JC Master Legal News Issue 1052

Key Takeaways for This Issue

The China Banking and Insurance Regulatory Commission and the People’s Bank of China have issued the “Measures for the Risk Classification of Financial Assets of Commercial Banks.”
To further promote commercial banks’ accurate identification and assessment of credit risk and ensure the true reflection of asset quality, the China Banking and Insurance Regulatory Commission, in conjunction with the People’s Bank of China, has jointly formulated the “Measures for the Risk Classification of Financial Assets of Commercial Banks,” which are hereby officially promulgated.
The Ministry of Commerce and four other departments have jointly issued the “Administrative Measures for the Demonstration Establishment of Time-Honored Chinese Brands.”
Recently, the Ministry of Commerce, the Ministry of Culture and Tourism, the State Administration for Market Regulation, the National Cultural Heritage Administration, and the National Intellectual Property Administration jointly issued the Measures for the Demonstration Establishment of Time-Honored Chinese Brands (hereinafter referred to as the “Measures”).
Convenient tax services bring a warm “spring breeze” to taxpayers.
On January 1, the State Taxation Administration issued the “Opinions on Launching the 2023 ‘Spring Breeze Action for Convenient Tax Services,’” introducing an initial package of 17 measures across six key areas to make tax filing and payment more convenient. With this, the “Spring Breeze Action for Convenient Tax Services,” now in its tenth consecutive year, officially got underway. Over the past month and more, tax authorities nationwide have closely followed the guidelines set out in the Opinions, tailored their efforts to local conditions, and acted swiftly while making meticulous arrangements, ensuring that the warm “spring breeze” of taxpayer‑friendly services has begun to blow.
Supreme People’s Procuratorate: Ensure the precise handling of major cases in accordance with the law and promote the sustained, regularized campaign against organized crime and evil forces.
From February 8 to 11, Chen Guoqing, a member of the Party Leadership Group and Vice Procurator-General of the Supreme People’s Procuratorate, and also Deputy Director of the National Anti-Black-Evil Campaign Office, led a delegation to Sichuan to conduct research and oversight.

Finance & Capital Markets
The China Banking and Insurance Regulatory Commission and the People’s Bank of China have issued the “Measures for the Risk Classification of Financial Assets of Commercial Banks.”
To further promote commercial banks’ accurate identification and assessment of credit risk and ensure the true reflection of asset quality, the China Banking and Insurance Regulatory Commission, in conjunction with the People’s Bank of China, has jointly formulated the Measures for the Risk Classification of Financial Assets of Commercial Banks (hereinafter referred to as the “Measures”), which are hereby officially promulgated.
A sound risk‑classification framework is a prerequisite for effectively managing credit risk. In 1998, the People’s Bank of China issued the “Guiding Principles for Loan Risk Classification,” introducing the five‑category classification system. In 2007, the former China Banking Regulatory Commission released the “Guidelines on Loan Risk Classification” (hereinafter referred to as the “Guidelines”), further clarifying the regulatory requirements for the five‑category classification. In recent years, the asset structure of Chinese commercial banks has undergone significant changes, and risk‑classification practices have encountered numerous new circumstances and challenges, exposing certain shortcomings and deficiencies in the existing regulatory framework. In 2017, the Basel Committee on Banking Supervision published the “Principles for Prudent Asset Management,” setting out clear criteria for identifying non‑performing and restructured assets and establishing corresponding classification requirements, with the aim of enhancing the consistency of global banking‑sector asset‑risk‑classification standards and improving the comparability of outcomes. Drawing on both international and domestic best practices and taking into account the current state of China’s banking sector and its regulatory experience, the China Banking and Insurance Regulatory Commission and the People’s Bank of China have formulated and implemented these Measures, which are of great significance in helping commercial banks strengthen credit‑risk management and enhance their overall risk‑management capabilities.
The Measures comprise six chapters and 48 articles, requiring commercial banks to adhere to the principles of authenticity, timeliness, prudence, and independence in conducting risk classification for all on- and off-balance-sheet financial assets that bear credit risk. Compared with the existing Guidelines, the Measures broaden the scope of assets subject to risk classification, introduce a new definition of risk classification, emphasize a classification approach centered on the debtor’s ability to perform, and further clarify the objective criteria and requirements for risk classification. At the same time, the Measures set out systematic requirements for commercial banks to strengthen risk‑classification management and specify relevant supervisory and administrative measures.

The Ministry of Commerce and four other departments have jointly issued the “Administrative Measures for the Demonstration Establishment of Time-Honored Chinese Brands.”
Recently, the Ministry of Commerce, the Ministry of Culture and Tourism, the State Administration for Market Regulation, the National Cultural Heritage Administration, and the National Intellectual Property Administration jointly issued the Measures for the Demonstration Establishment of Time-Honored Chinese Brands (hereinafter referred to as the “Measures”).
The Measures uphold the dual priorities of preserving historical traditions and providing exemplary leadership, while simultaneously advancing both protection and promotion alongside standardized management. They focus on fully leveraging the demonstrative and leading role of time-honored brands in boosting consumption, upgrading industries, guiding cultural development, and fostering national confidence. The Measures set forth clear provisions and requirements regarding the overarching principles, basic criteria, application and recognition procedures, and dynamic management of the establishment of China’s time-honored brands. Furthermore, they propose instituting a dynamic management mechanism characterized by “entry and exit,” continuously refining the roster of China’s time-honored brands, and encouraging these brands to adapt to market forces, uphold core values while pursuing innovative development, and lead and drive more market entities toward high-quality growth. The aim is to bolster confidence in development, accelerate brand cultivation and expansion, foster a robust domestic market, and better meet the people’s aspirations for a better life.

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‑making activities, thereby better supporting high‑quality economic development.

The Shenzhen Stock Exchange has revised its industry-specific information disclosure guidelines, enhancing institutional support to promote high-quality development among listed companies.
To implement the China Securities Regulatory Commission’s Three-Year Action Plan for Enhancing the Quality of Listed Companies (2022–2025) and further refine and improve the system of information disclosure rules, thereby enhancing the relevance and effectiveness of industry-specific disclosures, the Shenzhen Stock Exchange today issued the newly revised “Shenzhen Stock Exchange Self-Regulatory Guidance No. 3 for Listed Companies—Industry Information Disclosure” and “Shenzhen Stock Exchange Self-Regulatory Guidance No. 4 for Listed Companies—ChiNext Industry Information Disclosure” (hereinafter collectively referred to as the Industry Information Disclosure Guidelines).
The industry‑specific information disclosure guidelines are investor‑oriented, emphasizing the disclosure requirements for operational information unique to each sector. They represent an important initiative by the Shenzhen Stock Exchange to enhance the quality of industry‑level information disclosure and foster high‑quality corporate development through the provision of high‑standard regulatory frameworks. Since 2013, when the ChiNext Board introduced disclosure guidelines for the film and television and pharmaceutical industries, the Shenzhen Stock Exchange has attached great importance to this work and continuously refined its self‑regulatory rules on industry‑specific disclosure. It has established two distinct sets of industry‑specific disclosure frameworks—one for the Shenzhen Stock Exchange and one for the ChiNext Board—systematically standardizing disclosure requirements across 33 sectors. As a result, the transparency and comprehensibility of industry‑related information have improved markedly, enabling investors to better understand, interpret, and assess listed companies, thereby effectively supporting the market’s ability to discover corporate value.
This revision adheres to the principles of market‑based and law‑based governance, upholding the philosophy of regulatory‑driven development. Building on in‑depth research into industry characteristics, a systematic review of prior regulatory experience, and extensive consultation with all market participants, it also takes into account emerging issues and trends in the development of listed companies, thereby making adaptive adjustments to the industry’s information disclosure guidelines. These adjustments primarily encompass the following aspects:
First, in response to market concerns, we have refined the requirements for disclosing operational information. We encourage listed companies in the automotive sector to disclose regional sales data, strengthen disclosure obligations for major projects among listed offices in the civil engineering and construction industries, and make adaptive adjustments to the reporting standards for periodic disclosures in the photovoltaic sector. At the same time, while safeguarding investors’ right to know, we have appropriately balanced the trade‑off between the effectiveness and cost of information disclosure in certain sectors, thereby fostering the sound development of listed companies.
Second, we will emphasize industry-specific characteristics and strengthen ESG disclosure requirements. In light of sectoral nuances, we will refine the disclosure obligations for material environmental‑pollution incidents in high‑impact industries such as solid mineral resources, food and beverage manufacturing, textiles and apparel, chemicals, and power generation, thereby encouraging listed companies to strike an appropriate balance between business growth and environmental stewardship. For sectors with a higher likelihood of safety accidents and greater potential adverse impacts—such as solid mineral resources, chemicals, and civilian explosives—we will further specify the disclosure requirements for major safety incidents, urging listed companies to earnestly fulfill their social responsibilities.
Third, we will strengthen regulatory coordination and revise non‑industry‑specific information disclosure requirements. We will remove the general financial disclosure obligations for periodic reports, as well as the requirements for disclosing administrative penalties and environmental information, which are already governed by other business rules, thereby further emphasizing the industry‑specific nature of such disclosures. In addition, we will standardize the disclosure criteria for material contracts across all industries on the ChiNext Board and align them with other relevant regulations.
The Shenzhen Stock Exchange has consistently adhered to the principle of open rulemaking. Throughout the process of revising its guidelines, it has solicited feedback from listed companies through various channels, including symposiums and telephone consultations, to gain a thorough understanding of industry conditions and carefully consider the concerns of all stakeholders. The Exchange attaches great importance to the views and suggestions submitted by listed companies, conducts rigorous analysis and comprehensive deliberation, and incorporates those that are reasonable and well-founded.
The Shenzhen Stock Exchange will earnestly implement the spirit of the 20th National Congress of the Communist Party of China and the decisions and arrangements made at the Central Economic Work Conference, adhering to a market‑oriented and law‑based approach. It will uphold the principles of “establishing sound systems, non‑interference, and zero tolerance,” as well as the requirements of “four respects and one concerted effort,” and steadily advance the Work Plan for Implementing the Three-Year Action Plan on Enhancing the Quality of Listed Companies (2022–2025). The Exchange will continue to refine its self‑regulatory framework, explore the establishment of a tiered and differentiated information disclosure regime, and further strengthen its institutional foundation while expanding the range of regulatory tools, thereby bolstering the momentum of market development and striving to elevate the overall quality of listed companies to a new level.

