JC Master Legal News Issue 992

Key Takeaways for This Issue
Major institutional rules for deepening the reform of the New Third Board and establishing the Beijing Stock Exchange have been officially released.
Deepening the reform of the New Third Board and establishing the Beijing Stock Exchange represent a major new strategic deployment by General Secretary Xi Jinping to leverage the capital market in fostering a new development paradigm. They also constitute an important measure to implement the national innovation-driven development strategy and support the innovative growth of small and medium-sized enterprises. To consolidate the institutional foundation for these reforms, the China Securities Regulatory Commission has now promulgated three sets of rules governing issuance and listing, refinancing, and ongoing supervision on the Beijing Stock Exchange, along with eleven related normative documents. Meanwhile, to ensure seamless institutional alignment and further diversify the financing instruments available through the National Equities Exchange and Quotations System, two regulatory rules pertaining to non-listed public companies have been revised, and two sets of content and format guidelines for targeted convertible bond issuances by listed companies have been formulated.
Interpretation of the Central Committee’s Opinions on Peaking Carbon Emissions and Achieving Carbon Neutrality, and the Action Plan for Reaching Peak Carbon Emissions
On October 24, Xinhua News Agency publicly released the “Opinions of the CPC Central Committee and the State Council on Fully, Accurately, and Comprehensively Implementing the New Development Philosophy and Doing a Good Job in Achieving Carbon Peak and Carbon Neutrality” (hereinafter referred to as the “Opinions”); on October 26, the State Council further issued the “Action Plan for Reaching Carbon Peak Before 2030” (hereinafter referred to as the “Plan”).
“Tax Payment Deferral” Demonstrates the Warmth of Policy
Recently, the State Council Executive Meeting announced measures to temporarily defer tax payments for small and medium-sized manufacturing enterprises and other eligible businesses, further bolstering efforts to help companies overcome difficulties. Although the measure is only a “deferral,” this temporary reprieve carries significant weight, easing cash‑flow pressures and helping SMEs navigate challenges and regain vitality.
Supreme People’s Court: Strengthen Judicial Regulation of Monopolistic Practices by Platform Enterprises
According to an opinion released on the 29th by the Supreme People’s Court, people’s courts will strengthen judicial enforcement of antitrust and anti-unfair competition laws, safeguard a market environment governed by the rule of law that promotes fair competition, and adjudicate antitrust and anti-unfair competition cases in accordance with the law.

Finance & Capital Markets
Major institutional rules for deepening the reform of the New Third Board and establishing the Beijing Stock Exchange have been officially released.
Deepening the reform of the New Third Board and establishing the Beijing Stock Exchange represent a major new strategic deployment by General Secretary Xi Jinping to leverage the capital market in fostering a new development paradigm. They also constitute an important measure to implement the national innovation-driven development strategy and support the innovative growth of small and medium-sized enterprises. To consolidate the institutional foundation for these reforms, the China Securities Regulatory Commission has now promulgated three regulations governing issuance and listing, refinancing, and ongoing supervision on the Beijing Stock Exchange, along with eleven related normative documents. Meanwhile, to ensure seamless institutional alignment and further diversify the financing tools available through the National Equities Exchange and Quotations System, two regulations on the supervision of non-listed public companies have been revised, and two sets of content and format guidelines for targeted convertible bond issuances by listed companies have been formulated.
On September 3 and September 17, 2021, the China Securities Regulatory Commission (CSRC) publicly sought comments from the public on the aforementioned regulations and normative documents, and also solicited opinions through symposiums and written submissions. Overall, stakeholders across society demonstrated a high degree of consensus on the underlying rationale, basic framework, and key provisions of these rules. At the same time, they put forward several suggestions for revision regarding operational implementation and the wording of specific articles. The CSRC carefully reviewed and analyzed each proposal; all reasonable recommendations that would strengthen the protection of the legitimate rights and interests of small and medium-sized investors, enhance the standardized operations of listed companies, and improve the relevance and effectiveness of information disclosure have been fully incorporated.
The aforementioned regulations and normative documents, together with the self-regulatory rules formulated by the Beijing Stock Exchange, collectively constitute a system of institutional rules tailored to the characteristics and growth stages of innovative small and medium-sized enterprises, fully reflecting the market’s attributes of differentiation, inclusiveness, flexibility, and broad-based benefits. From the perspective of the regulatory framework, the relevant regulations, normative documents, and self-regulatory rules are seamlessly interconnected, each setting out specific provisions on key institutional arrangements, information disclosure requirements, and self-regulatory oversight. In terms of content, the rules cover all aspects, including issuance and financing, information disclosure, corporate governance, and supervisory management. As for their distinctive features, they adhere to market‑oriented principles, emphasize the exchange’s principal responsibility, and, building upon existing laws, regulations, and rules, grant the Beijing Stock Exchange ample authority to formulate self-regulatory rules in light of actual market conditions.
Going forward, the China Securities Regulatory Commission will thoroughly implement the spirit of General Secretary Xi Jinping’s important speeches, adhere to the principle of seeking progress while maintaining stability, pursue differentiated development and highlight distinctive features, and ensure the effective implementation of all relevant systems. It will fully leverage the Beijing Stock Exchange’s role as a “leading” platform to drive broader market development, continuously strengthen institutional linkages with the Innovation and Basic tiers of the New Third Board, stimulate overall market vitality, and strive to establish itself as a key hub for serving innovative small and medium-sized enterprises, thereby better supporting the high-quality development of the real economy.
The aforementioned regulations and normative documents shall enter into force as of November 15, 2021.

The China Securities Regulatory Commission is soliciting public comments on the “Guiding Opinions on the Transfer of Listed Companies from the Beijing Stock Exchange” (Draft for Comments).
The establishment of the Beijing Stock Exchange (hereinafter referred to as the BSE) is a key measure to deepen the reform of the New Third Board, helping to improve the multi-tiered capital market and better serve the development of the real economy. To further clarify the arrangements related to transfer listings, the China Securities Regulatory Commission has revised the “Guiding Opinions on the Transfer Listing of Companies Listed on the National Equities Exchange and Quotation System for Small and Medium-sized Enterprises,” resulting in the “Guiding Opinions on the Transfer Listing of Companies Listed on the Beijing Stock Exchange” (Draft for Public Comments) (hereinafter referred to as the “Guiding Opinions”). These opinions are now being made public for public comment.
The “Guiding Opinions” have been revised in a total of 15 provisions, primarily covering the following five aspects. First, the legal basis for formulation has been adjusted by deleting the “Decision of the State Council on Certain Issues Concerning the National Equities Exchange and Quotations System for Small and Medium‑sized Enterprises” (Document No. 49 [2013] of the State Council). Second, terminology has been updated: “National Equities Exchange and Quotations Company” and “Select Tier Company” have been replaced with “Beijing Stock Exchange” and “Beijing Stock Exchange Listed Company,” respectively, and “transfer listing” has been changed to “transfer.” Third, the calculation of the listing period has been clarified: when a Beijing Stock Exchange listed company applies to transfer to another board, it must have been listed on the Beijing Stock Exchange for at least one year, and its time listed on the Select Tier and its time listed on the Beijing Stock Exchange may be combined for purposes of this calculation. Fourth, share lock‑up arrangements have been specified: the lock‑up period for shares of a Beijing Stock Exchange listed company after transferring to another board may, in principle, be reduced by the periods during which such shares were already subject to lock‑up on the Select Tier and on the Beijing Stock Exchange. Fifth, adaptive adjustments have been made to the content of relevant provisions.
We welcome valuable feedback from all sectors of society on the “Guiding Opinions.” The China Securities Regulatory Commission will revise and refine the document based on the results of the public consultation and, after completing the requisite procedures, issue and implement it.

The China Securities Regulatory Commission has issued the revised Measures for the Administration of Stock Exchanges.
To implement the spirit of General Secretary Xi Jinping’s important remarks on deepening the reform of the New Third Board and establishing the Beijing Stock Exchange, the China Securities Regulatory Commission has revised and promulgated the Measures for the Administration of Stock Exchanges (hereinafter referred to as the “Measures”).
From September 3, 2021, to October 3, 2021, the China Securities Regulatory Commission (CSRC) publicly solicited comments on the Measures. Overall, stakeholders generally endorsed the revision approach and the key provisions of the Measures. Following careful deliberation, the CSRC incorporated and adopted those suggestions deemed reasonable.
The revision of the Administrative Measures primarily covers three key areas: First, it defines the organizational structure of corporate‑type stock exchanges. In line with the requirements of the Securities Law and the Company Law, it establishes operating mechanisms for the shareholders’ meeting, the board of directors, the supervisory board, and the general manager, thereby forming a standardized and transparent corporate governance framework. Second, it clarifies and refines relevant regulatory arrangements. It stipulates that when a stock exchange formulates or amends business rules, such decisions must be approved by the exchange’s council or board of directors and submitted to the China Securities Regulatory Commission (CSRC) for approval. It also provides that the chairman, vice chairmen, and chairperson of the supervisory board of a corporate‑type stock exchange shall be nominated by the CSRC and appointed by the board of directors and the supervisory board, respectively. Third, it specifies the applicability of certain provisions. With respect to clauses stating that “the surplus of a stock exchange may not be distributed to its members” and terms such as “seats,” it clarifies that these provisions apply only to membership‑based stock exchanges. Additionally, it mandates that directors, supervisors, and senior management of corporate‑type stock exchanges comply with obligations of good faith and integrity, as well as with regulations on concurrent positions and conflicts of interest. Furthermore, adaptive adjustments have been made to the content of related articles.
Going forward, the China Securities Regulatory Commission will guide stock exchanges in earnestly implementing the Measures, and will support and advise the Beijing Stock Exchange in enhancing its corporate governance, effectively exercising its self-regulatory functions, and better serving the high-quality development of the real economy.

The China Securities Regulatory Commission is soliciting public comments on the “Guiding Opinions on Enhancing the Quality of Information Disclosure in Prospectuses under the Registration-Based System (Draft for Comments).”
To earnestly implement the decisions and arrangements of the CPC Central Committee and the State Council, to fulfill the requirements of the registration‑based reform centered on information disclosure, and to further enhance the quality of information disclosed in prospectuses so as to promote high‑quality development of the capital market, the China Securities Regulatory Commission, after thorough research and deliberation, extensive consultation, and drawing on beneficial international experience, has drafted the “Guiding Opinions on Enhancing the Quality of Information Disclosure in Prospectuses under the Registration‑Based System (Draft for Public Comment)” (hereinafter referred to as the “Guiding Opinions”), which is now being made public for public comment.
At the heart of the registration-based system lies information disclosure. The prospectus serves as the primary vehicle for disclosing information during the equity‑issuance phase under this regime, providing investors with the fundamental basis for assessing value and making investment decisions, and constituting the most central and critical legal document in the process of a company’s public listing. Since the pilot implementation of the registration system on the STAR Market and the ChiNext Board, the quality of prospectus disclosures has improved; however, challenges remain, including excessive length, insufficient relevance, an overabundance of compliance‑related content, a diminished role in informing investment decisions, and overly complex or convoluted language. Enhancing the quality of prospectus disclosures is crucial for enabling investors to more effectively identify and leverage meaningful information, for deepening all market participants’ understanding of and appreciation for the registration‑based reform, and for ensuring the capital market’s ability to allocate resources efficiently. It also represents an essential step in steadily advancing the full‑market adoption of the registration‑based system.
The “Guiding Opinions” primarily encompass the following elements: First, the fundamental principles: adhere to an investor‑centric approach to meet the diverse needs of different types of investors; adopt a problem‑oriented stance and implement multiple measures to enhance the quality of information disclosure in prospectuses; and pursue a comprehensive, coordinated strategy to foster synergy across all stakeholders. Second, require issuers and intermediary institutions to fulfill their respective duties and responsibilities and prepare high‑quality prospectuses. Issuers and relevant personnel must ensure that the content of the prospectus is true, accurate, and complete, and cooperate with intermediaries in accordance with the law; meanwhile, each intermediary institution shall assume its due responsibilities and diligently carry out the drafting and preparation of the prospectus in line with its assigned roles and tasks. When preparing the prospectus, issuers and intermediaries should minimize compliance‑related and redundant information, tailor disclosures closely to the issuer’s specific characteristics, and pay particular attention to refining the language and layout of the document. Third, fully leverage the roles of administrative supervision, self‑regulatory oversight, and market‑based constraints to guide improvements in the quality of prospectus disclosures. Relevant departments of the China Securities Regulatory Commission and stock exchanges should strengthen review guidance, refine institutional rules, and other measures to create synergies, thereby encouraging issuers and intermediaries to elevate the quality of prospectus disclosures. Fourth, reinforce accountability to ensure the effective implementation of all measures aimed at improving the quality of prospectus disclosures.
We welcome valuable feedback from all sectors of society on the “Guiding Opinions.” The China Securities Regulatory Commission will, based on the results of the public consultation, further refine the “Guiding Opinions” and issue and implement them after completing the requisite procedures.

