JC Master Legal News Issue 799

Key Takeaways for This Issue

The China Securities Regulatory Commission has issued the “Q&A on Issuance Supervision—Requirements Regarding Suspension of Review and Other Matters in the Examination Process for Initial Public Offering Applications” and the “Q&A on Issuance Supervision—Issues Concerning Pre-Disclosure of Initial Public Offerings, Among Others.”
Recently, the China Securities Regulatory Commission (CSRC) issued the “Q&A on Issuance Supervision—Requirements Concerning Suspension of Review and Other Matters in the Examination Process for Initial Public Offering Applications” and the “Q&A on Issuance Supervision—Issues Related to Pre-Disclosure of Initial Public Offerings,” clarifying the rules governing the response‑time for feedback on IPO applications, as well as procedures for suspending, resuming, and terminating reviews.
Four ministries and commissions jointly issued the “Several Opinions on Standardizing and Promoting the Development of Characteristic Towns and Small Towns.”
On December 4, 2017, the National Development and Reform Commission, the Ministry of Land and Resources, the Ministry of Environmental Protection, and the Ministry of Housing and Urban–Rural Development jointly issued the “Several Opinions on Regulating and Promoting the Development of Characteristic Towns and Small Towns” (hereinafter referred to as the “Opinions”). The document sets forth regulatory measures to address issues such as conceptual ambiguity, imprecise positioning, an over‑eager pursuit of rapid development, blind expansion, insufficient marketization, escalating government debt risks, and a tendency toward real estate‑driven development in the process of building characteristic towns.
The State Taxation Administration has issued the “Guiding Opinions on Further Deepening Joint Tax Services between National and Local Tax Authorities.”
On December 5, 2017, the State Taxation Administration issued the “Guiding Opinions on Further Deepening Joint Tax Services between National and Local Tax Authorities.” Based on an objective assessment and analysis of the successful experiences in joint tax services across various regions in recent years, the Guiding Opinions put forward four key measures: comprehensively planning and coordinating joint tax service models, continuously expanding the scope of joint tax services, rationally allocating joint tax service windows, and exploring innovative approaches to joint tax services.
The Supreme People’s Court has issued the “Opinions of the Supreme People’s Court on Comprehensively Strengthening Judicial Safeguards for Ecological Civilization Construction and Green Development in the Yangtze River Basin.”
Recently, the Supreme People’s Court issued the “Opinions on Comprehensively Strengthening Judicial Safeguards for Ecological Civilization Construction and Green Development in the Yangtze River Basin.” The document is divided into six sections, which elaborate on the significant importance of bolstering judicial support for ecological civilization and green development in the Yangtze River Basin, the fundamental principles that environmental justice in the basin should uphold, specific measures to be implemented, and institutional and systemic reforms.
Seven countries jointly launched the “Belt and Road” International Cooperation Initiative on the Digital Economy.
On December 3, 2017, at the Fourth World Internet Conference, representatives from China, Egypt, Laos, Saudi Arabia, Serbia, Thailand, Turkey, the United Arab Emirates, and other countries jointly launched the “Belt and Road” International Cooperation Initiative on the Digital Economy.

Table of Contents
Table of Contents

Finance & Capital Markets

The China Securities Regulatory Commission has issued the “Q&A on Issuance Supervision—Requirements Regarding Suspension of Review and Other Matters in the Examination Process for Initial Public Offering Applications” and the “Q&A on Issuance Supervision—Issues Concerning Pre-Disclosure of Initial Public Offerings, Among Others.”
The China Banking Regulatory Commission has issued the largest-ever penalty: Guangfa Bank was fined and had its illegal gains confiscated totaling RMB 722 million.
The China Banking Regulatory Commission is soliciting public comments on the “Measures for the Administration of Liquidity Risk of Commercial Banks (Revised Draft for Comments).”
The China Securities Regulatory Commission has issued the “Decision on Amending Seven Regulations, Including the Measures for the Administration of Securities Registration and Settlement” and the “Decision on Amending or Repealing Thirteen Normative Documents, Including the Provisions on the Administration of Subordinated Debt of Securities Companies.”
The China Securities Regulatory Commission has issued the “Reply on the Zhengzhou Commodity Exchange’s Launch of Apple Futures Trading.”

