JC Master Legal News Issue 1000

Key Takeaways for This Issue

The China Securities Regulatory Commission is soliciting public comments on the regulatory rules pertaining to overseas listings.
To promote the sound and compliant development of enterprises’ access to overseas capital markets and to support their lawful and regulatory‑compliant listings abroad, in accordance with the Securities Law of the People’s Republic of China, the China Securities Regulatory Commission, together with relevant departments of the State Council, has put forward revision proposals to the “Special Provisions of the State Council on the Overseas Raising of Shares and Listing by Joint‑Stock Companies” (State Council Order No. 160). On this basis, it has drafted the “Regulations of the State Council on the Administration of the Issuance of Securities and Listing Abroad by Domestic Enterprises (Draft for Public Comment)” (hereinafter referred to as the “Administrative Regulations”), and concurrently prepared the “Measures for the Filing and Registration of the Issuance of Securities and Listing Abroad by Domestic Enterprises (Draft for Public Comment)” (hereinafter referred to as the “Filing Measures”) as ancillary rules to the Administrative Regulations. These documents are now being made public for public comment.
Real estate regulation policies are not only a “rein” but also an opportunity.
　The real estate sector is a vital pillar of the national economy and closely intertwined with everyday life, making its policy direction a subject of widespread public attention. At the Central Economic Work Conference held in early December, the principle of “promoting a healthy cycle and sound development of the real estate industry” was put forward. Recently, Minister of Housing and Urban–Rural Development Wang Menghui provided further clarification on how to implement this principle in a media interview.
Phased tax relief measures are effectively supporting the development of small, medium, and micro enterprises.
At the end of October, the state introduced temporary tax‑deferral measures to address the most pressing, direct, and practical cash‑flow challenges facing businesses, thereby easing their financial constraints and operational pressures and helping the industrial economy maintain stable performance. Nearly two months after these measures were implemented, taxpayers have widely reported a tangible reduction in tax and fee burdens, a noticeable alleviation of liquidity pressures, and a clear strengthening of their capacity for sustained growth.

During deliberations on the draft amendment to the Company Law, members of the Standing Committee of the National People’s Congress proposed refining the provisions related to corporate social responsibility.
During deliberations, members of the Standing Committee of the National People’s Congress generally agreed that the draft amendment adopts a problem‑oriented approach, is grounded in China’s national conditions, and refines relevant institutional provisions. This will help to improve the modern enterprise system with Chinese characteristics, continuously optimize the business environment, strengthen the property rights protection regime, promote the sound development of the capital market, and advance high‑quality economic growth. At the same time, with respect to provisions on the independent director system and corporate social responsibility, participants put forward corresponding amendments and suggestions.

Finance & Capital Markets
The China Securities Regulatory Commission is soliciting public comments on the regulatory rules pertaining to overseas listings.

To promote the sound and compliant development of enterprises’ access to overseas capital markets and to support their lawful and regulatory‑compliant listings abroad, in accordance with the Securities Law of the People’s Republic of China, the China Securities Regulatory Commission, together with relevant departments of the State Council, has put forward revision proposals to the “Special Provisions of the State Council on the Overseas Raising of Shares and Listing by Joint‑Stock Companies” (State Council Order No. 160). On this basis, it has drafted the “Regulations of the State Council on the Administration of the Issuance of Securities and Listing Abroad by Domestic Enterprises (Draft for Public Comment)” (hereinafter referred to as the “Administrative Regulations”), and concurrently prepared the “Measures for the Filing and Registration of the Issuance of Securities and Listing Abroad by Domestic Enterprises (Draft for Public Comment)” (hereinafter referred to as the “Filing Measures”) as ancillary rules to the Administrative Regulations. These documents are now being made public for public comment.
The “Administrative Provisions” comprise five chapters and twenty-eight articles, with the following key provisions: First, to refine the regulatory framework, unified filing-based oversight is applied to both direct and indirect overseas listings by domestic enterprises. Second, to strengthen regulatory coordination, a coordination mechanism for overseeing domestic enterprises’ overseas listings has been established, enhancing inter‑agency collaboration; seamless alignment is ensured between filing procedures and mechanisms such as security reviews; and arrangements for cross‑border securities regulatory cooperation have been improved, including the establishment of mechanisms for sharing filing‑related information. Third, legal liabilities are clarified, specifying the legal consequences for violations such as failure to comply with filing requirements or submission of falsified filing materials, thereby raising the cost of non‑compliance. Fourth, the regulatory regime has been made more inclusive: in light of the capital market’s ongoing opening-up and the needs of enterprise development, it is stipulated that, in cases such as equity‑based incentive schemes, direct overseas issuances may be directed to specific domestic entities; further measures have been introduced to facilitate full circulation of shares; and restrictions on the currencies used for raising capital and distributing dividends overseas have been relaxed, thereby meeting enterprises’ demand for raising RMB funds abroad.
The CSRC’s “Filing Measures” comprise twenty-four articles, with the following key provisions: First, it clarifies the scope of application and the relevant criteria for filing-based administration. Second, it specifies the entities required to file and the filing procedures. Third, it sets forth reporting requirements for material matters, thereby strengthening ongoing and post‑event supervision. Fourth, it delineates the filing requirements for overseas securities offices.
The country’s commitment to expanding the opening-up of its capital markets will remain unchanged, as will its stance of supporting enterprises in listing overseas in compliance with laws and regulations and making effective use of both domestic and international resources. The purpose of regulation is to foster development. We welcome valuable input from all sectors of society on the rules governing overseas listings. The China Securities Regulatory Commission will, based on public feedback, further revise and refine these rules and, in coordination with relevant departments, advance their prompt promulgation and implementation in accordance with legislative procedures.

The China Banking and Insurance Regulatory Commission has issued the “Notice on Streamlining Regulatory Reporting Requirements for Insurance Asset Management Companies.”
To further implement the State Council’s “delegation, regulation, and service” reform requirements, focus on risk-based supervision, and enhance the quality and effectiveness of regulatory oversight, the China Banking and Insurance Regulatory Commission recently issued the “Notice on Streamlining Regulatory Reporting Requirements for Insurance Asset Management Companies.”
The Notice comprises four provisions that specify the cancellation, consolidation, and integrated submission deadlines for regulatory reporting requirements, thereby further standardizing the reporting practices of insurance asset management companies. First, 21 regulatory reports have been abolished. In light of developments in the insurance asset management industry and evolving market conditions, reports already submitted through the regulatory information system have been eliminated, reinforcing institutional accountability for operational and managerial oversight and enhancing the effectiveness of institutional and risk-based supervision. Second, six regulatory reports have been consolidated into three, merging similar items to avoid redundant submissions. Third, the submission deadlines for three categories of reports have been harmonized. With a focus on institutional supervision, the deadlines for submitting resolutions of shareholders’ meetings, boards of directors, and supervisory boards have been unified into quarterly, centralized reporting, reducing the frequency of submissions and improving the systematic nature of reporting. Fourth, regulatory reporting practices have been further standardized. Insurance asset management companies are required to submit regulatory reports strictly in accordance with applicable regulations, eliminating late, inaccurate, or incomplete submissions and effectively elevating the quality of reporting.
The issuance and implementation of the Notice represent an important measure by the China Banking and Insurance Regulatory Commission to carry out the CPC Central Committee and the State Council’s directives on deepening the “delegation, regulation, and service” reform. It will help leverage the advantages of information technology, focus on risk-based and institution‑based supervision, reduce unnecessary reporting burdens on market entities, enhance the quality and efficiency of regulatory oversight, and safeguard against risks associated with relevant business activities.

