JC Master Legal News Issue 1048

Key Takeaways for This Issue

The eight major brokerage offices share a “consensus” in their top ten predictions for 2023: with improving liquidity, A-shares and Hong Kong stocks are poised for a corrective rebound.
 What trend‑driven investment opportunities will the capital markets present in 2023? On this front, the aforementioned brokerage offices share a consensus: A‑shares are expected to reenter an upward cycle, Hong Kong stocks may exhibit greater recovery resilience, and the growth style is likely to hold a relative advantage. Moreover, liquidity conditions are poised to improve, enabling the market to gradually move beyond a zero‑sum game and welcome fresh capital inflows.
Hai Bo Zhong Ke plans to acquire a 51% stake in Bo Guan Technology, aiming to establish a second growth driver for its new‑energy infrastructure business.
On the evening of January 6, Haibo Zhongke announced that it had signed a Letter of Intent for Equity Acquisition with Wang Xiaolei on January 5, 2023, reaching a preliminary agreement on the company’s plan to acquire a 51% equity stake in Qinhuangdao Boguan Technology Co., Ltd. (hereinafter referred to as “Boguan Technology”) through cash payment.
The State Taxation Administration has issued a notice to streamline and optimize several tax collection and administration services, effective April 1.
To implement the “Opinions on Further Deepening Tax Collection and Administration Reform” issued by the General Office of the CPC Central Committee and the General Office of the State Council, and in conjunction with the follow-up measures to address issues identified during the central inspection, we will further deepen the tax system’s “delegation, regulation, and service” reform, standardize basic tax collection and administration practices, and optimize tax and fee services related to procedures such as registration amendments and inter‑provincial relocations. Accordingly, we hereby issue the following measures to streamline and improve certain tax collection and administration services.
“The Selected Cases of the Supreme People’s Court of the People’s Republic of China” has been chosen as “One of Our Best Foreign‑Promotion Publications.”
To celebrate the successful convening of the 20th National Congress of the Communist Party of China, with approval from the Publicity Department of the CPC Central Committee, the National Press and Publication Administration hosted, and the China Press, Publication, Radio, Film and Television News reported undertook, the event “Ten Extraordinary Years of China’s Publishing Going Global in the New Era.” From among more than 10,000 foreign‑oriented titles published by major publishers nationwide, 18 were selected for release both at home and abroad. The “Selected Cases of the Supreme People’s Court of the People’s Republic of China” (hereinafter referred to as the “Supreme People’s Court Case Selection”) was chosen as the sole legal‑subject book to be included in the list of “Our Best‑Produced Foreign‑Oriented Publications.”
Finance & Capital Markets
The eight major brokerage offices share a “consensus” in their top ten predictions for 2023: with improving liquidity, A-shares and Hong Kong stocks are poised for a corrective rebound.
At the start of each year, the major annual forecasts released by securities offices invariably draw widespread attention from the market. As the new year begins, the research institutes of eight leading brokerage houses—including CITIC Securities, CICC, CITIC Securities Investment, China Merchants Securities, Industrial Securities, GF Securities, Zhongtai Securities, and Western Securities—have duly published their top ten predictions for the performance of the A-share and Hong Kong stock markets in 2023.
What trend‑driven investment opportunities will the capital markets present in 2023? On this front, the aforementioned brokerage offices share a consensus: A‑shares are expected to reenter an upward cycle, Hong Kong stocks may exhibit greater recovery resilience, and the growth style is likely to hold a relative advantage. Moreover, liquidity conditions are poised to improve, enabling the market to gradually move beyond a zero‑sum game and welcome new capital inflows.
The first quarter may usher in a recovery rally.
Industrial Securities, meanwhile, forecasts that the market could see a genuine recovery rally in the first quarter of 2023.
CICC predicts that the A-share market has reached a new historical inflection point, with the economy on a recovery trajectory. In 2023, listed companies’ earnings are expected to grow modestly, and the broader index is likely to experience a mild bull market. According to Zhongtai Securities, after the second quarter, the market may embark on an index-driven bull run characterized by simultaneous gains in both corporate earnings and valuations. Meanwhile, the most critical drivers of this round of the bull market lie in the reshaping of industry concentration and profit distribution amid cyclical trends, as well as the accelerated pace of state‑owned enterprise reform, which is boosting the valuations of central SOEs.
In terms of the specific market outlook, China Merchants Securities forecasts that A-shares will experience volatile yet upward momentum, with the full-year trend taking an “N”-shaped pattern. In 2023, A-shares are expected to re-enter an uptrend cycle, and the “N” shape is likely to be the most frequently observed formation going forward.
In the view of some brokerage offices, the performance of the Hong Kong stock market in 2023 appears even more promising.
CICC forecasts that, as certain factors improve marginally and current valuations remain attractive over the medium to long term, both A‑shares and Hong Kong stocks are likely to deliver roughly double-digit returns in 2023. By contrast, Hong Kong equities have been under pressure for a longer period and currently trade at lower valuation levels; as the “threefold pressures” gradually ease—particularly with a turnaround in fundamentals—the Hong Kong market may exhibit greater recovery resilience and could, at times, outperform A‑shares.
Guangfa Securities likewise forecasts that Hong Kong stocks will exhibit greater elasticity than A‑shares. Hong Kong equities are more sensitive than A‑shares to “fundamental recovery plus peaking U.S. Treasury yields.” Meanwhile, CITIC Securities predicts that bullish opportunities in 2023 are worth anticipating, and this year could well be a standout year for both A‑shares and H‑shares.
Funding conditions are expected to improve.
On the front of incremental capital, CICC expects that, as market conditions improve in 2023, liquidity in both A‑shares and Hong Kong stocks will also strengthen. The issuance scale of equity‑oriented public mutual funds in A‑shares is likely to rebound and surpass 2022 levels, with the share of institutional investors continuing to rise. Meanwhile, southbound inflows into the Hong Kong stock market are expected to expand further, and overseas capital is poised to gradually return, driven by the recovery of fundamentals.
Zhongtai Securities forecasts that, from the first quarter to early second quarter of 2023, high-dividend sectors such as power will outperform, while tech stocks like those in the defense and information technology industries will also hold an advantage. After mid-year, as the economy, inflation, and interest rates begin to pick up, undervalued blue-chip stocks are expected to gain relative strength. The office recommends focusing on opportunities in financial stocks such as insurance, essential consumer goods, and the revaluation of state-owned enterprise valuations. In addition, pharmaceuticals are likely to remain a sector with strong growth momentum throughout 2023.
China Merchants Securities likewise forecasts that, amid a backdrop of moderate economic recovery and improving external liquidity, the growth style is likely to outperform relative to other styles. Meanwhile, CITIC Securities predicts that, as market pricing factors in expectations of economic recovery and steady‑growth policies, large‑cap value stocks will deliver strong short‑term performance; however, as time passes and the economic environment becomes clearer, medium‑term structural trends favoring the growth style will ultimately prevail.
According to estimates by Western Securities, A‑shares could attract nearly RMB 800 billion in additional capital in 2023. Meanwhile, China Merchants Securities forecasts that, as the A‑share market improves, public fund issuance is likely to rebound. However, after the adjustments seen in 2022, factoring in both new fund launches and redemption activity for existing funds, a conservative estimate puts the net increase in public‑fund assets at around RMB 510 billion for 2023.
Yan Yanyan, Deputy General Manager of the Equity Investment Department at Xiangcai Securities, suggests transferring the market-making qualifications currently held on the New Third Board to the Beijing Stock Exchange.
The “Detailed Rules for Market-Making Trading on the Beijing Stock Exchange” (hereinafter referred to as the “Rules”) were made public for public comment on November 18, 2022. During this period, the industry submitted numerous suggestions and recommendations; in particular, market makers on the New Third Board have been eagerly anticipating this initiative, hoping to extend their market-making activities from the New Third Board to the Beijing Stock Exchange.
Yan Yanyan, Deputy General Manager of the Equity Investment Department and General Manager of the Market-Making Division at Xiangcai Securities, stated that all listed companies on the Beijing Stock Exchange originate from the New Third Board. The market-making system on the New Third Board has been in place for more than eight years, during which time existing market makers have developed well‑established operating models. He recommended that the Beijing Stock Exchange appropriately lower the eligibility threshold for market makers. At the same time, when setting qualification criteria for market-making activities on the Beijing Stock Exchange, it would be advisable to link these requirements to the market makers’ experience and their track record in risk control and compliance on the New Third Board, thereby fully reflecting the mutually reinforcing, synergistic relationship between the two markets. For example, additional evaluation dimensions could be introduced based on performance in New Third Board market making, with rankings compiled according to factors such as business experience and compliance‑related penalty points over the past few years. This approach would allow market makers with longer tenure and fewer compliance‑related penalties to participate in market‑making on the Beijing Stock Exchange.
Article 5 of the “Detailed Business Rules” stipulates that securities offices must obtain approval from the China Securities Regulatory Commission (CSRC) to qualify for listed‑security market‑making trading before they may conduct market‑making activities on the Beijing Stock Exchange. In conjunction with Article 3 of the CSRC’s “Pilot Provisions on Market‑Making Trading of STAR Market Stocks by Securities Offices,” which provides that “securities offices approved by the CSRC to engage in listed‑security market‑making trading may, in accordance with applicable regulations, conduct such market‑making activities on other stock exchanges.”
Yan Yanyan believes that if the eligibility criteria for market makers on the Beijing Stock Exchange were aligned with those of the STAR Market, the pool of securities offices eligible to engage in market-making activities on the Beijing Stock Exchange would be relatively limited.
Yan Yanyan further stated that the STAR Market’s eligibility criteria impose stringent requirements, including a securities office’s classification rating (must have been rated A‑class, A‑level or higher for the past three years) and net capital (net capital must remain no less than RMB 10 billion over the most recent 12 months). At present, most of the market makers ranking high in the New Third Board’s market-making business fail to meet these requirements. If the Beijing Stock Exchange were to set its market-making eligibility threshold based on such elevated standards, it would exclude the majority of today’s active market makers on the New Third Board.
“At present, the market makers on the New Third Board have largely grown alongside the National Equities Exchange and Quotations (NEEQ) and the Beijing Stock Exchange, making due contributions to market development. Meanwhile, the NEEQ and the Beijing Stock Exchange have also nurtured a cohort of securities offices pursuing distinctive paths of growth. I suggest allowing existing New Third Board market makers to transition seamlessly to the Beijing Stock Exchange, thereby automatically acquiring eligibility to conduct market-making activities on that exchange,” said Yan Yanyan.
Yan Yanyan believes that transferring the market-making qualifications of the New Third Board to the Beijing Stock Exchange would, on the one hand, enable intermediary institutions to play a more active role. Since all stocks listed on the Beijing Stock Exchange originate from the New Third Board, its market makers are thoroughly familiar with the fundamentals of these companies; if their market-making licenses were seamlessly transferred to the Beijing Stock Exchange, they could make an even greater contribution to the exchange’s rapid development. On the other hand, this move would leverage their accumulated experience to bolster the development of the Beijing Stock Exchange’s market-making business. Over years of honing their market-making expertise on the New Third Board, these offices have amassed substantial experience in areas such as institutional processes, compliance, and risk control. In particular, regarding market risks that exchanges closely monitor—such as insider trading, abnormal stock price fluctuations, and erroneous trades—so long as the exchange has clearly defined and detailed rules in its operating framework and maintains rigorous oversight, securities offices can, by strengthening their own compliance and risk‑management systems and establishing appropriate operational procedures, and by leveraging the relevant functionalities of their information‑technology platforms, largely prevent the occurrence of such market‑related risks.
Top Ten Brokerage Offices’ Outlook for 2023: With Winter Giving Way to Spring, the Recovery Trend in A-Shares Has Been Officely Established.
Trading in the A-share market for 2022 has come to a close, marking a highly volatile year for both the A-share market and global capital markets. The Shanghai Composite Index closed at 3,089.26 points, down 15.13% for the year, while the Shenzhen Component Index and the ChiNext Index fell 25.85% and 29.37%, respectively.
Although A‑shares delivered lackluster performance in 2022, they have laid a solid foundation for valuation recovery in 2023: the optimization of COVID‑19 policies and the bolstering of real estate measures are now clearly underway, paving the way for a gradual stabilization and rebound in the economy; meanwhile, interest rate hikes in major European and U.S. economies are nearing their end, leading to marginal improvements in overseas liquidity.
Among the top ten brokerage offices’ outlooks for the new year, risk appetite has strengthened markedly, with A‑shares gradually gaining momentum and even staging a fairly substantial rebound at the index level—this has become the “2023 consensus” among most institutions.
Winter gives way to spring: A-share markets have established a recovery trend in 2023.
From a macroeconomic perspective, many of the headwinds that constrained economic growth in 2022 are expected to ease in 2023, creating a favorable macro environment for the recovery of A-shares.
CITIC Securities stated that since 2022, the confluence of external geopolitical risks—referred to as “black swans”—and global liquidity tightening—known as “gray rhinos”—has weighed on economic growth expectations, leading to a marked weakening in major equity markets worldwide. Meanwhile, China’s domestic economy has remained subdued amid recurring COVID‑19 outbreaks and ongoing challenges in the real estate sector, causing A‑share valuations to fall sharply and currently hovering at relatively low levels not seen in nearly a decade.
However, in 2023, all of the aforementioned multiple influencing factors are expected to reach an inflection point. According to CITIC Securities: First, the optimization of COVID‑19 control policies and the introduction of measures to support the real estate sector in November 2022 have clearly signaled a turning point in policy expectations, leading to a gradual stabilization and recovery of the economy and an improvement in market risk appetite. Second, interest rate hikes in Europe and the United States are expected to conclude by March 2023, triggering a reversal in the RMB exchange rate and its subsequent appreciation, thereby creating room for valuation repair. Finally, in the second half of 2023, A‑share earnings are likely to bottom out and begin to rebound, with greater growth elasticity, laying a solid foundation for a medium‑term recovery.