Commercial & Corporate
Interpretation of the Central Committee’s Opinions on Peaking Carbon Emissions and Achieving Carbon Neutrality, and the Action Plan for Reaching Peak Carbon Emissions
On October 24, Xinhua News Agency publicly released the “Opinions of the CPC Central Committee and the State Council on Fully, Accurately, and Comprehensively Implementing the New Development Philosophy and Doing a Good Job in Achieving Carbon Peak and Carbon Neutrality” (hereinafter referred to as the “Opinions”); on October 26, the State Council further issued the “Action Plan for Reaching Carbon Peak Before 2030” (hereinafter referred to as the “Plan”).
The central government has successively issued top-level design documents on peaking carbon emissions and achieving carbon neutrality.
I. Policy Framework and Document Positioning
China’s carbon peaking and carbon neutrality strategy adopts a “1+N” policy framework, with the “Opinions” and the “Plan” serving as its guiding documents.
The “Opinions” constitute the “1” in the carbon peaking and carbon neutrality policy framework known as the “1+N” system. They represent the CPC Central Committee’s systematic planning and overarching deployment for advancing carbon peaking and carbon neutrality, encompassing both the peaking and neutrality phases. Serving as a top-level design that guides the long-term trajectory, they play a pivotal, overarching role within the broader policy framework for achieving these goals.
The “Plan” constitutes the overarching framework for the carbon-peaking phase and serves as the leading policy document among the “N” measures. The “Plan”
While maintaining organic alignment with the “Opinions” in terms of objectives, principles, and strategic direction, it places greater emphasis on achieving the carbon peak target by 2030, with related indicators and tasks further refined, made more concrete, and specified in greater detail.
Policy documents for specific sub‑sectors under “N” will be issued in due course. Relevant departments and entities will, in accordance with the Plan,
Deployment will proceed to further develop implementation plans for peaking carbon emissions in sectors such as energy, industry, urban–rural development, transportation, and agriculture and rural areas, as well as in specific industries. Meanwhile, all regions will, in accordance with the requirements of the Plan, formulate their own regional action plans for achieving peak carbon emissions.
II. The “Opinions” Lay Out the Overall Plan for Achieving Carbon Peak and Carbon Neutrality
The “Opinions” as a whole embody three key features: comprehensive green transformation, orderly and secure carbon reduction, and strengthened accountability. Comprehensive green transformation means integrating carbon peaking and carbon neutrality into the overall framework of economic and social development—simultaneously advancing both emissions reductions and carbon removal, balancing production and daily life, and addressing both the demand and supply sides of energy—while adopting a multi‑pronged, systematic approach to emission cuts. Orderly and secure carbon reduction requires, domestically, properly managing the relationships among development and emission reduction, the whole and the parts, and the short term with the medium and long term; it also entails balancing pollution control and carbon reduction with energy security, the stability of industrial and supply chains, food security, and the normal livelihoods of the people. Based on China’s endowment of abundant coal, limited oil, and scarce natural gas, we must adhere to the principle of establishing new capacities before dismantling old ones, stabilize existing stock while expanding new capacity, and avoid overreaction. Internationally, we must “coordinate efforts to engage in both confrontation and cooperation on climate change… and resolutely safeguard China’s development interests.” Strengthening accountability means implementing the principle of joint responsibility between Party and government, accelerating legislation, improving monitoring systems, and reinforcing oversight.
From the perspective of key targets, there is no change for 2025 and 2030; however, for the first time, it specifies that “by 2060, the share of non‑fossil energy consumption will exceed 80%,” thereby setting clear quantitative requirements for the carbon neutrality phase and signaling that, following the peak in emissions, the restructuring of the energy mix will accelerate further. In 2020, the share of non‑fossil energy stood at 15.9% (preliminary estimate); the 2025 target is 20%, implying an average annual increase of 0.82 percentage points during the 14th Five-Year Plan period; the 2030 target is 25%, with an average annual increase of 1 percentage point over the 15th Five-Year Plan period; and the 2060 target is 80%, requiring an average annual increase of 1.83 percentage points between 2030 and 2060. Overall, the adjustment of the energy structure is trending toward acceleration.
From the perspective of emission‑reduction scope, non‑carbon‑dioxide greenhouse gases such as methane will be gradually brought under regulatory control. At the China–France–Germany leaders’ video summit in mid‑April this year, China announced its decision to ratify the Kigali Amendment to the Montreal Protocol, thereby strengthening controls on non‑carbon‑dioxide greenhouse gases like hydrofluorocarbons. Subsequent policies have largely focused on hydrofluorocarbons, primarily addressing the production processes of refrigerants, blowing agents, and fire‑extinguishing agents. This latest document calls for “strengthening the regulation of methane and other non‑carbon‑dioxide greenhouse gases.” Given that methane is the most significant non‑carbon‑dioxide greenhouse gas, policy attention may shift toward methane, with implications for areas such as coal‑mining methane emissions, landfill gas, and livestock manure management, potentially leading to further measures to curb these emissions.
From the perspective of emission-reduction measures, industry takes precedence, with conservation coming first. In terms of the sequence of policy implementation, the approach proceeds in the following order: deeply restructuring the industrial structure (emission reductions in the industrial sector); accelerating the development of a clean, low‑carbon, safe, and efficient energy system (emission reductions in the energy sector); expediting the construction of a low‑carbon transportation system (emission reductions in the transport sector); and enhancing the quality of green and low‑carbon urban and rural development (emission reductions in the building sector). Based on an analysis of emission volumes and the relative ease of achieving reductions, we contend that this sequence likely reflects the prioritized order for future mitigation efforts: industry, energy, transport, and buildings. The paper further builds on the principle that “energy conservation is the most effective form of carbon reduction,” calling for placing energy and resource efficiency at the forefront and implementing a comprehensive conservation strategy—thereby establishing effective mechanisms to control carbon emissions at the source and at the point of entry.

Carbon Neutrality Roadmap Series: Implementation of High-Level Policies Demonstrates Policy Steadfastness
Recently, regulators have been intensively releasing information related to the goals of peaking carbon emissions and achieving carbon neutrality, including: (1) On October 21, the General Office of the CPC Central Committee and the General Office of the State Council issued the “Opinions on Promoting Green Development in Urban and Rural Construction”; (2) On the 23rd, PBOC Vice Governor Liu Guiping, speaking at the Bund Financial Summit, underscored the People’s Bank of China’s role in green finance and outlined its current key priorities; (3) On the 24th, the CPC Central Committee and the State Council released the “Opinions on Fully, Accurately, and Comprehensively Implementing the New Development Philosophy and Doing a Good Job in Peaking Carbon Emissions and Achieving Carbon Neutrality” (hereinafter referred to as the “Opinions”), marking the establishment of the most critical component of the “1+N” policy framework; (4) On the 25th, He Lifeng, Secretary of the Party Group and Director of the National Development and Reform Commission, published an article in the People’s Daily, elaborating on the significance and requirements of the work to achieve carbon peaking and carbon neutrality. Taken together, these developments highlight several points worthy of attention:
Compared with the 14th Five-Year Plan, the Opinions set forth new targets, with the share of non‑fossil energy consumption serving as a key indicator. The document articulates the guiding principles of “national coordination, prioritizing conservation, dual‑driven development, smooth domestic and international flows, and risk prevention,” and outlines specific objectives for three phases—2025, 2030, and 2060. Notably, the short‑term target for 2025 adds two elements—“the share of fossil energy consumption reaching around 20%” and “forest stock volume reaching 18 billion cubic meters”—while omitting the goal of “continuously reducing the total emissions of major pollutants.” Furthermore, this marks the first time that the 2060 target is expressed in quantitative terms: “the share of non‑fossil energy consumption will exceed 80%.”
Compared with supply-side reform, the “dual carbon” goals encompass a much broader range of industries and require profound adjustments to the industrial structure. Against this backdrop, the Opinions lay out detailed and specific measures regarding sector‑specific restrictions, adopting a clear stance: (1) formulate implementation plans for peaking carbon emissions in the energy, steel, nonferrous metals, petrochemicals, building materials, transportation, and construction sectors; (2) conduct follow‑up reviews of capacity‑reduction efforts in the steel and coal industries; (3) rigorously enforce capacity replacement on an equivalent or reduced basis.
Steel, cement, flat glass, and electrolytic aluminum; (4) introduction of capacity‑control policies for coal‑fired power, petrochemicals, and coal‑chemical industries; (5) no new construction or expansion projects shall be approved for refining facilities that are not included in industrial planning; no new ethylene, paraxylene, or coal‑to‑olefins projects shall be permitted; (6) reasonable control of production capacity for coal‑to‑oil and coal‑to‑gas projects.
Compared with top-level design, sector‑level planning is even more stringent. For example, the “Opinions on Promoting Green Development in Urban and Rural Construction” stipulates the need to “vigorously promote ultra‑low‑energy and nearly zero‑energy buildings and develop zero‑carbon buildings,” which sets higher standards than the earlier formulation in the document—“accelerate the large‑scale development of ultra‑low‑energy, nearly zero‑energy, and low‑carbon buildings.”
The refinement of policy mechanisms, coupled with financial support, jointly underpins the advancement of the “dual carbon” goals: (1) On the participation front, mobilizing private capital and encouraging state-owned enterprises to increase green and low‑carbon investments; (2) In terms of financial instruments, this encompasses carbon‑reduction tools, green credit, financing from development‑oriented and policy banks, equity and refinancing in the capital markets, and green bonds. Building on this, PBOC Vice Governor Liu Guiping further proposed conducting climate‑risk stress tests in an orderly manner, continuously strengthening the functionality of the carbon market, and enhancing coordination between fiscal and monetary policies to jointly promote the development of the new‑energy sector and the transformation of traditional high‑carbon industries; (3) Improving fiscal, tax, and pricing policies, including government procurement, tax incentives, and differentiated electricity tariffs; (4) Leveraging market‑based mechanisms such as carbon trading.
Choosing to issue the top-level “dual carbon” policy document at this juncture signifies that medium- and long-term emissions‑reduction targets are not at odds with short-term supply‑security considerations, and price volatility will not undermine policy consistency. On the one hand, although the dual carbon goals are geared toward the long term, industrial planning, supporting policies, and financial instruments all require the early implementation of such a framework; thus, short‑term supply‑demand mismatches have not significantly disrupted the policy’s pace. On the other hand, recent power‑rationing and production curtailments in many regions have weighed on economic growth, yet efforts to ensure coal supply and stabilize prices have yielded solid results, with sales prices at numerous coal‑mining sites already declining—underscoring the effectiveness of macro‑level price‑management measures.

