JC Master Legal News Issue 1054

Key Takeaways for This Issue

The China Securities Regulatory Commission has guided stock exchanges to issue guidelines supporting insurance asset management companies in conducting asset securitization and REITs activities.
The China Securities Regulatory Commission has guided stock exchanges in formulating the “Guidelines for Insurance Asset Management Companies Engaging in Asset Securitization Business” (hereinafter referred to as the “Business Guidelines”), thereby supporting high‑quality insurance asset management companies with sound corporate governance, robust internal controls, and extensive asset‑management experience to participate in asset securitization (ABS) and real estate investment trust (REIT) activities. This initiative aims to further diversify the types of participating institutions and vigorously promote the high‑quality development of a multi‑tiered REITs market.
The China Securities Regulatory Commission has issued the Measures for the Administration of Cyber and Information Security in the Securities and Futures Industry.
To effectively implement the requirements of the Cybersecurity Law, the Data Security Law, the Personal Information Protection Law, and the Regulations on the Security Protection of Critical Information Infrastructure, to standardize network and information security management in the securities and futures industry, to prevent and mitigate industry‑wide cyber and information security risks, and to ensure the safe, stable, and efficient operation of the capital market, the China Securities Regulatory Commission has formulated and promulgated the Measures for the Administration of Network and Information Security in the Securities and Futures Industry (hereinafter referred to as the “Measures”).
The Jiangsu High People’s Court has released 20 typical cases of family disputes.
On March 7, the official WeChat account of the Jiangsu High People’s Court released a selection of typical cases involving family disputes from the 2021–2022 period. The aim is to leverage the guiding, exemplary, and leading role of judicial rulings to tell compelling stories about the rule of law, promote the spirit of the rule of law, and foster a new ethos of socialist family civility—characterized by patriotism and familial love, mutual affection, striving for progress and goodness, and joint construction and shared benefits.
The National People’s Congress voted to approve the State Council’s new institutional reform plan.
At its first session, the 14th National People’s Congress heard a report on the State Council’s institutional reform plan, delivered by State Councilor and Secretary-General of the State Council Xiao Jie on behalf of the State Council; it reviewed the plan and decided to approve it.

Finance & Capital Markets
The China Securities Regulatory Commission has guided stock exchanges to issue guidelines supporting insurance asset management companies in conducting asset securitization and REITs activities.
To implement the spirit of the 20th National Congress of the Communist Party of China and the Central Economic Work Conference, in accordance with the arrangements set forth in the General Office of the State Council’s “Opinions on Further Revitalizing Existing Assets and Expanding Effective Investment,” and to accelerate the institutionalization of infrastructure REITs issuance, the China Securities Regulatory Commission has guided stock exchanges in formulating the “Guidelines for Insurance Asset Management Companies Engaging in Asset Securitization Business” (hereinafter referred to as the “Business Guidelines”). These guidelines aim to support high‑quality insurance asset management companies—characterized by sound corporate governance, robust internal controls, and extensive asset management experience—in participating in asset securitization (ABS) and real estate investment trust (REIT) activities, thereby further diversifying the types of participating institutions and vigorously promoting the high‑quality development of a multi‑tiered REITs market.
The “Business Guidelines” adhere to the principles of systems thinking, market orientation, and a pilot‑first approach, and set out the institutional and procedural framework for insurance asset management companies seeking to engage in ABS and REITs activities. First, eligibility criteria: Insurance asset management companies intending to conduct ABS business must have sound corporate governance, comprehensive operational policies, adequate staffing and organizational structure, and robust asset management capabilities. Eligible companies may, in accordance with applicable regulations, undertake REITs business. Second, application procedures: Insurance asset management companies may submit their applications concurrently to the Shanghai and Shenzhen Stock Exchanges, which will carry out due diligence in line with relevant rules and the provisions of the “Business Guidelines.” Third, self‑regulatory oversight: The stock exchanges shall exercise self‑regulatory supervision over insurance asset management companies’ ABS and REITs activities and, as necessary, conduct compliance inspections.
Going forward, the China Securities Regulatory Commission, in coordination with the China Banking and Insurance Regulatory Commission and other relevant authorities, will, in accordance with the principle of balancing development with regulation, encourage eligible insurance asset management companies to actively engage in ABS and REITs business, promote the participation of other high-quality financial institutions as ABS managers, facilitate the entry of infrastructure assets into the market, foster a virtuous cycle between existing assets and new investments, strengthen market supervision, safeguard a healthy market environment, and enhance the ability of the exchange‑traded bond market to better serve the real economy.

The China Securities Regulatory Commission has issued the Measures for the Administration of Cyber and Information Security in the Securities and Futures Industry.
To effectively implement the requirements of the Cybersecurity Law, the Data Security Law, the Personal Information Protection Law, and the Regulations on the Security Protection of Critical Information Infrastructure, to standardize network and information security management in the securities and futures industry, to prevent and mitigate industry‑wide cyber and information security risks, and to ensure the safe, stable, and efficient operation of the capital market, the China Securities Regulatory Commission has formulated and promulgated the Measures for the Administration of Network and Information Security in the Securities and Futures Industry (hereinafter referred to as the “Measures”).
From April 29, 2022, to May 29, 2022, the China Securities Regulatory Commission (CSRC) publicly solicited comments from the public on the draft Measures. Overall, stakeholders expressed strong approval of the draft’s underlying rationale and key provisions. Following careful review, the CSRC has incorporated and adopted a number of the submitted comments.
The Measures focus on the areas of cybersecurity and information security, and, drawing on practical experience, lay out a clear roadmap for the implementation of higher-level laws within the securities and futures industry. The Measures comprehensively cover a wide range of entities, including operators of critical information infrastructure in the securities and futures sector, core institutions, market participants, and information technology service providers. Guided by the fundamental principle of ensuring security, they set forth regulatory requirements for network and information security management. Key provisions encompass network and information security operations, protection of investors’ personal information, emergency response to network and information security incidents, security safeguards for critical information infrastructure, promotion and development of network and information security, as well as oversight, supervision, and legal liabilities.
The Measures will enter into force on May 1, 2023. The China Securities Regulatory Commission will organize relevant specialized training and continue to ensure effective supervision and implementation. Entities subject to the Measures by analogy are not required to submit the annual report on network and information security management as stipulated in Article 59 of the Measures. With regard to the data backup obligations set forth in Article 20 of the Measures for such entities, the China Securities Regulatory Commission will guide the relevant industry associations to further refine the corresponding requirements.