“As the aforementioned three major inflection points emerge in succession, A-shares are expected to gradually gain upward momentum in 2023, continuing the medium-term, broad-based recovery that has already begun, with stronger upward impetus entering the second quarter,” according to CITIC Securities.
In its annual strategy outlook, CITIC Securities stated unequivocally that with winter giving way to spring, the A-share market has reached a new historical inflection point: in 2023, as China transitions into the post-pandemic era and the economy begins to recover, A-shares, having bottomed out for the second time, are now on a medium-term upward trajectory, warranting a strategically optimistic stance. The office expects A-share earnings to register modest growth in 2023, accompanied by a pickup in risk appetite, as the market gradually shifts from a stock‑based environment to one driven by incremental capital inflows. Overall, the benchmark indices are likely to experience a “moderate bull market.”
Market trends may take an “N” shape, and a spring rally is expected.
In terms of the market’s structural dynamics, leading brokerage offices generally agree that the overall market trend will unfold in distinct phases; however, when it comes to forecasting specific price movements, there is some divergence among institutions.
Shenwan Hongyuan Securities has outlined a three‑phase scenario for A‑share market performance in 2023. In the first phase, characterized by a “spring rally,” downside risks remain manageable, the rebound is far from over, and the market will consolidate before resuming its upward trajectory. The second phase, unfolding after March–April 2023, sees the market enter an earnings‑validation period; as a global economic slowdown weighs on A‑share fundamentals, equities are likely to continue trading in a choppy range while gradually finding a bottom. The third phase, beginning in the second quarter of 2023, marks the gradual realization of economic recovery, providing the impetus for a second wave of rallies following the spring rally.
China Merchants Securities stated that in 2023, A-shares are likely to enter a mid-term, structurally driven, oscillating upward cycle. Starting from the end of 2022, market performance may follow an “N”-shaped pattern. Similarly, Guotai Junan Securities believes that, given the challenges of navigating the pandemic, economic recovery, and the complexities of international strategic competition, the A-share market in 2023 will not be a smooth, straight‑line trajectory but will instead exhibit an “N”-shaped trend—rising first, then falling, and finally rising again.
In addition, several brokerage offices have issued special warnings about the spring market rally in the first quarter of 2023.
CICC stated that, in terms of timing, from late 2022 through the first quarter of 2023, expectations for marginal shifts in pandemic dynamics and real estate policies remain relatively high, potentially presenting a phased opportunity for equity indices. SW Securities noted that a spring rally remains plausible, and overall, downside risks to the A-share market in the first quarter are limited.
Liquidity conditions are expected to move away from a zero-sum game.
In 2022, a sharp contraction in risk appetite on the A-share market pushed trading into a regime of capital‑stock‑based competition. Looking ahead to 2023, institutions expect a substantial marginal improvement in market liquidity.
According to Industrial Securities, overall, although public‑fund issuance slowed markedly in 2022 due to substantial losses, redemption pressure remained mild. Moreover, historical experience shows that public funds have never posted consecutive years of losses; if fund returns improve in 2023, fund issuance is likely to pick up again.
Meanwhile, positioning among absolute-return investors—such as insurers and private equity offices—has already fallen to historically low levels, suggesting a gradual rebound. In 2023, as systemic shocks ease and economic recovery gains traction, liquidity conditions in the capital markets are expected to improve marginally compared with 2022, gradually shifting away from a zero-sum dynamic.
Haitong Securities believes that in 2022, major overseas central banks, led by the Federal Reserve, sharply tightened monetary policy, and repeated spikes in U.S. Treasury yields weighed on market sentiment in A‑shares. In 2023, U.S. inflation is expected to gradually ease, and the Fed’s fastest pace of rate hikes may have already passed, suggesting that the disruptive impact from U.S. Treasury yields could diminish marginally.
Drawing on historical experience, U.S. inflation in 2023 is likely to remain on a downward trajectory. As inflationary pressures ease, the Federal Reserve’s rate-hiking cycle may come to an end, pushing U.S. Treasury yields to peak and signaling a clear inflection point for a marginal improvement in global liquidity.
“In 2022, amid geopolitical tensions and tightening overseas liquidity, net foreign inflows into A-shares were notably lower than in previous years. However, for 2023, with China’s economic fundamentals expected to improve steadily and U.S. Treasury yields potentially reaching a structural turning point, foreign capital is likely to flow back into the A-share market,” Haitong Securities said.
The king of core assets is back— or is it another surge in sector‑specific investing?
In assessing market style, value investing—led by large‑cap consumer stocks—and growth investing—represented by cyclical sector stocks—are once again the primary sources of debate among institutions.
Changjiang Securities believes that the primary investment theme for 2023 will revert to core assets: a phased, robust recovery in the real estate and consumer sectors will significantly bolster market expectations for a broad-based economic rebound, potentially prompting a full-scale return of core assets to institutional investors’ portfolios.
First, from a cyclical perspective, earnings growth for core assets has been revised upward, while the major growth sectors are beginning to see a slowdown in momentum in 2023. Second, core assets currently trade at sufficiently low valuations; the Maotai Index has seen its valuation fall by more than 40% in this round, with some individual stocks trading well below their post-2018 valuation averages. Third, public fund allocations to core assets have now dropped to levels last seen at the end of 2018, significantly easing institutional overcrowding. Accordingly, Changjiang Securities recommends that investors increase their allocation to large-cap value stocks in 2023.
Citic Securities believes that, as market sentiment reflects expectations of economic recovery and steady growth, large-cap value stocks will outperform in the short term. However, as time passes and the economic environment becomes clearer, the mid-term structural trend driven by growth stocks will ultimately prevail.
Tianfeng Securities is also optimistic about investment in cyclical sectors for 2023, believing that as concerns over a hard economic landing and systemic risks gradually subside, the A-share market will likely remain volatile amid a weak economic recovery. However, structural opportunities are becoming increasingly prominent. The standout performance of these thematic sectors stems from earnings surges—precisely the hallmark of cyclical‑oriented investing.
Margin trading and securities lending on the Beijing Stock Exchange is poised to launch, with 64 brokerage offices having had their applications for margin‑trading access approved.
According to the Beijing Stock Exchange, nearly two months have passed since it released the detailed rules for margin trading and short selling, and the exchange is now fully prepared to launch these services. At present, the Beijing Stock Exchange has processed applications from 72 securities offices seeking to obtain margin‑trading and short‑selling access, approving 64 of them and activating margin‑trading trading units at 24 offices. Meanwhile, China Securities Depository & Clearing Corporation has received applications from 73 securities offices for settlement‑path setup and the opening of dedicated margin‑trading accounts, with business processing proceeding smoothly.
Chang Chunlin, founder and partner of Beijing Livi Investment Management Co., Ltd., stated that all market participants are actively making the necessary preparations to launch margin trading and short‑selling on the Beijing Stock Exchange, with overall progress in line with market expectations. Trading is expected to commence as early as the first quarter of this year. The introduction and gradual implementation of these services send a clear signal of the exchange’s ongoing reforms, helping to bolster market confidence. As a fundamental pillar of the securities market, the margin‑trading and short‑selling regime will attract additional capital, diversify investors’ strategies, enhance price discovery, and further improve market liquidity and pricing efficiency.
It is understood that on November 11, 2022, the Beijing Stock Exchange issued and implemented the “Detailed Rules for Margin Trading and Short Selling of the Beijing Stock Exchange” (hereinafter referred to as the “Margin and Short‑Selling Rules”) and the “Beijing Stock Exchange Guide to Margin Trading and Short‑Selling,” while simultaneously organizing all market participants to carry out technical and operational preparatory work.
On December 17, 2022, the Beijing Stock Exchange conducted a technical system acceptance test with all market participants, involving 83 securities offices, of which 81 passed. The exchange’s trading, market data, over-the-counter, official website, account management, and clearing systems, as well as those of China Securities Depository & Clearing Corporation, are now fully ready for operation.
According to reports, since the Beijing Stock Exchange officially released its margin trading and short-selling rules, numerous securities offices—including CITIC Securities, Galaxy Securities, Huatai Securities, and Huaxi Securities—have been actively preparing to launch these services on the exchange.
Specifically, CITIC Securities has systematically completed preparations across technical, business, and other areas; applications for business permissions and trading units have all been approved, and market outreach efforts are steadily advancing, leaving the office fully ready to commence operations. To date, through proactive SMS notifications and client‑manager engagement, the company has reached a total of 71,674 clients, among whom 404 have already scheduled appointments to activate their access rights.
Galaxy Securities has formulated the “Implementation Plan for Margin Trading and Short Selling on the Beijing Stock Exchange,” completed revisions to more than ten margin‑related policies and contracts, passed the Beijing Stock Exchange’s system‑accessibility tests, and successfully obtained approval as one of the first batch of securities offices authorized to conduct margin trading and short selling on the exchange. Meanwhile, through its trading client platform, online branch, and other channels, the company has conducted customer interest registration; as of December 29, 2022, it had reached a cumulative total of 350,000 clients, with 14,000 clients having registered their intent.
At Huatai Securities, the headquarters has identified target clients who meet the Beijing Stock Exchange’s suitability requirements and is rolling them out to frontline service managers in batches. These managers are then conducting individual outreach to solicit expressions of interest. As of December 23, approximately 22,000 clients have been reached and engaged. Following the activation of the account‑access authorization feature this week, the office will further intensify its outreach efforts based on specific circumstances.
Huaxi Securities is one of the seven securities offices that were among the first to obtain eligibility for margin trading and short‑selling on the Beijing Stock Exchange. In accordance with the planned schedule, it efficiently advanced all business and technical preparations, completing them by December 29, 2022, and successfully launched the service. This has provided robust support for the office’s margin trading and short‑selling operations on the Beijing Stock Exchange, while also laying a solid foundation for expanding both the scale and trading volume of these activities in the exchange going forward.
Zhou Yunnan, founder of Beijing Nanshan Investment, stated that, in addition to this, there are three key steps to officially launch margin trading and short-selling services: first, publishing the list of eligible stocks for margin trading; second, releasing the list of securities that can be used as collateral; and third, formally commencing margin and short‑selling transactions.
Chang Chunlin stated that securities offices’ proactive deployment of margin‑financing and short‑selling services on the Beijing Stock Exchange can help expand the growth potential of these businesses, drive scale expansion, and generate new revenue streams. As an emerging market currently experiencing rapid development, the Beijing Stock Exchange offers securities offices a competitive edge, enabling them to better meet client needs. Moreover, most companies listed on the Beijing Stock Exchange have relatively modest market capitalizations; given that margin‑financing and short‑selling are capital‑intensive activities, this presents a valuable opportunity for smaller and midsize brokerage offices to develop these lines of business.
“Once margin trading and short selling are implemented, they are expected to inject fresh capital into the Beijing Stock Exchange’s secondary market, boosting both investors’ disposable funds and the overall liquidity of the market. At the same time, this will help refine the market’s price‑discovery mechanism, promote two‑way price formation, guide stock prices toward reflecting their intrinsic value, strengthen the market’s pricing function, and enhance pricing efficiency. Moreover, it will contribute to greater stability in the secondary market: margin and short‑selling transactions help establish an inherent price‑stabilization mechanism, smooth out market volatility, reduce the likelihood of one‑sided market movements, and foster the market’s long-term, stable, and healthy development,” said Zhou Yunnan.

Commercial & Corporate
Hai Bo Zhong Ke plans to acquire a 51% stake in Bo Guan Technology, aiming to establish a second growth driver for its new‑energy infrastructure business.
On the evening of January 6, Haibo Zhongke announced that it had signed a Letter of Intent for Equity Acquisition with Wang Xiaolei on January 5, 2023, reaching a preliminary agreement on the company’s plan to acquire a 51% equity stake in Qinhuangdao Boguan Technology Co., Ltd. (hereinafter referred to as “Boguan Technology”) through cash payment.
Accelerate the implementation of the company’s development strategy.
Boguan Technology’s business scope encompasses the research and development, manufacturing, installation, maintenance, and sales of solar photovoltaic equipment, industrial automation control systems, computer software, industrial robots, air-source heat pumps, insecticidal lamps, instruments and meters, complete sets of automated control equipment, indoor lighting fixtures, solar lighting products and related components, LED luminaires, solar water heaters, solar energy equipment and parts, solar cells and solar panels, as well as other mechanical equipment. It also includes the design and construction of solar power generation projects.
Hai Bo Zhong Ke’s principal business is bridge steel structure engineering, with operations encompassing the fabrication and installation of bridge steel structures, as well as technical research, process design, and related technical services.
Ran Ting, Secretary of the Board of Haibo Heavy Industry, stated that Haibo Heavy Industry operates in the bridge steel structure sector and, in line with the national green development agenda and the “dual carbon” policy, is actively expanding into the new energy field. The target of this proposed acquisition primarily manufactures photovoltaic module equipment; upon completion, this equity acquisition will accelerate the implementation of the company’s established growth strategy and create new avenues for business expansion.
In the “14th Five-Year Plan for a Modern Energy System,” jointly issued by the National Development and Reform Commission and the National Energy Administration, it is stated that by 2025, China’s share of non-fossil energy consumption will rise to 20%, and the share of electricity generated from non-fossil sources will reach 39%. According to institutional forecasts, during the 14th Five-Year Plan period, China’s newly installed photovoltaic capacity is expected to total approximately 400 GW. Meanwhile, against the backdrop of the “dual carbon” goals, industries such as photovoltaic mounting structures and wind turbine towers are set to continue expanding.
Aiming to establish a second growth curve for new-energy infrastructure.
In fact, at the beginning of 2022, Haibo Zhongke had already begun to position itself in the new‑energy infrastructure sector. During earlier research, the company disclosed that, while strengthening and expanding its existing core business, it was exploring opportunities to extend into steel‑structure products such as wind‑turbine tower sections and photovoltaic mounting brackets. The relevant business teams are currently coordinating and advancing these initiatives, and progress on related projects will be disclosed promptly and comprehensively in accordance with applicable information‑disclosure regulations.