Corporate & Commercial

Four ministries and commissions jointly issued the “Several Opinions on Standardizing and Promoting the Development of Characteristic Towns and Small Towns.”
The registration system of the Internet Finance Registration and Disclosure Service Platform has gone live.
The Fourth World Internet Conference concluded successfully in Wuzhen.
The General Office of the State Council has issued the “Opinions on Promoting the In-depth Development of Military-Civilian Integration in the National Defense Science, Technology and Industry.”
Multiple factors are driving up steel prices.

Taxation

The State Taxation Administration has issued the “Guiding Opinions on Further Deepening Joint Tax Services between National and Local Tax Authorities.”
The State Taxation Administration has issued the “Interpretation of the ‘Announcement of the State Taxation Administration on Simplifying the Filing Procedures for the Simplified VAT Calculation Method for Construction Services’.”

Litigation & Arbitration

The Supreme People’s Court has issued the “Opinions of the Supreme People’s Court on Comprehensively Strengthening Judicial Safeguards for Ecological Civilization Construction and Green Development in the Yangtze River Basin.”
The Supreme People’s Court convened a meeting to advance the pilot program for reforming family‑case adjudication methods and working mechanisms at selected courts nationwide.

Other

Seven countries jointly launched the “Belt and Road” International Cooperation Initiative on the Digital Economy.
Two departments have jointly issued the “Guiding Opinions on Establishing and Improving the System of Minimum and Maximum Coal Inventories (Trial)”

Finance & Capital Markets

The China Securities Regulatory Commission has issued the “Q&A on Issuance Supervision—Requirements Regarding Suspension of Review and Other Matters in the Examination Process for Initial Public Offering Applications” and the “Q&A on Issuance Supervision—Issues Concerning Pre-Disclosure of Initial Public Offerings, Among Others.”
Recently, the China Securities Regulatory Commission (CSRC) issued the “Q&A on Issuance Supervision—Requirements Concerning Suspension of Review and Other Matters in the Examination Process for Initial Public Offering Applications” and the “Q&A on Issuance Supervision—Issues Related to Pre-Disclosure of Initial Public Offerings,” clarifying provisions regarding the response‑time for feedback on IPO applications, as well as matters such as suspension, resumption, and termination of review. At the same time, it specified that when an issuer changes its law office, accounting office, or asset appraisal agency, no suspension of review is required; likewise, changes to the signing sponsor representative, signing lawyer, signing accountant, or signing asset appraiser do not trigger a suspension of review.
Meanwhile, on the afternoon of December 8, the Issuance Department of the China Securities Regulatory Commission convened a meeting with heads of investment banking divisions from several securities offices, primarily to convey the requirements set forth in the Q&A on issuance supervision—specifically regarding matters such as the suspension of review during the examination process for initial public offering applications. The meeting was chaired by Deputy Director Chang Junsheng, and the key points are as follows:
1. In the near future, pre‑review officers will call companies and sponsoring institutions to request that they submit their materials by the prescribed deadline. 2. Following the implementation of the new regulations, instances of suspension will be significantly reduced; companies and sponsoring institutions will no longer be permitted to delay submission of materials under any pretext. 3. At present, there are two main categories of cases subject to suspension: one involves policy‑related issues, such as matters concerning “three‑type shareholders,” for which preliminary opinions have already been formulated; the other stems from unresolved problems deliberately used to stall proceedings. 4. For those who delay submitting materials, the Issuance Department will summon the relevant responsible persons at the sponsoring institution and, if necessary, impose disciplinary measures; against the company itself, on-site inspections and other enforcement tools may be deployed. 5. Review timelines have accelerated—currently, reviews extend through May, with submissions expected to complete the process within six months, and the backlog has been substantially alleviated. 6. The mindset of using material submission merely to secure a place in line must be abandoned. With review speeds now rapid, any attempt to prolong proceedings by failing to resolve outstanding issues will face increasingly stringent scrutiny. 7. If a company fails to submit materials on schedule, it may be directly scheduled for the preliminary review meeting or the issuance review meeting. 8. For companies whose materials have already been submitted, any further non‑compliant behavior during the review process will result in enhanced penalties.

