JC Master Legal News Issue 995

Key Takeaways for This Issue
The Shanghai Stock Exchange has issued guidelines on deductions from operating revenue, aiming to precisely target shell companies.
The Shanghai Stock Exchange has issued the “Shanghai Stock Exchange Self-Regulatory Guidance No. 2 for Listed Companies—Financial‑Related Delisting Criteria: Deduction of Operating Revenue” and the “STAR Market Information Disclosure Business Guidance No. 9—Financial‑Related Delisting Criteria: Deduction of Operating Revenue,” which shall take effect from the date of their publication.

The central bank stated that risks in the real estate market remain generally under control, and the sector’s healthy development trend remains unchanged.
　Since the beginning of this year, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China’s economy has continued to recover and develop, with major macroeconomic indicators remaining within an appropriate range. The economy has maintained a solid growth momentum, and its resilience has continued to emerge. In the third quarter of 2021, gross domestic product (GDP) grew by 4.9% year on year, with an average two-year growth rate of 4.9%; in the first three quarters, the consumer price index (CPI) rose by 0.6% year on year, the employment situation remained generally stable, and import‑export trade sustained relatively rapid growth.
The new tax-cut policy is giving businesses a much-needed boost.
　Since the beginning of this year, a series of preferential policies on the additional deduction of enterprise R&D expenses have been introduced, enabling companies to reap policy benefits earlier and to a greater extent, with effects exceeding expectations. The continuous release of tax incentives has not only boosted scientific and technological innovation but has also provided strong support for the stable operation of the industrial economy.
Multiple departments have issued the Work Standards for Training “Legally Knowledgeable Individuals” in Rural Areas.

Recently, the Publicity Department of the CPC Central Committee, the Ministry of Justice, the Ministry of Civil Affairs, the Ministry of Agriculture and Rural Affairs, the National Administration for Rural Revitalization, and the National Legal Education Office jointly issued the “Work Standards for Cultivating ‘Legally Knowledgeable Individuals’ in Rural Areas (Trial)” (hereinafter referred to as the “Work Standards”), which sets out regulations on the cultivation of such individuals, covering aspects including guiding principles, training objectives, basic qualifications, principal duties, selection and training, utilization and management, and measures to ensure effective implementation.

Finance & Capital Markets

The China Securities Regulatory Commission is soliciting public comments on the “Guidelines for Due Diligence by Sponsor Institutions.”
To implement the provisions of the Securities Law, the Measures for the Administration of Sponsorship Business in Securities Issuance and Listing, and other relevant regulations; to meet the needs of the reform and development of the registration-based system; and to uphold the spirit and principles set forth in the Guiding Opinions on Urging Securities Offices to Fulfill Their Duties and Responsibilities in Investment Banking under the Registration-Based System, the Commission intends to revise the Guidelines for Due Diligence by Sponsors (CSRC Issuance Document No. 15 [2006]) in order to further standardize and guide sponsors’ due diligence efforts with respect to domestic companies planning to issue shares, convertible bonds, or depositary receipts, thereby enhancing the quality of sponsors’ due diligence and information disclosure. Public comments are now being solicited.
The draft for public comment comprises eleven chapters and eighty-seven articles, with the following key revisions: First, it better implements the registration‑based system’s principle of information disclosure at its core and ensures that the fundamental requirements of the registration system are fully applied in due‑diligence work. Second, it supplements certain due‑diligence matters that were not addressed in the original “Guidelines on Due Diligence by Sponsor Institutions.” Third, it elevates the sponsor’s role as a “referee” to a more prominent position, thereby giving full play to its forward‑looking function in assessing investment value. Fourth, it clarifies that sponsors may reasonably rely on the professional opinions issued by other securities service institutions, provided they have assessed such opinions as being adequate and reliable; however, sponsors must conduct further verification and validation. At the same time, it explicitly stipulates that sponsors shall make appropriate use of third‑party external offices and may not outsource their statutory duties; moreover, the responsibilities that sponsors are required to assume under the law shall not be reduced or exempted by engaging third parties.
We welcome valuable feedback from all sectors of society. The China Securities Regulatory Commission will carefully review the public comments received, further revise and refine the measures, and issue them for implementation as soon as possible.

The Shanghai Stock Exchange has issued guidelines on deductions from operating revenue, aiming to precisely target shell companies.
The Shanghai Stock Exchange has issued the “Shanghai Stock Exchange Self-Regulatory Guidance No. 2 for Listed Companies—Financial Delisting Criteria: Deduction of Operating Revenue” and the “STAR Market Information Disclosure Business Guidance No. 9—Financial Delisting Criteria: Deduction of Operating Revenue,” which shall take effect from the date of their publication.
The Guidelines aim to clarify the specific items to be deducted from operating revenue under the financial‑based delisting criteria, enhance the enforceability of these criteria, and ensure the thorough and meticulous implementation of the new delisting rules.
First, adhering to the principle of goal‑oriented regulation, we have targeted shell companies with precision. During the development of the Guidelines, the SSE conducted a thorough review of shell companies lacking going‑concern viability and identified the common practices they employ to inflate operating revenue in order to maintain their listing status. Guided by clear objectives, we formulated corresponding deduction criteria tailored to these circumstances, aiming to effectively crack down on shell companies and ensure that all cases warranting delisting are duly delisted.
Second, the approach of “definition plus enumeration” is adopted to clearly delineate items to be deducted from operating revenue. Given that such deductions share a similar nature with non-recurring gains and losses, this “definition plus enumeration” method better captures the characteristics and specific content of these deductions. Accordingly, the Guidelines, after defining “business income unrelated to the principal operations and income lacking commercial substance,” proceed to list specific deductible items.
Third, the requirements for audit offices’ verification have been strengthened to ensure that intermediary institutions assume full and rigorous responsibility. Audit offices play a crucial role in financial‑related delisting oversight; the Guidelines clearly set out their verification obligations, urging them to serve as reliable gatekeepers and provide investors with information that is truthful, accurate, and complete.
Under the new delisting rules, following the disclosure of the 2021 annual report, a listed company that, for the first time, triggers the financial delisting criterion—namely, reporting a negative net profit, whichever is lower, before or after deducting non-recurring items, and having operating revenue below RMB 100 million—will be subject to a delisting risk alert (*ST). Companies already under a delisting risk alert—i.e., *ST companies—will face direct delisting in 2021 if they continue to meet the delisting criteria. Investors should pay close attention to any annual performance forecasts, revised performance forecast announcements, preliminary performance reports, corrected preliminary performance reports, risk warnings, and other relevant disclosures issued by the affected listed companies, make investment decisions with due caution, and effectively guard against investment risks.
Financial institutions should increase financial credit support for manufacturing enterprises to ensure their reasonable funding needs are met.
The 2021 World Manufacturing Conference opened in Hefei, Anhui Province, on November 19. Liu He, a member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, delivered a written address.
Liu He stated that General Secretary Xi Jinping attaches great importance to the development of the manufacturing sector, emphasizing that manufacturing is the foundation for establishing a nation and the cornerstone of national strength, and calling for accelerated progress in digitalization, networking, and intelligentization. It is imperative to deeply study and thoroughly implement these directives.
Liu He pointed out that manufacturing is the “ballast” of a major economy and plays a crucial role in driving economic growth and improving employment quality. China is undergoing a profound transformation of its economic development model, and the foundation for high-quality development lies in a higher‑level, more competitive manufacturing sector. It is imperative to continuously strengthen industrial competitiveness, boost labor productivity, and maintain an appropriate balance between manufacturing and producer services. All localities and departments must take concrete measures to address the pressing challenges currently facing manufacturing enterprises. Financial institutions should increase financial and credit support for manufacturing offices to ensure that their legitimate funding needs are met.
Liu He emphasized that innovation is the key to high-quality development in the manufacturing sector. It is essential to strengthen the role of enterprises as the main drivers of innovation, foster a conducive environment for corporate R&D, explore a new model in which “enterprises pose the problems and research institutions provide the solutions,” optimize the national laboratory system, make full use of various national innovation platforms, and guide and support enterprises in focusing on their core businesses and daring to innovate, thereby continuously enhancing their core competitiveness. Openness and cooperation are indispensable prerequisites for innovation-driven development. All countries should join hands to ensure the smooth functioning of supply chains and innovation networks. The Chinese government will remain committed to advancing high-standard opening-up, treat domestic and foreign enterprises equally, and welcome entrepreneurs from around the world to share in the opportunities presented by China’s vast market.