The Shenzhen Stock Exchange has issued guidelines for insurance asset management companies to engage in ABS business, injecting new momentum into the high-quality development of the bond market.
Under the guidance of the China Securities Regulatory Commission, the Shenzhen Stock Exchange has issued the “Shenzhen Stock Exchange Guidelines on the Conofficeation of Listing Conditions for Asset-Backed Securities, No. 4: Requirements for Insurance Asset Management Companies Engaging in Asset Securitization Business (Trial)” (hereinafter referred to as the “Guidelines”). The introduction of these Guidelines expands the range of entities eligible to engage in asset-backed securities (ABS) and real estate investment trust (REIT) activities by extending the scope of ABS managers to include insurance asset management companies that demonstrate sound corporate governance, robust internal controls, and outstanding asset management capabilities. This move will help fully leverage the extensive investment, management, and operational expertise of such offices, fostering the steady and healthy development of ABS and REITs and further advancing the construction of a multi-tiered bond market. It also represents another significant step taken by the Shenzhen Stock Exchange to thoroughly study and implement the spirit of the 20th National Congress of the Communist Party of China and the Central Economic Work Conference, and to earnestly carry out the State Council General Office’s “Opinions on Further Revitalizing Existing Assets and Expanding Effective Investment.”
The Business Guidelines clarify key matters such as the application requirements, application procedures, and self-regulatory oversight for insurance asset management companies engaging in ABS and REITs activities. First, they specify the eligibility criteria, standardizing aspects such as corporate governance, business policies, personnel structure, and asset management scale for insurance asset management companies seeking to conduct ABS and REITs business. Second, they delineate the application process, regulating procedures including on-site assessments. Third, they set out self-regulatory measures, including exchange‑based on-site inspections and the imposition of regulatory actions.
Going forward, the Shenzhen Stock Exchange will, in accordance with the unified deployment of the China Securities Regulatory Commission, adhere to the principles of systems thinking, market orientation, and pilot‑first implementation. It will continue to refine its institutional framework, optimize the business innovation ecosystem, and actively support eligible insurance asset management companies in applying to engage in ABS and REITs activities, thereby diversifying the participants in the exchange‑traded ABS and REITs markets and further promoting the high‑quality development of the exchange bond market.

The preliminary screening list of the first batch of companies promoted to the Innovation Layer on the New Third Board in 2023 has been released.
Recently, the National Equities Exchange and Quotations Company (NEEQ) has carried out the 2023 implementation of the transition to the Innovation Layer in accordance with the Measures for the Hierarchical Management of the National SME Share Transfer System (hereinafter referred to as the “Hierarchical Management Measures”). Following procedures including self‑examination by listed companies, verification by sponsoring securities offices, and preliminary screening by the NEEQ, the NEEQ on March 7 finalized and released the preliminary screening list of the first batch of listed companies proposed to be upgraded to the Innovation Layer in 2023 (hereinafter referred to as the “first batch of proposed entrants”), comprising a total of seven companies.
The first batch of companies slated to move up to the Innovation Layer have demonstrated strong performance across innovation, operational quality, and growth momentum. First, their innovative profile is particularly pronounced: all seven companies operate in cutting-edge sectors such as equipment manufacturing, new materials, and digital technologies, and have obtained national- or provincial-level designations as “specialized, refined, distinctive, and innovative” enterprises or “technology‑based SMEs.” In 2022, their average R&D expenditure reached RMB 16.23 million, 69.55% higher than that of base‑level companies that have already disclosed their annual reports, while their average R&D intensity stood at 6.56%, 3.03 percentage points above the comparable group. Second, these companies exhibit robust profitability and strong growth prospects. On average, they generated RMB 247 million in operating revenue in 2022, with a two‑year compound annual growth rate of 30.05%; their average net profit was RMB 24.82 million, 19% higher than that of base‑level companies that have reported, and their average return on equity reached 16.36%, 3.42 percentage points above the peer group. Notably, six of them meet the financial criteria for listing on the Beijing Stock Exchange. Third, these offices display a clear willingness to advance. Among the initial cohort, one company satisfied the requirements for moving to the Innovation Layer just one year after being listed on the NEEQ’s Base Tier, while two others had submitted applications for pre‑listing guidance to the Beijing Stock Exchange by the deadline for upgrading.
Since the 2022 revision of the “Layered Management Measures,” by refining the criteria for advancing to higher tiers and increasing the frequency of such transitions, the role of the Innovation Layer in attracting high-quality companies has been further strengthened. As a result, the Innovation Layer has increasingly demonstrated its ability to aggregate premium enterprises. Newly promoted companies exhibit more pronounced profitability, growth potential, and innovative characteristics. The number of advancement opportunities has been expanded to six per year, thereby smoothing the growth trajectory of small and medium-sized enterprises on the New Third Board and enabling them to flexibly select optimal timing for tier upgrades based on their operational performance and capital market development plans. This allows them to schedule annual report disclosures, equity financing, public offering filings, and other related activities with greater ease and in a more orderly manner.
Following the release of the preliminary screening list of companies proposed for tier advancement, the National Equities Exchange and Quotations Company will adjust the list based on any objections received and, after completing the prescribed procedures, issue a formal decision on tier advancement. Moving forward, the Company will devote full efforts to implementing the subsequent tier‑advancement process, continuously assess and refine its tiered services, and actively support small and medium-sized enterprises in achieving sustained growth on the New Third Board.

This year, the National Equities Exchange and Quotations Company has proposed to move the first batch of seven companies into the Innovation Layer, with six of them meeting the financial criteria for listing on the Beijing Stock Exchange.
Recently, the National Equities Exchange and Quotations Company (NEEQ) carried out the 2023 implementation of the Innovation Layer upgrade process in accordance with the “Administrative Measures for the Tiered Management of the National SME Share Transfer System” (hereinafter referred to as the “Tiered Management Measures”). Following self-assessment by listed companies, verification by sponsoring securities offices, and preliminary screening by the NEEQ, the NEEQ on March 7 finalized and released the preliminary screening list of the first batch of listed companies proposed for inclusion in the Innovation Layer for 2023 (hereinafter referred to as the “first batch of companies proposed for tier upgrade”), comprising a total of seven companies.
The first batch of companies slated to move up to the Innovation Layer have demonstrated strong performance across innovation, operational quality, and growth momentum. First, their innovative profile is particularly pronounced: all seven companies operate in cutting-edge sectors such as equipment manufacturing, new materials, and digital technologies, and have obtained national- or provincial-level designations as “specialized, refined, distinctive, and innovative” enterprises or “technology‑based SMEs.” In 2022, their average R&D expenditure reached RMB 16.23 million, 69.55% higher than that of base‑level companies that have already disclosed their annual reports; their average R&D intensity stood at 6.56%, 3.03 percentage points above the base‑level peer group. Second, these offices exhibit robust profitability and growth prospects. On average, they generated RMB 247 million in operating revenue in 2022, with a two‑year compound annual growth rate of 30.05%; their average net profit was RMB 24.82 million, 19% higher than that of base‑level companies that have reported; and their average return on equity was 16.36%, 3.42 percentage points above the base‑level benchmark. Notably, six of these companies meet the financial criteria for listing on the Beijing Stock Exchange. Third, these companies display a strong willingness to advance. Among the initial cohort, one company satisfied the requirements for moving to the Innovation Layer just one year after being listed on the NEEQ’s Base Tier, while two others had submitted applications for pre‑listing guidance to the Beijing Stock Exchange by the deadline for upgrading.
Since the 2022 revision of the “Layered Management Measures,” by refining the criteria for advancing to higher tiers and increasing the frequency of such transitions, the role of the Innovation Layer in attracting high-quality companies has been further strengthened. As a result, the Innovation Layer has increasingly demonstrated its ability to aggregate premium enterprises. Newly promoted companies exhibit more pronounced profitability, growth potential, and innovative characteristics. The number of advancement opportunities has been expanded to six per year, thereby smoothing the growth trajectory of small and medium-sized enterprises on the New Third Board and enabling them to flexibly select optimal timing for tier upgrades based on their operational performance and capital market development plans. This allows them to schedule annual report disclosures, equity financing, public offering filings, and other related activities with greater ease and in a more orderly manner.
Following the release of the preliminary screening list of companies proposed for tier advancement, the National Equities Exchange and Quotations Company will adjust the list based on any objections received and, after completing the prescribed procedures, issue a formal decision on tier advancement. Moving forward, the Company will devote full efforts to implementing the subsequent tier‑advancement process, continuously assess and refine its tiered services, and actively support small and medium-sized enterprises in achieving sustained growth on the New Third Board.