The China Banking Regulatory Commission has issued the largest-ever penalty, fining and confiscating 722 million yuan from Guangfa Bank.
On December 20, 2016, two subsidiaries of the Huizhou Qiaoxing Group in Guangdong Province were unable to repay principal and interest on RMB 1 billion in private placement bonds issued through the “ZhaocaiBao” platform. These bonds were backed by guarantee insurance provided by Zhejiang Merchants Property Insurance Company; however, the insurer claimed that the Huizhou Branch of GF Bank had issued a bottom‑line guarantee letter in its favor. Subsequently, more than ten financial institutions, armed with such guarantee letters and related agreements, approached GF Bank one after another to inquire about and assert their claims. This situation exposed a case of collusion between employees of GF Bank’s Huizhou Branch and personnel from the Qiaoxing Group, involving the unauthorized forging of official seals and the issuance of illegal guarantees, with total funds at stake amounting to approximately RMB 12 billion—of which roughly RMB 10 billion was tied to banking institutions—and primarily used to conceal the bank’s massive non‑performing assets and operating losses.
Following a series of statutory procedures—including case filing, investigation, adjudication, deliberation, notification, and review of statements and defenses—the China Banking Regulatory Commission issued an administrative penalty decision to Guangfa Bank on November 21, 2017, thereby lawfully investigating and addressing the case of illegal guarantees involving Guangfa Bank’s Huizhou Branch.
On December 8, 2017, the China Banking Regulatory Commission announced penalties imposed on Guangfa Bank, totaling RMB 722 million in fines and confiscations for violations committed by the bank’s head office, its Huizhou branch, and other affiliated institutions—marking the largest penalty ever levied. Specifically, RMB 175.5379 million in illegal gains was confiscated, and a threefold fine of RMB 526.6137 million was imposed; additional administrative fines amounted to RMB 20 million. The former president of Guangfa Bank’s Huizhou branch, two deputy presidents, and two former secretaries of the discipline inspection commission each received penalties, including revocation of their eligibility to hold senior management positions for five years, warnings, and monetary sanctions. Six employees implicated in the misconduct were banned from engaging in banking activities for life, and senior managers at the head office bearing managerial responsibility will also be subject to legal sanctions. At present, these six individuals have been handed over to judicial authorities for prosecution in accordance with the law. Meanwhile, the CBRC has instructed Guangfa Bank’s head office to rigorously discipline relevant senior executives and responsible personnel in line with Party regulations, government disciplinary rules, and internal policies.

The China Banking Regulatory Commission is soliciting public comments on the “Measures for the Administration of Liquidity Risk of Commercial Banks (Revised Draft for Comments).”
On December 6, 2017, the China Banking Regulatory Commission (CBRC) publicly sought comments on the “Measures for the Administration of Liquidity Risk of Commercial Banks (Revised Draft for Public Consultation).” The key revisions include: First, the introduction of three new quantitative indicators. Among them, the Net Stable Funding Ratio measures the extent to which a bank’s long-term stable funding supports its business development and applies to commercial banks with total assets of RMB 200 billion or more. The High-Quality Liquid Assets Ratio is a simplified version of the Liquidity Coverage Ratio, assessing whether a bank’s holdings of high-quality liquid assets can cover short-term liquidity shortfalls under stress scenarios, and applies to commercial banks with total assets below RMB 200 billion. The Liquidity Matching Ratio evaluates the maturity mismatch between a bank’s major assets and liabilities and applies to all commercial banks. These indicators, together with the existing liquidity ratio and liquidity coverage ratio, will constitute binding prudential regulatory metrics for commercial banks. Second, the liquidity risk monitoring framework has been further refined, with rational optimizations made to the calculation methods of certain monitoring indicators and an emphasis on their application in risk management and supervision. Third, specific requirements related to liquidity risk management have been detailed, including day‑to‑day liquidity risk management and financing management.