Shenzhen Securities Regulatory Bureau: Beware of the Risks of “Illegal Stock Recommendations”
On November 19, the Shenzhen Securities Regulatory Bureau issued a notice stating that it has recently received numerous reports of illegal actors using social media apps, online live streams, stock forums, and other internet platforms to engage in “illegal stock recommendation” activities. Investors are advised to choose licensed securities and futures offices to obtain legitimate investment advisory services, remain highly vigilant about all forms of “stock recommendation” schemes, and steer clear of such illegal practices to avoid financial losses.
The Shenzhen Securities Regulatory Bureau stated that the aforementioned illegal activities exhibit the following characteristics:
First, they lure clients with exaggerated marketing. Criminals use channels such as telephone calls, live-streaming rooms, WeChat groups, official WeChat accounts, QQ, Weibo, stock‑discussion forums, online forums, and websites, employing hyperbolic promotional language like “one‑on‑one expert stock analysis” or “no fees unless there are profits,” or touting past “stellar” trading performance, to recruit members and customers.
Second, they devise spurious pretexts to charge fees. After investors join WeChat groups, QQ groups, or online live‑streaming rooms, unscrupulous actors pose as “teachers,” “experts,” or “stock gods,” claiming to share stock‑trading experience and teach trading techniques. They illegally recommend stocks to investors in order to pocket “tips” or “training fees,” or to profit by taking a share of the investors’ gains. Some also start by offering free stock recommendations, then use this as an excuse to invite investors into “internal VIP groups” or “VIP live‑streaming rooms,” touting more sophisticated “teachers” who provide premium services, and charging exorbitant service fees under various pretenses.
Third, criminal activities are concealed under the guise of “stock recommendations.” Some unlawful actors use “stock recommendations” as a pretext while engaging in other illegal and criminal schemes. For example, in so‑called “pig‑butchering” scams in the stock market, they exploit WeChat groups, QQ groups, online live‑streaming rooms, and other platforms to issue real‑time trading signals, directing investors to buy or sell stocks simultaneously. They then engage in “hype‑driven” stock recommendations to facilitate large‑scale sell‑offs, luring investors into taking over at inflated prices. When the stock price plunges sharply on the same day, investors suffer heavy losses, raising suspicions of fraud, manipulation of the securities market, and illegal stock recommendation (illegal business operations), among other unlawful acts.

Commercial & Corporate
The central bank stated that risks in the real estate market remain generally under control, and the sector’s healthy development trend remains unchanged.
Since the beginning of this year, under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, China’s economy has continued to recover and develop, with major macroeconomic indicators remaining within an appropriate range. The economy has maintained a solid growth momentum, and its resilience has continued to emerge. In the third quarter of 2021, gross domestic product (GDP) grew by 4.9% year on year, with an average two-year growth rate of 4.9%; in the first three quarters, the consumer price index (CPI) rose by 0.6% year on year, the employment situation remained generally stable, and import‑export trade sustained relatively rapid growth.
The People’s Bank of China, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, has resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council. With stability as the top priority, it has pursued a prudent monetary policy that is flexible, precise, appropriate, and well‑calibrated; strengthened cross‑cycle policy design; maintained policy consistency; enhanced forward‑lookingness and effectiveness; and exercised sound management of market expectations. In doing so, it has striven to serve the real economy, effectively contain financial risks, and foster a conducive monetary and financial environment for high‑quality economic development.
First, maintain reasonably ample liquidity. On July 15, the reserve requirement ratio was cut by 0.5 percentage points, releasing approximately RMB 1 trillion in long-term funds. By comprehensively employing a range of monetary policy tools—including RRR cuts, relending, rediscounting, medium-term lending facilities, and open market operations—we have met financial institutions’ legitimate liquidity needs and guided money market rates to remain stable around the levels set by open market operations. We have also advanced reforms to the standing lending facility framework, enhancing the stability of liquidity in the banking system. Second, leverage the guiding and catalytic role of structural monetary policy tools. An additional RMB 300 billion in small‑and‑micro enterprise reloans has been introduced to bolster support for these businesses, while extending the implementation of two direct‑to‑the‑real‑economy monetary policy tools. Complementary measures have been taken to promote balanced regional development and strengthen policy support for areas such as technological innovation, small and micro enterprises, green development, and manufacturing. Third, continue to unlock the benefits of the Loan Prime Rate (LPR) reform. Further enhance the LPR’s guiding function, ensure steady yet moderate reductions in actual loan rates, refine deposit‑rate regulation to lower banks’ funding costs, and consistently require all lending institutions to clearly disclose annualized loan rates. Fourth, prioritize domestic considerations while striking an appropriate balance between internal and external equilibrium. Deepen exchange‑rate marketization reforms, maintain the renminbi’s exchange‑rate flexibility, strengthen expectations management, and harness the exchange rate as an automatic stabilizer for macroeconomic conditions and the balance of payments. Fifth, adhere to market‑based and law‑based principles, coordinate development with security, effectively contain financial risks, and officely safeguard against systemic financial risks.
Overall, China has remained committed to a prudent monetary policy, carefully calibrating its intensity and pace. By comprehensively assessing marginal changes in both domestic and global economic and financial conditions, as well as potential monetary policy adjustments in major economies, the country has proactively implemented forward-looking measures. As a result, financial support for the real economy has remained robust, and financial markets have operated steadily. At the end of September, broad money (M2) grew 8.3% year on year, while the outstanding balance of total social financing increased 10% year on year. The credit structure continued to improve, with year-on-year growth rates for inclusive small and micro enterprise loans and medium- and long-term manufacturing loans reaching 27.4% and 37.8%, respectively, as of the end of September. In September, the weighted average interest rate on corporate loans stood at 4.59%, and that on inclusive small and micro enterprise loans at 4.89%, down 0.02 and 0.19 percentage points, respectively, from December of the previous year. Money market rates remained stable; from January to September, the seven-day repo weighted average rate (DR007) among deposit‑taking institutions in the interbank market averaged 2.18%, just 2 basis points above the People’s Bank of China’s seven-day open market operation rate. The renminbi exchange rate has exhibited two-way fluctuations, remaining broadly stable at an appropriate and balanced level. At the end of September, the central parity rate of the renminbi against the U.S. dollar was 6.4854 yuan per dollar, up 0.6% from the end of last year. Over the first three quarters, the annualized volatility of the renminbi–U.S. dollar exchange rate was 3.2%.
China is a super-large economy with strong resilience. The fundamental trend of long-term economic improvement remains unchanged, and the country’s substantial development potential, ample policy flexibility, and robust vitality of market entities are all clearly evident. At the same time, we must recognize that the confluence of unprecedented global changes in a century and the ongoing COVID‑19 pandemic has made the external environment increasingly complex and challenging. Domestically, economic recovery and growth face constraints stemming from temporary, structural, and cyclical factors. We must remain confident and focus on doing our own work well. In the next phase, the People’s Bank of China will be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implement the spirit of the Fifth and Sixth Plenary Sessions of the 19th CPC Central Committee and the Central Economic Work Conference, and fulfill the requirements set forth in the Government Work Report. In accordance with the decisions and arrangements of the CPC Central Committee and the State Council, we will adhere to the overarching principle of seeking progress while maintaining stability, fully, accurately, and comprehensively apply the new development philosophy, deepen supply-side structural reform, accelerate the establishment of a new development paradigm, build a modern central banking system, improve the modern monetary policy framework, and promote high-quality development. We will strengthen analysis and assessment of marginal shifts in both domestic and international economic conditions, coordinate macroeconomic policies across this year and next, continue to place serving the real economy at the forefront, maintain the stability of monetary policy, anchor market expectations, and strive to keep economic performance within an appropriate range.
A prudent monetary policy should be flexible, precise, appropriate, and well‑calibrated, with a focus on self‑reliance and prioritizing stability. It must strike the right balance in terms of policy intensity and pacing, properly manage the relationship between economic growth and risk prevention, and ensure effective cross‑cycle adjustments, thereby safeguarding overall economic stability and enhancing resilience. We will refine the mechanisms for regulating the money supply, maintain reasonably ample liquidity, bolster the stability of aggregate credit growth, ensure that the growth rates of the money supply and total social financing remain broadly aligned with nominal economic growth, and keep the macro leverage ratio broadly stable. We will closely monitor and assess price trends, stabilize public expectations, and keep overall price levels broadly steady. We will make full use of structural monetary policy tools: deploy the newly added RMB 300 billion in re‑lending facilities to support small and micro enterprises; extend the implementation of the two direct‑to‑the‑real‑economy monetary policy tools; utilize the RMB 200 billion in re‑lending to promote balanced regional development; effectively implement carbon‑reduction support tools; establish a special RMB 200 billion re‑lending program to support the clean and efficient use of coal; and guide financial institutions to continue stepping up support for key areas and weak links, such as small, medium, and micro enterprises and green development. We will improve the market‑based mechanism for forming and transmitting interest rates, further unlock the benefits of the Loan Market Quote Rate reform, optimize deposit‑rate regulation, and work to ensure that the overall financing costs for small and micro enterprises remain stable and decline. We will deepen exchange‑rate market‑based reforms, enhance the flexibility of the renminbi exchange rate, strengthen expectation management, refine macroprudential oversight of cross‑border financing, and encourage enterprises and financial institutions to adhere to a “risk‑neutral” approach, keeping the renminbi exchange rate broadly stable at an appropriate and balanced level. Upholding a bottom‑line mindset and a systems‑thinking approach, and guided by market‑oriented and law‑based principles, we will coordinate efforts to prevent and defuse major financial risks. We will promote a steady economic recovery and strive to achieve this year’s key economic development targets and tasks.
National Development and Reform Commission: Measures to ensure coal supply and stabilize prices have yielded significant results, with thermal coal futures prices down by as much as 60%.
In response to the sharp rise in coal prices earlier this year, the National Development and Reform Commission recently stated that a series of measures to ensure supply and stabilize prices have already yielded immediate results.
On the supply‑guarantee front, relevant authorities have vigorously boosted coal production and supply, accelerating the release of high‑quality capacity at coal mines. National coal output and market supply have continued to rise, with daily dispatched production consistently exceeding 12 million tonnes—reaching new record highs. Coal inventories at power plants and ports are also building up rapidly, with daily coal deliveries to power plants now surpassing consumption by more than 2 million tonnes. As of November 14, power‑plant coal stocks stood at 129 million tonnes, and by the end of November they are expected to exceed 140 million tonnes.
While boosting production and ensuring supply, efforts to stabilize prices have included promptly studying price‑intervention measures, conducting surveys of coal‑enterprise production costs, standardizing the conduct of market participants, strengthening expectations management, and refining the coal‑price formation mechanism to bring coal prices back into a reasonable range. Zhu Xiaohai, Deputy Director of the Price Monitoring and Regulation Division of the Price Department of the National Development and Reform Commission, stated that recently, prices for coal and other energy sources have fallen sharply: thermal‑coal futures have dropped from around RMB 2,000 per ton in mid‑October to approximately RMB 800 per ton today, a decline of as much as 60%, while prices for some industrial raw materials have also declined noticeably.