The national carbon market has reached its 100th day—how significant is the impact of CCERs, which can offset up to 5% of allowances?
According to an announcement from the energy exchange, as of October 22, the national carbon market had completed 64 trading days, with a cumulative trading volume of 19.1106 million tonnes of carbon emission allowances (CEAs) and a total transaction value of RMB 863 million. In the listed agreement trading segment, the highest transaction price was RMB 61.07 per tonne, the lowest was RMB 41.00 per tonne, and the average transaction price stood at approximately RMB 45 per tonne.
According to earlier estimates by Zhang Xiliang, Executive Director of the Institute for Energy, Environment and Economy at Tsinghua University, China’s economy-wide marginal abatement cost currently stands at approximately US$7 per ton. For a carbon market to function effectively, the carbon price should be no less than US$7 per ton. By this measure, current carbon prices already exceed that threshold.
However, despite robust trading prices, carbon‑trading volumes have continued to shrink. According to data reviewed by a reporter from Caixin, following the national carbon market’s inaugural day, which saw 4.1 million tonnes traded, transaction volumes have steadily declined, with no large‑scale trades recorded for several consecutive days.
Pang Jun, a professor at the School of Environment of Renmin University of China, told a reporter from Caixin that the national carbon market currently lacks overall activity. The reasons for this include: first, the market participants are relatively limited—only the power sector is currently involved, while high‑energy‑consumption industries such as steel, nonferrous metals, petrochemicals, chemicals, building materials, papermaking, and aviation have yet to join; second, the current allocation of carbon allowances is rather generous, leaving enterprises without a strong sense of urgency; and third, with the compliance deadline still some way off, emission‑control offices remain in a wait-and-see stance.
Industry observers believe that, as the deadline for the first compliance period approaches, the national carbon market is likely to enter a phase of heightened trading activity in the fourth quarter.
Experts recommend moderately tightening quotas.
The power generation sector is the first industry to be included in the national carbon market.
In its initial phase, the national carbon market conducted spot trading of emission allowances exclusively among more than 2,000 key emitting entities in the power generation sector. According to relevant estimates by the Ministry of Ecology and Environment, the carbon emissions of the enterprises included in the first batch of the carbon market exceed 4 billion tonnes. This means that, upon its launch, China’s carbon market became the world’s largest in terms of the total volume of greenhouse gas emissions covered. Among these, emission allowances constitute one of the core components of the carbon market.
According to the “Implementation Plan for Setting and Allocating the National Carbon Emission Trading Quota for 2019–2020 (Power Generation Sector),” a carbon emission quota refers to the limit on carbon dioxide emissions attributable to the generating units owned by key emitting entities, encompassing both direct emissions from fossil fuel consumption and indirect emissions associated with net electricity purchases. The formula for calculating a unit’s total quota using the benchmark method is: Total Unit Quota = Power Supply Benchmark × Actual Power Supply × Correction Factor + Heat Supply Benchmark × Actual Heat Supply.
Zhang Da, an associate professor at the Institute for Energy, Environment and Economy of Tsinghua University, told Caixin that, as China’s electricity, heating, and other energy markets are still undergoing reform, carbon prices cannot yet be fully transmitted from the production side to the consumer end through market mechanisms. To reflect consumers’ responsibility for emissions reductions and unlock their potential to cut emissions, the national carbon market currently covers not only direct carbon emissions from the combustion of fossil fuels but also indirect emissions associated with the use of electricity and heat.
It can be observed that the stringency of emission allowances and the manner in which they are allocated directly determine the liquidity of the carbon market and the level of carbon prices. Consequently, whether or not allowances will be adjusted has become the central issue of concern in today’s carbon market.
Chen Zhanming, Vice Dean and Professor at the School of Applied Economics of Renmin University of China, analyzed for a First Financial reporter that there are three mainstream approaches to international carbon‑quota allocation: the benchmark method, the historical intensity method, and the auction method. Among these, the benchmark method uses the industry’s average emission efficiency as the baseline, favoring offices with advanced emission‑reduction technologies. By contrast, the historical intensity method gives preferential treatment to companies with historically higher emissions—often those whose past technological levels lagged behind the industry average. Both the benchmark and historical intensity methods are based on the principle of free government allocation, whereas the auction method differs in that the initial emission allowances remain under government ownership; offices must acquire them through paid purchases on the market, allowing the government to pool the auction proceeds for green‑development initiatives. At present, China primarily employs the benchmark method, with a few regions piloting the historical intensity method.
Chen Zhanming argues that, from an economic perspective, any quota‑allocation approach—provided it establishes an efficient carbon market—will not undermine either the effectiveness of emissions‑cap compliance or market efficiency; offices can achieve meaningful emission reductions through voluntary trading. However, governments must address two key issues: first, they must align quota design with the overall cap. An excessively high cap risks leaving the market underutilized, while a cap that is too low imposes substantial cost burdens on offices. Second, they need to reduce transaction costs. Regardless of trading volume, each office incurs an initial fixed cost; if trading activity remains too low, these costs are spread thinly, driving up the per‑transaction burden. Accordingly, policy measures should be employed to encourage greater market liquidity and trading activity.
Zhang Da stated that the reason the national carbon market currently does not adopt a fixed total emissions cap, but instead sets one through a combined “bottom-up” and “top-down” approach—thereby establishing a cap with a degree of flexibility—is rooted in China’s national conditions. At present, China’s economy remains in a phase of medium-to-high-speed growth, with uneven development across regions and sectors. The characteristics of this stage of economic development, coupled with the ongoing marketization of the power sector, dictate that, in its early stages, the national carbon market will be, in essence, an intensity‑based system—a multi‑sectoral tradable benchmark for carbon‑emission performance—that simultaneously incorporates both carbon‑tax and subsidy‑type policy incentives.
Zhang Da believes that during the 14th Five-Year Plan period, the national carbon market should strive to achieve full coverage of eight key high‑energy‑consumption, high‑emission sectors. Adhering to the principle of “strictly controlling new emissions,” it should set a nationwide cap on carbon allowances and establish sector‑specific emission benchmarks, thereby actively leveraging the national carbon market to help meet the goal of peaking carbon emissions before 2030. During the 15th Five-Year Plan period, the scope of sector participation and the number of covered enterprises in the national carbon market should be further expanded. Following the principle of “stabilizing overall levels while gradually reducing them,” a national cap on allowances and sector‑specific emission benchmarks should be established, the share of allowances allocated through auctions should be progressively increased, and the national carbon market’s role and standing in achieving the dual carbon goals should be further strengthened.
CCER can be offset at 5%, with a geometric impact.
The first compliance period of the national carbon market commenced on January 1 this year and will conclude on December 31. The key emitting entities involved are required to complete a series of tasks, including data reporting and verification, as well as the settlement and fulfillment of their emission allowances.
On October 26, the website of the Ministry of Ecology and Environment issued the “Notice on Properly Carrying Out the Settlement of Carbon Emission Allowances for the First Compliance Period of the National Carbon Emissions Trading Market,” clarifying that, during the first compliance period of the national carbon market, controlled‑emission entities may use CCERs (Certified Emission Reductions) to offset their carbon emission allowance obligations. According to the regulations, CCERs used for allowance‑offset purposes must meet two requirements: first, the offset ratio shall not exceed 5% of the carbon emission allowances required for settlement; second, such CCERs must not originate from emission‑reduction projects subject to quota management under the national carbon market.
About a month ago, the General Office of the CPC Central Committee and the General Office of the State Council issued the “Opinions on Deepening Reform of the Ecological Protection Compensation System,” which explicitly stipulated: to improve the carbon‑emission‑rights offset mechanism based on the national voluntary greenhouse‑gas emission reduction trading scheme, voluntary greenhouse‑gas emission reduction projects in sectors such as forestry, renewable energy, and methane utilization—projects that deliver multiple ecological and social benefits—shall be incorporated into the national carbon‑emission‑rights trading market.
Pang Jun stated that the aforementioned policies can, through market‑based mechanisms, stimulate the development of forestry carbon sinks and renewable energy. However, CCERs may exert a certain degree of pressure on the national carbon market. Given the currently low trading prices of CCERs, companies are likely to reduce their willingness to purchase carbon emission allowances, thereby affecting both carbon prices and trading volumes. It is worth noting that, since March 2017, the registration process for voluntary greenhouse gas emission reductions has been temporarily suspended. During the first compliance period of the national carbon market, only emission reductions generated prior to March 2017 are eligible as CCERs.
Since both CCERs and the carbon market serve the same carbon neutrality goal, why treat them differently and impose a 5% cap on their use as offsets? Pang Jun explains that a key objective of the carbon market is to reduce the carbon emissions of covered entities by setting an appropriate overall carbon‑allowance cap and by leveraging market mechanisms to internalize the external environmental costs of carbon emissions, thereby incentivizing offices to gradually cut their emissions through technological upgrades and other measures. Although CCERs contribute to overall decarbonization from another perspective, their introduction effectively increases the total supply of carbon allowances, thereby altering the balance between supply and demand. If the CCER offset ratio were too high, it could significantly disrupt carbon‑market pricing and undermine the effectiveness of emission reductions—contradicting the original intent of the policy design. For this reason, CCERs should serve only as a complementary tool to the carbon market, with their offset share strictly capped.
Zhang Da believes that although CCERs can be used to offset compliance obligations, effectively providing additional carbon allowances, this impact remains relatively manageable. On the one hand, current regulations cap the offset ratio at no more than 5% of the required carbon‑emission allowances, a modest share. On the other hand, the supply of carbon allowances is largely determined by the establishment of baselines, leaving room for future adjustments.
Regarding the future development of the carbon market, Lai Xiaoming, Chairman of the Shanghai Environment and Energy Exchange, recently stated that various measures to expand the number of trading entities and broaden the scope of trading in the national carbon market are currently under way. Among these, industries such as non‑ferrous metallurgy, cement, and steel are expected to be brought into the national carbon market by the end of next year. Meanwhile, the entry of institutional investors is also being accelerated.