The National People’s Congress voted to approve the State Council’s new institutional reform plan.
On March 10, the First Session of the 14th National People’s Congress voted to adopt the Decision on the State Council Institutional Reform Plan and approved the plan.
The plan encompasses 13 institutional reform measures, primarily stipulating the establishment of the National Administration of Financial Regulation. It assigns to this new agency the People’s Bank of China’s day-to-day regulatory responsibilities over financial holding companies and other financial groups, as well as its duties related to financial consumer protection, while also transferring the China Securities Regulatory Commission’s investor protection functions to the Administration, thereby abolishing the former China Banking and Insurance Regulatory Commission. The CSRC and the National Intellectual Property Administration will be reorganized as agencies directly under the State Council. In addition, a National Data Administration will be established to coordinate and advance the development of a data‑based institutional framework, integrate and share data resources, and promote the development and utilization of data; it will also oversee the planning and implementation of initiatives related to Digital China, the digital economy, and the digital society, and will be administered by the National Development and Reform Commission. Finally, the staffing levels of all departments within the central state organs will be uniformly reduced by 5 percent.

Commercial & Corporate
Actively implementing the “ensure building delivery and safeguard people’s livelihoods” policy, the private placement plans of two listed property developers have been accepted for review.
On March 7, Rongsheng Development and several other listed real estate companies issued announcements stating that their proposed private placements had been accepted by the stock exchange.
Hu Qimu, a specially appointed researcher at the China Enterprise Confederation, stated: “The approval of private placements by several property developers indicates that, following the introduction of the ‘Sixteen Measures’ for financial support, the financing environment for real estate companies has improved.”
According to relevant announcements, the investment projects financed by the aforementioned property developers are all closely tied to ensuring timely delivery of homes and safeguarding people’s livelihoods. For example, Rongsheng Development’s offering prospectus indicates that the company plans to issue no more than 1.304 billion shares to specific investors, with total proceeds expected to cap at RMB 3 billion. After deducting issuance expenses, the funds will be allocated to the Chengdu Shidai Tianfu, Changsha Jinxiu Xuefu, and Tangshan Xiding Fudiy projects, with planned allocations of RMB 1.2 billion, RMB 500 million, and RMB 400 million, respectively.
Rongsheng Development stated that the implementation of the company’s fundraising‑related investment projects will help it align with the national policy of “ensuring delivery of homes and safeguarding people’s livelihoods,” while expanding its operational scale and enhancing its profitability.
On the same day, Fuxing Shares also issued an announcement stating that its application to issue shares to specific investors has been accepted by the Shenzhen Stock Exchange. The company plans to raise no more than RMB 1.34 billion through a private placement, which will be used to fund its ongoing projects and replenish working capital.
Du Haomin, an analyst at Guojin Securities, stated that since November 2022, a series of supportive policies have been implemented, including the “third arrow” for property developers, special-purpose loans to ensure on-time delivery of homes, and reforms to the supervision of pre-sale funds. At the same time, measures aimed at improving the balance sheets of high-quality property developers continue to be rolled out. As a result, the financing environment for these leading developers is expected to become more favorable, and their financial positions are likely to improve.
According to a review, since November 2022, more than 30 property developers have announced plans for equity refinancing, primarily in the form of private placements. For example, Poly Development announced in December 2022 that it intends to raise up to RMB 12.5 billion through a non‑public offering; China Vanke announced in December 2022 that it plans to raise no more than RMB 6 billion via a non‑public offering; and China Merchants Shekou announced in February 2023 that it aims to raise up to RMB 8.5 billion through a non‑public offering.
Bai Wenxi, Chief Economist at IPG China, stated, “The growing number of property developers joining the financing ranks indicates that, amid increasingly robust policy support, market confidence and housing market activity are showing signs of recovery, and the financing environment for developers has improved markedly.”
“As real estate financing is liberalized, liquidity in the sector will improve markedly. With many property developers gradually resuming operations, industry‑wide mergers and acquisitions, as well as efforts to ensure timely project delivery and safeguard people’s livelihoods, will gain stronger momentum and be more effectively implemented. Consequently, the real estate industry is poised to accelerate its recovery and enter a virtuous cycle,” Bai Wenxi added.
Chen Sheng, director of the China Real Estate Data Research Institute, stated, “As real estate financing becomes more liberalized, we must continue to reinforce the development model of ensuring housing is for living in, not for speculation, and of promoting both rental and sales.”

Minister of Housing and Urban-Rural Development Ni Hong on the real estate sector: “We are fully confident that the market will stabilize and rebound.”
“At the beginning of the year, I said I was ‘very confident’ that the real estate market would stabilize and rebound; now, I can say I am ‘fully confident,’” Housing and Urban–Rural Development Minister Ni Hong stated on March 7 at the second “Ministerial Passage” session of the 2023 National People’s Congress and Chinese People’s Political Consultative Conference.
“Make a solid start while maintaining stability, and strive for progress,” he said. In 2023, housing and urban–rural development efforts will focus on three key areas: first, consolidating the sector’s role as a pillar; second, guarding against risks; and third, improving people’s livelihoods.
Foot traffic at the sales office has surged, and sales volume has improved markedly.
Where does confidence come from? Ni Hong summarized three key points.
First, both the supply and demand sides of the real estate market have undergone positive changes: the resumption rate of housing projects has risen significantly, foot traffic at sales offices has surged, and transaction volumes have improved markedly.
Second, in January and February this year, nationwide sales of both new and existing residential properties ended a 13-month streak of decline; housing prices in 70 major and medium-sized cities remained broadly stable; efforts to ensure timely delivery of pre-sold homes are progressing steadily; and market confidence is recovering.
Third, robust policies to support first-time home purchases and reasonable measures to assist second-home acquisitions have been introduced and are being implemented with tangible results; the commitment to prevent speculative real estate investment from re-entering the market and the principle of not supporting the purchase of a third or subsequent home are also being earnestly enforced across localities.
Strongly support both rigid and improvement‑type housing demand, and prevent sharp market fluctuations.
“Based on these three considerations, I am fully confident that the real estate market will stabilize and rebound,” said Ni Hong. “However, it is important to emphasize that the stabilization and recovery we seek must officely uphold the principle that ‘housing is for living in, not for speculation’; it must strongly support both essential and improvement‑related housing demand; it must prevent sharp market swings; and it must foster high‑quality development of the industry.”
Ni Hong noted that there is a widely cited characterization of the real estate sector, summarized as “456”: real estate‑related loans account for 40% of banks’ total lending; real estate‑related revenue makes up 50% of local governments’ overall fiscal capacity; and 60% of household wealth is allocated to housing.
“It can be said that the real estate sector is ‘like a single thread that sets the whole fabric in motion.’ To stabilize the real estate market, we must adhere to city‑specific, targeted policies—tailoring measures to each city—while vigorously supporting both first‑time homebuyers and those seeking to upgrade their housing. This will bolster market confidence, help the real estate market stabilize and rebound, and promote its steady, sound development,” said Ni Hong.
Ni Hong stated that efforts will be stepped up to increase the supply of affordable rental housing and develop long-term rental housing, with a particular focus on addressing the housing challenges faced by young people and new urban residents, enabling them to pursue a better life with greater freedom and confidence.
Preventing and Resolving the “Gray Rhino” Risks in the Real Estate Sector
Ni Hong also underscored the importance of risk prevention. He stated that it is essential to guard against and defuse the “gray rhino” risks in the real estate sector, ensuring they do not become intertwined with financial risks and local‑government debt risks to trigger systemic instability. The approach should focus on “addressing both ends while guiding the middle,” employing a targeted, precision‑driven strategy to mitigate these risks.
Specifically, on the one hand, we treat high-quality property developers equally, supporting both leading state-owned and reputable private developers to improve their balance sheets and meet their legitimate financing needs. On the other hand, we must address troubled developers: while helping them pursue self-rescue, we will also ensure strict compliance with laws and regulations, leaving no room for practices that harm the public interest and holding such entities accountable for their actions.
“We must also vigorously rectify the real estate market, foster a business environment characterized by honesty and trustworthiness and free from corruption, so that the public can buy homes and rent with confidence,” Ni Hong stated.