The Pharmaceutical High-tech Zone has been ranked among the top 20 national biopharmaceutical industrial parks.
Recently, the China National Center for Biotechnology Development released the “China Biopharmaceutical Industrial Park Competitiveness Evaluation and Analysis Report,” officially unveiling the list of the Top 50 National Biopharmaceutical Industrial Parks in terms of overall competitiveness for 2020. A total of 13 parks from Jiangsu Province made the cut, with the Taizhou Pharmaceutical High-tech Zone ranking among the top 20.
As the nation’s first national-level pharmaceutical high-tech zone, Taizhou Pharmaceutical High-Tech Zone is committed to building China’s largest and most fully integrated pharmaceutical industry base. Currently, the park has attracted more than 1,200 pharmaceutical and healthcare enterprises, including 14 renowned multinational corporations such as AstraZeneca, Nestlé, and Boehringer Ingelheim. Over 2,100 cutting-edge pharmaceutical innovations—recognized as “world‑class” or “nationally leading”—have been filed for approval, and more than 4,300 high‑caliber professionals from both home and abroad have settled in the zone to pursue innovation and entrepreneurship. The park has steadily developed robust industrial clusters, with its vaccine sector boasting the highest concentration of related businesses among all national parks. To date, it has recruited 11 academicians from the Chinese Academy of Sciences and the Chinese Academy of Engineering, 60 nationally recognized top‑tier experts, and 134 provincial “double‑creation” talents, placing it among the leading ranks of biopharmaceutical parks nationwide in terms of high‑level talent density.
At present and in the period ahead, the district will remain officely committed to the strategic goal of becoming “China’s premier and world‑renowned” hub, proactively seizing the historic opportunity presented by the city‑wide effort to build China Pharmaceutical City. Grounded in the core area’s strategic positioning, it will resolutely assume its primary responsibility as the leading sector and strive to establish a nationally leading pharmaceutical landmark industry.
It is understood that the “Top 50 National Biopharmaceutical Industrial Parks in Terms of Comprehensive Competitiveness (2020)” list evaluates, in a scientific and systematic manner, the development quality of China’s biopharmaceutical industrial parks, focusing on indicators such as environmental competitiveness, industrial competitiveness, technological competitiveness, talent competitiveness, and collaborative competitiveness.

The financial sector is “adding value” to support carbon reduction, with a dual-pillar framework underpinning the green and low-carbon transition.

Following the launch of the carbon‑reduction support facility, a 200-billion-yuan special reloan to promote the clean and efficient use of coal is also set to take effect. At a recent State Council executive meeting, it was decided that, building on the previously established carbon‑reduction financial support tool, an additional 200-billion-yuan special reloan would be introduced to bolster the clean and efficient utilization of coal. Experts believe that this new special reloan will synergize with the earlier carbon‑reduction support mechanism, providing incremental, low‑cost financing to help enterprises transition to green and low‑carbon operations, thereby supporting China’s goals of peaking carbon emissions and achieving carbon neutrality.
“Dual Pillars” Support the Green and Low-Carbon Transition
“The special re-lending facility for supporting the clean and efficient use of coal is a targeted structural monetary policy tool designed to promote green development,” said Dong Ximiao, chief researcher at China Zhongrui Financial. He added that, through this facility, the People’s Bank of China provides low-cost funding on a targeted basis to nationwide financial institutions that meet certain criteria, thereby encouraging these institutions to extend credit at preferential interest rates to key enterprises and priority projects in the field of clean and efficient coal utilization.
It is reported that the special-purpose relending facility will, in line with the principles of focusing on key areas, enhancing operational feasibility, and adhering to market‑oriented practices, provide targeted support for safe, efficient, green, and intelligent coal mining; clean and efficient coal processing; clean and efficient utilization of coal‑fired power; industrial clean combustion and clean heat supply; clean residential heating; comprehensive utilization of coal resources; and the vigorous promotion of coalbed methane exploration and development.
Specifically, national banks will independently extend preferential loans to eligible projects within the supported scope, with interest rates broadly aligned with the market quotation rates for loans of comparable tenor and tier. The People’s Bank of China may provide re-lending support in an amount equal to the principal of such loans.
On November 8, the People’s Bank of China launched a carbon‑reduction support facility to encourage financial institutions, on the basis of independent decision‑making and assuming their own risks, to extend carbon‑reduction loans to enterprises across various sectors in key areas of carbon reduction.
“The special-purpose relending facility launched this time, together with the carbon‑reduction support tool that was rolled out earlier, can be seen as the central bank’s ‘dual‑pillar’ approach to advancing green and low‑carbon development,” says Zhong Linnan, a senior macro analyst at GF Securities. He notes that the special‑purpose relending facility focuses on improving the efficiency of conventional energy use and serves as a medium‑to‑short‑term instrument for promoting green development in an economic context where reliance on coal and other traditional energy sources remains relatively high, while the carbon‑reduction support tool is geared toward developing new energy sources and achieving decarbonization of the energy sector, constituting a long‑term mechanism for advancing green development.
Both volume and price are boosting the supply of funds.
Data released by the National Energy Administration on November 5 show that fossil fuel combustion currently accounts for approximately 84% of China’s total carbon emissions.
Zhou Maohua, an analyst at the Financial Markets Department of China Everbright Bank, stated that China is the world’s largest producer and consumer of coal, with a energy mix heavily reliant on coal, making its decarbonization efforts both substantial and challenging. Providing low-cost funding to the coal sector through targeted re-lending mechanisms can help accelerate technological upgrades and the adoption of innovative technologies across the coal industry’s upstream and downstream value chains—without compromising energy security—thereby enhancing supply-chain efficiency and promoting the clean utilization of coal resources.
This newly launched special re-lending program to support the clean and efficient use of coal will provide financial institutions with stable, low-cost funding on both the quantity and pricing fronts.
Dong Ximiao stated that, in terms of “quantity,” the RMB 200 billion relending facility will bolster financial institutions’ stable funding sources; in terms of “price,” the targeted relending program will provide them with stable, low-cost funds, thereby enhancing their willingness and capacity to support the clean and efficient use of coal and advance green development.
“Achieving carbon neutrality and green development requires substantial, long-term investment; therefore, green finance should be vigorously developed,” says Dong Ximiao. He argues that financial institutions should seize the opportunity presented by the launch of two monetary policy tools to build and refine a green finance framework, grounded in the real economy and the needs of enterprises. By optimizing the allocation of financial resources, they can guide and incentivize local governments and relevant businesses to strike an appropriate balance between short-term and long-term priorities, thereby fostering a green development system composed of green products, green projects, green industrial parks, green supply chains, and green enterprises, and capitalizing on market opportunities in the pursuit of sustainable growth.
The prudent stance of monetary policy remains unchanged.
“The central bank’s prudent monetary policy stance remains unchanged,” Zhou Maohua said. He noted that the central bank prioritizes the precision and effectiveness of its support measures while guarding against the risks of across-the-board or excessive easing. Even after introducing two major support tools, the prudent tone has yet to shift.
On October 15, Sun Guofeng, Director-General of the Monetary Policy Department of the People’s Bank of China, emphasized when discussing the carbon‑reduction support tool that its support for key areas of carbon reduction is “additive,” aimed at boosting investment and development in priority sectors such as clean energy to enhance overall energy supply capacity—rather than “subtractive.” Financial institutions are still required to provide reasonable credit support to coal‑fired power, coal enterprises, and related projects in accordance with market‑based, rule‑of‑law, and commercial principles, and must refrain from arbitrarily curtailing or cutting off loans.
Regarding the newly launched special-purpose relending facility, industry insiders believe that by deploying innovative and direct‑targeted tools, the central bank is channeling financial resources toward the green economy, thereby accelerating the economy’s low‑carbon and green transition—rather than resorting to broad‑based stimulus.
Zhong Linnan believes that, similar to the carbon‑reduction support tool, the special re‑lending facility aimed at supporting the clean and efficient use of coal will have only a limited impact on the financial sector, including liquidity. On the one hand, the central bank’s current monetary policy framework places greater emphasis on price‑based regulation and closely monitors changes in interest rates. On the other hand, in terms of overall scale, the newly added 200 billion yuan in special re‑loans accounts for only about 1% of the total new loans extended in 2020, thus exerting a limited influence on aggregate credit conditions.