SSE: The minimum investment threshold for individual investors participating in the Chinese Depositary Receipt program has been lowered to no less than RMB 500,000.
The Shanghai Stock Exchange has issued a public consultation on the “Provisional Measures for the Listing and Trading of Depositary Receipts under the Interconnectivity Arrangement between the Shanghai Stock Exchange and Overseas Securities Exchanges” and the accompanying business guidelines. Under the revised measures, the suitability criteria for individual investors participating in the Chinese Depositary Receipt program have been adjusted: the average daily balance in the securities account and funds account over the 20 trading days immediately preceding the application for access has been lowered from no less than RMB 3 million to no less than RMB 500,000, and investors are required to have engaged in securities trading for at least 24 months. All other requirements remain unchanged. The full text of the notice is as follows:
Optimizing interconnectivity mechanisms to support the institutionalized two-way opening-up of the capital market.
Recently, the China Securities Regulatory Commission (CSRC) has launched a public consultation on the “Regulatory Provisions on the Interconnectivity of Depositary Receipts between Domestic and Overseas Securities Exchanges” (hereinafter referred to as the “Regulatory Provisions”), marking the imminent entry of the depositary receipt business—initiated under the Shanghai–London Stock Connect—into a new phase of development. To ensure thorough preparation for all related operations and the smooth launch of the initiative, the Shanghai Stock Exchange has formulated supporting business rules in accordance with the Regulatory Provisions and is now soliciting public comments effective immediately.
The accompanying business rules currently open for public comment comprise “one Measures” and “three Guidelines,” namely the “Provisional Measures of the Shanghai Stock Exchange on the Listing and Trading of Interconnectivity Depositary Receipts (Draft for Comments),” the “Shanghai Stock Exchange Guidelines on the Pre‑Listing Review of China Depositary Receipts under the Interconnectivity Scheme (Draft for Comments),” the “Shanghai Stock Exchange Guidelines on the Cross‑Border Conversion Business of China Depositary Receipts under the Interconnectivity Scheme (Draft for Comments),” and the “Shanghai Stock Exchange Guidelines on the Market‑Making Business of China Depositary Receipts under the Interconnectivity Scheme (Draft for Comments).” These supporting rules make corresponding adjustments to the listing requirements for China Depositary Receipts, the pre‑listing review procedures following the introduction of financing functions, the trading and cross‑border conversion mechanisms, ongoing regulatory requirements, investor suitability criteria, as well as certain provisions pertaining to Global Depositary Receipts.
Over the years, the Shanghai Stock Exchange has tirelessly explored and refined mechanisms for connecting domestic and international securities markets. Since the launch of the Shanghai–London Stock Connect, four SSE‑listed companies—Huatai Securities, China Taiping Insurance, Yangtze Power, and SDIC Power—have successfully issued global depository receipts on the London Stock Exchange, raising a total of US$5.84 billion and playing a positive role in broadening two‑way financing channels and supporting the development of the real economy. Meanwhile, as the Chinese Depositary Receipt program has advanced, the SSE has engaged extensively with international companies and held in-depth discussions with domestic and overseas market institutions on facilitating the issuance and listing of several key prospective issuers, thereby accumulating valuable experience. Going forward, the SSE will continue to implement the unified deployment of the China Securities Regulatory Commission, steadfastly advance its internationalization strategy, further deepen and refine cross‑border cooperation and connectivity mechanisms, enhance its capacity for global resource allocation, and more effectively support the capital market’s institutionalized two‑way opening-up.
Notice on Soliciting Public Comments on the Provisional Measures for the Listing and Trading of Depositary Receipts under the Interconnectivity Arrangement between the Shanghai Stock Exchange and Overseas Securities Exchanges, as well as the Related Business Guidelines
Shanghai Stock Exchange Announcement No. 38 of 2021
To optimize the mutual market access mechanism for depositary receipts and to more effectively support the capital market’s institutional two-way opening-up, in alignment with the revisions to the China Securities Regulatory Commission’s “Regulatory Provisions on the Mutual Market Access Business of Depositary Receipts between Domestic and Overseas Stock Exchanges,” the Shanghai Stock Exchange (hereinafter referred to as “the Exchange”) has revised its original “Provisional Measures for the Listing and Trading of Depositary Receipts under the Mutual Market Access Arrangement between the Shanghai Stock Exchange and the London Stock Exchange” into the “Provisional Measures for the Listing and Trading of Depositary Receipts under the Mutual Market Access Arrangement between the Shanghai Stock Exchange and Foreign Stock Exchanges (Draft for Comments).” Concurrently, the Exchange has also revised the Guidelines on Pre‑Listing Review, the Guidelines on Cross‑Border Conversion, and the Guidelines on Market‑Making. Public comments are now being solicited, with a deadline for feedback set for January 16, 2022.
Comments or suggestions may be submitted in one of two ways: first, by visiting the Exchange’s official website and submitting your feedback through the “Public Consultation” section under the “Rules” tab; second, by providing written comments to the Exchange at the following address: International Cooperation Department, Shanghai Stock Exchange, No. 388 Yanggao South Road, Pudong New Area, Shanghai, Postal Code: 200127.
This is to notify you.

The Shanghai, Shenzhen, and Hong Kong stock exchanges, together with China Securities Depository & Clearing Corporation, have reached a consensus on the overall plan to include ETFs in the mutual market access programs.
To continuously optimize the market connectivity mechanisms between Mainland China and Hong Kong and to broaden the existing scope of eligible securities under these arrangements, in accordance with the joint announcement issued by the securities regulators of both jurisdictions, the Shanghai Stock Exchange, the Shenzhen Stock Exchange, Hong Kong Exchanges and Clearing Limited, and China Securities Depository & Clearing Corporation Limited (hereinafter referred to as the Shanghai, Shenzhen, and Hong Kong exchanges and ChinaClear) have now reached a consensus on an overall plan to include ETFs within the scope of the mutual market access schemes.
The inclusion of ETFs in the mutual market access scheme marks another landmark achievement in the upgrading of this mechanism, further enhancing the completeness of the spot‑market ecosystem under mutual access and fostering win‑win outcomes between the mainland and Hong Kong markets. On the one hand, adding ETFs to the eligible securities list expands investment channels and trading options for both domestic and international investors, enabling them to allocate resources across markets more conveniently and efficiently. On the other hand, this move will help refine the investor base, thereby supporting the sound and sustainable development of the ETF market.
Going forward, the Shanghai, Shenzhen, and Hong Kong stock exchanges, together with China Securities Depository & Clearing Corporation, will promptly carry out the necessary business and technical preparations for including ETFs in the eligible securities list, including revising relevant rules and soliciting public feedback. This preparatory work is expected to take approximately six months.

Commercial & Corporate
Real estate regulation policies are not only a “rein” but also an opportunity.
The real estate sector is a vital pillar of the national economy and closely linked to everyone’s daily life, making its policy direction a subject of widespread public attention. At the Central Economic Work Conference held in early December, the principle of “promoting the healthy circulation and sound development of the real estate industry” was put forward. Recently, Minister of Housing and Urban–Rural Development Wang Menghui provided further clarification on how this principle will be implemented during a media interview.
The main points outlined encompass four key areas: maintaining the continuity and stability of regulatory policies; enhancing their coordination and precision; resolutely and effectively addressing the risks of delayed project deliveries posed by certain leading real estate offices; and continuously rectifying and standardizing the order of the real estate market. Crucially, it is essential to ensure the continuity and stability of real estate regulation, thereby establishing a long-term mechanism. In practice, such consistency and stability in policy serve as a reassuring anchor for both real estate developers and homebuyers, while also acting as a catalyst for market confidence and orderly development.
At present, the real estate sector is confronting several pressing issues that cannot be ignored. As Wang Menghui has noted, since the second half of this year, factors such as the emergence of debt‑default risks among a few leading real estate offices have led to shifts in market expectations. Moreover, media reports indicate that some localities are experiencing difficulties in selling land and that governments have introduced measures to curb declines in housing prices. Consequently, not only real estate companies but also many homebuyers with genuine housing needs have adopted a wait-and-see stance. This reflects growing market concerns about the stability of the real estate sector.
It should be recognized that such concerns are typical of a certain stage in the development of the real estate sector, and China’s real estate industry remains in the midst of its growth trajectory. This is because the underlying fundamentals of the sector have not changed: housing demand remains robust. China’s rigid demand for housing continues to be strong, with over 11 million new urban jobs created annually, generating substantial additional housing needs. Moreover, a large stock of aging residential buildings constructed more than two decades ago suffers from inadequate floor space, poor quality, and insufficient supporting amenities, further fueling residents’ strong desire to upgrade their living conditions.
To address the issue of “concern,” it is first necessary to clarify the real estate sector’s role and positioning.
The aforementioned Central Economic Work Conference further set the tone for the development of the real estate sector: housing is for living in, not for speculation. This has been the consistent policy of the Party and the state toward the real estate industry in recent years. During a press briefing, Wang Menghui outlined eight priority areas that the housing and urban–rural development system will focus on next year, with the first being to uphold the principle that housing is for living in, not for speculation. This underscores the continuity and stability of real estate regulatory policies.
Secondly, to address the issue of “concern,” it is essential to give due attention to both overt and latent risks.
Wang Menghui stated that to steadily implement a long-term mechanism for real estate regulation, it is essential to adopt city-specific policies that foster a virtuous cycle and sound development of the real estate sector. The “virtuous cycle” should explicitly address and curb the unsustainable business practices—such as high debt, high leverage, and rapid turnover—that some real estate offices have historically relied upon.
A key task at present is to resolutely and effectively address the risks of delayed delivery associated with real estate projects undertaken by certain leading property developers. With “ensuring housing delivery, safeguarding people’s livelihoods, and maintaining stability” as the top priority, and guided by the principles of rule of law and market‑based approaches, we must ensure social stability and protect the interests of both the state and the public. In this regard, on the 20th, the People’s Bank of China and the China Banking and Insurance Regulatory Commission jointly issued a document encouraging banking and financial institutions to provide robust financial support and services for the acquisition and merger of risk‑management projects involving key real estate enterprises. This measure aims to alleviate homebuyers’ concerns and promote the healthy, stable development of the real estate market, rather than serving as a bailout for certain companies.
The third aspect of addressing the “concern” issue is that the real estate sector must chart a new course for development.
While upholding the principle of “housing is for living, not for speculation,” real estate enterprises still have ample room for growth—key to this lies in a shift in mindset. The “large-scale demolition and construction” approach is no longer appropriate; going forward, China will further accelerate the rollout of “new urban construction,” which encompasses comprehensively advancing the development of urban information modeling platforms, implementing the construction and upgrading of smart urban infrastructure, fostering synergistic development between smart cities and intelligent connected vehicles, promoting the building of smart communities, and driving the coordinated advancement of smart construction and the industrialization of the construction sector.
In short, for the real estate sector to achieve a virtuous cycle and sustainable development, it is essential to ensure the continuity and stability of real estate regulatory policies and to establish long-term mechanisms. This will foster stable expectations among both enterprises and individuals. Regulatory policies serve not only as a guiding hand but also as an opportunity; it is crucial to deeply appreciate the dialectical relationship between crisis and opportunity—turning challenges into chances.