National Development and Reform Commission: Adopting multiple measures to ensure stable price levels.
At a press conference held by the State Council Information Office on March 6, the National Development and Reform Commission stated that it would implement a series of measures to ensure stable price levels.
The National Development and Reform Commission stated that, this year, domestic price dynamics continue to face certain uncertainties and instabilities due to multiple factors, including geopolitical tensions and imported inflation risks. However, it is important to note that China has enjoyed 19 consecutive years of grain harvests, with annual output consistently exceeding 650 million metric tons, making abundant grain production the most reliable anchor for maintaining stable prices. Meanwhile, hog production capacity remains adequate, commodity supplies are ample, energy security is robust, and the mechanisms for ensuring supply and stabilizing prices have been further strengthened.
Li Chunlin, Deputy Director of the National Development and Reform Commission, stated: “It can be said that the foundations for maintaining stable price levels are very solid, and we have both the confidence and the capability to achieve this year’s projected CPI target.”
The National Development and Reform Commission stated that it will further strengthen monitoring, forecasting, and early warning. It will closely track market developments in key bulk commodities and essential consumer goods both domestically and internationally, enhance analysis and assessment of supply‑demand dynamics and price trends, and promptly implement targeted regulatory measures. Additionally, it will reinforce efforts to ensure stable supply and prices of essential consumer goods, improve coordination between production and sales, and leverage reserve adjustments to safeguard market availability.
Li Chunlin, Deputy Director of the National Development and Reform Commission, stated: We will further strengthen efforts to ensure the stable supply and prices of energy and other bulk commodities. This includes stabilizing coal production, bolstering reserve‑building capacity, continuously tightening price‑control and regulatory measures for coal, and guiding coal prices to remain within an appropriate range. We will also intensify exploration and development of domestic oil, gas, and mineral resources, promote increased reserves and output, and enhance our ability to secure supplies. In addition, we will crack down rigorously on illegal and unlawful practices such as hoarding and price gouging.

The Three-Year Action Plan for the Development of the Wuhan Metropolitan Area Has Been Released.
Recently, the Office of the Wuhan Metropolitan Area Development Coordination Mechanism officially issued the “Three-Year Action Plan for the Development of the Wuhan Metropolitan Area (2023–2025)” (hereinafter referred to as the “Plan”). The Plan sets out that by 2025, the Wuhan Metropolitan Area aims to achieve a regional GDP of RMB 4 trillion, with an average annual growth rate of around 6.5%, a per capita regional GDP exceeding RMB 120,000, and an urbanization rate of the resident population reaching 78%. Furthermore, the functions of Wuhan as a national central city and a core hub for both domestic and international dual circulation will be further enhanced, enabling it to move up in the rankings among major cities nationwide and fully serve as the primary engine driving high-quality development at the provincial level and within the Yangtze River Midstream Urban Agglomeration.
According to the Plan, Wuhan–Ezhou–Huangshi–Huanggang will be developed into the core area of the Wuhan Metropolitan Circle, Xiaogan will be positioned as a key nodal city within the circle, and Xianning will be shaped into a natural‑ecological park city. Meanwhile, Xiantao, Tianmen, and Qianjiang are to achieve significant results in establishing demonstration zones for the synchronized advancement of industrialization, informatization, urbanization, and agricultural modernization. Coordinated efforts will be made to advance infrastructure development in railways, highways, waterway transport, and airports. By 2025, the goal is to fully realize one‑hour commuting within the Wuhan Metropolitan Circle, two‑hour accessibility across the Middle Yangtze River Urban Agglomeration, and three‑hour coverage of major cities nationwide.
The Plan calls for the Wuhan Metropolitan Area to leverage its concentration of science and technology innovation resources, strengthen collaborative innovation, and facilitate the free flow and efficient allocation of innovation factors. By 2025, it aims to establish a nationally influential center for scientific and technological innovation. Focusing on key industries such as optoelectronics information, new energy and intelligent connected vehicles, high-end equipment, life and health, and the Beidou system, the Plan seeks to promote synergistic linkages among these sectors and enhance the economic density of the central city. Additionally, it will encourage the orderly relocation of Wuhan’s general manufacturing industries to surrounding cities, gradually fostering an integrated industrial development pattern in which core supply chains are anchored in Wuhan, supporting industries are distributed throughout the metropolitan area, financing is concentrated in Wuhan, and investment is channeled into the broader metropolitan region.
The Plan also calls for fostering the mutual access and sharing of educational resources, seamless integration of social security systems, joint development and shared use of medical resources, integrated elderly‑care services, and coordinated cooperation in culture, sports, and tourism across the Wuhan Metropolitan Area, thereby continuously enhancing the quality of public service provision. By 2025, the public service systems in education, social insurance, national fitness, and healthcare will be further improved, ensuring that all citizens enjoy convenient, equitable, and standardized basic public services.