Taxation TAXATATION
The new tax-cut policy is giving businesses a much-needed boost.
According to data recently released by the State Taxation Administration, as of the end of October, enterprises nationwide had already benefited from additional tax deductions totaling RMB 1.3 trillion, with tax reductions and exemptions amounting to RMB 333.3 billion—representing 77.6% of last year’s total for annual final tax settlement and clearance.
Since the beginning of this year, a series of preferential policies on the additional deduction of enterprise R&D expenses have been introduced, enabling companies to reap policy benefits earlier and to a greater extent, with effects that have exceeded expectations. The continuous release of tax incentives has not only boosted scientific and technological innovation but has also provided strong support for the stable operation of the industrial economy.
Stimulate corporate innovation vitality
In September this year, the tax authorities issued a new policy clarifying that, during the October 2021 tax filing period, in addition to allowing enterprises to claim the enhanced R&D expense deduction for the first half of the year in advance, an additional quarter of benefits will be granted—meaning that, starting in October, companies can also claim the enhanced R&D expense deduction for the first three quarters.
The new policy has revitalized corporate cash flow, effectively easing financial pressures. Wang Xiaoxue, Tax Director at Beijing Xiaomi Mobile Software Co., Ltd., stated that by taking advantage of the advance deduction for R&D expenses, companies can allocate more funds to research and development, thereby enhancing their independent innovation capabilities.
“This policy delivers dual benefits to the manufacturing sector, helping to bolster its growth momentum,” said Liu Baozhu, First‑Level Inspector with the Income Tax Department of the State Taxation Administration. Manufacturing offices can not only take advantage of the enhanced R&D expense super‑deduction ahead of schedule, but the super‑deduction rate has also been raised from 75% to 100%. These twin incentives have benefited 186,000 manufacturing enterprises, with total super‑deduction amounts reaching RMB 903.6 billion and tax reductions totaling RMB 225.9 billion—accounting for 57.7% and 67.8%, respectively, of all eligible taxpayers and the overall tax relief. Notably, the increased super‑deduction rate alone has generated an additional RMB 57.1 billion in tax savings for manufacturing offices, clearly underscoring the policy’s strong orientation toward supporting the sector’s development.
Jiang Zhen, an associate researcher at the Institute of Financial Strategy of the Chinese Academy of Social Sciences, believes that the policy of allowing an additional deduction for R&D expenses aligns with the inherent patterns of scientific and technological innovation, capturing the intrinsic link between tax policy and high-quality development, thereby enhancing the policy’s effectiveness and sustainability.
“Increased policy support is helping to unleash innovation,” said Liu Baozhu. In terms of the amount of additional R&D expense deductions, 82.1% of eligible enterprises received deductions exceeding RMB 1 million; on an average‑per‑enterprise basis, these offices invested RMB 4.565 million in R&D, a year-on-year increase of 13.3% when adjusted for comparable metrics, indicating a stronger commitment to R&D spending.
The application process is now more convenient.
To further streamline tax compliance for taxpayers, the tax authorities have introduced measures such as adding a 2021‑version template for R&D expense supporting schedules and revising and optimizing the calculation method for the cap on “other related expenses.” These steps have significantly simplified the information required in corporate accounting and reporting forms, refined expense‑calculation methodologies, and reduced the administrative burden on businesses. The number of supporting schedules that companies need to complete to benefit from the policy has been cut by 75%, substantially shortening filing times and markedly easing the workload of finance teams.
“Given that some small, medium, and micro enterprises have limited financial accounting capabilities, accurately compiling and completing the 2015‑version R&D expense subsidiary ledger can be quite challenging. To address this, the tax authorities have introduced a new 2021‑version format for the R&D expense subsidiary ledger, thereby simplifying the filing process,” explained Wang Sujiang, a second‑level researcher in the Corporate Income Tax Division of the Beijing Municipal Tax Service. He added that the newly designed ledger format has been streamlined from the previous “four subsidiary ledgers plus one summary table” to “one subsidiary ledger plus one summary table,” further reducing the reporting burden.
“Previously, filing for the additional deduction of R&D expenses and completing the auxiliary ledger for R&D expenditures was indeed quite challenging,” said Feng Qian, a finance professional at Chongqing Fuzhike Technology Development Co., Ltd. She added that the new policy introduces a simpler format for the auxiliary R&D expenditure ledger, allowing enterprises to use either the old version or the new one, or even customize it to suit their specific circumstances, thereby significantly easing the administrative burden on businesses.
The new policy also revises the previous practice of calculating the cap for “other related expenses” separately for each R&D project, replacing it with a unified calculation of the cap for all R&D projects, thereby effectively simplifying the calculation methodology.
“Recently, as we’ve been processing the additional deduction for R&D expenses under the new policy, we’ve clearly experienced its key advantages: earlier timing, greater tax benefits, and more streamlined accounting,” said Zhai Haihong, CFO of Beijing Daqing Biotechnology Co., Ltd. She added that the new policy, which standardizes the calculation of the cap and allows it to be reallocated across different projects, offers even more substantial incentives for companies with high R&D investment and makes the calculation process much simpler.
Policy benefits delivered swiftly and directly
In practice, given the complexity and extended timelines of certain R&D activities, coupled with the distinct characteristics and high degree of specialization across different sectors, some enterprises must compile a substantial amount of supporting documentation when calculating eligible expenses. To ensure the timely and effective implementation of relevant policies, tax authorities have intensified their efforts—particularly through targeted guidance—to guarantee that policy benefits are swiftly and directly accessible to eligible entities.
“Since the new policy was introduced, the tax authorities promptly packaged and disseminated the preferential measures to our finance staff, and the tax officials assigned to liaise with us have provided guidance on the application of relevant policies and the completion of reporting forms on multiple occasions,” said Qian Xiaofeng, Chief Financial Officer of Beijing Langshi Instrument Co., Ltd.
To provide targeted guidance to enterprises in accessing preferential policies, the State Taxation Administration has promptly adjusted and refined its information systems, intensified oversight and supervision of policy implementation, and mobilized tax authorities nationwide to leverage big‑data platforms. These efforts focus on identifying high‑tech enterprises, technology‑based SMEs, and companies with R&D expenditures in previous years, offering tailored policy outreach and support. At the same time, the Administration has strengthened coordination and communication with science and technology, finance, and other relevant departments, helping enterprises promptly obtain certification for disputed R&D projects and thereby enabling them to better benefit from these incentives.
Jiang Zhen believes that the policy of allowing an additional deduction for R&D expenses is the “key lever” of the tax policy framework—grounded in both the broader national context and practical realities, and designed to incentivize innovation. It helps foster a favorable tax environment that encourages innovation and nurtures a conducive ecosystem for scientific and technological advancement, with its full impact expected to unfold over the medium to long term.