Commentary on the 2022 National Energy Work Conference: Establish the Framework First, Then Phase Out; Advance Through Market-Based Mechanisms
Energy transition does not imply a large-scale, rapid phase-out of coal-fired power generation. As emphasized at this conference, it is essential to “continue leveraging coal’s role as a stabilizing anchor, effectively harness its capacity for fundamental and flexible grid regulation, and steadily strengthen the ability to ensure secure and reliable electricity supply.” At present, coal still occupies a dominant position in China’s energy consumption and power‑generation mix. In 2020, raw coal accounted for 56.8% of total energy consumption, while coal‑fired power represented 60.8% of total electricity generation; by year’s end, coal‑fired capacity made up 49.1% of the country’s total installed generating capacity. The difficulty of replacing coal‑fired power on a large scale stems not only from its irreplaceable foundational role in the short term, but also from the fact that other forms of power generation currently face significant constraints. Given the rigid growth trajectory of overall electricity demand, and considering that renewable energy sources are not yet able to fully meet the needs of end‑users, maintaining a certain level of coal‑fired capacity as a baseload resource remains indispensable for safeguarding electricity supply.
“Establish first, then dismantle” is the roadmap for accelerating the development of new energy and achieving the dual carbon goals. The meeting emphasized that a key priority for next year is to “speed up the green and low‑carbon transformation of the energy sector,” while stressing in implementation that “we must adhere to the principle of establishing before dismantling and adopt a holistic, coordinated approach.” According to research by the Chinese Academy of Sciences, the carbon emission factors for coal, oil, and natural gas are 0.7476, 0.5825, and 0.4435 tonnes of carbon per tonne of standard coal, respectively. Compared with major global economies, China’s share of coal in its primary energy consumption structure remains significantly high, which largely explains why China’s contribution to global CO₂ emissions has consistently remained at a relatively elevated level. Given the foundational role of coal‑fired power in China’s energy system in the short term, advancing the dual carbon goals requires accelerating the development of renewable energy to create favorable conditions for the gradual phase‑out of coal‑based generation. In addition, the National Energy Work Conference once again sent a positive signal on promoting “wind power in rural areas”; if relevant supportive policies are introduced next year, this could help expand the scope for decentralized wind‑power development.
A market‑based electricity pricing mechanism is key to advancing the development of new energy. The meeting emphasized “accelerating the establishment of a nationwide unified electricity market system.” From January to November 2021, medium- and long-term direct power transactions accounted for 35.9% of total national electricity consumption. Establishing a unified electricity market and increasing the share of market‑based electricity trading offers two major advantages: First, it restores electricity to its commodity nature and enables the market to play a decisive role in resource allocation. With the eventual establishment of a nationwide unified electricity market, it will be possible to further smooth price transmission between coal‑fired and non‑coal‑fired power generation, alleviate operational burdens on coal‑power enterprises, and help maintain supply‑demand balance in the electricity market. Second, it fosters a healthy competitive environment among new‑energy companies. A unified national electricity market can remove barriers to inter‑provincial and inter‑regional trade in renewable energy, promote large‑scale deployment of renewables, and enable different energy sources to be traded within the same market, thereby leveraging complementary strengths.
Moreover, as some new‑energy enterprises have long relied on policy support and lack intrinsic growth momentum, integrating them into the national electricity trading market will help promote survival of the fittest and facilitate an orderly industry-wide restructuring.
Risk Warning: Power market reform falls short of expectations, and the implementation of energy policies may be weaker than anticipated.

Resolutely implement the “dual carbon” goals and ensure energy supply.
Advancing carbon peaking and carbon neutrality is a major strategic decision made by the central authorities, vital to the sustainable development of the Chinese nation and to building a community with a shared future for mankind. Guizhou is a national ecological civilization pilot zone and serves as an important ecological security barrier in the upper reaches of the Yangtze and Pearl Rivers. Effectively implementing the “dual carbon” goals is both a concrete step for our province to make greater contributions to national ecological progress and a significant opportunity to drive high-quality development.
The 14th Five-Year Plan period is a critical window for achieving the “dual carbon” goals. We must remain grounded in Guizhou’s realities, seize the pivotal opportunity presented by economic structural adjustment, and officely orient our efforts toward green and low‑carbon development. We will advance the low‑carbon transformation of both the energy sector and the broader economy in a scientifically sound and orderly manner, enhance the clean and efficient use of energy, ensure energy security, promote pollution reduction, carbon mitigation, and ecological enhancement, and accelerate the establishment of a green, low‑carbon, circular economic system, striving to deliver new achievements in ecological civilization.
Uphold the principle of prioritizing stability while seeking progress within that stability, and fully leverage the role of coal and coal-fired power as a reliable safety net. As traditional pillar industries in our province, coal and electricity occupy a pivotal and unique position in the broader context of provincial development. We must strike a balance between ensuring current energy supply and pursuing long-term green development, attaching great importance to the safe and sustainable growth of the coal‑power sector. Accelerate the transformation and upgrading of the coal and other energy industries; on the premise of guaranteeing a stable power supply and meeting demand, advance energy‑saving and emission‑reduction upgrades of existing coal‑fired generating units, and proactively plan and build new, state‑of‑the‑art coal‑power projects. Make proactive moves in developing new energy sources, emphasizing the optimal integration of coal and renewables, and more effectively harnessing wind, solar, and other clean energy resources. At the same time, expedite the exploration, development, and utilization of emerging energy sources such as shale gas and coalbed methane.
Reducing pollution, cutting carbon emissions, and increasing green cover are essential steps for fulfilling the “dual carbon” goals. Taking the central ecological and environmental protection inspection as an opportunity, we will earnestly address the issues raised in the feedback, wage tough battles to prevent and control air, water, soil, and solid-waste pollution, and vigorously advance waste-sorting initiatives, thereby resolutely safeguarding the public’s life safety and health. We will further promote the eco‑friendly transformation of industries and the industrialization of ecological initiatives, implement a plan to double the green economy and a special campaign for green manufacturing, and develop a number of green industrial parks, green enterprises, and green products. We will officely curb the unchecked expansion of high‑carbon and high‑energy‑consumption projects and reduce carbon intensity. At the same time, we will effectively harness the carbon‑sequestration capacity of forests, continue to advance the construction of a green Guizhou, and enhance the carbon sink capacity of our ecosystems.
Achieving the “dual carbon” goals is an intrinsic requirement for advancing high-quality development and must be pursued with unwavering determination; however, it cannot be accomplished overnight. Only by proactively implementing the dual carbon targets while ensuring energy supply can we inject green momentum into the province’s high‑quality development and provide a solid energy security foundation.