National Development and Reform Commission: Supports consumption in areas such as housing improvement, new-energy vehicles, and elderly care services.
On March 6, the State Council Information Office held a press conference on “Making Solid Progress in Promoting High-Quality Development and Laying a Strong Foundation for Fully Building a Modern Socialist Country.” At the conference, Li Chunlin, Deputy Director of the National Development and Reform Commission, stated that the government will support consumption in key areas such as housing improvement, new-energy vehicles, and elderly care services.
A question was raised: How should the current state of consumption in China be assessed? What adverse factors are constraining consumption, and what measures will the authorities implement to boost it?
In response, Li Chunlin stated that final consumption is a sustained driver of economic growth. Overall, China’s consumer market is showing a rapid recovery: interregional population mobility is increasing, cross‑province travel and tourism have surged, and sectors such as catering, culture, and entertainment are rebounding swiftly. Coupled with traditional long holidays like the Spring Festival and the Lantern Festival, consumer spending at the start of the year has gotten off to a strong start. Here are some figures: during this year’s Spring Festival, domestic tourism revenue and visitor numbers rose by RMB 375.8 billion and 308 million, up 30% and 23.1% year on year, respectively—recovering to 73% and 89% of the levels recorded in the same period of 2019. Nationwide revenues in consumption‑related industries grew by 12.2%, while online retail sales of physical goods increased by 14.5%. Judging from these consumption trends during the Spring Festival, China’s consumer sector has been accelerating its recovery since the beginning of the year. At present, several uncertainties that have been holding back consumption are gradually dissipating. As pent‑up demand is rapidly unleashed, key indicators in the consumption sector are expected to see a gradual uptick in the first half of the year. Looking ahead to the full year, consumption is poised to become the primary engine of economic growth, further reinforcing its fundamental role in driving the economy. This is our outlook for this year’s consumption landscape.
The Central Economic Work Conference emphasized placing the restoration and expansion of consumption in a more prominent position. As Director Zhao Chenxin just noted, last year’s Central Economic Work Conference underscored the principle of prioritizing stability while seeking progress within that stability—ensuring stable growth, stable employment, and stable prices. Consumption plays a crucial, foundational role in underpinning stable growth.
Li Chunlin pointed out that, going forward, we will comprehensively implement the spirit of the 20th National Congress of the Communist Party of China and the Central Economic Work Conference, and work to sustain the recovery and expansion of consumption, with a focus on four key areas:
First, we will adopt a multi-pronged approach to promote steady consumption growth. We have formulated and issued policy documents on restoring and expanding consumption, introducing practical and effective measures to stabilize major‑item spending, boost service‑sector consumption, expand rural consumption, and foster a secure and trustworthy consumer environment, thereby unlocking residents’ latent consumption potential.
Second, we must strengthen residents’ purchasing power. Purchasing power stems from employment and income; therefore, it is essential to innovate mechanisms that foster a virtuous cycle across the entire chain of employment, income distribution, and consumption. We should expand income sources for both urban and rural residents through multiple channels, ensure the stable supply and price stability of basic consumer goods, and enable households to enjoy steady incomes that allow them to consume with confidence and without undue concern.
Third, we will improve the consumer environment. We will further refine the institutional mechanisms for boosting consumption, develop policy documents aimed at fostering a secure and trustworthy consumer environment, strengthen the standards and quality management system, and enhance diversified mechanisms for resolving consumer disputes, including online dispute‑resolution platforms. By continuously optimizing the consumer landscape, we will ensure that the public feels more confident and motivated to spend.
Fourth, we will foster new growth drivers for consumption. We will vigorously promote green and emerging forms of consumption, support spending in key areas such as housing upgrades, new-energy vehicles, elderly care services, and education, healthcare, culture, public health, and sports, and encourage the development of new business models, formats, and consumption settings, thereby further invigorating the consumer market.
“In the new year, we have a wide array of policy tools at our disposal to address the headwinds constraining consumption. We are confident and capable of ensuring the effective implementation of this year’s measures to boost consumption, enabling it to make an even greater contribution to achieving GDP growth of around 5% for the full year,” said Li Chunlin.

Taxation
CPPCC Member from the Business Community: Tax Incentives Empower Manufacturing to Innovate, Upgrade, and Achieve High-Quality Development
The tax authorities visited several enterprises represented by National Committee members of the Chinese People’s Political Consultative Conference, gaining insights into their business performance and soliciting their views and suggestions on tax administration. The CPPCC members noted that, in recent years, the state has introduced a series of tax and fee‑support policies to help manufacturing offices overcome difficulties, foster innovation, and inject strong momentum into the sector’s high‑quality development.
National Committee Member Song Zhiping:
Tax cuts and tax deferrals provide a powerful boost to corporate R&D and innovation.
“We are deeply grateful to the tax authorities for their years of ‘heartwarming’ initiatives. They have consistently responded swiftly to our tax-related needs, precisely implemented tax and fee preferential policies, and provided tailored services, helping us overcome numerous practical challenges. Your support has strengthened our resolve and confidence in pursuing corporate development,” said Song Zhiping, a member of the National Committee of the Chinese People’s Political Consultative Conference and Chairman of Cornell Chemical Industry Co., Ltd., to Zhang Chengshu, a member of the Party Committee and Chief Economist of the Jilin Municipal Tax Service Bureau of the State Taxation Administration, during a visit.
Cornell Chemical Industry Co., Ltd. is a large-scale chemical manufacturing enterprise that has successively been recognized with numerous honors, including inclusion in the Top 500 Chinese Chemical Companies, designation as one of Jilin Province’s Top 100 Private Enterprises, recognition as an innovative technology enterprise in Jilin Province, and receipt of the Jilin Provincial Quality Award.
Speaking of tax‑policy support, Song Zhiping laid out a detailed breakdown: “In 2021, we benefited from tax incentives and reductions totaling over RMB 8 million; in 2022, we took advantage of deferred tax and fee payment policies worth more than RMB 10 million. Over the past two years, our company has faced cash‑flow constraints, leaving many ongoing projects stalled. The national measures to cut taxes, lower fees, and defer tax payments have helped ease our funding challenges, facilitated the resumption of work and production, and provided a powerful boost to our growth.”
National Committee Member Yan Jianwen:
Tax and fee incentives boost confidence among high-end equipment manufacturing enterprises.
“We are deeply grateful for the support of the tax authorities, which has strengthened our confidence to focus on research and maintain a robust growth trajectory,” said Yan Jianwen, a member of the National Committee of the Chinese People’s Political Consultative Conference and Chairman of Hefei Hefan Intelligent Manufacturing Co., Ltd., recently to Shen Guangji, First‑Level Inspector at the Anhui Provincial Tax Service Bureau of the State Taxation Administration, during a visit.
Located in the Hefei Economic and Technological Development Zone, Hefei Hefan Intelligent Manufacturing Co., Ltd. is China’s industrialization base for automated complete sets of technology and equipment for large-scale forging and pressing machinery, with a focus on developing numerous high-end systems. “In a fiercely competitive market, Hefan Intelligent has managed to stand out and help ‘major national strategic equipment’ soar, thanks to the competitive edge provided by technological innovation—something we owe in no small part to the support and assistance of the tax authorities,” said Yan Jianwen. “In terms of product R&D, the state has offered substantial policy incentives, and the tax authorities have delivered exceptionally attentive services, enabling us to devote human, material, and financial resources to technological development.” As a high-tech enterprise recognized as “specialized, refined, distinctive, and innovative,” Hefan Intelligent benefited from an aggregate R&D expense super‑deduction of RMB 23.17 million in 2021 and RMB 45 million in 2022.
During the visit, Shen Guangji stated that 2023 marks the 10th year of the “Spring Breeze Action for Convenient Tax Services,” under which a series of taxpayer-friendly measures have been introduced. Notably, the average processing time for routine export tax refunds (exemptions) has been further shortened, which will help Hefeng Intelligent save both time and costs in handling tax refunds and accelerate the international expansion of domestically produced equipment.
Li Lianzhu, a member of the National Committee of the Chinese People’s Political Consultative Conference:
Tax incentives—like a spring breeze—are helping furniture companies embrace digitalization.
“With a favorable business environment and the support of the tax authorities, private enterprises are even more motivated to pursue digital transformation and upgrading,” said Li Lianzhu, a member of the National Committee of the Chinese People’s Political Consultative Conference and founder of Foshan Weishang Furniture Manufacturing Co., Ltd., recently praising the quality of tax services.
From its inception, Weishang Furniture has leveraged the “informationization plus industrialization” innovation to establish an advanced manufacturing model that enables personalized, large-scale customization of entire homes’ furniture. In Li Lianzhu’s view, Weishang Furniture’s ability to continuously innovate and upgrade, and to achieve digital transformation, would have been impossible without the support of tax incentives. “Over the past three years, we have benefited from R&D expense super‑deductions totaling more than 260 million yuan and corporate income tax preferences for high‑tech enterprises exceeding 10 million yuan. These tangible tax benefits have helped us overcome challenges such as funding constraints and declining orders, bolstering our confidence in pursuing digital transformation,” said Li Lianzhu.
In recent years, the Foshan tax authorities have focused on addressing the pressing concerns and challenges faced by private enterprises during their development. They established the “Youth Service Station for Supporting Private Enterprise Development,” categorizing private offices into three tiers—mature, growing, and start-up—and providing tiered, category-specific one-stop services to resolve tax‑related issues. “As numerous private enterprises join forces to embrace digitalization, the tax authorities’ support has been as warm and reassuring as a spring breeze, enabling us to advance our digital transformation with greater confidence and steadiness,” said Li Lianzhu.

