JC Master Legal News Issue 998

Key Takeaways for This Issue

SZSE: Securities offices shall prudently conduct incremental stock pledge repurchase business.

The Shenzhen Stock Exchange has issued the “Shenzhen Stock Exchange Securities Trading Business Guidelines No. 1—Risk Management for Stock Pledge Repurchase Transactions,” stipulating that securities offices shall prudently conduct new stock pledge repurchase business, with the scale of such new business aligned with their risk management capabilities and ongoing compliance status regarding existing positions.

The Politburo meeting set the tone for next year’s property market, with the goal of achieving a “virtuous cycle” bolstering industry confidence.

On December 6, the Political Bureau of the CPC Central Committee convened a meeting to analyze and deliberate on economic work for 2022. The meeting made clear that it will support the commercial housing market in better meeting homebuyers’ reasonable housing needs, and promote the sound development and healthy cycle of the real estate sector.

The effectiveness of tax relief measures underscores the precision of policy adjustments.

The implementation of the phased tax deferral measures has three key features that are particularly noteworthy. First, the policy is clearly targeted and decisively enacted, eschewing broad‑based stimulus in favor of tailored measures that address the specific needs of market entities. Second, it is implemented with precision and a focus on tangible results, enabling small and medium‑sized manufacturing enterprises to readily and accurately access the preferential policies. Third, the measures are coordinated across multiple policy channels, leveraging a comprehensive approach to deliver a powerful “combined punch.”

Ministry of Justice: Strengthening Oversight of Former Judicial and Prosecutorial Personnel Engaged in Legal Practice at Law Offices
The Ministry of Justice has made solid progress in establishing an information database on former judicial and procuratorial personnel engaged in practice at law offices, and has developed and launched a nationwide verification system for monitoring the employment of such former officials at law offices, as well as the employment of close relatives of court and procuratorial staff at law offices (hereinafter referred to as the “Verification System”). At present, the first phase of the Verification System has been essentially completed, and a “warning” label has been applied to 1,785 individuals who are still within their post‑employment restriction period, with ongoing tracking and management of their professional activities.

Finance & Capital Markets

The State Council has issued the “Notice of the State Council on Further Implementing the Administrative Penalty Law of the People’s Republic of China.”

The Administrative Penalty Law of the People’s Republic of China (hereinafter referred to as the “Administrative Penalty Law”) is an important statute that regulates government conduct. On January 22, 2021, the 25th Session of the Standing Committee of the 13th National People’s Congress revised and adopted the Administrative Penalty Law, which entered into force on July 15, 2021. The newly revised law clarifies the nature of administrative penalties, expands the categories of such penalties, improves the procedures for imposing them, and strengthens accountability in administrative enforcement. It reflects and consolidates the significant reform achievements made in recent years in the field of administrative law enforcement, while addressing the practical needs of current enforcement practices. Effectively implementing the newly revised Administrative Penalty Law is of great significance for promoting strict, standardized, fair, and civilized law enforcement; ensuring and supervising the effective administration of public affairs by administrative organs; optimizing a business environment underpinned by the rule of law; and protecting the legitimate rights and interests of citizens, legal persons, and other organizations. The issuance of this Notice further deepens understanding of the revisions to the Administrative Penalty Law and provides guidance for the solid implementation of the law.
Since the revision of the Administrative Penalty Law, the China Securities Regulatory Commission (CSRC) has conscientiously studied and implemented the new law, organized numerous briefings and training sessions, and promptly communicated its legislative spirit and institutional requirements. The CSRC has urged all internal departments, branch offices, and affiliated units to fully appreciate the profound significance of the legal amendments, thoroughly understand and accurately apply the relevant provisions of the Administrative Penalty Law, and continuously enhance the quality of regulatory and enforcement work. At the same time, in light of the revisions to the Administrative Penalty Law, the CSRC has accelerated the formulation, amendment, and improvement of supporting rules and regulations, thereby providing institutional safeguards for the effective implementation of the law. On the very day the new Administrative Penalty Law came into force, the CSRC promulgated and put into effect the Measures on Administrative Penalties for Securities and Futures Violations. As the CSRC’s first dedicated regulation governing inspection and penalty procedures, these Measures set forth detailed provisions for key stages—including case filing, investigation, adjudication, and decision-making—while promptly clarifying critical issues such as case-handling deadlines, enforcement powers, and the obligations of parties to cooperate, thus providing robust institutional support for further enhancing the CSRC’s inspection and penalty effectiveness. In addition, in accordance with the unified deployment of the General Office of the State Council, the CSRC has systematically reviewed the content of administrative regulations, State Council administrative normative documents, departmental rules, and administrative normative documents that pertain to the CSRC’s administrative penalty functions, and has put forward recommendations and arrangements for their clearance.
Going forward, the China Securities Regulatory Commission will thoroughly implement the provisions of the new Administrative Penalty Law and the relevant requirements set forth in the Notice. In line with the spirit of the Opinions on Strictly Cracking Down on Securities‑related Illegal Activities in Accordance with the Law, issued by the CPC Central Committee and the State Council, the Commission will further standardize enforcement practices, elevate the quality of law enforcement, and enhance its effectiveness. It will also intensify efforts to investigate and punish serious violations, thereby providing a more robust legal framework to support the development of a capital market that is standardized, transparent, open, dynamic, and resilient.

SZSE: Securities offices shall prudently conduct incremental stock pledge repurchase business.
The Shenzhen Stock Exchange has issued the “Shenzhen Stock Exchange Securities Trading Business Guidelines No. 1—Risk Management for Stock Pledge Repurchase Transactions,” stipulating that securities offices shall prudently conduct new stock pledge repurchase business, with the scale of such new business aligned with their risk management capabilities and ongoing compliance status regarding existing positions. The full text of the notice is as follows:
Notice on the Issuance of “Shenzhen Stock Exchange Securities Trading Business Guideline No. 1—Risk Management for Stock Pledge Repurchase Transactions”
Shenzhen Stock Exchange Document No. 750 of 2021
Dear Member Organizations:
To standardize and guide securities companies in conducting stock‑pledge repurchase transactions in a compliant and prudent manner, and to effectively prevent and mitigate business risks, this Exchange has formulated the “Shenzhen Stock Exchange Securities Trading Business Guidance No. 1—Risk Management for Stock‑Pledge Repurchase Transactions,” in accordance with the Measures for Stock‑Pledge Repurchase Transactions and Registration and Settlement Services (Revised in 2018) and other relevant provisions (see attachment). This guidance is hereby promulgated and shall take effect as of January 1, 2022.
Hereby notified.