Tax Administration Supports the Integrated Development of the Yangtze River Delta
Building a convenient and efficient tax administration and taxpayer service system, and contributing the tax sector’s strength to the national strategy for regional coordinated development, is a key pillar of the Yangtze River Delta’s high-quality integrated development. During recent interviews, reporters learned that, under the unified deployment of the State Taxation Administration, tax authorities across the Yangtze River Delta have aligned their efforts and worked in concert, continuously advancing the integration of tax administration and the facilitation of tax‑related procedures, thereby providing higher‑quality support for the region’s integrated development.
Following the implementation of the Yangtze River Delta Integrated Development Strategy, the State Taxation Administration established a dedicated leading group to advance this initiative. In line with the guiding principles of “integrating into integration, serving integration, and promoting integration,” it introduced 16 tax‑support measures in November 2019 and, in 2020, rolled out an additional 10 measures to support and facilitate the integrated development of the Yangtze River Delta, thereby establishing a “16+10” tax‑support framework. At the end of December 2019, the tax authorities of Shanghai, Jiangsu, Zhejiang, Anhui, and Ningbo convened their first joint meeting, signed the Agreement on Jointly Promoting Tax Support and Services for the Integrated Development of the Yangtze River Delta, and put in place a robust collaborative mechanism and a work plan, providing institutional safeguards and a platform for cross‑sectoral and cross‑regional coordination to advance the overall tax‑related efforts under the integrated development strategy.
“It’s been ages since I last visited the tax bureau. This newly renovated online tax service hall, the integrated service hall, and the invoice-processing hall are virtually unrecognizable,” said Dai Xihong, a tax accountant at Yashi Chuangneng Technology Co., Ltd., at the integrated service hall located at No. 100 Chengzhong West Road, Qingpu Tax Bureau in Shanghai.
Dai Xihong has long dealt with the tax authorities; in the past, “running to multiple offices and making repeated visits” was the norm for handling tax matters. Today, most tax-related procedures can be completed entirely online, allowing taxpayers to handle their affairs conveniently without leaving home. “Before coming, I specifically checked the hall’s foot traffic on the Qingpu Taxation WeChat official account and even grabbed a queue number remotely in real time,” Dai Xihong said happily. “It saves time, effort, and worry.”
The reporter learned that on October 9 last year, the “One-Visit‑Only” Tax Service List for the Yangtze River Delta was issued and put into effect, introducing a guide for handling 199 items across 14 major categories—covering information reporting, invoice processing, tax filing and payment, preferential treatment applications, and certificate issuance—under the “one‑visit‑only” principle. The guide clearly specifies the required documents, eligibility criteria, processing methods, and procedures, thereby providing taxpayers in the Yangtze River Delta with standardized, uniform services…
The tax authorities of three provinces and two municipalities are continuously enhancing taxpayers’ sense of gain and satisfaction, driving the integrated tax administration in the Yangtze River Delta to expand into broader areas and reach higher standards. “With just a few clicks on the electronic tax bureau, all tax filing and payment are completed.” Jin Lu, a finance professional at Zhejiang Jiashan County State-owned Assets Investment Co., Ltd., was able to file and pay property tax and urban land use tax for multiple properties located in the Greenland Center in Shanghai’s Qingpu District—without setting foot in Shanghai. Jin Lu told reporters that since the electronic tax bureau introduced online registration and online filing and payment for the two taxes across regions within the Yangtze River Delta, she has not had to travel to Shanghai for half a year, handling everything effortlessly through the platform.
The reporter learned that, as the construction of the Yangtze River Delta Electronic Tax Bureau continues to deepen, the functionality of its cross-provincial tax‑related service system has been steadily enhanced, and the online experience for handling cross‑provincial matters has improved significantly. In 2020, five types of services—individual income tax return record inquiries, social security certificate issuance, inter‑provincial relocation, changes to tax registration information, and collection of real‑name information for tax‑filing personnel—were made available through a single online platform. By 2021, two additional services—signing the tripartite tax‑treasury‑bank agreement and issuing tax payment certificates in form format—had also been integrated into this one‑stop online system.

 
Tax reductions, refunds, and deferrals totaling RMB 15.07 billion—tax policies help alleviate the difficulties faced by coal-fired power and heating enterprises.
Since the beginning of this year, coal‑power enterprises have faced significant challenges due to rising coal prices and other factors. To ensure a secure and stable energy supply, tax authorities have implemented a series of coordinated measures to stabilize coal prices and reduce costs, thereby alleviating the operational difficulties of these companies.
To support the effective implementation of energy and power supply‑guarantee measures this winter and next spring, the State Taxation Administration issued, as early as September 30, the “Notice on Implementing Tax Measures to Assist Coal‑Power Enterprises in Overcoming Difficulties,” which proactively introduces tax relief measures—tax reductions, refunds, and deferrals—to help coal‑power and heat‑supply enterprises. These measures ensure that eligible enterprises fully benefit from preferential tax policies, receive full refunds of outstanding input VAT credits, and obtain all applicable deferrals for taxes they are unable to pay due to financial constraints, thereby effectively reducing their tax and fee burdens and alleviating their liquidity challenges and operational pressures.
Cai Zili, Director-General of the Revenue Planning and Accounting Department of the State Taxation Administration, stated that tax authorities have systematically reinforced accountability at every level and conducted a thorough, case-by-case assessment of the situation. In accordance with the unified deployment of the State Taxation Administration, tax agencies at all levels have carried out detailed surveys of the operations and tax compliance of coal-fired power and heating enterprises, resulting in three lists: a list of such enterprises, a list of applicable tax and fee preferential policies, and a list specifying the types of taxes and the corresponding tax amounts eligible for deferral or reduction.
The Inner Mongolia Autonomous Region has been tasked with ensuring coal supply for 18 provinces, autonomous regions, and municipalities, covering 53 million tons. By effectively implementing tax measures to help coal‑power and heating enterprises overcome difficulties, the region is playing a crucial role in safeguarding energy supplies and national energy security. The Inner Mongolia Tax Service of the State Taxation Administration has leveraged its big‑data analytics capabilities to conduct preliminary, categorized baseline analyses of coal‑power enterprises as well as natural gas and coal‑fired heating companies across the region. Building on this, it has further refined targeted tax administration and meticulous service measures—tailored to each enterprise and each household—to ensure the full and effective implementation of relief‑oriented tax policies.
“By aligning with the list of tax and fee preferential policies for coal-fired power and heating enterprises, the region’s tax system has ensured that all 374 such enterprises fully benefit from four industry-specific and 12 universal tax and fee relief measures. We have also provided maximum possible deferrals—both general and targeted—for eligible struggling businesses, and promptly refunded all eligible input VAT credit balances, thereby doing our utmost to ease the financial pressures faced by these enterprises,” said Hu Suhua, Party Secretary and Director of the Inner Mongolia Autonomous Region Tax Service Bureau.
In Jilin Province, the Jilin Thermal Power Plant of Guoneng Jilin Longhua Cogeneration Co., Ltd. provides heat and power to industrial enterprises in the surrounding area, consuming 2.27 million tons of bituminous coal for both electricity generation and heating. “Since the beginning of this year, despite a nationwide rise in coal prices, grid‑connected electricity tariffs have remained unchanged, leaving the company with substantial losses,” said Cui Hongyuan, Party Secretary and Deputy Director of the plant.
To alleviate the financial burden on enterprises, a specialized service team from the Jilin Provincial Tax Service Bureau of the State Taxation Administration visited and conducted an on-site survey at the Jilin Thermal Power Plant of Guoneng Jilin Longhua Cogeneration Co., Ltd. The team briefed the company on four tax and fee preferential policies tailored to coal‑power enterprises, 12 universal tax and fee relief measures, and additional measures such as tax reductions, refunds, and deferrals designed to help coal‑power offices overcome difficulties. With the support of these tax‑and‑fee reduction policies, the company expects to benefit from tax and fee exemptions and reductions totaling RMB 1.1754 million for the full year 2021; to date, it has already processed a tax deferral of RMB 147,400 for October.
In Shandong Province, the Rizhao Power Plant of Huaneng International Power Co., Ltd., located in the Rizhao Economic and Technological Development Zone, is an enterprise engaged in the construction, operation, and management of power plants. To alleviate the operational pressures faced by coal-fired power companies, the Rizhao Economic and Technological Development Zone Tax Bureau of the State Taxation Administration, upon learning of the situation, provided the company with a tailored package of policy measures and offered a detailed explanation of 16 tax and fee preferential policies—such as the additional deduction for R&D expenses and the carryforward refund of value-added tax for energy conservation and environmental protection—that coal-fired power enterprises are eligible to enjoy. On November 6, following the company’s application, a VAT carryforward refund totaling RMB 9.1121 million was credited to its account on the same day.
In Tangshan City, Hebei Province, the Douhe Power Plant of Datang International Power Generation Co., Ltd. provides district heating to a total area of 12 million square meters, supplying heat to residents in the northeastern part of Tangshan. In the third quarter of this year, amid an imbalance between coal supply and demand, declining inventories, rising generation costs, and a widening gap between coal‑generated electricity prices and production costs, losses have continued to deepen, posing significant challenges to the plant’s cash flow.
After thoroughly assessing the enterprise’s actual operating conditions, the Kaiping District Tax Service Bureau of Tangshan City, under the State Taxation Administration, tailored a customized “one‑form, one‑account” approach to ensure that the enterprise receives all applicable benefits, deductions, refunds, and deferrals.
Kong Xiangjun, Deputy General Manager of Douhe Power Plant, stated: “During the October tax filing period alone, we deferred payment of water resource tax and environmental protection tax totaling over RMB 1.06 million, and received a VAT credit refund of RMB 3.09 million, effectively easing our financial constraints and operational pressures.”
Jiao Donghai, Party Secretary and Director of the Kaiping District Tax Bureau, stated that coal‑and‑power enterprises are “contributing entities,” and that it is the tax authorities’ duty to proactively support the secure supply of energy and electricity and to help ensure the steady development of the local economy and society. The tax authorities have systematically reinforced accountability at every level, conducted a thorough assessment of each enterprise’s situation, and tracked results on a daily basis, always putting taxpayers and payers first. Working hand in hand with businesses, they will fully implement relevant policies and do their utmost to underpin energy‑supply security this winter and next spring.
According to the State Taxation Administration, as of November 4, tax reductions, refunds, and deferrals totaling RMB 15.07 billion have been granted nationwide to coal-fired power and heat‑supply enterprises. Of this amount, cumulative tax reductions and exemptions totaled RMB 5.78 billion, while deferred tax refunds amounted to RMB 9.29 billion, effectively easing financial pressures and operational challenges faced by these enterprises and supporting efforts to ensure energy supply this winter and next spring.