Over the past year, Haibo Zhongke has made steady progress in implementing its plans for the new energy sector.
In addition to the recently announced acquisition, on September 20 last year, Haibo Zhongke signed a Strategic Cooperation Agreement with Jiangsu Jinzhi Technology Co., Ltd. To advance both parties’ business in areas such as low‑carbon park development, integrated photovoltaic system deployment, energy storage and other new‑energy fields, green building, and distributed photovoltaic power stations, the two sides agreed to establish a long‑term strategic partnership.
Xie Zongbo, a researcher at the Research Institute, stated that, amid the overarching industry trends of carbon neutrality and peak carbon emissions, the new‑energy sector is poised for long‑term growth opportunities and substantial potential. An increasing number of companies—particularly listed offices—are recognizing this enduring trend and are actively engaging across all segments of the photovoltaic and other new‑energy value chains. Such participation not only injects significant capital into this emerging industry, accelerating its development, but also helps these enterprises build lasting competitive advantages and enhance their financial performance.
Some industry insiders also note that whether the company can unlock new growth drivers by developing new‑energy infrastructure will depend on the actual investment returns once the projects are implemented.
Expanding into overseas markets: Listed companies are eager to get started.
Against the backdrop of optimized entry‑and‑exit policies, several listed companies have announced plans to ramp up their international expansion. “In 2023, the company will prioritize developing and penetrating overseas markets—such as establishing a subsidiary in Canada to deepen its presence in North America—and leveraging its existing subsidiaries in France and Hungary to further strengthen its foothold in Europe,” HanChuan Intelligence said recently during an institutional investor briefing.
Since July last year, 23 listed companies have announced plans to establish a total of 26 overseas subsidiaries, spanning the United States, Europe, Southeast Asia, and other regions, signaling their eagerness to expand into international markets. According to several industry experts, many listed offices are venturing abroad under pressure to boost earnings. Overseas operations typically boast higher gross margins, and setting up foreign subsidiaries to develop related businesses helps companies compete on the global stage and enhance their financial performance. At the same time, establishing overseas entities inevitably raises challenges such as cultural differences, policy risks, and complex management structures.
Multiple factors influence the choice of location.
A review of the incorporation locations of 26 overseas companies reveals that the United States hosts the largest number of such entities, with Singapore ranking second. Southeast Asian countries including Thailand, Vietnam, and Indonesia are steadily gaining popularity, while a significant number of offices have also chosen to establish themselves in African nations such as Tanzania and Zimbabwe.
Zhang Min, the company secretary of Hanchuan Intelligence, stated that when selecting locations for establishing overseas subsidiaries, listed companies, in addition to considering local policies and the economic environment, generally prioritize proximity to their major existing customers and the ability to serve broader local markets.
Zhenjiang Shares plans to invest US$7.5 million to establish a wholly owned subsidiary in the United States. “This decision is based on an invitation from customers with whom we enjoy strong cooperative relationships. Establishing an overseas entity will enable localized marketing services and centralized after-sales support, helping the company develop and retain U.S.-based clients and expand its photovoltaic business in the American market,” Zhenjiang Shares stated.
The city’s international standing is another factor influencing companies’ location decisions. Shenghang Co., Ltd. and Xingtong Co., Ltd., both major players in the shipping industry, plan to invest US$30 million and US$35 million, respectively, to establish subsidiaries in Singapore, leveraging the country’s advantages as an international financial hub and a leading Asian shipping center to conduct international transport of liquid hazardous cargoes.
The development status and future prospects of local industrial clusters are also being taken into account by some listed companies. Zhongfu Circuit, which plans to establish a subsidiary in Thailand, stated that the country’s local printed circuit board industry chain is steadily improving, and it enjoys cost advantages in land, factory space, labor, and taxation.
Jinjia Shares, meanwhile, has recognized Indonesia’s strong advantages in policies and industrial support related to the emerging tobacco sector. With multinational tobacco companies progressively establishing a presence in the country, an industry‑wide cluster has taken shape, giving rise to a new tobacco industry landscape with international influence. Accordingly, the company has decided to invest approximately RMB 9 million to make its entry into this market.
In addition, Shengxin Lithium Energy has decided to establish a wholly owned subsidiary in Zimbabwe, leveraging the region’s lithium resources to support its future exploration and development activities.
“Going global” is becoming a trend.
“For listed companies whose products are capable of competing on the global stage, leveraging their financial strength and brand advantages to expand overseas will become a prevailing trend,” said Zhang Min. He added that international operations have long been a key strength of Hanchuan Intelligence; prior to its IPO, overseas sales accounted for as much as 70% of the company’s revenue. The company’s automotive electronics—such as connectors and sensors—serve numerous international clients and enjoy relatively high gross margins.
“Many domestic companies’ high‑quality products enjoy a strong cost‑performance advantage in international markets, while maintaining higher gross margins than in the domestic market. Under pressure to boost earnings, this has prompted numerous leading niche players in the manufacturing sector to actively engage in global competition and integrate into the worldwide value chain,” an industry insider noted. Moreover, diversifying markets and mitigating potential earnings volatility arising from differing economic cycles across countries are additional benefits of expanding overseas.
Compared with overseas warehouses or distribution centers, the advantages of an overseas subsidiary are more pronounced in terms of localization.
“Localizing the company and hiring locally not only cuts explicit costs like logistics, but more importantly, it allows us to compete in the local market as a truly local enterprise, enabling us to take root and flourish,” said Zhang Min. Although some countries are currently implementing protectionist policies such as reshoring manufacturing, these measures also create new opportunities. “The production capacity that has been lost will take time to rebuild, which in turn presents an opening for certain upstream equipment manufacturers. By proactively establishing overseas subsidiaries to secure a first-mover advantage and gradually integrating into the local industrial ecosystem, we can mitigate the impact of these policy shifts.”
Many challenges still need to be overcome.
Establishing an overseas subsidiary also entails numerous challenges. “If localization is not done well, not only will it fail to boost the company’s gross margin, but it could even turn into a money‑burning exercise,” one respondent noted.
According to the risk analyses disclosed in the announcements of various listed companies, cultural factors are frequently cited. “Although the company conducted thorough research and feasibility studies in the early stages, the United States and China have distinct legal systems and cultural contexts, and the local business‑expansion model differs from that in China; accordingly, numerous uncertainties cannot be ruled out during actual operations,” said Shenma Electric.
Zhongfu Circuit similarly cautions that Thailand’s policy framework, legal regulations, business environment, and cultural characteristics differ significantly from those in China, and Thai‑based companies face certain management, operational, and market risks during incorporation and day‑to‑day operations.
“To expand into the local market, you must truly understand your customers and the local culture,” said Ji Jun, Chairman of Changrun Co., Ltd. The company has been deeply engaged in overseas markets for more than 20 years, and today collaborates with major automakers worldwide—key to this success is its thorough understanding of both customers and local customs. “This kind of insight goes beyond simply speaking a foreign language or having studied abroad; we even assess whether key decision-makers have lived overseas for an extended period, owned property, or even faced legal challenges.”
“From overseas branches to wholly foreign‑owned subsidiaries, there is often a gradual transition from seconded domestic employees to locally hired staff. Throughout this process, considerations such as how to design the organizational structure, how to align the performance orientation of the listed company with its overseas operations, and even how to develop the skills of local employees all require careful evaluation,” says Zhang Min. She adds that overcoming these challenges hinges on the company’s management team maintaining an international outlook.
Over a hundred listed companies have issued performance forecasts, with more than 70% projecting positive results.
In the first week of 2023, A-shares posted four consecutive days of gains, signaling confidence in China’s domestic economy for the new year. Stocks with strong fundamentals were particularly favored by investors, and the annual‑report rally has quietly begun.
According to statistical data, as of January 6, more than a hundred listed companies have issued their 2022 performance forecasts, with over 70% projecting positive results. The healthcare and pharmaceutical sectors, in particular, have delivered standout performance.
Over 70% forecast positive results.
According to Wind data, as of January 6, 111 A-share companies had disclosed their 2022 annual performance forecasts. Among them, 39 forecast earnings growth, 12 expect continued profitability, 2 anticipate turning profitable, and 27 project modest gains, bringing the total number of companies with positive outlooks to 80—accounting for 72% of those that have issued forecasts.
From an industry perspective, companies issuing positive earnings forecasts are concentrated in hot sectors such as new materials, specialized equipment, healthcare, food and beverage, and pharmaceuticals. Most of these offices are leaders in their respective industries, with projected net profits topping 62 billion yuan (Kweichow Moutai) and year-on-year growth rates reaching as high as 668% (Absen). Additionally, 17 companies are expected to see their net profits double.
Looking at net profits specifically, at least 61 companies are expected to post full-year results exceeding RMB 100 million. Kweichow Moutai, Guanghui Energy, and Luxshare Precision currently rank first, second, and third, with projected net profits of no less than RMB 62.6 billion, RMB 11.3 billion, and RMB 9.55 billion, respectively.
Shanghai Yizhong-U and Xiongtao Shares both forecast a turnaround from losses in 2022. Shanghai Yizhong expects last year’s net profit to range between RMB 150 million and RMB 160 million, compared with a loss of approximately RMB 4 million in the same period a year earlier. Xiongtao Shares projects 2022 earnings of RMB 150 million to RMB 225 million, whereas it posted a loss exceeding RMB 420 million in the corresponding period of 2021. Driven by this substantial improvement in performance, both companies have won market recognition: since the release of their earnings forecasts through January 6, their stock prices have risen by more than 10% and 13%, respectively.
Shanghai Yizhong is a pharmaceutical company that has pioneered the development of paclitaxel micelles, a Class 2.2 improved new drug in China. In 2022, the company’s performance improved significantly as its core product, injectable paclitaxel polymer micelles, received marketing approval, enabling the company to officially commence commercial production and sales of paclitaxel micelles.
Regarding the substantial turnaround from losses, Xiongtao Shares stated in its announcement that the company’s lithium‑battery sales have been growing rapidly, nearly doubling annually. At the same time, the company has been actively expanding into the energy‑storage market, creating new sources of profit and room for growth. Additionally, last year, operations at its Vietnamese lead‑acid battery plant returned to normal, with a robust order backlog and a significant increase in overseas sales, contributing substantially to the company’s earnings.
Strong performance in the healthcare and pharmaceutical sectors
The healthcare and pharmaceutical sectors have stood out among a host of earnings forecasts. As of January 6, a total of 10 companies in these industries have issued earnings outlooks, and without exception, all have reported positive prospects.
Among them, in addition to Shanghai Yizhong, which has turned profitable, three pharmaceutical manufacturers—Xintian Di, Chuanning Bio, and Enwa Pharmaceutical—have issued earnings forecasts, all projecting net profits of no less than RMB 120 million, with year-on-year growth rates of at least 11%, 243%, and 5%, respectively.
Chuan Ning Bio went public on December 27, 2022. In 2022, prices for antibiotic‑intermediate products rose and remained at high levels, significantly boosting the company’s financial performance.
At the end of 2022, as China’s COVID‑19 control measures were further relaxed, demand for antibiotics surged, and the market now expects annual growth in the antibiotic sector to exceed earlier forecasts. Currently, listed pharmaceutical companies whose core product portfolios include antibiotics also include Haixiang Pharmaceutical, Luoxin Pharmaceutical, Sinopharm Modern, and Shanghai Pharmaceuticals. As of January 6, these companies have yet to issue their 2022 earnings forecasts.
With the exception of the pharmaceutical manufacturing sector, the healthcare industry has also posted relatively strong earnings forecasts, with all six reports released so far projecting positive results. Among them, Yihua Jiaye and Shanwai Shan are each forecasting minimum growth rates of 140% and 118%, respectively, with net profits exceeding RMB 350 million and RMB 42.39 million, respectively.
Yihe Jiaye is a leading domestic manufacturer of medical devices and consumables in the respiratory health sector. Its core product lineup includes home-use non-invasive ventilators, ventilation masks, sleep monitoring devices, and high-flow humidified oxygen therapy units, along with chronic disease management services for respiratory health. The company went public on November 1, 2022.
Currently, the home‑use ventilator and consumables market features high entry barriers and a relatively high level of market concentration. Globally, ResMed and Philips together account for approximately 80% of the market share, leaving substantial room for domestic substitution.
Absen forecasts a more than fivefold increase.
Absen delivered a stellar performance, with its net profit expected to surge by as much as 668% last year—exceeding market expectations—and the stock soared 16.91% the following day.
Absen’s core business encompasses the R&D, manufacturing, and sales of full-color LED displays. On January 5, the company issued an earnings forecast, projecting a net profit of RMB 180 million to RMB 230 million for 2022, up 501.16% to 668.15% year over year. Non‑GAAP net profit is expected to range from RMB 138 million to RMB 188 million, representing a year-over-year increase of 1,039.08% to 1,379.33%.
Absen reported that in 2022, it secured new orders totaling approximately RMB 3.508 billion, up about 17% year over year compared with 2021 and roughly 81% higher than in 2020. As of December 31, 2022, the company had outstanding, unconofficeed revenue orders worth approximately RMB 1.42 billion. Full-year operating revenue reached about RMB 2.8 billion, representing a year-on-year increase of roughly 20%. Last year, the company launched a total of 45 new products, providing strong support for both revenue growth and an improvement in gross margin. With the full recovery of overseas markets, overseas revenue grew by nearly 80% year over year in 2022.
In addition, Juhe Materials expects to report a net profit of RMB 370 million to RMB 390 million in 2022, representing a year-on-year increase of 49.93% to 58.04%. The company stated that, driven by the steady progress of the industry’s dual-carbon goals, the photovoltaic sector maintained strong growth momentum throughout 2022, resulting in robust demand for silver paste. Meanwhile, the company has proactively expanded into markets for 5G filter pastes, component pastes, electrochromic glass pastes, and thermally conductive structural adhesives, creating new drivers of revenue growth.
