JC Master Legal News Issue 1014

Key Takeaways for This Issue

The four major departments of the securities and finance sector issued statements on the same day, pledging to actively support the stable functioning of the capital market and attract more investment in securities.
On April 22, the People’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange each conveyed and implemented the spirit of the State Council Financial Stability and Development Committee’s special meeting, and deliberated on and outlined plans for the next phase of work. The meeting addressed key issues of market concern, including the capital markets, monetary policy, and reforms in the foreign exchange sector.
Pinning Down a “Zero-Carbon Future”: How Will the “Ark” Reach Its Carbon-Neutral Vision?
On April 22, 2022, coinciding with the 53rd World Earth Day and the approaching milestone of its first carbon neutrality commitment, Envision submitted its carbon‑neutrality “report card,” based on empirical data and carbon‑emission projections.
Accelerate the realization of the benefits of the large-scale value-added tax credit refund policy to help market entities overcome difficulties.
Tax and fee reductions are a crucial measure for withstanding downward economic pressures and ensuring the steady, healthy functioning of the economy; they provide effective support for businesses in coping with the impact of the pandemic and facilitating the gradual recovery of production and daily life; and they also serve as an important tool for addressing difficulties and navigating a complex and ever‑changing international environment.
Three departments have jointly issued a notice: cracking down hard on environmental crimes and illegal activities involving hazardous waste.
The Ministry of Public Security, the Ministry of Ecology and Environment, and the Supreme People’s Procuratorate recently jointly issued a notice to launch, starting in April, a six-month special campaign aimed at rigorously cracking down on environmental crimes and illegal activities involving hazardous waste, as well as on fraudulent manipulation of automatic monitoring data by key polluting entities.

Finance & Capital Markets
The four major departments of the securities and finance sector issued statements on the same day, pledging to actively support the stable functioning of the capital market and attract more investment in securities.
On April 22, the People’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange each conveyed and implemented the spirit of the State Council Financial Stability and Development Committee’s special meeting, and deliberated on and outlined plans for the next phase of work. The meeting addressed key issues of market concern, including the capital markets, monetary policy, and reforms in the foreign exchange sector.
Industry experts say that looking ahead, China’s economy and financial sector continue to exhibit strong resilience and dynamism, and the fundamental outlook for long-term growth remains unchanged. The coordinated efforts of multiple departments to convey and implement the spirit of the State Council Financial Stability and Development Committee’s special meeting will effectively guide market expectations and bolster investor confidence.
Actively support the stable operation of the capital market.
The China Banking and Insurance Regulatory Commission has stated that it will actively support the stable functioning of the capital market, facilitate two-way capital flows, and attract more foreign direct investment and securities investment.
Previously, the China Banking and Insurance Regulatory Commission stated that it would vigorously support direct financing and promote optimization of the financing structure. It also called on trust companies, wealth management offices, insurance companies, and other institutions to adopt a long-term investment mindset, engage in genuine professional and value‑oriented investing, and serve as key pillars in fostering the development of the capital market and safeguarding its stability.
The China Securities Regulatory Commission emphasized the need to promptly address market concerns, guide market expectations, and unleash market vitality and potential, thereby further enhancing market resilience and promoting the stable and sound functioning of the capital market.
Market participants expect that, going forward, regulatory authorities will introduce additional measures to enhance market attractiveness by deepening connectivity between domestic and overseas markets, further expanding the scope and range of eligible investments, and strengthening regulatory cooperation.
Maintain overall price stability.
The People’s Bank of China stated that it will implement a prudent monetary policy, maintain reasonably ample liquidity, and work to reduce overall financing costs, thereby fostering a favorable monetary and financial environment for coordinating epidemic prevention and control with economic and social development. It will attach great importance to and vigorously support agricultural production, as well as the smooth production and supply of key energy sources such as coal, oil, and natural gas, while keeping price levels broadly stable. With regard to monetary policy, PBOC Governor Yi Gang indicated that China will continue to pursue a prudent monetary policy and comprehensively employ a range of tools to provide greater support to small, medium, and micro enterprises, further strengthening its backing for the real economy.
On the issue of prices, Yi Gang stated that the primary objective of China’s monetary policy is to maintain price stability. This year, grain production and energy supply are of paramount importance for price stability. Financial services place a strong emphasis on agricultural production, as well as on the production and import of key energy sources such as coal, oil, and natural gas. As long as grain production and energy supply are secured, prices will remain within an appropriate range.
Wen Bin, chief researcher at China Minsheng Bank, stated that monetary policy will continue to prioritize stability, remain officely anchored in domestic conditions while taking both internal and external factors into account, and leverage both aggregate and structural tools to bolster support for the real economy and underpin the economy’s fundamentals. “At present, both domestic and international circumstances are becoming increasingly complex and volatile, necessitating that monetary policy carefully weigh and balance these considerations throughout its implementation,” he said.
Increase efforts to relieve the financial burdens of market entities.
Both the People’s Bank of China and the China Banking and Insurance Regulatory Commission have emphasized support for small and micro enterprises affected by the pandemic.
　The People’s Bank of China has stated that it will effectively leverage both the aggregate and structural functions of monetary policy, fully implement financial policies and measures to stabilize businesses and safeguard employment, and focus on supporting small and micro enterprises, as well as industries and vulnerable groups severely affected by the pandemic.
The China Banking and Insurance Regulatory Commission (CBIRC) emphasized stepping up efforts to relieve the financial burdens of market entities, strengthening credit support and insurance coverage for sectors and small, medium, and micro enterprises severely affected by the pandemic. It will spare no effort to ensure smooth and unimpeded freight and logistics operations, solidly advance financial measures to secure energy supply, and effectively safeguard the safety and stability of industrial and supply chains. Ye Yanfei, head of the CBIRC’s Policy Research Department, stated that banks and insurance institutions will be urged to actively support the stable production and reliable supply of essential goods and services, with particular emphasis on bolstering financial support for agricultural production, processing of key agricultural products, and the development of storage, preservation, and cold-chain logistics infrastructure, while continuing to enhance the coverage and service quality of agricultural insurance. At the same time, the banking and insurance sectors will be encouraged to provide full‑scale support for ensuring smooth and uninterrupted freight and logistics operations, increasing financial backing and offering targeted assistance to priority groups.
Guide financial institutions to increase medium- and long-term loans to the manufacturing sector.
The China Banking and Insurance Regulatory Commission has also laid out plans for prioritizing subsequent financial support.
Specifically, this includes: enhancing financial services for new urban residents; strengthening financial support for regions and industries that employ a large number of new urban residents; and effectively meeting their financial needs in areas such as entrepreneurship and employment, home purchase and housing stability, education and training, and healthcare and elderly care. In coordination with efforts to issue local government special-purpose bonds and provide project‑related financing, we will support the accelerated implementation of major projects and the development of urban–rural infrastructure. We will also refine the financial support system for innovation, guide financial institutions to increase medium- and long-term loans to the manufacturing sector, and encourage banking and insurance institutions to better serve enterprises engaged in tackling critical core technologies and “specialized, refined, distinctive, and innovative” offices. Finally, we will optimize financial support for key consumption sectors to more effectively stimulate and expand consumer spending.
According to the latest data released by the China Banking and Insurance Regulatory Commission, from January to March, new domestic loans totaled RMB 8.6 trillion, an increase of RMB 445.5 billion year on year. The credit structure continued to improve: manufacturing loans rose sharply compared with the same period last year, with new additions reaching RMB 1.8 trillion—1.7 times the increase recorded in the corresponding period last year. The outstanding balance of inclusive small and micro enterprise loans stood at RMB 20.6 trillion, up 22.6% year on year, 11.5 percentage points higher than the average growth rate of all loans. Meanwhile, the outstanding balance of loans to high‑tech industries exceeded RMB 7 trillion.
Facilitating cross-border trade and investment
In the foreign exchange sector, the State Administration of Foreign Exchange has stated that it will further deepen reform and opening-up in this area, facilitate cross-border trade and investment, optimize foreign-exchange services with a particular focus on small and medium-sized enterprises, and ensure the effective implementation of existing foreign-exchange support policies.
In terms of facilitating cross-border trade and investment, the People’s Bank of China and the State Administration of Foreign Exchange recently issued the “Notice on Providing Financial Services to Support Epidemic Prevention and Control and Economic and Social Development,” which also calls for enhancing the convenience of cross-border investment and financing for investors. The notice promotes the harmonization of market access standards between the interbank and exchange‑traded bond markets, streamlines entry procedures, and improves the management of funds used by overseas investors in the domestic bond market. It further optimizes fund‑management arrangements for bonds issued in China by foreign entities (Panda bonds), allowing affiliated domestic entities of Panda bond issuers to borrow corresponding Panda bond proceeds on a need‑based basis. In addition, it seeks to make it even more convenient for Qualified Foreign Institutional Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII) to handle the registration of funds for domestic securities and futures investments.
Regarding the optimization of foreign exchange services for small and medium-sized enterprises, Wang Chunying, Deputy Director of the State Administration of Foreign Exchange, stated that this involves two key areas: First, enhancing corporate exchange-rate risk management services to reduce hedging and value‑preservation costs. Financial institutions are required to promptly respond to the exchange‑rate hedging needs of market entities such as foreign‑trade companies, streamline the management and delivery of FX derivatives products, and strengthen enterprises’ ability to navigate exchange‑rate volatility. Second, streamlining cross‑border transaction procedures to provide businesses with more efficient and convenient cross‑border fund settlement services. By further advancing the digitalization of cross‑border operations, banks can offer cross‑border settlement services through online, paperless processes, including the electronic verification of supporting documents.