A “red envelope” of 2.46 trillion yuan has been delivered; suggestions and proposals are helping to refine tax and fee policies.
“To further invigorate the market, alleviate the financial pressures faced by enterprises, and boost their enthusiasm for investing in and building infrastructure, we recommend further relaxing the eligibility criteria for the value-added tax credit refund policy and expanding the scope of such refunds…” This was the proposal put forward by Xu Guanju, a deputy to the National People’s Congress and Chairman of Transfar Group Co., Ltd., at the Fifth Session of the 13th National People’s Congress, calling for appropriately easing the VAT credit refund requirements to support investment in logistics infrastructure.
“In general, highway‑based urban logistics hubs—serving as critical urban infrastructure—are primarily financed by private enterprises, with overall returns typically ranging from 6% to 8% and payback periods usually spanning 10 to 15 years,” stated Representative Xu Guanju in his proposal. He noted that investments often amounting to hundreds of millions or even billions of yuan impose substantial financial strain and investment risks on companies. Moreover, given the lengthy construction cycles and the absence of immediate revenue during the early stages, the resulting input VAT credit balances accumulate slowly. In the initial phase, these VAT credit balances can reach 4% or more of the total project investment, and even during the operational period they may still account for 2% to 3% of the total investment, tying up corporate capital and hindering normal business operations and growth.
Xu Guanju, on behalf of the committee, proposed that by refining and improving the system of deferred VAT refunds, we can effectively reduce enterprises’ financing costs, alleviate their financial constraints, encourage them to boost investment appetite, actively participate in social infrastructure development, and stimulate the dynamism and creativity of market entities, thereby supporting enterprise growth.
When the people have a call, the government responds.
To further invigorate market entities and help businesses overcome difficulties, China has continuously reformed its value-added tax (VAT) credit refund system in recent years—moving from scratch to a comprehensive framework, and refining it over time. From 2018 to 2021, a four‑step approach was implemented, resulting in a policy structure that “bases itself on universal refunds while tilting appropriately toward key sectors”: First, a one‑off VAT credit refund measure was piloted. In 2018, this measure was applied to advanced manufacturing industries such as equipment manufacturing, modern service sectors including R&D, and power grid enterprises. Second, a formal VAT credit refund system was established. Effective April 1, 2019, China introduced a universal VAT credit refund regime, under which all taxpayers meeting specified criteria—regardless of industry—could, in accordance with regulations, apply to the tax authorities for a refund of a certain proportion of their incremental VAT credit balances. Third, the scope of refunds for advanced manufacturing was expanded. Starting June 1, 2019, eligibility criteria for VAT credit refunds were relaxed for four advanced manufacturing sectors, including “specialized equipment manufacturing,” and the scale of refunds was increased, with full monthly refunds of incremental credit balances. Fourth, the range of industries eligible for advanced manufacturing refunds was broadened. Beginning April 1, 2021, five additional sectors, including “pharmaceutical manufacturing,” were added to the list of industries benefiting from the incremental VAT credit refund policy for advanced manufacturing.
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 measures combined tax and fee reductions, refunds, deferrals, and exemptions, with the large-scale refund of outstanding VAT credits serving as the centerpiece.
In accordance with the decisions and arrangements of the CPC Central Committee and the State Council, the Ministry of Finance and the State Taxation Administration issued policy documents, including the “Announcement of the Ministry of Finance and the State Taxation Administration on Further Intensifying the Implementation of the Value-Added Tax End-of-Period Credit Refund Policy” (No. 14 of 2022). Effective April 1, 2022, a large-scale credit refund policy was implemented for small and micro enterprises, as well as enterprises in six sectors—including manufacturing, transportation, warehousing, and postal services—providing full monthly refunds of incremental tax credits and one-time refunds of existing tax credits. To accelerate the implementation of these refunds, the deadlines for applying for existing‑credit refunds were advanced successively for medium‑sized and large enterprises. Subsequently, the policy was further strengthened: starting July 1, 2022, the scope of industries eligible for full tax‑credit refunds was expanded to include seven sectors, such as wholesale and retail trade.
In June 2022, the Department of Goods and Services Tax of the State Taxation Administration held a telephone conversation with Xu Guanju, during which it provided an overview of the establishment, optimization, and ongoing refinement of China’s input VAT credit refund system, as well as details on the large-scale implementation of such refunds in 2022, and briefed him on the status of handling his recommendations.
According to data released by the State Taxation Administration, in 2022, the cumulative amount of value-added tax credit refunds returned to taxpayers’ accounts reached RMB 2.46 trillion, more than 3.8 times the total volume of credit refunds processed for the entire year of 2021.
The large-scale value-added tax (VAT) credit refund policy has directly injected much-needed liquidity and revitalized a broad range of market entities, playing a pivotal role in helping businesses overcome difficulties, safeguarding market entities and employment, stabilizing the overall macroeconomic landscape, and promoting high-quality development. In 2022, the National Bureau of Statistics conducted three surveys on the effectiveness of the VAT credit refund policy among industrial enterprises; the results showed that companies that have benefited from this policy generally reported a markedly significant reduction in their tax burden.
“Effectively handling deputies’ and committee members’ proposals and suggestions is a crucial component of improving and elevating tax administration, a powerful measure for implementing tax and fee support policies, and conducive to fully leveraging the functions of taxation and advancing tax modernization in the new stage of development with high quality,” said a responsible official from the State Taxation Administration. In recent years, the Administration has consistently approached the work of handling such proposals and suggestions from a political perspective. On the one hand, it has closely integrated this work with the implementation of major decisions and deployments of the CPC Central Committee and the State Council, continuously strengthening its sense of responsibility and mission in serving the overall national interest. On the other hand, it has closely aligned this work with key tax‑related priorities, earnestly soliciting the views and recommendations of deputies and committee members, addressing the issues they have raised, and, at the same time, using the handling of these proposals as an opportunity to drive reform, thereby fully harnessing their role in promoting tax administration.
A relevant official from the State Taxation Administration stated that, going forward, the Administration will continue to refine processing procedures, innovate service delivery methods, and enhance the quality of handling, thereby effectively elevating the work of addressing suggestions and proposals to a new level. At the same time, it will fully incorporate and draw on the content of these suggestions and proposals, further ensuring tax and fee revenue is collected in strict accordance with laws and regulations, deepening reforms in tax collection and administration, rigorously implementing and fine-tuning all tax and fee support policies, and continuously optimizing the tax‑related business environment. In doing so, it will better respond to the people’s needs, align with their expectations, and fulfill their aspirations, while fully leveraging and expanding the role of taxation to better serve China’s distinctive path to modernization.