The China Securities Regulatory Commission has issued the “Decision on Amending Seven Regulations, Including the Measures for the Administration of Securities Registration and Settlement” and the “Decision on Amending or Repealing Thirteen Normative Documents, Including the Provisions on the Administration of Subordinated Debt of Securities Companies.”
On December 7, 2017, the China Securities Regulatory Commission issued the “Decision on Amending Seven Regulations, Including the Measures for the Administration of Securities Registration and Settlement” and the “Decision on Amending or Repealing Thirteen Normative Documents, Including the Provisions on the Administration of Subordinated Debt of Securities Companies,” both of which took effect from the date of their publication. Following a review, a total of 17 regulations and 18 normative documents were identified for revision or repeal, amounting to 35 regulatory and normative instruments in all.
In accordance with the requirements of the General Office of the State Council’s Notice on Further Advancing the Review and Streamlining of Regulations and Normative Documents Related to the “Delegation, Regulation, and Service” Reform, and in order to deepen this reform and ensure the effective implementation of all measures, the China Securities Regulatory Commission (CSRC) has, building on earlier efforts to simultaneously revise and implement relevant provisions, conducted a comprehensive and systematic review of its currently valid regulations and normative documents. Following this review, a total of 17 regulations and 18 normative documents were identified for revision or repeal. The scope of this review encompasses three key objectives: first, to address outstanding issues left over from previous reviews and genuinely advance administrative streamlining and delegation of power; second, to clarify management approaches and coordination mechanisms following the cancellation of administrative approval items and the reduction of professional qualification licensing and certification requirements, thereby implementing the principle of combining delegation with regulation; and third, to further enforce the cleanup and standardization of intermediary services subject to administrative approval by State Council departments, continuously enhancing service quality. Taking into account factors such as the extent of proposed amendments, time constraints for completion, and the CSRC’s legislative agenda, the Commission adopted two distinct approaches: one is a centralized, “package‑style” review and amendment, and the other involves handling individual cases through the formal legislative process. With the consent of the co‑issuing ministries and commissions, the CSRC has undertaken a consolidated “package‑style” review of 20 items, revising 7 regulations and 10 normative documents while repealing 3 normative documents. As for the remaining 15 regulations and normative documents, the CSRC will complete the review promptly in accordance with established legislative procedures and will publicly disclose the outcomes of any revisions or repeals upon their completion.

The China Securities Regulatory Commission has issued the “Reply on the Zhengzhou Commodity Exchange’s Launch of Apple Futures Trading.”
On December 8, 2017, the China Securities Regulatory Commission approved the Zhengzhou Commodity Exchange to launch apple futures trading. Taking into account various factors, the apple futures contract will commence trading on the Zhengzhou Commodity Exchange on December 22, 2017. According to Chang Depeng, spokesperson for the CSRC, launching apple futures is an important measure to implement the state’s poverty‑alleviation strategy and a key initiative for the futures market to support economic development in impoverished areas and serve the real economy. Apples are inherently a “poverty‑alleviation” crop; their major production regions largely overlap with China’s priority poverty‑reduction zones, and apple cultivation constitutes a vital source of income for local farmers. Following the listing of apple futures, an open and transparent market price for apples will be established, refining the price‑formation mechanism and providing price guidance to all market participants. The contracts will also offer hedging tools to help industrial enterprises manage and mitigate price risks, thereby stabilizing their production and operations. By leveraging the futures market as a bridge, models such as “company + cooperative + farmer,” “futures + order,” and “insurance + futures” can effectively transfer planting and operational risks, ensure stable incomes for farmers, support the national poverty‑alleviation effort, and help achieve the goal of targeted poverty reduction in major apple‑producing areas.

Commercial & Corporate

Four ministries and commissions jointly issued the “Several Opinions on Standardizing and Promoting the Development of Characteristic Towns and Small Towns.”
On December 4, 2017, the National Development and Reform Commission, the Ministry of Land and Resources, the Ministry of Environmental Protection, and the Ministry of Housing and Urban–Rural Development jointly issued the “Several Opinions on Standardizing and Promoting the Development of Characteristic Towns and Small Towns” (hereinafter referred to as the “Opinions”).
The key tasks outlined in the “Opinions” include: first, accurately defining the essence of distinctive small towns; second, adhering to the principles governing urbanization; third, emphasizing the development of distinct local characteristics; fourth, effectively advancing the integration of production, living, and ecology; fifth, clearly delineating the boundaries between government and market; sixth, implementing a system for establishing and meeting standards; seventh, rigorously guarding against risks associated with government debt; eighth, strictly curbing tendencies toward real estate‑driven development; ninth, ensuring the economical and intensive use of land; and tenth, officely upholding ecological protection redlines.
With regard to strictly curbing the tendency toward real estate development, the Opinions stipulate that all regions should comprehensively assess the employment‑creation capacity and resident population size of characteristic towns and small towns, rigorously regulate real estate development, appropriately set the proportion of residential land, and determine the timing of land supply in alignment with the inventory‑clearance cycle of market‑available housing in the respective cities and counties. The share of industrial and commercial land should be moderately increased, with priority given to fostering industrial development. Furthermore, enterprise‑initiated plans for developing characteristic towns must undergo rigorous scientific review, with particular emphasis on scrutinizing their industrial content, profit models, and post‑development operational strategies, so as to prevent projects that masquerade as “characteristic towns” but are, in fact, purely real estate ventures.