The Shenzhen Stock Exchange has streamlined its self-regulatory rules, reducing their number by more than 70 percent, making the regulatory framework more investor‑friendly for all market participants.
On the evening of December 10, the Shenzhen Stock Exchange publicly sought comments from the public on the integration of its self-regulatory oversight rules and the revision of the “Shenzhen Stock Exchange Rules for Listing Stocks” (hereinafter referred to as the “Stock Listing Rules”).
This revision and consolidation both implements the State Council Financial Stability and Development Committee’s guiding principles of “establishing sound systems, non‑interference, and zero tolerance,” and advances the Party history study‑education campaign’s practical initiative of “doing concrete things for the people.” It underscores a vigorous effort to streamline and optimize the Shenzhen Stock Exchange’s own regulatory framework, while also emphasizing functional complementarity with CSRC rules and coordinated market regulations between the Shanghai and Shenzhen stock exchanges. At its core, this aims to build a more scientific, standardized, user‑friendly, and effective regulatory system—making the “regulatory ecosystem” more accommodating to all market participants and thereby enhancing their sense of gain.
Following this consolidation, the listed company’s self-regulatory rules have been reduced to 36, a decrease of more than 70 percent in number. Overall, the integration adopts a streamlined approach for certain areas while incorporating established, widely accepted practices in key sectors.
The launch of integration and optimization efforts is yielding tangible results, paving the way for a high-quality self-regulatory framework.
Building a high-quality innovation capital center and a world-class exchange hinges on a robust, high-caliber system of self-regulatory rules.
The reporter learned that, in order to better encourage listed companies to improve corporate governance, standardize their development, and enhance their quality, the Shenzhen Stock Exchange launched an initiative to optimize its self-regulatory framework as early as the beginning of 2019. By proactively aligning rule‑making with the broader development agenda and orienting it toward high‑quality growth, the Exchange has now preliminarily established a well‑structured self‑regulatory framework: “centered on listing rules, underpinned by business guidelines, and supplemented by operational manuals.” This framework has played a positive role in regulating stock listings and information disclosure, safeguarding investors’ legitimate rights and interests, and ensuring the stable functioning of the market.
As the capital market has grown rapidly, the number of Shenzhen‑listed companies has expanded from a single digit to 2,563 today, and the associated self‑regulatory rules for listed companies have evolved from a handful of pages into a comprehensive framework. This evolution is closely tied to the stages of market development; as the volume of regulatory provisions continues to increase and supervisory practices evolve, the need to streamline the regulatory system, refine its content, and reduce its overall complexity has become increasingly apparent.
Since the beginning of this year, the China Securities Regulatory Commission has guided the Shenzhen and Shanghai stock exchanges in consolidating their regulatory frameworks for listed companies. Under the Commission’s overall coordination and guidance, the Shenzhen Stock Exchange has mobilized dedicated resources to systematically distill its regulatory experience, proactively adapting to the new circumstances, tasks, and demands arising from the evolving securities market. The Exchange has steadily advanced the integration of self-regulatory rules, further enhancing the institutionalization, standardization, and scientific rigor of the existing regulatory framework.
The Shenzhen Stock Exchange stated that this integration adheres to market‑based and law‑based principles, following the guideline of “establishing a robust systemic framework while avoiding major revisions to substantive content.” With a focus on revising the Rules for Listing Stocks, it is simultaneously advancing adaptive amendments to the Self‑Regulatory Supervision Guidelines and the Self‑Regulatory Supervision Manuals. Following the consolidation, the total number of self‑regulatory rules has been reduced by more than 70%, resulting in a streamlined, user‑friendly regulatory framework that is systematic, scientifically sound, and easy to read and understand.
Promote the efficient alignment of rules and maintain their organic coherence.
The self-regulatory framework for listed companies, as an integrated and closely interconnected system of rules that mutually reinforce one another, constitutes the “four pillars and eight beams” that ensure the proper functioning and effective operation of the capital market.
As an essential component of the self-regulatory framework for listed companies, the Stock Listing Rules have been promptly revised by the Shenzhen Stock Exchange to adapt to the evolving landscape of the capital market, thereby ensuring efficient alignment and maintaining the organic coherence of the regulatory regime. In particular, these rules serve as a foundational set of operational guidelines, playing a pivotal “bridging” role that both builds on higher‑level regulations—such as the new Securities Law—and lays the groundwork for high‑quality corporate development. They reinforce the complementary relationship between exchange‑issued rules and statutory provisions, while also providing robust regulatory tools by anchoring themselves in the detailed principles and standards set forth in relevant guidelines and manuals.
In terms of content, similar provisions have been consolidated by organizing them around four major categories—information disclosure, corporate governance, mergers and acquisitions, and regulatory responsibilities—and by merging identical regulatory requirements across different rules, thereby establishing a coherent and integrated regulatory framework that ensures seamless alignment between different levels. Employee stock ownership plans and independent director filing requirements, previously governed by separate guidelines, have been unified into the Main Board and ChiNext Guidelines on Standardized Operations, creating dedicated guidance focused on corporate governance and standardized operational practices. Additionally, content related to information disclosure management, currently scattered across various guidelines and handbooks, has been consolidated into a single Information Disclosure Management Guideline.
Following the integration, the regulatory framework has become more scientifically sound, and supervisory effectiveness has been further enhanced.
Reducing the compliance costs for market entities and establishing a concise and clear regulatory framework.
As market innovation and practice continue to evolve, the self-regulatory framework for listed companies has been steadily refined. At the same time, it has become imperative to reduce the compliance costs for market participants, thereby bolstering the quality of listed companies, and to streamline the regulatory regime. In this regard, the Shenzhen Stock Exchange has focused on ensuring that rules are concise, clear, easy to understand, and practical, distilling mature listing rules, guidelines, and manuals, as well as established regulatory practices, to better align with market needs and deliver high‑quality, results‑oriented services.
Hierarchically clarifying the structure, 39 non‑guidance documents—including the “Notice on Diligently Implementing the New Securities Law and Doing a Good Job in Information Disclosure by Listed Companies” and the “Measures for the Re‑listing of Delisted Companies”—have been systematically categorized, summarized, and integrated into the three‑tier framework of listing rules, guidelines, and handbooks, thereby further streamlining the regulatory framework. In addition, unified numbering has been implemented: the 13 self‑regulatory guidance documents—covering areas such as standardized operations and industry information disclosure—have been sequentially numbered following integration; meanwhile, the original 59 business‑handling guides and directives have been consolidated into separate guidelines for main‑board and ChiNext‑board operations.
After integration, the rules are more uniform and easier to learn and apply.
Responding to the key concerns of all parties and improving institutional frameworks in priority areas.
It should be noted that this round of regulatory consolidation emphasizes, on the one hand, “reducing quantity,” while, on the other, prioritizing “improving quality.”
The Shenzhen Stock Exchange upholds the development philosophy of “people-centeredness,” ensuring that its rulemaking aligns with the concerns of market participants. It draws on widely accepted practices from actual implementation and continuously refines supporting regulations in key areas. For example, to implement the relevant requirements of the State Council’s Opinions on Further Enhancing the Quality of Listed Companies, the Stock Listing Rules have introduced dedicated chapters on “Corporate Governance” and “Intermediary Institutions,” strengthening corporate governance standards and further reinforcing the responsibilities of intermediaries. With a focus on the “key few,” the Rules have added a special section on “Controlling Shareholders and Actual Controllers.” To standardize corporate governance, the Rules also mandate disclosure when abnormal circumstances arise during board or supervisory board meetings.
In addition to the Stock Listing Rules, the Shenzhen Stock Exchange has simultaneously sought public input on 13 self-regulatory guidelines, including the Guidelines for Standardized Operations of the Main Board and the ChiNext Board. The Exchange stated that it will adhere to market‑based and law‑based principles, carefully review and fully incorporate reasonable opinions and suggestions from all market participants, further refine its foundational systems, and optimize its regulatory framework, thereby laying a solid foundation for enhancing the quality and efficiency of market operations, boosting market vitality, and promoting the high‑quality development of listed companies.

CSRC: Cultivating an investor base aligned with the market-wide registration-based system.
On December 10, the China Securities Regulatory Commission announced that it is launching a special investor education campaign titled “Understanding Listed Company Reports,” encouraging investors to develop the habit of reading such reports, fostering an investor base aligned with the market-wide registration-based system, and delivering tangible benefits to investors.
It is understood that the activities will primarily focus on helping investors better understand listed companies’ periodic reports and prospectuses, with related investor education initiatives being organized. Relevant educational materials will be developed to disseminate knowledge about information disclosure by listed companies, guiding investors to objectively assess corporate operational capabilities, identify investment risks, and gain a clear understanding of a company’s fundamentals and growth prospects through its disclosed financial and other information. This will enable investors to independently evaluate a company’s investment value, foster a culture of rational, value‑oriented, and long‑term investing among retail investors, and contribute to building a healthy and sustainable capital market ecosystem.
The China Securities Regulatory Commission stated that this initiative is a key component of the registration-based reform. The Commission will, based on investors’ actual needs, actively leverage the roles of stock exchanges, industry associations, securities and fund management institutions, and investor education centers for securities and futures, employing diverse formats such as infographics, animations, and audio‑visual materials to publish Q&A sessions, expert analyses and commentary, and case studies. It will also organize on‑site briefings, visits to stock exchanges, branch offices, and listed companies, bringing information‑disclosure knowledge directly to investors and helping small and medium‑sized investors cultivate a value‑investment mindset and develop value‑investing habits.