Coal consumption in the power sector and three other industries will peak by 2025, requiring average annual investments of 1.3 trillion yuan.
The latest research report indicates that investments in coal control and carbon reduction across four key sectors—power generation, steel, cement, and coal chemical industries—will stimulate high-quality economic growth while also fostering the optimization of industrial structure and synergistic reductions in atmospheric pollutants.
The Environmental Planning Institute of the Ministry of Ecology and Environment recently released the “Research Report on the Roadmap for Total Coal Consumption Control in Key Industries under the ‘Dual Carbon’ Framework.” According to Researcher Cao Dong, the institute’s chief expert and project leader, conducting research on coal‑consumption control strategies for key industries in the context of carbon‑reduction efforts is of great significance for advancing the nation’s goals of peaking carbon emissions and achieving carbon neutrality, as well as for promoting a green transformation of industrial production methods and the energy mix.
The research findings indicate that, under the policy scenario, the combined coal consumption of the four key sectors—power generation, steel, cement, and coal‑chemicals—will peak in 2025 at 2.49 billion tonnes of standard coal, with a plateau period of 5–6 years around the peak. Carbon emissions are projected to peak in the same year, reaching 8.01 billion tonnes. Notably, coal consumption in the steel sector already peaked in 2020, while cement, coal‑chemicals, and power generation are expected to reach their respective coal‑consumption peaks in 2021, 2024, and 2028.
　According to the data released in the report, in 2019, the four key sectors—thermal power, steel, cement, and coal chemical—accounted for a total coal consumption of 2.41 billion tonnes of standard coal, representing 86% of the nation’s overall coal consumption. Among these, the power sector had the largest share at 54%, followed by the steel, coal chemical, and cement industries, with shares of 17%, 9%, and 6%, respectively.
In 2019, the four sectors—electricity, steel, cement, and coal chemical industries—accounted for 7.76 billion tonnes of carbon dioxide emissions (including process emissions), representing approximately 72% of the nation’s total CO₂ emissions (including process emissions). Specifically, these sectors contributed 42%, 14%, 12%, and 4%, respectively. When combined with indirect emissions from net electricity purchases, the steel, cement, and coal chemical industries accounted for 15%, 12%, and 5% of the country’s total CO₂ emissions, respectively.
Cao Dong argues that achieving peak coal consumption in these four key sectors will require a combination of measures across four domains: adjusting the energy mix, optimizing the industrial structure, upgrading to energy‑efficient technologies, and promoting resource circularity. Such investments will not only stimulate high‑quality economic growth but also help refine the industrial structure and advance synergistic reductions in atmospheric pollutants.
The report’s calculations indicate that, to bring coal consumption in the four major sectors to peak as early as possible, cumulative investment of RMB 19.6 trillion will be required between 2021 and 2035, averaging approximately RMB 1.3 trillion per year, with over 90% allocated to the power sector. This investment is expected to stimulate high-quality economic growth, boosting GDP by an average of RMB 362.7 billion annually.
Cao Dong stated that controlling coal consumption in the four major sectors will also yield significant environmental benefits, with annual co‑reductions of 290,000 tons of sulfur dioxide (SO2), 650,000 tons of nitrogen oxides (NOx), and 100,000 tons of particulate matter (PM). By sector, steel and power generation account for the largest reductions, with the steel industry making particularly substantial contributions to the co‑reduction of NOx and PM.
　The report argues that, to effectively facilitate the smooth implementation of key measures along the coal‑control pathway in priority sectors, proactive and effective policies must be adopted, with comprehensive efforts to strengthen policy innovation. This should progressively establish a well‑structured carbon‑trading market mechanism, a green and low‑carbon standards system, sector‑specific market access policies, as well as price‑related fiscal and tax instruments and investment‑financing mechanisms.
In terms of specific measures, the report recommends intensifying energy‑saving retrofits of existing generating units, advancing research and development of high‑efficiency, clean coal‑fired power technologies, and continuously reducing coal consumption per unit of electricity generated; optimizing the raw material and fuel mix in the steel, cement, and coal‑chemical industries; studying the establishment of a differentiated electricity pricing mechanism based on offices’ low‑carbon performance levels, and requiring captive power plants to fully assume the obligations of public utilities; raising the thresholds for phasing out outdated and excess clinker production capacity in the cement sector; delineating high‑carbon and low‑carbon industries or products within the coal‑chemical sector, and placing high‑carbon industries or products on the restricted‑use and phase‑out lists, thereby tightening industry access standards; and comprehensively strengthening the system for material circulation and recycling while promoting the recovery and utilization of scrap steel resources.
At the press conference for the aforementioned report, an official from the Department of Climate Change under the Ministry of Ecology and Environment stated that refining pathways for controlling coal consumption in key industries is a crucial task for achieving synergistic efficiency in pollution reduction and carbon mitigation, advancing industrial structural adjustment, and realizing a comprehensive green transformation of the economy and society. This work also serves as an important reference for attaining both pollution reduction and carbon mitigation goals while enhancing their mutual benefits.

Taxation TAXATATION
Phased tax relief measures are effectively supporting the development of small, medium, and micro enterprises.
This year, China’s economy has gotten off to a strong start, yet it continues to face pressures such as uneven recovery and an unstable foundation. Affected by factors including sporadic outbreaks of COVID‑19, rising commodity prices, and increasing overall labor and other costs, small and medium-sized manufacturing enterprises in the mid- and downstream segments are facing mounting operational challenges.
At the end of October, the state introduced temporary tax‑deferral measures to address the most pressing, direct, and practical cash‑flow challenges facing businesses, thereby easing their financial constraints and operational pressures and helping the industrial economy maintain stable performance. Nearly two months after these measures were implemented, taxpayers have widely reported a tangible reduction in tax and fee burdens, a noticeable alleviation of liquidity pressures, and a clear strengthening of their capacity for sustained growth.
Precision drip irrigation, with tax payment deferrals delivered “with warmth”
The “Announcement on Matters Relating to the Deferral of Payment of Certain Taxes and Fees for Small, Medium, and Micro Manufacturing Enterprises in the Fourth Quarter of 2021,” issued by the State Taxation Administration and the Ministry of Finance, stipulates that all tax liabilities of small and micro manufacturing enterprises, including individual business households, will be deferred; for medium-sized manufacturing enterprises, 50% of their tax liabilities will be deferred, and enterprises facing particularly severe difficulties may apply for full deferral. According to information obtained by reporters from the State Taxation Administration, as of December 8, 2021, a total of RMB 78.33 billion in taxes and fees had been deferred nationwide for small, medium, and micro manufacturing enterprises.
A relevant official from the State Taxation Administration stated that this tax‑deferral measure, which is expected to provide approximately RMB 200 billion in relief to small and medium‑sized manufacturing enterprises, is a strong demonstration of the state’s use of tax functions to fine‑tune and adjust the macroeconomy through the tax lever.
Experts note that this year’s tax and fee reductions emphasize structural tax cuts, reflecting the government’s focus on enhancing the quality and sophistication of these measures. The tax deferral policy is precisely targeted at small and medium-sized manufacturing enterprises, playing a positive role in alleviating their burdens, helping them navigate current challenges, pursue transformation and upgrading, and bolster their competitiveness.
Apply and enjoy—good policies are implemented with care.
According to reports, eligible taxpayers can file their returns online through the electronic tax bureau or other digital channels. The system will automatically prompt them whether to defer tax payments; a single click to conoffice will grant them the benefit of deferred tax payment, with the deadline extended by three months at no additional cost. No supporting documents, such as application forms or bank statements, are required.
This “one-click convenience” enables taxpayers to file their returns from the comfort of their homes, easing their reporting burden while benefiting from favorable policies and enjoying greater financial and time‑saving flexibility.
Pan Hao, the financial director of Shuangtong Daily Necessities Co., Ltd. in Yiwu, Zhejiang, said: “During the November tax filing, the system automatically popped up a reminder; following the step-by-step instructions, we quickly completed the deferral of 800,000 yuan in tax payments.” He added, “The government has thoughtfully addressed both the challenges we face and the solutions to them. We are confident that we will achieve further breakthroughs in the R&D of biodegradable foodservice products and become a global leader in the straw industry.”
It is reported that tax authorities across the country have adopted innovative approaches to publicity and guidance, employing measures such as one‑on‑one mentoring by “chief liaison officers,” policy dissemination via tax‑related big data, and dedicated task forces providing personalized support for the “tax deferral” policy. These efforts have helped bridge the “last mile” in policy implementation, effectively assisting small, medium, and micro enterprises in overcoming difficulties and revitalizing their operations.
Multiple favorable policies are bolstering the momentum of enterprise development.
As the “capillaries” of the economy, small, medium, and micro enterprises play a vital role in driving economic growth, expanding employment, and boosting market dynamism. In the face of challenges confronting these businesses, the state has leveraged tax policies to remove barriers, stimulate economic development, and provide sustained support, enabling market entities to operate with greater agility and confidence.
Zhejiang Jin’ao Lan Machine Tool Co., Ltd. is a national-level high-tech enterprise integrating industry, academia, and research. Its flagship high-precision presses boast strong core technological advantages, enabling the company to build automated stamping lines for automotive sheet metal parts for renowned automakers such as Great Wall, FAW, and General Motors.
“At present, our company is undergoing a transformation and upgrade, which requires substantial financial support. However, this year, the combined impact of rising raw-material prices and an extended payment collection cycle has placed significant pressure and challenges on our cash flow,” said Lü Shiguang, the company’s head. He added that steel—the primary raw material for machine tools—has risen by more than 30% compared with the beginning of the year, while the payment collection period has lengthened by roughly 40% relative to previous years.
However, to Lü Shiguang’s surprise, as the second half of the year brought a peak sales season for his company, it also saw the tax authorities roll out one after another “policy package.” He ran through the numbers: in October this year, the company had just benefited from an additional R&D expense deduction of 5.73 million yuan for the first three quarters; soon after came the November policy allowing deferred tax payments, which is expected to result in over 4 million yuan in deferred tax liabilities for the fourth quarter alone.
A relevant official from the State Taxation Administration stated that when enterprises thrive, the economy thrives. With vibrant market entities, China’s economy gains momentum. The tax authorities will continue to fully implement tax and fee reduction policies, further streamline and innovate tax and payment services, and provide practical assistance to small and medium-sized manufacturing enterprises to alleviate their difficulties, thereby helping market entities grow more effectively and rapidly.

