent and fervent call for Canada to release Meng Wanzhou unconditionally. A global online petition gathered nearly 10 million signatures within just 24 hours, and on Canadian social media, voices demanding her release have also grown louder—collectively forming a powerful and widespread public sentiment.
As Meng Wanzhou departed, overseas Chinese in attendance offered words of encouragement and well-wishes, chanting “Meng Wanzhou is innocent” and “May she return home safely.” They took solace in the fact that she would finally be able to return home after the Mid-Autumn Festival’s full moon, and even greater comfort from the Chinese government’s unwavering efforts and steadfast commitment—qualities that have bolstered their resolve and confidence as they strive for success abroad.
Meng Wanzhou’s return to China has shown our compatriots at home and abroad the country’s sense of responsibility.
Following Meng Wanzhou’s arrest in Canada, the Chinese government made its position clear from the outset. In a speech, State Councilor and Foreign Minister Wang Yi stated: “China will never stand by as any bullying behavior that arbitrarily infringes upon the legitimate rights and interests of Chinese citizens goes unchecked. We will spare no effort to safeguard the lawful rights and interests of Chinese nationals and uphold fairness and justice in the world.”
In fulfilling this commitment, over more than a thousand days and nights, the Chinese government has consistently waged a well-founded, evidence-based, and measured struggle, officely and resolutely safeguarding the legitimate rights and interests of Chinese citizens and enterprises operating abroad. Spokespersons for China’s Ministry of Foreign Affairs have repeatedly stated that the Chinese people are a nation that upholds justice and fears no intimidation. China will never accept any form of political coercion or abuse of judicial processes, nor will it allow its citizens to become victims of political persecution in other countries.
Today, Meng Wanzhou returned to China, fully demonstrating that the motherland is the most steadfast backing and safeguard for overseas compatriots, and that the nation’s sense of responsibility is the strongest support and source of strength for them.
Meng Wanzhou’s return home has shown our compatriots at home and abroad that justice is precious.
Hegemonism is deeply unpopular, yet the spectacle of being driven by brute power continues to unfold. In the end, it undermines their own national image, harms the interests of their people, and tramples on the fairness and justice that all humanity strives to uphold.
Meng Wanzhou has already embarked on her journey home, yet even today, many Asian Americans—including Chinese—continue to suffer from racial discrimination and hate crimes, while Chinese scientists still face the threat of arrest and false accusations. They are still waiting for the light of justice to pierce through the darkness.
Meng Wanzhou’s return to China not only underscores the inseparable bond between individual destiny and the nation, but also signals that all parties must join forces to uphold fairness, justice, and the rule of law across the globe, thereby further strengthening efforts to build a community with a shared future for mankind.

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