Commercial & Corporate
Over 600,000 units! Last year, the number of foreclosed properties listed for auction hit a record high, yet the sales rate remained below 20 percent.
Affected by the broader real estate market conditions, the number of properties listed for judicial auction nationwide has risen significantly over the past year, yet the transaction rate has declined.
According to the latest report released by the China Index Academy, in 2022, a total of 606,000 foreclosed properties were listed nationwide, an increase of 159,000 compared with 2021, representing a year-on-year growth of 35.7%. The total value of these properties put up for auction reached RMB 1.4 trillion.
Among all property types, residential and commercial properties remain the mainstay of auction listings, accounting for over 90% of the total. Residential properties listed for auction totaled 317,000 units, up 34.6% year-on-year compared with 2021.
While the number of properties listed for auction has risen, both the volume of transactions and the transaction rate have declined. In 2021, nationwide judicial auctions resulted in the sale of 138,000 units, with a transaction rate of approximately 30.9%. In 2022, 118,000 units were sold at auction, a year-on-year decrease of 14.9%, and the transaction rate fell to 19.4%.
In some second-tier cities, the number of properties listed for auction has doubled.
Foreclosed properties are real estate assets sold at public auction by the court. When a debtor is unable to repay their debts, the creditor may file a petition with the court for compulsory enforcement, resulting in the auction of the debtor’s property to satisfy the creditor’s claim.
At present, there are seven online platforms in China that are authorized to conduct auctions: Alibaba Auction, the People’s Court Litigation Asset Network, the China Association of Auctioneers Website, Gongpai.com, the Beijing Equity Exchange, ICBC RongEgou, and JD Auction.
Compared with the broader real estate market, the judicial auction housing market is relatively small in scale, yet exhibits significant variation across provinces and municipalities. According to data from CRIC, in 2022, the provinces with the highest number of properties listed for auction nationwide were Sichuan, Guangdong, Henan, Jiangsu, Chongqing, Guangxi, and Shandong, each exceeding 30,000 units; by contrast, most central and western provinces recorded fewer than 20,000 listings.
Notably, in 2022, the volume of foreclosed properties listed for auction in second-tier cities surged. Among the top 20 cities, 12 were second-tier, with some—such as Kunming, Chengdu, Zunyi, Suzhou, and Changsha—seeing their auction listings more than double. In Kunming, year-on-year growth reached 161.9%, with a total of 11,000 units put up for sale. Moreover, building on last year’s already high base, Sichuan and Chongqing recorded auction‑listing increases exceeding 80%, reaching 66,000 and 32,000 units, respectively.
However, the sharp increase in the number of properties listed for auction has not translated into a corresponding rise in sales volume. In 2022, Chongqing’s judicially auctioned‑property sales increased by only 12.9% year over year, while Kunming, where listings surged, recorded 1,505 transactions—down 5.6% from 2021.
Li Yujia, chief researcher at the Guangdong Provincial Housing Policy Research Center, stated that, generally speaking, the faster second- and third-tier cities experience a correction in existing-home prices, the greater the number of foreclosed properties.
Taking Chongqing as an example, according to data released by the National Bureau of Statistics, the second-hand residential sales price index in Chongqing declined markedly from January to December 2022. In the first and second quarters, quarter-on-quarter changes were evenly split between increases and decreases; after entering the third quarter, the price index continued to fall, reaching its lowest level for the year in October.
According to data from Zhongzhi, in December 2022, secondhand residential prices in Chongqing’s main urban area fell 0.53% month-on-month, marking the ninth consecutive monthly decline, with the rate of decline widening by 0.06 percentage points compared to November.
The Zhongzhi Report notes that, as foreclosed properties primarily stem from debt disputes, the central and western regions, along with the Yangtze River Delta and the Pearl River Delta, have seen a relatively high number of corporate bankruptcies in recent years, resulting in a substantial volume of properties listed for auction. By contrast, the core cities in the eastern coastal areas—particularly those in the Yangtze River Delta and the Pearl River Delta—boast robust economic activity; despite a sizable number of small and medium-sized enterprises filing for bankruptcy, these markets continue to enjoy strong valuation support, leading to higher transaction volumes and comparatively lower discount rates on foreclosed properties.
Among cities with more than 500 properties listed for sale, Jinhua, Taizhou, and Shaoxing in Zhejiang all posted transaction rates above 50%. Notably, although Jinhua’s rate fell by 11.3 percentage points compared with last year, it still stood at 61.8%, the highest nationwide.
In addition, the introduction of purchase‑restriction policies for foreclosed properties has also led to a decline in transaction volume in the foreclosure market.
In December 2021, the Supreme People’s Court issued the “Provisions on Several Issues Concerning the Qualification of Bidders in Judicial Auctions of Real Estate Conducted by People’s Courts,” which explicitly states in Article 1: “For judicial auctions of real estate organized by the people’s courts, applications to participate in the bidding submitted by bidders subject to purchase‑restriction policies in the location of the property shall not be approved.” The provisions took effect on January 1, 2022.
This means that individuals who do not meet the eligibility requirements for home purchase will be barred from participating in auctions. The regulation also extends to the entire country the pre‑existing restrictions on purchasing foreclosed properties that were previously enforced in first- and second-tier cities.
Discount rates have generally declined.
According to a report by Zhongzhi, in 2021, the discount rates (transaction price divided by appraised value; the higher the discount rate, the smaller the discount) in the top 20 cities by transaction volume all exceeded 70%. Among them, cities with particularly high transaction activity, such as Shenzhen and Wenzhou, recorded premiums, meaning their transaction prices surpassed their appraised values.
Following the full implementation of purchase restrictions on foreclosed properties in 2022, coupled with an intensifying adjustment in the real estate market, discount rates across cities have declined to varying degrees, while transaction discounts have widened. For instance, in Ningbo, the discount rate fell from 99.9% to 75.9%, a drop of 24.0 percentage points.
By property type, industrial and land‑related foreclosure properties have seen narrower discounts, with the discount on land‑related foreclosures narrowing in 2022 to a discount rate of 94.3%. Meanwhile, residential foreclosure properties have experienced wider discounts, with the discount rate falling to 84.8% in 2022—a decline of 4.9 percentage points.
However, in first-tier cities where land is scarce, prime-location, high-quality residential properties remain highly sought after—even when they are sold at foreclosure auctions.
In July 2022, a foreclosed property at Unit 63, Building 15, Shenzhen Xiangmihu First Ecological Park, sold for RMB 91.98 million—at a premium of 40%—setting a new record for the highest-ever sale price of a foreclosed property in Shenzhen over the past three years.
The unit is a 358.54-square-meter villa, listed with a starting price of RMB 65.7 million. After 47 rounds of bidding, it sold for RMB 91.98 million, bringing the average price to RMB 256,500 per square meter.
If the creditor is not an individual but a real estate developer, a significant portion of new homes may also flood into the judicial auction market.
Last May, due to a loan‑contract dispute with the Shenzhen Branch of Ping An Bank, 484 newly built residential units in Shenzhen Baoneng City—mortgaged by Baoneng—were forcibly auctioned off.
The Zhongzhi Report notes that foreclosure properties exhibit a certain lag in their response to changes in the economic environment, typically requiring six months or longer.
According to statistics from the Supreme People’s Court, in January 2023, the number of enterprises involved in pending bankruptcy cases nationwide reached 2,335, with Zhejiang accounting for 391 of them. It is expected that provinces and municipalities with a large number of bankruptcy cases may see a corresponding increase in the volume of foreclosed properties listed for auction going forward.

