JC Master Legal News Issue 1051

Key Takeaways for This Issue

The exchange-traded bond market has officially launched its bond market-making business.
To promote the high-quality development of the bond market, enhance market vitality, and improve the price-discovery mechanism, the China Securities Regulatory Commission has, in recent years, consistently guided the Shanghai and Shenzhen Stock Exchanges in strengthening efforts to develop the secondary market. At present, all preparatory work for bond market‑making has been completed, and the program will officially launch on February 6, with an initial cohort of 12 securities offices participating in market making.
The China Securities Regulatory Commission is soliciting public comments on the key institutional rules for the full implementation of the stock issuance registration system.
 Recently, the CPC Central Committee and the State Council approved the “Overall Implementation Plan for Fully Instituting the Stock Issuance Registration System.” To ensure effective implementation of the Plan, the China Securities Regulatory Commission has publicly solicited comments from the public on draft versions of key regulatory rules, including the “Administrative Measures for the Registration of Initial Public Offerings,” that are pertinent to the full implementation of the stock issuance registration system.
Complementary Rules for the Optimization of the Stock Connect Trading Calendar Have Been Released.
On January 19, with the approval of the China Securities Regulatory Commission, the Shanghai Stock Exchange, the Shenzhen Stock Exchange, and China Securities Depository & Clearing Corporation jointly issued the relevant supporting rules and notices, thereby solidifying the institutional foundation for optimizing the Stock Connect trading calendar and marking a milestone in the ongoing efforts.
Last year, the total amount of new tax and fee reductions, tax refunds, and deferrals exceeded 4.2 trillion yuan.
In 2022, China implemented a series of tax and fee support policies, enhancing enterprises’ sense of gain. That year, the National Bureau of Statistics conducted three surveys on the effectiveness of the carryforward VAT refund policy among industrial enterprises.
Finance & Capital Markets
The exchange-traded bond market has officially launched its bond market-making business.
To promote the high-quality development of the bond market, enhance market vitality, and improve the price-discovery mechanism, the China Securities Regulatory Commission has, in recent years, consistently guided the Shanghai and Shenzhen Stock Exchanges in strengthening efforts to develop the secondary market. At present, all preparatory work for bond market‑making has been completed, and the program will officially launch on February 6, with an initial cohort of 12 securities offices participating in market making.
Bond market-making has become a widely adopted trading mechanism in international markets. Launching bond market-making activities will, on the one hand, help reduce liquidity premiums and bond issuance costs, enhance the functionality of the exchange‑traded bond market, and further strengthen the bond market’s role in supporting the real economy. On the other hand, it will improve pricing efficiency, enable the formation of a bond yield curve that more accurately reflects market supply and demand, and provide a benchmark for market pricing.
Going forward, the China Securities Regulatory Commission will earnestly implement the directives set forth at the 20th National Congress of the Communist Party of China to “improve the functions of the capital market and increase the share of direct financing,” continue to strengthen the development of the exchange‑traded bond market, and guide the Shanghai and Shenzhen stock exchanges in steadily and orderly carrying out bond market‑making activities, thereby better supporting high‑quality economic development.

The China Securities Regulatory Commission is soliciting public comments on the key institutional rules for the full implementation of the stock issuance registration system.
The Party Central Committee with Comrade Xi Jinping at its core attaches great importance to the reform of the stock issuance registration system. The Fifth Plenary Session of the 19th CPC Central Committee proposed fully implementing the stock issuance registration system. The 20th National Congress of the CPC emphasized improving the functions of the capital market and increasing the proportion of direct financing. Recently, the CPC Central Committee and the State Council approved the “Overall Implementation Plan for Fully Implementing the Stock Issuance Registration System” (hereinafter referred to as the “Overall Plan”). To ensure effective implementation of the Overall Plan, the China Securities Regulatory Commission has publicly solicited opinions from the public on draft versions of key regulatory rules, including the “Administrative Measures for the Registration of Initial Public Offerings,” that are relevant to the full implementation of the stock issuance registration system.
On November 5, 2018, General Secretary Xi Jinping announced at the opening ceremony of the first China International Import Expo that a Science and Technology Innovation Board (STAR Market) would be established on the Shanghai Stock Exchange (SSE), with a pilot registration-based system, marking the entry of the registration‑based reform into its implementation phase. On July 22, 2019, the first batch of companies listed on the STAR Market began trading. Subsequently, the CPC Central Committee and the State Council decided to advance the reform of the ChiNext Board of the Shenzhen Stock Exchange (SZSE) and to pilot a registration‑based system, which was officially launched on August 24, 2020. On November 15, 2021, the Beijing Stock Exchange (BSE) was inaugurated and commenced trading, simultaneously piloting a registration‑based system. Overall, after four years of piloting, market participants have broadly endorsed the basic framework and institutional rules of the registration‑based system; the capital market’s ability to serve the real economy, particularly technological innovation, has been significantly enhanced; major breakthroughs have been achieved in the rule of law; issuers and intermediary institutions have steadily strengthened their awareness of compliance and integrity; the market’s mechanism for survival of the fittest has become more robust; and the market structure and ecosystem have been markedly improved, laying the groundwork for full‑market rollout.
The guiding principle behind the full implementation of the stock issuance registration system is to thoroughly implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the spirit of the 20th National Congress of the Communist Party of China, to carry out the decisions and arrangements of the CPC Central Committee and the State Council, and to focus squarely on the overarching goal of building a capital market that is standardized, transparent, open, dynamic, and resilient. This entails fully, accurately, and comprehensively applying the new development philosophy, adhering to the general work tone of seeking progress while maintaining stability, upholding the principles of establishing sound systems, non‑interference, and zero tolerance, and staying committed to a reform path that is market‑oriented and governed by the rule of law. It also requires respecting the fundamental essence of the registration system, drawing on global best practices, and reflecting China’s distinctive features and stage‑specific development conditions. Above all, it emphasizes that the core of this registration‑system reform lies in empowering the market to make its own choices, while simultaneously strengthening regulatory oversight, advancing a comprehensive package of reforms, enhancing the functions of the capital market, increasing the share of direct financing, and better promoting high‑quality economic development. The main hallmarks of the full implementation of the stock issuance registration system are: a fundamentally finalized institutional framework; nationwide coverage of all securities trading venues; and encompassing all types of public offerings of shares. In terms of the reform approach, it is essential to keep in mind “one unification” and “three coordinated efforts.” “One unification” refers to the unified registration‑system arrangement and its full application across all market segments of national securities trading venues. The “three coordinated efforts” are as follows: first, coordinating the improvement of a multi‑tiered capital market system; second, coordinating the advancement of foundational institutional reforms; and third, coordinating the strengthening of the CSRC’s own capacity‑building.
This reform will draw on the experience gained from the pilot registration‑based system, extend those mechanisms that have proven effective in practice, and further refine the registration framework. First, the registration process will be streamlined. The basic structure—where exchange review and CSRC registration each have distinct focuses yet remain closely coordinated—will be maintained. The exchanges’ primary responsibility for reviewing issuance and listing applications will be strengthened: they will conduct a comprehensive assessment of whether companies meet the eligibility criteria, listing requirements, and information‑disclosure obligations. The CSRC will then make a legally mandated decision on whether to approve registration based on the exchanges’ review opinions. Second, the registration regime will be unified. The rules governing the pilot registration systems of the Shanghai Stock Exchange and the Shenzhen Stock Exchange will be consolidated, with the issuance of unified Measures for the Registration Management of Initial Public Offerings and Measures for the Registration Management of Securities Issuance by Listed Companies. The Beijing Stock Exchange’s registration rules will also be broadly aligned with those of the Shanghai and Shenzhen Exchanges. Meanwhile, each exchange will formulate or revise its own unified set of business rules for reviewing stock issuance and listing applications. Third, the oversight and checks-and-balances mechanism will be improved. The CSRC will enhance its overall coordination, supervision, and performance evaluation of the exchanges’ review work, urging them to raise the quality of their reviews. The composition, terms of office, responsibilities, and procedural rules of the Listing Committee and the Restructuring Committee (hereinafter referred to as the “Two Committees”) will be reformed and refined, with higher standards imposed on political integrity, professional background, and ethical conduct; the proportion of full‑time staff will be increased, disciplinary constraints tightened, and the gatekeeping role of the Two Committees effectively reinforced. In addition, the National Equities Exchange and Quotations System (hereinafter referred to as the NEEQ) will adopt the registration system in parallel, with arrangements broadly consistent with those of the stock exchanges. Specifically, for joint‑stock companies with no more than 200 shareholders seeking to list on the NEEQ, or for NEEQ‑listed companies whose shareholder count does not exceed 200 following a targeted share issuance, the China Securities Regulatory Commission will waive the registration requirement upon approval by the National Equities Exchange and Quotations Co., Ltd. (hereinafter referred to as the NEEQ Company)—a measure currently exempting such issuances from prior approval.
At its core, the registration‑based reform seeks to empower the market with decision‑making authority while strengthening both market‑driven and rule‑of‑law constraints. Ultimately, it represents an adjustment to the relationship between government and the market. Compared with the approval‑based system, this reform entails not only a shift in the reviewing authorities but, more importantly, a thorough implementation of an information‑disclosure‑centric approach, making the entire process of issuance and listing more standardized, transparent, and predictable. First, the conditions for issuance and listing have been substantially streamlined. Under the registration system, only the minimum eligibility and compliance requirements necessary for a company to issue shares publicly are retained; the substantive thresholds previously imposed under the approval system have been largely converted into disclosure obligations, and regulatory authorities no longer assess the investment value of issuers. Second, rigorous oversight of information‑disclosure quality has been officely established. The adoption of the registration system by no means relaxes quality standards; on the contrary, review and gatekeeping have become even stricter. The review process is conducted primarily through targeted inquiries, ensuring that issuers disclose information truthfully, accurately, and comprehensively. At the same time, a range of measures—including multi‑factor verification, on‑site supervision, field inspections, investigations of complaints and reports, and regulatory enforcement—are employed to hold issuers fully accountable for their disclosure responsibilities and to reinforce the “gatekeeper” role of intermediary institutions. Third, the review process remains open and transparent. The criteria, procedures, content, progress, and outcomes of registration reviews are all made public, ensuring full transparency in the exercise of public authority, robust checks and balances, and active public oversight—fundamentally distinguishing this approach from the approval‑based system.
The centerpiece of this reform is the main boards of the Shanghai Stock Exchange and the Shenzhen Stock Exchange. Over more than three decades of reform and development, China’s stock exchange market has evolved from a single-tier system to a multi‑level structure, with a market landscape that features differentiated positioning and complementary functions now largely in place. In light of this reality, following the reform, the main board will emphasize large‑cap blue‑chip stocks, focusing on supporting high‑quality enterprises with mature business models, stable operating performance, substantial scale, and strong industry representativeness. Accordingly, it will adopt diversified and inclusive listing criteria, while maintaining clear distinctions from the STAR Market and the ChiNext Board. With the main board reform, the multi‑tiered capital market system will become even more clearly defined, broadly covering companies across different industries, types, and stages of growth. The main board will primarily serve large, mature enterprises. The STAR Market will highlight its “hard‑tech” orientation and serve as a testing ground for capital market reforms. The ChiNext Board will focus on supporting growth‑stage innovative and entrepreneurial offices. Meanwhile, the Beijing Stock Exchange, together with the National Equities Exchange and Quotation System, will jointly establish a dedicated platform for serving innovative small and medium‑sized enterprises.
This reform will further refine the capital market’s foundational institutional framework. Key measures include: improving the issuance and underwriting system to curb irrational pricing; upgrading the trading regime and optimizing margin trading, short selling, and securities lending mechanisms; enhancing the independent director system for listed companies; establishing a robust, normalized delisting mechanism to ensure smooth access to diversified exit channels; and accelerating reforms on the investment side to attract more medium- and long-term capital. At the same time, the National Equities Exchange and Quotations System will be supported in exploring and refining a set of basic institutional arrangements better tailored to the needs of small and medium-sized enterprises.
The registration-based reform is a reform that combines deregulation with effective oversight. The China Securities Regulatory Commission will, in light of China’s current realities—namely, an underdeveloped capital market, a high proportion of small and medium-sized investors, and an imperfect integrity environment—strengthen regulatory scrutiny across all stages of the issuance and listing process. Adhering to the principle of “accountability upon filing,” it will hold issuers and their actual controllers fully accountable. It will also urge intermediary institutions to fulfill their duties and enhance their capacity-building efforts. Furthermore, it will reinforce coordination between issuance supervision and ongoing oversight of listed companies, thereby standardizing corporate governance. With a zero-tolerance stance, it will rigorously crack down on illegal and non-compliant practices such as fraudulent offerings and financial fraud, effectively safeguarding the legitimate rights and interests of investors.
The registration‑based reform represents a profound transformation that touches upon regulatory philosophy, the regulatory system, and regulatory approaches. The China Securities Regulatory Commission will continue to place political development first, uphold a clear political stance, proactively adapt to new circumstances and tasks, deepen the “delegation, regulation, and service” reform, accelerate the shift in regulatory functions, and refocus its priorities on overall coordination, rule‑making, oversight and inspection, market order management, and the creation of a conducive regulatory environment. In doing so, it will effectively enhance its regulatory capacity and strengthen ongoing and post‑event supervision.
The China Securities Regulatory Commission attaches great importance to preventing integrity risks under the registration-based system. It has established and improved a comprehensive oversight and checks-and-balances mechanism that covers every stage of the process, from issuance and listing to refinancing, mergers and acquisitions, delisting, and regulatory enforcement. The Commission has strengthened measures to guard against integrity risks among personnel in key positions and intensified supervision of ethical conduct within the industry. Meanwhile, the Discipline Inspection and Supervision Group of the Central Commission for Discipline Inspection and the National Supervisory Commission stationed at the CSRC conducts on-site oversight of the Shanghai and Shenzhen Stock Exchanges, maintains zero tolerance for corruption in the capital markets, and promotes, in an integrated manner, a culture of deterrence, prevention, and self‑discipline. Through sustained efforts to uphold proper conduct and enforce discipline, the Commission has effectively fostered a climate of strict compliance.
The regulatory framework currently open for public comment comprises the CSRC’s rules, such as the Measures for the Administration of Registration of Initial Public Offerings, along with related normative documents, covering areas including the registration-based system, sponsorship and underwriting, and mergers and acquisitions. Meanwhile, the Shanghai and Shenzhen Stock Exchanges, the National Equities Exchange and Quotations Co., Ltd. (Beijing Stock Exchange), China Securities Depository & Clearing Corporation, and China Securities Finance Corporation have concurrently solicited public feedback on business rules, including the Rules on the Review of Stock Issuance and Listing.
We welcome valuable feedback from all sectors of society. The China Securities Regulatory Commission will further revise and refine the aforementioned draft regulatory rules based on the public consultation, and will promulgate and implement them after completing the requisite procedures.