Juhe Materials has consistently focused on the research, development, production, and sales of advanced electronic pastes. Its primary product today is front-side silver paste for solar cells. Photovoltaic silver paste is a critical material for fabricating the metal electrodes of solar cells, and as the installed capacity of photovoltaic systems continues to expand, market demand for photovoltaic silver paste has been steadily increasing.
In 2023, Shaanxi Coal Industry is prioritizing digital transformation, and the drive to智能化 (intelligentization) in coal mines is accelerating.
The industry is transitioning from quantitative growth to high-quality development, shifting from a coal producer to an integrated service provider, and moving from traditional operations to digitalization.
This is the strategic objective outlined in Shaanxi Coal Industry’s 2023 key work plan, published on January 5 via its official WeChat account. Underpinning this strategic goal is the company’s digital transformation, driven by intelligent mine and smart‑mine initiatives and other efforts to advance digitalization.
“At present, the digital transformation of coal enterprises has become a major industry trend. Shaanxi Coal has been advancing its digital transformation for many years, and its numerous initiatives in areas such as smart mines and intelligent mining have set benchmarks for the sector,” said Qu Fang, an investment advisor at Wanlian Securities. He added that the drive toward intelligent operations in the coal industry is now an established trend that will continue to accelerate, thereby boosting the growth of companies specializing in coal‑mine automation and intelligence.
Intelligent automation comprehensively enhances labor productivity and the efficiency of capacity release.
“Attention, this is the Ground Control Center. Upon receiving the dispatch order, the intelligent fully mechanized mining face may commence production.”
As the ground-based control center operator presses the start button, the signal is transmitted to the underground site 300 meters away within one second, enabling the intelligent fully mechanized mining face’s pump station, conveyors, and shearer to initiate rapid startup in sequence.
The shearer employs intelligent decision-making for “memory‑based coal cutting,” while the hydraulic supports automatically follow and shift in tandem with the machine. Meanwhile, 59 high-definition cameras dynamically switch between video feeds as the shearer advances, enabling precise monitoring of the coal‑cutting process and ensuring safe, efficient operations…
This is a scene from the daily coal-mining operations at Xiaobaodang Mining Company, a subsidiary of Shaanxi Coal Industry, and it also serves as a microcosm of the company’s drive toward intelligent mining.
“Accelerating digital transformation is not only an intrinsic requirement for implementing the new development philosophy, but also an urgent task to turn that philosophy into concrete action,” said a responsible official at Shaanxi Coal Industry. Digital transformation has become the commanding height of the new round of industrial development and an inevitable choice for enterprises seeking to achieve transformations in quality, efficiency, and growth drivers. Like other coal companies, Shaanxi Coal Industry is aligning itself with the industry’s shift toward upgrading and transformation, stepping up its digitalization efforts, and striving to pursue a path of corporate development characterized by safety, environmental sustainability, high efficiency, innovation, and social harmony.
According to the aforementioned official, in recent years, Shaanxi Coal Industry has, in line with its development goals of “intelligent mines, smart mining areas, and world-class enterprises,” vigorously advanced the mechanization, intelligentization, automation, and informatization of coal mines, positioning the realization of intelligent and digital transformation as a key driver of its upgrading and restructuring.
According to reports, the 36 production mines under Shaanxi Coal Industry have achieved an intelligent production capacity of 188 million tons per year, accounting for 95% of its total capacity. Currently, seven of the nation’s first batch of smart demonstration coal mines have passed provincial-level acceptance; Zhangjiamao Coal Mine has been established as the country’s first benchmark smart mine covering the entire operation, while Xiaobaodang Coal Mine has been designated a “Shaanxi Province Industrial Internet Benchmark Factory.”
Notably, intelligent technologies have comprehensively enhanced Shaanxi Coal’s labor productivity and the efficiency of capacity release. Compared with 2018, the annual production capacity of its large‑height, fully mechanized intelligent mining faces has increased from 4.5 million tons to 8 million tons; in the northern Shaanxi and Huangling mining areas, the average annual per‑employee output exceeds 10,000 tons; the comprehensive single‑advance rate of its mines has risen from 252 meters to 407 meters, a 61.5% increase, while the fastest rapid‑excavation advance has surpassed 2,800 meters, with intelligent rapid‑excavation efficiency more than tripling.
“In recent years, the coal industry has been vigorously promoting digital transformation and accelerating the development of intelligent coal mines,” said Qu Fang. At the national level, policies such as the “Guiding Opinions on Accelerating the Intelligent Development of Coal Mines” and the “Guidelines for the Construction of Intelligent Coal Mines” have been introduced to provide support. On the listed‑company front, companies including China Shenhua, Shaanxi Coal Industry, and Yankuang Energy have also stepped up efforts to advance intelligent mining in recent years.
At a press conference early last year, the National Energy Administration announced that, according to preliminary statistics, nearly 400 coal mines nationwide are currently undertaking smart‑technology upgrades, with total investment exceeding RMB 100 billion. Approximately RMB 47 billion has already been invested, and 687 intelligent mining faces have been completed.
The coal-mining intelligence sector may soon迎来 significant opportunities.
“Coal‑mine intelligence in China boasts vast market potential.” In Qu Fang’s view, although the drive toward intelligent coal mining has been underway for several years, the sector remains largely in its early stages. Digital transformation across the coal industry is an overarching trend, and leading companies are accelerating their efforts in this area. Over the next few years, the market for intelligent coal mining is poised to seize significant growth opportunities.
The China Energy Big Data Report indicates that China’s total coal reserves currently stand at 207.885 billion tons. From January to November 2022, national coal production reached 4.09 billion tons, up 9.7% year on year—360 million tons more than in the same period last year—marking a new record for this time of year. “Moreover, in recent years, China has been reducing the number of small and medium-sized coal mines while upgrading the quality and classification of large mines, thereby expanding the scope for intelligent applications in the coal industry,” said Qu Fang.
According to data from the China National Coal Association, as of the end of 2020, China had approximately 4,700 coal mines; by the end of the 14th Five-Year Plan period, this number is expected to be reduced to around 4,000.
Meanwhile, in accordance with the “Guiding Opinions on Building Safe and Efficient Coal Mines during the 14th Five-Year Plan” for the coal industry, by the end of 2025, the average mechanization rate for coal mining will reach 99%, and that for tunneling will reach 90%. The per‑worker output and advance rates at underground mines will be further improved, with raw coal production efficiency striving to reach 16 tons per worker, and open-pit mines aiming for 50 tons per worker. Breakthroughs will be achieved in key core technologies, ensuring they are independently controllable. A smart coal‑mine system featuring intelligent sensing, intelligent decision‑making, and automated execution will be essentially in place, with 800 intelligent mining faces and intelligent coal‑mine capacity accounting for more than 60% of total output.
In its key work priorities for this year, Shaanxi Coal Industry has also called for comprehensively accelerating the development of “intelligent mines and smart mining operations” and intensifying the deployment of specialized intelligent equipment in coal mines.
“This means that the pace of coal‑mine intelligence will accelerate further, and related listed companies are likely to benefit,” said Qu Fang. Among the listed offices engaged in coal‑mine intelligence, Gongda Gaoke derives 34.69% of its core revenue from underground signal control and intelligent dispatching products, with a gross margin as high as 58.50%. Meanwhile, Longruan Technology, which specializes in mine‑site intelligence, reported a 33.5% year‑on‑year increase in net profit for the first three quarters of 2022. “These figures indicate that listed companies in this sector not only enjoy robust gross margins but also possess significant growth potential.”
“Not only have listed companies delivered strong performance, but Huawei, as a domestic technology leader, has also entered the smart‑mine sector. Its newly launched HarmonyOS is compatible with existing intelligent systems, enabling the joint development of an industrial Internet for coal mining and thereby enhancing both efficiency and safety in mining operations.” In Qu Fang’s view, the industry still has significant growth potential in 2023 and can maintain robust gross margins. Moreover, with the widespread adoption of digitalization and 5G technologies, the sector holds substantial room for further advancement going forward.
Taxation
The State Taxation Administration has issued a notice to streamline and optimize several tax collection and administration services, effective April 1.
Notice on Optimizing Certain Tax Collection and Administration Services
To the tax bureaus of all provinces, autonomous regions, municipalities directly under the central government, and cities separately listed in the national plan; to the Commissioner’s Offices of the State Taxation Administration stationed in various localities; and to all units within the Administration:
To implement the “Opinions on Further Deepening Tax Collection and Administration Reform” issued by the General Office of the CPC Central Committee and the General Office of the State Council, and in conjunction with the follow-up measures to address issues identified during the central inspection, we will further deepen the tax system’s “delegation, regulation, and service” reform, standardize basic tax collection and administration practices, and optimize tax and fee services at key stages such as registration amendments and inter‑provincial relocations. The relevant matters are hereby notified as follows:
I. Streamlining the Procedures for Registration of Changes
(1) Automatic Registration Information Updates. Effective April 1, 2023, after taxpayers complete statutory registration changes with the market regulatory authorities, they are no longer required to report such changes to the tax authorities. Tax authorities of provinces, autonomous regions, municipalities directly under the central government, and cities separately listed in the national plan (hereinafter referred to as “provincial tax authorities”) shall, based on the registration change information shared by the market regulatory authorities, automatically synchronize this information into the Golden Tax Project Phase III Core Tax Administration System (hereinafter referred to as the “Core Tax Administration System”) (see Attachment 1). For taxpayers whose registration is in an abnormal status or has been canceled as an abnormal account, the Core Tax Administration System will automatically update their registration information once they return to a normal status.
(2) Automated Notification and Push Service. With respect to notification and reminder matters arising from taxpayers’ applications for registration changes, the tax authorities shall use the Electronic Tax Bureau to deliver precise, targeted reminders to taxpayers; as for subsequent administrative matters, the core tax administration system shall automatically push pending‑task notifications to tax personnel.
(3) Ensure the proper updating of existing registration information. Taxpayers who, prior to April 1, 2023, had completed change-of-registration procedures with the market regulation authorities but had not yet updated their registration information with the tax authorities shall have their registration details amended in phases and by category, as determined by the provincial tax authorities based on the information shared by the market regulation authorities.
II. Optimizing the Tax and Fee Service Process for Inter-Provincial Relocation
(1) Streamlining the out-of‑jurisdiction transfer process. When a taxpayer relocates across provinces, after completing the registration of the change of address with the market regulatory authority, the taxpayer shall submit the “Report Form on Tax‑Related Matters for Inter‑Provincial (Inter‑City) Relocation” (Attachment 2) to the competent tax authority at the place of departure. For taxpayers who are not under tax inspection, have cancelled their invoices and tax control devices, have settled all taxes (fees), late payment penalties, and fines, and have no other outstanding tax‑related matters, the tax authority shall issue the “Conofficeation Form on Tax Administration Information for Inter‑Provincial (Inter‑City) Relocation” (Attachment 3), informing the taxpayer of the relevant qualifications and rights that will be assumed or continued in the place of relocation, as well as the obligation to file tax returns within the prescribed time limit. Upon the taxpayer’s conofficeation, the tax authority shall promptly complete the out‑of‑jurisdiction transfer procedures and transmit the relevant information to the tax authority at the place of relocation.
(2) Streamline the relocation process. Within one working day of receiving the taxpayer’s information, the competent tax authority at the place of relocation shall assign the case to the appropriate tax office, determine the applicable tax (and fee) categories, and remind the taxpayer to file tax returns within the prescribed time limit at the new location.
(3) Clarification of Relevant Matters. The following taxpayer information shall be carried forward to the place of relocation: basic taxpayer registration, filing of financial and accounting systems, real-name registration of tax-handling personnel, registration as a general VAT taxpayer, determination of VAT invoice types, the maximum invoicing limit for special VAT invoices, eligibility for immediate VAT refund upon collection, export tax refund (exemption) filing, and any previously established taxpayer credit rating.
Taxpayers may continue to apply their prepaid taxes at the place of relocation in accordance with applicable regulations; any unoffset losses for corporate income tax or individual income tax may likewise be carried forward and offset at the new location as prescribed; and any input VAT credits that have not yet been offset may also be carried forward and credited at the new location in accordance with the relevant rules, without the need to apply for the issuance of a “Transfer Form for Input VAT Credits of General VAT Taxpayers upon Relocation.”
The handling of business matters before and after relocation may refer to the “Guidance on Procedures for Inter‑Provincial (Inter‑City) Relocation” (Attachment 4).
III. Optimizing Tax Base Management Responsibilities
Tax authorities at the provincial level, in light of local tax‑base characteristics, are optimizing their tiered management responsibilities, elevating the managerial hierarchy for complex matters such as tax‑risk analysis and tax‑risk management targeting key sectors and specific taxpayer groups, and reinforcing the day-to-day administrative accountability of municipal and county tax authorities. Complex tax‑related matters that have been transferred to the jurisdiction of provincial and municipal tax authorities will, in principle, no longer be assigned to lower‑level tax authorities for handling.
IV. Strengthen Coordination of Registration Services with Market Regulation Authorities
Tax authorities in each province automatically flag relevant data in the core tax administration system based on information shared by market regulatory authorities, including deregistration, revocation of business licenses, and cancellation of establishment registration.
For taxpayers who have completed deregistration with the market regulation authority but have not yet settled their tax liabilities with the tax authorities and remain in good standing, the competent tax authority shall notify them to promptly complete tax deregistration. If they fail to do so within the prescribed time limit, the tax authority may refer the matter to the market regulation authority for lawful handling.
For taxpayers who have already completed deregistration with the market regulatory authorities but were classified as “abnormal accounts” in the core tax administration system prior to May 1, 2019, the competent tax authority may proceed directly with tax deregistration.
This notice shall take effect as of April 1, 2023. In the course of its implementation, any significant issues encountered shall be promptly reported to the State Taxation Administration (Department of Tax Collection and Information Technology).
Legal Daily: Tax administrative licensing matters are now fully managed through a list-based system and processed entirely online.