In the fourth quarter of 2022, the number of negative‑equity mortgages in Hong Kong exceeded 12,000, reaching an 18‑year high.
At present, the number of negative‑equity mortgages in Hong Kong has surpassed its peak during the financial tsunami, yet it remains at only about 11% of the level seen during the SARS outbreak in 2003.
In 2022, Hong Kong’s property prices fell by a cumulative 15.59% for the year, marking the largest annual decline since 1998. Meanwhile, the number of negative‑equity properties surged.
According to data released by the Hong Kong Monetary Authority on January 31 regarding negative‑equity residential mortgage loans as of the end of the fourth quarter of 2022, the number of such loans rose from 533 at the end of the third quarter to 12,164 at the end of the fourth quarter, a 21.83‑fold increase quarter over quarter, marking an 18‑year high since the first quarter of 2005.
The share of negative‑equity cases in total residential mortgage loans rose from 0.09% in the third quarter to 2.1%; the corresponding outstanding amount increased from HK$3.006 billion to HK$66.252 billion, a 21‑fold quarterly surge that marked a 19‑year high since the fourth quarter of 2003.
In response to a sharp increase in the number of negative‑equity properties, Norman Chan, Deputy Chief Executive of the Hong Kong Monetary Authority, pointed out that this was primarily due to residential property prices falling by 8.5% in the first three quarters of last year, followed by a further 7.7% decline in the fourth quarter. Together, these two declines have pushed the cumulative drop beyond the 10% threshold that defines negative equity.
The number of negative‑equity cases has surpassed the level seen during the financial tsunami.
Negative equity occurs when a property’s current market value falls below the outstanding mortgage balance. For example, if a buyer purchases a property for 5 million yuan and still has a 4.5-million-yuan mortgage outstanding, a 20% drop in the property’s price to 4 million yuan would render the property “negative equity.”
In general, entering the market at peak home prices and taking out high‑LTV mortgages makes it easier to fall into negative equity. Since the typical maximum LTV for residential mortgages is 90%, when home prices decline by more than 10% to 20%, negative equity is likely to surge.
According to the Private Residential Property Price Index published by the Rating and Valuation Department, the index stood at 332.5 points in December 2022, marking the seventh consecutive monthly decline. For the full year 2022, the index fell by as much as 15.6%, the largest annual drop since 1998.
Wang Meifeng, Managing Director of Central Mortgage, stated that this decline has inevitably pushed borrowers with high‑LTV mortgages—particularly those with 90% LTVs—into negative equity. Meanwhile, the relaxation of mortgage insurance eligibility has enabled more borrowers to enter the housing market, driving the share of high‑LTV mortgage insurance applications to roughly 30% of all mortgage cases. Consequently, on paper, the number of negative‑equity cases has risen markedly.
As property prices cool, mortgage applications are also declining. According to the Hong Kong Monetary Authority’s December 2022 residential mortgage statistics, new mortgage applications fell 3.6% month-on-month from November to 7,510 cases, with first-hand market loans down 14.3% to HK$7 billion. Meanwhile, the value of newly approved mortgage loans decreased 9.4% from November to HK$25.6 billion.
In the fourth quarter of 2022, the number of negative‑equity mortgages in Hong Kong exceeded 12,000, surpassing the peak of approximately 11,000 recorded during the 2008 financial crisis. The share of negative equity as a percentage of total outstanding mortgage loans also rose from less than 0.05% in the same period of 2021 to 3.66%. Among negative‑equity residential mortgage loans, the amount of the unsecured portion increased from HK$4 million in the corresponding period of 2021 to HK$2.517 billion.
According to data from the Hong Kong Monetary Authority, the total outstanding mortgage loans increased by 0.4% month-on-month to HK$1.8099 trillion at the end of December, while the mortgage loan delinquency ratio edged up to 0.06%.
However, the Hong Kong Monetary Authority stated that risks remain broadly manageable. “These cases involve residential mortgage loans or loans under mortgage insurance schemes issued by bank staff, and such loans typically have relatively high loan-to-value ratios, with a significant share accounted for by loans under mortgage insurance schemes.”
The original intent of the mortgage insurance scheme was to help citizens acquire homes on a risk‑based basis, with stringent requirements regarding applicants’ repayment capacity. According to Ngan Kwok-hang, the latest delinquency rate for loans under the mortgage insurance scheme stands at just 0.01%, lower than the overall delinquency rate for mortgage loans in the banking sector (0.06% as of end-December 2022), indicating that risks in banks’ mortgage business remain manageable.
A decline is expected in the second quarter.
As 2023 began, Hong Kong’s property market experienced an early “mini spring” ahead of the Lunar New Year. According to data from the Midland Realty network, during the week of January 16–22, 2023, a total of 81 transactions were recorded across 35 major housing estates, matching the 2011 record and marking the highest level for the same period in nearly a decade.
Industry observers believe that as property prices stabilize in the second quarter, the number of negative‑equity cases will also decline. According to Cao Deming, Chief Vice President at Jingluo Mortgage Referral, the downward trend in housing prices has likely peaked, with prices expected to stabilize in the second quarter, and the number of negative‑equity transactions set to fall during that period.
Wang Meifeng pointed out that, even when calculated on paper, the number of negative‑equity properties has risen markedly; however, based on concrete data, the actual credit and market risks stemming from this increase remain quite low.
On the one hand, data from the Hong Kong Monetary Authority show that, since the first quarter of 2011, banks have not recorded any residential mortgage loans in negative equity that were delinquent for more than three months.
On the other hand, the latest unemployment rate has fallen to 3.5%, with the contribution burden ratio estimated at below an average of 45%, and the average mortgage-to-value ratio standing at around 57%—both of which are relatively low levels.
“Negative equity is generally just a bookkeeping phenomenon; even if one falls into negative equity, it does not necessarily constitute a problem. The key for mortgage borrowers is to maintain stable, timely repayments,” noted Wang Meifeng.
At present, Hong Kong and the Chinese mainland have completed the first phase of border reopening, signaling an improvement in the property market. Wong Kin-yip, Chairman of the Midland Group, forecasts that residential prices will rise by 5% to 10% this year.
Although trading volumes have picked up somewhat, property prices have yet to show any noticeable immediate upward trend. At present, the resumption of cross-border travel between the two regions is primarily boosting consumption; the economy will need time to recover and is unlikely to return quickly to its previous levels. Wong Kin-yip also noted that he remains optimistic about the Northern District and Yuen Long, as these areas lie along the routes connecting to the Greater Bay Area.
It is worth noting that although property prices have fallen, the Hong Kong government has no plans to “ease” or “reduce” its measures. Secretary for Housing, Eva Cheng, stated that the current demand-management measures for residential properties, including several stamp duty schemes, have proven effective. Moreover, with property prices undergoing only a orderly adjustment and no significant decline in sight, any move to “relax” these measures must be handled cautiously, as it could otherwise encourage short-term speculative trading.
Financial Secretary Paul Chan noted that although the property market has shown signs of recovery recently, with the U.S. interest-rate hike cycle still ongoing, the market may continue to face short-term pressure. However, he sees no risk of a sharp downturn.
Compared with the 105,000 negative‑equity cases during the 2003 SARS outbreak, the current figure stands at roughly 11% of that level and has not placed significant pressure on the Hong Kong government. Paul Chan believes that “as long as short‑term adjustments do not undermine social stability or financial security, there is no major concern; the market should be allowed to self‑regulate.”