Complementary Rules for the Optimization of the Stock Connect Trading Calendar Have Been Released.
In August 2022, the China Securities Regulatory Commission, together with the Hong Kong Securities and Futures Commission, issued a joint announcement to launch the optimization of the trading calendar for the Shanghai–Shenzhen–Hong Kong Stock Connect programs. Since the initiative was launched, both markets have been actively and prudently advancing preparatory measures to implement the various aspects of the trading‑calendar reform. On January 19, with the approval of the CSRC, the Shanghai Stock Exchange, the Shenzhen Stock Exchange, and China Securities Depository & Clearing Corporation formally released the relevant supporting rules and notices, thereby solidifying the institutional framework for optimizing the Hong Kong Stock Connect trading calendar and marking a significant milestone in the ongoing efforts.

The optimization of the trading calendar for the Shanghai–Shenzhen–Hong Kong Stock Connect is a key measure to enhance the mutual market access mechanism between the mainland and Hong Kong stock markets. It represents concrete, pragmatic cooperation between the regulatory authorities of the two jurisdictions, addresses the concerns of investors both within and outside China, and will help foster the long-term, stable, and sound development of the capital markets in the mainland and Hong Kong.

Going forward, the China Securities Regulatory Commission will earnestly implement the spirit of the 20th National Congress of the Communist Party of China, continue to expand high-standard, institution-based opening-up, and, in coordination with the Securities and Futures Commission of Hong Kong, guide the Shanghai Stock Exchange, the Shenzhen Stock Exchange, the Stock Exchange of Hong Kong, China Securities Depository & Clearing Corporation Limited, and Hong Kong Securities Clearing Company Limited in making orderly preparations for the formal implementation of the optimized trading calendar, ensuring the smooth rollout and execution of this reform. The specific implementation date will be announced separately.

Notice on Transitional Arrangements for Relevant Administrative Licensing Matters Before and After the Full Implementation of the Stock Issuance Registration System
To all issuers and sponsoring institutions:
On February 1, 2023, the comprehensive reform to implement a stock issuance registration system was officially launched. Relevant rules, including the Measures for the Administration of Registration of Initial Public Offerings and the Measures for the Administration of Registration of Securities Issuance by Listed Companies, have been made public for public comment. To steadily advance the comprehensive implementation of the registration system reform and ensure an orderly transition of administrative licensing matters—such as initial public offerings, refinancing, mergers and reorganizations on the main board, and public transfers listed on the National Equities Exchange and Quotation Company—before and after the reform takes effect, and to appropriately manage the updating of application materials for companies currently under review under the pilot registration system, the relevant work arrangements are hereby notified as follows:
I. Effective from the date of issuance of this notice, the China Securities Regulatory Commission will continue to accept applications for initial public offerings, refinancing, and mergers and acquisitions on the Main Board. Prior to the full implementation of the registration-based system, the CSRC will proceed with the aforementioned administrative licensing procedures in accordance with the existing regulations.
Effective from the date of publication of the draft regulations on the full implementation of the registration-based system, for companies applying for an initial public offering and listing on the main board: those that have already passed review by the Issuance Examination Committee and obtained approval documents shall carry out their issuance and underwriting in accordance with the existing relevant provisions; those that have passed the committee’s review but have not yet obtained approval documents may submit an application to the China Securities Regulatory Commission, explicitly choosing to continue pursuing administrative licensing procedures prior to the full implementation of the registration-based system and to commence issuance and underwriting in line with current rules; alternatively, they may opt to suspend the administrative licensing process and, following the full implementation of the registration-based system, file with the Shanghai Stock Exchange and the Shenzhen Stock Exchange (hereinafter collectively referred to as the “Exchanges”), undergo the issuance and listing review and registration procedures, and then initiate issuance and underwriting under the reformed framework. For applications filed with the Exchanges, the Exchanges shall schedule issuance reviews in accordance with the order in which the cases are being reviewed by the China Securities Regulatory Commission.
Prior to the date of public release of the draft regulations on the full implementation of the registration-based system, enterprises that applied for an initial public offering and listing on the main board may, if they do not meet the registration‑based financial requirements after the system’s full implementation, continue to be subject to the former approval‑based financial criteria; however, they must still satisfy all other issuance and listing conditions under the registration‑based regime.
Prior to the date of promulgation of the principal rules for the full implementation of the registration-based system, applications for refinancing and mergers and acquisitions by main‑board listed companies that have already been reviewed and approved by the Issuance Review Committee and the M&A Review Committee shall continue to be processed by the China Securities Regulatory Commission. From the date of promulgation of the principal rules for the full implementation of the registration-based system, if a main‑board listed company’s refinancing application has obtained approval but has not yet commenced issuance and underwriting, the stock exchange shall assume responsibility for carrying out the subsequent issuance and underwriting regulatory procedures.
II. Effective from the date of promulgation of the principal rules for the full implementation of the registration-based system, the China Securities Regulatory Commission will terminate the review of initial public offerings, refinancing, and mergers and acquisitions involving companies currently under review on the Main Board, and transfer the review sequence and relevant application materials to the stock exchanges. Furthermore, it will no longer accept applications for refinancing or mergers and acquisitions submitted by Main Board listed companies that have been received but not yet processed.
Within 10 business days from the date of the promulgation of the principal rules for the full implementation of the registration-based system, the stock exchange will accept only applications for initial public offerings, refinancing, and mergers and acquisitions or restructuring submitted by companies currently under review on the main board of the China Securities Regulatory Commission. Companies under review on the main board shall prepare their application documents in accordance with the relevant provisions governing the full implementation of the registration-based system and submit to the exchange an application for issuance and listing registration; those that have already submitted responses to feedback from the China Securities Regulatory Commission may include such responses as part of their application documents when filing with the exchange. Upon submission of an application, the validity period of financial information for companies under review on the main board may be extended by three months. During this period, for applications received, the exchange will, based on the order of review and the review materials already submitted to the China Securities Regulatory Commission, arrange subsequent review procedures in accordance with the relevant provisions governing the full implementation of the registration-based system.
III. Starting 10 business days after the issuance of the principal rules for the full implementation of the registration-based system, the stock exchanges will begin accepting applications from other main-board companies for initial public offerings, refinancing, and mergers and acquisitions or restructuring.
IV. Effective from the date of issuance of this notice, the China Securities Regulatory Commission will continue to accept applications for administrative approvals related to non-listed public companies. Prior to the full implementation of the registration-based system, the CSRC will proceed with the aforementioned administrative approval procedures in accordance with the existing regulations. Companies that have already obtained approval or an exemption‑from‑approval letter may continue to advance matters such as listing and issuance.
Prior to the release of the draft regulations soliciting public comments on the full implementation of the registration-based system, enterprises that have applied to list for public transfer on the National Equities Exchange and Quotations Company may, following the full implementation of the registration system, be exempt from the financial requirements applicable to registration‑based listings; however, they must still meet all other registration‑based eligibility criteria. From the date of publication of the principal rules governing the full implementation of the registration system, companies currently under review will be transitioned directly from the approval‑based regime to the registration‑based procedure, and their application documents shall be updated in accordance with the relevant provisions of the registration‑based system. The China Securities Regulatory Commission and the National Equities Exchange and Quotations Company will then arrange subsequent review and registration procedures in compliance with the applicable registration‑based regulations.
V. On the date when the principal rules for the full implementation of the registration system are promulgated, companies under review and their intermediaries may temporarily refrain from updating their filing documents; however, following the full implementation of the registration system, they must promptly submit special statements and verification opinions that comply with the relevant regulations, and, at the most recent stage of submitting responses to inquiries or updating financial reports and other submission materials, update their filing documents in accordance with the applicable provisions of the fully implemented registration system.
This notice shall take effect from the date of its promulgation. Market entities are requested to make all necessary preparations and coordinate their efforts to ensure a smooth and orderly transition for companies under review before and after the full implementation of the registration-based system.
Hereby notified.
China Securities Regulatory Commission
February 1, 2023