Commercial & Corporate
Inventory replenishment has slowed, and coal prices are trading in a range; infrastructure expectations are picking up, which could help underpin steel prices.
On the thermal coal front, the spot price at ports closed at RMB 1,075 per tonne, unchanged from the previous week. With supply‑guarantee capacity coming online this winter and next spring, coal output remains at elevated levels, suggesting that thermal coal prices at producing regions are likely to weaken marginally. On the supply side, coal imports into port areas increased week over week, surpassing both last year’s and the year before’s levels. On the demand side, with medium- and long-term contract signings imminent, the market is adopting a wait-and-see stance toward higher‑priced coal, leading to softer downstream purchasing activity. This week, port outflows declined compared with the prior week, yet remained above last year’s and the year before’s levels; import growth outpacing export growth pushed port inventories up week over week, now at historically high levels. Looking ahead, falling temperatures are expected to continue boosting end‑use coal consumption, while production curtailments for the Winter Olympics will dampen some industrial electricity demand, keeping coal prices in a consolidation range. For coking coal, prices for prime coking coal at producing regions were flat week over week. On the supply side, domestic coking coal supplies remain tight. On the demand side, downstream demand remains subdued but broadly stable; infrastructure investment is expected to show signs of recovery, while steel demand in the real estate sector remains pessimistic, and manufacturing demand growth is set to moderate. Full‑year crude steel output is forecast to be roughly flat, with coking coal and coke prices trading in a volatile, consolidating pattern. We particularly recommend China Shenhua and Shaanxi Coal—stable operators with high dividends and yields—as well as Yanzhou Coal, which offers attractive dividend‑yield elasticity, and Shanxi Coking Coal, a beneficiary of state‑owned enterprise reform with strong upside potential.
As of this Friday, the spot price for rebar (Shanghai) HRB400 20mm stood at RMB 4,800 per ton, down RMB 10 per ton from last Friday. On the supply side, environmental‑driven production cuts persist during the autumn and winter season, with blast furnace maintenance in regions such as Tangshan and Handan remaining at elevated levels, thereby weighing on steel output. However, improving profitability has boosted production intentions among some steelmakers; national steel output rose 1.72% week-on-week, though it remains 13.6% lower than the same period in 2019, keeping overall supply relatively tight. Going forward, stringent environmental restrictions are expected to remain in place, keeping steel supply broadly subdued. On the demand side, property‑related demand has been sluggish recently, while progress on infrastructure projects has also slowed. This week, average daily construction‑material sales edged down from the previous week, hovering around 170,000 tons. Meanwhile, demand in sectors like automobiles has shown marginal improvement, with apparent demand for the five major steel product categories rising 0.56% week-on-week—though still about 7% below the level of the same period in 2019, indicating overall weakness. Looking ahead, constrained by dual‑control policies on energy consumption and environmental regulations, steel output is unlikely to expand significantly, whereas demand may benefit from a rebound in infrastructure spending. Coupled with declining inventories, steel prices are expected to stabilize. In the plain‑steel segment, we recommend Hualing Steel, a low‑valuation stock primarily focused on sheet products. For specialty steels, we highlight Fushun Special Steel, a key player in high‑temperature alloys; Yongjin Shares, a leading producer of cold‑rolled stainless steel; and CITIC Special Steel, which has demonstrated resilient performance across economic cycles.
Supply rose month-on-month, while demand improved slightly on a monthly basis, driving iron ore prices higher. This week, the price of imported 61.5% Fe PB fines increased by 4.01% from the previous week to RMB 700 per tonne. On the supply side, combined shipments from Australia and Brazil totaled approximately 24.62 million tonnes, up 8.13% month-on-month, with overall supply remaining ample. On the demand side, steel production remains constrained by environmental regulations; average daily hot metal output stands at 1.99 million tonnes, showing a modest month-on-month improvement but still down roughly 18% year-on-year. At the inventory front, port inventories were essentially unchanged this week, while overall stockpiles rose 0.18% month-on-month, remaining at historically high levels—27% above the same period in 2020 and 26% above 2019. With iron ore supply relatively stable, weak demand stemming from steel mill production cuts, and elevated inventory levels, iron ore prices are expected to remain subdued.
Risk Warning: With strengthened supply‑guarantee measures and tighter price‑control policies, coal prices continue to decline; meanwhile, weaker-than-expected downstream demand for steel has led to a pullback in steel prices.