After more than two years since the initiative was launched, how is China’s steel industry progressing on its “dual carbon” goals?
　In September 2020, President Xi Jinping solemnly declared at the General Debate of the 75th Session of the United Nations General Assembly that China would strengthen its nationally determined contributions, adopt more robust policies and measures, strive to peak carbon dioxide emissions before 2030, and endeavor to achieve carbon neutrality before 2060.
More than two years have passed, and the national “1+N” policy framework for achieving carbon peaking and carbon neutrality has been steadily refined. As a major emitter, the steel industry has also taken proactive steps within this policy framework, making its path toward carbon peaking and carbon neutrality increasingly clear. Over the past two-plus years, what progress has the country made in advancing its dual‑carbon goals? And what new ideas does the steel sector have for the next phase of this effort?
Recently, at the Third China Steel Low-Carbon Development Goals and Pathways Conference, experts and scholars from government agencies, universities, industry associations, enterprises, and research institutions gathered to engage in an in-depth discussion on the “dual carbon” goals.
Wang Hao: The steel industry should not aim for peak emissions merely for the sake of reaching a peak.
Wang Hao, Deputy Director of the Carbon Peaking and Carbon Neutrality Promotion Division of the Department of Environmental Protection and Resource Conservation under the National Development and Reform Commission, stated that advancing the “dual carbon” goals is a major strategic decision made by the Party Central Committee with Comrade Xi Jinping at its core after careful deliberation and comprehensive consideration of both domestic and international contexts. It is an intrinsic requirement for implementing the new development philosophy, forging a new development pattern, and promoting high-quality development, carrying significant practical implications as well as far-reaching historical significance. Over the past two-plus years, China’s efforts to achieve the dual carbon targets have gotten off to a good start and are progressing smoothly. He then outlined the work in three key areas:
First, the coordination mechanism is efficient and robust. At the central level, a Leading Group for Carbon Peak and Carbon Neutrality has been established to deliberate on major issues, deploy key tasks, and advance priority initiatives. The office of the Leading Group is housed within the National Development and Reform Commission, with the Department of Environmental Protection and Resource Conservation assuming day-to-day responsibilities. Meanwhile, all provinces, autonomous regions, and municipalities directly under the central government have also set up their own regional leadership mechanisms for achieving carbon peak and carbon neutrality, thereby establishing a work system characterized by vertical linkage and inter‑agency collaboration.
Second, the “1+N” policy framework has been fully established. The CPC Central Committee and the State Council issued the “Opinions on Fully, Accurately, and Comprehensively Implementing the New Development Philosophy and Doing a Good Job in Carbon Peaking and Carbon Neutrality,” while the State Council released the “Action Plan for Achieving Carbon Peaking Before 2030.” Relevant departments have formulated and promulgated a series of implementation plans and supporting measures, clearly defining the timetable, roadmap, and detailed blueprints for advancing the “dual carbon” goals. This has resulted in a carbon‑reduction policy system that boasts the broadest global coverage, the most granular task assignments, and the most concrete and practical measures.
Third, key tasks are being steadily advanced. China is accelerating its transition to green and low‑carbon energy, planning and building 450 million kilowatts of large‑scale wind and solar power bases in desert, gobi, and arid regions, and implementing the “three‑in‑one” retrofit of coal‑fired power units. The industrial structure is being vigorously optimized and upgraded, with energy‑efficiency benchmarks and baseline levels established to drive the transformation and modernization of traditional industries. Green and low‑carbon transitions are being promoted in urban and rural development as well as in the transportation sector. A unified and standardized system for carbon‑emission statistics and accounting has been put in place, while scientific and technological innovation and talent development have been strengthened. Carbon‑reduction support tools have been introduced, and the national carbon‑emissions trading market has been launched. All key tasks are progressing in an orderly and effective manner, with results exceeding expectations.
Not long ago, the 20th National Congress of the Communist Party of China made clear arrangements for “actively and steadily advancing carbon peaking and carbon neutrality,” providing us with ideological guidance and fundamental principles to follow. We will thoroughly study and implement the spirit of the 20th National Congress, taking the “dual carbon” goals as our guiding framework, and systematically and step by step carry out the “Ten Major Actions for Achieving Carbon Peaking.” We will deepen the energy revolution, promote clean and low‑carbon transformation across industries, buildings, transportation, and other sectors, comprehensively strengthen resource conservation and environmental protection, accelerate the development of green and low‑carbon production and lifestyles, and foster a comprehensive green transformation of economic and social development.
The steel industry is a vital foundational sector of the national economy and also a key focus—and a significant challenge—in advancing emissions reductions. The steel industry must not aim for peak emissions merely to meet a target, nor should it sacrifice productive capacity in the name of decarbonization. Instead, it should seize carbon peaking as an important opportunity to drive a green, low‑carbon transformation and high‑quality development. First, deepen supply‑side structural reform by phasing out outdated capacity, optimizing existing assets, and refining the spatial distribution of production capacity. Second, accelerate the deployment of advanced, proven technologies, promote the substitution of clean energy, and unlock further potential for energy efficiency and carbon reduction. Third, comprehensively strengthen resource conservation, enhancing the efficient, intensive, and circular utilization of minerals, energy, and raw materials, while raising the level of scrap steel recovery and reuse.
Huang: Hydrogen-based metallurgy could become a key breakthrough in the green, low-carbon transition.
Huang Dao, Deputy Secretary-General of the China Iron and Steel Association, stated that in recent years, the Association has developed documents such as the “Guideline for Building a Low-Carbon Standards System in the Steel Industry,” the “Implementation Plan for Allocating Carbon Emission Trading Quotas,” and methodologies for calculating carbon dioxide emissions by steel enterprises. It has also spearheaded the establishment of an EPD (Environmental Product Declaration) platform for the steel sector, identified and selected key low-carbon technologies, defined eight frontier areas for low-carbon innovation, and released the “Three-Year Action Plan for Cultivating Low-Carbon Talent in the Steel Industry.” In August 2022, the Steel Industry Low-Carbon Work Promotion Committee formally unveiled the “Vision for Carbon Neutrality and the Low-Carbon Technology Roadmap for the Steel Industry,” outlining six major technological pathways for the low-carbon transformation of China’s steel industry: enhancing system energy efficiency, promoting resource circularity, driving process optimization and innovation, achieving breakthroughs in smelting technologies, upgrading and iterating products, and implementing carbon capture, storage, and utilization. These efforts demonstrate that China’s steel industry is on a robust trajectory toward low-carbon, green development, with a clear path forward toward carbon neutrality.
At present, cutting-edge, low-carbon, cross‑sector technologies are transitioning from theory to practice, and the steel industry is vigorously advancing energy‑saving and carbon‑reduction initiatives, with ultra‑high energy efficiency as a key pillar. So, how can we pragmatically accelerate the steel sector’s low‑carbon, green transformation?
First, advancing green and low‑carbon development in the steel industry—through energy conservation and carbon reduction—is paramount. To drive this transition, China’s steel sector is vigorously implementing three major initiatives: capacity replacement, ultra‑low emissions, and extreme energy efficiency. Given China’s limited availability of scrap steel and its resource endowment—rich in coal but relatively poor in oil and natural gas—the steel industry will remain predominantly reliant on the long process for an extended period. Consequently, deepening innovation and upgrading energy‑efficient processes and equipment, and enhancing energy performance across the entire production chain, are the top priorities for decarbonizing the steel industry and represent the key to China’s near‑term low‑carbon transformation and upgrading.
On December 9, 2022, the on-site launch meeting for the Three-Year Action Plan to Establish Energy Efficiency Benchmarks in the Steel Industry was held at China Baowu’s Zhanjiang Base, marking the entry of the Ultra‑High Energy Efficiency Project into its substantive implementation phase. The steel industry will strive to advance collaborative R&D on common technologies, prioritize the widespread application of proven energy‑saving technologies, carry out large‑scale upgrades and retrofits using energy‑efficient solutions, and comprehensively deploy research and innovation in cutting‑edge, cross‑sectoral, and cross‑industry technologies for energy conservation and carbon reduction. These efforts will make green and low‑carbon goals more concrete, realistic, and economically viable, while also promoting cross‑domain and cross‑industry synergies to systematically enhance overall energy efficiency.
Second, achieving the “dual carbon” goals hinges on technological innovation as the fundamental pathway. Driven by scientific and technological advances, transformation and upgrading will be the steel industry’s way forward. Jointly fostering collaborative R&D on common technologies and promoting the widespread application of mature solutions represent a key focus for advancing steel‑making technology. “We will study the latest developments in global steel‑production technologies and future trends, and continue to strengthen international exchanges and cooperation on low‑carbon innovation,” emphasized Director Huang.
Third, achieving the “dual carbon” goals hinges on advancing hydrogen-based metallurgy, which represents both a priority and a key breakthrough. For the steel industry, carbon serves not only as an energy source but also as an essential reducing agent. To curtail carbon use and emissions throughout steel production, hydrogen‑based metallurgy has emerged as a major focus of research and innovation. In response, the China Iron and Steel Association has identified eight cutting‑edge, globally relevant low‑carbon technologies: hydrogen‑rich and pure‑hydrogen direct reduction; hydrogen‑rich carbon‑recycling blast furnace; hydrogen‑fueled molten reduction; zero‑carbon electric‑arc furnace processes; near‑net‑shape steel manufacturing; high scrap‑to‑hot metal ratio, high‑efficiency converter technology; sensible heat recovery from metallurgical slag and its efficient resource utilization; and carbon dioxide capture and its valorization. The first three of these directly involve hydrogen‑based metallurgical technologies. Consequently, hydrogen metallurgy could become a pivotal pathway for driving the green, low‑carbon transformation.
Li Zheng seeks to gain a leading edge and competitive advantage in the global race for advanced decarbonization technologies.
Li Zheng, Director of the Institute for Climate Change and Sustainable Development at Tsinghua University, stated that in 2022, the international landscape of climate change response witnessed numerous new developments and advances. He shared his preliminary insights and expectations regarding the low-carbon transformation of the steel industry.
First, the formulation of China’s “dual carbon” goals represents both a strategic choice to address climate change and safeguard global ecological security, as well as an indispensable path toward sustainable development. These goals serve as a crucial guiding framework for achieving a green recovery and low‑carbon transition in the post‑pandemic era. We must fully, accurately, and comprehensively implement the new development philosophy, fostering a new landscape of mutual benefit that advances social progress, economic growth, and continuous environmental improvement, thereby jointly promoting high‑quality economic and social development.
Secondly, it is essential to recognize that achieving carbon neutrality by 2060 is an urgent priority, necessitating a substantial strengthening of our capacity for technological innovation. We must fully leverage the latecomer advantage in technological advancement, develop cutting-edge technologies at an early stage, and accelerate the industrialization of advanced solutions. The steel industry holds significant potential; we should proactively explore deep‑decarbonization technologies for steelmaking and vigorously promote the circular economy—first by reducing production needs at the source, and then by optimizing processes, end‑use applications, and material substitution.
Finally, the global commitment to long-term carbon neutrality will intensify the revolutionary transformation of the world economy and technology, reshape the landscape of great-power competition, and alter international economic and trade rules as well as the business models of enterprises. Deep decarbonization technologies and low-carbon development capabilities will become key indicators of a nation’s core competitiveness. Judging from the current situation, major economies around the world are accelerating their efforts in this area.
Li Zheng stated that China’s vision of achieving carbon neutrality is closely aligned with the country’s Second Centenary Goal. Accordingly, he expressed the hope that the Chinese steel industry will formulate and refine a long-term low‑carbon development strategy, proactively plan and take action, and, in particular, accelerate technological innovation to gain a competitive edge in the global race for cutting‑edge decarbonization technologies, thereby building core competitiveness. At the same time, he called for strengthened collaboration across industries and with relevant institutions to swiftly establish a green, low‑carbon, and circular industrial system.
Xiao Guodong: The global steel industry’s decarbonization goals are ambitious, but the path ahead is arduous.
Xiao Guodong, Assistant to the General Manager and Chief Representative for Carbon Neutrality at China Baowu Steel Group, stated that the global steel industry’s decarbonization goals are ambitious yet challenging, requiring the concerted efforts of steel companies worldwide. Drawing on China Baowu’s own experience, he shared three key insights.
First, steel is a recyclable, green material. The steel industry has long been a vital pillar underpinning the development of the modern world. In line with the targets set by the Paris Agreement, the steel sector has made significant contributions to society-wide emissions reductions and, in turn, relies on broad-based support from all stakeholders. Achieving the “dual carbon” goals hinges critically on restructuring the energy mix. The steel industry must foster deep integration between energy technologies and advanced manufacturing processes, pioneering new models for energy production and consumption—where hydrogen will play a pivotal role. At the same time, building a low-cost “green hydrogen” ecosystem and strengthening its alignment with steel‑related applications will greatly accelerate the advancement of low‑carbon steel technologies.
Second, pursuing innovative breakthroughs across diverse decarbonization pathways holds significant promise for the steel industry. Global scrap‑steel resources are insufficient to meet the demands of societal development, and steel production based on iron ore will remain the mainstream approach for the foreseeable future. Vigorously advancing green, low‑carbon steel products is not only dictated by current resource and energy constraints but also lays the groundwork for future generations to have access to more recycled materials—this is the historic responsibility of our generation of steel‑industry scientists and engineers.
In recent years, China Baowu has boldly ventured into uncharted territory in the field of hydrogen‑rich carbon‑recycling oxygen blast furnace technology, investing more than RMB 1 billion in R&D. After seven years of intensive technological攻关, it has overcome key challenges, including efficient, low‑cost removal of carbon dioxide from metallurgical off‑gas, high‑temperature combined injection of coal gas, pure oxygen, and pulverized coal, and the optimal distribution of blast furnace gas under full‑oxygen smelting with gas recirculation. In July 2022, the world’s first 400‑cubic‑meter industrial‑scale hydrogen‑rich carbon‑recycling oxygen blast furnace was commissioned at Bayi Steel in Xinjiang. Following three months of industrial trials, the HyCROF (hydrogen‑rich carbon‑recycling oxygen blast furnace) achieved a 30% reduction in solid fuel consumption and more than a 20% cut in carbon emissions. The successful implementation of this new process marks a significant step forward for China Baowu in leading the global steel industry toward a low‑carbon transformation of long‑process blast‑furnace operations. Moving forward, existing conventional blast furnaces with capacities exceeding 1,000 cubic meters will be retrofitted into commercial HyCROF units, offering a Baowu‑driven solution for green, low‑carbon steelmaking worldwide.
Third, “speed” poses a formidable challenge to the low‑carbon transformation of steel enterprises. In today’s rapidly evolving global economic landscape, the worldwide steel industry finds itself in an exceptionally demanding environment. A harmonious blend of rationality and wisdom, coupled with a sense of urgency and a spirit of optimism, will unleash our boundless creativity—enabling us to develop new technologies, forge new paradigms, and embrace the opportunities of the new era. This, too, is the very value of convening such seminars: by fostering mutual learning and exchange, we can inspire more steel companies to pursue technological innovation and drive the steel industry toward continued progress in carbon reduction.