Uncertainty surrounding Chinese concept stocks is expected to be resolved soon.
On April 21, U.S. local time, another 17 companies, including Li Auto, Best Inc., and KE Holdings, were added to the U.S. “pre-delisting list,” sending Chinese stocks listed in the U.S. sharply lower that day. In fact, investors need not be overly concerned.
Regarding the inclusion on the list, a responsible official from the relevant department of the China Securities Regulatory Commission has publicly explained that this is a standard procedure under U.S. regulators’ implementation of the Foreign Company Accountability Act and constitutes a routine step. However, being placed on the list does not equate to delisting. Whether companies on the list will ultimately be delisted within the next two years will depend entirely on the progress and outcome of China–U.S. audit regulatory cooperation.
At present, China and the Public Company Accounting Oversight Board of the United States are holding multiple rounds of talks, which are progressing smoothly. On the evening of April 21, at the “China’s Capital Market Opening-Up in Progress” sub-forum of the Boao Forum for Asia 2022 Annual Conference, Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission, stated that China will continue to expand high‑level opening-up. He expressed confidence that uncertainties surrounding Chinese concept stocks will be resolved and that a cooperation agreement will be reached shortly.
On the legal front, the China Securities Regulatory Commission recently issued a public consultation on the “Regulations on Strengthening Confidentiality and Archival Management for Domestic Enterprises Issuing Securities Abroad and Listing.” These regulations provide institutional safeguards for cross-border cooperation, including joint inspections.
Rational investors do not “believe every rumor” or get swept up by extreme emotions. The current international environment is fraught with uncertainty, and geopolitical tensions are further intensifying global inflationary pressures. However, from a fundamental economic perspective, China’s economy remains highly resilient and benefits from a vast domestic market. In the first quarter, GDP grew 4.8% year on year, marking a modest rebound from the fourth quarter of last year, and the underlying trend of long-term economic improvement remains unchanged.
China’s confidence and resolve in pursuing reform and opening-up will remain unwavering. The country will continue to encourage greater participation by foreign-invested institutions in the Chinese market and strengthen international cooperation on financial regulation. Data show that from 2019 to 2021, cumulative net inflows of foreign capital into the A-share market totaled RMB 887.4 billion, with foreign investors currently accounting for approximately 4.5% of the market. Net foreign inflows are expected to remain substantial this year as well.
The listing of Chinese concept stocks in the United States has created a win-win situation for Chinese enterprises, emerging industries, and international investors. China’s stance of supporting companies of all types to list overseas remains unchanged, and a proper resolution of issues facing Chinese concept stocks serves the common interests of both the Chinese and U.S. markets as well as global investors.

A major milestone in the personal pension system has been achieved, affecting the interests of over one billion people.
On April 21, the General Office of the State Council officially released the “Opinions on Promoting the Development of Individual Pension Schemes.” The document was reviewed and approved at the 23rd meeting of the Central Commission for Comprehensively Deepening Reform on December 17 last year. According to reports, several accompanying implementation rules are currently being drafted. Industry observers expect the “Opinions” to have a far-reaching impact.
So‑called individual pensions are regarded as the third pillar of the pension system, representing the portion of retirement security borne by individuals. Together with the state basic pension insurance (the first pillar) and enterprise occupational annuities (the second pillar), they form the three pillars of the overall pension system.
Notably, according to the scope of participation set forth in the “Opinions,” workers who are enrolled in either the urban employee basic pension insurance or the urban and rural resident basic pension insurance within China are eligible to join the individual pension scheme. According to data previously released by the Ministry of Human Resources and Social Security, as of the end of November 2021, the total number of participants in the national basic pension insurance had reached 1.025 billion.
From the perspective of the institutional framework, the Opinions stipulate that the individual pension scheme operates under a personal account system, with contributions borne entirely by the participants and accumulated on a fully funded basis. Participants establish their individual pension accounts through the Individual Pension Information Management Service Platform (hereinafter referred to as the “Information Platform”). The individual pension account serves as the foundation for participating in the individual pension system and for accessing tax‑preferential policies.
According to the Opinions, the annual cap on individual pension contributions is RMB 12,000. The Ministry of Human Resources and Social Security and the Ministry of Finance will, as appropriate, adjust this contribution ceiling in light of factors such as the level of economic and social development and the progress of a multi-tiered, multi-pillar pension insurance system.
On the 21st, the China Securities Regulatory Commission stated that the “Opinions” will help accelerate the establishment of a new development pattern in which pension funds, the capital market, and the real economy engage in positive interaction and coordinated growth. The CSRC will promptly formulate and issue supporting rules and regulations for public‑offering fund investments under the individual pension scheme, ensuring the safe and compliant operation of pension‑fund investments and promoting the high‑quality development of individual pensions.