Commercial & Corporate
Institution: Real estate market expectations are improving, with nationwide home-search interest rising month-over-month, and Sanya posting the largest increase.
On February 3, 58.com and Anjuke released the January 2023 National Housing Confidence Index Report. The report shows that in January, the homebuyer confidence index rose 8.0% month-over-month, while the real estate agent confidence index increased by 21.1% compared with the previous month. In the new-home market, among the 65 key cities monitored, the average online price of new homes rose month-over-month in 24 cities, signaling a gradual improvement in market expectations; housing‑search activity across all tiers of cities nationwide also picked up. Meanwhile, in the existing‑home market, listed prices rose month-over-month in 36 of the 65 cities, with some cities seeing an increase in the number of properties on the market, marking a modest supply surge.
Housing search interest for new homes in first-tier cities has risen across the board, with Sanya posting the largest increase.
At the start of the new year, several cities have introduced favorable policies, and home‑buying sentiment has rebounded accordingly, signaling a recovery in the real estate market.
According to the January National Housing Affordability Index Report by 58.com and Anjuke, the average online price of new homes in 65 key cities nationwide was RMB 17,716 per square meter in January, up 0.05% month-on-month. Among these 65 cities, the average online price of new homes rose month-on-month in 24 of them.
Looking at the average online prices of new homes in major cities, among first-tier cities, Shenzhen’s average online price stands at RMB 63,641 per square meter, up 0.2% month-on-month; Beijing is at RMB 53,862 per square meter, down slightly by 0.1% month-on-month; Shanghai is at RMB 49,298 per square meter, up 0.9% month-on-month; and Guangzhou is at RMB 34,060 per square meter, up 0.4% month-on-month.
According to data from the 58 Anjuke Research Institute, market sentiment is gradually improving, with nationwide housing‑search interest rising 14.0% month over month in January 2023.
Housing‑search interest in first-tier cities rose across the board, up 13.9% month over month, with Beijing, Shanghai, Guangzhou, and Shenzhen posting increases of 13.9%, 14.3%, 14.9%, and 11.3%, respectively. In second-tier cities, housing‑search activity climbed 12.9% month over month, led by Chongqing at 24.9%, Shijiazhuang at 24.8%, and Nanchang at 23.8%. Meanwhile, numerous other cities—including Hefei, Dalian, Zhengzhou, Changsha, Jinan, and Harbin—each saw gains of around 20%.
Housing‑search interest in key third- and fourth-tier cities rose 17.8% month over month, with a sharp uptick in housing market activity driven by surging tourism demand in Sanya. Data show that Sanya’s housing‑search interest surged by 65.9% in January.
In addition, several cities saw heat index increases of over 45%, with Chenzhou at 51.6%, Bengbu at 48.9%, and Nanyang at 46.2%. Cities such as Shaoxing, Qinhuangdao, and Urumqi also experienced notably strong gains in heat index.
On the front of homebuyer confidence, the report indicates that the homebuyer confidence index stood at 104.2 in January 2023, up 8.0% month-on-month. Among respondents, 35.3% expect February sales volume to increase compared with the previous month, while 47.3% anticipate that housing prices in February 2023 will remain broadly unchanged.
Zhang Bo, director of the 58 Anjuke Research Institute, stated that the rising market heat reflects a gradual improvement in market expectations, particularly as the uptick in third- and fourth-tier cities is closely linked to the growing number of people returning home for the holidays. Moreover, it will take time for the increased interest in property viewings to translate into actual transactions, and the recovery of market confidence will also require patience.
In some cities, the secondhand housing market is experiencing a “small supply peak,” with Zhengzhou seeing an 83.1% month-over-month increase in newly listed properties.
The report shows that in January, the average listed price of secondhand homes in 65 major cities nationwide was RMB 16,677 per square meter, up 0.30% month-on-month. Among these 65 cities, secondhand home asking prices rose month-on-month in 36.
Looking at the average listed prices of second-hand homes in major cities, among first-tier cities, Beijing’s average listed price stands at RMB 60,356 per square meter, up 0.01% month-on-month; Shenzhen is at RMB 58,254 per square meter, up 1.0% month-on-month; Shanghai is at RMB 56,517 per square meter, up 0.2% month-on-month; and Guangzhou is at RMB 33,323 per square meter, down 0.7% month-on-month.
In January, the nationwide volume of newly listed secondhand homes declined month-over-month overall, though some cities experienced a modest supply surge. By city, among the first-tier metropolises, Beijing saw a month-over-month increase in new listings, up 4.3%. Cities such as Zhengzhou, Qinhuangdao, Nanyang, Shijiazhuang, and Lanzhou recorded more substantial gains, with Zhengzhou posting the largest month-over-month rise—83.1%.
In addition, 58.com and Anjuke, by analyzing data from their micro‑chat Q&A platform, found that in cities such as Luoyang, Lanzhou, Tangshan, Baoding, Hengshui, and Jining, real estate agents have been responding to homebuyers’ inquiries more frequently; meanwhile, in Luoyang, Hengshui, Shijiazhuang, Baoding, Qinhuangdao, and Hengyang, the volume of inquiries from homebuyers to agents has increased.
In terms of broker confidence, the broker confidence index stood at 111.2 in January 2023, up 21.1% month-over-month. According to a survey by the 58 Anjuke Research Institute, 49.2% of real estate brokers expect secondhand home prices to remain broadly stable in February 2023, while 57.1% anticipate an increase in transaction volume in the secondhand housing market that month.
The report indicates that demand-side participation has been steadily increasing in 2023, and the market’s trend of halting its decline and stabilizing is becoming increasingly evident. Since the beginning of the year, numerous provinces and municipalities have introduced year‑long policy guidelines aimed at “stabilizing the economy” and “boosting consumption.” To date, relevant policy documents issued by Shanghai, Jiangsu, Henan, Guangdong, Inner Mongolia, Liaoning, and other provinces, cities, and autonomous regions all highlight key measures such as stabilizing the real estate market and stimulating housing consumption, while also signaling new directions in each region’s real estate regulatory policies for this year.
Zhang Bo stated that local governments are increasingly focused on the property market, and the importance of housing-market stability to overall economic stability is also growing. On the supply side, emphasis is being placed on policy implementation: since the fourth quarter of last year, a series of financing measures for real estate developers have been introduced, and this year, localities have underscored the need for city‑specific policies, with localized initiatives such as establishing “whitelists” and providing targeted credit support already taking shape. Meanwhile, on the demand side, priority is being given to safeguarding owner‑occupier needs; so far, policy support for first-time homebuyers has been notably robust across regions, while further measures to bolster housing‑improvement demand are expected to vary from one city to another.

The Ministry of Commerce plans to ban or restrict the export of 139 technologies, covering steel, non-ferrous metals, photovoltaics, and semiconductors.
On December 30, 2022, the official website of China’s Ministry of Commerce issued a notice soliciting public comments on the revision of the “Catalogue of Technologies Prohibited or Restricted from Export.” The deadline for submitting feedback is January 28, 2023. The notice stated that, in order to strengthen the management of technology imports and exports and in accordance with relevant laws and regulations, the Ministry of Commerce, together with the Ministry of Science and Technology and other departments, has revised the Catalogue. This revision proposes to delete 32 entries, amend 36 entries, and add 7 new entries. The seven newly added technologies are: photovoltaic silicon wafer fabrication technology, LiDAR systems, technologies for human cell cloning and gene editing, CRISPR gene-editing technology, synthetic biology technology, technologies for harnessing hybrid vigor in crops, and bulk material handling and conveying technology. Following the revision, the Catalogue now comprises 139 items, including 24 technologies prohibited from export and 115 technologies subject to export restrictions, for a total of 139 entries. According to the document, the technologies subject to export prohibitions or restrictions primarily cover areas such as the internet and information technology, photovoltaics and new energy, autonomous driving, and biopharmaceuticals—sectors in which China has achieved rapid advancements in recent years. Among the 139 revised technologies, several are closely related to the steel industry, non‑ferrous metal smelting and rolling, photovoltaics and new energy, and the semiconductor sector.