 
Implement the tax relief policies of “reduction, refund, and deferral” to help coal-fired power and heating enterprises alleviate their difficulties.
On a late winter night, at the Tashan Loading Base on the Daqin Railway, long trains are steadily loading coal along the silo‑ring line; in just 50 seconds, each 80‑ton capacity car is filled to capacity.
Recently, Shanxi, a major coal-producing province, has maintained an average daily coal output of over 3.3 million tons. Railway transport operators have meticulously coordinated operations to swiftly deliver this coal to major coal-fired power and heating enterprises across the country.
Due to rising coal prices and other factors, coal-fired power and heating companies have faced significant challenges in recent months. In response, the state swiftly introduced a series of measures to ensure energy supply, including deferring tax payments for these enterprises for the fourth quarter of this year, thereby further alleviating their operational difficulties. According to the latest data from the State Taxation Administration, as of December 2, more than 4,800 coal-fired power and heating companies nationwide had collectively benefited from tax reductions, refunds, and deferrals totaling RMB 21.57 billion. Meanwhile, an official from the National Energy Administration recently stated that the nationwide tightness in electricity supply and demand has begun to ease.
Policies are being implemented swiftly, and the warmth is spreading even faster.
It is reported that, to ensure a stable supply of energy and electricity this winter and next spring and help coal-fired power and heating enterprises weather the “cold winter,” the State Taxation Administration established a special coordination task force for energy‑supply assurance in September this year. The Administration also issued the “Notice on Effectively Ensuring Energy and Electricity Supply This Winter and Next Spring and Implementing Tax Measures to Alleviate the Difficulties Faced by Coal‑Fired Power Enterprises” (hereinafter referred to as the “Notice”), actively rolling out tax relief measures—reductions, refunds, and deferrals—to support these enterprises. These measures aim to ensure that eligible coal‑fired power and heating companies fully benefit from all applicable tax and fee concessions, receive full refunds of outstanding input VAT credits, and enjoy all eligible tax deferrals.
“The tax authorities have systematically reinforced accountability at every level and established a top-down implementation mechanism across the entire tax system. Special task‑force coordination mechanisms have been set up at all levels, from the State Taxation Administration down to provincial, municipal, and county tax bureaus, with the principal leaders of each unit assuming overall responsibility for ensuring the effective execution of all tasks,” said Cai Zili, Director-General of the Revenue Planning and Accounting Department of the State Taxation Administration.
Tax authorities at the provincial, municipal, and county levels in Shaanxi Province have each established three specialized task forces—focused on policy implementation, targeted services, and work coordination—to help coal‑and‑power enterprises overcome difficulties. In addition, “tax stewards” have been assigned to 187 enterprises to ensure timely policy rollout and prompt responses to their concerns.
“The day before, we saw news about tax deferral in the media, and the very next day, leaders from the tax authorities came to our premises to assess the situation—what a swift response,” said the head of Shaanxi Shanbei Qianyuan Energy & Chemical Co., Ltd. The day after the Notice was issued, Wu Wei, a member of the Party Committee and Chief Accountant of the Yulin Municipal Tax Service Bureau, led a service team to Qianyuan Energy & Chemical Co., Ltd. to identify challenges and deliver relevant policies, helping the company benefit from the tax‑deferral incentives.
The Inner Mongolia Autonomous Region shoulders the critical responsibility of ensuring a stable coal supply of 53 million tons for 18 provinces, autonomous regions, and municipalities. Leveraging the advantages of tax‑related big data, the Inner Mongolia Tax Service has conducted preliminary, categorized baseline analyses of coal‑power and heating enterprises across the region, and has rolled out tailored “one‑enterprise‑one‑policy” and “one‑household‑one‑solution” service measures for 374 businesses.
Daily monitoring ensures more precise implementation of policies. In Shuozhou City, Shanxi Province, the local tax authorities have compiled lists of coal‑power and heat‑supply enterprises, tax‑and‑fee preferential measures, and the types and amounts of taxes eligible for deferral or reduction. They have also assembled a team of 45 seasoned professionals to provide tailored support to 15 coal‑power companies, tracking on a daily basis the status of tax reductions, refunds, and deferrals, thereby ensuring the full and effective rollout of tax measures designed to alleviate difficulties and provide relief.
The team provides thoughtful service, ensuring warmth is delivered with greater precision.
“With robust policy implementation and highly targeted support, over 30 million yuan in tax payments have been deferred, significantly easing the financial strain on businesses and making this winter a little warmer,” said Wang Guohui, General Manager of Huaneng Songyuan Combined Heat and Power Co., Ltd.
Located in Songyuan City, Jilin Province, Huaneng Songyuan Thermal Power Co., Ltd. is the region’s sole combined heat and power enterprise. The specialized service team of the Songyuan Economic and Technological Development Zone Tax Bureau promptly provided one‑on‑one training and guidance to the company, explaining preferential policies for coal‑fired power enterprises so that the company could benefit without delay.
In Sichuan, the local tax authorities have launched a large-scale outreach campaign titled “Solicit Needs, Enhance Services, and Resolve Challenges,” helping businesses fully leverage tax and fee preferential policies so they can weather the winter with confidence.
As a severe cold wave swept in, Qin Mingdong, general manager of Guoneng Sichuan Huayingshan Power Generation Co., Ltd., grew increasingly concerned as coal inventories steadily declined. The company relies on long-term procurement of coal from outside the province. “With tight corporate finances and critically low coal stocks, the plant faces the risk of shutdown,” Qin said.
To help enterprises break the deadlock, a special task force from the tax authorities in Dazhou City, Sichuan Province, visited companies on-site to assess and analyze the preferential policies they are eligible for. To date, these enterprises have benefited from deferred tax and fee payments totaling over RMB 1.8 million.
“Unexpected,” said Zhang Hongyun, the financial director of Jinan Heating Group Co., Ltd., visibly delighted by the swift tax‑refund process. “The refund was remarkably smooth—on the very day we submitted our application, we received over 100 million yuan in refunds.”
The Lixia District Tax Bureau of Jinan has digitized the entire process for refunding outstanding input VAT credits, eliminating the time required for paper-based document handling. At the same time, it has implemented “instant application and review” and “one-click refund” procedures, enabling nearly all such refunds to be processed within two working days.
Tax and fee benefits are now in taxpayers’ pockets, delivering tangible warmth.
Support that comes just when it’s needed most helps businesses “add fuel to the fire and raise wages” as they weather the winter.
“Don’t let the biting cold wind outside fool you—my heart feels warmer than springtime in March,” said Liu Yangjun, a finance professional at Inner Mongolia Daihai Power Generation Co., Ltd., with a smile. “Thanks to the tax authorities’ timely assistance, we’ve been able to catch our breath—for now.”
Daihai Power Generation Company, located in Liangcheng County, Ulanqab, is one of the key projects under the national strategies for developing the western region and transmitting electricity from west to east. This year, with coal prices on the rise, Daihai Power Generation—relying solely on thermal power generation and heat supply—has found itself facing significant challenges.
“The tax authorities promptly explained the relevant preferential policies to us and, following the prescribed procedures, helped us process a deferral of tax and fee payments totaling RMB 6.785 million, significantly easing our company’s financial strain,” said Liu Yangjun.
Qiao Guangyuan, the financial director of Shaanxi Guohua Jinjie Energy Co., Ltd., shares the same sentiment: “At a time when our company was facing significant challenges, the state introduced relief measures for coal‑power enterprises—truly a timely move. The tax authorities processed a deferral of tax payments totaling RMB 414 million, promptly alleviating our company’s liquidity constraints.”
Chen Jing, Financial Manager of Hubei Huadian Xiangyang Power Generation Co., Ltd., calculated that in October, tax payment deferrals were granted for value-added tax, stamp duty, and related surcharges totaling over RMB 15 million; furthermore, the company will defer tax payments amounting to more than RMB 31 million in the fourth quarter of this year.
“The tax and fee deferral came at just the right time and provides substantial support to our ongoing biomass gasification–coupled clean power generation project,” said Chen Jing.
According to reports, the company is a key thermal‑power‑generation project supporting the Three Gorges Water Conservancy Project and serves as the only power‑supply hub for China Huadian Corporation in northwestern Hubei Province. Since October, rising coal prices have driven up generation costs, squeezed profit margins, and placed significant pressure on the company’s cash flow.
Chen Jing stated that, once the biomass power generation project is commissioned, it will be able to process 55,000 tons of agricultural and forestry waste annually and generate 60 million kilowatt-hours of electricity. This will not only significantly mitigate air pollution caused by the open burning of crop residues in fields but also reduce thermal power plants’ reliance on coal and other energy sources, thereby enhancing the company’s production efficiency.
Ensuring energy supply, particularly for residential use, is not only vital to the stable functioning of the economy but also directly affects the daily lives of countless households.
A relevant official from the State Taxation Administration stated that the tax authorities will, in accordance with the decisions and arrangements of the CPC Central Committee and the State Council, fully leverage the functions of taxation and adopt measures that are faster, more precise, simpler, and more practical, to provide all‑round support for ensuring energy and power supply this winter and next spring, thereby helping coal‑fired power and heating enterprises overcome crises and navigate difficulties.