The entire transaction process for second-hand homes is set to be systematically standardized and is now open for public comment.
After collecting agency fees, what kind of services should real estate agents actually provide to ensure value for money? If buyers and sellers transact directly without an agent, where should they complete the online registration of their agreement? The Municipal Housing and Urban–Rural Development Commission recently issued the “Notice of the Municipal Housing and Urban–Rural Development Commission on Fully Implementing Online Registration for Existing-Home Sales by Real Estate Agencies (Draft for Public Comment),” which will systematically standardize the entire transaction process for secondhand homes. The new regulations are now open for public comment and will take effect in December this year, with a validity period of five years.
With regard to ensuring the authenticity of property listings, the draft for public comment stipulates that when brokerage agencies enter into online brokerage service contracts, they must verify the principal’s household registration book, identification documents, proof of marital status, and the real estate ownership certificate for the property being sold, among other relevant materials. They must also input the seller’s identity information and the real estate ownership certificate number into the online signing system for matching and verification; only properties that pass this verification may be included in the online brokerage service contract and have their sale information published. For properties encumbered by a mortgage, brokerage agencies must clearly disclose this information to the buyer. Furthermore, they may not accept a seller’s mandate to list for sale any property that is undergoing procedures for the reissuance of its real estate ownership certificate or that has been subject to a seizure order—i.e., any property whose transfer is legally restricted.
During the online registration process, the draft for public comment stipulates that all residential property transactions facilitated through a real estate agency shall have their existing-home sales agreements registered online by that agency. The agency is required to carefully verify documents submitted by both parties, including household registration books, identification, proof of marital status, and real estate ownership certificates. If either party fails to present the aforementioned documents, or if the information provided is found to be inaccurate upon verification, the agency shall not proceed with the online registration of the existing-home sales agreement. Furthermore, real estate agencies may not charge any fees for conducting such online registrations.
With respect to cases where the buyer and seller need to amend key information—such as the identity of the purchaser, the purchase price, or the method of payment—the draft also provides clear guidance: both parties shall jointly submit the signed agreement and relevant supporting documents to the district real estate registration hall at the property’s location for written conofficeation. Following the refund of any payments already made, the real estate registration authority will retrieve and destroy the original agreement, delete the original agreement’s details from the online signing system, and then proceed with a new online signing of the existing‑property sales agreement by both parties.
Furthermore, for cases in which the buyer and seller complete a transaction involving existing residential properties directly without the mediation of a real estate agency, the draft opinion explicitly stipulates that they may jointly go to the district-level real estate registration hall where the property is located, where the real estate registration authority will electronically sign the agreement.
Taxation TAXATATION
“Tax Payment Deferral” Demonstrates the Warmth of Policy
Recently, the State Council Executive Meeting announced measures to temporarily defer tax payments for small and medium-sized manufacturing enterprises, among others, further bolstering efforts to help businesses overcome difficulties. Although the measure is only a “deferral,” this temporary reprieve carries significant weight, easing cash‑flow pressures and helping SMEs navigate challenges and regain vitality.
Earlier this year, China introduced a series of tax and fee reduction measures, with a strong emphasis on bolstering support for small and micro enterprises and the manufacturing sector. These measures include VAT and income tax relief, which are expected to cut the burden on market entities by more than 700 billion yuan for the full year. In addition, the latest policy package provides temporary tax deferrals on income tax, VAT, and consumption tax for small, medium, and micro manufacturing enterprises, which is projected to ease their tax liabilities by approximately 200 billion yuan.
Building on a series of existing tax and fee reduction policies, new measures to defer tax payments have been introduced, with the aim of helping small and medium-sized manufacturing enterprises better navigate their current challenges. Since the beginning of this year, China’s economy has continued to recover steadily; however, it is undeniable that businesses—particularly small and medium-sized manufacturing offices—still face significant difficulties, exacerbated by persistently high commodity prices and sharply rising production costs. Alleviating the burden on enterprises and enabling them to meet these challenges has become an urgent priority, necessitating timely support.
We will intensify efforts to cut taxes and fees, ensuring that policy measures are both targeted and effective. At present, the fiscal imbalance between revenue and expenditure is particularly acute, making it difficult to repeatedly rely on tax rate reductions or tax exemptions to ease the tax burden. Under these circumstances, tax deferral has emerged as an important and effective measure: it allows businesses to catch their breath and better withstand market pressures without significantly exacerbating the fiscal imbalance.
In fact, since the onset of the pandemic, China has introduced a series of tax‑deferral measures. At the same time, it has rolled out a range of “temporary relief” policies across other sectors. For instance, in the financial realm, small, medium, and micro enterprises have benefited from deferred principal and interest payments; on the social security front, offices facing severe operational and production challenges may apply to defer social insurance contributions. Most of these measures are subject to specific time limits and involve only deferred payments, yet for many SMEs grappling with cash‑flow constraints, they represent much‑needed support. In the face of adversity, businesses urgently require a helping hand to stay afloat and pursue sustainable growth. The deferral policy allows them to catch their breath and move forward with reduced burdens amid harsh market conditions.
The success of sound policies hinges on effective implementation. Small, medium, and micro enterprises often have limited financial and accounting resources and may struggle to fully and promptly grasp policy details, making it crucial to bridge the “last mile” in policy delivery. To this end, it is essential to intensify outreach, interpretation, and guidance on tax‑deferral measures, ensuring that businesses are well informed. At the same time, administrative procedures should be streamlined and processing times accelerated to guarantee that business‑friendly policies are delivered precisely, swiftly, and directly to those who need them. In recent years, tax authorities have leveraged big data to deliver targeted policy information, enabling enterprises to access benefits in a timely, “point‑to‑point” manner—practices that deserve wider adoption and further refinement.

Qingdao: Launches the nation’s first “V‑Tax Cloud” platform, enabling real-time data sharing between tax authorities and property developers.

Recently, the “V‑Tax Cloud” intelligent platform for land value‑added tax settlement, jointly developed by the Municipal North District Tax Bureau of Qingdao and Vanke Real Estate Group Co., Ltd., has gone live. This marks the launch of the nation’s first real‑time data‑sharing platform integrating tax authorities and enterprises. After three years of iterative upgrades, V‑Tax Tong has achieved a leap from “direct connection” to “interconnection” and now to “intelligent connectivity,” with data‑driven capabilities significantly enhancing the effectiveness of tax governance.
It is understood that, following the platform’s launch, Vanke Qingdao Real Estate Group, in accordance with the tax authorities’ clearance and audit findings, completed the payment of RMB 52.1243 million in land value-added tax for the Vanke Future City project in Qingdao’s Shibei District on the very first day of operation, while simultaneously receiving a tax refund of RMB 42.3383 million for the Vanke Zitai project in the same district.
“Previously, settling land value-added tax took more than three months. After we implemented the ‘Tax‑Enterprise Smart Connectivity’ system with the tax authorities, we can now complete the entire process in just seven days—tax administration via the internet is incredibly efficient,” said Hu Gang, the finance director of a company.
Hu Gang further stated that, following the establishment of the “Tax‑Enterprise Smart Connectivity” data channel, both tax authorities and enterprises can fully leverage the power of data, enabling real-time sharing of financial and tax information. For instance, real estate companies no longer need to prepare voluminous paper files for land value‑added tax finalization; the tax bureau can simply conduct batch comparisons and reviews online of the company’s revenue, costs, invoices, and settlement details. This approach has improved efficiency by at least 90% compared with the previous practice of manually verifying the authenticity of each invoice, significantly reducing both labor and time costs for businesses and facilitating rapid land value‑added tax clearance in Qingdao. Moreover, the real‑time information provided by “Tax‑Enterprise Smart Connectivity” is crucial for helping enterprises strengthen their internal risk‑control systems.
“Land value-added tax settlement is not only complex but also highly challenging, with both tax revenue losses and risks to tax enforcement coexisting,” said Liu Dong, head of the Discipline Inspection Group at the Municipal North District Tax Bureau of Qingdao. To ensure that reforms in tax collection and administration proceed steadily and sustainably, the tax authorities have, on the one hand, strengthened information sharing and mutually beneficial cooperation with taxpayers and payers through “tax‑enterprise‑intelligence connectivity”; on the other hand, they have actively promoted social co‑governance and open innovation, implementing a new land value‑added tax settlement mechanism based on “double random inspections, one public disclosure,” thereby effectively enhancing social oversight.
Yin Jianwei, Deputy Director of the Municipal North District Tax Bureau, stated that in accordance with the requirements of the “Opinions on Further Deepening Tax Collection and Administration Reform,” issued by the General Office of the CPC Central Committee and the General Office of the State Council—specifically, the goal of “building smart taxation driven by tax‑related big data”—the tax authorities have aligned themselves with current trends in enterprise data‑intelligence application platforms. This has enhanced the effectiveness of big‑data applications, reduced the administrative burden on taxpayers associated with submitting invoice details, financial statements, sales records, and other supporting documents, and laid a solid foundation for conducting precise and efficient clearance audits. As a result, refined, intelligent tax services have been delivered, tax administration costs have been significantly lowered, and risk‑management capabilities have been strengthened.
Since the beginning of this year, the Municipal North District Tax Bureau of Qingdao has initiated 19 tax settlement projects, an increase of 17 compared with last year, and collected RMB 380 million in taxes—24.3 times the total for all of 2020. As a result, the professionalism, impartiality, and transparency of land value-added tax settlements have been significantly enhanced, and the “technology plus collaborative governance” approach to innovating the grassroots-level “taxation internet” has yielded tangible results.
The reporter also learned that “Tax‑Enterprise Smart Connectivity” enables homebuyers to obtain their property ownership certificates more quickly. As the first tax authority in China to share data with real estate companies in real time, the Municipal North District Tax Bureau of Qingdao has pioneered the use of an “invoice‑bridging system” to link housing units with invoices and issue electronic invoices in bulk, thereby making the vision of “obtaining the certificate upon handover” a reality. According to reports, more than 90% of commercial residential properties developed by Vanke Real Estate Group in Qingdao now achieve this seamless process.
“In the past, buying a home meant handling one task at a time—handing over the keys, paying taxes, and obtaining the property certificate. Now, you can get your property deed right when you take possession of the keys, with several procedures completed in one go,” Ms. Wang from Vanke Future City told our reporter.
Relevant officials stated that the seamless integration of big data across multiple agencies—including tax authorities, natural resources and planning departments, the National Development and Reform Commission, civil defense offices, and real estate enterprises—is the prerequisite for achieving “certificate issuance upon property handover.” From the rapid, batch‑generation of electronic invoices at the front end to the coordinated, end‑to‑end linkage of approval, surveying and mapping, acceptance inspection, stamp‑duty payment, and property‑rights certificate processing, this “smart connectivity” enables data to flow more efficiently online while reducing in‑person visits for taxpayers and payers, thereby delivering a one‑stop service characterized by streamlined procedures, minimal turnaround time, and completion in a single step.
 
Guizhou: Deepening Tax Collection and Administration Reform to Strive for Six Innovations