Pfizer has become the world’s first pharmaceutical company with revenues exceeding $100 billion, with COVID‑related business accounting for more than 50% of its total revenue.
In recent days, Pfizer and Merck (102.94, -0.52, -0.50%) have released their 2022 financial reports one after another. Thanks to the boost from their COVID-19-related businesses, both companies posted strong results.
Notably, Pfizer posted record total revenue in 2022, reaching $100.33 billion—a 23% year-over-year increase—making it the first pharmaceutical company globally to surpass $100 billion in annual sales. Pfizer’s COVID‑19 vaccine and oral antiviral drug accounted for more than half of its revenue, with combined sales totaling $56.74 billion, representing over 56% of its total income.
In 2022, Merck reported full-year revenue of $59.283 billion, up 22% year over year; excluding the impact of the COVID-19 oral antiviral Lagevrio (molnupiravir), revenue grew 12% year over year.
A closer look at the COVID‑19‑related businesses of these two companies reveals that in 2022, Pfizer’s mRNA COVID‑19 vaccine generated $37.806 billion in revenue, up 3% year over year, while its oral antiviral Paxlovid brought in $18.933 billion. Meanwhile, Merck’s oral COVID‑19 drug molnupiravir recorded $5.684 billion in sales.
Pfizer’s Paxlovid and Merck’s molnupiravir represent two distinct classes of oral COVID‑19 therapies: the former is a 3CL protease inhibitor, while the latter is an RdRp inhibitor. Global efforts to develop antiviral treatments for SARS‑CoV‑2 have likewise focused primarily on these two mechanisms. Based on the comparison above, Pfizer’s Paxlovid has generated more than three times the revenue of Merck’s molnupiravir.
Notably, during the first three quarters of 2022, Merck’s quarterly sales of molnupiravir declined steadily, falling from $3.247 billion in Q1 to $436 million in Q3. However, sales rebounded to $825 million in Q4, largely driven by increased demand in the Japanese and UK markets and the product’s launch in Australia.
In 2022, the COVID‑19 business generated substantial revenue for both Pfizer and Merck; however, in 2023, this segment’s earnings are expected to be cut in half.
Pfizer expects its 2023 revenue to range between $67 billion and $72 billion, a year-over-year decline of 29% to 33% compared with 2022, driven by an anticipated drop in COVID‑19‑related revenues.
Pfizer stated that, with governments still holding substantial inventories of COVID‑19 products, revenue from this segment is expected to bottom out in 2023. The company projects COVID‑19 vaccine sales of $13.5 billion in 2023, a 64% decline from 2022, while Paxlovid sales are forecast at approximately $8 billion, down 58% year over year.
Earlier, upon the successful development of Pfizer’s COVID‑19 vaccine and Paxlovid, the company entered into supply agreements with the U.S. government. However, it is expected that by the second half of 2023, Paxlovid will no longer be fully funded by the U.S. government; instead, it will be integrated into the U.S. healthcare system, with costs borne by individuals and insurance plans. In its financial report, Pfizer also noted that, for 2023, sales of its COVID‑19 vaccine and Paxlovid are projected to be determined not on the basis of previously signed supply contracts, but rather in response to commercial market conditions. That said, the company anticipates that revenue from the COVID‑19 segment will resume growth in 2024.
Merck expects molnupiravir revenues to decline to approximately $1 billion in 2023, a year-over-year decrease of 82.4% compared with 2022. Meanwhile, the company’s full-year 2023 revenue is projected to range between $57.2 billion and $58.7 billion.
Both Pfizer’s and Merck’s oral COVID‑19 medications have been approved for sale in the Chinese market. In December 2022, Pfizer’s Paxlovid opted not to lower its price when it was included in the 2022 edition of China’s National Reimbursement Drug List; its current temporary reimbursement price in some regions is RMB 1,890 per box. Merck’s molnupiravir capsules, having received approval later, missed out on the national reimbursement negotiation process; its current listed price in China is RMB 1,500 per bottle (containing 40 tablets).
Recently, two domestically developed drugs have been launched in the Chinese market: Xiannuoxin from CSPC Pharmaceutical Group and Mindevi from Junshi Biosciences. These two medications will directly compete with Paxlovid and molnupiravir. Notably, Xiannuoxin is priced significantly lower than Pfizer’s Paxlovid, which targets the same mechanism; the current price for one box per treatment course is just 750 yuan.

Taxation
Last year, the total amount of new tax and fee reductions, tax refunds, and deferrals exceeded 4.2 trillion yuan.
Tax and fee reductions to boost market vitality.
“In 2022, the total amount of new tax and fee reductions, tax refunds, and deferrals exceeded 4.2 trillion yuan, playing a pivotal role in stabilizing the overall macroeconomic landscape. Throughout the year, tax and fee revenues totaled 31.7 trillion yuan, successfully meeting the revenue targets and providing robust fiscal support for national governance,” stated Wang Daoshu, Member of the Party Committee and Deputy Director-General of the State Taxation Administration, at the recent 2022 Annual Press Conference of the State Taxation Administration.
In 2022, China implemented a series of tax and fee support policies, enhancing businesses’ sense of gain. That year, the National Bureau of Statistics conducted three surveys on the effectiveness of the carryforward VAT refund policy among industrial enterprises; the results showed that companies benefiting from the large-scale VAT carryforward refund generally reported a markedly significant relief in their tax burden. Meanwhile, findings from the All-China Federation of Industry and Commerce’s 2022 survey of 10,000 private enterprises on the business environment indicated that satisfaction with the implementation of tax and fee support measures ranked among the highest, and the ease of tax payment has remained the most highly rated factor in government‑related environmental assessments for the third consecutive year.
Adopting a multi-pronged approach to ensure that favorable policies are implemented thoroughly and effectively.
Nearly 80% of individual business households were not required to pay taxes in 2022.
During the Spring Festival, at the Xingyue Xiansheng Smart Market on Fengpei Road in Qingdao High-tech Zone, Shandong, goods are neatly arranged, and an abundance of fresh fruits and vegetables is on display. “Thanks to supportive national policies, our small shop is exempt from value-added tax, which has boosted our morale,” said vendor Li Zhigang.
Tax and fee reductions have yielded significant results. By sector, in 2022, the manufacturing industry benefited from nearly RMB 1.5 trillion in new tax and fee cuts, refunds, deferrals, and payment extensions, accounting for roughly 35% of the total—making it the sector that reaped the most substantial benefits. By enterprise size, small and micro businesses and individual business households were the primary beneficiaries, with new tax and fee reductions, refunds, deferrals, and payment extensions exceeding RMB 1.7 trillion, representing about 40% of the overall total; nearly 80% of individual business households paid no taxes at all in 2022.
Effective policies hinge on implementation. The tax authorities have compiled a roster of eligible taxpayers, conducted advance assessments to establish a clear baseline for tax refunds, and provided tailored guidance to each taxpayer in calculating their refund amounts. They have also invited tax‑and‑fee service experience officers to walk through the procedures, launched a “Tax Refund and Tax Reduction Feedback Box” on the official tax website, and set up a dedicated hotline—12366—for feedback on tax refund and reduction measures, thereby collecting and responding to more than 9,000 suggestions and comments. Meanwhile, the Ministry of Finance, the State Taxation Administration, and the People’s Bank of China have established tiered consultation mechanisms and convened multiple meetings to coordinate solutions to challenges such as treasury fund allocation, policy interpretation, and large‑scale tax refunds, ensuring that refund funds are disbursed promptly.
Rong Hailou, Director-General of the Revenue Planning and Accounting Department of the State Taxation Administration, stated that in 2022, the tax authorities implemented a five-pronged strategy—expediting tax refunds, cracking down hard on fraudulent refund claims, rigorously investigating internal errors, welcoming external oversight, and conducting ongoing public awareness campaigns—to deliver policy benefits swiftly and precisely to taxpayers and payers, thereby ensuring the comprehensive implementation and effective impact of these measures.
“Real money and tangible support” to help businesses overcome difficulties.
In 2022, the tax and fee burden per 100 yuan of operating revenue in the transportation sector and the accommodation and catering sector decreased by 15.4% and 14.2%, respectively.
In Wutongqiao District of Leshan City, Sichuan Province, Zhongyou Energy Co., Ltd. used 1.11 million yuan in outstanding tax refunds to settle the final payment for a construction project, easing its cash-flow pressures. In Chongqing, Senmai Auto Parts Co., Ltd. promptly paid upcoming material invoices with the one-million-yuan tax refund it received, ensuring on-time delivery of customer orders. Meanwhile, Xinjiang Zhongtai Xinxin Chemical Technology Co., Ltd. allocated its tax refunds to this year’s R&D expenses and funds for recruiting specialized technical personnel, and has formulated a new R&D plan. Step by step, these outstanding tax refunds have moved from paper to bank accounts, helping market entities navigate difficulties and unleashing their vitality and creativity.
The series of tax and fee support policies have been implemented effectively, further improving the tax-related business environment and significantly boosting the vitality of market entities. Data show that in 2022, 13.15 million new tax‑related market entities were established nationwide. By the end of 2022, the total number of tax‑related market entities across the country reached 84.07 million, an increase of 6.9% compared with the end of 2021.
Wang Daoshu stated that, according to a survey conducted by the State Taxation Administration among 100,000 key tax‑paying enterprises, the tax and fee burden per 100 yuan of operating revenue declined by 2.7% in 2022. Among these, the transportation sector and the accommodation and catering industries—both heavily impacted by the pandemic—saw reductions of 15.4% and 14.2%, respectively, resulting in a significant easing of their burdens.
VAT invoice data show that in 2022, manufacturing offices benefiting from the carryforward VAT refund policy saw their purchase expenditures rise by 8.2% year on year—4.5 percentage points higher than those of manufacturing offices that did not receive such refunds—thereby supporting the stable operation of the manufacturing sector. Meanwhile, high‑tech enterprises that availed themselves of the carryforward VAT refund reported a 11.5% year‑on‑year increase in sales revenue, 2.1 percentage points above that of high‑tech offices without the refund, thus accelerating the growth of new drivers of economic development.
Continuously enhance the quality of tax and fee services.
For the tenth consecutive year, the tax authorities have launched the “Spring Breeze Action to Facilitate Tax Services.”
In 2022, the tax authorities rolled out an additional 121 taxpayer-friendly measures, expanding “non-contact” tax filing and payment services to 233 items, covering all major tax-related procedures. As local tax authorities diligently implemented the various taxpayer‑convenience initiatives set forth by the State Taxation Administration, they also proactively introduced numerous pragmatic and innovative measures tailored to local conditions and distinctive to their respective jurisdictions.
Zhang Youqian, Party Secretary and Director of the Beijing Municipal Tax Service Bureau, stated that the bureau has launched “Customized e-Services,” providing taxpayers with personalized tax information and shifting from one-size-fits-all services to precision‑targeted support. The initiative also enables online guidance and integrated inquiry‑and‑processing workflows, offering tailored solutions to taxpayers. In 2022, online guidance services were provided a cumulative total of 960,000 times, totaling over 120,000 hours. Meanwhile, Beijing has strengthened collaboration and communication with the tax authorities of Tianjin and Hebei, issuing the first batch of 202 items on the Beijing–Tianjin–Hebei list of “non-contact” tax filing and payment services, as well as a list of 129 tax‑related administrative service items under the “at most one visit” principle. As a result, 150 tax‑related matters now adhere to uniform standards across the three regions.
Lao Xiaofeng, Deputy Secretary of the Party Committee and Director of the Zhejiang Provincial Tax Service Bureau, pointed out that the bureau has invited deputies to the People’s Congress, members of the Chinese People’s Political Consultative Conference, specially appointed supervisors, and tax experience officers—collectively known as the “Three Representatives and One Instructor”—to walk through tax‑processing procedures. This initiative has helped the tax authorities identify “visual blind spots” and resolve more than 600 issues. This year, in response to taxpayers’ needs for cross‑border settlements, the Zhejiang Provincial Tax Service Bureau will integrate and leverage the reform achievements of the tax authorities, the State Treasury, and financial institutions. It will streamline processes such as overseas foreign‑currency payments, cross‑border RMB electronic remittances, and UnionPay‑based cross‑border electronic payments, enabling end‑to‑end online handling of the entire workflow—from fund remittance and foreign‑exchange settlement to tax filing and deposit into the treasury—thereby providing more efficient and convenient services for cross‑border tax and fee payments.
This year, the tax authorities have launched the “Spring Breeze Action for Convenient Tax Services” for the tenth consecutive year. To date, they have rolled out an initial package of 17 measures across six key areas: enhancing the responsiveness to taxpayer requests, improving the efficiency of policy implementation, upgrading the quality of refined services, accelerating smart tax administration, streamlining and elevating procedural efficiency, and strengthening standardized enforcement. In particular, since January, the tax authorities, in coordination with relevant departments, have promptly clarified implementation guidelines for a range of widely applicable and large‑scale tax and fee support policies—such as the extended and optimized preferential treatment for small‑scale VAT taxpayers—while intensifying targeted outreach and guidance to ensure that taxpayers can more fully benefit from these policies and enjoy greater convenience in tax compliance.
“While ensuring the effective implementation of the first batch of measures, we will also closely align with the evolving needs of taxpayers and payers, proactively develop and roll out a second set of follow-up measures, and continuously enhance the quality of tax and fee services,” said Shen Xinguo, Director-General of the Taxpayer Services Department of the State Taxation Administration.
 