Has the RMB exchange rate plummeted? The State Administration of Foreign Exchange issued a strong statement: market expectations remain stable! The People’s Bank of China and the two regulatory commissions have all weighed in.
On the 22nd, Wang Chunying, Deputy Director and Spokesperson of the State Administration of Foreign Exchange, stated at a press conference held by the State Council Information Office on “Foreign Exchange Receipts and Payments for the First Quarter of 2022” that, in recent years, the renminbi exchange rate has become increasingly flexible, effectively and promptly absorbing external pressures. Market expectations have remained stable, and foreign-exchange market transactions have been rational and orderly. At present, domestic entities’ foreign-exchange deposits exceed US$700 billion, also reaching historically high levels. Enterprises typically choose opportune moments to convert their foreign-exchange holdings; this rational trading behavior—“converting at higher rates and purchasing at lower rates”—can help moderate some exchange-rate adjustments, thereby contributing to the overall stability of the renminbi exchange rate and the smooth functioning of the foreign-exchange market. Furthermore, based on current indicators for renminbi–foreign-exchange forward contracts and options, there are no clear implied expectations of either appreciation or depreciation.
On the same day, the People’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange each convened meetings to convey and study the important instructions of the CPC Central Committee and the State Council on ensuring the smooth functioning of current economic and social work, and to implement the arrangements adopted at the special meeting of the Financial Stability and Development Committee of the State Council.
The People’s Bank of China emphasized that, on the basis of earnestly implementing the policies already introduced, it will further intensify its efforts, step up support for the real economy, and safeguard both market and economic stability. The China Banking and Insurance Regulatory Commission stated that it will further strengthen and improve financing supply, striving to foster a healthy cycle in the national economy, support the stable functioning of capital markets, facilitate two-way capital flows, and attract more foreign direct investment and portfolio investment. The China Securities Regulatory Commission underscored the need to promptly address market concerns, guide market expectations, unleash market vitality and potential, further enhance market resilience, and promote the steady and sound operation of the capital markets. Meanwhile, the State Administration of Foreign Exchange stressed the importance of deepening reform and opening-up in the foreign exchange sector, facilitating cross-border trade and investment, optimizing foreign exchange services with a particular focus on small and medium-sized enterprises, and ensuring effective implementation of existing foreign exchange support measures. It also called for strengthened analysis and assessment of the economic and financial landscape, enhanced expectation management, and the reinforcement of a dual‑pronged regulatory framework—combining macroprudential oversight with micro‑supervision—to maintain the stable functioning of the foreign exchange market and safeguard national economic and financial security, thereby marking the successful convening of the 20th National Congress of the Communist Party of China with concrete actions.
On April 22, the offshore yuan fell below the 6.54 level against the U.S. dollar during trading, dropping more than 600 pips in the day and hitting its lowest since May last year; meanwhile, the onshore yuan slipped beneath the 6.5 mark, declining by over 500 pips within the session.

The Shanghai and Shenzhen stock exchanges have jointly issued new rules, further advancing the reform of the corporate bond issuance registration system and strengthening investor protection mechanisms.
On April 22, the Shanghai and Shenzhen Stock Exchanges jointly issued four fundamental business rules, including the “Rules for the Review of Corporate Bond Issuance and Listing,” the “Corporate Bond Listing Rules (Revised in 2022),” the “Rules for the Public Offering and Listing of Corporate Bonds (Revised in 2022),” and the “Measures for the Administration of Investor Suitability in the Bond Market (Revised in 2022).”
Following the release of this batch of rules, the bond markets of the Shanghai and Shenzhen Stock Exchanges have essentially established a comprehensive and independent regulatory framework that fully covers all key business areas, including issuance and listing review, underwriting, listing and trading, market operations, and investor protection. These measures further standardize and refine the review process for bond issuance and listing, strengthen the accountability of market participants, safeguard investors’ legitimate rights and interests, and promote the stable and sound development of the exchange‑listed bond market.
That same evening, the National Association of Financial Market Institutional Investors of China also announced that, in order to further facilitate bond issuance by high-quality enterprises, reduce redundant disclosure requirements, and enhance the quality of information disclosure, it will pilot a “Continuous Issuance Program” for debt financing instruments.

Commercial & Corporate
China Banking and Insurance Regulatory Commission: Supports the improvement of housing demand and rigid housing needs, and actively safeguards the stable operation of the capital market.
On April 22, the Party Committee of the China Banking and Insurance Regulatory Commission convened a meeting to thoroughly study and implement the guiding principles of the CPC Central Committee, fulfill the requirements of the Financial Stability and Development Committee’s special meeting, analyze the current economic and financial situation, and outline priorities for the next phase of work.
The meeting noted that China’s economic and social development has entered a new stage. Despite encountering certain difficulties and challenges, under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, China’s reform and opening-up and modernization drive continue to enjoy robust vitality and momentum. The international economic and financial communities remain optimistic about China’s growth potential, and this overarching trend is unlikely to change. The CBIRC system must conscientiously uphold the Party Central Committee’s centralized and unified leadership over financial work, resolutely implement the decisions and arrangements of the CPC Central Committee and the State Council, coordinate epidemic prevention and control with economic and social development, promptly put into practice all established financial policies, take proactive responsibility, forge ahead with vigor, and make every effort to promote high-quality economic and social development, thereby welcoming the successful convening of the 20th National Congress of the Communist Party of China with concrete actions.
The meeting emphasized the need to further strengthen and improve financing supply, striving to foster a healthy cycle in the national economy. First, intensify efforts to relieve financial pressures on market entities, providing enhanced credit support and insurance coverage to sectors and small, medium, and micro enterprises severely affected by the pandemic. Second, elevate financial services for new urban residents, bolstering financial support for regions and industries that absorb large numbers of them, thereby effectively meeting their needs in areas such as entrepreneurship and employment, home purchase and housing stability, education and training, and healthcare and elderly care. Third, coordinate closely with local governments on the issuance of special-purpose bonds and the provision of project‑related financing, supporting the accelerated implementation of major projects and the development of urban–rural infrastructure. Fourth, refine the financial support system for innovation, guiding financial institutions to increase medium- and long-term loans to the manufacturing sector and encouraging banks and insurers to better serve enterprises engaged in tackling critical core technologies and “specialized, refined, distinctive, and innovative” offices. Fifth, optimize financial support for key consumption sectors, more precisely targeting measures to stimulate and expand consumer spending. Sixth, provide full‑scale support to ensure smooth and unimpeded freight and logistics operations, diligently carry out financial measures to secure energy supplies, and robustly safeguard the safety and stability of industrial and supply chains. Seventh, continuously improve the long‑term mechanism for maintaining stable land prices, housing prices, and market expectations in the real estate sector, supporting both demand‑driven and essential housing needs, and promoting a healthy cycle and sound development of the real estate industry. Eighth, actively support the steady functioning of capital markets, facilitate two‑way capital flows, and attract greater foreign direct investment and portfolio investment. Ninth, uphold the principle of “unwavering commitment to both public and private sectors,” appropriately setting red and green lights to promote the healthy development of the platform economy. Tenth, officely hold the bottom line of preventing systemic financial risks, making effective use of local government special‑purpose bonds to replenish the capital of small and medium‑sized banks, further strengthening the Financial Stability Guarantee Fund, weaving a tighter national financial safety net, and promptly implementing risk‑management measures to ensure economic and social stability.

The fertilizer industry remains in a robust upturn, with continued optimism regarding the future performance of fertilizer companies.
Fertilizers: Affected by the COVID‑19 pandemic, and amid heightened concerns over food security and relatively unstable supply chains, international grain prices have risen across the board since 2020. Against this backdrop of high grain prices, farmers worldwide have generally become more inclined to plant, driving a sustained increase in global fertilizer demand. Meanwhile, on the supply side, Russia— a major producer and exporter of fertilizers—has faced sanctions from Western countries, which have significantly curtailed global fertilizer supplies. Taken together, the resulting global shortage of fertilizers has led to further price increases in 2022 compared with 2021.
Potash Fertilizer: Following the imposition of sanctions by European and U.S. countries on Belarus and Russia, nearly 40% of global potash production is expected to be affected, leading to a broad contraction in potash supply. Under the combined influence of rising demand and constrained supply, potash prices have surged. As of April 22, the average import price of domestic potash stood at RMB 4,808 per ton, up 28.3% from the beginning of 2022. Benefiting from this price increase, potash producers are poised to see a significant boost in their financial performance.
Phosphate Fertilizers: In March 2022, China’s exports of monoammonium phosphate (MAP) and diammonium phosphate (DAP) surged month-on-month, increasing by 111% and 233%, respectively. This substantial rise in phosphatic fertilizer exports signaled a gradual easing of domestic export restrictions. As of April 22, international prices for MAP and DAP were 108% and 117% higher, respectively, than domestic prices. With the progressive liberalization of domestic phosphatic fertilizer exports, leading companies, leveraging their robust supply capacity, are likely to secure priority access to export quotas, thereby fully capturing the benefits of elevated global prices and bolstering their financial performance.
Nitrogen Fertilizer: With global urea operating rates remaining low and Russian exports of nitrogen fertilizer and natural gas constrained, the global supply shortage has intensified. Since Q4 2021, the price spread between international and domestic urea has widened significantly. Looking ahead, the global urea supply deficit is unlikely to be resolved in the short term, keeping international urea prices at elevated levels. As export restrictions are gradually lifted, domestic urea producers’ profitability is expected to improve. Moreover, with domestic coal prices trending upward, the cost advantage of producing urea from natural gas has become even more pronounced.