Qingdao: Innovative Convenience Measures Bring Warmth to Taxpayer Services
This year marks the 10th consecutive year that the national tax system has launched the “Spring Breeze Action for Convenient Tax Services.” The Qingdao Municipal Tax Service of the State Taxation Administration has once again taken up the mantle of reform and elevated its service standards, introducing a series of innovative measures to make tax administration more convenient. “This year’s taxpayer-friendly initiatives are truly novel, demonstrating the tax authorities’ sincere commitment and determination to further improve their services,” said Du Huiliang, a member of the CPPCC Committee of Licang District in Qingdao and president of the district’s Association of Small and Medium‑Sized Enterprises.
Adding convenience, smart tax services make filing more comfortable.
Focusing on bottlenecks, pain points, and challenges, Qingdao’s tax authorities have continued to make breakthroughs in enhancing the intelligence and convenience of tax filing and payment. In Shinan District, through resource integration, functional convergence, and talent pooling, the “Ma Li–May Wind Tax and Fee Service Studio” is working to build a new platform for taxpayer‑friendly services. Meanwhile, in Jiaozhou City, with optimized service‑window layouts, standardized business processes, and warmly attentive taxpayer support, the “three‑fold” approach to service is emerging as a new benchmark for measuring the quality and effectiveness of tax administration.
“The services have become increasingly attentive, and tax filing has grown ever easier, significantly saving businesses time and labor costs,” said Xing Hui, a deputy to the Qingdao Municipal People’s Congress and the legal representative of Qingdao Laote Beer Co., Ltd.
“Under this year’s ‘Spring Breeze Action for Convenient Tax Services,’ we will further innovate our service measures, provide comprehensive guidance to taxpayers and payers on conducting tax-related matters in a contactless manner, and transition from ‘physical counter’ services to ‘cloud-based counter’ services. We will also explore integrating ‘service‑inquiry coordination’ into taxpayer‑tax authority interactions, shifting from a ‘step-by-step sequential’ approach to answering and resolving issues to a ‘simultaneous parallel’ one,” said a responsible official from the Qingdao Municipal Tax Service Bureau.
Boosting Momentum: A Surge of Resumption of Work and Production
Though the spring chill lingers, the Wan Hui Phalaenopsis Orchid Industrial Park in Jiudian Town, Pingdu City, is warm and inviting. After being manually sorted, graded, and packaged, more than a hundred varieties of phalaenopsis orchids are shipped to countries and regions including Japan, the United States, and Russia. “In response to our needs as we expand into international markets, the tax authorities helped us identify several potential buyers, enabling us to sign contracts with multiple export offices,” said Xiao Shizhong, manager of the Wan Hui Phalaenopsis Orchid Industrial Park.
In Pingdu City, a major agricultural hub, the tax authorities have established an “agricultural‑related data service convenience store,” consolidating and aggregating over ten million internal records covering tax and fee services, invoice usage, collection and administration, risk prevention and control, and export tax rebates. This initiative strengthens and refines taxpayer‑tax authority coordination, helping to ensure the smooth circulation of industrial and supply chains.
Coincidentally, Qingdao Yibang Bioengineering Co., Ltd. also resolved its challenges in procuring raw materials with the assistance of the tax authorities. “We were at a critical stage in developing and refining our animal vaccine products, and we simply couldn’t afford any disruptions to our supply chain. Fortunately, the tax authorities stepped in to facilitate connections, helping us secure a partnership with a breeder farm and finalize a purchase‑sale agreement worth over ten million yuan,” said Du Shuying, the company’s finance director.
The resumption of work and production by enterprises is steadily advancing, and the implementation of major projects is also accelerating.
On the shores of Jiaozhou Bay, a hundred-billion-yuan‑scale chip‑display industry cluster—led by industry giants such as BOE and Foxconn—is beginning to take shape. Leveraging tax‑related big data, the tax authorities have conducted baseline surveys of key projects, refined a “dynamic tracking” project‑service mechanism, and rolled out a series of measures, including on‑site policy guidance, comprehensive follow‑up services, and rigorous accountability.
“The tax authorities have brought their services right to our doorstep, delivering tailored tax policies. We’re determined to step up and get to work!” said Wang Rui, the financial director of Qingdao BOE Optoelectronics Technology Co., Ltd.
Unleash vitality and blaze a new trail of openness.
As the whistle sounded long and loud, a China–Europe freight train laden with electric ovens, air-conditioning components, refrigerated containers, and other goods departed from the Qingdao Multimodal Transport Center of the SCO Demonstration Zone. “Specialized tax services are helping the China–Europe freight trains reach ever farther destinations,” said Zhang Peng, deputy general manager of the Qingdao branch of Shandong High-Speed Qilu Eurasian Railway Operation Co., Ltd.
Since the launch of this year’s “Spring Breeze Action for Convenient Tax Services,” the Qingdao tax authorities have introduced a series of measures to support China–Europe Railway Express operations, including establishing a regular liaison mechanism with the railway‑express operating companies, instituting a rotating system of tax experts serving as enterprise‑tax liaison officers, and implementing a “Tax Benefit Package” tailored for the China–Europe Railway Express.
“The tax authorities have included us on the ‘Tax Benefits List,’ and now we can schedule invoice collection by phone, process it in advance, and pick it up immediately—saving more than 80% of the time compared to before,” said Yan Yu, the financial director of Qingdao Zhongde Shangtong Trading Co., Ltd.
In light of the characteristics of cross-border barter trade—namely, the absence of cash flows and foreign‑exchange receipt information—the tax authorities, in coordination with customs, foreign‑exchange regulators, and other relevant agencies, have established mechanisms for sharing and jointly managing data on export and import goods. They are also exploring new post‑transaction regulatory models to continuously promote the transformation and upgrading of cross‑border trade.