The tax authorities have adopted five coordinated measures to ensure that the benefits of tax and fee policies are fully realized.
The time required for enterprise tax refund funds to be processed—from application to crediting—has been reduced by 40 percent.
In 2022, amid a complex and challenging domestic and international environment and the impact of multiple unexpected factors, the CPC Central Committee and the State Council strengthened macroeconomic policy adjustments that spanned economic cycles and countered downturns, promptly and decisively rolling out a new package of tax and fee support measures, a comprehensive set of policies to stabilize the economy, and follow-up measures. The tax authorities ensured full and rigorous implementation, with total new tax and fee reductions, refunds, deferrals, and exemptions exceeding RMB 4.2 trillion for the year, playing a pivotal role in helping to stabilize the overall macroeconomic landscape.
According to Rong Hailou, Director-General of the Revenue Planning and Accounting Department of the State Taxation Administration, in 2022 the tax authorities proactively elevated their strategic perspective. Under the leadership and coordination of local Party committees and governments at all levels, and with strong support from the finance, People’s Bank of China, public security, and other departments, they overcame challenges such as tight deadlines, heavy workloads, and substantial operational demands. By implementing a five-pronged strategy—expediting tax refunds, cracking down rigorously on fraudulent refund schemes, strictly investigating internal errors, welcoming external oversight, and conducting ongoing publicity—the authorities ensured that policy benefits were delivered swiftly and precisely to taxpayers and payers, thereby fully translating the decisions and arrangements of the CPC Central Committee and the State Council into concrete results.
An integrated implementation mechanism has been established to ensure the effective delivery of policies. Tax and fee support measures, particularly large-scale deferred tax refunds, involve multiple departments in areas such as funding assurance, refund review, and treasury processing. In accordance with requirements, the tax authorities have promoted the establishment and improvement of a working mechanism characterized by “government leadership, interdepartmental collaboration, and primary responsibility of the tax authorities.” At all levels, local governments have set up special task forces led by government officials to coordinate and advance policy implementation. The Ministry of Finance, the State Taxation Administration, and the People’s Bank of China have established tiered consultation mechanisms and convened numerous meetings to address challenges related to treasury fund allocation, policy interpretation, and high‑value refunds, thereby ensuring that refund funds are disbursed promptly. To accelerate the process, electronic refund procedures between the tax authorities and the national treasury have been streamlined: tax authorities handle taxpayers’ refund applications online, including acceptance, review, and issuance of electronic refund notices, while the treasury department of the People’s Bank of China processes refunds on an “immediate receipt, immediate review, immediate disbursement” basis, maximizing service efficiency and enhancing the speed of refund processing.
Integrated implementation measures have been rolled out to ensure that policy benefits are delivered swiftly and directly to eligible recipients. To ensure full awareness of all applicable policies, the State Taxation Administration promptly collaborated with relevant departments to issue policy guidelines and accompanying explanatory materials, compiled 13 key policy operation manuals, and leveraged big data to establish a nationwide, unified system of promotional and guidance tags. This enabled the precise delivery of preferential policies in 44 batches, reaching a total of 475 million taxpayer instances, effectively shifting from a “people seeking policies” approach to a “policies finding people” model. To facilitate the full and timely refund of outstanding tax credits, a registry of eligible taxpayers was established, enabling an early assessment of the total refundable amounts. Tailored assistance was provided to each taxpayer to accurately calculate their refund entitlements, while the electronic tax bureau automatically pre‑populated over 85% of application data. Refund reviews were completed promptly, and payments were processed without delay, reducing the average time from application to receipt of refund by 40% year over year—particularly for manufacturing, where the processing time for incremental credit refunds has been shortened to within two working days. To help taxpayers fully access the benefits they are entitled to, non‑contact tax filing and payment services have been significantly expanded. Targeted outreach to businesses in struggling sectors has been intensified, accompanied by precision‑driven advisory support. A rapid response mechanism for addressing policy‑related issues has also been put in place, ensuring seamless implementation of policies at the final mile.
We have refined the end-to-end anti‑fraud and anti‑tax‑evasion system, providing precise safeguards for national tax security. Adhering to a strategy that combines enforcement with prevention—prioritizing prevention—we are committed to ensuring that the refund of outstanding input VAT credits delivers tangible benefits while resolutely preventing illicit actors from appropriating this policy “windfall.” On the one hand, leveraging tax‑related big data, we have established an integrated risk‑management framework encompassing pre‑emptive risk assessment and alerts, real-time information review and verification, and post‑event spot checks and follow‑up reviews, enabling timely and accurate identification of risks and their swift, tailored handling. On the other hand, six agencies—the tax authorities, public security organs, procuratorial organs, customs, the People’s Bank of China, and the foreign exchange administration—have incorporated the crackdown on fraudulent claims for input‑VAT credit refunds into their regular mechanism for combating false invoicing and tax fraud. This has strengthened deterrence against organized, cross‑regional, and malicious schemes designed to defraud such refunds, with a steadfast commitment to addressing violations at an early stage and at their nascent phase—striking decisively upon detection—and thereby recovering tax losses totaling RMB 15.5 billion.
Building a comprehensive oversight framework and effectively strengthening safeguards for conduct and discipline. On the one hand, we are reinforcing self‑supervision through rectifying work style and enforcing discipline. We have refined 45 inspection priorities across 14 categories and conducted inspections on the progress, quality, and effectiveness of policy implementation. We have also carried out in-depth “dual investigation” of individual cases, rigorously investigating and prosecuting violations such as collusion between tax officials and external parties to fraudulently obtain additional tax refunds, and proactively publicizing a number of cases involving dereliction of duty and accountability, as well as typical instances of tax fraud resulting from internal‑external collusion. On the other hand, we are pooling collective wisdom and welcoming public oversight. We have invited deputies to people’s congresses at all levels, members of the Chinese People’s Political Consultative Conference, government‑appointed supervisors, and tax‑and‑fee service experience officers to participate in “process walkthroughs and feedback sessions.” We have also established an “Opinion Box for Tax Refunds and Tax Reductions” on the official tax website and a dedicated hotline—“Tax Refund and Tax Reduction Opinion Line”—on the 12366 tax‑and‑fee service hotline, receiving and responding to more than 9,000 suggestions and comments.
Strengthen multidimensional publicity and interpretation to effectively guide expectations across all sectors of society. Through 13 press conferences, 16 rounds of comprehensive outreach, and an extended National Tax Publicity Month campaign, policies were announced and explained, and the results of their implementation were showcased. A total of 11.77 million personalized tax rebate and reduction benefit statements were delivered directly to taxpayers, helping to shape public expectations and bolster market confidence.