Delivering tangible results to benefit businesses and the people, providing high‑quality services to alleviate difficulties and empower enterprises: tax administrative licensing matters are now fully managed through a list‑based system and processed entirely online.
In 2022, the State Taxation Administration launched the “Spring Breeze Action for Convenient Tax Services” for the ninth consecutive year. By the end of 2022, all 121 measures—grouped into five categories and rolled out in three batches—had been fully implemented. Recently, the Administration unveiled an additional 17 measures to further enhance convenience in tax and fee services, covering six key areas: improving the quality of response to taxpayer requests, boosting the efficiency of policy implementation, elevating the level of refined services, accelerating smart tax administration, streamlining processes, and strengthening standardized enforcement. These measures mark the official launch of the 2023 “Spring Breeze Action for Convenient Tax Services.”
Focusing on diverse and individualized needs, we conduct thorough assessments to identify bottlenecks and address them, tailoring services to meet the specific requirements of different taxpayer and payer groups and enhancing the precision of our offerings. We have implemented a comprehensive list‑based management system for tax administrative licensing matters, reducing the processing time at the acceptance stage to two working days and enabling end‑to‑end online handling. Furthermore, by refining enforcement practices and safeguarding rights and interests, we are advancing the harmonization of tax enforcement standards across regions, thereby fostering a market environment that is standardized, orderly, fair, and efficient.
In the just-concluded year 2022, the State Taxation Administration thoroughly implemented the decisions and arrangements of the CPC Central Committee and the State Council, focusing on the new measures for rolling out a comprehensive package of tax and fee support policies. It further optimized the tax-related business environment, delivered tangible results, and addressed practical challenges faced by taxpayers and payers. For the ninth consecutive year, it launched the “Spring Breeze Action” to facilitate tax services. By the end of 2022, all 121 measures—grouped into five categories and rolled out in three batches—had been fully put into effect.
Recently, under the theme “Delivering Practical Benefits to Taxpayers and Serving Modernization,” and focusing on the pressing concerns, difficulties, and expectations of taxpayers and payers, the State Taxation Administration has unveiled an additional 17 measures to make tax and fee services more convenient. These measures aim to enhance the quality of response to public demands, improve the efficiency of policy implementation, elevate the level of refined services, accelerate smart tax administration, streamline processes, and strengthen standardized law enforcement—thus officially launching the 2023 “Spring Breeze Action” for Convenient Tax Services.
Precisely addressing taxpayers’ actual needs
To ensure that the 2023 “Spring Breeze Action for Convenient Tax Services” precisely addresses taxpayers’ and payers’ actual needs and tackles their most pressing concerns, since late October 2022, the State Taxation Administration has organized provincial tax authorities to launch, nationwide, both online initiatives—such as “I Offer a Proposal for the Spring Breeze Campaign”—and internal solicitation efforts—like “I Suggest a Solution for the Spring Breeze Campaign.” Through a variety of online and offline channels, the Administration has gathered feedback from market entities, all sectors of society, and grassroots tax officials. According to statistics, a total of 1.4115 million taxpayer and payer responses were collected, along with 105,500 responses from tax officials. The tax authorities have carefully analyzed these diverse needs and requests, enabling them to set the right course for the 2023 “Spring Breeze Action for Convenient Tax Services” and strive to understand the real situation, identify genuine needs, devise effective measures, and resolve practical difficulties.
To further advance the “Spring Breeze Action,” in 2022, the State Taxation Administration, based on the list of administrative licensing items approved by the State Council, issued a nationally unified list of tax‑related administrative licensing matters, fully implementing list‑based management. As a result, five items, including “approval for taxpayers’ applications to defer tax payments,” are no longer subject to administrative licensing, and the processing time for acceptance has been reduced to two working days, with all procedures conducted online. Tax authorities at the provincial level and below are strictly prohibited from administering any tax‑related administrative licenses outside this list. At the same time, the first batch of nationwide one‑stop tax and fee service items was released, and measures were formulated to streamline inter‑provincial procedures for handling business matters involving taxes and fees, essentially achieving mutual recognition of qualifications across jurisdictions. In addition, the tax authorities have eliminated the requirement to submit supporting documents for 11 export tax rebate (exemption) matters, adopted electronic storage of export tax rebate registration documents, and fully implemented “non‑contact” and “deficiency‑acceptance” processing for export tax rebates, reducing the average processing time for standard export tax rebates to within six working days.
To ensure that all taxpayer‑friendly tax and fee‑payment measures are effectively implemented, the tax authorities have strengthened oversight and performance evaluation, incorporating the outcomes of the “Spring Breeze Campaign” into their performance appraisal system. Tax organs at all levels conduct supervisory inspections—through enforcement monitoring, inspection tours, both overt and covert visits, and field research—to assess implementation progress and tangible results, while promptly tracking the follow‑up on corrective actions to guarantee that the “Spring Breeze Campaign” delivers concrete benefits.
Ensuring the effective implementation of policies to benefit businesses and alleviate their difficulties.
In 2022, amid a complex and challenging domestic and international environment and the impact of multiple unexpected factors, the CPC Central Committee strengthened macroeconomic policy adjustments that spanned both cyclical and counter-cyclical periods. It promptly and decisively implemented a new package of tax and fee support measures, including large-scale value-added tax credit refunds, as well as a comprehensive set of policies and follow-up measures—such as extending deferred payment of taxes and fees for small, medium, and micro-sized manufacturing enterprises—to stabilize the economy, thereby fostering a recovery and improvement in China’s economic performance.
The tax authorities have adopted a multi‑pronged approach to ensure the effective implementation of policies. The State Taxation Administration has established a “3×100” direct‑link mechanism for policy execution, gathering first‑hand information, strengthening monitoring and evaluation of newly introduced tax and fee support measures, and systematically identifying issues and suggestions requiring focused study and swift response, which are promptly reviewed and fed back. A nationwide, unified tax and fee knowledge‑tagging system has been put in place, comprising nine major categories, four hierarchical levels, and 4,219 specific tags, enabling precise targeting and delivery of preferential tax and fee policies. To date, 44 batches of tax and fee support policy notifications have been issued, benefiting 475 million taxpayer instances. Meanwhile, leveraging tax big data and the taxpayer‑tagging system, two rounds of customized benefit statements have been automatically generated for “specialized, refined, distinctive, and innovative” SMEs and key tax‑paying enterprises, with 12.807 million tailored statements delivered on a “point‑to‑point” basis, helping taxpayers and payers accurately calculate and fully realize the benefits of tax reductions, exemptions, and fee cuts.
Faced with the impact of the pandemic and downward economic pressures, small, medium, and micro enterprises have been struggling. In response, tax authorities have focused on the challenges and needs these businesses encounter as they resume operations and pursue innovative development. On one hand, in collaboration with the All-China Federation of Industry and Commerce, they launched the “Spring Rain Nurtures Seedlings” special campaign, introducing 12 service measures across four categories. They conducted 97,000 targeted outreach and guidance sessions for small and micro enterprises, reaching 22 million taxpayer‑payer instances, and facilitated successful supply‑chain linkages between 29,000 small and micro offices and larger enterprises. On the other hand, working jointly with the Ministry of Industry and Information Technology, they organized a SME Service Month themed “Alleviating Difficulties and Supporting Development,” during which tax authorities at all levels held 103,900 specialized briefings and training sessions, benefiting 34.58 million taxpayer‑payer instances.
By precisely aligning with enterprises’ financing needs, the “bank‑tax collaboration” initiative has continued to expand both the scale of loans and the number of beneficiaries, helping small and micro businesses convert their creditworthiness into access to financing and alleviating the challenge of obtaining funds. In the first three quarters of 2022, small and micro enterprises nationwide secured 6.855 million bank loans through this program, totaling RMB 1.61 trillion—up 34.47% year on year. While respecting enterprises’ preferences, tax authorities have leveraged tax‑related big data to match struggling offices with potential buyers and suppliers, facilitating supply‑demand connections and supporting the resumption of work and production. As of December 16, 2022, they had collected information on 9,158 enterprises facing raw‑material shortages, matched them with 44,722 suppliers, and helped 7,481 companies complete procurement and sales transactions worth RMB 19.185 billion.
The tax authorities have also leveraged information technology to focus on issues of public concern, streamline procedures for real estate transactions, reduce the administrative burden on taxpayers, and enhance the quality and efficiency of real estate registration. The State Taxation Administration has strengthened technological empowerment, guiding pilot regions to steadily implement “blockchain + real estate transaction registration,” enabling real-time data recording on the blockchain across multiple departments, including natural resources, thereby further shortening the processing time for real estate registration. In most prefecture-level and above cities nationwide, taxes and fees related to real estate registration can now be handled online.
Classification services diagnose problems and address bottlenecks.
In 2022, tax authorities at all levels closely aligned with key milestones to ensure the effective implementation of measures, continuously enhancing taxpayers’ and payers’ sense of gain and satisfaction.
The tax authorities, driven by tax‑related big data, are spearheading reforms in tax collection and administration as well as service delivery. They have piloted the online issuance of tax payment certificates, achieving a fully paperless process and issuing 8.139 million such certificates online. Additionally, they have expanded cross‑provincial electronic tax payments, processing 250,000 transactions totaling RMB 41.2 billion.
The tax authorities focus on diverse and individualized needs, implementing tailored services, diagnosing challenges, and addressing bottlenecks to provide customized support for different groups, thereby enhancing the precision of their services. For large enterprises, they have refined tax service and management mechanisms, offering certainty in tax treatment, providing advance rulings upon request, and continuously improving the group compliance‑assessment framework. They also help businesses strengthen their internal tax control and risk‑prevention systems, having compiled 453,600 copies of industry‑specific guidance and nearly 5.8998 million copies of policy compendia. For small and medium-sized enterprises, they are advancing the “one file per enterprise” service initiative for specialized, sophisticated, distinctive, and innovative SMEs as well as “Little Giant” offices, while closely monitoring their production and operations, tax and fee payments, credit ratings, and growth prospects. In the area of payment services, they have published a checklist of social security contribution procedures, clearly outlining processing steps and required documentation, promoted online acceptance of social security refund applications, and strengthened data sharing with departments such as human resources and social security and medical insurance. As a result, 2,660 counties and county‑level districts now offer in‑person “one‑stop joint handling,” providing comprehensive, one‑stop services.
The tax authorities have promoted inter‑agency data sharing, deepened international tax cooperation and exchanges, and further advanced collaborative tax governance. They have established a long‑term data‑sharing mechanism with customs, optimized the functions of the electronic tax bureau and the international trade “Single Window,” and expanded the scope of the “no‑fill‑in” option for export‑tax‑rebate declarations. In addition, they have enhanced tax policy advisory services under the Belt and Road Initiative and updated and released 104 country‑specific (or region‑specific) investment‑and‑taxation guides. At the same time, they have guided eligible regions to collaborate with local government departments to introduce 3,681 incentive measures, providing convenience to law‑abiding taxpayers in matters such as inter‑provincial relocation, government procurement bidding, and access to credit‑based loans. Furthermore, they have instructed tax authorities at all levels to improve credit‑repair procedures, broaden the scope of tax‑credit restoration, add five new categories of circumstances eligible for applying for tax‑credit repair, and establish a record‑keeping system for credit‑repair cases.
While enhancing the quality and efficiency of its services, the tax authorities have also focused on refining enforcement practices and safeguarding taxpayers’ rights, driving a transformation in both the philosophy and methods of tax administration to foster a market environment that is standardized, orderly, fair, and efficient. In 2022, the State Taxation Administration advanced the harmonization of inter‑regional tax enforcement standards and guided the tax authorities of Liaoning, Jilin, Heilongjiang, and Dalian in standardizing and unifying penalty criteria for 55 types of tax violations across seven categories, while revising the lists of powers and responsibilities of provincial and lower‑level tax agencies. At the same time, efforts to protect and uphold taxpayers’ rights were significantly strengthened. The State Taxation Administration also directed localities to establish 1,568 “Public‑Sector Lawyer Centers for Tax Dispute Consultation and Mediation,” with 4,479 public‑sector lawyers participating in 15,600 legal activities, including tax‑related dispute consultations, mediation coordination, and the issuance of advisory opinions. Furthermore, a mechanism for handling complaints regarding taxpayer and payer services, coupled with analysis and improvement measures, was put in place; normative documents underwent rights‑based reviews in accordance with laws and regulations, ensuring that the protection of taxpayers’ and payers’ rights is integrated throughout the entire process of drafting, implementing, and supervising tax‑related normative instruments.
This year, as part of the “Spring Breeze Action,” the State Taxation Administration has introduced an enhanced risk‑alert service for corporate income tax policies to help taxpayers more effectively complete their annual corporate income tax final settlement. It is also exploring ways to streamline the re‑assessment mechanism for the tax credit of newly established taxpayers: taxpayers who have been included in the tax credit management system for at least 12 months but less than one full assessment year may submit a request for re‑assessment in March or September 2023; the tax authorities will, in April or October, determine their tax credit rating based on their tax compliance record over the preceding 12 months.
 
Xiamen Tax Authorities: A Broad Discussion Builds Consensus, Driving the Spirit of the 20th National Congress of the Communist Party of China to Deepen and Take Root
“To implement the spirit of the 20th National Congress of the Communist Party of China, we must take its guiding principles as our compass, its requirements as our standards, and its mission as our calling—integrating them with General Secretary Xi Jinping’s important expositions on tax work, with the demands of tax modernization, with Xiamen’s broader economic and social development, and with the specific realities of Xiamen’s tax administration,” said Zhang Guojun, Party Secretary and Director of the Xiamen Municipal Tax Service, at the opening ceremony of the seminar for leading cadres at or above the department‑level on studying and implementing the spirit of the 20th CPC National Congress.