The registration system of the Internet Finance Registration and Disclosure Service Platform has gone live.
On December 8, the China Internet Finance Association held in Tianjin the launch ceremony for the registration system of the National Internet Finance Registration and Disclosure Service Platform, marking another groundbreaking milestone in internet finance information disclosure. On June 5 this year, the platform officially went live; to date, 110 platforms have connected and are disclosing information in accordance with relevant regulations and standards.
The launch of the registration system represents a key step in the China Internet Finance Association’s implementation of a “penetrative” regulatory approach, aimed at enhancing information disclosure within the internet finance sector and safeguarding investors’ legitimate rights and interests. It is designed to better support industry oversight and self-regulation, thereby establishing a robust, long-term mechanism for the sound development of the internet finance industry. In addition to disclosing information on operating institutions and corporate operations, online lending offices that have joined the registration system are required to provide detailed disclosures on their product offerings, including the parties to the loan agreement, the date of execution, the types of borrowers, loan amounts, purposes of borrowing, loan terms, repayment methods, and repayment history. Through the platform, investors can not only access basic governance information and aggregate transaction volumes but also gain insights into the overall operational status of the enterprise by examining specific products and individual loan projects.

The Fourth World Internet Conference concluded successfully in Wuzhen.
On December 5, 2017, the Fourth World Internet Conference concluded successfully in Wuzhen. During the event, Chinese and international guests, under the theme “Developing the Digital Economy and Promoting Openness and Sharing—Working Together to Build a Community with a Shared Future in Cyberspace,” actively shared their insights, showcased innovative achievements, explored avenues for cooperation, and outlined visions for the future across 20 distinct and thought‑provoking sub‑forums, yielding substantial results. The conference also unveiled, for the first time, the China Internet Development Report 2017 and the World Internet Development Report 2017, which reviewed past accomplishments, analyzed current trends, and projected future prospects, offering valuable guidance for countries seeking to advance internet development. At the event’s inaugural ceremony showcasing cutting‑edge global internet technologies, a host of groundbreaking innovations from renowned domestic and international companies—including Apple, Qualcomm, Microsoft, Alibaba, and Huawei—were presented, turning the conference into a premier gathering and leading indicator of the world’s most advanced internet technologies. In addition, this year’s World Internet Conference released its annual outcome document, the Wuzhen Outlook, marking another solid step forward in building consensus on the governance of global internet development.

The General Office of the State Council has issued the “Opinions on Promoting the In-depth Development of Military-Civilian Integration in the National Defense Science, Technology and Industry.”
On December 4, 2017, the General Office of the State Council issued the “Opinions on Promoting the In-depth Development of Military–Civilian Integration in the National Defense Science and Technology Industry” (hereinafter referred to as the “Opinions”). The Opinions state that the national defense science and technology industry is a key area for military–civilian integration and an essential component of the strategy for advancing such integration. It plays a vital role in elevating the level of China’s advanced defense science and technology industry with Chinese characteristics, supporting the building of the national defense and armed forces, promoting scientific and technological progress, and serving economic and social development. At present and in the period ahead, we are in a strategic window of opportunity for military–civilian integration—a critical phase in which integration is transitioning from initial stages to deep integration and ultimately achieving leapfrog development. The national defense science and technology industry holds enormous potential for further military–civilian integration.
The “Opinions” set forth specific policies and measures to advance the deep integration of military and civilian sectors in the defense science, technology, and industry, covering seven key areas. These include: further opening up the defense industry; restructuring the R&D and production capabilities for military products; expanding external collaboration among defense enterprises; and actively attracting social capital to participate in the shareholding reform of defense offices. The document also calls for strengthening the sharing of military–civilian resources and collaborative innovation, promoting two-way access and shared use of scientific‑technological innovation bases, equipment, and facilities, coordinating the joint utilization of major defense‑related test facilities, and fostering the joint use of technological infrastructure by both military and civilian sectors. Additionally, it seeks to facilitate mutual support and effective transfer of technologies between military and civilian domains, improve the management system for scientific and technological achievements in the defense science, technology, and industry, and increase support for the dissemination and application of military‑grade technologies. Furthermore, it aims to underpin development in priority areas such as space, cyberspace, and the maritime domain; promote the role of the defense industry in driving national economic growth; develop exemplary military–civilian integrated industries; cultivate new growth drivers in high‑tech defense sectors; and leverage the autonomous development of defense capabilities to spur related industrial advancement. Finally, the document advocates advancing the mobilization of weapons and equipment and enhancing nuclear emergency preparedness and safety, while reinforcing efforts to strengthen weapon‑and‑equipment mobilization. It also emphasizes the need to refine the legal and policy framework.