On October 15, the Guizhou Provincial Tax Service of the State Taxation Administration held a press briefing to introduce the key contents and implementation progress of the “Guizhou Province Plan for Further Deepening Tax Collection and Administration Reform” (hereinafter referred to as the “Plan”).
According to the introduction, the Plan fully upholds the “Opinions of the CPC Central Committee and the State Council on Further Deepening Tax Collection and Administration Reform” and seamlessly aligns with Guizhou’s overarching “1234” framework, striving to advance six major innovations in tax administration.
The Plan clearly states that it is essential to leverage Guizhou’s advantages as a comprehensive big data pilot zone, comprehensively advance the digital upgrading and intelligent transformation of tax collection and administration, and establish a modern tax governance system that evolves from informationization to digitization and ultimately to intelligentization. At the same time, efforts will be accelerated to build smart taxation, steadily implement the electronic invoicing reform, and deepen the sharing and application of tax‑related big data. To this end, Guizhou Province has established a three‑tier tax‑related big data sharing mechanism at the provincial, municipal, and county levels, with the Guizhou Provincial Big Data Administration taking overall responsibility for planning and constructing a dedicated data zone for tax‑ and fee‑related data, thereby institutionalizing and operationalizing the physical and systematic sharing and joint use of such data. In accordance with the Guizhou Provincial Regulations on Government Data Sharing and Openness, local tax authorities are tasked with assisting their respective people’s governments in conducting performance assessments and evaluations of tax‑ and fee‑related data sharing, regularly publishing the results of these evaluations, and enhancing the scope of data sharing, regulatory oversight, and service quality.
“To deepen the sharing and application of tax‑related big data, the Plan stipulates that the Office of the Provincial Leading Group for Deepening Tax Collection and Administration Reform will annually update and publish the ‘List of Responsibilities for Inter‑Agency Collaboration on Tax‑Related and Fee‑Related Matters’ and the ‘Government‑Related Tax‑and‑Fee Data Inventory.’ This fully reflects Guizhou’s reform vision of leveraging its big‑data advantages to advance data sharing in an orderly manner and continuously strengthen inter‑departmental coordination. To date, the 2021 edition of the ‘two lists’ has been finalized, identifying 31 collaborative tasks involving more than 20 departments, as well as 226 forms and 2,592 data items related to tax and fee data, covering 50 government departments,” said Chang Yuhua, Deputy Director of the Tax Big Data and Risk Management Bureau of the Guizhou Provincial Tax Service of the State Taxation Administration.
The Plan sets forth new requirements for optimizing tax enforcement across such areas as tax administration authority, principles of revenue collection, the tax and fee regulatory framework, law‑enforcement coordination, and internal controls. It also establishes new standards for safeguarding national tax security and protecting the legitimate rights and interests of market entities by standardizing tax policy management and regulating tax‑enforcement practices. On the one hand, governments at all levels are strengthening organizational leadership over tax collection and administration, ensuring that tax and fee revenues are collected in accordance with the law and that preferential tax and fee policies are implemented as prescribed. On the other hand, they are steadily advancing the enactment, amendment, repeal, and interpretation of local tax and fee regulations and policies, while reinforcing the legal, standardized, and normative development of local tax and fee management—particularly non‑tax revenue—thereby providing a unified framework for local tax and fee administration. At the same time, enforcement approaches are being refined to ensure that tax enforcement is both rigorous and humane.
Zhou Yanfeng, Deputy Director of the Tax Collection and Administration and Science & Technology Development Division of the Guizhou Provincial Tax Service of the State Taxation Administration, stated: “Guizhou Province has introduced a series of measures to optimize tax enforcement practices. By employing non‑coercive methods such as persuasion, education, and proactive reminders, we have implemented ‘reason‑based enforcement’ in tax inspections, striking a balance between leniency and strictness while integrating law with reason. We have also streamlined online processing for minor penalties, enabling taxpayers and payers to handle cases with clear facts and no disputes through digital channels. Furthermore, we have put into effect the ‘first‑offense‑no‑penalty’ list, exempting ten categories of tax administrative penalties for first‑time violations, thereby fostering a business environment characterized by greater flexibility. In addition, we have fully implemented the ‘three systems’ to standardize enforcement procedures, promote cross‑regional enforcement cooperation, and simplify interprovincial transfer procedures for enterprises’ tax‑related matters. Finally, we emphasize personalized, precision‑based enforcement, leveraging tax big data and adopting a ‘credit + risk’ framework to target medium‑ and high‑risk taxpayers with tailored measures, thus minimizing disruption to compliant taxpayers.”
The Plan places taxpayers and payers at its core, focusing on the bottlenecks, difficulties, and pain points that hinder public service delivery. It aligns closely with the requirements for government services—“province-wide handling, one‑stop online processing, single‑document processing, one‑window service, and cross‑provincial handling”—and takes “streamlining processes, reducing steps, minimizing documentation, shortening timelines, lowering costs, and enhancing service quality” as key leverage points. By vigorously promoting high‑quality, efficient, and intelligent tax and fee services, it actively builds a new tax‑and‑fee service system characterized by “comprehensive offline coverage, round‑the‑clock online access, and widely available customized services,” while continuously strengthening the “VIP‑style service” brand in the tax sector. The goal is to achieve the highest levels of service efficiency, the most standardized management, the greatest market dynamism, and the lowest overall costs, thereby helping Guizhou’s business environment rise into the national forefront.
Han Xiumei, a fourth-level researcher at the Taxpayer Services Division of the Guizhou Provincial Tax Service Bureau of the State Taxation Administration, stated: “We have continuously advanced the ‘Spring Breeze’ initiative to make tax services more convenient for taxpayers, establishing a service system that prioritizes online processing, supplements it with self-service options, and relies on smart tax service halls as a safety net. We have also promoted acceptance of applications with missing documents and the ‘at most one visit’ policy, effectively enhancing the taxpayer experience. Meanwhile, we have sustained efforts under the leadership‑officials campaign ‘Visiting Thousands of Enterprises, Listening to Public Opinion, Delivering Practical Results’ and the special ‘Spring Rain Nurtures Seedlings’ initiative, helping taxpayers and payers fully leverage preferential policies and resolve tax‑related issues. Leveraging the ‘Tax Credit Cloud,’ we have supported small and medium‑sized enterprises in accessing financing; from January to September 2021, 37,200 taxpayers secured unsecured, collateral‑free loans totaling RMB 10.182 billion based on their tax credit scores, thereby actively fostering and invigorating market entities.”
The Plan stipulates that people’s governments at or above the county level shall establish supporting mechanisms to enable tax authorities to strengthen prevention, control, and oversight of tax‑evasion practices such as concealing income, falsely inflating costs, and shifting profits. It calls for the full utilization of “Internet Plus Supervision” tools to reinforce risk management and regulatory oversight in key areas, precisely cracking down on tax‑related illegal and criminal activities—including “fake enterprises,” “fake exports,” and “false declarations”—and, in accordance with prescribed procedures, imposing joint punitive measures on individuals with serious breaches of trust, thereby fostering a more equitable, fair, and orderly market competition environment.
According to reports, the Guizhou Provincial Tax Service of the State Taxation Administration plans to basically establish, by 2023, a new tax‑administration regulatory system that relies on “dual random inspections with public disclosure” and “Internet plus regulation” as its core tools, supplemented by targeted oversight, and grounded in “credit‑plus‑risk” based supervision. This will enable a shift from tax administration based on invoices to data‑driven, categorized, and precision‑targeted regulation, while rigorously cracking down on tax‑related illegal and criminal activities in accordance with the law. For individuals or entities with serious breaches of trust, joint punitive measures—including restrictions on high‑end consumption—will be imposed in coordination with multiple departments.
The Plan sets out specific requirements for deepening interdepartmental collaboration, promoting social participation, strengthening tax‑related judicial safeguards, and enhancing international tax cooperation. The provincial tax system will proactively seek the understanding and support of all departments and sectors of society, promptly establish a smoothly functioning, coordinated, and highly efficient horizontal coordination mechanism, and forge a new landscape of sincere and collaborative governance.
“At present, the tax authorities, public security organs, market regulators, customs, and the People’s Bank of China have established a coordinated law‑enforcement mechanism, actively promoting cross‑departmental collaborative supervision and advancing the institutionalization, standardization, digitalization, and routine operation of joint investigations between police and tax authorities. Meanwhile, departments such as taxation, natural resources, housing and urban–rural development, human resources and social security, and finance have set up cooperation frameworks to jointly strengthen local tax and fee collection and administration. The implementation of these measures will further enhance governance effectiveness and foster a sound market order,” Zhou Yanfeng stated. “The tax authorities will also proactively integrate into the Belt and Road Initiative, intensify policy guidance for taxpayers operating overseas, and help them mitigate cross‑border tax risks.”
In addition, the Plan sets higher standards for tax authorities at all levels by optimizing the efficient allocation of tax administration resources, strengthening capacity-building in tax administration, and improving performance appraisal. At present, the Leading Group for Deepening Tax Administration Reform in Guizhou Province has been established, and municipal and county-level tax authorities will also successively set up reform leading groups chaired by government officials in charge. These groups will refine cross-departmental coordination mechanisms and advance, in a coordinated manner, matters such as business collaboration, data sharing, and performance evaluation, thereby providing robust organizational support for the reform.
Zhou Yanfeng stated that the tax system of Guizhou Province will treat the thorough implementation of the “Opinions” and the “Plan” as its central task for the present and the period ahead, ensuring that reform tasks are carried out in meticulous detail and that new, pragmatic reform measures are formulated. Starting with the bottlenecks, difficulties, and pain points that have drawn strong complaints and concentrated conflicts from taxpayers and payers, the province will spare no effort to win the tough battle of reform.

U.S. proposal for a minimum corporate tax unveiled; a billionaire tax is also on the horizon.
On Tuesday, local time, three Democratic senators in the United States unveiled details of a proposal to impose a 15% minimum corporate tax on large corporations. The Democrats hope this tax will help fund their ambitious spending plan.
The aforementioned proposal was introduced by U.S. Senators Elizabeth Warren and Angus King, along with Senate Finance Committee Chairman Ron Wyden. It would require companies with profits exceeding $1 billion to pay at least a 15% corporate income tax, even if they qualify for substantial tax deductions.
According to the proposal, the minimum corporate tax will apply only to companies that have publicly reported annual profits exceeding $1 billion for three consecutive years; however, the proposal retains flexibility for tax credits related to research and development, clean energy, and housing.
“When it comes to paying their fair share of taxes, the most profitable companies are often the biggest offenders. They frequently report record-breaking profits yet pay little to no tax. This proposal will help address the issue of tax avoidance and evasion by large corporations,” Wyden said.
Democrats plan to use it as an alternative to raising the standard corporate income tax rate. This minimum tax would apply to roughly 200 U.S. companies whose effective rates under the current corporate tax system are too low, potentially generating hundreds of billions of dollars in additional revenue for the government over a decade. In March of this year, the White House proposed a 15% minimum corporate tax, with a profit threshold set at $2 billion.
At present, this proposal has not yet received formal approval from the leaders of the Senate and the House of Representatives, but Warren stated that the plan has already been endorsed by the White House and the Treasury Department.
In addition to the minimum corporate tax, the United States is also planning to introduce a billionaire tax. On Wednesday, local time, Ron Wyden, chairman of the U.S. Senate Finance Committee, issued a statement unveiling a plan to tax unrealized capital gains held by the ultra-wealthy, which he dubbed the “billionaire tax.” The tax would apply to individuals who have held assets worth more than $1 billion for three consecutive years or whose annual income exceeds $100 million, affecting roughly 700 people. Analysts estimate that this measure could generate hundreds of billions of dollars in revenue.
On the specifics of taxation, wealthy individuals may opt to pay their taxes over a five-year period, while ultra‑wealthy taxpayers can designate stocks valued at up to $1 billion as “non‑transferable assets,” thereby safeguarding their ability to maintain effective control over their businesses.
“Imposing a billionaire tax is a historic step that can restore fairness to the tax code and provide funding for investments that benefit American families,” Wyden said.
However, Wyden’s plan may spark controversy. At present, House Democrats remain hesitant about the proposal, while some wealthy individuals have already voiced their opposition.
The billionaire tax differs significantly from the wealth tax previously proposed by Senators Warren and Sanders. The former taxes only unrealized capital gains, whereas the latter would impose a tax on the entire wealth of high-net-worth individuals.