Pinning Down a “Zero-Carbon Future”: How Will the “Ark” Reach Its Carbon-Neutral Vision?
One year ago, on the 52nd World Earth Day, Envision Group (hereinafter referred to as “Envision”) pledged to achieve carbon neutrality across its global operations by the end of 2022 and carbon neutrality across its value chain by the end of 2028, thereby becoming the first Chinese company to commit to achieving full‑value‑chain carbon neutrality at such an early date.
On April 22, 2022, coinciding with the 53rd World Earth Day and the approaching milestone of its first carbon neutrality commitment, Envision submitted its carbon‑neutrality “report card,” based on empirical data and carbon‑emission projections.
The Farvision 2022 Carbon Neutrality Action Report (hereinafter referred to as the “Report”) indicates that in 2021, Farvision’s total value-chain emissions (Scope 1, Scope 2, and Scope 3) amounted to approximately 1.8566 million tonnes, with roughly 94% of these greenhouse gas emissions originating from value-chain activities outside of its own operations. Within Farvision’s operational scope (Scopes 1 and 2), greenhouse gas emissions totaled 79,600 tonnes of CO₂ equivalent, of which emissions from purchased electricity accounted for 64% of the Group’s total emissions, while emissions from purchased steam and heat represented about 30%.
Qiu Lin, Chief Scientist of Envision’s Zero-Carbon Products, told a reporter from China Business News: “In 2021, Envision reduced its carbon dioxide emissions by approximately 50,000 tonnes, accounting for 39% of the group’s total annual carbon footprint. Meanwhile, the group’s operational greenhouse gas emissions fell by 4.4% compared with 2020.” Qiu Lin also emphasized to the reporter: “All of Envision’s emission-reduction efforts were implemented while sustaining organic business growth. Had we taken no mitigation measures in 2021, the group’s operational carbon emissions would have amounted to roughly 129,000 tonnes.”
In addition, for a zero‑carbon future, Envision has even more long‑term visions and commitments. The report states that, building on the achievement of carbon neutrality across its entire value chain by 2028, Envision will continue to advance from carbon neutrality toward net‑zero emissions. Guided by the Science Based Targets initiative’s (SBTi) Corporate Net Zero Standard, Envision has become the first company in China to set a long‑term net‑zero emissions target, further articulating a clear roadmap for achieving net‑zero.
Global Business Operations Carbon Neutrality
At present, rather than focusing on the future of value-chain emissions, Farvision’s more pressing priority is to deliver on its near-term goal: achieving carbon neutrality across its global operations by the end of 2022.
“In fact, Farizon faces significant pressure to reduce its emissions. According to year‑end projections, as the company’s newly built wind turbine and battery manufacturing facilities worldwide come online one after another, its operational carbon emissions in 2022 will more than double compared with 2020,” said Sun Jie, Vice President of Farizon Intelligence and General Manager of Farizon’s Carbon Management Business, in an interview with reporters. “However, based on empirical data and carbon‑emission estimates, we have already identified pathways and concrete implementation steps across four key dimensions to achieve our reduction targets.”
The report indicates that, to fulfill its commitment to achieve operational carbon neutrality by 2022, Envision will implement four key initiatives: enhancing energy efficiency, developing renewable energy generation, engaging in green electricity trading and purchasing green certificates, and pursuing carbon offsets and carbon removal.
“Among these measures, improving energy efficiency and developing renewable‑energy power generation are direct emissions‑reduction initiatives,” said Sun Jie. He added that, by 2022, the share of carbon emissions reduced through Envision’s self‑generated green electricity is expected to rise from 2.4% in 2021 to 13% of the company’s annual emissions baseline. Furthermore, the total amount of renewable‑energy electricity consumed throughout 2022 will reach approximately 59,000 MWh—equivalent to the annual electricity consumption of a town with a population of about 10,000. At the same time, leveraging its zero‑carbon industrial parks, Envision will supply substantial amounts of renewable‑energy power to newly built factories, striving to achieve net‑zero greenhouse gas emissions for these facilities.
In addition to direct emissions reductions, Envision will also achieve further reductions by purchasing green electricity credits. According to the report, for emissions associated with purchased electricity, Envision will adopt location‑specific strategies, exploring optimal procurement channels for green power—including green certificates—in China, Japan, the United States, and other regions. By collaborating closely with local grid operators and power utilities, Envision aims to increase the share of emissions reductions from green electricity transactions and green certificate purchases—from 26% to 62%—relative to its annual carbon‑emission baseline.
For the remaining emissions that cannot be reduced through short-term measures, Envision will purchase high-quality carbon credits to offset them, thereby achieving carbon neutrality for its overall operations in 2022.
Building a Digital “Ark”
It is worth noting that the aforementioned carbon‑reduction achievements of Envision would not have been possible without the support of its digital infrastructure.
In 2021, Envision officially launched its digital carbon management system—the EnOS Carbon Management System. According to reports, the Envision Carbon Management System leverages the EnOS smart IoT operating system and integrates technologies such as artificial intelligence, the Internet of Things, big data, and blockchain to provide real-time carbon footprint monitoring, automatically generate carbon emission reports, and simulate and optimize decarbonization pathways. It also enables seamless access to external green‑energy markets for purchasing renewable electricity, green certificates (I-RECs), carbon offsets, CCERs, and other carbon credits.
According to reports, at present, both the popular zero‑carbon industrial park model and zero‑carbon products rely on Fangcheng’s energy‑carbon management system as their technological backbone.
Zhang Yuan, Senior Director of Corporate Strategy at Envision, told reporters: “With regard to the industrial park model, Envision has set a development goal to establish 100 zero‑carbon industrial parks worldwide within the next decade. The replicability and global adaptability of Envision’s zero‑carbon industrial parks stem from their modular design. Currently, the platform comprises three core modules: a next‑generation power system, a green industrial cluster, and a zero‑carbon digital operating system aligned with international standards.”
On April 8, 2022, the world’s first zero‑carbon industrial park—the first phase of Envision’s Ordos Zero‑Carbon Industrial Park—was completed and put into operation. With the park operating on a 100% green, zero‑carbon energy supply, supported by an upstream–downstream supply‑chain cluster and a traceable, end‑to‑end zero‑carbon closed loop, zero‑carbon products have become a reality.
On April 22, in addition to the emissions‑reduction pathway, the report also unveiled the world’s first batch of “zero‑carbon batteries.” According to the report, using a life‑cycle assessment (LCA) approach, Envision AESC’s EAHE2201A lithium‑ion power battery supplied to Mercedes‑Benz has undergone a carbon‑footprint analysis spanning from raw‑material extraction through production. The resulting emissions have been offset through the use of green electricity and the purchase of carbon credits, earning the “Carbon Neutrality Certification (PAS 2060)” issued by the internationally recognized authority TÜV SÜD.
The report indicates that, through the Envision Ark platform, carbon emissions across the entire lifecycle of battery products—spanning raw materials, manufacturing and processing, packaging, and transportation—are tracked in real time along the supply chain. In the future, every battery produced within Envision’s Zero-Carbon Industrial Park will be issued a “Zero-Carbon Green Code,” serving as a green‑certification passport for global trade and helping these products overcome trade barriers to enter international markets.
“The zero‑carbon green code encapsulates information on a product’s material and energy flows, which are output and presented in accordance with international standards and requirements, thereby meeting trade compliance and enabling barrier‑free communication,” Qiu Lin added to the reporter.