Studying, publicizing, and implementing the spirit of the 20th National Congress of the Communist Party of China is the top political task and a long-term strategic mission for the entire Party and the nation, both now and in the years to come. In recent days, in accordance with the deployment and requirements of the State Taxation Administration, the Xiamen tax authorities have swiftly aligned their thinking and actions with the study, publicity, and implementation of the Congress’s spirit. They have launched an extensive series of discussions on “Tax Modernization Serving Chinese‑style Modernization,” sparking wave after wave of learning enthusiasm through specialized seminars and thematic briefings. Grounded in practical realities, they have pooled wisdom and offered concrete suggestions to advance Xiamen’s vision of building a high‑quality, high‑appearance, high‑performance tax modernization hub—known as the “Four Highs” goal—thereby ensuring that the study, publicity, and implementation of the 20th CPC National Congress spirit take root and yield tangible results within the Xiamen tax system.
Thematic study tours help embed theory in both mind and heart.
Centered on themes such as “Modernizing Taxation to Serve Chinese‑style Modernization,” this three‑day thematic seminar for the Xiamen tax system on studying and implementing the spirit of the 20th National Congress of the Communist Party of China adopts a blended online‑offline format, including expert lectures, online learning, and focused group discussions, to proactively map out strategies and measures for advancing tax modernization in the new journey ahead.
It is reported that the training program specially invited Deng Liping, a member of the Standing Committee of the 13th National People’s Congress, Distinguished Minjiang Scholar and doctoral supervisor at Xiamen University, and professor at the Xiamen National Accounting Institute, to deliver a special lecture titled “Advancing Tax Development with Chinese Characteristics on the New Journey of Chinese Modernization.” Drawing on his personal insights gained from studying the spirit of the 20th National Congress of the Communist Party of China, as well as his research in tax theory and practical experience, Deng offered unique perspectives on pathways for accelerating the modernization of tax administration in the Xiamen Special Economic Zone, earning enthusiastic applause from the audience.
At the thematic seminar, Zhang Guojun emphasized that the city’s tax system must embrace a learning ethos of earnest and effective study to fully grasp the spirit of the 20th National Congress of the Communist Party of China. This entails “knowing what it is” by understanding the fundamental purpose of learning, thereby better addressing the new issues, tasks, and requirements posed by theory and practice in the new era; “knowing how to act” by adopting the right attitude toward learning—reading diligently, studying conscientiously, and reflecting deeply; “knowing how to apply what is learned” by making full use of diverse learning methods, integrating knowledge across disciplines, grounding learning in practical contexts, keeping pace with developments, and leveraging these methods to their fullest; and “clarifying what to do” by discerning the essential demands of learning—comprehending principles through reading, defining direction through reflection, transforming ideas through insight, and mastering methods through study—so as to let learning guide practical action.
“The tax sector is an important component of the Party’s cause, and the modernization of taxation is the concrete manifestation of Chinese‑style modernization in the tax field…” Guided by the spirit of the 20th National Congress of the Communist Party of China and under the theme “Tax Modernization Serving Chinese‑Style Modernization,” 53 leading cadres at or above the department level within Xiamen’s tax authorities have engaged in in-depth discussions across five thematic areas, focusing on capacity building in four key domains: organizational capability, oversight and disciplinary enforcement, reform and innovation, and implementation. Grounded in the realities of tax administration and Xiamen’s unique characteristics, they have conducted independent reflections tailored to their respective posts and responsibilities, offering innovative ideas, effective solutions, and sound policy recommendations to address operational challenges and advance the realization of the “Four Highs” vision.
“Thematic briefings and expert‑led, guided discussions have helped us deepen our understanding of the spirit of the 20th National Congress of the Communist Party of China. Participants also engaged in brainstorming sessions grounded in their day‑to‑day work, translating the insights gained from studying the Congress’s spirit into concrete measures to advance tax modernization, which has given us greater confidence and assurance in effectively implementing Xiamen Taxation’s ‘Four Highs’ vision,” said Lin Yu, a representative of the youth theoretical study group, who attentively took notes and reflected deeply throughout the seminar.
The Party Committee sets an exemplary and leading example, consolidating the theoretical foundation. By integrating the spirit of the 20th National Congress of the Communist Party of China with the large-scale discussion campaign on “Modernizing Taxation to Serve Chinese‑style Modernization,” the Xiamen Municipal Tax Service Bureau has fully leveraged the Party Committee’s role as a model, taking the lead in studying the Congress’s principles more deeply and comprehensively. Through various formats—including Party committee meetings at all levels, sessions of the Party Committee’s theoretical study group, the “Three Meetings and One Lesson” system, themed Party days, and youth theoretical study activities—the bureau has organized all cadres and employees to study the Congress’s spirit in its original form, to grasp it holistically, and to apply it to practical work, creating a sustained wave of learning, publicity, and implementation both online and offline. Furthermore, building on the leadership team’s in-depth field research and joint study visits to Party‑building liaison points, co‑construction units, and enterprises within their jurisdiction, the bureau has established a high‑caliber contingent of theoretical lecturers—akin to a “light cavalry”—and, drawing on Party‑building training bases and New Era Civilization Practice Stations, extended its outreach to reach broader audiences. It has thus carried out extensive宣讲 activities aimed at the grassroots and frontline workers, fostering a vibrant atmosphere of “everyone learns, everyone speaks,” thereby ensuring that the spirit of the 20th National Congress takes root, flourishes, and bears fruit throughout the Xiamen tax system.
Grassroots outreach ensures that learning is put into practice and yields tangible results.
“While preparing my presentation, I conducted extensive online research and sought guidance from senior colleagues, gaining a thorough understanding of the innovative measures and achievements the tax authorities have implemented since the 18th National Congress of the Communist Party of China in areas such as Party building, taxpayer services, and tax administration reform. I also carefully studied documents like the ‘Opinions on Further Deepening Tax Administration Reform,’ and deepened my knowledge of various taxes, including value-added tax, consumption tax, individual income tax, and corporate income tax…” Yang Wenfeng, who joined the tax service only last August, said that standing at the podium to deliver a speech on the theme “Implementing the Spirit of the 20th CPC National Congress: Tax Youth Envisioning Smart Taxation” and confidently articulating his vision for smart taxation has been “an extraordinary journey, rich with learning and fulfillment.”
For Lin Yijing, a contestant in the Huli District Tax Bureau’s “Light Cavalry” selection competition for theoretical宣讲, extensive reading—thoroughly digesting books and official documents and transforming their insights into her own words—along with meticulous attention to every phrase, coupled with repeated practice sessions and revisions of her speech drafts and teaching materials, is all part of an effort to tell the story of taxation in the new era effectively, ensuring that the spirit of the 20th National Congress of the Communist Party of China resonates deeply with the people and takes office root.
Using “small stories” to convey “big principles,” and “micro‑lectures” to foster “extensive learning”—recently, the Xiamen tax system’s “Golden Tax Red Sail” theoretical lecture brand was recognized as an “Outstanding Brand of the Theoretical Lecture Light Cavalry” by the Publicity Department of the CPC Xiamen Municipal Committee and the CPC Xiamen Municipal Lecturer Group, following a recommendation from the Municipal Organs Working Committee. According to officials at the Xiamen Municipal Tax Service Bureau, for four consecutive years they have organized micro‑party‑lesson lecture competitions, pioneering a “competition‑learning‑presentation” model for theoretical study and publicity. This approach seamlessly integrates the “vertical‑and‑horizontal coordination to strengthen Party building” with “neighborhood‑based Party building,” delivering highly engaging, compelling, targeted, and effective outreach in the form of “roaming lectures,” “menu‑style presentations,” and “regularized briefings.” These efforts reach grassroots communities, enterprises, neighborhoods, schools, office buildings, rural areas, and military camps, creating a “fueling station” for ideological education and a “booster” for tax‑related development, thereby ensuring that the Party’s innovative theories truly take root among the general public and bridging the “last mile” of theoretical learning and dissemination.
Inside the Community Service Center of Jinhai Subdistrict in Xiang’an District, Xiamen, the atmosphere was electric. Deng Yizheng, director of the First Tax Office of the Xiang’an District Tax Bureau and one of the “Top 100 Tax Office Directors Nationwide,” led the “Spring Breeze with Familiar Words” publicity team to deliver a live briefing on the spirit of the 20th National Congress of the Communist Party of China, drawing on his own professional experience. “When General Secretary Xi Jinping worked in Xiamen, he put forward the ‘Close Neighbor’ working philosophy,” Deng Yizheng said. “The community service center is where people most often come to handle their affairs and seek solutions, and it is also the place that is closest to the public. By holding our briefings here, we aim to bring the message right to the people.”
We have launched a “Party Theory Briefing + Tax Policy Guidance” outreach program, bringing these sessions directly to office buildings and enterprises—“close‑by” briefings that engage representatives from partner industries and businesses in joint study and reflection on the spirit of the 20th National Congress of the Communist Party of China. These face-to-face presentations not only explain tax policies but also help resolve enterprises’ tax‑related challenges. For local farmers, village residents, and senior Party members over the age of fifty, we employ a bilingual format—Mandarin combined with Minnan—to interpret key concepts from the report of the 20th CPC National Congress, such as common prosperity, rural revitalization, and improvements to the living environment, using language familiar to grassroots communities. We have also developed a multi‑dimensional briefing model—“Expert-Led Reflection, Cadre-Led Discussion and Action”—inviting Associate Professor Wang Zhixuan, Deputy Director of the Belt and Road Financial Development Research Center, to provide an in‑depth analysis of the spirit of the 20th CPC National Congress. Under the theme “Tax Modernization Serving Chinese‑Style Modernization,” we have organized discussions, writing exercises, and exchanges of outcomes. Furthermore, through video‑based “cloud connections,” we have coordinated joint learning and collaborative initiatives with Xuhui District in Shanghai and Chuxiong Prefecture in Yunnan, bringing together more than a hundred young tax officials to study the spirit of the 20th CPC National Congress in a virtual setting. From within the island to beyond its borders, and even across mountains and seas, tax officials of diverse roles and generations have come together, maintaining a spirit of dedication and a vigorous drive to strive forward. Rooted in the grassroots and focused on frontline tax work, they are truly ensuring that the spirit of the 20th CPC National Congress is thoroughly studied, effectively communicated, and earnestly implemented.
“The Xiamen Municipal Tax Service Bureau will continue to study, publicize, and implement the spirit of the 20th National Congress of the Communist Party of China. With an even more vigorous and enterprising spirit, we will deliver tangible results and achieve concrete outcomes in advancing tax collection and administration reform, ensuring the effective implementation of tax policies, and enhancing the quality and efficiency of tax and fee services. We will transform the fruitful outcomes of studying and implementing the spirit of the 20th National Congress into a source of ideological inspiration and a driving force for modernizing our tax system—internalizing it in our hearts and externalizing it in our actions—as we strive to realize Xiamen’s vision of tax modernization characterized by ‘four highs,’” said Zhang Guojun.
Litigation & Arbitration
Combining theoretical research with practical innovation to promote the high-quality development of juvenile justice in the new era.
The Fourth Circuit of the Supreme People’s Court convened the Second Symposium on Juvenile Justice in its circuit area.
To thoroughly study and implement the spirit of the 20th National Congress of the Communist Party of China, to earnestly apply Xi Jinping’s Thought on the Rule of Law, and to further strengthen judicial protection for minors and crime prevention efforts—thereby consolidating the policy framework and theoretical underpinnings of juvenile justice—the Fourth Circuit Court of the Supreme People’s Court convened, via video link, the Second Symposium on Juvenile Justice in its circuit area on the morning of December 29. The symposium was attended by responsible officials and presiding judges from the Fourth Circuit Court of the Supreme People’s Court, the Juvenile Tribunal Work Office of the Research Office of the Supreme People’s Court, the higher people’s courts of Henan, Shanxi, Hubei, and Anhui provinces, as well as the intermediate people’s courts of their respective provincial capitals, along with scholars from several universities in these four provinces.
This symposium was organized into three sections: “Fundamental Issues in Judicial Protection of Minors in the New Era,” “Responding to Cybercrime in Juvenile Justice,” and “Emerging and Complex Challenges in Juvenile Justice.” It examined legal issues related to juvenile adjudication, focusing on such topics as the judicial philosophy underlying juvenile trials, the principle of “dual protection,” the development of juvenile courts, strategies for addressing cybercrime, the determination of guilt and sentencing in cases of child sexual abuse, the system for sealing juvenile criminal records, and family‑law adjudication. Courts at all three levels from four provinces, together with academic scholars, submitted a total of 50 papers and research reports.
At the conference, the authors of 12 outstanding papers presented and exchanged their perspectives in turn. Relevant officials from the Juvenile Court Work Office of the Research Office of the Supreme People’s Court provided detailed commentary on each paper, commended the overall quality of the submissions, as well as their research designs and methodologies, and offered recommendations for strengthening theoretical research in juvenile justice.
The meeting emphasized the need to earnestly implement the spirit of the Seventh National Conference on Juvenile Courts, deeply recognize the profound significance of juvenile court work in the new era, fully perform judicial functions, intensify public legal education and outreach, and actively participate in comprehensive governance. It also called for strengthening research and guidance, enhancing professional training and the cultivation of specialized talent, and reinforcing cooperation between courts and academic institutions. Furthermore, joint research initiatives should be organized to produce a body of high‑level, influential, and practical theoretical outcomes that better inform judicial practice and propel the juvenile court system within the circuit jurisdiction toward new strides in development.
This symposium was marked by a robust academic atmosphere, a clear thematic focus, and rich content. The papers and presentations were closely aligned with judicial practice, providing strong theoretical support for enhancing the capacity and standards of juvenile justice. Moving forward, the Fourth Circuit will officely uphold and implement the principles of juvenile justice in the new era, vigorously strengthen the development of mobile court stations for juvenile cases, and actively summarize and disseminate best practices from its circuit‑wide juvenile adjudication work. In doing so, it will contribute practical experience and judicial wisdom to the ongoing refinement of China’s distinctive socialist juvenile justice system, thereby offering robust judicial services and safeguards for the healthy growth of minors.
The People’s Court Daily has selected the Top Ten Judicial Policies of the People’s Courts for 2022.