Hunan: Tailored Services Unlock Benefits, Enabling Newly Registered Taxpayers to Set Up Quickly
Recently, the finance director of the Ningbang Plaza Chenzhou project office, located within the China (Hunan) Pilot Free Trade Zone (hereinafter referred to as the “Free Trade Zone”), has repeatedly praised the tax authorities for their attentive service. The project encountered difficulties in processing a tax refund because the data it submitted did not match the records in the Golden Tax Phase III system. In response, the tax authorities proactively visited the site, guided the finance team in correcting the discrepancies, and successfully completed the refund procedure.
Since the China (Hunan) Pilot Free Trade Zone was approved in September 2020, the Hunan Provincial Tax Service Bureau of the State Taxation Administration has continuously refined its service measures, providing tailored support to help newly established market entities within the zone take root, thrive, and grow. Since its approval, the zone has seen more than 7,988 new market entities registered, with both the total invoicing value of newly established enterprises and the tax compliance filing rate steadily increasing.
Implementing “One-Stop Online Services” to enable newly established enterprises to swiftly complete tax-related procedures.
An online platform has been established to expedite tax-related procedures. The provincial tax bureau has fully implemented the “one‑stop online service” for business establishment within the free trade pilot zone. In line with the principles of “a single form, one-time data collection, one‑stop online processing, completion in a single visit, and delivery in one go,” the tax‑related processes for business registration in the pilot zone have been streamlined. After a newly established enterprise completes registration with the market regulation authorities, its registration information is transmitted in real time to the competent tax authority via an external data‑exchange system. The tax authority then conoffices and processes the application online, and mails the tax‑related documents requested by the new enterprise directly to the legal representative’s address. Following the implementation of the “one‑stop online service,” newly established enterprises can now complete all required tax‑related procedures in as little as 10 minutes.
Building on the success of the “One-Stop Online Services” initiative, we have fully rolled out contactless tax services. The provincial tax authority has taken the lead nationwide in assigning identity tags to newly registered taxpayers and payers in the free trade pilot zones and comprehensive bonded zones. Leveraging tax‑related big data platforms such as the Electronic Tax Bureau and “Xiangshuitong,” it delivers tailored notifications on tax and fee preferential policies and timely reminders for tax filing and payment. With a single login, taxpayers and payers can access 214 administrative services. Currently, over 90% of enterprises within the free trade pilot zones conduct tax and fee-related transactions through contactless channels.
Implementing the “One Enterprise, One Policy” approach—bringing tailored support directly to businesses to help them expand overseas.
In December last year, the first-phase precision conductor new‑material project of the Chenzhou Zhengwei New Materials Science and Technology City, located in the Chenzhou Area of the Free Trade Pilot Zone, officially commenced production. Following the launch, the company experienced a surge in business activity and a substantial increase in invoice usage. In response, the company’s finance team submitted a request to the Chenzhou High‑Tech Industrial Development Zone Tax Bureau, seeking an increase in the maximum invoicing limit for special value‑added tax invoices. The Chenzhou High‑Tech Industrial Development Zone Tax Bureau promptly took action, raising the maximum invoicing limit in accordance with applicable laws and regulations to meet the enterprise’s invoicing needs.
Tailored to meet enterprise needs. The provincial tax bureau has taken the lead nationwide in treating newly established enterprises within the free trade pilot zone, when applying to obtain or adjust their VAT invoice quotas, as if they were taxpayers at the highest credit rating—Level A—providing supplies on demand and processing applications immediately. Additionally, the approval timeframe for setting the maximum invoicing limit for special VAT invoices for enterprises in the free trade pilot zone has been shortened from the previous 10 working days to 5 working days.
Implementing a “one‑enterprise‑one‑policy” approach to help businesses expand overseas. To address the financing challenges faced by newly established enterprises, the provincial tax authority has extended the scope of its “bank‑tax collaboration” loan program to include new businesses within the free trade pilot zone. This year, the provincial tax authority issued the “Tax and Fee Policy Guidelines for Supporting the High‑Quality Development of the Hunan Free Trade Pilot Zone,” systematically reviewing key tax and fee policies relevant to the zone’s priority industries and providing on‑site guidance. Additionally, it has compiled investment‑related tax guides for Chinese investors planning to invest in Tanzania and two other countries, while fostering inter‑departmental cooperation to resolve complex cross‑border tax issues.

Inner Mongolia: Continuously Enhancing Tax Services for Business Startups
Born in 1999, Fan Jinhui resolutely chose to return to his hometown—Dawa Village, Shangdu County, Ulanqab City, Inner Mongolia Autonomous Region—after graduation to start a feed‑manufacturing company. “The registration process for new businesses is fast and convenient, with straightforward procedures that were completed in no time. The business environment is getting better and better, and thanks to favorable tax policies, starting up now comes with far fewer worries.” Having smoothly completed tax‑information verification and collected his invoices, he spoke with eyes full of hope.
In Inner Mongolia, to support the growing number of young people like Fan Jinhui who harbor entrepreneurial aspirations, the local tax authorities have continuously streamlined business‑registration procedures. By cutting processing times, reducing administrative steps, lowering costs, and simplifying workflows, they provide efficient, convenient services for company establishment, ensuring that all types of market entities experience the warm, welcoming “spring breeze” of taxpayer‑friendly administration.
The Inner Mongolia Autonomous Region Tax Service of the State Taxation Administration, in collaboration with the local Market Supervision Administration, has streamlined the information‑transmission process, reduced data‑transfer steps, and promoted direct data interconnection. As a result, the time required to transmit data between the two agencies has been cut from 70 minutes to under 10 minutes, enabling seamless joint processing of business‑registration procedures by market regulators and tax authorities. Following industrial and commercial registration, all types of market entities can immediately proceed with tax‑related formalities.
“A series of procedures—such as conofficeing information for newly established enterprises, registering with the electronic tax bureau, determining tax (fee) types, approving invoice categories, and obtaining invoices—were all completed in under an hour, demonstrating remarkable efficiency,” said a finance professional at Xilin Gol League Zhongnong Machinery Sales Co., Ltd., who experienced the swift convenience brought by the “seamless integrated service.”
Building on efforts to shorten tax-processing times, the Inner Mongolia Autonomous Region Tax Service Bureau, in collaboration with the Market Supervision Administration, has further strengthened the sharing of real-name information. Following the collection of real-name identity data by the market supervision authorities, this information is directly verified and applied during tax-related real-name procedures, thereby reducing redundant data collection.
Liu Kun, a villager from Xiasihaо Town in Guyang County, Baotou City, is a local astragalus farmer. To standardize his operations, he joined forces with several other local farmers to establish a cooperative. After the market supervision authorities completed the registration of the farmers’ specialized cooperative and collected real‑name identity information, the tax authorities were able to verify this directly through the system, eliminating the need to submit additional documents. “At the tax service window, the cooperative handled tax‑related matters—such as tax‑type determination and invoice issuance—in a one‑stop manner. Tax officials even guided us in successfully issuing standard VAT invoices for a Jiangsu‑based astragalus purchasing company, and everything was done in no time,” Liu Kun said happily.
Tax authorities across the Inner Mongolia Autonomous Region have fully implemented a “one‑form integration” approach for business establishment. Taxpayers need only complete the “Comprehensive Application Form for Tax‑Related Matters of Newly Established Enterprises” to access a bundled package of six tax‑related services, including tax information conofficeation, determination of invoice types, registration as a general VAT taxpayer, approval of the maximum invoicing limit for special VAT invoices, initial issuance of dedicated equipment for the VAT tax control system, and issuance of invoices.
“I had assumed that filing the required documents would be extremely cumbersome, but I was surprised to find that I could handle many matters simply by completing a single form. During the process, tax officials even provided dedicated guidance.” Under the guidance of tax personnel, Xing Yongbin, the head of Tengsheng Coal Sales Co., Ltd., successfully completed the submission and conofficeation of his application.
Like Xing Yongbin, Jia Jinyu, the head of Jinbiao Agricultural Development Co., Ltd., has also experienced the convenience and ease of starting a business. “Now, newly established enterprises can complete the entire process online—fewer steps, faster turnaround, and much less hassle. Since this was my first time applying, I was worried about making mistakes, so I still came to the tax service hall. The tax officials patiently guided me through the relevant procedures on the electronic tax bureau, and everything went very smoothly,” said Jia Jinyu.
In addition, tax authorities across the Inner Mongolia Autonomous Region have introduced a “missing‑document acceptance” service to eliminate the need for businesses to make repeated trips. “Since this was my first time visiting the tax bureau and I arrived in a hurry, I hadn’t prepared all the required documents. I was already bracing myself for another visit, but to my surprise, the tax officials informed me that ‘missing‑document acceptance’ was available—requiring only the signing of a commitment letter and the submission of the missing materials within the promised timeframe, after which I could proceed with all procedures for establishing my business,” said the head of Wuhai Zhuotai Used Car Trading Co., Ltd., expressing heartfelt gratitude.
“After completing all the procedures for establishing the business, tax officials also invited me to join their QQ and WeChat groups, where they regularly share relevant tax policies and guidance on handling tax-related matters, making it easier for us to better understand and become familiar with tax regulations as well as how to use the electronic tax bureau,” said the head of Etuoke Banner Changfu Agricultural and Pastoral Development Co., Ltd.
With the meticulous support of the tax authorities, newly established enterprises can hit the ground running and accelerate their growth.