Taxation TAXATATION
Notice from the State Taxation Administration and nine other departments on further strengthening support for export tax rebates to promote the steady development of foreign trade.
To the People’s Governments of all provinces, autonomous regions, and municipalities directly under the central government, and to the relevant departments of the State Council:
To thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council, help foreign trade enterprises alleviate their difficulties, promote the steady development of imports and exports, and better leverage the effectiveness of export tax rebates—policies that are universally beneficial, equitable, and in line with international rules—and to optimize the business environment for foreign trade from multiple perspectives, with the approval of the State Council, the relevant matters are hereby notified as follows:
I. Further strengthen policy support for businesses.
(1) Strengthen the coordination between export credit insurance and export tax rebate policies. For export transactions for which enterprises have filed tax rebate applications but have been unable to collect foreign exchange, any indemnity received under export credit insurance shall be treated as foreign exchange collected and shall be eligible for export tax rebates. (The Ministry of Commerce, the State Taxation Administration, the China Banking and Insurance Regulatory Commission, and other relevant departments shall assume responsibilities in accordance with their respective duties.)
(II) Refine the export tax rebate policy for processing trade. To support the development of processing‑trade enterprises and further alleviate their burden, following the alignment of export and input tax rates, enterprises will be permitted to credit against their VAT liabilities any excess input VAT that was previously transferred out due to discrepancies between export and input tax rates or other reasons. (The Ministry of Finance, the State Taxation Administration, and other relevant departments shall assume responsibilities in accordance with their respective duties.)
(3) Unlock the potential of the outbound tax‑refund policy. Further expand the geographical coverage of the tax‑refund scheme for overseas travelers making purchases upon departure. Optimize the layout of tax‑refund stores, encourage more high‑quality merchants to join the program, and foster a stronger agglomeration effect. Actively implement convenient payment options and “buy‑and‑refund immediately” measures to boost overseas tourists’ spending on travel and shopping in China, thereby promoting the standardized development of the outbound tax‑refund system. (The Ministry of Finance, the State Taxation Administration, the General Administration of Customs, the Ministry of Culture and Tourism, the Ministry of Commerce, and other relevant departments shall assume responsibilities according to their respective duties.)
II. Further Enhancing the Convenience of Tax Refund Processing
(4) Vigorously promote “non-contact” processing of export-related services. Optimize and expand the use of information systems such as the International Trade “Single Window” and the Electronic Tax Bureau, and actively support and guide exporting enterprises in adopting non-contact methods to handle relevant procedures in port and cross-border trade. In principle, after submitting electronic declaration data through online channels, exporting enterprises may apply for export tax rebate filings and other related matters without needing to submit paper documents. Once the tax authorities and other relevant departments have verified that the electronic data is in order, the corresponding procedures will be completed, and the outcome will be communicated online. (The State Taxation Administration, the General Administration of Customs, the Ministry of Transport, and other agencies shall assume responsibilities according to their respective duties.)
(5) Continue to streamline the documentation required for export tax rebates. Strengthen data sharing and coordinated management among customs, tax authorities, and other relevant departments, further reducing the documentation needed for filing export tax rebate applications for consigned goods, for goods exported under financial leasing arrangements, and for duty‑free write‑off of processing‑on‑commission goods. (The State Taxation Administration, the General Administration of Customs, and other agencies shall assume responsibilities in accordance with their respective duties.)
(6) Actively promote the electronic filing of export‑tax‑rebate supporting documents. Support exporting enterprises in flexibly choosing either electronic or paper‑based methods to retain and store documents such as bills of lading for exported goods, thereby enhancing the efficiency of document collection and organization. Further optimize and improve the functionality of tax information systems to proactively create favorable conditions for the electronic verification of filed documents. (The State Taxation Administration, the Ministry of Transport, and other relevant departments shall assume responsibilities according to their respective duties.)
(7) Significantly enhance the level of intelligent export‑tax‑rebate filing. Further improve the convenience of export‑tax‑rebate declarations by enabling enterprises, when filing through the tax information system, to automatically retrieve their own export customs‑declaration data, and, when filing via the International Trade “Single Window,” to automatically access invoice information for goods they have purchased for export. Continuously expand the scope of “no‑manual‑entry” filing for export‑tax‑rebate declarations, creating favorable conditions for enterprises to file claims efficiently and further boosting filing productivity. (The State Taxation Administration, the General Administration of Customs, and other relevant authorities shall assume responsibilities in accordance with their respective duties.)
(8) Continuously enhance the quality and efficiency of export tax rebate processing. Building on the 2021 average processing time of seven working days, further shorten the turnaround time to six working days in 2022. Fully implement paperless refund procedures to further improve the efficiency of tax refunds. (Led by the State Taxation Administration, with the Ministry of Commerce, the People’s Bank of China, and other relevant departments responsible according to their respective duties.)
(9) Further enhance the efficiency of customs clearance for returned export goods. Deepen cooperation between the customs and tax authorities, actively promote information sharing on the “Certificate of Tax Paid/Unrefunded for Exported Goods,” and, when processing customs clearance for returned exports, eliminate the requirement for enterprises to submit paper certificates where relevant information can be verified; instead, verify the shared information, thereby helping enterprises expedite the return‑export clearance process. (Led by the State Taxation Administration, with the General Administration of Customs and other relevant agencies responsible according to their respective duties.)
(10) Optimize and streamline the procedures for handling export tax rebates. For export tax rebate applications where risks are manageable, adopt a “deficiency‑acceptance” approach to process the rebate first, with on-site verification to be completed afterward. Further simplify the documentation required when applying for the issuance of export tax rebate certificates, and actively promote the full paperless processing of such certificates. When enterprises declare export tax rebates for goods exported but are unable to collect foreign exchange on schedule due to natural disasters, epidemics, or other factors, the requirement to submit supporting evidence in advance shall be waived; enterprises may instead retain relevant documentation for record‑keeping purposes. At the same time, in line with the principles of inclusiveness, prudence, and controllable risks, appropriately broaden the scope of acceptable supporting documentation. (Led by the State Taxation Administration, with the Ministry of Commerce and other departments responsible according to their respective duties.)
III. Further Optimizing the Business Environment for Export Enterprises
(11) Assist enterprises in enhancing the efficiency of their export‑related procedures. Expand outreach channels and refine the content of targeted notifications to ensure that exporting companies are promptly informed of the progress of customs clearance, customs finalization, tax refunds, and other related matters. Guide enterprises in improving internal management efficiency, further reducing the time required for collecting and processing export documentation, and accelerating the submission of export tax refund applications. (The Ministry of Commerce, the General Administration of Customs, the State Taxation Administration, and other relevant authorities shall assume responsibilities according to their respective duties.)
(12) Support the healthy, sustainable, and innovative development of cross-border e‑commerce. Facilitate the management of returns and exchanges for cross-border e‑commerce imports and exports. Encourage and support eligible cross-border e‑commerce exporters to actively avail themselves of export tax rebate policies. Accelerate the development of online integrated service platforms in cross-border e‑commerce pilot zones across the country. Standardize tax administration for cross-border e‑commerce retail exports, guide exporting enterprises to register export‑goods information on these online integrated service platforms and file tax‑exempt declarations, and promote the sound development of cross-border e‑commerce export trade. (The Ministry of Commerce, the General Administration of Customs, the State Taxation Administration, the State Administration of Foreign Exchange, and other relevant authorities shall assume responsibilities according to their respective duties.)
(13) Guide the sound development of integrated foreign trade service enterprises. Deepen the implementation of the Administrative Measures for Agency-Based Tax Refund Services, further enhancing the efficiency of centralized registration for agency‑based tax refunds and on-site verification. Encourage these enterprises to file export tax refund applications in a paperless manner and to manage export tax refund documentation electronically. Strengthen efforts to foster the creditworthiness of integrated foreign trade service enterprises, provide guidance on optimizing internal risk management, and elevate the level of risk control for centralized agency‑based tax refunds. (The Ministry of Commerce, the State Taxation Administration, and other relevant departments shall assume responsibilities according to their respective duties.)
(14) Strengthen information sharing to guide enterprises in conducting business with integrity. Enhance the exchange of credit‑rating information among customs, tax, foreign‑exchange and other relevant authorities; actively engage market‑based credit rating agencies to provide high‑quality rating services; improve the timeliness of dynamic adjustments to the management categories of export‑tax‑rebate enterprises; and, in accordance with laws and regulations, deepen incentives for compliance and sanctions for non‑compliance. Guide exporting enterprises to promptly and proactively rectify any breaches of trust, thereby raising their awareness of integrity and promoting sound, standardized development. (The Ministry of Commerce, the People’s Bank of China, the General Administration of Customs, the State Taxation Administration, the State Administration of Foreign Exchange, and other departments shall assume responsibilities as assigned.)
(15) Actively foster a fair and equitable business environment. Strengthen inter‑agency collaboration among tax authorities, public security organs, customs, the People’s Bank of China, and foreign exchange regulators, and promote a shift from post‑event crackdowns on illegal and criminal activities such as issuing false invoices to obtain tax fraud to proactive, real‑time, precision‑based prevention. Intensify joint enforcement efforts against fraudulent exports and other illicit practices aimed at obtaining export tax rebates, thereby creating a more favorable business climate for exporting enterprises. (The Ministry of Public Security, the People’s Bank of China, the General Administration of Customs, the State Taxation Administration, and the State Administration of Foreign Exchange shall assume responsibilities in accordance with their respective mandates.)
All regions and departments should further build consensus, strengthen policy coordination and alignment, and earnestly fulfill their responsibilities. They should, in light of their own local and sectoral circumstances, carefully plan and implement relevant measures. The State Taxation Administration, in collaboration with relevant departments, will enhance guidance, promptly summarize and disseminate best practices, and work through consultations to address challenges in policy implementation, thereby ensuring that all policies and measures are effectively put into practice and yield tangible results.