Guizhou: Implementing Multiple Measures to Ensure Full Access to Tax Incentives
Tailoring personalized policy “packages” for enterprises, launching the “Qian Tax Cloud Classroom” to provide specialized training for taxpayers, and regularly delivering the latest tax‑benefit policies directly to businesses—since the beginning of this year, the Guizhou Provincial Tax Service Bureau of the State Taxation Administration has taken Party history study and education as an opportunity and leveraged big data and cloud‑based guidance to carry out the “Doing Practical Things for Taxpayers and Payers” initiative and the Spring Breeze Action for Convenient Tax Services, ensuring that all eligible tax incentives are fully and promptly accessed.
“The VAT threshold has been raised,” “the additional deduction rate for R&D expenses has been further increased,” “income tax for small and micro enterprises and individual business households has been cut in half again,” and “incremental input VAT refunds are now fully refunded on a monthly basis”... According to statistics, in recent years, the state has introduced a wide array of tax and fee preferential policies aimed at improving people’s livelihoods, stabilizing growth, and expanding employment.
To help taxpayers and payers access tax preferential policies more quickly and effectively, the Guizhou Provincial Tax Authorities have launched a targeted “policy package” delivery service. According to the head of the Taxpayer Services and Publicity Center of the Guizhou Provincial Tax Service Bureau of the State Taxation Administration, by tailoring personalized policy “packages” for enterprises, the authorities are able to deliver relevant information directly to taxpayers and payers online, shifting the approach from “people seeking policies” to “policies finding people.”
“The tax bureau’s services are becoming increasingly attentive!” Recently, before the new version of the corporate income tax provisional return form was launched, tax personnel at Guizhou Xin Changzheng Technology Co., Ltd. received targeted policy alerts from the provincial tax bureau, enabling them to benefit from tax incentives in the shortest possible time. Meanwhile, a finance professional at Guizhou Renhe Zhiyuan Data Service Co., Ltd. used to study policies online, but now says, “These days, I can simply open my computer and log into the electronic tax bureau to find the policies that best suit my needs—so convenient and hassle‑free.”
According to statistics, as of the end of October this year, the Guizhou Provincial Tax Service Bureau of the State Taxation Administration has delivered targeted tax‑benefit policy information to 1.37 million taxpayer instances, totaling nearly 9.8 million messages. This “targeted delivery” initiative has earned widespread recognition across various sectors.
In addition to “online outreach,” taxpayers can also seek clarification through a cloud‑based platform. To meet their diverse needs for policy education and to align with the “Internet Plus” trend—encouraging taxpayers to “spend more time online and less time in person”—the Taxpayer Services and Publicity Center of the Guizhou Provincial Tax Service Bureau of the State Taxation Administration has established the “Qian Tax Cloud Classroom” live‑streaming platform. This innovative platform for disseminating tax and fee policies enables seamless sharing across provincial, municipal (prefectural), and county (district) levels, providing taxpayers with information on relevant tax and fee laws and regulations, interpreting the latest policies, explaining tax‑filing procedures, and addressing complex tax‑related queries, thereby helping enterprises fully benefit from applicable tax incentives.
An tax officer at Guizhou SF Express Co., Ltd. said that the tax authorities have been conducting policy briefings via online live streams, allowing viewers to tune in simply by opening their smartphones. If anything remains unclear, they can ask questions directly, and after the broadcast ends, they can rewatch it as many times as needed—truly a thoughtful and user-friendly approach.
Litigation & Arbitration
The Central Political and Legal Commission has released information on six typical cases involving the recording and reporting of compliance with the “Three Regulations” on preventing interference in judicial proceedings.
Recently, the Central Political and Legal Commission publicly released details of six typical cases involving the recording and reporting of compliance with the “Three Regulations” on preventing interference in judicial proceedings.
1. Case involving Li Xueqian, former Chairman of the Chinese People’s Political Consultative Conference in Junan County, Linyi City, Shandong Province, who interfered with judicial proceedings and meddled in the handling of a specific criminal case. In March 2019, Li Xueqian’s son, surnamed Li, was placed under investigation by the Junan County Public Security Bureau for allegedly stealing bonsai trees in collusion with others. As the then‑Chairman of the Junan County CPPCC, Li Xueqian sought to shield his son from criminal prosecution by interceding with Xie Jianjun, the former Deputy Secretary of the Party Committee and Deputy Director of the Junan County Public Security Bureau, thereby causing the case to be reclassified from a criminal matter to an administrative‑public‑order case. Xie Jianjun failed to record and report this interference in accordance with relevant regulations. Li Xueqian is also suspected of other violations of law and discipline. At present, he has been expelled from the Communist Party, and the matters involving his suspected criminal conduct have been referred to the judicial authorities for further handling. Xie Jianjun has been placed under investigation by the Junan County Commission for Discipline Inspection and Supervision.
2. Case involving Yang Guangyin, former member of the Standing Committee and head of the Organization Department of the Baoshan Municipal Party Committee in Yunnan Province, who interfered with judicial proceedings and meddled in the handling of a specific case. In July 2019, while the Longyang District People’s Court of Baoshan City was hearing a contract dispute involving a construction engineering company in Yunnan, Yang Guangyin, then a member of the Baoshan Municipal Party Committee and head of its Organization Department, inquired with the court’s president about the status of the case. In accordance with relevant regulations on case supervision, the president consulted the judge assigned to the case regarding the facts; he did not interfere with the trial process but failed to record and report the relevant circumstances as required. Subsequently, the case was adjudicated in accordance with the law. On November 24, 2020, the Intermediate People’s Court of Baoshan City issued a city-wide reprimand against the court’s president. Yang Guangyin has been referred to the judicial authorities for investigation on suspicion of other illegal and criminal activities.
3. Zhou, the deputy chief prosecutor of a district people’s procuratorate in a certain city of Jiangsu Province, proactively recorded and reported the matter. In August 2019, Zhu, a retired cadre of the city’s people’s procuratorate, was approached by relatives of a suspect in a fraud case and went to a grassroots-level procuratorate within the city’s jurisdiction to inquire with Deputy Chief Prosecutor Zhou about the case. Zhou stated that he would handle the matter in accordance with the law and informed Zhu of the relevant requirements under the “Three Regulations.” Subsequently, Zhou accurately documented and reported Zhu’s inquiry into the case. The city’s people’s procuratorate fully commended Zhou’s proactive recording and reporting and promoted this practice throughout the city’s procuratorial system for study and implementation.
4. Judge Yang of the People’s Court of a certain city in Hainan Province proactively recorded and reported the matter. On May 25, 2020, Chen, a former adjudicator at the Intermediate People’s Court of Hainan Province, at the request of a friend, sought to influence Judge Yang— who was handling a divorce case before the People’s Court of that city—by urging him to rule in favor of granting the divorce. Judge Yang declined and accurately documented the incident. In November 2020, the Hainan Provincial Higher People’s Court commended Judge Yang for his conscientious refusal to yield to interference or inquiries regarding the case and for his proactive recording and reporting of such interactions.
5. Judge Wang of the People’s Court of a certain district in a certain city of Shandong Province proactively recorded and reported the matter. In November 2020, Liu, an employed staff member of the same court, at the request of a party to the case, approached Judge Wang—responsible for handling the case—and sought a postponement of the court hearing while also hoping for mediation. Judge Wang declined Liu’s entreaties, accurately documented the circumstances of the inquiry, and rendered a judgment in accordance with the law. In March 2021, the district people’s court fully commended Judge Wang for his conscientious resistance to interference and improper inquiries into the case, as well as for his proactive recording and reporting.
6. In a certain district of a city in Zhejiang Province, prosecutors Wang, Hao, Chen, and Liu voluntarily recorded and reported instances of interference. From June 2018 to August 2019, Chen, who at the time served as the political commissar of the Judicial Police Detachment of the People’s Procuratorate of that city, repeatedly intervened in cases involving prosecutors Wang, Hao, Chen, and Liu within the jurisdiction. Each of these prosecutors declined Chen’s requests for favoritism and inquiries into case details, and duly documented and reported such interactions. In September 2019, at the mobilization and deployment conference for the thematic education campaign on “Staying True to Our Original Aspiration and Keeping Our Mission Officely in Mind,” the city’s procuratorate fully commended Wang, Hao, Chen, and Liu for their conscientious resistance to interference in cases and their proactive recording and reporting of such incidents. At present, Chen has been removed from his post as political commissar of the Judicial Police Detachment and expelled from the Communist Party for violating the “Three Regulations” and other disciplinary infractions.
During the nationwide campaign to rectify and improve the political and legal workforce, political and legal organs at all levels have focused on the fundamental task of recording and reporting under the “Three Regulations.” By establishing and refining a mandatory information system for recording and reporting, as well as a direct‑reporting mechanism for such records, they have strengthened education, publicity, and oversight. They have both publicized negative examples—cases of interference in judicial proceedings, improper “打招呼,” or failure to comply with prescribed recording and reporting requirements that resulted in disciplinary and legal sanctions—and commended positive exemplars who, after proactively making such records, upheld strict law enforcement and impartial justice. These efforts have helped forge a clear guiding orientation, a robust accountability framework, and a powerful momentum across society for implementing the “Three Regulations.” The Central Political and Legal Commission has urged all political and legal organs at every level to elevate the work of recording and reporting to the highest priority—ensuring the effective implementation of the CPC Central Committee’s decisions and deployments, upholding rigorous Party self‑governance, and promoting fair and clean law enforcement and judicial administration. Furthermore, it calls for distilling and institutionalizing the valuable experiences and best practices developed during the campaign, sustaining concerted efforts over the long term.
According to reports, this marks the third time since the launch of this year’s nationwide education and rectification campaign for political and legal personnel that the Central Political and Legal Commission has publicly disclosed typical cases involving leading cadres interfering in judicial activities or meddling in the handling of specific cases, as well as instances of law enforcement officers proactively recording and reporting such incidents. The Central Political and Legal Commission will work with the Central Commission for Discipline Inspection and the central political and legal organs to improve systems for regular public notifications and retrospective accountability, rigorously oversee implementation, and, through coordinated efforts both within and outside the system and seamless vertical linkages, forge a powerful synergy among Party and government bodies and all sectors of society to ensure that political and legal personnel strictly adhere to the “Three Regulations” and support political and legal organs in exercising their powers independently and impartially in accordance with the law.