The Central Economic Work Conference reveals a shift in the dual‑control policy on energy consumption: it will soon transition to a dual‑control system for carbon emissions.
The Central Economic Work Conference was held in Beijing from December 8 to 10. As noted by The Paper, compared with the 2020 conference’s emphasis on achieving carbon peak and carbon neutrality, this year’s meeting further clarified the pace of implementing the dual‑carbon goals and advancing the energy transition, making it the most authoritative indicator of next year’s energy policy direction.
The meeting pointed out that achieving carbon peaking and carbon neutrality is an intrinsic requirement for promoting high-quality development, and must be advanced with unwavering determination—though it cannot be accomplished overnight. We must adhere to the principles of national coordination, prioritizing conservation, dual-wheel drive, ensuring smooth domestic and international flows, and guarding against risks. The gradual phase-out of traditional energy sources must be underpinned by secure and reliable alternatives from new energy sources. Grounded in China’s basic national conditions—where coal remains dominant—we must strengthen the clean and efficient utilization of coal, enhance the capacity to absorb new energy, and promote an optimized mix of coal and new energy. We must vigorously advance research and development in green and low-carbon technologies. We need to implement scientific performance assessments: newly added renewable energy and energy used as raw materials should be excluded from total energy consumption controls, and conditions should be created to transition as soon as possible from dual control over energy consumption to dual control over both the total volume and intensity of carbon emissions. We must accelerate the establishment of incentive and constraint mechanisms for pollution reduction and carbon mitigation, while preventing simplistic, top-down cascading of targets. Ensuring energy supply requires leading enterprises, especially state-owned ones, to take the lead in safeguarding supply and stabilizing prices. We must deepen the energy revolution and speed up efforts to build a strong energy nation.
The energy sector accounts for more than 80% of the nation’s total carbon emissions, making it the primary battleground for achieving the dual carbon goals. Transitioning from conventional fossil fuels to new energy sources is a gradual process that cannot be accomplished overnight. In recent years, China’s new‑energy industry has achieved globally recognized milestones; however, the randomness, volatility, and intermittency of renewable power generation mean that integrating a high share of renewables into the traditional grid will drive up system costs and pose serious challenges to grid security and stability, necessitating the development of a new‑type power system. The Central Economic Work Conference underscored that the energy transition must be grounded in China’s basic national conditions—where coal remains dominant—advancing reform by first establishing the necessary foundations before dismantling the old, and promoting an optimized mix of coal and new energy. At this stage, decarbonization does not equate to a blanket phase‑out of coal.
“The inclusion of newly added renewable energy and energy used as raw materials in the total energy consumption control is not required” became the most closely watched statement in the new‑energy sector following the release of the official communiqué from the Central Economic Work Conference by Xinhua News Agency on the evening of December 10. Some observers argue that this measure represents a significant boost for the high‑energy‑intensive polysilicon and ingot‑pulling stages of the photovoltaic supply chain, implying that the production of PV raw materials will be exempt from overall energy‑consumption caps. However, several industry analysts told The Paper that this interpretation is inaccurate: “Energy used as ‘raw material’” refers to fossil fuels that are employed not as fuel but as feedstock—for example, in petrochemicals, coal‑to‑chemicals, and natural‑gas‑to‑chemicals—where such uses are no longer directly converted into energy units and thus excluded from the dual‑control system’s aggregate targets. This provision can be seen as an encouragement for the development of wind and solar power, but it does not mean that capacity expansion in the upstream, high‑energy‑intensive segments of the new‑energy value chain can proceed without limits.
According to a report by First Financial, Ning Jizhe, Deputy Director of the National Development and Reform Commission and Director of the National Bureau of Statistics, provided an explanation at the 2021–2022 China Economic Annual Conference held on December 11: “Raw-material energy refers to coal-to-chemicals and petrochemicals. Once these energy products are converted into raw materials, they do not release 100% of their carbon emissions into the atmosphere—typically only about 20%, with the remaining 80% being incorporated into the final product. By contrast, fuel‑based energy consumption results in full carbon dioxide emissions. Therefore, statistical accounting must treat these two categories separately, and regulatory authorities are required to assess them accordingly. These measures have been clearly stipulated.”
In fact, following power‑rationing and production halts in multiple provinces earlier this year, the National Development and Reform Commission issued, in mid‑September, the “Plan for Improving the Dual‑Control System of Energy Consumption Intensity and Total Volume,” which introduced adjustments to enhance flexibility in managing total energy consumption and to adopt differentiated approaches under the dual‑control framework. The plan stipulates that, based on each province (autonomous region, municipality directly under the central government)’s performance in integrating renewable energy into the grid and participating in green electricity certificate trading, the portion of renewable energy consumption exceeding the minimum mandatory target will be excluded from the region’s annual and five‑year plan assessments of total energy consumption. This new policy further underscores that newly added renewable energy is not counted toward the overall energy consumption cap, thereby significantly boosting local enthusiasm—particularly in areas facing stringent dual‑control targets—to develop renewable energy capacity.
A major highlight of the Central Economic Work Conference’s statement on the dual‑carbon initiative is the call to “create the conditions for an early transition from dual control of energy consumption to dual control of both total carbon emissions and emission intensity.” This marks a significant shift since the implementation of the dual‑control system for energy consumption and since the articulation of the dual‑carbon goals.
Transitioning gradually from dual control of energy consumption to dual control of carbon emissions will help ensure the achievement of the dual carbon goals with greater precision. In an energy system where fossil fuels still hold absolute dominance, energy consumption and carbon emissions are closely linked and highly correlated; however, as low‑carbon and clean energy sources increasingly become the mainstay, the dual‑control framework for energy consumption must be adjusted. Industry insiders believe that the introduction of the policy exempting newly added renewable energy and energy used as raw materials from total energy consumption control aligns with this adjustment to the dual‑control mechanism, aiming to exclude projects that either generate no carbon emissions or only minimal emissions from the scope of total energy consumption control prior to the implementation of a dual‑control regime for carbon emissions.
The Politburo meeting set the tone for next year’s property market, with the goal of achieving a “virtuous cycle” bolstering industry confidence.
On December 6, the Political Bureau of the CPC Central Committee convened a meeting to analyze and deliberate on economic work for 2022. The meeting made clear that it will support the commercial housing market in better meeting homebuyers’ reasonable housing needs, and promote the sound development and healthy cycle of the real estate sector.
At a time when the real estate sector is undergoing a profound adjustment and the housing market has entered a “deep winter,” the tone set by this meeting of the Political Bureau of the CPC Central Committee takes on even greater significance, offering crucial guidance for the industry’s future. First, the meeting emphasized “supporting” reasonable housing demand, sending a clear and positive signal to stabilize the property market. Moreover, the phrase “promoting a healthy cycle in the real estate sector” was put forward for the first time—reflecting a careful assessment of the current landscape and articulating a clear roadmap for the industry’s development next year.
“Support” conveys a positive signal, and credit policy may accelerate its shift.
According to Yan Yuejin, Director of Research at the E-House Institute Think Tank, the phrase “supporting the commercial housing market in better meeting homebuyers’ reasonable housing needs” sends a clear signal of backing for the real estate sector. Yan Yuejin noted: “The word ‘support’ itself carries a very strong signal, with a clearly defined direction, making this a major positive development for the real estate market. Since ‘support’ has been explicitly mentioned, subsequent policies—covering land, finance, home‑purchase, and tax‑and‑fee measures—should all follow suit. Thus, this represents a comprehensive policy statement that leans toward easing restrictions.”
“The reasonable housing demand here can be understood as comprising both essential‑need and upgrade‑type home‑buying demand, which is similar to the earlier statement by the China Banking and Insurance Regulatory Commission that first highlighted upgrade‑type housing demand,” Yan Yuejin added.
On December 3, the China Banking and Insurance Regulatory Commission (CBIRC) stated clearly at a press briefing that, taking into account the varying circumstances across regions, it would prioritize meeting mortgage demand for first homes and for housing upgrades, appropriately extend real estate development and M&A loans, and step up support for affordable rental housing, thereby fostering the stable and sound development of the real estate sector and market. In fact, since the second half of this year, the People’s Bank of China, the CBIRC, and other authorities have been among the first to issue public statements, sending positive signals to guide financial institutions in satisfying the reasonable credit needs of property developers and individual homebuyers, while preventing one-size-fits-all restrictions on housing-related lending—measures that directly support “reasonable housing demand.”
Moreover, the recent meeting of the CPC Central Politburo set the tone for next year’s property market with the word “support,” signaling that the industry may be emerging from its darkest period. According to Xu Xiaole, Chief Market Analyst at the Shell Research Institute, the Politburo’s call to “support the commercial housing market in better meeting homebuyers’ reasonable housing needs” marks a clear turning point in the previously stringent, contractionary regulatory policies. Coupled with this round of RRR cuts that injects liquidity, these measures are expected to deliver positive momentum to the real estate market.
“Under the previous round of regulatory measures, even some legitimate housing demand was suppressed. Among these, low‑priced, first‑time homebuyers were hit hardest: they face longer loan‑approval timelines and rising borrowing costs, leading to a more pronounced decline in transactions involving secondhand homes at the lower end of the price spectrum. Meanwhile, stringent policies that count both existing homes and outstanding mortgages have also curbed the release of demand for trade‑ups. Looking ahead, we expect to see stronger policy support for both first‑time home purchases and upgrade‑type home exchanges,” analyzed Xu Xiaole.
In addition, affordable housing, as one of the measures to address the housing shortage, will remain a key priority for the government next year. According to data released by the Ministry of Housing and Urban–Rural Development, this year, 40 cities nationwide currently building affordable rental housing plan to add 936,000 units. From January to September, construction had already commenced on 720,000 units, representing 76.9% of the annual target, with investment totaling RMB 77.5 billion. Based on these figures, the total investment in affordable rental housing across the country in 2021 is estimated to exceed RMB 100 billion.
For the first time, it has put forward the development goal of a “virtuous cycle” to guard against systemic risks in the industry.

In addition to supporting reasonable housing demand, this meeting also, for the first time, set a development goal of achieving a “virtuous cycle” in the real estate sector. Yan Yuejin stated: “In the past, real estate policies were primarily aimed at ‘stable and healthy development.’ This time, a new objective—namely, a virtuous cycle—has been added. This underscores that a healthy, self‑reinforcing cycle in the real estate market is crucial. A downturn can trigger defaults among property developers, which in turn impose risks on homebuyers; when buyers face such risks, they become hesitant to purchase, ultimately turning the market into stagnant waters. The introduction of the ‘virtuous cycle’ represents an important articulation of the real estate industry chain and carries a very strong signal.”
This year, the debt crisis at Evergrande and other property developers has triggered turmoil in the industry. On December 3, the China Banking and Insurance Regulatory Commission (CBIRC) and the People’s Bank of China once again addressed the Evergrande issue, reafofficeing that Evergrande’s debt risks will not have any adverse impact on the normal functioning of China’s banking and insurance sectors. At the same time, the CBIRC stated that, taking into account local conditions, it will prioritize meeting mortgage demand for first homes and housing upgrades, appropriately extend real estate development and M&A loans, and step up support for affordable rental housing, thereby fostering the stable and sound development of the real estate sector and market.
This statement is of paramount importance for property developers currently grappling with debt crises or liquidity constraints. On the one hand, their financing environment will improve, with development loans and M&A financing gradually becoming available; on the other hand, as mortgage lending is progressively liberalized, property offices will see a faster turnaround in cash collections, accelerating the restoration of their self‑sustaining financial health.
It is foreseeable that, as legitimate housing demand is met and the real estate market operates steadily, property developers’ operations will gradually return to a stable trajectory. Coupled with the concurrent implementation of regulatory measures such as the “three red lines,” the sector’s excesses will be progressively unwound. With developers proactively deleveraging, risks in the industry will be brought under control, paving the way for sound development and a virtuous cycle.