Accelerate the realization of the benefits of the large-scale value-added tax credit refund policy to help market entities overcome difficulties.
Tax and fee reductions are a crucial measure for withstanding downward economic pressures and ensuring the steady, healthy functioning of the economy; they provide effective support for businesses in coping with the impact of the pandemic and facilitating the gradual recovery of production and daily life; and they also serve as an important tool for addressing difficulties and navigating a complex and ever‑changing international environment.
Recently, amid sporadic outbreaks of COVID‑19 and persistently high commodity prices, market entities have faced significant challenges. In response, the State Council has called for accelerating the implementation of this year’s 1.5 trillion yuan in value‑added tax credit refunds to help alleviate businesses’ difficulties.
To promptly unlock the benefits of the large-scale value-added tax (VAT) credit refund policy and enhance its effectiveness in helping market entities overcome difficulties, on April 20, the Ministry of Finance and the State Taxation Administration issued the “Announcement on Further Accelerating the Implementation of the VAT End-of-Period Credit Refund Policy” (hereinafter referred to as the “Announcement”).
The Notice requires accelerating the implementation of the carryforward VAT refund policy for small and micro enterprises. In accordance with the aforementioned provisions, promptly process carryforward VAT refunds for such enterprises, expedite the refund process on a voluntary application basis, and actively ensure the timely and centralized refund of existing carryforward VAT credits for micro and small enterprises by April 30, 2022, and June 30, 2022, respectively.
The Announcement stipulates that the outstanding input VAT credit for medium-sized enterprises will be refunded ahead of schedule, moving the application deadline from the previously scheduled July to May.
“Ensuring efficient tax refunds is currently a key channel for addressing the funding challenges faced by market entities,” said Li Xuhong, Director of the Institute of Fiscal and Tax Policies and Applications at the National Accounting Institute in Beijing, in an interview with People’s Daily Online. She noted that, beyond preserving the neutrality of the value-added tax, tax-refund policies also help companies recover cash flow and alleviate their financial difficulties. This year’s most significant reform in the tax‑refund regime allows for the refund of previously accumulated input VAT credits. In essence, this one‑off reimbursement of historically carried‑forward credit balances provides enterprises with a larger cash infusion, thereby enhancing the effectiveness of such support measures.
Li Xuhong pointed out that, in accordance with the Announcement, building on the earlier implementation of refunds for existing outstanding input VAT credits held by micro and small enterprises by the end of April and June, the application window for such refunds for medium-sized enterprises in six key sectors has been advanced from July to May. This measure will help accelerate the realization of the benefits of the tax rebate policy and enable market entities to alleviate financial constraints more promptly.
This year, the total scale of value-added tax credit refunds is expected to reach 1.5 trillion yuan, hitting a record high. According to the State Taxation Administration, from April 1 to 15, 420.2 billion yuan in credit refunds had been credited to the accounts of 527,000 taxpayers. By enterprise size, small and micro businesses are the primary beneficiaries: among those who have received refunds, 510,000 are small and micro enterprises, accounting for 96.8% of the total, with refund amounts totaling 242.2 billion yuan, or 57.6% of the overall sum; large and medium-sized enterprises number 17,000, representing 3.2% of the total, with refund amounts of 178 billion yuan, or 42.4%. With the implementation of the aforementioned announcement, the pace of refund disbursement will accelerate further.
It is worth noting that, to ensure the timely disbursement of tax refund funds, the finance, taxation, and financial authorities have coordinated closely and introduced a series of supporting measures.
To support the refund of outstanding input VAT credits, the central government has tilted fiscal allocations toward county- and city-level governments, ensuring that local authorities have sufficient financial resources to implement these refunds. In late March this year, the Ministry of Finance disbursed the first tranche of special transfer payments—amounting to RMB 400 billion—to localities, earmarked for supporting small and micro enterprises in obtaining refunds of their input VAT credits. At the same time, the central government is covering more than 90 percent of the actual refund costs, effectively alleviating fiscal pressures at the local level and ensuring that refund funds reach businesses directly.
To support tax refunds, the People’s Bank of China has taken proactive measures to accelerate the remittance of retained profits to the central government. As of mid-April, it had remitted 600 billion yuan, primarily for refunding outstanding input VAT credits and making transfer payments to local governments.
In terms of optimizing tax refund services, China’s tax authorities have enhanced review efficiency and accelerated the processing of input VAT credit refunds. For eligible taxpayers classified as low-risk, they are striving to streamline the refund procedures to the greatest extent possible, simplifying the review process and ensuring that input VAT credit refunds are processed efficiently and conveniently.