Supreme People’s Court: Since the beginning of this year, courts nationwide have disbursed 945.601 billion yuan in enforcement funds.
Today, the Supreme People’s Court held a press conference to brief the public on the interim progress of the targeted campaign to address prominent issues in the field of enforcement, as well as on matters related to the National Courts’ Day for the Centralized Disbursement of Enforcement Funds.
“As of now, courts nationwide have concluded 7.229 million first‑instance and resumed enforcement cases, disbursing a total of RMB 945.601 billion in execution funds,” said Liu Guixiang, a vice‑minister‑level full‑time member of the Supreme People’s Court Adjudication Committee. Since the beginning of this year, the Supreme People’s Court has designated the centralized cleanup of execution funds as a key component of its campaign to address persistent problems and deep‑seated malpractices in the enforcement field, treating it as an important measure under the initiative “Doing Practical Things for the People” and vigorously advancing it.
At the conference, reporters learned that, while adhering to a dual approach of “immediate clearance” and “long-term resolution” in handling enforcement funds, courts nationwide resumed enforcement proceedings in 1.33 million cases from January to October 2021, with a total amount enforced reaching RMB 507.6 billion. The compliance rate for cases closed under the “final closure” procedure—where execution is temporarily terminated because the party subject to enforcement has partially or wholly lost the ability to perform and no assets are available for enforcement—stood at 90.8%.
It is reported that, in response to prominent issues such as improper conduct, lack of integrity in enforcement, and non‑compliant behavior identified during the education and rectification campaign, the Supreme People’s Court has formulated the “Ten Musts” for the handling of enforcement cases by people’s courts, setting out clear enforcement standards across ten areas, including strengthening political awareness, a sense of purpose, adherence to discipline and law, and strict compliance with the “Three Regulations.”
At the meeting, the Supreme People’s Court also publicly released 10 typical cases involving the substantive resolution of enforcement-related complaints and petitions, further clarifying how to leverage mechanisms such as the “court leadership reception” system, coordinated efforts among courts at the provincial, municipal, and county levels to facilitate enforcement settlements, and the “collaborative enforcement” mechanism, thereby preventing and defusing risks.