Taxation
Convenient tax services bring a warm “spring breeze” to taxpayers.
Deliver benefits to the people and serve modernization.
On January 1, the State Taxation Administration issued the “Opinions on Launching the 2023 ‘Spring Breeze Action for Convenient Tax Services,’” introducing an initial package of 17 measures across six key areas to make tax filing and payment more convenient. With this, the “Spring Breeze Action for Convenient Tax Services,” now in its tenth consecutive year, officially got underway. Over the past month and more, tax authorities nationwide have closely followed the guidelines set out in the Opinions, tailored their efforts to local conditions, and acted swiftly while making meticulous arrangements, ensuring that the warm “spring breeze” of taxpayer‑friendly services has begun to blow.
Start
Scan the QR code with WeChat to read the message and share it to your Moments—Dong Xiaoyi, the finance director of Ningbo Erniu Food Co., Ltd., once again shared this “great find” with her friends.
However, this time the sharing method is quite unique: scan the QR code on the invoice‑mailing envelope. And the content being shared is equally distinctive—freshly unveiled, the first batch of 17 taxpayer‑friendly measures under the 2023 “Spring Breeze Action” for Convenient Tax Services.
“The Spring Breeze ‘Code’ is Now in Motion,” a result of swift action by the tax authorities. Following the State Taxation Administration’s clear directives on the 2023 “Spring Breeze Action for Convenient Tax Services,” tax authorities across the country promptly sprang into action, tailoring measures to local conditions and launching their own regional iterations of the initiative.
The Qinghai Provincial Tax Service has issued the “Implementation Opinions on Launching the 2023 ‘Spring Breeze Action for Convenient Tax Services,’” signaling the start of a wave of taxpayer-friendly measures in the form of Document No. 1.
The Hainan Provincial Tax Service Bureau convened a conference on taxpayer services, heralding the opening of a “Spring Breeze” initiative to make tax administration more convenient for taxpayers.
The Hubei Provincial Tax Service has issued the “2023 ‘Spring Breeze’ Action Plan for Convenient Tax Services Across the Provincial Tax System,” further refining the implementation roadmap for taxpayer‑friendly tax services in Hubei Province.
The Guangdong Provincial Tax Service Bureau, focusing on the “four connectivity” principles of cross‑jurisdictional one‑stop services, universal terminal access, seamless data sharing, and smooth interactive communication, has introduced 17 measures to facilitate tax filing and payment. These include further expanding cross‑border RMB payment services for taxes and fees, fully launching an intelligent voice‑based tax consultation service, and optimizing the re‑evaluation mechanism for taxpayer credit ratings for newly established entities, thereby further enhancing the quality and efficiency of tax administration and payment.
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Since January, tax authorities across the country have successively launched the “Spring Breeze Action for Convenient Tax Services” in various forms, bringing a warm spring breeze to taxpayers and payers.
After thoroughly learning about Hainan Province’s newly launched “Spring Breeze Action for Convenient Tax Services” through promotional posters at the tax service hall and reports in local media, Ms. Zheng, a finance professional at Haikou Yixin Financial and Tax Services Co., Ltd., repeatedly praised measures such as “automatic synchronization of change‑of‑registration information” and the “five‑minute tax service hall.” “These initiatives are closely tied to everyday tax‑filing needs and help eliminate the need to make multiple trips or navigate different departments, leaving me very optimistic about the 2023 ‘Spring Breeze Action for Convenient Tax Services,’” said Ms. Zheng.
Guarantee
The expectations of taxpayers and payers are the very direction in which tax authorities strive.
To ensure the “Spring Breeze Action for Convenient Tax Services” is carried out effectively and in an orderly manner, and to live up to the expectations of countless taxpayers like Ms. Zheng, tax authorities across the country have devised a wide range of initiatives.
— Thoroughly study and formulate an implementation plan.
Tax bureaus in Liaoning, Shanxi, Chongqing, and other provinces and municipalities have convened special meetings to review the practices and lessons learned from the “Spring Breeze Action” launched in recent years, and to make arrangements and deployments regarding task assignments and specific measures. Each department has taken responsibility for designated tasks, identified lead agencies and supporting departments, and is working in concert to deliver a comprehensive package of initiatives under the “Spring Breeze Action.”
A careful review of the plans from across the country reveals that, between the lines, arrangements are laid out with crystal clarity—emphasizing vertical coordination, seamless linkages, and layered accountability; outlining the coordinated implementation of all measures, timelines, and the division of responsibilities.
— Solidly publicize the “Spring Breeze” initiatives.
The “Spring Breeze Action for Convenient Tax Services” has been launched. How can taxpayers and payers be kept informed about the relevant measures? Tax authorities across the country have carried out comprehensive, phased, and ongoing publicity campaigns.
Consolidating taxpayer‑friendly tax and fee‑payment measures into a single “QR code” to keep the Spring Breeze Campaign’s initiatives fully operational; continuously broadcasting them on electronic display screens in tax service halls; setting up information desks, producing promotional display boards, and distributing educational materials in public venues such as plazas, shopping malls, temple fairs, and trade shows; and leveraging local mainstream media to communicate these convenience‑focused measures to taxpayers and payers…
— Continuously enriching the supporting systems and mechanisms.
Ensuring the effective implementation of the “Spring Breeze Action for Convenient Tax Services” hinges on robust institutional safeguards. Over the past month and more, tax authorities across the country have steadily stepped up their efforts in this regard, with a series of mechanisms and systems designed to ensure the meticulous execution and thorough implementation of the initiative being rolled out one after another.
For example, the Tianjin Municipal Tax Service Bureau has refined its work‑support mechanisms, established a leading group to enhance the quality and efficiency of tax and fee services, and coordinated the comprehensive implementation of the “Spring Breeze Action for Convenient Tax Services.” Meanwhile, the Ningbo Municipal Tax Service Bureau has developed a “Work Task Tracking Ledger” for the Spring Breeze Action and adjusted it on an ongoing basis, breaking down tasks layer by layer to specific departments and assigning each item to designated personnel. By aligning with set benchmarks and systematically advancing and closing out tasks, the bureau ensures clarity in objectives, progress, and accountability. In addition, the Qinghai Provincial Tax Service Bureau has strengthened the implementation mechanisms of the Spring Breeze Action, including the liaison officer system, the regular reporting system, and the evaluation system.
Seeking novelty
Picking, sorting, and basket‑filling… At the “Common Prosperity Workshop” for edible mushrooms in Dakeng Natural Village, Qingyuan County, Zhejiang Province, mushroom farmers are preparing to ship fresh shiitake mushrooms to major supermarkets and markets. “Once I pick shiitakes at the workshop, the village service station can issue an invoice and pay me right away—so convenient!” says farmer Wu Jiasen, adding that this is all thanks to the establishment of the local “Rural Tax and Fee Service Station.”
Qingyuan is the most remote mountainous county in Zhejiang Province. To bring tax and fee services closer to rural areas, the Zhejiang Provincial Tax Service Bureau has launched a special initiative under this year’s “Spring Breeze Action for Convenient Tax Services,” aimed at expanding service access points and extending services to the grassroots level. Building on the implementation of the State Taxation Administration’s initial package of 17 measures across six key areas, the bureau has also introduced distinctive measures, such as promoting data sharing to remove bottlenecks in inter‑departmental procedures and enabling cross‑border electronic tax payments.
Like Zhejiang, many localities have also introduced innovations tailored to their regional contexts.
The Hainan Provincial Tax Service Bureau has launched its first batch of three locally tailored measures: leveraging “coffee salons” as a platform to innovatively establish a communication and exchange channel between the tax authorities and businesses; fully implementing a new “inquiry-and-processing‑simultaneous” tax and fee service mechanism; and seamlessly integrating tax service windows with e‑tax bureau experience zones to pilot a “shoulder‑to‑shoulder” service model.
In light of Hubei Province’s specific conditions and tax landscape, the Hubei Provincial Tax Service Bureau has, on the basis of fully implementing the 14 measures pertaining to Hubei within the first batch of 17 taxpayer‑friendly tax and fee‑payment measures issued by the State Taxation Administration, introduced an additional seven innovative measures tailored to the unique characteristics of Hubei’s tax administration.
With the implementation of intelligent consultation, the Guangdong Provincial Tax Service has explored prioritizing smart response services for individual taxpayers, advancing the deployment of intelligent voice‑based consultation across web, mobile, and hotline channels, thereby further expanding the range of smart interaction scenarios.
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Economic scales, industrial structures, and the needs of taxpayers and payers vary across regions. To address these differences, the State Taxation Administration encourages tax authorities at all levels to “proactively explore innovation” and focus on resolving the pressing, difficult, and long‑standing concerns of taxpayers and payers.
Such innovations continue to bring “pleasant surprises” to taxpayers and payers. Upon learning of the convenience measure—“continuously leveraging the ‘National Taxpayer Supply Chain Inquiry’ function to actively facilitate connections between businesses”—Luo Hongzhi, head of Jinerui Agricultural Machinery Manufacturing Co., Ltd. in Minqin County, Gansu Province, said with delight: “A bottleneck in raw material supply, leaving us unable to produce or facing sluggish sales, is a problem our company frequently encounters. This particular measure is truly invaluable!”
Chen Qian, deputy director of the First Tax Sub‑bureau of the Gannan Tibetan Autonomous Prefecture Tax Service Bureau, who has long worked closely with taxpayers and payers, stated that the taxpayer‑friendly tax and fee measures directly address the pain points in their tax and fee‑related transactions. As a frontline official, she is committed to helping taxpayers and payers resolve their difficulties, deliver tangible results, and achieve practical outcomes.
The State Taxation Administration has made it clear that, building on the initial package of 17 taxpayer-friendly measures, it will roll out additional batches of initiatives and continue to intensify their implementation, ensuring that beyond the “spring breeze” of policy, there are also concrete actions.
The “Spring Breeze Campaign” delivers tangible results, bringing warmth to the people and ushering in another vibrant spring. In the new year, tax officials are energized, leaping forward with the agility of a startled hare and sprinting ahead—running into the “spring breeze” of convenient tax services and into the “springtime” of high-quality development.