Thirteen types of tax-related documents will be processed with missing information accepted.
The State Taxation Administration recently issued a notice clarifying that, effective February 1, 2023, certain tax-related matters will be processed on a “missing‑document‑accepted” basis, further streamlining the submission of tax‑related documentation. This includes, among others, the “copy of proof of account and account number opening” in the “Deposit Account Number Reporting” procedure, as well as the “list of personnel eligible for corporate equity incentives” under the “Withholding and Advance Payment Declaration of Individual Income Tax on Comprehensive Income Earned by Resident Individuals,” along with a total of 13 tax‑related documents.
According to the introduction, the “acceptance of applications with missing documents” is a taxpayer‑friendly service initiative launched by tax authorities. When the taxpayer has submitted all the principal documents that are complete and conform to statutory requirements, but certain secondary documents are temporarily incomplete or contain minor deficiencies, the tax authority may proceed with processing the relevant matter on the basis of the taxpayer’s voluntary, written commitment to supplement and rectify the missing or defective materials within a prescribed time limit. However, this arrangement does not apply to parties involved in serious cases of tax law violations or breaches of trust. If the relevant parties have fulfilled their statutory obligations and such compliance has been conofficeed by the tax authority conducting the inspection, the “acceptance of applications with missing documents” may be applied once the public notice period has expired.

Over 4.2 trillion yuan in policy benefits have been implemented, with tax and fee support measures bolstering economic development.
Immediately after the Spring Festival, all production lines at CRRC Zhuzhou Institute in Hunan have been bustling with orders bound for Yibin. In the workshops, where sparks fly and machines rumble, the T4 line of the Intelligent Rail Rapid Transit system is undergoing assembly, testing, and final delivery.
“The company has benefited from the value-added tax credit refund policy, and the resulting policy dividends have significantly eased our financial pressures, enabling us to allocate more resources to research and development of new products and cutting-edge technologies,” said Li Donglin, Party Secretary and Chairman of CRRC Zhuzhou Institute Co., Ltd., praising the package of tax and fee support measures implemented in 2022.
Precision‑targeted tax policies, like a “drip irrigation” system, have empowered market entities to operate at full capacity and press ahead with vigor—this is a vivid illustration of how, since 2022, tax incentives have bolstered the development of market players and helped stabilize the broader economy.
In 2022, amid a complex and challenging domestic and international environment and the impact of multiple unexpected factors, a new package of tax and fee support policies, along with a comprehensive set of measures to stabilize the economy and follow-up initiatives, became key components of China’s macroeconomic regulation. According to data released by the State Taxation Administration on January 31, in 2022, the total amount of newly introduced tax and fee reductions, tax refunds, and deferrals exceeded RMB 4.2 trillion. These policy benefits effectively eased the burden on enterprises, boosted innovation, optimized the economic structure, and stimulated consumer spending, playing a pivotal role in helping to stabilize the overall macroeconomic landscape.
Deliver a comprehensive package of policies to help stabilize the overall economy.
In 2022, amid a complex and challenging domestic and international environment and the impact of multiple unexpected factors, China strengthened macroeconomic policy adjustments across economic cycles and counter-cyclically, promptly and decisively rolling out a new package of tax and fee support measures, a comprehensive set of policies to stabilize the economy, and follow-up measures. These included both tax and fee reductions as well as tax refunds, deferrals, and payment extensions, with the centerpiece being large-scale value-added tax credit refunds.
According to data released by the State Taxation Administration, in 2022, nationwide tax and fee reductions, refunds, and deferrals exceeded RMB 4.2 trillion, comprising three main components: first, cumulative VAT credit refunds totaling RMB 2.46 trillion, more than 3.8 times the total amount processed for the entire year of 2021; second, new tax and fee reductions exceeding RMB 1 trillion, including over RMB 800 billion in new tax cuts and more than RMB 200 billion in new fee reductions; and third, tax and fee deferrals amounting to over RMB 750 billion.
By sector, the manufacturing industry benefited most, with new tax and fee reductions, refunds, and deferrals totaling nearly RMB 1.5 trillion, accounting for about 35% of the total. Meanwhile, service sectors—such as catering, retail, culture and tourism, and transportation—which were hit particularly hard by the pandemic, received over RMB 870 billion in new tax and fee cuts, refunds, and deferrals, providing crucial support to market entities as they navigated these challenging times.
By enterprise size, small and micro enterprises and individual business households are the primary beneficiaries, with new tax and fee reductions, as well as tax and fee deferrals and refunds, totaling over RMB 1.7 trillion—accounting for roughly 40% of the overall amount. Notably, nearly 80% of individual business households paid no taxes in 2022.
“The implementation of over 4.2 trillion yuan in additional tax and fee reductions, along with tax refunds and deferrals, has been carried out meticulously, helping to bolster the growth and development of the manufacturing sector and providing relief to small, medium, and micro enterprises. This has served as a ‘stabilizer,’ energizing market entities and doing its utmost to maintain macroeconomic stability,” said Zhang Lianqi, a member of the Standing Committee of the National Committee of the Chinese People’s Political Consultative Conference and vice president of the China Tax Institute, in an interview with a People’s Daily Online reporter.
Zhang Lianqi stated that the package of tax and fee support policies reduces business costs, stabilizes market expectations, boosts development momentum, improves the business environment, and enhances governance capacity, thereby anchoring the overall macroeconomic landscape and driving high-quality development. At an opportune moment, China introduced a counter-cyclical policy package of tax and fee reductions, using “subtraction” in taxes and fees to achieve “addition” in corporate profitability and “multiplication” in market vitality. These measures have proven highly effective, delivering immediate and tangible results.
Feng Qiaobin, deputy director of the Department of Macroeconomic Research at the Development Research Center of the State Council, told a People’s Daily Online reporter that in 2022, China’s package of tax and fee support policies exceeded expectations in both scale and scope. According to data released by the State Taxation Administration, the manufacturing sector was the most significantly benefited, while small and micro enterprises and individual business households were the primary recipients. This indicates that, in 2022, China’s tax policies were tilted toward those groups most in need of support, helping to stabilize the overall economic landscape.
Feng Qiaobin pointed out that China’s economy has now entered a new phase of recovery and improvement. To further boost the overall performance of economic activity, tax policies must be refined and adjusted in light of the evolving situation, with measures tailored to specific needs.
Precision “drip irrigation” for market entities to bolster endogenous growth momentum.
The series of tax and fee support policies implemented in 2022 directly infused vitality into a broad range of market entities, effectively helping businesses overcome difficulties, safeguarding market players, and preserving employment. When discussing these comprehensive tax and fee support measures, phrases such as “a strong sense of gain,” “relief from pressure,” and “added momentum” have become key terms among responsible officials at many market entities.
“To prepare for the 2023 spring planting season, we’ve purchased substantial quantities of raw materials to build up our inventory. The recent refund of 1.73 million yuan in outstanding tax credits has helped us bridge a funding gap,” said Wu Yuntao, General Manager of Hebei Nonghaha Machinery Group Co., Ltd. As a national-level “Little Giant” enterprise specializing in agricultural machinery R&D and manufacturing, the company is stepping up its efforts to strengthen product development and technological innovation amid increasingly fierce competition in the agricultural machinery market.
Innovation requires stable, long-term capital investment. In addition to the 2022 carryforward tax refund “windfall,” the policy of additional deduction for R&D expenses has also provided substantial financial support to enterprises. “Under the new policy, we were able to claim an advance deduction of RMB 15.45 million for R&D expenses incurred in the first three quarters when making our October provisional tax payment in 2022. The implementation of these tax incentives has given us greater confidence to continue ramping up our investment in R&D and innovation for agricultural machinery and equipment,” said Wu Yuntao.
“The timely receipt of export tax rebates has effectively eased our companies’ financial pressures and bolstered our long-term growth momentum,” said Lu Ziqiang of Zhejiang Jiuyi Electronic Technology Co., Ltd. In 2022, the company benefited from tax refunds and exemptions totaling over RMB 10 million, and it plans to leverage this round of “tax incentives” to further upgrade its products and expand into international markets.
Guo Hanshu, head of Sichuan Chengfa Paper Machinery Co., Ltd., believes that the state’s tax and fee‑support policies help enterprises maintain their competitiveness. “R&D of new technologies, development of new products, and expansion into new markets all depend on the backing of these policies. With the combined benefits of both old and new measures, the company alone benefited from an additional R&D expense deduction of 1.6761 million yuan during the pre‑payment phase last year,” he said.
Speaking about tax policies, Li Zhigang, a vendor at the Xingyue Xiansheng Smart Market on Fengpei Road in Qingdao High-tech Zone, said, “I never expected the state to roll out so many favorable measures. Even a small, unassuming shop like ours can benefit from tax breaks—our VAT liability of over a thousand yuan has been fully waived, which has boosted our morale and motivated us to work even harder.” In 2022, amid the pandemic, his business was hit hard; though this particular relief may seem modest, it has nonetheless injected much-needed confidence as his small store navigates challenges and strives to get back on track.
“In 2022, the package of tax and fee support policies introduced by China played a positive role in alleviating the difficulties faced by market entities,” said Li Xuhong, Director of the Institute of Fiscal and Taxation Policy and Application at the National Accounting Institute in Beijing, in an interview with People’s Daily Online.
Li Xuhong further explained that implementing large-scale value-added tax credit refunds has helped enterprises alleviate liquidity pressures; by receiving these refunds promptly, some companies have been able to address urgent financial challenges. Meanwhile, tax and fee deferrals, along with tax reductions and exemptions, have enabled small and micro‑enterprises and industries facing particular difficulties to weather the crisis. During the pandemic, small, medium, and micro‑enterprises, as well as the service sector, were hit hard, and such measures have eased their fiscal burdens. At the same time, expanding the pre‑tax deduction for R&D expenses has boosted corporate innovation, supported enterprise upgrading and transformation, and contributed to a more optimized economic structure.
Optimizing the tax-related business environment and safeguarding economic and tax order.
How can we advance tax modernization on the new journey with high quality and better leverage the foundational, pillar-like, and safeguarding roles of taxation in national governance? The tax authorities have embarked on new explorations. In 2022, they focused on precise law enforcement, meticulous services, targeted regulation, and sincere collaborative governance, comprehensively promoting the “Four Precision” initiative and achieving notable phased results in deepening tax collection and administration reform.
According to reports, in 2022, the tax authorities publicly disclosed a total of 716 cases involving fraudulent claims for additional tax refunds, 22 cases of issuing false invoices and fraudulently obtaining export tax rebates, 10 cases of violations by tax-related intermediaries and their practitioners, and 6 cases of tax evasion or avoidance by celebrities and online livestreamers.
To enhance enforcement precision, reduce compliance costs, and achieve a strong deterrent effect, the tax authorities have progressively implemented a “five-step working approach”: based on big‑data analysis of tax information, they first issue warnings and reminders to taxpayers who may face tax‑related risks, then urge them to make rectifications, followed by cautionary interviews; for those who remain uncooperative, they initiate formal investigations; and for cases that are particularly serious or have a severely negative impact, they conduct thorough investigations and publicly disclose the findings.
To continuously optimize the tax‑related business environment, while steadily advancing the “Spring Breeze Action for Convenient Tax Services,” efforts are being focused on enhancing tax and fee services in two key areas. First, the scope of online services is being actively expanded: 19 new “non‑contact” tax filing and payment procedures have been added, bringing the share of tax and fee matters handled online to 96% and the proportion of tax returns filed online to 99%. Cross‑provincial electronic tax payments have also been rolled out nationwide, covering all provinces, with cross‑provincial electronic tax payments totaling RMB 57.5 billion in 2022. Second, offline service quality is being consistently improved: eight items involving 13 types of tax‑related documents have been included in the scope of deficiency‑acceptance processing; lists have been drawn up to eliminate the requirement to submit certain documents or to replace submission with record‑keeping; and the number of documents required for submission has been further streamlined by 34 items.
In Beijing, the tax authorities have taken the “Spring Breeze Action for Convenient Tax Services” as a key initiative, integrating tax administration with cutting-edge technologies such as big data, artificial intelligence, and cloud computing. This has helped continuously upgrade Beijing’s “smart tax services,” accelerating the convenience of tax filing and payment. Meanwhile, in 2022, Zhejiang’s tax authorities invited deputies to the People’s Congress, members of the Chinese People’s Political Consultative Conference, specially appointed supervisors, and tax experience officers—collectively known as the “Three Representatives and One Instructor”—to walk through tax‑related procedures, enabling the tax authorities to identify blind spots and resolve more than 600 issues.
According to the findings of the All-China Federation of Industry and Commerce’s 2022 survey of ten thousand private enterprises on the business environment, the ease of tax and fee payment has ranked first in terms of satisfaction among all aspects of the government‑business environment for the third consecutive year.
2023 marks the inaugural year for implementing the spirit of the 20th National Congress of the Communist Party of China. According to a responsible official from the State Taxation Administration, the national tax system will ensure a strong start and steady progress in advancing tax modernization on the new journey, thereby making new and greater contributions to the comprehensive building of a modern socialist country.