The General Office of the State Council has issued the “14th Five-Year Plan for Cold-Chain Logistics Development.”
According to the plan, by 2025, a cold-chain logistics network will be preliminarily established—linking production and sales areas, covering both urban and rural regions, and connecting domestic and international markets. A cold-chain logistics system tailored to China’s national conditions and industrial structure, and responsive to the needs of economic and social development, will be essentially in place. The capacity and efficiency for balancing seasonal supply and demand of agricultural products and supporting the cross-regional circulation of cold-chain goods will be significantly enhanced, thereby markedly strengthening its role in underpinning and safeguarding national economic and social development.
— Infrastructure has been further improved. Leveraging key agricultural production areas, major distribution hubs, and primary consumption markets, approximately 100 national backbone cold-chain logistics bases have been planned and built. In addition, a number of production‑to‑sales cold-chain aggregation and distribution centers are being developed to support the collection and distribution of agricultural products at their origins and to optimize the cold-chain product delivery network in destination markets. Focusing on the “first mile” at the place of origin and the “last mile” in urban areas, efforts are being made to address infrastructure gaps at both ends, thereby establishing a three-tier cold-chain logistics node network centered on national backbone cold-chain logistics bases and supported by production‑to‑sales cold-chain aggregation and distribution centers as well as end‑point cold-chain facilities. This network will help integrate cold-chain logistics more deeply into the modern logistics system of “corridors + hubs + networks,” enabling coordinated development and synergistic integration with the national logistics network.
— Quality of development has improved markedly. The scale and organizational efficiency of cold-chain logistics have increased substantially, while cost levels have been significantly reduced. Capabilities in refined, diversified, and high‑quality cold-chain logistics services have been substantially strengthened, giving rise to a group of leading integrated enterprises with strong international competitiveness. Technological and equipment standards in cold-chain logistics have advanced considerably, with the total number of cold storage facilities and refrigerated trucks maintaining steady, reasonable growth, and their regional distribution becoming more optimized and their functional profiles more comprehensive. Standardization, digitalization, and green practices in cold-chain logistics have all seen significant improvements. Compliance rates for temperature control across the cold chain have risen across the board, with the temperature compliance rate of cold storage facilities at national backbone cold-chain logistics hubs reaching world‑class levels. The rates of low‑temperature processing at origin for meat, fruits and vegetables, and aquatic products have reached 85%, 30%, and 85%, respectively, resulting in a marked reduction in post‑harvest losses of agricultural products and food waste in the supply chain.
— Regulatory standards have improved markedly. The legal and regulatory framework for cold-chain logistics has been further refined, with a supervisory mechanism featuring “government oversight, enterprise self‑management, industry self‑regulation, and public scrutiny” now largely in place. A monitoring and regulatory system covering the entire cold-chain logistics process has been preliminarily established. Full‑process tracking of refrigerated trucks, refrigerated containers, and key cold-chain products has been essentially achieved across the board. Meanwhile, the cold-chain traceability system for pharmaceuticals has been further enhanced, and a widely accessible, highly efficient, cost‑effective, and secure cold-chain logistics network for pharmaceuticals has taken shape.
Looking ahead to 2035, a modern cold-chain logistics system will be fully established, with infrastructure networks, technological equipment, and service quality reaching world‑class standards. Industry regulation and governance capabilities will be largely modernized, providing strong support for the development of a modernized economic system and effectively meeting the people’s growing aspirations for a better life.

Taxation TAXATATION
Many localities have disclosed progress in implementing targeted tax relief policies for the fourth quarter.
Small and medium-sized manufacturing enterprises have benefited from it.
According to a report by China National Radio’s “Global Finance” program, the tax‑deferral policy for small and medium‑sized manufacturing enterprises in the fourth quarter of this year was implemented by the tax authorities just four days after the State Council Executive Meeting made the decision. How is this swiftly rolled‑out measure to support and benefit businesses progressing, and what results has it delivered? Recently, Chongqing, Anhui, Zhejiang, and other regions have released their first‑month performance reports, showing clear benefits for small and medium‑sized manufacturing offices. Reporters have also learned that, with December’s filing period now underway, the tax‑deferral benefits for the second month of the fourth quarter are being realized as companies submit their returns.
Wang Daoshu, Deputy Director of the State Taxation Administration, stated that the temporary tax‑deferral policy is precisely targeted at small and medium‑sized manufacturing enterprises. “For manufacturing SMEs with annual sales below RMB 400 million (excluding RMB 400 million), a policy has been implemented to defer payment of certain taxes and fees for the fourth quarter. Under this policy, medium‑sized manufacturing enterprises may defer 50% of the applicable taxes and fees, while small and micro manufacturing enterprises may defer the full amount of such taxes and fees,” he said.
This tax deferral policy will take effect on November 1 and remain in force until the end of the January filing period next year, and is expected to provide approximately RMB 200 billion in tax relief to small and medium-sized manufacturing enterprises.
How did the tax‑deferral policy perform in its first month? Zhejiang, a major manufacturing province, reported that 182,000 small and medium‑sized manufacturing enterprises benefited from tax deferrals totaling RMB 5.73 billion, including RMB 3.06 billion for medium‑sized offices—benefiting 35,000 companies—and RMB 2.67 billion for micro and small enterprises, covering 147,000 businesses. Anhui, a key economic hub in central China, disclosed that tax authorities have processed tax deferrals amounting to RMB 1.51 billion for eligible enterprises. Meanwhile, Chongqing, a manufacturing powerhouse in the west, reported that small and medium‑sized manufacturing offices secured RMB 700 million in deferred payments of the “five taxes and two fees,” with RMB 420 million for medium‑sized enterprises and RMB 280 million for micro and small enterprises.
Lai Qin, the finance manager of a chemical equipment company in Chongqing, said: “We are a medium-sized manufacturing enterprise. This year, our business volume has been quite substantial, and our cash outlays have also been relatively high. Fortunately, the government introduced tax‑deferral policies. In November, we filed for a tax deferral of 210,000 yuan, and in December, we applied for another deferral totaling over 1.6 million yuan. These measures have helped us effectively ease the pressure on our cash flow. We plan to use the deferred taxes to purchase raw materials, ensuring the smooth operation of our business, and we also intend to allocate part of these funds as year‑end bonuses for our employees.”
Lin Ping, a responsible official at a precision cutting-tool manufacturer in Hangzhou, said: “Our company is a small and micro manufacturing enterprise with relatively tight finances. The local tax bureau promptly provided guidance on the new policy allowing deferred payment of taxes and fees. Over the past two months, we have deferred more than 320,000 yuan in taxes and levies, which has genuinely eased our financial burden.”

The effectiveness of tax relief measures underscores the precision of policy adjustments.
The implementation of the phased tax deferral measures has three key features that are particularly noteworthy. First, the policy is clearly targeted and decisively enacted, eschewing broad‑based stimulus in favor of tailored measures that address the specific needs of market entities. Second, it is implemented with precision and a focus on tangible results, enabling small and medium‑sized manufacturing enterprises to readily and accurately access the preferential policies. Third, the measures are coordinated across multiple policy channels, leveraging a comprehensive approach to deliver a powerful “combined punch.”
According to the latest statistics, the temporary tax deferral measures for small and medium-sized manufacturing enterprises, implemented starting in November, have yielded significant results. In just one month, deferred taxes and fees exceeded RMB 47.1 billion, swiftly and effectively easing the financial burden on businesses and helping them cope with market pressures, thereby demonstrating the effectiveness of macroeconomic regulation—particularly its precision and targeted approaches.
At present, various adverse factors continue to weigh on economic development, particularly on the production and operations of enterprises. Accordingly, macroeconomic regulation must adopt innovative approaches to address new circumstances and challenges, effectively help businesses overcome difficulties, and promote the steady and sound functioning of the economy. Based on the author’s observations, the implementation of temporary tax deferral measures has three key features that are particularly noteworthy.
First, the policy is clearly targeted and decisively implemented. Since the beginning of this year, China has already rolled out a series of tax and fee reduction measures. So why introduce yet another round of temporary tax deferral policies? The reason is that sporadic COVID‑19 outbreaks and rising commodity prices have created new challenges for businesses, with particularly severe impacts on small and medium-sized manufacturing enterprises. These offices are vital to the real economy, as well as to employment and people’s livelihoods. This latest policy is squarely focused on such SMEs in the manufacturing sector, addressing difficulties like soaring production costs by granting tax deferrals to boost corporate cash flow and help them cope with operational pressures.
The recently announced tax and fee reduction measures are not confined to universal‑benefit policies; instead, they exhibit a strong degree of targeted focus, aiming to support the stable operation of the industrial economy, the development of small, medium, and micro enterprises, and technological innovation. This underscores that macroeconomic regulation remains committed to avoiding broad‑based, one‑size‑fits‑all stimulus, instead tailoring policies to the specific needs of market entities. The temporary tax deferral measures, decided at the State Council Executive Meeting on October 27 and implemented starting November 1, were rolled out in just four days, highlighting a decisive and swift execution. This also demonstrates that macro policies must prioritize timeliness: in response to new developments and emerging challenges in economic performance, policymakers should make flexible, timely adjustments and fine‑tune their approaches as needed.
Second, ensure precise implementation and emphasize tangible results. With a large number of small, medium, and micro enterprises and relatively limited financial and accounting resources, how can we fully harness the benefits of policy measures within a short timeframe? The rollout of temporary tax payment deferral measures likewise underscores this precision. Tax authorities have tagged eligible taxpayers in the tax administration information system and issued timely reminders, enabling small, medium, and micro manufacturing enterprises to accurately access preferential policies. At the same time, through telephone calls, text messages, and the electronic tax bureau, they provide targeted, “one‑on‑one” guidance and reminders to eligible taxpayers. These meticulous, well‑tailored measures ensure that the policies are effectively implemented and deliver real outcomes.
Even the best policies require effective implementation; we must prioritize tangible results and genuinely enhance businesses’ sense of gain. Otherwise, such policies will amount to little more than window dressing. Since the onset of the COVID‑19 pandemic, the outcomes of China’s macroeconomic policy measures have already provided a clear answer.
Third, policy coordination and a comprehensive approach are being pursued. In fact, the tax and fee reduction measures targeting the manufacturing sector and small, medium, and micro enterprises go beyond temporary tax payment deferrals; they also include allowing offices to claim the enhanced R&D expense deduction for the first three quarters in advance, as well as implementing tax relief, refunds, and deferrals for coal-fired power and heating companies. These measures, operating on multiple fronts, help businesses reduce their burdens and better navigate current challenges.
Tax and fee reductions are implemented as a coordinated package, and similar policy synergy should be forged not only among various fiscal and tax measures but also across different macroeconomic policies. Fiscal, monetary, industrial, employment, and other macro policies must avoid acting in isolation or falling into the fallacy of composition; instead, they should emphasize policy coordination and complementary alignment to jointly help market entities—especially small, medium, and micro enterprises—overcome difficulties and foster a steady economic recovery.
Faced with new risks and challenges, macroeconomic policy bears a heavy responsibility. By continuously innovating our approaches and tools for regulation—strengthening range‑based, targeted, flexible, and precision‑oriented policies—we can ensure the steady and sustained development of China’s economy.