The Top Ten Judicial Policies of the People’s Courts for 2022, selected by this newspaper’s editorial board, were released on January 5.
This selection process places particular emphasis on judicial documents that effectively implement the major decisions and deployments of the Party and the state, closely address pressing social and livelihood issues, respond to public concerns, and meet the needs of judicial practice. Taking into account that certain judicial policies may fall under the same theme or field, this review has identified 17 documents from among more than 60 judicial policies and distilled them into ten thematic categories, which are presented as separate, stand-alone classifications.
The ten judicial policies that have been recognized fall into the following ten categories: improving the civil compensation system in the securities market; strengthening the protection of natural resources and the ecological environment; establishing a regulatory framework for internet-related judicial matters; giving full effect to the general provisions of the Civil Code as a guiding principle; fostering the healthy and sustainable development of the digital economy; effectively preventing and stopping domestic violence; refining adjudicatory rules in competition cases; comprehensively advancing smart governance under the rule of law; supporting the development of a unified national market; and punishing cybercrime in accordance with the law.
At the special invitation of this newspaper, ten renowned experts—including Professors Wang Liming, Wang Xinxin, and Liu Junhai of Renmin University of China; Professors Xiong Qiuhong, Wang Jinxǐ, Li Jianwei, and Wang Xinyu of China University of Political Science and Law; Researcher Wu Hongqi of Peking University; Researcher Guan Yuying of the Intellectual Property Center of the Chinese Academy of Social Sciences; and Distinguished Professor Wang Shuyi of Shanghai University of Political Science and Law—provided insightful commentary on the ten major judicial policies.
Improving the Civil Compensation System in the Securities Market
Content Guide
On January 21, 2022, the Supreme People’s Court issued the “Several Provisions of the Supreme People’s Court on the Trial of Civil Compensation Cases for False Statements in the Securities Market” and, jointly with other authorities, released a notice addressing relevant issues concerning the application of these provisions. These measures aim to standardize the legal application in court proceedings involving false‑statement cases following the abolition of the pre‑litigation filing requirement, and to refine the constituent elements of civil liability for damages.
Commentary: In order to implement the “Opinions on Strictly Cracking Down on Securities‑Related Illegal Activities in Accordance with the Law,” issued by the General Offices of the CPC Central Committee and the State Council, the Supreme People’s Court has promulgated the “Several Provisions of the Supreme People’s Court on the Trial of Civil Compensation Cases for False Statements in the Securities Market.” These provisions will further advance the maturation of China’s capital market, with four notable highlights concerning the improvement of the civil compensation regime in the securities market. First, the pre‑condition procedure has been abolished. Under Article 2, Paragraph 2 of the provisions, courts are no longer required to wait for administrative or criminal proceedings before accepting civil cases involving false statements, thereby facilitating investors’ exercise of their right to sue and potentially boosting their willingness to file claims. Second, the scope of liable parties and the rules governing internal recourse have been refined. First, the principle of “going after the principal wrongdoer” is applied: the controlling shareholders and actual controllers of the issuer—hereinafter referred to as the “dual controllers”—are now subject to direct liability. Article 20 not only permits investors to seek civil compensation directly from the dual controllers but also grants the issuer a right of recourse against them. Second, the principle of “holding accomplices accountable” is reinforced: Article 22 stipulates the civil liability of those who assist in fraudulent practices, substantially increasing the legal costs for such accomplices. Third, the rules for calculating damages have been improved. For example, Article 26, Paragraph 5 provides that courts may, based on expert opinions, refer to standard valuation methods commonly used in investments in the relevant industry to determine a benchmark price, thereby enhancing the scientific basis and acceptability of damage awards. Fourth, the criteria for determining fault and the grounds for defense have been clarified. On the basis of clearly delineating responsibilities, the provisions separately set out the standards for establishing fault and the defenses available to the issuer’s directors, supervisors, senior management, independent directors, sponsoring institutions, and securities service providers, reflecting the legal principle of assigning responsibility to each party accordingly.
Strengthen natural resource and ecological conservation.
Content Guide
In January, April, May, and June 2022, the Supreme People’s Court issued—either independently or jointly—with a series of documents, including the “Interpretation of the Supreme People’s Court on the Application of Punitive Damages in Cases Involving Ecological and Environmental Tort Disputes,” to standardize the adjudication of cases involving punitive damages for ecological and environmental harm, damage to marine natural resources, and the administration of compensation for ecological and environmental damage.
Commentary: In 2022, the Supreme People’s Court issued a series of documents in a coordinated “package” approach, including the Interpretation of the Supreme People’s Court on the Application of Punitive Damages in Cases Involving Ecological and Environmental Torts and the Interpretation of the Supreme People’s Court on Several Issues Concerning the Application of Law in Civil Disputes over Forest Resources. It also jointly released with the Supreme People’s Procuratorate the Interpretation on Several Issues Concerning the Application of Law in Criminal Cases Involving the Destruction of Wildlife Resources and the Provisions on Several Issues Concerning the Handling of Public Interest Litigation Cases Related to Marine Natural Resources and the Ecological Environment. Furthermore, in collaboration with the Ministry of Ecology and Environment, the Supreme People’s Procuratorate, the Ministry of Public Security, and the Ministry of Natural Resources, it promulgated the Regulations on the Administration of Compensation for Ecological and Environmental Damage. These measures have significantly strengthened judicial protection of the natural environment and bolstered efforts to advance ecological civilization, fully demonstrating the people’s courts’ commitment and sense of responsibility in safeguarding the ecological environment. The key points emphasized in these documents are as follows: First, further enhance judicial protection of wildlife resources, marine natural resources and the ecological environment, and forest resources; second, in adjudicating cases involving natural resources and ecological and environmental torts, rigorously uphold the green principles enshrined in the Civil Code, apply punitive damages with strict caution, ensure fairness and impartiality under the law, and fully leverage the institutional functions of punitive damages; third, to strengthen special protection of marine natural resources and the ecological environment, explicitly stipulate that the people’s procuratorates may, in accordance with the law, bring civil public interest lawsuits, administrative public interest lawsuits, and criminal‑related civil public interest lawsuits; and fourth, encourage active participation and concerted efforts across multiple departments to standardize compensation for ecological and environmental damage, advance the development of the compensation system, and continuously promote ecological civilization.
Building an Internet-Based Legal Regulatory Framework
Content Guide
In January 2022, the Supreme People’s Court issued the “Rules on Online Mediation of the People’s Courts” and the “Rules on the Online Operation of the People’s Courts,” providing guidance to courts nationwide to conduct online mediation activities through the People’s Courts Mediation Platform. These rules clarify the scope of application, organizational structure, personnel requirements, and procedural guidelines for online mediation, and set forth the requirements for the development, deployment, operation, and management of information systems that support online judicial proceedings.
Commentary: The landmark achievements of the new wave of technological revolution—such as big data, artificial intelligence, and blockchain—have profoundly reshaped judicial practices in the new era. Complementing the “Rules on Online Litigation of the People’s Courts” issued in 2021, the “Rules on the Online Operation of the People’s Courts” and the “Rules on Online Mediation of the People’s Courts,” which serve as crucial regulatory frameworks for the application of these technologies, represent milestone judicial documents of the new era. They signify that a comprehensive rule‑based system has been established for conducting court work and delivering online judicial services in the internet age, and they are of great significance for further advancing the development of an internet‑based judicial model with Chinese characteristics and world‑leading standards. These rules embody the integration of cutting‑edge technologies with China’s distinctive approach to social governance, representing a deep fusion of innovations such as big data and AI with judicial practice. They not only reflect the demands of our times but also effectively incorporate the time‑honored tradition of mediation as a means of dispute resolution, helping to foster a new landscape of multi‑stakeholder co‑governance of conflicts and disputes. They constitute a thorough synthesis of China’s economic development, scientific and technological progress, and the guiding principles of justice in the new era. Moreover, these rules constitute an important supporting measure for further advancing judicial reform. As the principle underscores, “non‑litigious dispute‑resolution mechanisms must be given priority,” provided that they are convenient and beneficial to the public and substantially reduce both the cost and complexity of resolving disputes. Backed by new technologies, these rules effectively translate technological advantages into procedural tools that enhance convenience, improve quality, and boost efficiency, thereby maximizing the potential of non‑litigious dispute‑resolution mechanisms. They deliver efficient, accessible, and affordable alternative dispute‑resolution services to the people, conserve precious judicial resources when addressing major disputes through litigation, and lay a solid foundation for the continued advancement of judicial reform.
Give full play to the guiding role of the General Provisions of the Civil Code.
Content Guide
On February 24, 2022, the Supreme People’s Court issued the “Interpretation of the Supreme People’s Court on Several Issues Concerning the Application of the General Provisions of the Civil Code of the People’s Republic of China,” which comprises sections on general provisions, civil rights capacity and civil conduct capacity, guardianship, declaration of missing persons and declaration of death, civil juridical acts, agency, civil liability, statutes of limitations, and supplementary provisions.
Commentary: The General Provisions section serves as the “framework” of the Civil Code; with the framework in place, all other provisions can be effectively implemented. Therefore, accurately understanding and properly applying the General Provisions is key to the successful implementation of the Civil Code. On February 24, 2022, the Supreme People’s Court issued the “Interpretation of the Supreme People’s Court on Several Issues Concerning the Application of the General Provisions of the Civil Code of the People’s Republic of China.” Centered on specific issues and guided by the application of law, this interpretation provides clarifications on general provisions, civil capacity and legal capacity, guardianship, declaration of missing persons and declaration of death, civil juridical acts, agency, civil liability, and statutes of limitations. It is an important judicial interpretation that robustly safeguards the implementation of the General Provisions of the Civil Code and helps fully leverage their overarching role within the entire Code. The highlights of this interpretation include: clarifying the relationship between the Civil Code and individual civil laws, thereby resolving major, difficult questions that must first be addressed in applying the Civil Code; standardizing the criteria for determining abuse of civil rights and specifying the corresponding legal consequences; defining the standards for assessing guardianship capacity and refining the rules for appointing guardians; providing more precise interpretations of relatively broad provisions in the General Provisions concerning fraud, coercion, and substantial misunderstanding; improving the rules governing the exercise of agency authority in joint representation under the General Provisions and further detailing the criteria for recognizing apparent agency; clearly defining legitimate defense and emergency avoidance, thus assisting judges in accurately determining whether such defenses or avoidances are established in specific cases; explicitly stipulating that the three-year statute of limitations may be suspended or interrupted but cannot be extended; and supplementing Article 190 of the Civil Code regarding the commencement of the limitation period for claims brought by statutory agents.
Guiding the healthy and sustainable development of the digital economy.
Content Guide
On March 1, 2022, the Supreme People’s Court issued the “Provisions of the Supreme People’s Court on Several Issues Concerning the Application of Law in the Trial of Online Consumer Dispute Cases (I),” which sets forth detailed rules regarding the determination of rights and obligations under online consumer contracts—such as the validity of standard terms—identification of liable parties, civil liability in live-stream marketing, and civil liability for food delivery services.
Commentary: No matter how vast the internet may be, it cannot surpass the reach of the law. The promulgation of the “Provisions of the Supreme People’s Court on Several Issues Concerning the Application of Law in the Trial of Online Consumer Dispute Cases (I)” is a momentous development for comprehensively safeguarding consumers’ rights and interests in China’s online consumption sector, and it marks a milestone in advancing the modernization, rule of law, and integrity‑based governance of China’s digital economy. Enacting and implementing this judicial interpretation is a people‑centric initiative that affects countless households, a long‑term economic undertaking, an integrity‑building effort to weed out misconduct and promote good conduct, a public‑relations project that fosters social harmony, and a rule‑of‑law endeavor that addresses both symptoms and root causes. This interpretation embodies a consumer‑friendly philosophy, upholding a spirit of the rule of law that balances fairness with efficiency, combines legal governance with development, and integrates integrity with innovation. It helps enhance consumers’ sense of happiness, fulfillment, and security; strengthens the credibility of the judiciary in the digital age; advances the modernization of digital‑economy governance; and promotes the coordinated, high‑quality development of the digital and real economies. Drawing on judicial experience, incorporating commercial practices, and grounded in China’s national conditions, the interpretation also aligns with international norms. Furthermore, it champions the spirit of contract—after all, the digital economy is fundamentally a contractual one. This spirit encompasses three core elements: freedom of contract, contractual justice, and strict adherence to contractual obligations. The interpretation explicitly declares five categories of persistent “unfair terms” invalid. It also distinguishes between civil and commercial transactions, providing precise protection for consumers’ rights, particularly by strengthening safeguards for the right of withdrawal, thereby helping ensure that consumers can shop with confidence, enjoy their purchases, live happily, and assert their rights rationally. In addition, the interpretation clarifies the rules for adjudicating consumer disputes arising on food‑delivery platforms. With food being paramount and safety taking precedence, and safety resting on a solid legal foundation, it contributes to safeguarding public health and ensuring safety at the dining table.
Effectively prevent and stop domestic violence.
Content Guide
In March and July 2022, the Supreme People’s Court issued—jointly with other authorities—the “Opinions on Strengthening the Implementation of the Personal Safety Protection Order System” and the “Provisions of the Supreme People’s Court on Several Issues Concerning the Application of Law in Handling Cases Involving Personal Safety Protection Orders,” thereby clarifying the institutional mechanisms for implementing the personal safety protection order system and articulating the rules governing judicial adjudication.