Litigation & Arbitration
Supreme People’s Court: Strengthen Judicial Regulation of Monopolistic Practices by Platform Enterprises
According to an opinion released on the 29th by the Supreme People’s Court, people’s courts will strengthen judicial enforcement of antitrust and anti-unfair competition laws, safeguard a market environment governed by the rule of law that promotes fair competition, and adjudicate antitrust and anti-unfair competition cases in accordance with the law.
In accordance with the “Opinions of the Supreme People’s Court on Strengthening Intellectual Property Adjudication in the New Era to Provide Strong Judicial Services and Guarantees for Building a Country Strong in Intellectual Property,” the Supreme People’s Court will issue judicial interpretations on civil antitrust disputes and on unfair competition, release typical cases, and leverage their “traffic‑light” function to clarify judicial rules and regulate the conduct of market entities.
The opinion proposes strengthening judicial regulation of monopolistic practices by platform enterprises, imposing strict legal penalties on behaviors such as forcing merchants to choose between platforms and engaging in “big data price discrimination,” which undermine fair competition and disrupt market order. It seeks to effectively safeguard consumers’ legitimate rights and interests and the public interest, while upholding and promoting fair competition in the market.
This document sets forth 20 policy measures across four key areas—work requirements, impartial administration of justice, enhanced efficiency, and deepened reform—to comprehensively strengthen intellectual property adjudication in the new era. Notably, it explicitly calls for the lawful application of punitive damages, increasing both the level of compensation for IP infringement and the severity of sanctions against infringing conduct, thereby promptly and effectively deterring such behavior. It also advocates strengthening regulation of frivolous and malicious litigation, preventing the abuse of intellectual property rights, and advancing the development of an integrity‑based system for IP litigation.
The opinions also emphasize strengthening the development of high-level intellectual property adjudication institutions and establishing a judicial system characterized by specialized case handling, centralized jurisdiction, and streamlined procedures. They further call for bolstering the intellectual property judiciary by cultivating a team that is politically steadfast, committed to the overall interests, well-versed in the law, familiar with relevant technologies, and equipped with an international perspective. In addition, efforts should be made to advance smart court initiatives, vigorously promote the integration of information technology with intellectual property adjudication, and elevate the level of digitalization.
Zhong Zhengsheng: Go all out to hunt down the “fish that slipped through the net” and win this crucial, ongoing battle against organized crime and evil forces!
Launching the operation to hunt down “loophole‑escaping” fugitives is the first of the “Ten Practical Measures” marking the inaugural year of the regularized campaign to eradicate organized crime and evil forces. Since April this year, political and legal organs at all levels nationwide have responded promptly and pressed ahead with vigorous efforts, forming task forces, coordinating joint operations, and deploying a comprehensive set of measures, thereby generating strong momentum in the manhunt and achieving significant progress.
All fugitives involved in organized crime and gang-related offenses must be rounded up, with every effort made to eradicate the scourge. We must remain guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the decisions and arrangements of the CPC Central Committee, and adopt robust measures to track down and apprehend those who have slipped through the cracks. By year’s end, we aim to bring all domestic fugitives to justice and achieve a substantial increase in the rate of bringing overseas fugitives to justice, thereby driving the resolution of a number of major and high‑profile cases. In this critical, ongoing campaign to combat organized crime and evil forces, we must strive for complete victory.
I. Fully recognize the significant practical importance of the operation to apprehend “fugitives who have slipped through the cracks.”
The operation to hunt down “fugitives who slipped through the net” is the first of this year’s ten concrete measures under the ongoing campaign to eradicate organized crime and evil forces. If fugitives involved in organized crime and evil activities are not promptly apprehended and brought to justice, it will inevitably impede progress in case handling and undermine the overall effectiveness of the campaign in its inaugural year. The pursuit of these “fugitives who slipped through the net” is of paramount importance and carries profound significance.
— Pursuing the “fish that slipped through the net” is a crucial campaign in this year, which marks the start of a sustained effort. Under the relentless crackdown and high-pressure measures implemented by local authorities and relevant departments, the hiding places of fugitives have been drastically narrowed, and the number of those brought to justice through apprehension or voluntary surrender continues to rise. However, the remaining individuals who have yet to turn themselves in remain formidable challenges. The success of this pursuit serves as a key indicator of whether our resolve is office and our actions are effective in this inaugural year of the ongoing campaign to eliminate organized crime and evil forces. We must steel our resolve, concentrate our best resources, and send a resolute message: “As long as even one fugitive remains at large, the manhunt will never cease,” ensuring that all those who should be pursued are brought to justice.
— Pursuing and capturing “fugitives who slipped through the net” is a crucial measure to address public concerns. A significant portion of these fugitives are ringleaders or core members of organized crime and evil forces; even after going into hiding, the public remains apprehensive, fearing their resurgence. As long as these suspects remain at large, the people cannot enjoy peace of mind. By launching operations to track down and bring these fugitives to justice, we must ensure that all escapees are rounded up and returned to custody, preventing criminal gangs from once again inflicting harm on the populace, thereby giving the public reassurance and enabling them to live and work in safety and stability.
— Pursuing the “fish that slipped through the net” is a key lever for driving the implementation of the “Ten Practical Measures.” Some of these fugitives evade capture thanks to inside information from their protective umbrellas; others hold high‑ranking positions and control vast amounts of criminal intelligence; still others transfer and conceal substantial illicit funds before fleeing. Moreover, even after going into hiding, the illicit networks that monopolize profits in specific industries remain only partially dismantled and untangled, leaving affected enterprises struggling to stay afloat. By launching operations to track down these escapees, we can spur deeper progress in handling major cases, dismantling protective umbrellas and criminal networks, severing financial lifelines, and improving sector‑specific governance—producing a ripple effect that sets the entire system in motion.
II. Accurately Assess the Progress and Effectiveness of the Earlier Pursuit to Capture “Fugitives Who Escaped Detection”
Public security organs at all levels have designated the operation to apprehend “fugitives who slipped through the net” as a key political task in the ongoing campaign to combat organized crime and evil forces, striving to overcome the impact of the pandemic, fully leveraging their role as the main force, and making every effort to bring these fugitives to justice, with notable results. To date, of the 680 targeted fugitives, 577 have been captured, yielding an apprehension rate of 84.9%; among them, 554 domestic fugitives have been brought to justice, with an apprehension rate of 97.4%.
Due to a variety of factors, the operation to apprehend “fugitives who have slipped through the cracks” has encountered certain difficulties and challenges. First, there is regional imbalance: while some provinces have achieved a 100 percent surrender rate, others still lag behind. Second, there is an internal–external imbalance: the rate of domestic fugitives turning themselves in remains relatively high, whereas the rate for those fleeing abroad remains low. The failure to bring these “loophole‑skipping” suspects to justice stems not only from objective factors such as the COVID‑19 pandemic, but also from subjective shortcomings, including insufficient awareness and inadequate enforcement efforts. It is imperative to elevate our political stance, strengthen our sense of responsibility, resolutely overcome war‑weariness and complacency, and make the most of the remaining two-plus months of this year by exhausting every possible measure to ensure that all targeted fugitives are brought to justice.
III. Strive to accomplish the objectives and tasks of the operation to apprehend “fugitives who slipped through the net”
The operation to hunt down “loophole‑escaping” fugitives is aimed at rounding up all outstanding suspects and eradicating organized crime once and for all, thereby ensuring the comprehensive completion of this year’s ten key tasks under the regularized campaign to combat organized crime and eliminate evil forces.
— Pursue all fugitives to the fullest extent. Closely monitor the list of targeted fugitives, continue to intensify concentrated arrest operations, and ensure that by year’s end all domestic fugitives and those on the A‑level wanted list are brought to justice, while significantly increasing the rate of apprehension of fugitives abroad. Local authorities must persist in thorough investigations, bringing into the pursuit network individuals who have fled to evade prosecution but have not yet been designated as targets by the Ministry of Public Security, so as to leave no loose ends.
— Breaking through major cases. In some instances, the principal perpetrators of organized crime and evil forces have fled, severely impeding progress in case investigations. We must apprehend a group of fugitives involved in serious and major cases to secure crucial evidence and vital leads, thereby expediting breakthroughs and ensuring that these cases are resolved as rock-solid cases that can withstand scrutiny under the law, by the public, and in the annals of history.
— Cutting off the “protective umbrella” will sever their financial lifeline. Among those on the run, some are key figures who have colluded with “protective umbrellas,” while others are pivotal members of criminal gangs responsible for managing illicit funds. By apprehending the remaining fugitives and bringing them to justice, we can “pull up the radish and expose the soil,” further uncovering a new wave of “protective umbrellas,” confiscating additional stolen proceeds and ill-gotten wealth that has been transferred or concealed, and thereby completely dismantling the criminal syndicates’ networks of influence and their economic foundations. Only then can we truly achieve the goal of “striking at the umbrellas, breaking the networks, cutting off the roots, seizing the assets, and cutting off the flow of funds to ensure no future resurgence.”
— Purifying the social climate. Many fugitives have long entrenched themselves in specific locales, severely undermining the local political environment, economic order, and social ethos. By bringing to justice those who have slipped through the cracks, we can uphold the authority of the rule of law, address the shortcomings and weaknesses in social governance, and achieve the desired outcome of apprehending one individual, resolving one case, serving as a deterrent to many, and cleansing an entire region.
IV. Promptly introduce robust and effective measures to pursue and apprehend the “loophole‑escaping” suspects.
The operation to hunt down “loophole‑escaping” suspects is a showdown between justice and evil, and it will determine whether the ongoing campaign to eradicate organized crime and eliminate evil forces can be advanced in depth. It is imperative to introduce innovative measures, intensify efforts, and press ahead with solid implementation, striving for an all‑round victory.
— Devote all efforts to apprehending and bringing fugitives to justice. Take the initiative in pursuing fugitives by further implementing the “one fugitive, one file” working mechanism, conducting a thorough re‑examination and verification of those who have fled, carrying out case‑by‑case analysis, and rigorously uncovering leads. Wage an information‑driven campaign to track down fugitives, making full use of data resources from public security organs and relevant departments, and leveraging modern technologies such as big data and cloud computing to leave no stone unturned in identifying even the slightest clues, thereby enhancing the effectiveness of fugitive‑tracking operations. Establish specialized task forces for fugitive pursuit, adopting a “one fugitive, one dedicated team” approach; select highly qualified, capable, and resolute investigators, meticulously devise comprehensive pursuit plans, and ensure foolproof execution. Strengthen overseas fugitive‑tracking efforts, actively engaging in international law‑enforcement cooperation to bring fugitives back home.
— Accelerate case handling in accordance with the law. Further strengthen awareness of the rule of law, and while pursuing fugitives, promptly secure evidence and establish the facts in compliance with the law, striving to ensure that, upon the apprehension of fugitives, investigations are concluded smoothly and cases are transferred for prosecution. The procuratorial organs should intervene at an early stage to effectively guide public security organs in investigation and evidence collection, thereby expediting case proceedings. The judicial organs should bolster their specialized investigative teams, enhance the quality and efficiency of case handling, and minimize the adverse impact on case adjudication resulting from the flight of offenders. Strengthen the “three‑pronged review” for each case, and ensure that criminal networks and illicit assets are thoroughly dismantled in accordance with the law.
— Strengthening mechanisms to prevent fugitives from escaping. Enhancing proactive oversight and promptly adjusting and implementing control measures to ensure that criminals cannot flee at the first sign of trouble. Plugging loopholes that facilitate overseas flight, cracking down rigorously on human smuggling, and resolutely keeping all persons involved in criminal cases within the country’s borders. Intensifying efforts to combat the use of offshore companies, underground money‑laundering networks, virtual currencies, and other channels to transfer illicit proceeds, ensuring that ill‑gotten gains cannot be concealed or transferred abroad, while remaining traceable and recoverable domestically.
V. Strengthening Organizational Support for the Operation to Pursue and Capture “Fugitives Who Have Escaped Justice”
The operation to hunt down “fugitives who have slipped through the cracks” is time‑critical, demanding, and highly challenging. All localities and departments must prioritize this effort, heighten their sense of urgency, strengthen accountability, and pool their resources to ensure the most effective results.
— Strengthen organizational leadership. The National Anti-Black-and-Evil Campaign Office and the Ministry of Public Security shall fully leverage their coordinating roles, promptly monitor and dispatch progress in fugitive‑capture efforts, and coordinate to resolve major issues. All provincial-level leading groups and their offices for combating organized crime and evil forces must carefully examine the problems and difficulties encountered in their work and provide robust support for fugitive‑capture operations. Case-handling units at all levels must comprehensively implement the “principal‑in‑charge” system and, in accordance with the “account‑based supervision and pursuit” requirements, ensure the timely completion of fugitive‑capture tasks.
— Strengthen collaboration and coordination. With respect to intelligence leads, fugitive suspects’ information is promptly handed over to public security organs for centralized analysis and assessment. In terms of apprehension abroad, relevant departments work closely together to ensure the smooth repatriation and extradition of fugitives located overseas. In investigating cases, efforts are being made to ensure that disciplinary inspection and supervision authorities and public security organs effectively implement measures such as simultaneous case initiation, joint investigations, and information sharing, thereby ensuring thorough and in-depth prosecution.
— Strengthen publicity and mobilization. Vigorously publicize the “Notice on Urging Fugitives Involved in Organized Crime and Evil Forces to Surrender,” jointly issued in September by the Supreme People’s Court, the Supreme People’s Procuratorate, the Ministry of Public Security, and the Ministry of Justice; implement the reward system for reporting; and encourage the public to actively come forward with leads. All provincial-level political and legal agencies should also issue a batch of wanted notices, publicly expose information on fugitives and their overseas hideouts, and widely publicize a number of typical cases, thereby compelling those at large to turn themselves in and dissuading those seeking to flee from harboring any illusions. Relevant authorities in the fugitives’ places of residence and registered domicile should educate and counsel the fugitives’ relatives and friends, explaining applicable laws and policies, and work to increase the rate of voluntary surrender.
— Strengthen supervision and follow-up. Making the pursuit of “loose ends” a key component of the special supervisory missions undertaken by the National Anti-Blackmail Office, we will employ on-site coordination, guidance, and targeted interviews to ensure that all localities complete their assigned tasks on schedule. For priority regions where progress in fugitive apprehension has been slow, we will intensify oversight through measures such as public listing for supervised follow-up; when necessary, dedicated supervisory teams will be dispatched to provide direct oversight. Meanwhile, provincial-level anti‑blackmail offices are also required to step up their supervisory and follow-up efforts, driving new breakthroughs in the nationwide campaign to track down and capture those who have evaded justice.
— Strengthen assessment and reward‑and‑punishment mechanisms. Incorporate the pursuit of “fugitives who have slipped through the cracks” as a key indicator in evaluations of public security initiatives and the campaign to eradicate organized crime and evil forces; commend and reward regions, units, and individuals with outstanding results to further motivate leading performers and boost morale; for those failing to effectively pursue fugitives, issue public notifications and conduct admonitory talks to urge corrective action; and hold accountable, in accordance with disciplinary rules and laws, those who neglect their duties or responsibilities, or who harbor, condone, or act as “protective umbrellas” for criminals.