 
Inner Mongolia: Tax Incentives Strengthened, Boosting Enterprises’ Drive for Technological Innovation
Since the beginning of this year, a series of preferential policies on additional tax deductions for enterprise R&D expenses have been rolled out. Tax authorities at all levels in the Inner Mongolia Autonomous Region have streamlined tax‑filing procedures and enhanced taxpayer services, actively ensuring the effective implementation of these measures. As a result, enterprises are reaping the benefits of these policies earlier and to a greater extent, with tax incentives continuing to deliver tangible results.
Reaping the “policy bonus,” enterprises are brimming with confidence in R&D.
“Products are the crystallization of our core technologies. We have always regarded strengthening scientific and technological R&D as pivotal to our corporate development; however, the high cost of R&D has placed considerable financial pressure on us. In the third quarter of this year, by taking advantage of an advance‑year‑ahead deduction for R&D expenses, our company benefited from tax reductions and exemptions totaling over 300 million yuan—substantial support that has made a real difference,” said the finance director of Inner Mongolia Zhonghuan Xinxin Photovoltaic Materials Co., Ltd.
Ordos Shuangxin Chemical Industry Co., Ltd. is a company specializing in the production of organic chemical raw materials. According to its finance department, following the increase in the additional deduction rate for R&D expenses in manufacturing enterprises to 100%, the company has benefited from tax incentives totaling over RMB 10 million this year. The adjustment to the timing of the R&D expense additional deduction policy has eased the company’s financial pressures, enabling it to reinvest these policy benefits into the research and development of new products and technologies, thereby enhancing the competitiveness of its offerings.
In Hinggan League, Ulanhot Sino-Mongolian Pharmaceutical Co., Ltd., the earliest Mongolian medicine manufacturer established in the Inner Mongolia Autonomous Region, has once again benefited from a significant policy boost. According to the company’s management, technological and product innovation in the pharmaceutical sector is time‑intensive, involves complex value chains, and entails substantial costs, requiring considerable financial and temporal investments. With the continuous strengthening of preferential policies on additional tax deductions for R&D expenses, the company’s tax burden has been steadily reduced.
Streamlined Tax Filing Process: Easier Corporate Reporting
To further facilitate tax compliance for taxpayers, the tax authorities of the Inner Mongolia Autonomous Region have made streamlining procedures and continuously deepening the “delegation, regulation, and service” reform key measures to support technological innovation and comprehensively optimize the business environment. They are rigorously implementing the preferential policy handling approach for corporate income tax—“self-assessment, declaration-based enjoyment, and retention of relevant documentation for record‑keeping.” At the same time, they have streamlined and simplified the auxiliary accounting system for R&D expenses, reduced the complexity of completion, and concurrently refined the calculation methods for limits on other related expenses, thereby shortening the time required for filing.
“The 2021 version of the R&D expense auxiliary ledger has consolidated four types of auxiliary ledger formats into a single format, consisting of ‘one auxiliary ledger plus one summary table.’ When completing the form, enterprises are required only to report the aggregate amounts for six major categories of expenses, including personnel wages, and are no longer required to provide detailed itemized breakdowns. At the same time, certain accounting‑related entries have been removed to fully reflect adjustments in tax policies, and new lines have been added to account for commissioned overseas R&D activities,” explained a staff member from the Taxpayer Services Section of the E’tuoke Economic Development Zone Tax Bureau of the State Taxation Administration. “By reducing the number of auxiliary ledger formats, this change makes it easier for taxpayers to accurately compile and account for their expenses.”
“Our company has a large number of R&D projects, and when completing the supplementary ledger, we have to account for the intricate data reconciliation between the supplementary ledger and the summary table. Even a minor oversight can require us to start over. With the streamlined version of the supplementary ledger, the calculation method has been adjusted, significantly easing our workload,” said the financial director of Zhalainuoer Coal Industry Co., Ltd., giving a thumbs-up to the simplified tax filing process.
Premium Tax Services: Policy Benefits Delivered Directly and Enjoyed Quickly
To ensure the timely and effective implementation of policies, the Inner Mongolia tax system has focused on targeted guidance and meticulous collaboration, coordinating publicity resources and making full use of online channels—including the official website of the Inner Mongolia Autonomous Region Tax Service Bureau, the electronic tax bureau, social media platforms (WeChat and Weibo), and the “Two Micros and One Client” app—as well as in‑person tax service halls, to simultaneously promote policy information. The system continues to refine its services, ensuring that the benefits of these policies are delivered swiftly and directly to taxpayers.
In Baotou, tax officials have launched “one‑on‑one” services tailored to key industries, implementing tiered and categorized management based on the specific type of enterprise and maintaining electronic records to provide a comprehensive, objective, and accurate overview of each company’s tax and fee‑relief benefits. In Chifeng, tax authorities are actively leveraging “non‑contact” channels for tax filing and payment, offering targeted “point‑to‑point” support and ensuring that enterprises receive precise guidance on the policy allowing additional deductions for R&D expenses incurred in developing new technologies, products, and processes, thereby helping them fully benefit from all applicable incentives.
The Ulanqab Municipal Tax Service, leveraging tax‑related big data, has prioritized targeted screening and comprehensive data collection to accurately identify eligible enterprises, thereby ensuring that policies are fully implemented and all eligible benefits are universally accessible, thus providing robust tax‑driven support for enterprises’ technological innovation.