RMB 420.2 billion! The “half-month report” on the large-scale policy of refunding outstanding input VAT credits has been released.
The “semi-monthly report” on the large-scale policy of refunding outstanding input VAT credits has been released. According to data published by the State Taxation Administration on the 19th, from April 1 to 15, a total of RMB 420.2 billion in refunded input VAT credits was credited to the accounts of 527,000 taxpayers.
By enterprise size, small and micro enterprises are the primary beneficiaries: among taxpayers who have received tax refunds, 510,000 are small and micro enterprises, accounting for 96.8% of the total, with refunded amounts totaling RMB 242.2 billion, or 57.6% of the overall sum; large and medium-sized enterprises number 17,000, representing 3.2% of the total, with refunded amounts of RMB 178.0 billion, or 42.4% of the total.
An official from the Department of Goods and Services Tax of the State Taxation Administration stated that, since the large-scale value-added tax credit refund policy was implemented on April 1, the tax authorities have strengthened their working mechanisms, streamlined service measures, and rigorously ensured effective implementation, thereby guaranteeing that the policy is fully and meticulously put into practice.
A sample survey conducted by the tax authorities among enterprises that have received tax refunds indicates that the refunded funds are primarily used for expanding production, conducting technological research and development, purchasing raw materials, and paying wages.
An official from the Department of Goods and Services Tax of the State Taxation Administration stated that the tax authorities will continue to implement robust and effective measures, strengthen inter‑departmental coordination and collaboration mechanisms, streamline the tax refund review process, enhance the quality and effectiveness of implementing the carryforward VAT refund policy, and further bolster taxpayers’ sense of gain.

Litigation & Arbitration
The Supreme People’s Court has issued the “Several Provisions on Jurisdiction over First-Instance Civil and Administrative Intellectual Property Cases.”
The “Several Provisions of the Supreme People’s Court on Jurisdiction over First-Instance Civil and Administrative Intellectual Property Cases” were adopted at the 1858th Meeting of the Judicial Committee of the Supreme People’s Court on December 27, 2021. They are hereby promulgated and shall enter into force as of May 1, 2022.
Interpretation of the Supreme People’s Court No. 13 of 2022
Several Provisions of the Supreme People’s Court on Jurisdiction over First-Instance Civil and Administrative Intellectual Property Cases
(Adopted at the 1858th Meeting of the Judicial Committee of the Supreme People’s Court on December 27, 2021; effective May 1, 2022)
In order to further improve the jurisdictional system for intellectual property cases and appropriately define the adjudicatory functions of the four levels of people’s courts, this Regulation is hereby formulated in accordance with the provisions of the Civil Procedure Law of the People’s Republic of China, the Administrative Litigation Law of the People’s Republic of China, and other relevant laws, and in light of actual practice in intellectual property adjudication.
Article 1: First-instance civil and administrative cases involving disputes over ownership or infringement relating to invention patents, utility model patents, new plant varieties, integrated circuit layout designs, trade secrets, and computer software, as well as monopoly disputes, shall fall under the jurisdiction of the Intellectual Property Courts, the intermediate people’s courts located in the seats of the people’s governments of provinces, autonomous regions, and municipalities directly under the central government, and the intermediate people’s courts designated by the Supreme People’s Court.
Where the law provides for the jurisdiction of intellectual property courts, such provisions shall prevail.
Article 2: First-instance civil and administrative cases involving ownership of design patents, patent infringement disputes, and the determination of well-known trademarks shall fall under the jurisdiction of the Intellectual Property Courts and the intermediate people’s courts; with the approval of the Supreme People’s Court, such cases may also be assigned to the basic-level people’s courts, except for administrative cases concerning design patents.
Except as provided in Article 1 of these Provisions and in paragraph 1 of this Article, first-instance intellectual property cases with a litigation subject matter value exceeding the threshold set by the Supreme People’s Court, as well as those involving administrative actions taken by State Council departments, local people’s governments at or above the county level, or customs authorities, shall fall under the jurisdiction of the intermediate people’s courts.
Where the law provides for the jurisdiction of intellectual property courts, such provisions shall prevail.
Article 3: First-instance civil and administrative intellectual property cases not falling within the scope of Articles 1 and 2 of these Provisions shall be under the jurisdiction of the basic people’s courts designated by the Supreme People’s Court.
Article 4: With respect to civil and administrative intellectual property cases involving new types of disputes, complex or difficult issues, or matters of guiding significance for the application of law, the higher-level people’s court may, in accordance with the relevant provisions of the Civil Procedure Law, either upon request from the lower-level people’s court or on its own initiative, designate such cases for adjudication at a higher level.
Where it is indeed necessary to transfer first-instance civil intellectual property cases under the jurisdiction of this court to a lower people’s court for trial, such transfer shall, in accordance with Article 39, Paragraph 1 of the Civil Procedure Law, be submitted on a case-by-case basis to the higher people’s court for approval.
Article 5: Where, pursuant to these Provisions, the Supreme People’s Court is required to determine or adjust the jurisdictional threshold for the amount in dispute and the geographical scope of jurisdiction, such matters shall be submitted to the Supreme People’s Court for approval on a hierarchical basis.
Article 6: These Provisions shall enter into force on May 1, 2022.
Where any judicial interpretation previously issued by the Supreme People’s Court is inconsistent with these Provisions, these Provisions shall prevail.
No. 109 [2022] of the Supreme People’s Court
Notice of the Supreme People’s Court on Issuing the Standards for Jurisdiction over First-Instance Civil and Administrative Intellectual Property Cases by Basic-Level People’s Courts
To the Higher People’s Courts of all provinces, autonomous regions, and municipalities directly under the central government; to the Military Court of the People’s Liberation Army; and to the Production and Construction Corps Branch of the Higher People’s Court of the Xinjiang Uygur Autonomous Region:
In accordance with the “Several Provisions of the Supreme People’s Court on Jurisdiction over First-Instance Civil and Administrative Intellectual Property Cases,” the Supreme People’s Court has designated the primary-level people’s courts that have jurisdiction over civil and administrative intellectual property cases, along with their respective jurisdictions and the monetary thresholds for first-instance civil intellectual property cases. These provisions are hereby promulgated and shall take effect as of May 1, 2022. Cases that had already been accepted prior to the entry into force of this notice shall continue to be governed by the original standards.

The Supreme People’s Court has introduced innovative mechanisms to support the development of small, medium, and micro enterprises: it will resolutely prevent economic disputes from being wrongly classified as criminal offenses.
On April 19, the Supreme People’s Court held a press conference in Beijing, unveiling 15 exemplary cases and innovative mechanisms designed to support the development of small, medium, and micro enterprises. To address the challenges faced by these businesses and foster their growth, the Supreme People’s Court will further refine its innovative systems—such as the system for equally protecting the property rights of small, medium, and micro enterprises—so as to effectively help them overcome difficulties and navigate crises, thereby providing judicial services and safeguards for high-quality economic and social development.
“We will strictly enforce legal principles such as the principle of legality and the presumption of innocence, resolutely prevent economic disputes from being wrongly classified as criminal offenses, improve the mechanism for two-way coordination between civil and criminal justice systems, and safeguard, in accordance with the law, the property rights of enterprises and the personal and property security of business leaders, so that small, medium, and micro‑enterprises can ‘rest assured and focus on development,’” said Huang Wenjun, Director of the Supreme People’s Court’s Enforcement Bureau. In 2021, courts nationwide retried and rectified 30 criminal cases involving property rights, resulting in the exoneration of 39 individuals, and continued to refine mechanisms for preventing and correcting wrongful convictions related to property rights.
Courts nationwide will further refine the system for equally protecting the property rights of small, medium, and micro enterprises. They will rigorously implement a property‑rights protection regime grounded in fairness, ensuring equal legal protection for all types of market entities, while paying particular attention to judicial safeguards for the property rights of small, medium, and micro enterprises. Judicial coercive measures will be standardized in accordance with the law, scrutiny of cases involving damages arising from erroneous preservation orders will be strengthened, and efforts to identify and rectify instances of excessive or improper seizures will continue, thereby preventing any infringement on the legitimate interests of small, medium, and micro enterprises during preservation and enforcement proceedings. Moreover, the courts will work to uphold a market order that fosters fair competition among such enterprises, support the deepening of the “delegation, regulation, and service” reform, and, in accordance with the law, supervise and encourage administrative agencies to carry out regulatory functions within their statutory powers and procedures, thus safeguarding the operational autonomy of small, medium, and micro enterprises.
Huang Wenjun stated that the people’s courts will strengthen safeguards to ensure the stable operation of small, medium, and micro enterprises. They will refine mechanisms for market entity exit, promoting the orderly withdrawal of “zombie enterprises.” At the same time, they will improve systems for rescuing market entities, actively guiding viable small, medium, and micro enterprises—those with potential for recovery—to undergo bankruptcy reorganization or settlement procedures, thereby providing them with a grace period to fairly and orderly settle their debts and enabling these businesses to reinvent themselves. In the first quarter of this year, courts nationwide concluded 83 bankruptcy reorganization cases involving small, medium, and micro enterprises, with total creditor claims amounting to RMB 167.3 billion. This helped 70 enterprises with promising prospects emerge from distress and resume operations, while safeguarding employment for more than 40,000 workers.