Commentary: Both the “Opinions on Strengthening the Implementation of the Personal Safety Protection Order System” and the “Provisions of the Supreme People’s Court on Several Issues Concerning the Application of Law in Handling Cases Involving Personal Safety Protection Orders” are centered on enforcing the personal safety protection order system and combating domestic violence. They are highly targeted and practical, yet each adopts a distinct focus. The Opinions place greater emphasis on how to more effectively protect minors—promptly identifying instances of violence, helping them escape abusive situations, and mitigating the adverse consequences. Minors who experience domestic violence often do so in ways that are more concealed and make self‑rescue considerably more difficult. Building on the mandatory reporting system, seven government departments have established a coordinated mechanism that creates an evidentiary chain: hospitals report to public security organs, which in turn report to the courts. This transforms judicial relief from a passive response into proactive protective measures. By clearly defining specific reporting obligations and implementing phased, relay‑style protection, this pragmatic approach effectively addresses the critical gap in minors’ capacity for self‑remedy. By contrast, the Provisions highlight anti‑violence principles more prominently, particularly with respect to violence against women. They treat practical issues surrounding personal safety protection orders as key entry points, stipulating that filing such an application does not depend on whether divorce proceedings are pending, nor on whether the applicant has engaged in misconduct such as infidelity, nor on whether evidence of domestic violence is conclusive. As long as violence occurs, a personal safety protection order may be issued—sending a powerful judicial signal to society that perpetrators will be held accountable and victims will be protected. Both documents prioritize the effective mitigation of the consequences of violence, combining punishment, relief, and public awareness‑raising, thereby translating societal expectations of the judiciary into concrete action. In both their judicial functions and their broader social impact, they exemplify the spirit of justice even in the smallest details.
Refining the Rules Governing Adjudication of Competition Cases
Content Guide
On March 16, 2022, the Supreme People’s Court issued the “Interpretation of the Supreme People’s Court on Several Issues Concerning the Application of the Anti-Unfair Competition Law of the People’s Republic of China.” In accordance with the amended Anti-Unfair Competition Law, the interpretation provides detailed guidance on the identification of acts such as those covered in Article 2 of the law, imitation and confusion, false advertising, and unfair competition conducted online.
Commentary: Adhering to the principles of good faith and generally accepted commercial ethics is a fundamental tenet of civil and commercial activities. Given that acts of unfair competition target intangible informational property interests—consistent with the objects of intellectual property protection—the Convention Establishing the World Intellectual Property Organization, adopted in 1967, explicitly incorporated “the right to prevent unfair competition” into the definition of “intellectual property.” With the advancement of digital technologies and the development of the network economy, competitive dynamics have undergone profound transformations, and ever‑evolving competitive practices have given rise to novel disputes involving unfair competition. Consequently, questions regarding the delineation of rights and the attribution of liability in emerging sectors and business models continue to pose new challenges for the judiciary. In response, the Supreme People’s Court has issued the Interpretation on Several Issues Concerning the Application of the Anti-Unfair Competition Law of the People’s Republic of China, which provides targeted guidance. Article 1 of this Interpretation clarifies the relationship among general provisions, specific conduct‑based provisions, and the special rules set forth in specialized intellectual property laws, while also afofficeing the residual applicability of the general provisions. The Interpretation further specifies the criteria and adjudicatory standards for identifying behaviors such as breaches of commercial ethics, imitation and confusion, and false advertising, and appropriately supplements the scope of Article 12, which addresses online unfair competition. Moreover, it expressly stipulates that Chinese courts should proactively exercise jurisdiction over unfair competitive practices where the conduct occurs outside China but the effects are felt within its territory, thereby aligning with the current and future trend of dual circulation—domestic and international markets. This Interpretation represents an important rule‑of‑law initiative aimed at consolidating judicial experience, standardizing adjudicatory rules and standards, and enhancing the overall framework for resolving competition‑related cases. It will help refine the rules governing the adjudication of competition matters, foster a fair, transparent, and predictable competitive environment, and provide valuable research materials and a solid theoretical foundation for deepening legal scholarship and advancing legislative reform.
Comprehensively advance the development of smart rule of law.
Content Guide
In May and December 2022, the Supreme People’s Court issued the “Opinions of the Supreme People’s Court on Strengthening the Judicial Application of Blockchain” and the “Opinions of the Supreme People’s Court on Regulating and Enhancing the Judicial Application of Artificial Intelligence,” which set forth the overarching requirements for bolstering blockchain-based judicial applications, the standards for platform development, and the relevant guidelines for the use of artificial intelligence technologies by the people’s courts.
Commentary: In recent years, China’s court system has embraced digital transformation with a highly proactive and vigorous stance, implementing a series of major initiatives to foster the deep integration of justice and technology. Building on previously introduced rules governing online litigation, online mediation, and online operations, in 2022 the Supreme People’s Court issued two additional landmark documents that strengthen the judicial application of blockchain and artificial intelligence, squarely addressing key challenges in the development of smart courts. These documents outline a clear roadmap for the future evolution of smart courts and advance the construction of a smarter rule of law to higher levels. The two documents share several common features: First, they articulate a well-defined vision for the next phase of smart‑court development, setting specific milestones for 2025 and 2030 and establishing concrete objectives for the rapidly advancing applications of blockchain and AI in the judiciary. Second, they establish fundamental principles guiding the judicial use of these technologies—articulating four core principles for blockchain‑based judicial applications and adopting an ethics‑first approach to AI‑driven judicial practices, with five essential principles to be observed. These foundational principles provide a robust framework for the practical deployment and further advancement of blockchain and AI within the judicial system. Third, they clarify the strategic positioning of blockchain and AI in judicial contexts, emphasizing the full‑scale utilization of blockchain’s tamper‑proof data‑management capabilities and identifying key application scenarios for AI, thereby enabling these technologies to deliver comprehensive support across all facets of judicial work. Fourth, they set out comprehensive safeguards for the judicial application of blockchain and AI, encompassing organizational leadership, coordination mechanisms, and measures ensuring security and reliability.
Serving the development of a unified national market.
Content Guide
On July 14, 2022, the Supreme People’s Court issued the “Opinions of the Supreme People’s Court on Providing Judicial Services and Guarantees for Accelerating the Development of a Unified National Market,” which, in close alignment with the central government’s strategic directives, sets out overarching requirements for the people’s courts to support and safeguard the construction of a unified national market, and introduces a comprehensive package of measures—known as the “Five Unifications”—to strengthen the unified and equal protection of all market entities.
Commentary: In April 2022, the CPC Central Committee and the State Council jointly issued the “Opinions on Accelerating the Construction of a Unified National Market.” The market itself is inherently a concept that embodies national unity. From a regulatory perspective, a market economy is, by definition, a rule-of-law economy. To accelerate the development of a unified national market and deepen market-oriented reforms, it is essential to harness the guiding, normative, and protective roles of the rule of law. The Supreme People’s Court has released the “Opinions of the Supreme People’s Court on Providing Judicial Services and Guarantees for Accelerating the Construction of a Unified National Market,” emphasizing the need to fully implement the spirit of the central documents. Courts across the country are called upon to ensure the uniform and correct application of laws nationwide, thereby upholding the consistency of market rules and supporting the building of a unified national market. National uniformity of rules is not only a prerequisite for market integration but also a crucial means of achieving a truly unified national market. The courts’ primary focus is to ensure the uniformity of judicial norms, safeguard a consistent market‑based economic order, and reduce the judicial component of transaction costs. These Opinions propose serving and safeguarding the construction of a unified national market through “five forms of unification”: strengthening unified and equal protection of market entities; helping to establish a unified market for factors of production and resources; upholding uniform market‑transaction rules in accordance with the law; promoting a high‑level, unified market for goods and services; and effectively maintaining a fair and orderly competitive market environment. To this end, courts at all levels are required, in line with the provisions of the central documents and these Opinions, to establish and improve a nationwide mechanism for judicial services and safeguards that aligns with the accelerated development of a unified national market. By ensuring judicial uniformity, the courts will help dismantle local protectionism and regional barriers, advance market integration, better meet the demands of high‑quality development, and comprehensively enhance and optimize China’s business environment.
Punish cybercrime in accordance with the law.
Content Guide
On August 26, 2022, the Supreme People’s Court, in conjunction with the Supreme People’s Procuratorate and the Ministry of Public Security, jointly issued the “Opinions on Several Issues Concerning the Application of Criminal Procedure in Handling Cybercrime Cases,” thereby deepening efforts to combat cybercrime and further standardizing procedures related to jurisdiction, evidence collection, evidence review, and the handling of property involved in such cases.
Commentary: With the rapid advancement of information and network technologies, the number of cybercrime cases has been steadily increasing, and their societal harm is growing ever more severe. Such criminal activities not only seriously disrupt social order and infringe upon citizens’ legitimate rights and interests, but also impede economic and social development and undermine social harmony and stability. The inherent characteristics of cybercrime—its concealment, virtuality, and technological sophistication—pose new challenges to criminal proceedings. In judicial practice, issues persist, including unclear jurisdiction, non-standardized collection of electronic evidence, difficulties in obtaining evidence, and obstacles to ascertaining the facts of the crime. As a systemic response, the Supreme People’s Court, together with the Supreme People’s Procuratorate and the Ministry of Public Security, has jointly issued the “Opinions on Several Issues Concerning the Application of Criminal Procedure in Handling Cybercrime Cases,” which supersedes the 2014 “Opinions on Several Issues Concerning the Application of Criminal Procedure in Handling Internet‑Related Crimes.” These opinions provide specific provisions addressing key issues such as the scope of cybercrime cases, jurisdiction, investigation and verification, cross‑jurisdictional evidence collection, the collection and examination of electronic data, technical investigative measures, the handling of mass‑impact cases, and the disposition of property involved in the offenses, thereby offering a relatively clear legal framework for public security and judicial authorities to handle cybercrime matters. Grounded in judicial practice and tailored to the distinctive features of such cases, these Opinions refine relevant provisions of the existing Criminal Procedure Law, effectively meeting the special needs of combating cybercrime. Looking ahead, the criminal procedural framework for cybercrime cases still requires systematic structuring and refined regulation, built upon a thorough synthesis of judicial experience. At the same time, the capacity of judicial personnel to handle such cases will continue to improve, and cooperation between internet service providers and public security and judicial organs will be further strengthened.
“The Selected Cases of the Supreme People’s Court of the People’s Republic of China” has been chosen as “One of Our Best Foreign‑Promotion Publications.”
To celebrate the successful convening of the 20th National Congress of the Communist Party of China, with approval from the Publicity Department of the CPC Central Committee, the National Press and Publication Administration hosted, and the China Press, Publication, Radio, Film and Television News reported undertook, the event “An Extraordinary Decade of China’s Publishing Going Global in the New Era.” From among more than 10,000 foreign‑oriented titles published by major publishers nationwide, 18 works were selected for release both domestically and internationally. Among them, the “Selected Cases of the Supreme People’s Court of the People’s Republic of China” (hereinafter referred to as the “Supreme People’s Court Case Selection”) was chosen as the sole legal‑subject book to be recognized as “the best‑produced foreign‑oriented publication.”
According to reports, in 2020 China exported a total of 13,895 types of publications—covering books, newspapers, periodicals, audiovisual products, and electronic publications—abroad. Among the titles selected for the “Best Foreign‑Promotion Books We Have Produced” are “Plain and Approachable: The Power of Xi Jinping’s Language” (Diplomatic Edition), the “Understanding the Chinese Path” series, “The Great Road Is Not Lonely: The International Influence and Global Significance of Socialism with Chinese Characteristics in the New Era,” and “A Century of Scientific Stories: An Interview with Yang Zhenning,” among others.
The “Selected Cases of the Supreme People’s Court” series was previously featured in a special issue of CBI (China Books in English), Issue 9, 2022. Published under the guidance of the State Council Information Office and the National Press and Publication Administration, this large-scale English-language journal—established by the Barcode Center of the National Press and Publication Administration—presents a comprehensive and holistic view of Chinese publishing and China as a whole to the international community. Its primary readership includes Chinese embassies and cultural institutions abroad, foreign embassies and cultural institutions in China, overseas publishers and distributors, and libraries worldwide.
Since its launch in 2019 and subsequent distribution both domestically and internationally, the “Selected Cases of the Supreme People’s Court” series—available in Chinese and English—has, with the strong support of the leadership of the Supreme People’s Court and the active collaboration of relevant internal departments and legal publishing houses, published six volumes in Chinese and three in English. To date, it has compiled 245 cases adjudicated by the Supreme People’s Court between 2015 and 2021, covering criminal, civil and commercial, intellectual property, maritime and shipping, administrative, and enforcement matters, thereby presenting, in a concentrated and systematic manner, the Court’s judicial achievements at home and abroad. Particularly since the global COVID‑19 pandemic began in 2020, amid growing anti‑globalization trends and mounting barriers to China’s cultural outreach, this series has employed vivid judicial cases to “tell the story of China’s rule of law in China’s own voice,” enabling more countries and regions to gain a deeper understanding of a law-based China and the Supreme People’s Court. It has also disseminated the principles of socialist rule of law with Chinese characteristics, contributed Chinese judicial ideas and approaches to global governance, and underscored China’s confidence in its institutional and cultural systems.
Pursuant to an exchange of notes between Chief Justice Zhou Qiang of the Supreme People’s Court and President Sīsīlèinàs of the European Court of Human Rights, the International Cooperation Bureau of the Supreme People’s Court has, since December 2019, made the electronic edition of this book series available to the European Court of Human Rights as the official text for case‑law exchanges between the two institutions. Harvard Law School and its library, Oxford University’s Faculty of Law and its library, the Swiss Institute of Comparative Law, and the Faculty of Law at the University of Tokyo have all included this series in their rare‑book collections. Furthermore, the Dag Hammarskjöld Library at United Nations Headquarters in New York, the Library of the United Nations Office at Geneva, and the Library of the International Court of Justice have contacted the China Institute of Applied Law, expressing their intention to preserve the English‑language edition of this series. From December 2019 to December 2022, the English‑language edition of this series was featured on a dedicated section of Springer’s website—where overseas publications are predominantly issued in digital format—and has accumulated over 20,000 downloads.
The Editorial Department of the “Selected Cases of the Supreme People’s Court” will solicit extensive feedback from authors and readers at home and abroad, continuously draw on experience, and further enhance the quality of the series, striving to establish it as a renowned brand for the Supreme People’s Court’s external publicity and an international platform for China’s judicial system and cultural exchanges.

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