Ministry of Public Security: Remain unwavering in deepening efforts to eliminate the harmful influence of tainted elements and intensify work to investigate, rectify, and address problems.
On the 26th, State Councilor, Secretary of the CPC Committee of the Ministry of Public Security, Minister, and Head of the National Leading Group for the Education and Rectification of the Public Security Force, Zhao Kezhi, presided over an expanded meeting of the CPC Committee of the Ministry of Public Security and the fifth meeting of the National Leading Group for the Education and Rectification of the Public Security Force. The meeting heard reports from six bureau-level units under the Ministry on their progress in carrying out investigation, correction, and rectification efforts and in eliminating the harmful influence of negative factors, and deliberated and deployed measures to further deepen work in this phase. The meeting emphasized the need to thoroughly study and implement the spirit of General Secretary Xi Jinping’s important speeches, to faithfully carry out the decisions and arrangements of the CPC Central Committee, to strengthen the “four consciousnesses,” officely uphold the “four confidences,” and resolutely safeguard the “two upholds.” It called for unwavering efforts to further eliminate the adverse effects of negative influences, to intensify the push for investigation, correction, and rectification, to continuously ensure that the education and rectification campaign is carried out in depth and with tangible results, and to strive to deliver a satisfactory outcome to the Party and the people.
The meeting noted that, in recent weeks, the Party Committee of the Ministry has convened multiple expanded Party Committee meetings and meetings of the Leading Group for the Education and Rectification Campaign within the national public security forces, along with its office directors’ meetings. It also held a special警示教育 conference for directly affiliated organs and has continuously heard reports from subordinate units on advancing investigation, correction, and the elimination of harmful influences. In accordance with the arrangements made at the Central Political and Legal Affairs Commission meeting and the requirements of Supervision Team No. 1 of the central political and legal organs, the work to eradicate the adverse effects of past misconduct has been steadily deepened, and efforts to push forward investigation and rectification have been vigorously advanced, yielding new, phased achievements. Progress has been made in heart-to-heart talks, self-examination and self-correction, and the verification of leads; the ideological awareness of subordinate units has been further strengthened, the campaign to eliminate harmful influences has been deepened, and problem identification has been carried out more thoroughly—achievements that deserve full recognition. At the same time, it is important to remain clearly aware that, compared with the goals and expectations set by the CPC Central Committee and the aspirations of the people, there are still gaps and imbalances in our work. Therefore, we must advance all tasks in the investigation, correction, and rectification phase with an even clearer stance, officeer resolve, and more robust measures, striving to consolidate political loyalty, remove those who undermine the cause, address persistent problems and chronic maladies, and promote the spirit of model figures.
The meeting emphasized the need to earnestly align thinking and understanding with the spirit of General Secretary Xi Jinping’s important speech. Today, we conducted an in-depth study of the spirit of General Secretary Xi Jinping’s address at the opening ceremony of the training program for mid‑ and young‑level cadres at the Central Party School (National Academy of Administration). This important speech is both a heartfelt exhortation to all Party members and cadres and a clear guide that points the way forward for deepening the education and rectification campaign. We must always uphold Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as our guiding principle, thoroughly study and implement the spirit of General Secretary Xi Jinping’s key speeches and instructions, take the Party’s political development as the overarching principle, integrate learning and education throughout the entire process of the campaign, further strengthen measures for investigation, correction, and rectification, and, beginning now, treat this as a new starting point. While eradicating the harmful influence of Sun Lijun and others, we will focus on conducting a second round of heart-to-heart talks and multiple rounds of self‑examination and self‑correction, with particular attention to identifying individual violations of rules, discipline, and law. In doing so, we will strive to achieve even greater results in the education and rectification of the contingent, ensuring that the vast majority of Party members and cadres within the ministry undergo a profound cleansing and spiritual renewal, a rigorous test and tempering of their political stance, and a comprehensive elevation of their Party consciousness.
The meeting called for further strengthening the self‑inspection and verification of leads related to violations of discipline, regulations, and laws. With the current phase of investigation, rectification, and improvement now entering its critical stage, every Party member and cadre within the ministry must hold themselves accountable. Building on the problems identified in the earlier stages, they should closely align their self‑examination with their own ideological outlook and actual work, rigorously benchmark against Party discipline and rules as well as police discipline and regulations, and conduct a more thorough search for any disciplinary, regulatory, or legal violations they may have committed. They should seize the policy window of opportunity to proactively report their situations to the organization and clearly explain any issues. All Party committees at various units and their principal leaders must fully recognize that the failure to detect problems may itself constitute the greatest problem; they must shoulder their political responsibilities, intensify organizational leadership, and carry out comprehensive, systematic investigations and “political health checks.” Furthermore, they are to establish and improve systems for the statistical recording, management, and circulation of leads, advance the investigation and handling of disciplinary, regulatory, and legal violations, and ensure that these efforts effectively serve as a deterrent and drive corrective action.
The meeting called for further intensification of heart-to-heart talks and self-examination and self-correction efforts. Party committees of all directly affiliated units are to promptly organize and launch a new round of such activities. Through in-depth discussions, they should educate and guide cadres to fully understand the policy of both leniency and strictness, dispel ideological concerns, shed mental burdens, and seize the policy window to proactively report to the organization any issues involving Sun Lijun and others, clearly accounting for any violations of discipline, regulations, or laws on their part. Where necessary, dedicated task forces may be established to conduct focused heart-to-heart talks. A rigorous and conscientious new round of self-examination and self-correction must be carried out, with leaders taking the lead and setting an example from the top down. Cadres and party members should be guided to conduct a thorough review of violations of political discipline and norms, breaches of the spirit of the CPC Central Committee’s Eight-point Decision on Improving Party and Government Conduct, and infractions of the Party’s organizational, integrity, mass‑related, work‑related, and lifestyle disciplines, as well as irregularities, disciplinary violations, and illegal acts in areas such as public security law enforcement, administrative management, and information technology development. The aim is to effectively eliminate the harmful influence of these problems and carry out comprehensive rectification and improvement.
The meeting called for further strengthening oversight and disciplinary enforcement. It is imperative to rigorously investigate and prosecute those who have engaged in serious violations of discipline and the law alongside Sun Lijun and others—individuals involved in quid pro quo arrangements between power and power, power and money, or power and sex, as well as those who have cultivated personal dependencies—ensuring that all wrongdoing is rooted out without leaving any lingering problems, and resolutely preventing “double-faced individuals” and “two-faced factions” from slipping through the cracks. With respect to all personnel implicated in the serious disciplinary and legal violations involving Sun Lijun and others, measures must be tailored to the specific nature, type, and circumstances of each case, and applied in strict accordance with regulations, discipline, and the law. Efforts to investigate and prosecute cases of disciplinary and legal violations must be intensified, maintaining a high-pressure stance, adhering to a zero-tolerance approach, pooling resources and coordinating efforts, and enhancing both the quality and efficiency of investigations. This will effectively bolster the efficacy of policies balancing leniency and severity, stimulate the internal drive for self‑inspection and self‑correction, and strengthen the deterrent effect of organizational investigations. Those who voluntarily come forward during the self‑inspection and self‑correction phase and truthfully disclose their issues shall be given lighter penalties in accordance with regulations, discipline, and the law; whereas those who evade responsibility, obfuscate, refuse to cooperate, or resist organizational investigations shall be subject to strict punishment in line with applicable rules, discipline, and the law.
The meeting called for further strengthening political accountability to ensure that the investigation, rectification, and corrective measures are carried out in earnest and that no safety or stability issues arise. Party committees of all directly affiliated units and their principal officials must reinforce their political commitment, dare to tackle tough problems head-on, tighten the chain of responsibility, and see that all aspects of the investigation, rectification, and corrective work are implemented effectively and yield tangible results. Those found to be going through the motions, engaging in formalism, or producing no real outcomes will be ordered to revisit and make up for deficiencies, with rework required. It is imperative to heighten awareness of potential risks, officely uphold a bottom-line mindset, adhere to a holistic and balanced approach, and conscientiously fulfill duties and responsibilities—advancing the investigation, rectification, and corrective efforts on one hand while ensuring the effective implementation of measures to safeguard security and stability on the other. Only by delivering concrete results that sustain overall social security and stability can we truly assess the effectiveness of this education and rectification campaign, and strive to create a safe and stable political and social environment conducive to the successful convening of the Sixth Plenary Session of the 19th CPC Central Committee.