Sichuan: Green Tax System Boosts the Development of Low-Carbon Advantage Industries
Market entities are a vital force driving economic and social development; when they remain vibrant, economic growth gains a robust source of momentum. In response to new developments and challenges in the economy, the tax authorities of Henan Province have fully leveraged their fiscal and tax functions, continuously stepping up efforts to implement preferential tax and fee policies and streamline tax filing and payment services. This has ensured that businesses and individuals can fully benefit from tax incentives, bolstered their confidence, and provided strong support for sustained, steady economic growth.
“Blood Transfusion” to Boost “Hematopoiesis”: Helping Enterprises Unleash Their Vitality
In early winter, inside the production workshops of Henan Jindan Lactic Acid Technology Co., Ltd., 12 production lines are running at full capacity, creating a bustling yet orderly atmosphere throughout the facility. As a national high-tech enterprise, the company boasts an annual production capacity of 100,000 tons of lactic acid and related products.
“This year, rising raw-material prices have placed considerable pressure on production. Fortunately, the favorable tax policies have been a tremendous boost, injecting fresh vitality into our business,” said the company’s general manager. “The additional deduction rate for R&D expenses of manufacturing offices has been increased from 75% to 100%, and companies are now permitted to claim this benefit in advance for the first three quarters—offering a double advantage. As a result, we’ve realized nearly RMB 5 million in policy‑driven benefits, further strengthening our confidence in R&D and innovation.”
“Stepping Up” to “Speed Up”: Helping Businesses Overcome Difficulties and Alleviate Challenges
Small, medium, and micro-sized manufacturing enterprises are a vital force in ensuring employment, safeguarding people’s livelihoods, and promoting development. To effectively alleviate these companies’ financial pressures and operational challenges, in October this year, the State Taxation Administration and the Ministry of Finance jointly issued the “Announcement on Matters Relating to the Deferral of Payment of Certain Taxes and Fees for Small, Medium, and Micro-Sized Manufacturing Enterprises in the Fourth Quarter of 2021,” which clearly sets out the relevant provisions for deferring such payments.
Luoyang Yuanhai New Materials Co., Ltd. is among the enterprises identified in the announcement as eligible for the deferred payment policy. As a company engaged in the production and sale of refractory materials and the manufacturing and marketing of non-metallic mineral products, it has seen its operating costs rise sharply due to factors such as soaring raw material prices.
Following big‑data screening and precise matching, the Luoyang Municipal Tax Authority promptly sent deferral reminders to the company’s finance staff via the electronic tax bureau. Additionally, the chief tax service officer organized “one‑on‑one” and face‑to‑face guidance through communication channels such as the tax‑enterprise WeChat group and the “Yu Shuitong” platform, helping the company address its urgent financial needs. “We expect to defer and pay nearly RMB 200,000 in taxes, which will significantly ease our cash‑flow pressures,” said the company’s general manager with satisfaction.
“Temperature” Rises, “Heat” Grows—Empowering Businesses and Bringing Warmth
Winter heating affects countless households and directly impacts people’s comfort, making it a vital public‑service initiative that warms both hearts and homes. The Henan tax authorities have made the effective implementation of tax measures to alleviate the difficulties faced by coal‑power and heating enterprises a top priority, ensuring these measures are rigorously and meticulously put into practice.
Zhengzhou Yuzhong Energy Co., Ltd., located in Xinmi City, Zhengzhou, serves as the primary heat source for residential heating in both Zhengzhou and Xinmi. As of this winter’s heating season, the company has provided heat to an area totaling 40 million square meters. According to the company’s manager, “The tax policies designed to alleviate difficulties have acted like a warm current, providing strong support as we navigate the current challenges and contribute to ensuring stable energy supplies.”
According to reports, the tax authorities in Xinmi City have conducted a door-to-door assessment of the production and operations of coal‑, power‑, and heating‑related enterprises within their jurisdiction. They have meticulously compiled a comprehensive list of tax and fee preferential policies, provided one‑on‑one guidance on both industry‑specific and universally applicable measures, and promptly reminded and notified businesses to apply for tax payment deferrals. The authorities offer end-to‑end support—covering policy outreach, advisory services, and implementation—to ensure full coverage of policy briefings and robust enforcement.
“We submitted an application to defer tax payments totaling 4.17 million yuan in accordance with the relevant policies, and the tax authorities approved it promptly, helping our business operations gradually improve,” said Manager Fang. “Tax‑benefit policies are truly supportive; we will do everything possible to ensure reliable heating and electricity supply, bringing warmth and light to households across the board.”
 
Litigation & Arbitration
Supreme People’s Court: Protect Geographical Indications in Accordance with the Law and Severely Punish Malicious Litigation
　Recently, disputes over the protection of geographical indications—such as “Tongguan Roujiamo”—have drawn widespread public attention. A spokesperson from the Third Civil Division of the Supreme People’s Court granted an exclusive interview to reporters, addressing questions related to the judicial protection of geographical indications.
Question: After obtaining a registered trademark, can you prohibit others from using place names contained in the trademark?
Answer: Some trademarks incorporate geographical names, which often possess distinct commercial value. Under the Trademark Law, even if a trademark has been registered and the registrant has obtained exclusive rights, the registrant may not prohibit others from making legitimate use of the geographical name contained in the registered trademark. If the registrant brings a lawsuit before the people’s court on the grounds that another party has made such legitimate use, the people’s court shall, in accordance with the law, dismiss the claim.
Question: May the registrant of a geographical indication collective trademark freely grant licenses to, or prohibit others from using, the trademark?
Answer: Within the geographical area indicated by a geographical indication and subject to the conditions for its use, any entity may lawfully and legitimately use the geographical indication even if it does not apply to join a collective, association, or other organization. However, entities that do not meet the conditions for using the geographical indication or operate outside the designated geographical area may not obtain authorization to use the collective trademark of the geographical indication through methods such as trademark licensing, franchising, or membership. Furthermore, any practice by relevant organizations—acting as the trademark registrant—of collecting so‑called “membership fees” or similar charges through litigation is inconsistent with the provisions of the Trademark Law and will not be upheld by the people’s courts in accordance with the law.
Question: May industry associations or relevant organizations, on the basis of their registered geographical indication collective trademarks, bring a lawsuit seeking payment of membership fees from others?
Answer: Geographical indications are public resources of a specific region. The registrant of a collective trademark for a geographical indication must be a local non‑profit organization, association, or other entity, and must act in accordance with the law, comply with relevant regulations, and maintain self‑discipline. When enforcing its rights, it shall exercise its litigation rights in a lawful and reasonable manner. Any association or organization that exploits a collective trademark for a geographical indication to collect franchise fees or similar charges lacks legal basis under trademark law; consequently, if such entities bring lawsuits before the people’s courts seeking to recover these fees, the courts will not uphold their claims in accordance with the law.
Question: At present, there still exist “framing” lawsuits—where parties knowingly lack a legitimate legal basis, seek illicit gains, infringe upon the lawful rights and interests of others, or harm the legitimate business interests of others. What measures have the people’s courts taken to address this issue?
A: Honest litigation is an important component of building an integrity‑based society. In line with the goals and requirements for developing China into a strong intellectual property nation, the people’s courts have adopted a series of effective measures to reduce the costs of protecting rights, increase the consequences of infringement, shorten litigation timelines, and facilitate evidence‑gathering by the parties, thereby effectively safeguarding the legitimate rights and interests of right holders. At the same time, with a clear stance and robust measures, the courts have resolutely curbed malicious litigation, issuing a series of judicial interpretations aimed at preventing both false and malicious lawsuits. For example, in June this year, the Supreme People’s Court issued the “Reply Concerning the Issue of Defendants Seeking Compensation for Reasonable Expenses on the Ground That Plaintiffs Have Abused Their Rights in Intellectual Property Infringement Litigation,” which provides that, where a plaintiff brings a lawsuit in bad faith, the court shall uphold the defendant’s lawful request for compensation for reasonable expenses incurred as a result of the litigation, including attorney fees, travel expenses, and accommodation and meal costs. Furthermore, depending on the severity of the circumstances, the people’s courts may impose fines or detention on parties engaging in malicious litigation; if their actions constitute a crime, they shall be held criminally liable in accordance with the law. In short, we must tighten the institutional framework so that those who engage in malicious litigation end up losing more than they gain.
Going forward, the Supreme People’s Court will thoroughly study and implement Xi Jinping’s Thought on the Rule of Law, guiding courts nationwide to put the people’s interests first and ensure fair and reasonable protection. It will both rigorously safeguard intellectual property rights and strike a balance between protecting the public interest and fostering innovation, thereby effectively upholding the legitimate rights and interests of the general public and small, medium, and micro enterprises.

Ministry of Justice: Strengthening Oversight of Former Judicial and Prosecutorial Personnel Engaged in Legal Practice at Law Offices
The Ministry of Justice has informed reporters that it is steadily advancing the development of an information database on former judicial and procuratorial personnel practicing at law offices, and has built and launched a nationwide verification system for monitoring the practice of former court and procuratorial staff at law offices, as well as the practice of close relatives of court and procuratorial personnel at such offices (hereinafter referred to as the “Verification System”). At present, the first phase of the Verification System has been largely completed, and a “warning” label has been applied to 1,785 individuals who are still within their professional restriction period, with ongoing tracking and management of their professional activities.
The “Verification System” is designed to establish and refine a “two-way early-warning” mechanism for monitoring former judicial and procuratorial personnel who illegally practice law, as well as a verification mechanism for the employment of close relatives of judicial and procuratorial staff at law offices. It provides robust technical support to courts, procuratorates, and the judicial administration system, strengthening oversight over the post‑employment activities of former judicial and procuratorial personnel at law offices and verifying the employment of their close relatives in such offices, thereby effectively preventing conflicts of interest and illicit transfers of benefits, and safeguarding judicial integrity and impartiality.