The Supreme People’s Procuratorate has deployed and is advancing a special campaign to combat and rectify fraud targeting the elderly.
Following the nationwide launch of a special campaign to combat and rectify pension fraud by the Coordination Group for Building a Peaceful China, the Supreme People’s Procuratorate promptly issued an implementation plan for the campaign across all procuratorial organs, calling on procuratorial bodies at all levels to fully implement Xi Jinping’s Thought on the Rule of Law, exercise their duties proactively in accordance with the law with a high degree of political, legal, and prosecutorial awareness, and vigorously advance the special campaign to crack down on and address pension fraud.
The implementation plan stipulates that efforts must be focused on publicity and mobilization, ensuring smooth reporting channels and strengthening public education. The 12309 platform should be leveraged to broadly solicit leads from the public and handle them in accordance with the law. Where cases that should be filed are not, lawful supervision shall be exercised to ensure proper initiation of proceedings. In light of the characteristics of pension‑fraud crimes and the specific circumstances of the elderly population, the “who enforces the law, who promotes legal awareness” responsibility system should be implemented in a targeted manner. Public‑education campaigns to combat and rectify pension fraud should be organized, exposing new methods and emerging trends in such scams and enhancing the effectiveness of legal‑awareness outreach. Legal education and awareness‑raising for professionals working in the elderly‑care sector should be intensified to encourage compliant and law‑abiding business practices. Special attention should be given to cultivating, collecting, and disseminating exemplary cases to harness their demonstrative and guiding value.
The implementation plan emphasizes the need to severely crack down on pension fraud in accordance with the law, intensifying prosecution efforts and focusing on punishing crimes that infringe upon the legitimate rights and interests of elderly persons—such as fraud, fundraising fraud, contract fraud, illegal absorption of public deposits, organizing or leading pyramid schemes, manufacturing and selling substandard or counterfeit products, and producing and distributing fake or substandard drugs—committed under the guise of providing “elderly care services,” investing in “elderly care projects,” selling “elderly care products (including health supplements and collectibles),” promoting “housing‑for‑pension” schemes, handling “pension insurance” procedures, or carrying out “elderly assistance” activities. Adhering to lawful case handling and accurately applying the requirement of strict enforcement under the law, suspects who have caused particularly grave losses or serious consequences, as well as principal offenders and key members who exhibit severe subjective malice and play a central role in the commission of the crime, shall be subject to stringent punishment. Every effort must be made to recover stolen assets and mitigate losses, integrating this task throughout the entire prosecutorial process and treating it as a crucial component of combating pension fraud.
The implementation plan stipulates that coordinated efforts must be undertaken to rectify and standardize the situation. In conjunction with handling pension fraud cases, proactive analysis and assessment should be conducted to identify the underlying causes of such offenses, uncover management loopholes and potential risks in the elderly‑care sector, and share relevant information with other member agencies or issue prosecutorial recommendations, thereby promoting law‑based improvements in regulatory oversight and strengthening root‑cause governance. At the same time, public interest litigation should be explored in key areas where pension fraud is prevalent.
The implementation plan calls on procuratorial organs at all levels to strengthen organizational leadership, ensuring that the special campaign yields concrete and tangible results in combating crime, rectifying and standardizing practices, conducting education and publicity, and improving institutional frameworks, thereby marking the successful convening of the 20th National Congress of the Communist Party of China with concrete actions.

Three departments have jointly issued a notice: cracking down hard on environmental crimes and illegal activities involving hazardous waste.
The Ministry of Public Security, the Ministry of Ecology and Environment, and the Supreme People’s Procuratorate recently jointly issued a notice to launch, starting in April, a six-month special campaign aimed at rigorously cracking down on environmental crimes and illegal activities involving hazardous waste, as well as on fraudulent manipulation of automatic monitoring data by key polluting entities.
According to reports, this special campaign focuses on two key areas: First, it targets hazardous wastes such as waste mineral oil, distillation residues, pesticide‑related waste, waste acids, and waste lead‑acid batteries, cracking down rigorously on illegal activities—including the unauthorized collection, storage, utilization, or disposal of hazardous waste by entities operating without a hazardous waste management permit or by those disguising their illicit operations under the guise of legitimate credentials; the provision of, or entrusting others with, the collection, storage, utilization, or disposal of hazardous waste while knowingly aware that the recipient lacks the requisite permit; violations of the Regulations on the Management of Hazardous Waste Transfers, including the unlawful cross‑administrative‑region transfer, discharge, dumping, or disposal of hazardous waste; and the concealment of hazardous waste as an intermediate product or by‑product, followed by its illegal transfer, utilization, or disposal. Second, the campaign will severely punish environmental crimes and violations that seek to evade ecological and environmental oversight by falsifying or fabricating monitoring data, with particular emphasis on offenses involving the manipulation or falsification of automatic monitoring data or the deliberate interference with automatic monitoring equipment. It will also, in accordance with the law, rigorously investigate and prosecute environmental offenses involving the provision of false certification documents or the issuance of certificates containing material inaccuracies.
During the special campaign, local authorities will conduct thorough investigations to identify leads, enhance information sharing, leverage big data analytics, and strengthen digital tools, striving to accurately detect clues of illegal and criminal activities. They will also bolster interagency cooperation, reinforce coordinated response measures, and improve guidance and deployment to amplify collective efforts in combating crime. Furthermore, they will intensify forensic examinations and inspections, pursue in-depth investigations and expand investigative lines, emphasize case‑by‑case summarization, refine case‑handling procedures, and elevate law enforcement capabilities and standards.
All localities will strengthen organizational leadership over the special campaign, formulate and refine work plans tailored to their specific circumstances, prioritize key areas, and launch broad mobilization and deployment. Public security organs shall seamlessly integrate this enforcement effort with the “Kunlun 2022” special operation, advancing both in a coordinated manner. They will intensify public awareness campaigns, carefully calibrating timing, scope, and effectiveness, and make full use of various media outlets to expose high-profile cases involving severe environmental pollution, harm to public health, and adverse impacts, thereby reinforcing deterrence and raising vigilance. Mechanisms for rewarding whistleblowers and protecting informants will be further improved, with illegal transfer and dumping of hazardous waste, as well as falsification of automatic monitoring data, explicitly included among priority reward categories. Efforts to promote environmental laws and regulations will be stepped up to effectively enhance enterprises’ legal awareness and commitment to ecological and environmental protection, guiding them to understand, abide by, and respect the law.

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