 
Litigation & Arbitration
The Central Political and Legal Commission has issued the “Guiding Opinions on Fully Leveraging Intelligent Technologies to Promote the Long-Term and Sustainable Resolution of Deep-Rooted Problems in the Political and Legal System.”
Recently, to ensure that the nationwide campaign to address persistent problems and deep-rooted malpractices within the political and legal workforce is carried out in a thorough and effective manner, the Central Political and Legal Commission issued the “Guiding Opinions on Fully Leveraging Intelligent Technologies to Promote Long-Term, Sustainable Solutions to Persistent Issues in the Political and Legal System.” Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and underpinned by a profound implementation of Xi Jinping’s Thought on the Rule of Law, these guiding opinions represent an important measure for advancing the comprehensive deepening of reform in the political and legal fields and a major institutional achievement of the education and rectification campaign. They will help political and legal organs at all levels and in all localities utilize intelligent technologies to improve internal oversight mechanisms, checks and balances, and social supervision; facilitate cross‑departmental data collaboration and sharing; and, crucially, accelerate the establishment of a standardized and efficient system of checks and balances in law enforcement and judicial administration, thereby effectively addressing longstanding issues that have long hindered impartial law enforcement and justice.
The “Guiding Opinions” rigorously implement the central Party and government’s decisions and arrangements for the education and rectification of political and legal personnel, drawing extensively on the effective experiences and best practices developed by political and legal organs at all levels in leveraging intelligent technologies to identify and address persistent problems and deep-rooted malpractices. The document sets out key tasks and supporting measures across seven areas: improving the platforms and mechanisms for recording and reporting compliance with the “Three Regulations”; enhancing internal intelligent oversight mechanisms in law enforcement and judicial processes; refining inter‑departmental data‑sharing mechanisms for law enforcement and judicial matters; strengthening mechanisms for identifying violations involving unauthorized business activities and illicit equity holdings or lending; improving systems for monitoring and issuing early warnings regarding improper case‑handling practices; perfecting mechanisms for the intelligent public disclosure of law enforcement and judicial information; and exploring the establishment of a procuratorial big‑data platform for legal supervision.
The “Guiding Opinions” put forward a series of innovative measures: first, leveraging big‑data analytics to institutionalize law‑enforcement and judicial inspections and process monitoring, thereby enabling proactive risk alerts, real‑time oversight during proceedings, and post‑event handling; second, accelerating the development of cross‑departmental big‑data case‑handling platforms, breaking down data silos, and exploring the establishment of an intelligent, end‑to‑end supervision platform for law enforcement and the judiciary, thus achieving online case management and comprehensive online oversight throughout the entire process; third, piloting a procuratorial big‑data legal supervision platform, streamlining channels for the collection and utilization of supervisory big data, and building specialized supervisory models that, through intelligent screening and comparative analysis of massive datasets, identify irregularities and enable precision‑targeted oversight; fourth, strengthening information sharing on former court and procuratorial personnel, establishing a “two‑way early warning” system for unauthorized applications for lawyer’s practice certificates and improper representation in cases by such individuals; and fifth, deepening the “delegation, regulation, and service” reform in the political‑legal sector, innovating more convenient services—“immediate processing, online processing, and one‑stop processing”—to address systemic issues at their source while ensuring compliance.
During the research and formulation of the “Guiding Opinions,” three key principles were emphasized: First, a coordinated, overarching approach was adopted. By grounding efforts in the division of responsibilities between Party committees’ political and legal commissions and the various political‑legal agencies, the coordinating role of the Party committee’s political and legal commission was strengthened. This fostered enhanced interconnectivity and intelligent, cross‑departmental collaboration among political‑legal bodies, as well as between these bodies and departments such as organization, taxation, and market regulation, thereby promoting the integration of resources, the convergence of capabilities, and the consolidation of technologies. Second, implementation was tailored to local conditions. The document underscored the importance of combining top‑level design with grassroots innovation, taking full account of the actual circumstances of smart‑politics‑and‑law initiatives across regions and sectors, and adopting targeted measures to advance applications—from basic functions like law enforcement, judicial case filing, process monitoring, and data matching to more sophisticated capabilities such as risk perception, model‑based analysis, and intelligent early warning systems. Third, the measures were comprehensive and all‑encompassing. The seven areas of recommendations address a wide range of persistent problems and systemic issues; by introducing a series of smart‑technology‑driven initiatives, they aim to enhance the effectiveness of checks and balances in law enforcement and judicial processes, thus driving high‑quality development of political‑legal work.
The issuance of the “Guiding Opinions” will better guide political and legal organs at all levels and in all localities to further consolidate the achievements of the education and rectification campaign within the political and legal workforce, fully leverage intelligent technologies to ensure the sustained and effective addressing of persistent problems and deep-rooted malpractices in the political and legal system, and promote the continued enhancement of public trust in law enforcement and judicial processes.

The Supreme People’s Court has issued the “Provisions on the Procedures for Disciplinary Action Against Judges (Trial Implementation).”
Recently, following deliberation and approval at a meeting of the Leading Group for the Reform of the Central Judicial System and after review and consent by the Central Political and Legal Commission, the Supreme People’s Court issued the “Provisions on the Procedures for Disciplinary Action Against Judges (Trial)” (hereinafter referred to as the “Procedures”). The Provisions standardize the composition of the Judicial Disciplinary Committee, clarify the procedures for handling matters related to disciplinary targets, the acceptance of leads concerning unlawful adjudication, investigation and verification, submission for deliberation, issuance of disciplinary decisions, and the appeal and review processes for the judges concerned, thereby providing institutional safeguards for the people’s courts to hold judges accountable for unlawful adjudication in accordance with law and regulations.
The Provisions on Procedures stipulate that the Supreme People’s Court, as well as the people’s courts of provinces, autonomous regions, and municipalities directly under the central government, shall establish Judicial Disciplinary Committees. These committees shall be composed of qualified professionals—such as deputies to the National People’s Congress, members of the Chinese People’s Political Consultative Conference, legal scholars, judges, prosecutors, and lawyers—who possess high political integrity, strong professional competence, and impeccable professional ethics. Among them, judicial members shall account for no less than half of the total membership.
The Provisions on Disciplinary Procedures specify that the subjects of judicial discipline are limited to judges who have been assigned to established judicial positions following the implementation of the judicial staffing system; judicial support personnel are not subject to such disciplinary measures. Furthermore, if a court president or division chief causes an erroneous judgment due to negligence in supervisory and managerial duties, the judicial disciplinary procedure shall not apply.
The Provisions on Disciplinary Procedures stipulate that the discipline of judges is administered through a division of responsibilities between the people’s courts and the Judicial Disciplinary Committee. The people’s courts, in accordance with their authority over cadre management, shall investigate and verify alleged violations of judicial duties by judges. Based on the review opinions of the Judicial Disciplinary Committee and in compliance with relevant regulations, they shall decide whether to impose disciplinary measures, and may impose organizational sanctions such as suspension from duty, postponement of promotion, reassignment from adjudicative or enforcement positions, removal from the roster of judges, dismissal, or ordering resignation, as well as impose disciplinary sanctions in accordance with applicable laws and regulations.
Based on the findings of the people’s court’s investigation, the Judicial Disciplinary Committee reviews, from a professional perspective, whether a judge has engaged in conduct that violates judicial duties, and issues an opinion determining whether such conduct constitutes intentional dereliction of duty, gross negligence, ordinary negligence, or no violation of duty.
The Procedural Rules also clearly set forth the rights enjoyed by the judge concerned in the judicial disciplinary proceedings. During the People’s Court’s investigation into alleged violations of judicial duties, the judge concerned is entitled to the rights of being informed, requesting recusal, making statements, presenting evidence, and offering a defense. When the Disciplinary Committee deliberates on disciplinary matters, the judge concerned has the right to attend the hearing and to make statements, present evidence, and offer a defense. If the judge concerned disagrees with the review opinion, he or she may, in writing, submit an objection through the department responsible for oversight to the Judicial Disciplinary Committee; the Committee shall review the objection and its grounds and issue a written decision. Should the judge concerned be dissatisfied with the disciplinary decision, he or she may apply to the People’s Court that rendered the decision for a review and is entitled to file an appeal with the next higher-level People’s Court. The judge concerned shall not be subjected to any heavier penalty as a result of filing for review or lodging an appeal.