The Supreme People’s Procuratorate has issued the “Regulations on Synchronous Audio and Video Recording of Hearings in Cases Involving Plea Bargaining and Acceptance of Punishment by People’s Procuratorates.”
Recently, the Supreme People’s Procuratorate issued the “Regulations on Synchronous Audio and Video Recording of Hearings in Cases Involving Plea Bargaining and Guilty Pleas” (hereinafter referred to as the “Synchronous Recording Regulations”), which sets forth clear standards for the procuratorial organs’ practice of conducting synchronous audio and video recording during hearings in such cases.
According to the introduction, this regulation was promulgated to thoroughly implement the deliberative opinions adopted at the 22nd Meeting of the Standing Committee of the 13th National People’s Congress on the “Report of the Supreme People’s Procuratorate on the Application of the Plea Bargaining and Leniency System by the People’s Procuratorates,” and in conjunction with the key tasks of establishing and improving institutional mechanisms under the nationwide education and rectification campaign for political and legal personnel, so as to further advance the implementation of the plea bargaining and leniency system, standardize the lawful handling of such cases, fully safeguard the procedural rights of criminal suspects, defendants, and their defense counsel, and enhance the quality and effectiveness of case handling.
The “Regulations on Simultaneous Audio and Video Recording” comprise 16 articles, clearly defining the objectives, scope of application, recording content, participating parties, as well as the rules for the custody and use of audio‑video recordings in cases involving guilty pleas and acceptance of punishment. The Regulations stipulate that, when handling such cases, the People’s Procuratorate shall conduct simultaneous audio and video recording of activities in which prosecutors solicit the views of criminal suspects, defendants, defense counsel, or on‑duty lawyers—regarding matters such as sentencing recommendations and procedural applications—and have them sign written statements of commitment.
An official from the First Procuratorial Office of the Supreme People’s Procuratorate stated that the implementation of simultaneous audio and video recording during the process of soliciting opinions in cases involving guilty pleas and acceptance of punishment is primarily aimed at ensuring that the views of criminal suspects, defendants, their defense counsel, or on-duty lawyers are heard in a substantive and standardized manner. This measure seeks to further enhance the quality and efficiency of handling such cases and to prevent irregularities, formalism, or even coercion in the consultation process. The issuance of the “Regulations on Simultaneous Recording” represents an important step for the procuratorial organs to proactively standardize and constrain their performance of duties, thereby advancing the development of mechanisms for checks and balances in law enforcement and judicial proceedings. It also constitutes a significant achievement in actively addressing the concerns of deputies to the National People’s Congress and members of the Chinese People’s Political Consultative Conference, deepening the education and rectification campaign within the procuratorial ranks, and steadily promoting institutionalization and rule‑making.

Public security organs have solved more than 290 long-standing child trafficking cases, recovering a total of 8,307 children who had gone missing or been abducted over the years.
On December 6, the Ministry of Public Security organized a family-reunion event under the “Reunion” initiative in Shenzhen, Guangdong Province, bringing together three families who had been separated for more than a decade.
According to reports, in recent days, to further advance the “Reunion” campaign, the Ministry of Public Security coordinated and directed public security organs in Guangdong, Shandong, and Hubei provinces to successfully solve three child‑trafficking cases under ministerial supervision, apprehend nine suspects, and consecutively locate Sun, who had been abducted 14 years ago, Fu Motao, who had been abducted 17 years ago, and Yang Didie, who had been abducted 17 years ago.
According to reports, the Ministry of Public Security attaches great importance to locating missing and abducted children. It has dispatched more than 170 forensic experts from across the country to conduct a large-scale, coordinated comparison effort and organized public security organs nationwide to hold over 2,600 family-reunion events. As of November 30, public security authorities have successfully solved more than 290 long‑standing child trafficking cases, apprehended over 690 suspects, and recovered a total of 8,307 children who had gone missing or been abducted over the years.
An official from the Ministry of Public Security stated that as long as a child‑trafficking case remains unsolved and a missing or abducted child has not been found, public security organs will spare no effort to track them down. The authorities will maintain an unwavering, high‑intensity crackdown on all forms of trafficking crimes, further strengthen coordination and cooperation with relevant departments, innovate investigative strategies and operational methods, and refine long‑term mechanisms, thereby continuously advancing the “Reunion” campaign and effectively safeguarding the legitimate rights and interests of children and women.

Efforts to advance international efforts to pursue fugitives and recover illicit proceeds are beginning to demonstrate their practical value.
December 9 marks International Anti-Corruption Day. This morning, the Supreme People’s Procuratorate held a press conference on “Actively Applying the Procedure for Confiscation of Illegally Obtained Proceeds to Promote International Pursuit and Recovery of Fugitives and Assets in Anti-Corruption Cases,” releasing the 32nd batch of guiding cases centered on the application of the confiscation procedure to official‑duty crimes, and providing an update on the procuratorial organs’ work in handling related official‑duty criminal cases.
Applying the special procedure for confiscating illegal proceeds in accordance with the law to criminal suspects and defendants who have absconded or died, and submitting applications to the courts for such confiscation, is an important function conferred upon the procuratorial organs by the Criminal Procedure Law. At a press conference, reporters learned that the Supreme People’s Procuratorate has actively promoted the lawful application of the confiscation‑of‑illegal‑proceeds procedure. From January 2013 to January 2017, the procuratorial organs accepted a total of 40 cases involving 43 individuals accused of official crimes under this procedure; from January 2017 to the present, they have accepted 93 cases involving 95 individuals. The number of cases handled under this procedure has increased markedly, and the practical value of the confiscation‑of‑illegal‑proceeds mechanism is beginning to emerge.
To strengthen the application of the procedure for confiscating illegal proceeds in cases of official misconduct, better guide local authorities in thoroughly studying and resolving issues that arise during its implementation, and further enhance the quality and efficiency of case handling, the Supreme People’s Procuratorate has released the thirty-second batch of guiding cases, which include: the case of Bai Jing involving the confiscation of illegally obtained proceeds from embezzlement; the case of Peng Xufeng for accepting bribes, and the case of Jia Siyu for accepting bribes and laundering illicit funds, both involving the confiscation of illegal proceeds; the case of Huang Yanlan concerning the confiscation of illegally obtained proceeds from embezzlement; and the case of Ren Runhou involving the confiscation of illegally obtained proceeds from accepting bribes and having unexplained sources of massive wealth.
These cases not only highlight the procuratorial organs’ efforts to leverage the functions of special procedures and advance international cooperation in fugitive apprehension and asset recovery, but also demonstrate their ongoing work to refine supporting systems and mechanisms, strengthen interagency coordination, and ensure the lawful application of procedures for the confiscation of illicit proceeds. The guiding cases further address how the procuratorial organs, while applying special procedures, can fully safeguard the legitimate rights and interests of criminal suspects, defendants, their close relatives, and other stakeholders, thereby ensuring that cases are handled objectively and impartially.
The head of the Third Procuratorial Office of the Supreme People’s Procuratorate stated that the procuratorial organs have fully implemented Xi Jinping’s Thought on the Rule of Law, fully leveraged their functions and powers, and, under the strong leadership of the CPC Central Committee and the coordinated guidance of the Central Commission for Discipline Inspection and the National Supervisory Commission, worked closely with supervisory authorities, the courts, and other member units of the coordination mechanism for fugitive‑tracking and asset‑recovery efforts. In doing so, they have made a positive contribution to ensuring the steady advancement and achieving tangible results in international anti-corruption efforts to pursue fugitives and recover illicit proceeds. As a special procedure, the confiscation of illegal gains provides robust safeguards for anti-corruption work and serves as a powerful legal tool in this endeavor; the procuratorial organs attach great importance to it. Although significant cases such as those involving Bai Jing and Peng Xufeng have been handled with favorable outcomes, the overall number of cases subject to this procedure remains relatively small, leaving considerable room to further realize its full potential. The Supreme People’s Procuratorate is currently guiding procuratorial organs at all levels to strengthen coordination and cooperation with supervisory and judicial authorities, actively promote the application of this procedure, and more fully harness its value and role in the fight against corruption.
At the press conference, the head of the Third Procuratorial Office of the Supreme People’s Procuratorate also briefed the media on the procuratorial organs’ work in handling cases of official misconduct. According to the reporter, from January 2018 to November 2021, procuratorial organs nationwide received a total of 74,869 cases involving 89,650 individuals accused of official crimes; public prosecution was instituted in 58,122 cases involving 73,488 individuals, including public prosecution against 82 former provincial- or ministerial-level officials, thereby consolidating and expanding the achievements of the anti-corruption campaign. In carrying out this work, emphasis was placed on strengthening coordination between supervisory and procuratorial authorities, upholding the principle of “mutual cooperation and mutual checks and balances,” and proactively supporting economic and social development. Efforts were sustained in areas such as poverty alleviation, judicial protection of the private sector, safeguarding scientific and technological innovation, and maintaining financial security.

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