Multiple factors are driving up steel prices.
According to data released by the China Iron and Steel Association, from November 27 to December 1, the China Steel Price Index (CSPI) stood at 121.23 points, up 2.57 points, or 2.16%, from the previous week. Specifically, high-speed wire rod prices were 4,645 yuan per ton, an increase of 190 yuan per ton week-on-week, while rebar prices reached 4,480 yuan per ton, up 194 yuan per ton over the same period. With the onset of December, price adjustment announcements from several steelmakers indicate that the prices of certain long products have already surpassed 5,000 yuan per ton. The sharp short-term rise in steel prices has drawn widespread attention from the market.
The sharp short-term rise in steel prices can be attributed, on the one hand, to the emerging results of supply-side structural reforms in the steel industry—particularly the effective elimination of excess capacity and “strip‑steel” production—which has restored healthy market competition with tangible effects. On the other hand, region‑specific environmental‑protection‑driven production restrictions have constrained steel supply, leading to declines in both social and enterprise inventories.

Taxation TAXATATION

The State Taxation Administration has issued the “Guiding Opinions on Further Deepening Joint Tax Services between National and Local Tax Authorities.”
On December 5, 2017, the State Taxation Administration issued the “Guiding Opinions on Further Deepening Joint Tax Services between National and Local Tax Authorities” (hereinafter referred to as the “Guiding Opinions”). Based on an objective assessment and analysis of the successful experiences in joint tax services across various regions in recent years, the Guiding Opinions put forward four key measures: comprehensively planning and coordinating joint tax service models, continuously expanding the scope of joint services, rationally allocating joint service windows, and exploring innovative approaches to joint tax administration. These measures aim to provide taxpayers with more convenient, diversified, faster, and optimized tax‑related services.
In terms of further expanding the scope of joint tax services, the Guiding Opinions stipulate that tax authorities at all levels should continuously deepen and broaden such cooperation, enabling taxpayers to handle both national and local tax matters through a single service hall or a single window. For shared tasks—such as verifying basic taxpayer information and reporting bank account details—front‑office one‑stop acceptance and back‑office information sharing should be implemented via data‑sharing mechanisms, thereby substantially reducing the documentation burden on taxpayers. Regarding the optimization of joint tax service windows, the Guiding Opinions require tax authorities at all levels to rationally allocate resources between joint and specialized service windows in tax service halls, avoiding a one‑size‑fits‑all approach, so as to maximize convenience for taxpayers while enhancing administrative efficiency and supporting the personalized, streamlined needs of diverse taxpayer groups. As for innovating new forms of joint tax services, in order to deliver a better, more convenient tax‑filing experience, local tax authorities, in line with the principle of integrating online and offline channels, are actively exploring novel approaches and methods, providing taxpayers with 24/7 access to tax services that can be completed “without leaving home” and “at their fingertips.” To date, 32 provinces nationwide have launched joint online tax services, and 21 provinces have introduced joint mobile‑internet‑based tax services.