LITIGATION & ARBITRATION
The Supreme People’s Court has issued guidelines.
Clarify the list of responsibilities and strengthen the development of mobile court stations for juvenile cases.
To effectively strengthen the people’s courts’ work in protecting minors and preventing juvenile delinquency, and to promote new progress in juvenile adjudication, the Supreme People’s Court recently issued the “Opinions on Fully Leveraging the Functions and Roles of Mobile Trial Stations of Juvenile Courts” (hereinafter referred to as the “Opinions”).
The Opinions adhere to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as their guiding principle, thoroughly implement Xi Jinping’s Thought on the Rule of Law, and uphold the principle of acting in the best interests of minors. They further clarify the working mechanisms of mobile trial stations of juvenile courts, establish a list of responsibilities, and provide robust policy support to ensure that minors receive special, priority‑based, comprehensive, and integrated protection in accordance with the law.
The Opinions stipulate that circuit trial stations shall hear cases involving the protection of minors’ rights and interests that fall under the jurisdiction of the Supreme People’s Court’s Circuit Courts, and shall, in coordination with the relevant business departments of the Supreme People’s Court, provide judicial guidance to the people’s courts within the circuit’s jurisdiction. They are also required to regularly collect and select typical cases on the protection of minors from the circuit trial stations and the courts in the circuit’s jurisdiction, and promptly submit these cases to the Office for Juvenile Courts of the Supreme People’s Court.
The Opinions stipulate that circuit trial sites should facilitate communication and exchange among courts and educational institutions within the circuit, conduct targeted research and seminars on pressing and challenging issues in juvenile justice practice in the circuit, and strive to produce a body of high‑quality, influential, and practical research outcomes. Leveraging their proximity to the grassroots and the public, these sites should, in light of the specific realities of their work, actively explore new models and mechanisms for juvenile adjudication, thereby advancing reform and innovation in this area.
The Opinions state that circuit trial stations should encourage the courts within their circuits to effectively carry out public legal education for minors, thereby establishing a distinctive brand for the protection of minors’ rights and interests that enjoys nationwide recognition. Relevant personnel should be selected or recommended to serve as vice principals for rule of law in primary and secondary schools. By making full use of key occasions such as International Children’s Day on June 1 and National Constitution Day, these stations should collaborate with the circuit courts to organize diverse legal‑education initiatives—such as bringing the law into schools and conducting mock trials—so as to strengthen minors’ awareness of the rule of law and enhance guardians’ sense of responsibility, thus fostering a positive social climate in which the entire community collectively cares for and supports the healthy development of minors.
It is reported that the circuit trial stations of the Juvenile Courts were officially established on March 6, 2021, at the locations of the Supreme People’s Court’s six circuit courts. Over the past nearly two years, under the unified guidance of the Supreme People’s Court’s Juvenile Court Work Office, these circuit trial stations have actively fulfilled their functions, exploring numerous valuable experiences and practices in areas such as strengthening the adjudication and guidance of juvenile cases, conducting specialized research on juvenile justice, and carrying out legal education for young people, thereby achieving positive results. The issuance of these “Opinions” will further and effectively advance the professionalization of juvenile courts and promote the continuous improvement of China’s socialist juvenile justice system with Chinese characteristics.

The Supreme People’s Court has issued guiding opinions to further refine the procedures for handling cases involving supervision of enforcement applications.
Recently, the Supreme People’s Court issued the “Opinions on Several Issues Concerning the Handling of Cases Subject to Supervision of Enforcement Applications” (hereinafter referred to as the “Opinions”). The Opinions systematically summarize the experience accumulated by the people’s courts in handling such cases over recent years and, in response to the new demands and expectations of the public regarding enforcement work, provide standardized guidelines for addressing a series of common issues frequently encountered in the practical handling of these cases.
It is understood that the Opinions, while drawing on the reform spirit of the Supreme People’s Court’s Measures for Implementing the Pilot Program to Improve the Functional Positioning of the Four-Level Court System, and in accordance with the requirements of the Supreme People’s Court’s Opinions on Further Improving the Mechanisms for Restraining Enforcement Powers and Strengthening Enforcement Oversight, are grounded in the critical historical period during which China’s enforcement work is focused on effectively resolving the difficulties of enforcement, thereby comprehensively reinforcing the Supreme People’s Court’s role and functions in ensuring the correct and uniform application of the law.
The “Opinions” standardize the procedures for filing and accepting applications for supervisory review of enforcement cases, providing guidance and setting forth requirements regarding the appropriate channels through which parties may petition the enforcing court or the higher-level court to expedite enforcement. With respect to cases that should be resolved through arbitration or substantive litigation, the document clearly directs parties and interested third parties to pursue remedies within those respective procedural frameworks, thereby eliminating ambiguities in existing regulations. Furthermore, the “Opinions” regulate the handling of repeated and multiple applications for enforcement supervision, thereby enhancing the efficiency with which enforcement proceedings safeguard the legitimate rights and interests of the parties involved.
The “Opinions” regulate the time limits for applying for enforcement supervision, specifying that when an applicant disagrees with a ruling on an enforcement review, or seeks enforcement supervision from the people’s court because the deadline for filing an objection to enforcement or for requesting a review has expired, such applications must be filed within a prescribed period. According to the explanation, this measure helps maintain the stability of the enforcement process and ensures that the lawful rights and interests of winning parties are effectively protected.
While setting out general provisions and procedures for applying for enforcement supervision, the Opinions, in line with the spirit of reform underlying the functional reorientation of the four-tier court system, further clarify the scope of cases that the Supreme People’s Court and the higher people’s courts are authorized to accept and handle. They also specify the conditions for filing an application for enforcement supervision with the Supreme People’s Court, thereby comprehensively strengthening the Supreme People’s Court’s role in ensuring the correct and uniform application of the law.
The “Opinions” also stipulate three methods for closing enforcement‑supervision cases and provide standardized guidelines on the requirements for the closing documents. (Reporter: Sun Hang)