Litigation & Arbitration
The Zhejiang High People’s Court has clarified matters concerning first-instance jurisdiction in foreign-related civil and commercial cases.
Recently, the official WeChat account of the Zhejiang Provincial High People’s Court published the “Notice on Matters Concerning the Jurisdiction of Basic People’s Courts in Our Province over First-Instance Foreign-related Civil and Commercial Cases.”
The Notice clarifies that the People’s Court of Changshan County is designated to exercise jurisdiction over first-instance foreign-related civil and commercial cases within the jurisdiction of the Quzhou Intermediate People’s Court that would otherwise fall under the jurisdiction of the People’s Courts of Kecheng District, Qujiang District, Longyou County, Jiangshan City, and Kaihua County. As for other jurisdictions, the primary-level people’s courts shall exercise jurisdiction over first-instance foreign-related civil and commercial cases in accordance with Article 1 of the Supreme People’s Court’s Provisions on Several Issues Concerning Jurisdiction over Foreign-Related Civil and Commercial Cases. The foregoing foreign-related civil and commercial cases do not include matrimonial and family disputes, inheritance disputes, labor disputes, personnel disputes, disputes over compensation for ecological and environmental damage, environmental public interest civil litigation, or maritime and admiralty disputes and intellectual property disputes.

The Jiangsu High People’s Court has released 20 typical cases of family disputes.
On March 7, the official WeChat account of the Jiangsu High People’s Court released a selection of typical cases involving family disputes from the 2021–2022 period.
This batch of typical cases comprises 20 matters, covering issues such as the return of funds transferred during a romantic relationship, the restitution of betrothal gifts, annulment of marriage, domestic violence, enforcement of personal protection orders, property attribution in marital disputes, the obligations of statutory guardians to provide support, maintenance obligations, derivative succession, and joint wills. By leveraging the guiding, exemplary, and leading roles of judicial rulings, these cases aim to tell compelling stories of the rule of law, promote the spirit of the rule of law, and foster a new ethos of socialist family civility—characterized by patriotism and familial love, mutual affection, striving for progress and goodness, and co‑building and sharing.

The Supreme People’s Court has issued 20 guidelines to provide judicial support for the comprehensive revitalization of Northeast China.
On March 6, the Supreme People’s Court website published the “Opinions on Providing Judicial Services and Guarantees for the Comprehensive Revitalization of Northeast China in the New Era.”
The “Opinions” comprise 20 measures across seven key areas, focusing on removing institutional and systemic barriers, optimizing the rule-of-law‑based business environment in Northeast China, fostering endogenous innovation‑driven momentum, and advancing the restructuring and upgrading of the industrial structure in this time‑honored industrial base. The document specifies that it will strengthen the review of the legality of policies involving state‑owned and financial enterprises that contain local protectionism, market segmentation, or designated transactions—practices that impede a unified market and fair competition—thereby stabilizing market expectations among both domestic and foreign investors in the region. It also calls for continued advancement of the “three‑in‑one” adjudication mechanism for intellectual property cases and full implementation of the punitive damages regime for infringement; furthermore, it seeks to deepen international judicial assistance and exchanges in the field of justice with neighboring countries such as Russia, North Korea, South Korea, and Japan.

“Hello Bike” Wins Unfair Competition Lawsuit Against “All-in-One Bike,” Awarded Nearly RMB 62 Million in Damages
Recently, the People’s Court of Xuhui District, Shanghai, issued a first-instance judgment in the unfair competition dispute between Hello Bike and Quan Neng Che. The court found that Quan Neng Che engaged in unfair competitive conduct by “other acts that obstruct or disrupt the normal operation of network products or services lawfully provided by other operators,” and ordered it to publish a public statement to mitigate the adverse effects, as well as to compensate the plaintiff for economic losses in the amount of RMB 61,401,763.68 and reasonable维权 (rights‑protection) expenses totaling RMB 106,000.
In this case, “Quanneng Che” amassed a large number of validly registered “Hellobike” accounts by employing deceptive registration methods—such as falsely registering through QR‑code scanning—and by inducing “Hellobike” users to breach their contracts by sharing their accounts. Furthermore, it used reverse engineering and packet‑sniffing techniques to decrypt the encrypted communication port data and file‑transfer protocols of the “Hellobike” app, thereby enabling its own accounts to remotely control the physical functions of unlocking and locking shared bicycles. It then allocated these accounts to its registered users on a paid‑basis via a time‑sharing big‑data algorithm, seeking to derive profits therefrom. The nature of the technical means employed by “Quanneng Che” has been duly established and conofficeed by a final criminal judgment. The court analyzed the impact of the “Quanneng Che” app on competition in the shared‑bicycle market across six dimensions—entry barriers, supply‑demand dynamics, pricing mechanisms, information systems, credit frameworks, and innovation—and concluded that the operation of the “Quanneng Che” app constituted an act of unfair competition, leading to the aforementioned ruling.

Effective March 7, all electronic service documents issued by courts nationwide will support online verification via the judicial blockchain.
The Supreme People’s Court issued a notice clarifying that, effective March 7, electronic service documents from more than 3,500 courts nationwide will all support online verification of their authenticity via the Internet Judicial Blockchain Platform (https://sfl.court.gov.cn) or the People’s Courts Online Service mini-program.
If a party doubts the authenticity of an electronically served document, or if, following the conclusion of the proceedings, enforcement based on such a document requires the involvement of a third-party institution that, in turn, questions the document’s validity, the parties may use the aforementioned platform to conduct online verification of the electronic document. This ensures the authenticity and legal authority of each electronically served document, thereby fundamentally addressing the issues of easy tampering and difficult verification inherent in electronic service.

China’s first case involving fines for parking shared bikes outside designated areas has been adjudicated: the “dispatch fee” is deemed an agreed-upon liability for breach of contract.
On March 9, the official WeChat account of the Shanghai Higher People’s Court published the ruling and analysis in China’s first case involving fines for parking shared bicycles outside designated areas. The court held that a user’s unauthorized parking of a shared bicycle outside the service zone constituted a serious breach of the service contract, violated the principle of good faith, and harmed the public interest, thereby dismissing the user’s claim for reimbursement of dispatch fees and compensation for transportation costs.
On November 30, 2019, Mr. Wu used a Hello Bike to ride to a service area and locked the bike outside the designated zone. He subsequently unlocked the same bike at that location, rode it back into the service area, and locked it there again. Because Mr. Wu parked the bike outside the service area, Shanghai Junzheng Network Technology Co., Ltd., the operator of Hello Bikes, charged him a dispatch fee of RMB 10. The relevant dispatch‑fee provision was set forth in the “Hello Bike Information Service Agreement,” which had been conofficeed by the user, Mr. Wu. Mr. Wu brought a lawsuit against Junzheng Company, seeking reimbursement of the RMB 10 dispatch fee, compensation for transportation expenses in the amount of RMB 20, and an apology.
The court held that the “Hello Bike Information Service Agreement” to which the user clicked to conoffice constitutes a valid contract between the user and Junzheng Company, and that the provision regarding dispatch fees falls within the scope of contractual liability for breach. The user’s actions—from unlocking the bike to ride it, to locking it and parking it—constitute the progression of the contract from its inception to its termination. Moreover, the subsequent act of scanning the code again to unlock and ride the bike after it has been locked represents a separate, independently separable contractual obligation. Accordingly, Mr. Wu’s conduct indeed amounted to a material violation of the terms of use, constituting a breach of contract, and the resulting contractual liability does not lapse simply because the user scanned the code once more to unlock the same bike and ride it back into the service area. In light of the foregoing, the court dismissed all of Mr. Wu’s claims.

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