The State Taxation Administration has issued the “Interpretation of the ‘Announcement of the State Taxation Administration on Simplifying the Filing Procedures for the Simplified VAT Calculation Method for Construction Services’.”
On December 4, 2017, the State Administration of Taxation issued the “Interpretation of the Announcement on Simplifying the Filing Procedures for the Simplified VAT Calculation Method for Construction Services.” The main contents of the announcement are as follows: First, it clarifies that, for construction services provided by general taxpayers, whether the standard or the simplified tax calculation method is applied, a one-time filing system shall be implemented. Taxpayers need only file with the competent national tax authority at the location of their institution prior to making their first tax return under the simplified method; thereafter, no further filing will be required when providing other construction services subject to or opting for the simplified method. Second, it specifies the scope of documents that taxpayers must submit for filing and retain for record‑keeping purposes. For construction services related to old construction projects, the supporting documents for filing and record‑keeping are either a copy of the Construction Project Permit or a copy of the construction contract. For construction services provided under a materials‑supplied‑by‑the‑client arrangement or under a labor‑only contracting model, the relevant document is a copy of the construction contract. Third, it sets out the principles governing subsequent administrative oversight by the tax authorities. If, during such follow‑up inspections, the tax authorities find that a taxpayer has failed to provide the requisite documentation, any underpaid taxes shall be collected, and the matter shall be handled in accordance with the relevant provisions of the Law of the People’s Republic of China on the Administration of Tax Collection and its implementing rules. Fourth, it clarifies which tax authority is responsible for accepting filings for the simplified tax calculation method when construction services are provided across counties (or cities). When a taxpayer provides construction services across county (or city) boundaries and applies or opts for the simplified tax calculation method, the filing shall be made with the competent national tax authority at the taxpayer’s institutional location; no additional filing is required with the competent national tax authority at the place where the construction service is performed.

Litigation & Arbitration

The Supreme People’s Court has issued the “Opinions of the Supreme People’s Court on Comprehensively Strengthening Judicial Safeguards for Ecological Civilization Construction and Green Development in the Yangtze River Basin.”
Recently, the Supreme People’s Court issued the “Opinions of the Supreme People’s Court on Comprehensively Strengthening Judicial Safeguards for Ecological Civilization Construction and Green Development in the Yangtze River Basin” (hereinafter referred to as the “Opinions”), along with ten exemplary cases in environmental and resource adjudication within the Yangtze River Basin.
The “Opinions” are divided into six sections, each addressing the significant importance of comprehensively strengthening judicial safeguards for ecological civilization and green development in the Yangtze River Basin, the fundamental principles that environmental justice in the basin should uphold, specific measures, and institutional and systemic reforms. The document places particular emphasis on judicial protection of the water environment and water resources, calling for the proper adjudication of cases across four major categories—covering ten distinct areas—including those involving water pollution prevention and control, the development and utilization of water resources, the protection of river channels and river‑lake shorelines, and the conservation of aquatic environments and ecosystems. The “Opinions” underscore the need to prioritize conservation and promote green development, while also taking into account the unique environmental challenges and the specific characteristics of environmental‑resource adjudication in different segments of the basin, thereby adopting targeted strategies tailored to local conditions. In addition, the Supreme People’s Court has released ten landmark cases from the Yangtze River Basin, including the illegal fishing case involving Tang and eleven others, as well as the environmental pollution case involving Shiyan Chima Industrial and Trading Co., Ltd. and Gu Wenxiu.

The Supreme People’s Court convened a meeting to advance the pilot program for reforming family‑case adjudication methods and working mechanisms at selected courts nationwide.
On December 7, 2017, the Supreme People’s Court convened a national conference in Xinxiang City, Henan Province, to advance pilot reforms of family‑related trial methods and working mechanisms at selected courts. Du Wanhua, a full-time member of the Supreme People’s Court’s Judicial Committee, attended the meeting and delivered a speech, urging people’s courts at all levels to earnestly study the spirit of the 19th National Congress of the Communist Party of China, implement General Secretary Xi Jinping’s important instructions on building family civility, further strengthen their sense of responsibility and urgency, and deepen the reform of family‑related trial methods and working mechanisms.
Du Wan-hua called for the comprehensive advancement of a diversified dispute-resolution mechanism in family‑law adjudication, pooling resources and expertise from all sectors to drive reform; the bold exploration of special procedural regimes in family litigation, contributing normative experience to the reform process; vigorous promotion of theoretical research and practical innovation in family‑law adjudication, cultivating think‑tank capacity to support reform; concerted efforts to institutionalize, professionalize, and popularize the judiciary, thereby strengthening the talent base for reform; the diligent implementation of the Anti‑Domestic Violence Law, ensuring that this critical component of the reform is effectively addressed; continuous enhancement of judicial equipment and increased financial support, providing robust material underpinnings for reform; the scientific evaluation of family‑law adjudication work, tailoring assessment criteria to meet the specific needs of the reform; and the full utilization of multimedia tools to elevate public information and outreach, fostering a favorable public‑opinion environment for the reform.