The Supreme People’s Procuratorate has released a report on the status, as of the third quarter of 2021, of nationwide procuratorial organs recording and reporting major matters involving inquiries into or interference with, or meddling in, prosecutorial case handling.
In the third quarter of this year, particularly since the launch of the second nationwide campaign to rectify and educate political and legal personnel, procuratorial organs at all levels have remained guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implemented Xi Jinping’s thought on the rule of law, and closely integrated these efforts with Party history study and education and the second round of the national procuratorial‑system education and rectification. Under the precise, thorough, pragmatic, and effective supervision of the central supervisory teams and the Second Supervision Group of the Central Political and Legal Organs, they have rigorously enforced the system for recording and reporting major matters such as inquiries into or interference with, or meddling in, prosecutorial case handling; strengthened efforts to address persistent problems involving violations of the “Three Regulations” on preventing interference in judicial affairs; and worked to prevent, at the source, cases influenced by personal connections, relationships, or money, thereby effectively promoting fairness and integrity in prosecutorial work.
In the third quarter, procuratorial organs nationwide recorded and reported a total of 31,471 major matters involving inquiries into or interference with, or meddling in, prosecutorial case handling; this represents a year-on-year increase of 60%. Among these, the Supreme People’s Procuratorate reported 273 cases, provincial-level procuratorates reported 2,260, city-level procuratorates reported 6,610, and grassroots procuratorates reported 22,328, accounting for 0.9%, 7.2%, 21%, and 70.9% respectively. The key features are as follows: First, the vast majority of recorded reports concerned inquiries about and understanding of prosecutorial case handling and related matters, as well as oversight and urging of prosecutorial work, while instances of actual interference or meddling were relatively few. Overall, 29,110 reports—representing 92.5%—related to providing information, seeking clarification, or urging lawful and impartial case handling; 969 reports—3.1%—concerned interference or meddling in prosecutorial proceedings; and 1,392 reports—4.4%—involved inappropriate contact or interactions with parties to cases, lawyers, or other individuals outside working hours or official premises. Second, the number of records and reports filed by provincial-level procuratorates has been steadily increasing. With the deepening implementation of the second phase of the national education and rectification campaign targeting the procuratorial workforce, provincial procuratorates have vigorously addressed longstanding problems stemming from inadequate enforcement of the “Three Regulations,” placing particular emphasis on strengthening the recording and reporting of major matters involving inquiries into or interference with, or meddling in, prosecutorial case handling. In July, provincial procuratorates nationwide recorded 430 such reports, up 76% year on year; in August, the figure rose to 688, an increase of 273%; and in September, it reached 1,142, a year-on-year jump of 405%. The bulk of this growth consisted of self‑examinations and supplementary filings made during the education and rectification period. Third, the subjects of these records and reports predominantly came from outside the procuratorial system. By category of the reporting party’s affiliated institution, 3,465 were procuratorial personnel, accounting for 11%, while 28,006 were non‑procuratorial personnel, making up 89%. The overwhelming majority of procuratorial personnel have demonstrated compliance with requirements, refraining themselves from inquiring into or interfering with, or meddling in, cases handled by others, and have progressively fostered a shared understanding and conscious adherence to the “Three Regulations” within the procuratorial system.
In the first three quarters, procuratorial organs nationwide recorded and reported a total of 131,264 significant matters involving inquiries into or interference with, or meddling in, prosecutorial case handling, an increase of 204.2% year on year. Among these, the Supreme People’s Procuratorate reported 818 cases, provincial-level procuratorates reported 5,008, city-level procuratorates reported 25,750, and grassroots procuratorates reported 99,688, accounting for 0.7%, 3.8%, 19.6%, and 75.9%, respectively.
Going forward, the procuratorial organs will further deepen their study and implementation of Xi Jinping’s Thought on the Rule of Law, earnestly carry out the “Opinions of the CPC Central Committee on Strengthening Legal Supervision by the Procuratorial Organs in the New Era,” consolidate and build upon the achievements of the education and rectification campaign within the political‑legal workforce, and more officely enforce the principal responsibility for strictly implementing the “Three Regulations” on preventing interference in judicial proceedings. They will strengthen scientific management, improve institutional mechanisms, deepen the application of outcomes, and continuously refine the system of oversight and checks on the exercise of procuratorial power. In doing so, they will holistically establish institutional frameworks that ensure officials dare not be corrupt, cannot be corrupt, and have no desire to be corrupt, striving to ensure that the people feel fairness and justice in every judicial case.
The Supreme People’s Procuratorate and other authorities have issued the “Typical Cases of Comprehensive Family Education Guidance in Handling Cases Involving Minors.”
On November 15, the Supreme People’s Procuratorate, the All-China Women’s Federation, and the China Care for the Next Generation Working Committee jointly issued the “Typical Cases of Comprehensive Family Education Guidance in Handling Cases Involving Minors,” aiming to guide procuratorial organs at all levels, women’s federations, and care‑for‑the‑next‑generation committees to fully recognize the significance of comprehensively advancing family education guidance, to learn from advanced experiences and practices, and to continuously promote the high‑quality development of family education guidance in cases involving minors.
The five typical cases released this time focus on: guiding the public to adopt a scientifically sound approach to education and preventing domestic violence at its source, as in the case of abuse involving Zhu Moumou and Xu Moumou; establishing standardized working mechanisms to effectively address the issue of unattended minors, as in the theft case involving Chen Mou; enhancing the targeted nature of family‑education guidance to facilitate the rehabilitation of minors with serious misconduct, as in the case where Li Mou was not prosecuted for robbery; ensuring the coordinated integration of guardianship oversight and family‑education guidance to strengthen families’ protective responsibilities, as in the case where Chen Moujia was not prosecuted for theft; and pooling high‑quality resources to promote the professional development of family‑education guidance, as in the case of the sexual assault suffered by minor Zhang Moumou.
The Supreme People’s Procuratorate, the All-China Women’s Federation, and the China Care for the Next Generation Working Committee have called on procuratorial organs, women’s federations, and care‑for‑the‑next‑generation committees at all levels to take the recently released typical cases as reference, tailor their approaches to local conditions, and proactively explore innovative solutions. By using case‑by‑case guidance as a starting point, they are encouraged to gradually accumulate experience, establish region‑specific mechanisms for family education guidance, and develop long‑term, stable systems and practices. Furthermore, they should seek effective models and methods for family education guidance, promptly summarize lessons learned, and advance theoretical research. Finally, by fully leveraging their resource and talent advantages, they are urged to vigorously cultivate expert personnel and service teams, thereby strengthening the foundation of family education guidance work.
An official from the Ninth Procuratorial Office of the Supreme People’s Procuratorate pointed out that inadequate family supervision or improper parenting are major causes of “problem children.” Strengthening guidance on family education is a concrete measure to cultivate new generations capable of shouldering the great mission of national rejuvenation; it also responds to the public’s new expectations and needs, and fulfills the explicit requirements set forth in the Law on the Protection of Minors and the Law on Preventing Juvenile Delinquency. The procuratorial organs will steadfastly implement Xi Jinping Thought on the Rule of Law and General Secretary Xi Jinping’s important expositions on emphasizing family building, family education, and family values, further ensuring the effective implementation of the “Opinions on Comprehensively Carrying Out Family Education Guidance in Handling Cases Involving Minors,” while coordinating closely with relevant functional departments to reinforce parental responsibilities, enhance family‑education capabilities, and pool efforts to protect minors.
Notice on the Issuance of “Typical Cases of Comprehensive Family Education Guidance in Handling Cases Involving Minors”
People’s Procuratorates, Women’s Federations, and Care‑for‑the‑Next‑Generation Committees of all provinces, autonomous regions, and municipalities directly under the central government; People’s Procuratorate, Women’s Federation, and Care‑for‑the‑Next‑Generation Committee of the Xinjiang Production and Construction Corps:
To thoroughly implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and earnestly carry out General Secretary Xi Jinping’s important expositions on strengthening family, family education, and family traditions, while reinforcing parental guardianship responsibilities and enhancing family education capabilities, the Supreme People’s Procuratorate, the All-China Women’s Federation, and the China Care for the Next Generation Working Committee have jointly selected and compiled five typical cases. These cases are hereby circulated for reference in relevant work.
Strengthening guidance on family education is a concrete measure for cultivating the new generation of the times who are capable of shouldering the great mission of national rejuvenation; it is also a practical necessity for responding to the people’s new expectations and needs, and moreover, a clear requirement set forth in the Law on the Protection of Minors and the Law on Preventing Juvenile Delinquency. Procuratorial organs at all levels, women’s federations, and committees for the care of the next generation must fully recognize the profound significance of comprehensively advancing family‑education guidance, study advanced experiences and practices, and continuously promote the high‑quality development of family‑education guidance in cases involving minors. First, we must substantially intensify efforts to move this work forward. In particular, regions that have not yet initiated family‑education guidance in cases involving minors should proactively explore new approaches, strive to achieve breakthroughs, use case‑by‑case guidance as a starting point to gradually accumulate experience, establish local mechanisms for family‑education guidance, and put in place long‑term, stable systems and practices. Second, we must focus on developing effective models and methods for family‑education guidance, promptly summarize lessons learned, and advance theoretical research. By continually identifying the root causes of inadequate parental care in cases involving minors, uncovering the underlying patterns of family education, and devising targeted methods and measures, we can enhance the professionalism and scientific basis of family‑education guidance, improve the quality and effectiveness of our work, and address the deeper‑seated issues in family education. Third, we must devote ourselves to building a high‑caliber workforce. Family‑education guidance is an extremely specialized aspect of juvenile protection; an experienced, well‑grounded, and stable team is the fundamental guarantee for carrying out this work effectively and sustainably. Procuratorial organs at all levels, women’s federations, and committees for the care of the next generation should fully leverage their respective resource and talent advantages, vigorously cultivate expert professionals and service teams, and consolidate the foundation of family‑education guidance.

Multiple departments have issued the Work Standards for Training “Legally Knowledgeable Individuals” in Rural Areas.

Recently, the Publicity Department of the CPC Central Committee, the Ministry of Justice, the Ministry of Civil Affairs, the Ministry of Agriculture and Rural Affairs, the National Administration for Rural Revitalization, and the National Legal Education Office jointly issued the “Work Standards for Training ‘Legally Knowledgeable Individuals’ in Rural Areas (Trial)” (hereinafter referred to as the “Work Standards”), which sets out regulations on the training of such individuals, covering aspects including guiding principles, training objectives, basic qualifications, principal duties, selection and training procedures, utilization and management, and measures to ensure effective implementation.
The Work Guidelines emphasize that the training of “legally informed individuals” in rural areas must uphold the Party’s overall leadership. It calls for fully leveraging the role of grassroots Party organizations as strong fortresses and the exemplary, pioneering role of Party members, relying on Party organizations to coordinate and advance all aspects of the selection, training, deployment, and management of these individuals. The approach must be demand‑driven and oriented toward serving the people: guided by the public’s need for rule of law, it seeks to cultivate “legally informed individuals” among the populace—individuals who can serve the community—and focus on addressing legal issues arising in villagers’ daily lives and production, thereby enhancing their legal literacy. It also requires multi‑stakeholder participation and coordinated collaboration. By pooling and integrating diverse resources and strengths, the guidelines aim to establish a mechanism for cultivating “legally informed individuals” that features interdepartmental synergy and active engagement from social forces, thus generating combined momentum. Finally, the guidelines stress the importance of adopting tailored measures and prioritizing practical results. In line with the objective laws governing grassroots rule‑of‑law development, they call for refining work strategies to suit local conditions, expanding coverage, and advancing the training program in a targeted, phased manner based on actual circumstances, so as to enhance the relevance and effectiveness of the initiative.
The Work Standards stipulate that by 2025, the training of “legally informed individuals” will be widely implemented, with each administrative village cultivating at least three such individuals. A well‑structured training mechanism, a reasonably composed workforce, and a clearly visible role for these individuals will be established, resulting in a high‑quality, well‑balanced, and effectively utilized cadre of rural “legally informed individuals.” Localities may, based on their specific circumstances—such as rural settlement patterns and population size—set target numbers for training, gradually achieving full coverage of “legally informed individuals” at the level of village groups.
The Work Standards stipulate that the training of “legally informed individuals” shall be integrated into the overall plans for building a law-based society and advancing rural revitalization, serving as a key component in accelerating talent development in rural areas. Furthermore, the progress of this training shall be regarded as an important measure to strengthen grassroots legal education teams and to improve a precise and effective legal education system; it will be incorporated into the performance‑assessment framework for talent‑management objectives, with enhanced supervision and inspection. In addition, successful practices and distinctive highlights in cultivating “legally informed individuals” should be promptly summarized, exemplary models identified and promoted, and their outstanding achievements publicized, thereby fostering a positive social environment in which the entire community cares about, understands, supports, and actively participates in the training of “legally informed individuals.”
The “Work Standards” have been formulated to standardize and advance the program for cultivating “legally informed individuals” in rural areas, with a focus on building a team of legal educators and practitioners who are readily accessible to the public. This initiative aims to provide a pool of grassroots legal professionals to support the implementation of the Rural Revitalization Strategy and the development of law-based governance in rural communities.

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