More than 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 strive for greater productivity—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, refunds, deferrals, and exemptions exceeded RMB 4.2 trillion. These policy measures effectively eased the burden on businesses, 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 and deferrals, 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 in weathering the crisis.
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 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 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 overall economic performance, 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 production 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 nationally recognized “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 VAT refund “bonus,” 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 last year’s pre‑payment phase,” 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 completely waived, which has boosted our morale and motivated us to work even harder.” In 2022, affected by the pandemic, his business faced significant challenges; though this particular relief may seem modest, it has nonetheless injected much-needed confidence as his small store strives to overcome difficulties.
“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 for 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, policies providing tax and fee deferrals as well as 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, along with the service sector and other hard‑hit industries, endured significant shocks; granting them tax relief and exemptions has lightened their fiscal burden. 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 optimizing the 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 Precisions” 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 fraudulently obtaining additional VAT refunds, 22 cases of issuing false invoices and fraudulently claiming 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 tax‑related big data analysis, this approach first issues warnings and reminders to taxpayers who may be at risk of tax violations; next, it urges them to make rectifications; then, it conducts cautionary interviews; for those who remain uncooperative, it initiates formal investigations; and finally, for cases involving particularly serious circumstances and adverse impacts, the outcomes are publicly disclosed after investigation and prosecution.
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 electronically 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 for reference; 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 Zhejiang, the 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‑processing procedures in 2022, helping the tax authorities 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 compliance has ranked first in terms of satisfaction among all aspects of the administrative 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 fresh and even greater contributions to the comprehensive building of a modern socialist country.

Interpretation of the “Announcement of the State Taxation Administration on Handling the 2022 Individual Income Tax Comprehensive Income Settlement and Finalization”
To thoroughly implement the spirit of the 20th National Congress of the Communist Party of China, earnestly carry out the arrangements set forth at the Central Economic Work Conference, and in accordance with the requirements of the “Opinions on Further Deepening Tax Collection and Administration Reform,” the State Taxation Administration, in order to effectively safeguard taxpayers’ legitimate rights and interests and help them smoothly and compliantly complete the annual individual income tax settlement for comprehensive income (hereinafter referred to as the “settlement”), has, on the basis of a comprehensive review of the first three rounds of settlement work and after extensively soliciting opinions and suggestions from taxpayers, withholding agents, experts and scholars, and the general public, issued the “Announcement of the State Taxation Administration on Matters Relating to the Annual Individual Income Tax Settlement for Comprehensive Income for the Year 2022” (hereinafter referred to as the “Announcement”). The following is an interpretation:
I. What is the basic framework and main content of the “Notice”?
The implementation of the 2019 Individual Income Tax Law marked the establishment in China of an individual income tax system that combines comprehensive and classified approaches. Under the new law, at year‑end, taxpayers are required to aggregate their four categories of comprehensive income—wages and salaries, labor compensation, manuscript fees, and royalty income—for consolidated tax calculation, file a final tax settlement with the tax authorities, and settle any refundable or additional tax liabilities. Thanks to the concerted efforts of taxpayers, withholding agents, intermediary agencies, relevant departments, and other stakeholders across society, the first three rounds of final tax settlements proceeded smoothly and in an orderly manner, with the convenience and precision of the settlement system continuously improving. Accordingly, this Announcement generally maintains the basic framework and key provisions of the previous three announcements on final tax settlements.
The Notice comprises twelve articles. Articles 1 through 4 primarily clarify the scope of the annual tax reconciliation, the circumstances under which no reconciliation is required, the circumstances requiring it, and the pre‑tax deductions available to taxpayers, including special additional deductions and other allowable deductions. Articles 5 through 9 mainly set out the timing, methods, channels, record‑keeping requirements for filing information, and the competent tax authorities responsible for accepting such filings. Article 10 provides specific provisions on the procedures and requirements for processing refunds or additional tax payments arising from the annual reconciliation. Article 11 elaborates on taxpayer services offered by the tax authorities, appointment‑based tax processing, priority tax refunds, and related matters. Article 12 clarifies the applicability of the relevant provisions.
II. Compared with previous years, what are the main changes in the Announcement?
The Notice generally maintains the structure and content of previous annual tax settlement notices. The main changes are as follows:
First, in Article 4, under the section “Tax‑Deductible Expenses,” in accordance with the State Council’s Notice on the Establishment of a Special Additional Deduction for Infant and Toddler Care Expenses for Children Under Three Years Old (Document No. 8 [2022]) and the Ministry of Finance and the State Taxation Administration’s Announcement on Personal Income Tax Policies Related to Individual Pension Plans (No. 34 [2022]), provisions have been added allowing for the deduction, in the annual tax reconciliation, of special additional deductions for infant and toddler care expenses for children under three years old, as well as individual pension contributions.
Second, in Article 11, “Annual Tax Settlement Services,” the appointment-based tax filing system has been further refined. While maintaining the original start date of February 16, the deadline for making appointments has been extended to March 20, thereby providing taxpayers with an improved service experience.
Third, in Article 11, under the “Annual Tax Settlement Services” section, a provision has been added to grant priority tax refunds to taxpayers facing a heavy personal financial burden.
III. What new optimization measures have been introduced this year for the annual tax settlement?
This year, while ensuring the continued optimization and standardization of taxpayer services, the tax settlement process has introduced the following new measures:
(1) The scope of priority tax refund services has been further expanded. Building on the 2021 annual tax settlement, which granted priority refunds to taxpayers with elderly dependents and young children as well as those facing heavy medical expenses, the scope of this service has been broadened in two ways: first, the “young children” category now includes taxpayers who have claimed the special additional deduction for childcare of infants and toddlers under the age of three; second, taxpayers whose income declined significantly in 2022 have also been added to the priority refund program.
(2) The tax‑filing appointment period has been further extended. To provide taxpayers with better service and to make public tax services more efficient, higher‑quality, and better organized, the appointment‑based filing system will continue to be in place during the initial phase of the 2022 annual tax settlement. Taxpayers who need to file between March 1 and March 20 may book an appointment through the Individual Income Tax App or website starting February 16 (inclusive), and complete their tax settlement at the scheduled time. After March 21, no appointment is required; taxpayers may file at any time during the tax‑settlement period.
(3) Launching an intelligent QR‑code‑based tax‑pre‑deduction filing service for individual pensions. In 2022, the individual pension scheme was first rolled out in selected cities, allowing eligible individuals to claim a pre‑tax deduction for the 2022 tax year. Taxpayers can simply use the Individual Income Tax App to scan the QR code on their annual contribution receipt, which will generate the relevant annual deduction information and automatically populate the filing form, enabling them to enjoy the pre‑tax deduction when completing their annual tax reconciliation.