Other

Seven countries jointly launched the “Belt and Road” International Cooperation Initiative on the Digital Economy.
On December 3, 2017, at the Fourth World Internet Conference, representatives from China, Egypt, Laos, Saudi Arabia, Serbia, Thailand, Turkey, the United Arab Emirates, and other countries jointly launched the “Belt and Road” International Cooperation Initiative on the Digital Economy (hereinafter referred to as the “Initiative”).
The Initiative calls for expanding broadband access and enhancing broadband quality; fostering the sustained development of service sectors such as smart logistics, online tourism, mobile payments, digital creativity, and the sharing economy; promoting e‑commerce cooperation; supporting internet‑based entrepreneurship and innovation; advancing the growth of small, medium, and micro enterprises; strengthening digital skills training; encouraging investment in the information and communications technology sector; advancing digital‑economy cooperation among cities; adopting a range of policy measures and technological tools to bridge the digital divide—both between countries and within them—and vigorously expanding internet penetration; and developing and maintaining an open, transparent, and inclusive approach to formulating digital‑economy policies.
The Initiative calls for advancing international cooperation on standardization; enhancing the availability, integrity, confidentiality, and reliability of online transactions; encouraging countries along the route to strengthen communication and mutual understanding, deepen collaboration in policy‑making and regulatory areas, and reduce, eliminate, or prevent unnecessary discrepancies in regulatory requirements, thereby unlocking the dynamism of the digital economy; supporting information and communication technology policies that uphold the global nature of the Internet and enable users to independently access online information, knowledge, and services in accordance with the law; and fostering dialogue and the sharing of perspectives among governments, enterprises, research institutions, industry associations, and other stakeholders to promote cooperation in the digital economy.

Two departments have jointly issued the “Guiding Opinions on Establishing and Improving the System of Minimum and Maximum Coal Inventories (Trial)”
Recently, the National Development and Reform Commission and the National Energy Administration jointly issued the “Guiding Opinions on Establishing and Improving the System of Minimum and Maximum Coal Inventories (Trial)” (hereinafter referred to as the “Guiding Opinions”) and the “Assessment Measures for the Minimum and Maximum Coal Inventory System (Trial)” (hereinafter referred to as the “Assessment Measures”). The main contents are as follows:
The establishment and improvement of a system for setting minimum and maximum coal inventories shall adhere to the following principles: First, combine social responsibility with encouragement and guidance. Minimum and maximum inventory levels constitute the social responsibilities and obligations of coal‑producing, trading, and consuming enterprises, which must be conscientiously fulfilled. In implementation, coal‑consuming enterprises should be encouraged and guided to appropriately increase their coal stocks within the prescribed inventory ranges, in response to market conditions and their own needs, thereby enhancing their capacity to cope with market fluctuations. Second, integrate safety with economic efficiency. The determination of minimum and maximum inventory standards must prioritize the smooth continuation of normal production and operations; standards must neither be set too low, failing to meet the requirements for safe and stable operations, nor too high, exceeding the enterprises’ affordability. Third, balance routine management with situational adaptability. While clearly defining minimum and maximum inventory levels under normal circumstances, appropriate adjustments should be made to these standards and their scope of application during peak periods of coal demand—such as summer and winter peak seasons—and in special situations involving significant price volatility.
The “Guiding Opinions” stipulate three scenarios for the application of the minimum and maximum coal inventory regimes: First, when market supply falls short of demand and prices surge into the red zone, oversight and inspection of the maximum inventory levels held by coal producers, traders, and consumers will be strengthened to prevent hoarding and reluctant sales that could further exacerbate supply shortages. During this period, compliance with minimum inventory requirements may be waived for producers and traders, encouraging all parties to increase resource availability to meet market demand. Second, when market supply exceeds demand and prices plunge into the red zone, monitoring of the minimum inventory levels of coal producers, traders, and consumers will be intensified to ensure that enterprises maintain adequate stockpiles—rather than reducing or eliminating inventories—to safeguard safe and stable operations. In such circumstances, the maximum inventory requirement may be suspended, with incentives provided to encourage offices to build up their stocks and help restore market supply‑demand balance. Third, in all other situations, both minimum and maximum inventory thresholds shall be subject to compliance assessment.

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