Ministry of Public Security: Strengthen unified leadership, coordinate forces and resources, and deepen the advancement of public security cybersecurity and informatization efforts.
On the 25th, the Ministry of Public Security’s Leading Group Meeting on Cybersecurity and Informatization was held. State Councilor and Minister of Public Security Zhao Kezhi, who also serves as the head of the Leading Group, presided over the meeting and delivered a speech. The meeting emphasized the need to thoroughly implement the important instructions of General Secretary Xi Jinping on cybersecurity and informatization, strengthen the “Four Consciousnesses,” officely uphold the “Four Confidences,” and ensure the “Two Upholds.” It called for reinforcing unified leadership, coordinating resources and capabilities, and advancing public security work in cybersecurity and informatization, so as to better fulfill the responsibilities and missions entrusted by the Party and the people in the new era.
The meeting noted that, since the 18th National Congress of the Communist Party of China, the Party Central Committee with Comrade Xi Jinping at its core has, from the strategic perspective of developing socialism with Chinese characteristics and realizing the Chinese Dream of national rejuvenation, systematically planned and comprehensively advanced work on cybersecurity and informatization. General Secretary Xi Jinping has repeatedly issued important instructions and set forth clear requirements, providing us with a clear direction forward and fundamental guidance for carrying out cybersecurity work. We must earnestly study and thoroughly understand these directives, resolutely implement them, and ensure that our thinking and actions are fully aligned with the spirit of General Secretary Xi Jinping’s important instructions and the decisions and arrangements of the Party Central Committee, thereby further strengthening and improving public security work in the areas of cybersecurity and informatization. Establishing and perfecting the leading bodies for cybersecurity and informatization is an important measure to strengthen unified leadership over these efforts; it is an urgent necessity for proactively adapting to changing circumstances and effectively addressing cybersecurity risks, and it serves as a crucial guarantee for comprehensively elevating the level of public security work in cybersecurity and informatization. We must fully recognize the profound significance of establishing and refining these leadership bodies, coordinate the development and security of public security networks, integrate internal resources and capabilities within public security organs, enhance overall planning and coordinated guidance, and comprehensively raise the standard of public security cybersecurity and informatization, resolutely safeguarding cybersecurity in cyberspace.
The meeting emphasized that implementing the Party Committee’s cybersecurity accountability system should serve as a key leverage point to further advance public security cybersecurity and informatization efforts. It is essential to balance development with security, strengthen overall coordination, and ensure unified planning, deployment, promotion, and execution of public security cybersecurity and informatization initiatives, thereby effectively managing the work as an integrated whole and fostering a comprehensive operational framework. Focusing closely on the Public Security Bureau’s 14th Five-Year Plan, it is necessary to conduct thorough research and strategic planning for cybersecurity and informatization, clearly defining fundamental requirements, major objectives, specific tasks, and protective measures, so as to officely establish robust cybersecurity and information security safeguards. Efforts must be intensified to bolster scientific and technological innovation, deepen the development and application of big data in public security, and actively promote new smart policing models, thereby driving transformative improvements in the quality, efficiency, and momentum of public security work. It is imperative to maintain a holistic approach that integrates both domestic and international contexts, as well as online and offline arenas, fully leveraging the respective functions and roles of all departments and police units, consolidating diverse resources and capabilities, and forging a concerted effort to safeguard political security in cyberspace. Furthermore, publicity, interpretation, and implementation of the Regulations on the Security Protection of Critical Information Infrastructure must be strengthened, with a view to enhancing risk awareness, reinforcing bottom-line thinking, and ensuring the effective protection of critical information infrastructure, thus providing robust security guarantees for economic and social development and for building a cyber power. Finally, unified leadership over public security cybersecurity and informatization must be reinforced; specific tasks should be clearly defined, work plans refined, and all related initiatives coordinated and advanced in an integrated manner. All member units are required to conscientiously fulfill their responsibilities, collaborate closely, and ensure that all measures for public security cybersecurity and informatization are effectively put into practice.
Wang Xiaohong, Secretary of the CPC Committee of the Ministry of Public Security, Vice Minister in charge of daily operations, and Executive Deputy Head of the Ministry’s Leading Group for Cybersecurity and Informatization, attended the meeting and delivered a speech. Lin Rui, Member of the Ministry’s Party Committee, Vice Minister, and Deputy Head of the Ministry’s Leading Group for Cybersecurity and Informatization, also attended. Key responsible officials from the member units of the Leading Group participated in the meeting.

During the review of the draft amendment to the Company Law, members of the Standing Committee of the National People’s Congress proposed that…
Refine the company’s regulations on fulfilling social responsibility.
　On December 22, the 32nd session of the Standing Committee of the 13th National People’s Congress conducted a panel review of the draft amendment to the Company Law.
During deliberations, members of the Standing Committee of the National People’s Congress generally agreed that the draft amendment adopts a problem‑oriented approach, is grounded in China’s national conditions, and refines relevant institutional provisions. This will help to improve the modern enterprise system with Chinese characteristics, continuously optimize the business environment, strengthen the property rights protection regime, promote the sound development of the capital market, and advance high‑quality economic growth. At the same time, with respect to provisions on the independent director system and corporate social responsibility, participants put forward corresponding amendments and suggestions.
“The primary purpose of establishing the independent director system is to prevent stakeholders in listed companies from adopting decisions that favor the actual controller while harming the interests of public shareholders. However, at present, as a mechanism designed to enhance corporate governance, promote sound operations, and safeguard the rights and interests of small and medium-sized investors, the independent director system also faces numerous challenges and raises significant questions. As a foundational piece of legislation, the Company Law should leave room for companies to decide whether or not to appoint independent directors, and it should provide clear and specific regulations on how to establish such positions and ensure their effective functioning—for example, by adding provisions requiring listed companies to cooperate with independent directors in the performance of their duties,” said Committee Member Liu Xiuwen.
Committee Member Ouyang Changqiong pointed out that the issue of independent directors in listed companies has now become extremely serious. The draft amendment removes the specific administrative measures governing independent directors, yet fails to supplement or refine these provisions in the newly revised legal text—this is inadequate and will not address the pressing problems that must be resolved in practice. He recommends taking this opportunity to revise the law to further improve the institutional framework for independent directors of listed companies.
Committee Member Li Yuefeng stated that, during the course of the research, relevant parties reported that although companies’ fulfillment of social responsibilities has improved considerably, further strengthening is still needed—particularly in areas such as protecting consumer rights and safeguarding the rights and interests of enterprise employees, where significant room for improvement remains. In particular, this revision of the Company Law, set against the broader backdrop of China’s efforts to establish a new development paradigm, must fully take into account that corporate governance in China operates within an increasingly open market environment. The extent to which companies discharge their social responsibilities, to a certain degree, also shapes the overall image of Chinese enterprises and, by extension, of the market economy itself. Accordingly, it is recommended that the draft revision further refine the provisions related to corporate social responsibility, thereby providing robust legal safeguards for optimizing corporate governance and the market environment in China.
Committee Member Zhu Mingchun stated that, as state‑funded enterprises, they should set an exemplary and leading example in actively participating in public welfare activities and fulfilling their social responsibilities. In fact, state‑owned enterprises and state‑controlled enterprises, to varying degrees, assume certain social functions—functions that entail costs. Therefore, they should be required to publish annual social responsibility reports. This approach offers two key benefits: first, it explicitly encourages state‑funded enterprises to proactively discharge their social obligations; second, regular reporting helps the general public better understand the social duties these enterprises undertake and the contributions they make. Accordingly, it is recommended that the draft amendment add the following provision to Chapter VI, “Special Provisions for State‑Funded Enterprises”: “State‑funded enterprises shall actively engage in public welfare activities, fulfill their social responsibilities, and regularly publish social responsibility reports.”

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