Supporting businesses and boosting development: fiscal and tax policies are being further strengthened.
On January 16, the provincial government issued the “Several Policy Measures to Lead a Comprehensive Improvement in Economic Performance,” which zeroes in on the challenges and weak links in economic operations. The document outlines 42 measures across 12 areas, fully leveraging policy dividends. Why has “continuously strengthening fiscal and tax support” once again been designated as the top priority? And how can these concrete financial resources be deployed most effectively?
Focusing on “key areas,” business-friendly policies are generating a cumulative effect.
“Affected by the pandemic and compounded by the lengthy training period required for skilled trades, companies are facing significant pressure on cash flow.” At the start of the New Year, Li Xiaosu, the finance director of Nanjing Anda Human Resources Co., Ltd., ran some numbers for a reporter: taking crane operators as an example, it takes at least eight months from certification to on-the-job deployment, during which employees generate virtually no output, resulting in substantial labor‑cost expenditures for enterprises in the early stages of talent development. “The tax authorities in Yuhuatai District, Nanjing, proactively visited our company to explain the ‘six taxes and two fees’ reduction and exemption policy. Although the amounts involved are modest, they have provided tangible support to help businesses alleviate difficulties, stabilize employment, and boost production.”
Since last year, our province has fully leveraged the cumulative effects of its new package of tax and fee support policies—featuring refunds, exemptions, reductions, deferrals, and rate cuts—ensuring that tangible financial relief reaches market entities in a timely manner. According to data from the Provincial Department of Finance, last year the province implemented additional tax and fee reductions, refunds, and deferrals totaling over RMB 450 billion, including RMB 252.3 billion in value-added tax credit refunds, which accounted for more than one-tenth of the national total—the largest scale in recent years. Throughout the year, cumulative rent reductions and exemptions for state-owned properties exceeded RMB 9.2 billion.
From large enterprises to small and micro businesses, driving a comprehensive and early recovery in economic performance requires unwavering efforts to support businesses and stimulate development. Among the 42 policy measures, the top priority is clearly oriented toward continuously strengthening fiscal and tax support.
“The tax and fee relief for small and micro enterprises has been steadily strengthened year after year, and these heartwarming policies have given us full confidence in the future.” Changzhou Shuangma Metal Technology Co., Ltd., a small and micro enterprise that provides aluminum‑casting services for motor rotors, is brimming with confidence about its prospects this year, according to Huang Liya, the company’s finance director.
The preferential policies on property tax and urban land use tax objectively reflect the strength of measures to support businesses and alleviate their difficulties. “In the second half of last year, a survey we conducted—covering nearly 1,000 enterprises—on the implementation of tax and fee reduction policies revealed that businesses expressed the highest level of approval for the preferential policies related to property and land taxes, with a strong desire to extend their validity appropriately and avoid abrupt policy reversals,” said a responsible official from the Provincial Department of Finance. Taking into account the actual conditions of struggling industries in Jiangsu while ensuring fiscal sustainability, the authorities have decided to further extend the implementation period of these policies by another six months, which is expected to deliver tax relief exceeding RMB 4 billion to market entities.
Activating the “engine of growth,” tax incentives irrigate the budding seeds of scientific and technological innovation.
Through extensive outreach, policy delivery, and needs assessment, the Changzhou tax authorities have established a “needs list” for taxpayers and payers as they work to ensure the effective implementation of policies at the “last mile.” Jiangsu CGN Jinwo Electronic Technology Co., Ltd. is a high-tech enterprise. “Last year, the tax authorities not only provided us with detailed guidance on the R&D expense super‑deduction policy but also connected us with a talent‑recruitment agency, helping us hire six specialized technical professionals and relieving our urgent staffing needs,” said Zhong Ming, the company’s head.
According to statistics from the provincial tax bureau, last year more than 60,000 enterprises across the province benefited ahead of schedule from the policy of additional deduction for R&D expenses, with the total amount of such deductions exceeding RMB 190 billion. Both the number of enterprises and the total amount ranked among the top nationwide.
Tax, science and technology, and finance authorities have joined forces to further strengthen support for the development of high-tech enterprises. In the first three quarters of last year, high-tech enterprises in Jiangsu benefited from corporate income tax incentives totaling over RMB 24 billion. Meanwhile, the province’s high-tech industry saw its output value rise by 11.1% year on year, accounting for 48.9% of industrial output among enterprises above designated size.
In Jiangsu, technological innovation—a key variable—is steadily transforming into the greatest driver of high-quality development.
Tax incentives are nurturing the seedlings of technology enterprises. Under the “42 Measures,” value-added tax is exempted on incubation services provided by eligible science and technology business incubators, university science parks, and maker spaces, and property tax and urban land use tax are waived on properties and land used by these entities themselves or leased to their incubatees. Furthermore, qualified venture capital offices and angel investors who invest in early-stage technology startups may deduct 70% of their investment amount from their taxable income.
“We are a small, medium, and micro enterprise located in the Nanjing Pukou Science and Innovation Industrial Park, primarily engaged in the production of third-generation semiconductor epitaxial wafers. As our production base is still under construction, we have made substantial purchases of equipment and raw materials. Coupled with rising prices for bulk commodities, our working capital has become somewhat strained. Fortunately, last year we received a timely VAT credit refund of 3.07 million yuan, which helped us navigate this challenging period,” said Wang Fang, the finance director of Nanjing Baishi Electronic Technology Co., Ltd. “As for this year’s new policies, we have no concerns about missing out on any benefits, thanks to the dedicated support of our tax liaison officer.”
Deliver on the “must‑answer questions,” with policy tools supporting enterprises’ long-term development.
At present, intelligent upgrading and digital transformation have become essential challenges that determine both survival and long-term development. “Since last year, the Future Network Group has provided intelligent diagnostic and assessment services to more than a hundred enterprises across the province, helping them identify key pain points and areas for improvement while offering concrete implementation roadmaps and decision‑making support to enhance quality and efficiency,” said Liu Yunjie, an academician of the Chinese Academy of Engineering and Chairman of the Future Network Group. He added that the Group has established a diversified service system geared toward enterprise‑level intelligent upgrades, digital transformation, and high‑quality industrial development, and, with policy backing, will further strengthen its diagnostic capabilities to address the widespread issues of enterprises—namely, their reluctance, inability, or lack of confidence to embark on transformation.
Last year, the province allocated a total of 4.4 billion yuan in coordinated funding, emphasizing benchmark leadership to invigorate market entities and support more than 25,000 large-scale industrial enterprises across the province in launching intelligent upgrades and digital transformations. This effort accelerated the implementation of innovative industrial Internet applications and the broader adoption of next-generation information technologies. Specifically, the provincial treasury earmarked 1.27 billion yuan to provide free diagnostic services for intelligent transformation and digitalization to 20,000 large-scale industrial enterprises statewide. Additionally, through measures such as interest subsidies on loans and grants for eligible investments, the province supported 86 benchmark demonstration projects in smart manufacturing, 24 R&D initiatives for smart manufacturing equipment and industrial software, 26 subsidized investment projects for major technological upgrades, 41 industrial Internet and information infrastructure construction projects, and 35 projects aimed at building supporting service systems.
In the new year, the provincial special fund for the transformation and upgrading of the industrial and information sectors will allocate RMB 1.2 billion to support industrial enterprises in carrying out free diagnostics, high-end renovation and upgrading, benchmark demonstration projects in smart manufacturing and the industrial internet, as well as innovation in integrated applications. These efforts will help small and medium-sized enterprises migrate to the cloud and accelerate the intelligent transformation and digitalization of the manufacturing sector. Additionally, RMB 950 million will be earmarked from the provincial special fund for the development of strategic emerging industries, which, in line with the industrial framework outlined in the province’s 14th Five-Year Plan for Strategic Emerging Industries, will adopt a combination of fixed‑amount subsidies and a shift from grants to equity investments to foster the clustered, integrated development of these industries.
“Jiangsu is a major manufacturing province, with its rate of integration between informatization and industrialization ranking first nationwide for eight consecutive years, giving it a clear foundational advantage in enterprise digital transformation,” said Hu Changming, Chief Expert at the 14th Research Institute of China Electronics Technology Group Corporation and a member of the National Intelligent Manufacturing Expert Committee. He believes that to further elevate the level of intelligence within individual enterprises and across specific industries, it remains essential to continuously leverage policy tools, systematically advance enterprise digital transformation projects centered on core business functions, accelerate the development of smart factories and smart enterprises, and promote the high-end, intelligent, green, and clustered growth of the manufacturing sector.