The National Intellectual Property Administration and the Ministry of Justice have jointly issued the “Opinions on Strengthening Mediation in Intellectual Property Disputes.”
To thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council on comprehensively strengthening intellectual property protection, to improve the diversified dispute-resolution mechanism for IP disputes, to fully leverage the crucial role of mediation in resolving conflicts and disputes in the IP field, to optimize the business environment, and to promote the establishment of a new development paradigm, the National Intellectual Property Administration and the Ministry of Justice recently jointly issued the “Opinions on Strengthening Mediation Work in Intellectual Property Disputes.”
The Opinions state that it is essential to uphold Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guiding principle, thoroughly study and implement Xi Jinping’s Thought on the Rule of Law, fully carry out the spirit of the 19th National Congress of the Communist Party of China and the Second, Third, Fourth, and Fifth Plenary Sessions of the 19th CPC Central Committee, and earnestly implement the decisions and arrangements of the CPC Central Committee and the State Council on strengthening intellectual property protection. Efforts should be made to coordinate and advance mediation of intellectual property disputes so that, by 2025, mediation services will broadly cover key regions and sectors where such disputes are frequent and prevalent; a well‑structured, institutionally sound, standardized, and efficient mediation system will be established; and a comprehensive mediation framework will take shape, featuring complementary strengths, seamless integration, and coordinated collaboration among people’s mediation, administrative mediation, industry‑specific and professional mediation, and judicial mediation. In this way, the foundational role of mediation in the diversified resolution of intellectual property disputes will be fully brought into play, with its influence and public trust further enhanced.
The “Opinions” emphasize the need to advance people’s mediation of intellectual property disputes, and, in line with the requirements for resolving such disputes, to promote the establishment of people’s mediation organizations tailored to local conditions. Administrative mediation of intellectual property disputes should be strengthened: intellectual property administrative departments are required to actively fulfill their administrative mediation functions and, in accordance with provisions such as the “Administrative Mediation Guidelines for Patent Disputes,” conduct administrative mediation strictly in compliance with laws and regulations. Industry‑specific and specialized mediation of intellectual property disputes should be expanded; innovative organizational forms and working models for mediation should be pursued, and commercial mediation of intellectual property disputes should be explored. Mediation efforts in key regions and sectors must be intensified, with vigorous efforts to extend mediation services to priority areas such as industrial parks, development zones, free trade zones, and industrial clusters. E‑commerce platforms should be supported in optimizing systems for online consultation, case acceptance, and mediation, while mediation of intellectual property disputes at trade fairs and exhibitions should be broadened, and mediation in specialized markets should be reinforced. The capacity of the intellectual property dispute mediator workforce must be enhanced, establishing a team that combines full‑time and part‑time mediators, leverages complementary strengths, and maintains a well‑structured composition. A comprehensive system for intellectual property dispute mediation should be put in place, encompassing mechanisms for dispute identification, case acceptance, mediation, enforcement, follow‑up, analysis and assessment, as well as centralized deliberation on major, difficult, or complex disputes, expert consultation, and reporting. Management systems covering job responsibilities, continuing education, regular meetings, training, performance evaluation, and reward‑and‑punishment measures should also be established. An effective coordination and linkage mechanism for intellectual property dispute mediation must be instituted, strengthening connections and collaboration between mediation organizations and administrative law enforcement agencies, judicial organs, arbitration institutions, and other relevant entities. Mechanisms for linking complaints with mediation, court‑mediation coordination, and arbitration‑mediation integration should be systematically developed.
The Opinions call for strengthened organizational coordination: intellectual property administration departments and judicial administrative organs should place the mediation of intellectual property disputes high on their agendas, proactively explore innovative approaches, and advance the standardization and institutionalization of such mediation efforts. They also emphasize the need to bolster operational support by actively seeking the attention and backing of Party committees, governments, and fiscal authorities, ensuring that funding for IP dispute mediation is systematically incorporated into budgetary planning, and promoting its inclusion in the government’s catalog of services eligible for procurement. Furthermore, the Opinions stress the importance of public awareness‑raising and guidance, vigorously highlighting the strengths, distinctive features, and proven results of IP dispute mediation, as well as showcasing exemplary models and best‑practice cases that have emerged from this work. By doing so, they aim to continuously enhance public satisfaction and societal impact, encouraging more parties to resolve IP disputes through mediation.
The Supreme People’s Court has issued guidelines to strengthen and innovate environmental and resource adjudication.
On the morning of October 28, the Supreme People’s Court officially released the “Opinions on Strengthening and Innovating Environmental and Resource Adjudication in the New Era to Provide Judicial Services and Guarantees for Building a Modern Society in Harmony with Nature” (hereinafter referred to as the “Opinions”).
I. Background to the Drafting of the “Opinions”
When ecology thrives, civilization prospers. Since the 18th National Congress of the Communist Party of China, the Party Central Committee with Comrade Xi Jinping at its core has placed ecological progress at the forefront of its overall work, launching a series of fundamental, pioneering, and long-term initiatives. As a result, both the understanding and practice of ecological conservation have undergone historic, transformative, and systemic changes. During the 14th Five-Year Plan period, China’s ecological development has entered a critical phase—centered on carbon reduction as a key strategic priority, promoting synergistic efficiency in pollution control and carbon reduction, advancing a comprehensive green transformation of economic and social development, and achieving a shift from quantitative to qualitative improvements in environmental quality. General Secretary Xi Jinping has profoundly emphasized the need to “coordinate pollution control, ecological protection, and climate change response, continuously improve the ecological environment, and strive to build a modernization characterized by harmonious coexistence between humanity and nature.”
To thoroughly implement Xi Jinping’s Thought on Ecological Civilization and Xi Jinping’s Thought on the Rule of Law, and to support the comprehensive implementation of the 14th Five-Year Plan, the Supreme People’s Court has formulated these Opinions based on meticulous research and thorough deliberation.
II. Main Contents and Features of the “Opinions”
The full text of the “Opinions” is divided into five sections, comprising a total of 20 provisions, and sets forth comprehensive guiding principles and specific requirements for all areas and stages of environmental and resource adjudication by the people’s courts in the new era.
The first part sets forth the guiding principles and overall requirements for strengthening and innovating environmental and resource adjudication in the new era. The Opinions emphasize that environmental and resource adjudication in the new era must thoroughly implement Xi Jinping’s Thought on Ecological Civilization and Xi Jinping’s Thought on the Rule of Law, uphold the Party’s absolute leadership, adhere to a people-centered development philosophy, and earnestly put into practice the principle that “lucid waters and lush mountains are invaluable assets.” It calls for safeguarding the ecological environment with the strictest systems and the most rigorous rule of law. With the overarching goal of building an ecologically sound judicial protection system with Chinese characteristics and international influence, it is essential to enhance judicial capacity, fully implement the green principles and provisions of the Civil Code, promote the deep integration of information technology with environmental justice, and continuously deepen international exchanges in environmental adjudication.
The second part emphasizes effectively addressing the most pressing ecological and environmental issues that directly affect people’s daily lives. The Opinions thoroughly implement the principle of prioritizing the people’s well-being in ecological and environmental matters, closely following General Secretary Xi Jinping’s important instructions on ensuring that the public can tangibly experience improvements in environmental quality. To this end, they set forth requirements in the following three areas: First, to support the sustained and decisive battle against pollution. This involves rigorously enforcing the law to crack down on environmental crimes and violations, appropriately resolving various civil and administrative disputes related to the environment, and adjudicating cases involving environmental impact assessments in accordance with the law, thereby effectively safeguarding the personal and property rights as well as environmental interests of the public. Second, to promote the continuous improvement of urban living environments. This includes legally adjudicating cases concerning the remediation of black and odorous water bodies, advancing risk management and remediation of contaminated construction land, and properly handling disputes related to urban renewal, waste sorting, and ecological landscape development. Third, to support the development of ecologically sound and livable rural areas. This entails strictly prosecuting illegal occupation and pollution of farmland, and legally hearing cases involving the prevention and control of agricultural non-point source pollution. It also calls for strengthening judicial protection of traditional dwellings, ancient villages, and historic buildings, thus helping to create beautiful countryside where people can “see the mountains, see the water, and cherish their nostalgia.”
Part Three emphasizes advancing the building of a community of life between humanity and nature. The Opinions thoroughly implement the holistic, systems‑based approach to ecological and environmental protection, closely following General Secretary Xi Jinping’s important instructions on enhancing the quality and stability of ecosystems, and set forth the following six requirements. First, strengthen comprehensive ecosystem protection. Strictly enforce the law to crack down on all types of ecological crimes and violations; properly resolve disputes arising from fallow‑rotation practices, the conversion of farmland back to forests and wetlands, and the construction of marine engineering projects; and safeguard the ecological environments of mountains, forests, rivers, lakes, grasslands, wetlands, deserts, and oceans. Second, effectively protect biodiversity. Adjudicate, in accordance with the law, cases involving judicial protection of genetic, species, and ecosystem diversity, and conserve the habitats of precious and endangered wild flora and fauna. Third, support the sustained success of the ten‑year fishing ban in the Yangtze River. In strict compliance with the scope of the mainstream and major tributaries delineated by the Yangtze River Protection Law, reinforce judicial safeguards for the implementation of the fishing ban; rigorously prosecute all fisheries‑related crimes and violations; and appropriately address disputes arising from the relocation, resettlement, and occupational transition of fishermen. Fourth, promote continuous improvement of the ecological environment in the Yellow River Basin. Protect, in accordance with the law, key ecosystems such as the headwaters of the Yellow River, its mainstream and major tributaries, and the mid‑ and downstream delta wetlands; and advance the coordinated enhancement of pollution control and soil and water conservation. Fifth, ensure the sound development of the natural protected areas system. Severely punish, in accordance with the law, all offenses that damage the ecological environments of natural protected areas; and establish mechanisms for phasing out resource exploitation and development activities that are inconsistent with regional functions. Support the construction of the Great Wall, Grand Canal, Long March, and Yellow River National Cultural Parks, and coordinate the integrated protection of natural and cultural heritage as well as folk traditions. Sixth, fortify the judicial barrier for ecological security. Adjudicate, in accordance with the law, cases related to the restoration and protection of national key ecological function zones; intensify judicial protection of ecologically highly vulnerable areas; and uphold the national ecological security framework.
Part Four emphasizes supporting the green and low‑carbon transformation of the economy and society. The Opinions thoroughly implement the concept of green development, closely following General Secretary Xi Jinping’s instructions to comprehensively improve resource efficiency and promote the clean, low‑carbon, safe, and efficient use of energy, and set forth requirements in the following four areas. First, enhance judicial protection of natural resource property rights. Adjudicate all types of natural resource ownership cases in accordance with the law, coordinate ecological and environmental protection with the intensive, economical, and sustainable development and utilization of resources, and support the establishment of a unified natural resource trading market. Second, strengthen judicial protection of water resources. Severely crack down, in accordance with the law, on illegal and criminal acts that damage the water environment and aquatic ecosystems; reinforce judicial oversight over water‑withdrawal permit approvals; and properly resolve disputes arising from water‑rights transactions. Actively integrate judicial protection of water resources into major regional strategies. Third, contribute to achieving the carbon peak and carbon neutrality goals. Accurately determine the legal nature of carbon‑related rights, such as carbon emission rights, carbon sinks, and carbon derivatives, adjudicate related cases in accordance with the law, and help build a clean, low‑carbon, safe, and efficient energy system. Intensify the adjudication of cases involving energy‑structure adjustments in key regions, and rigorously implement coordinated pollution reduction and carbon‑reduction governance. Fourth, support the green optimization and upgrading of the industrial structure. Support and supervise administrative authorities in exercising lawful regulation over high‑energy‑consumption and high‑emission enterprises; adjudicate, in accordance with the law, cases involving corporate restructuring, consolidation, and bankruptcy, and improve exit mechanisms. Strengthen judicial protection of intellectual property rights related to green innovation, and support the development of financial instruments such as green credit, green bonds, and green insurance, thereby advancing green development.
Part Five emphasizes the need to improve and refine the environmental and resource adjudication system. The Opinions thoroughly implement the principle of the strictest rule of law, study and apply the spirit of General Secretary Xi Jinping’s congratulatory letter to the World Environmental Justice Conference, and, with a focus on the intrinsic development of environmental and resource adjudication in the new era, set forth the following four requirements. First, ensure uniform application of laws in environmental and resource adjudication. Adhering to the principles of legality in criminal law and proportionality between crime, culpability, and punishment, we will implement a criminal policy that balances leniency and severity. We will refine the unified legal framework for adjudicating cases involving natural resources, establish a typified liability regime for ecological and environmental damage, and improve both procedural and substantive rules. Second, strengthen the development of specialized institutional mechanisms. We will enhance the establishment of environmental and resource courts and further improve the “three-in-one” adjudication model for criminal, civil, and administrative environmental and resource cases. We will reinforce cross‑departmental collaborative governance, refine judicial cooperation mechanisms, and build a national information platform for environmental and resource adjudication. In addition, we will institute a system whereby people’s jurors with specialized expertise participate in the adjudication of environmental and resource cases. Third, deepen international exchanges in environmental justice. Working hand in hand with other countries, we will strengthen judicial responses to global environmental crises. Together, we will create diversified platforms for sharing environmental justice cases and judicial experience, establish regular mechanisms for international exchanges and mutual visits in environmental justice, and promote mutual learning and knowledge sharing. Fourth, forge a high‑caliber adjudicatory team. We will always place the Party’s political development first, strive to enhance the team’s political insight, political judgment, and political execution, strengthen discipline and work style, uphold the bottom line of integrity and incorruptibility, and endeavor to build a professional environmental and resource adjudication team that is trusted, reliable, and reassuring to both the Party and the people.
General Secretary Xi Jinping has pointed out incisively: “The new stage of development places even higher demands on ecological civilization, and we must make vigorous efforts to promote green development and strive to lead global development trends.” Going forward, the Supreme People’s Court will guide people’s courts at all levels nationwide to thoroughly implement Xi Jinping Thought on Ecological Civilization and Xi Jinping Thought on the Rule of Law, continuously enhance the capacity and quality of environmental justice, further deepen reform and innovation in environmental judicial work, and vigorously advance international judicial cooperation, thereby providing stronger judicial services and safeguards for building a modern society characterized by harmonious coexistence between humanity and nature.

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