Fa Fa [2023] No. 4
Supreme People’s Court
Opinions on Several Issues Concerning the Handling of Cases Involving Supervision of Enforcement Applications
In order to further refine the procedures for handling supervisory cases involving applications for enforcement and to promote the consistent and correct application of the law, this Opinion is formulated in accordance with the provisions of the Civil Procedure Law of the People’s Republic of China and the requirements set forth in the Supreme People’s Court’s Opinions on Further Improving the Mechanisms for Restraining Enforcement Powers and Strengthening Enforcement Supervision, while taking into account the realities of enforcement work.
Article 1. Where a party or an interested party, dissatisfied with an enforcement reconsideration ruling rendered by the people’s court in accordance with Article 232 of the Civil Procedure Law, applies to the next higher people’s court for enforcement supervision, the people’s court shall accept the case, unless otherwise provided by law, judicial interpretations, or these Opinions.
If an applicant, pursuant to law, should have filed an objection to enforcement but failed to do so and instead directly applies to the people’s court at the next higher level of the court that rendered the enforcement order for supervisory review, the people’s court shall inform the applicant to file an objection to enforcement with the original enforcing court or to apply for supervisory review. Similarly, if an applicant, pursuant to law, should have applied for a reconsideration but did not and instead directly applies to the people’s court at the next higher level of the reconsideration court for supervisory review, the people’s court shall inform the applicant to either seek reconsideration from the reconsideration court or to apply for supervisory review.
In the course of handling enforcement-related complaints and petitions, if the People’s Court finds that the petition meets the conditions set forth in the preceding two paragraphs, it shall proceed in accordance with those provisions.
Article 2: If the applicant for enforcement believes that the people’s court should have taken enforcement measures but failed to do so, and requests the enforcing court to take such measures, the people’s court shall promptly review and handle the matter; in general, no separate enforcement objection case shall be filed.
If, within the statutory time limit, the executing court fails to enforce the judgment, and the applicant for enforcement, in accordance with Article 233 of the Civil Procedure Law, requests that the higher-level people’s court assume jurisdiction over the enforcement, order the lower-level people’s court to enforce the judgment within a specified time, or designate another people’s court to carry out the enforcement, the case shall be filed and processed.
Article 3: Where a party, dissatisfied with an enforcement ruling, applies to the people’s court for a review or for enforcement supervision, and any of the following circumstances exists, the people’s court shall, in an appropriate manner, clarify the relevant legal provisions or statutory remedies; such applications shall generally not be accepted as cases for enforcement review or enforcement supervision:
(1) In accordance with Article 234 of the Civil Procedure Law, where a party outside the case is dissatisfied with the ruling on an objection and either initiates proceedings under the trial supervision procedure or files a lawsuit with the people’s court;
(2) In accordance with Article 32 of the Provisions of the Supreme People’s Court on Several Issues Concerning the Amendment and Addition of Parties in Civil Enforcement Proceedings, a party who is dissatisfied with a ruling on an application for the amendment or addition of a party may file an enforcement objection lawsuit with the people’s court.
(3) In accordance with Article 244 of the Civil Procedure Law, if a people’s court rules that an arbitral award shall not be enforced, the parties may either re‑apply for arbitration or bring a lawsuit before the people’s court.
(4) In accordance with Article 20 of the Provisions of the Supreme People’s Court on Several Issues Concerning the Enforcement of Notarized Creditor’s Instruments, if a notarized creditor’s instrument is ruled not to be enforced, or only partially enforced, the parties may file a lawsuit with the people’s court.
(5) Other circumstances where relief is not available through the execution‑review procedure as prescribed by law or judicial interpretation.
Article 4. An application for enforcement supervision filed with the People’s Court shall not be accepted if any of the following circumstances applies:
(1) Where an application for enforcement supervision is filed against an enforcement supervision ruling issued by the people’s court on a reconsideration decision;
(2) Where, after the People’s Procuratorate has decided not to issue a prosecutorial recommendation in response to the applicant’s request, the applicant subsequently files an application for enforcement supervision.
In the circumstances set forth in paragraph 1 of the preceding article, the people’s court shall inform the parties that they may apply to the people’s procuratorate for a prosecutorial recommendation; provided, however, that this does not apply where an enforcement supervision ruling is rendered solely on the basis of a prosecutorial recommendation issued by the people’s procuratorate.
Article 5: Where an applicant, dissatisfied with a ruling on enforcement review, applies to the people’s court for supervisory review of enforcement, such application shall, in accordance with Article 212 of the Civil Procedure Law, be filed within six months from the date the enforcement review ruling becomes legally effective.
Where an applicant seeks supervisory review of enforcement proceedings with the people’s court on the ground that the time limit for filing an objection to enforcement or for applying for a reconsideration has expired, such application shall be filed within six months from the date on which the relevant time limit for filing the objection or for applying for reconsideration has expired.
If an applicant files a request for enforcement supervision with the people’s court beyond the aforementioned time limit, the people’s court shall not accept the case; if the case has already been accepted, the court shall issue a ruling to terminate the review.
Article 6: Where an applicant is dissatisfied with the execution review ruling rendered by a Higher People’s Court, the applicant shall apply to the original Higher People’s Court for execution supervision. If an applicant applies to the Supreme People’s Court for execution supervision and the case falls under any of the following circumstances, the Supreme People’s Court shall accept the application:
(1) The applicant raises no objection to the basic facts found and the review procedures set forth in the enforcement reconsideration ruling, but contends that the applicable law was applied incorrectly;
(2) The execution of the reconsideration ruling has been deliberated and decided by the Adjudication Committee of the Higher People’s Court.
Article 7. When applying to the Supreme People’s Court for enforcement supervision, the application for enforcement supervision shall, in addition to the matters required by law, state that there are no objections to the basic facts found and the review procedures applied in the original ruling, and shall also set forth the key points of contention regarding the legal issues involved in the case, together with the reasons and grounds supporting the argument that the ruling erred in its application of the law.
If the application for enforcement supervision submitted by the applicant fails to comply with the requirements set forth in the preceding paragraph, the Supreme People’s Court shall provide guidance and clarification, and shall, in a single notice, require the applicant to rectify the deficiencies within ten days. If the applicant fails to make the necessary corrections within the prescribed time limit without justifiable grounds, the application shall be treated as withdrawn.
Article 8: If a ruling on enforcement review issued by a Higher People’s Court contains a clear error in the application of law and falls under any of the following circumstances, the Supreme People’s Court may institute an enforcement supervision case:
(1) Those that have general guiding significance for the application of law;
(2) Where, over the past three years, there exist significant discrepancies in the application of law among final judgments rendered by the Supreme People’s Court or by different higher people’s courts in similar cases, and such discrepancies remain unresolved as of the time of case review;
(3) Other circumstances where the Supreme People’s Court deems it necessary to institute an enforcement supervision case.
The Supreme People’s Court may initiate supervisory proceedings when it discovers that an enforcement ruling that has already taken legal effect issued by people’s courts at all local levels or by specialized people’s courts is indeed erroneous and falls under one of the circumstances set forth in the preceding paragraph.
Article 9: Where an enforcement supervision case submitted to the Supreme People’s Court falls under any of the following circumstances, the Supreme People’s Court may decide that the original trial higher people’s court shall conduct the review:
(1) Where the case may involve unclear basic facts, unlawful review procedures, or the omission of objections;
(2) Where the original administrative reconsideration decision may have erred in its application of the law, but does not bear general guiding significance for the application of the law.
Article 10. Upon review, if the Higher People’s Court finds that the original ruling indeed misapplied the law and falls under one of the circumstances set forth in Items (1) and (2) of Article 8 of these Opinions, thereby necessitating review by the Supreme People’s Court, it may, after deliberation and decision by its Adjudication Committee, submit the case to the Supreme People’s Court for review.
Upon receiving a request for review submitted by a higher people’s court pursuant to the preceding paragraph, the Supreme People’s Court shall, if it deems such review necessary, institute a case for examination; if it finds no such necessity, it shall refuse to institute the case and order that the matter be referred back to the higher people’s court for filing and examination.
Article 11: Within thirty days from the date of receipt of the application for enforcement supervision, the Supreme People’s Court shall decide whether to institute a case for review either by this Court or by the higher people’s court that rendered the enforcement reconsideration ruling.
Where the Supreme People’s Court has decided that the original higher people’s court shall conduct the review, it shall, within ten days from the date of such decision, forward the application for enforcement supervision and the relevant materials to the original higher people’s court for filing and examination, and promptly notify the applicant.
Article 12. In addition to the methods of case closure specified in Article 26 of the “Opinions of the Supreme People’s Court on Several Issues Concerning the Filing and Closure of Enforcement Cases,” enforcement supervision cases may also be closed by the following means:
(1) Set aside the ruling on the execution objection and the ruling on the execution reconsideration, and remand the case to the court of objection for a new review; or set aside the ruling on the execution reconsideration and remand the case to the reconsideration court for a new review.
(2) To be handled as a withdrawal of the application for execution supervision;
(3) Termination of the Review.
Article 13. When reviewing enforcement supervision cases, the people’s courts shall generally issue an enforcement ruling; however, if the appeal is not upheld, they may, depending on the specific circumstances of the case, issue a notice of rejection.
Article 14 This Opinion shall come into force on February 1, 2023. After the entry into force of this Opinion, any provisions in previous opinions issued by the Supreme People’s Court that are inconsistent with this Opinion shall be governed by this Opinion.
With respect to enforcement‑supervision cases filed with the Supreme People’s Court prior to the entry into force of these Opinions, if such cases had not been concluded by the date of entry into force, they shall continue to be reviewed and processed.
Supreme People’s Court
January 19, 2023

Facilitating Litigation for Parties and Enhancing the Quality and Efficiency of Trials: The Liaoning High People’s Court Adjusts Jurisdiction over Foreign-related Civil and Commercial Cases.
In recent years, the number of foreign-related civil and commercial cases has risen significantly, and the influence of such cases has continued to grow. In accordance with the Civil Procedure Law of the People’s Republic of China and the Provisions of the Supreme People’s Court on Several Issues Concerning Jurisdiction over Foreign-Related Civil and Commercial Cases, the Higher People’s Court of Liaoning Province recently issued a notice adjusting jurisdiction over foreign-related civil and commercial cases, with the aim of safeguarding the lawful rights and interests of both Chinese and foreign parties, facilitating litigation, and further enhancing the quality and efficiency of adjudication in this category of cases.
According to reports, as China’s open economy continues to develop, the existing mechanism for centralized jurisdiction over foreign-related civil and commercial cases can no longer fully meet the demands of the new circumstances and tasks. Previously, only a very small number of primary people’s courts and a limited number of intermediate people’s courts were designated to exercise centralized jurisdiction over first-instance foreign-related civil and commercial cases, which proved inefficient and inconvenient for parties and was also detrimental to the sustained improvement of the quality and effectiveness of adjudication in such cases. This adjustment to the jurisdictional framework for foreign-related civil and commercial cases will help ensure that primary people’s courts focus on accurately ascertaining the facts and resolving disputes substantively; intermediate people’s courts concentrate on providing effective second-instance final adjudication and precisely settling disputes; and higher people’s courts prioritize retrial to correct errors in accordance with the law and to standardize the application of legal norms.
The notice clarifies that basic-level people’s courts have jurisdiction over first-instance foreign-related civil and commercial cases, unless otherwise provided by law or judicial interpretation. First-instance foreign-related civil and commercial cases with a subject matter value of RMB 20 million or more (inclusive), as well as those involving complex facts or a large number of parties on one side, and other foreign-related civil and commercial cases that have a significant impact within the jurisdiction, shall be under the jurisdiction of intermediate people’s courts, unless otherwise provided by law or judicial interpretation. First-instance foreign-related civil and commercial cases with a subject matter value of RMB 5 billion or more (inclusive), or other such cases that have a significant impact within the jurisdiction, shall be under the jurisdiction of the provincial higher people’s court.
In addition, foreign-related civil and commercial cases are heard by specialized tribunals or collegial panels. This Notice shall not apply to foreign-related maritime and admiralty disputes, foreign-related intellectual property disputes, foreign-related environmental damage compensation disputes, or foreign-related environmental public interest civil litigation cases.

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