LITIGATION & ARBITRATION
Zhou Qiang: Fully leverage the role of judicial functions to provide high-quality judicial services that support the high-quality development of the Guangdong-Hong Kong-Macao Greater Bay Area.
On the morning of February 9, a symposium on judicial services for the high-quality development of the Guangdong-Hong Kong-Macao Greater Bay Area was held at the First Circuit Court of the Supreme People’s Court. Zhou Qiang, Secretary of the Party Group and President of the Supreme People’s Court, attended the symposium and delivered a speech. Zhou Qiang emphasized the need to uphold Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guiding principle, fully implement the spirit of the 20th National Congress of the Communist Party of China, deeply apply Xi Jinping’s thought on the rule of law, profoundly recognize the decisive significance of the “two establishments,” strengthen the “four consciousnesses,” officely uphold the “four confidences,” and ensure the “two safeguards.” He also called for fully leveraging the role of judicial functions to provide high‑quality judicial services that support the high‑quality development of the Guangdong-Hong Kong-Macao Greater Bay Area.
Zhou Qiang pointed out that since the 18th National Congress of the Communist Party of China, the Party Central Committee with Comrade Xi Jinping at its core has made a series of major decisions and arrangements concerning the development of the Guangdong–Hong Kong–Macao Greater Bay Area, and the 20th National Congress of the CPC set forth clear requirements for advancing this initiative. The people’s courts must fully implement the spirit of the 20th National Congress, earnestly carry out the decisions and arrangements of the Party Central Committee, accurately identify entry points and areas of convergence for judicial services supporting the development of the Guangdong–Hong Kong–Macao Greater Bay Area, and proactively fulfill their duties and responsibilities, thereby providing robust judicial support for the high-quality development of the region.
Zhou Qiang emphasized the need to advance the alignment of judicial rules and the coordination of mechanisms among Guangdong, Hong Kong, and Macao, further improving and refining the judicial assistance framework, and fully leveraging the rule of law as a safeguard in the development of the Guangdong–Hong Kong–Macao Greater Bay Area. He called for upholding strict and impartial administration of justice, strengthening policy guidance, enhancing the role of landmark cases in providing direction, and deepening reforms of the adjudicative mechanisms related to Hong Kong and Macao, thereby proactively addressing the region’s needs for opening-up and internationalization. It is also essential to refine diversified dispute-resolution mechanisms, strengthen the coordinated use of dispute‑resolution resources across the three jurisdictions, improve the linkage between litigation and commercial mediation institutions in Hong Kong and Macao, and strive to establish the Guangdong–Hong Kong–Macao Greater Bay Area as a preferred destination for resolving international commercial disputes. Furthermore, judicial exchanges and cooperation should be deepened by exploring the establishment of regular, specialized symposiums, intensifying research on Chinese legal culture, capitalizing on the strengths of legal professionals from Hong Kong and Macao, building a demonstration zone for in-depth cooperation between the mainland and these two regions, and enhancing the Greater Bay Area’s international competitiveness in the rule of law.
To thoroughly implement the important instructions of General Secretary Xi Jinping on the development of the Guangdong–Hong Kong–Macao Greater Bay Area and the decisions and arrangements of the CPC Central Committee, the Supreme People’s Court established the Supreme People’s Court Greater Bay Area Judicial Research Center. With approval from the relevant authorities, the Shenzhen Intermediate People’s Court and the Qianhai Authority jointly founded the Greater Bay Area Judicial Research Institute, working together to build a platform for judicial research in the region. On February 9, the Supreme People’s Court Greater Bay Area Judicial Research Center and the Greater Bay Area Judicial Research Institute were officially inaugurated and began operations.
Zhou Qiang extended his congratulations on the establishment of the Greater Bay Area Judicial Research Center and the Greater Bay Area Institute of Judicial Studies. He emphasized the need to maintain a high starting point and stringent standards, to build and effectively utilize the Greater Bay Area judicial research platform, and to fully leverage its functions. With the goal of establishing a world-class institution for judicial theory research, a premier platform for judicial professional training, and a hub for judicial exchange and cooperation, he called for strengthened organizational support, intensified theoretical and practical research in relevant fields, and the promotion of judicial exchanges and personnel training between the mainland and Hong Kong and Macao, striving to transform the platform into a world‑leading center for judicial research in the Greater Bay Area.
Prior to and following the symposium, Zhou conducted on-site research at the First Circuit Court of the Supreme People’s Court, the Shenzhen Intermediate People’s Court, and the Qianhai Cooperation Zone People’s Court in Shenzhen. Zhou Qiang emphasized the need to carry forward the spirit of reform and innovation, further deepen judicial system reform, continuously enhance the quality and efficiency of adjudication and enforcement, and bolster public trust in the judiciary, thereby providing stronger judicial support for the economic and social development of the Guangdong–Hong Kong–Macao Greater Bay Area.
Vice President Tao Kaiyuan of the Supreme People’s Court, Ma Shizhong, a member of the Party Leadership Group and Director of the Political Department; Yang Wanming, a member of the Party Leadership Group and Vice President; Liu Guixiang and Wang Shumei, full-time members of the Judicial Committee; Pei Xianding, former full-time member of the Judicial Committee; Huang Lanfa, Deputy Director of the Committee on Hong Kong, Macao, Taiwan and Overseas Chinese Affairs of the National Committee of the Chinese People’s Political Consultative Conference; Li Shaoping, a member of the Standing Committee of the National Committee of the CPPCC and a member of the Social and Legal Affairs Committee; National People’s Congress deputy Fan Qingfeng; Zhang Hu, Member of the Standing Committee of the Guangdong Provincial Party Committee and Executive Vice Governor; and Zhang Haibo, President of the Guangdong Higher People’s Court, attended the symposium and took part in some of the field investigations.

Supreme People’s Procuratorate: Ensure the precise handling of major cases in accordance with the law and promote the sustained, regularized campaign against organized crime and evil forces.
From February 8 to 11, Chen Guoqing, a member of the Party Leadership Group and Vice Procurator-General of the Supreme People’s Procuratorate, and also Deputy Director of the National Anti-Black-Evil Campaign Office, led a delegation to Sichuan to conduct research and oversight.
Chen Guoqing and his delegation convened a special meeting at the Sichuan Provincial People’s Procuratorate to oversee key cases under the supervision of the National Anti-Black-and-Evil Campaign Office. They subsequently traveled to Deyang and Meishan to conduct field investigations into procuratorial work related to the protection of historical and cultural heritage, and paid an in-depth visit to the Tiannan County People’s Procuratorate—its grassroots liaison point—to assess the development of grassroots-level procuratorial institutions.
Chen Guoqing pointed out that in recent years, the Sichuan Provincial People’s Procuratorate has deepened its paired‑assistance efforts, guiding grassroots procuratorates to strengthen their internal development, enhance the quality and efficiency of their work, and achieve a positive momentum. He urged that political integrity be officely upheld in prosecutorial work, that the spirit of the 20th National Congress of the Communist Party of China be thoroughly studied and implemented, that the Party’s absolute leadership be integrated into every stage of prosecutorial duties, and that Xi Jinping Thought on the Rule of Law be applied across all aspects of judicial case handling. He also emphasized the need to advance prosecutorial work through professional excellence, closely aligning with the decisions and deployments of Party committees and the needs of local economic development to deliver high‑quality prosecutorial services. Furthermore, he called for strengthening the leadership team and personnel, combining strict management with heartfelt care, cultivating core case‑handling personnel and skilled professionals, and inspiring grassroots prosecutors to demonstrate initiative and dedication in their work.
Chen Guoqing emphasized the need to ensure the precise handling of major cases in accordance with the law, to institutionalize efforts to combat organized crime and eliminate evil forces, and to safeguard overall social stability. He also stressed the importance of fully implementing the criminal justice policy of “fewer arrests, cautious prosecution, and prudent detention,” comprehensively leveraging all procuratorial functions, and working in coordination with relevant departments to protect historical and cultural heritage, wildlife, and the Giant Panda National Park, thereby making greater contributions to economic and social development.

The Supreme People’s Procuratorate and the All-China Women’s Federation have issued a notice deciding to deepen the implementation of the campaign “Focusing on Women in Difficult Circumstances and Strengthening Specialized Judicial Assistance.”
To thoroughly study and implement the spirit of the 20th National Congress of the Communist Party of China and to put into practice the newly revised Law on the Protection of Women’s Rights and Interests, the Supreme People’s Procuratorate and the All-China Women’s Federation recently jointly issued a notice deciding to continue, in 2023, to carry out in depth the campaign “Focusing on Women in Difficult Circumstances and Strengthening Specialized Judicial Assistance.” Guided by the goal of ensuring that “all women in need who meet the eligibility criteria receive timely assistance and support,” the initiative will diversify assistance measures, intensify relief efforts, and help address the urgent, difficult, and pressing concerns of women facing hardship and their families, thereby continuously enhancing the people’s sense of gain, happiness, and security.
It is reported that since March 2022, when the Supreme People’s Procuratorate and the All-China Women’s Federation jointly launched the initiative “Focusing on Vulnerable Women and Strengthening Specialized Judicial Assistance,” procuratorial organs and women’s federations at all levels have worked closely together, coordinated their efforts, and swiftly forged a unified working force, thereby achieving positive results in advancing this special campaign to assist women in need.
The notice points out that the newly revised Law on the Protection of Women’s Rights and Interests, which came into effect on January 1 this year, provides a solid legal foundation and higher standards for judicial assistance to women in need. Procuratorial organs and women’s federations are required to prioritize key areas of assistance. Specifically, they should focus on five categories of women facing hardship—those who fall under the “5+2” criteria and meet the eligibility requirements for assistance: rural women who are designated as subjects of poverty‑prevention monitoring; women who have suffered domestic violence, sexual assault, human trafficking, or other illegal or criminal acts; women whose primary family breadwinner has been killed or rendered unable to work due to unlawful or criminal harm, leaving them responsible for raising minor children and supporting elderly relatives; women with serious illnesses or disabilities; and elderly women whose caregivers lack the means to provide support or who are effectively without any caregiver. In addition, women experiencing financial difficulties arising from civil torts such as gender discrimination in employment or workplace sexual harassment—cases that are difficult to resolve through legal channels—and those who, after filing for divorce due to domestic violence, continue to face severe hardships, should also be identified as deserving assistance. Procuratorial organs and women’s federations must strengthen their awareness of the need for assistance, coordinate efforts to provide relief and support, and help these women promptly overcome their difficult circumstances.
The notice requires strengthening the identification and referral of assistance leads. Procuratorial organs should, through channels such as the online petition information system, calls to the 12309 procuratorial service hotline, and online petitions submitted via the 12309 China Procuratorate Network, identify women who meet the criteria for assistance. In handling cases and conducting special campaigns, they should proactively ascertain the losses suffered by women due to unlawful infringement and their resulting hardships; where eligibility is established, they should inform applicants of available avenues for seeking assistance and assist them in applying for judicial relief. Furthermore, focusing on key cases and using the procuratorial business application system as a data source, they should explore leveraging digital tools to screen and prioritize assistance leads. Women’s federations are required to review public petitions received since 2022, calls to the 12338 women’s rights protection hotline, and records of grassroots outreach and care services, legal aid provided to women, and charitable programs such as educational support and poverty alleviation, in order to identify potential assistance leads and promptly refer them to the corresponding-level procuratorial organs.
The notice emphasizes the need to establish a long-term, institutionalized mechanism for collaborative assistance. In localities that have not yet put such a mechanism in place, procuratorial organs should proactively engage with women’s federations to promptly set up working platforms, strengthen coordinated consultations, and ensure the timely sharing of information on special campaigns and assistance cases, thereby fostering concerted efforts. In areas where such mechanisms already exist, the referral system for judicial assistance leads and the multi‑faceted support‑coordination mechanism should be normalized and institutionalized; supporting measures must be continuously refined, working channels kept open and efficient, and the effectiveness of assistance fully ensured.

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