JC Master Legal News Issue 1203

Key Takeaways for This Issue

The National Administration of Financial Regulation has released the 2025 Annual Report on Building a Law-Based Government.
On March 31, the National Administration of Financial Regulation released the “2025 Annual Report on Building a Law-Based Government,” outlining progress made in 2025 across key areas including financial regulatory legislation, law enforcement, risk resolution, consumer protection, and legal safeguards.
The Secretariat of the Cybersecurity Standards Committee has released the Industrial Enterprise Data Security Maturity Model.
On March 30, the Secretariat of the National Technical Committee for Cybersecurity Standardization released the “Cybersecurity Standards Practice Guide: Data Security Capability Maturity Model for Industrial Enterprises,” which proposes a data security capability maturity model tailored to industrial enterprises. This model is intended to guide industrial organizations in building their data security capabilities and conducting maturity-level assessments.
The Supreme People’s Court has released typical cases on combating domestic violence.
On March 30, the Supreme People’s Court held a press conference to release typical cases of domestic violence handled by the people’s courts.

Finance and Capital Markets

FINANCE &CAPITAL MARKETS

The People’s Bank of China has outlined the key priorities for financial stability in 2026.
Recently, the People’s Bank of China convened the 2026 Financial Stability Work Conference.
The meeting reviewed the work on financial stability in 2025 and outlined plans for 2026 to further improve the system for preventing and defusing systemic financial risks, strengthen risk monitoring, assessment, early warning, and timely corrective measures, and continue to curb the accumulation of new risks. Adhering to market‑based and rule‑of‑law principles, it will proactively yet prudently address financial risks in key sectors and systematically reduce existing risks. The meeting also called for deepening reforms of key financial institutions and expanding capital replenishment through multiple channels; enhancing the capacity to manage financial risks in an open economic environment; bolstering risk‑resolution resources and tools; and officely safeguarding the bottom line of preventing systemic financial risks.
The National Administration of Financial Regulation has released the 2025 Annual Report on Building a Law-Based Government.
On March 31, the National Administration of Financial Regulation released the “2025 Annual Report on Building a Law-Based Government,” outlining progress made in 2025 across key areas including financial regulatory legislation, law enforcement, risk resolution, consumer protection, and legal safeguards.
The report indicates that the National Administration of Financial Regulation has spearheaded amendments to the Banking Supervision and Administration Law, while continuing to advance legislative and regulatory reforms to the Insurance Law and the Regulations on Local Financial Supervision and Administration. By 2025, it plans to issue 10 departmental rules and 27 normative documents, and to refine institutional frameworks covering trust companies, money brokerage offices, product suitability management, information disclosure for asset management products, and regulatory oversight of consumer rights protection. In terms of regulatory enforcement and risk prevention, the report proposes delegating authority over certain high-frequency approval matters, streamlining administrative licensing procedures and enhancing the management of senior executive qualifications, implementing differentiated inspection regimes, strengthening穿透审查 (penetrative review) and the dual-penalty system, steadily advancing reform and risk mitigation efforts for small and medium-sized financial institutions, effectively managing financial risks associated with the real estate sector, and further improving the 12378 hotline, the financial consumer protection service platform, and mechanisms for diversified resolution of financial disputes.

Business and Corporations

COMMERCIAL & CORPORATE

The Secretariat of the Cybersecurity Standards Committee has released the Industrial Enterprise Data Security Maturity Model.
On March 30, the Secretariat of the National Technical Committee for Cybersecurity Standardization released the “Cybersecurity Standards Practice Guide: Data Security Capability Maturity Model for Industrial Enterprises,” which proposes a data security capability maturity model tailored to industrial enterprises. This model is intended to guide industrial organizations in building their data security capabilities and conducting maturity-level assessments.
This guideline, aligned with a typical industrial enterprise data security risk framework, covers five layers—from the L0 field‑device layer to the L4 corporate‑management layer—identifies 20 common categories of industrial‑enterprise data, analyzes primary data flow patterns, and outlines 11 prevalent data‑security risk issues. It also establishes end‑to‑end lifecycle security requirements for data collection, storage, use and processing, transmission, provision, disclosure, and destruction, along with overarching security process‑domain requirements covering security management policies, organizational structure, personnel safeguards, access control, system and device security, data‑supply‑chain security, data classification and grading, security risk assessment, log retention, monitoring and security auditing, threat detection and early warning, emergency response, and cross‑border data transfers.
The Ministry of Industry and Information Technology has issued the Measures for the Administration of Industrial Product Quality Laboratories.
On March 31, the Ministry of Industry and Information Technology issued the Measures for the Administration of Industrial Product Quality Control and Technical Evaluation Laboratories, setting forth provisions governing the establishment, accreditation, assessment and re‑evaluation, as well as supervisory spot checks of such laboratories.
The Measures stipulate that laboratories shall be established under the auspices of independently incorporated legal entities registered within China, and their accreditation shall be conducted in accordance with the principles of unified planning, rational layout, voluntary application, and support for the most promising candidates. A system of regular evaluation, dynamic adjustment, and a mechanism of both entry and exit will be implemented. The Ministry of Industry and Information Technology is responsible for overall planning, construction programming, approval of accreditation, evaluation and re‑examination, as well as supervisory spot checks. Local industrial and information technology authorities and central enterprise groups shall assume responsibilities for application recommendation, construction guidance, development support, and oversight and management. Meanwhile, the host institutions shall be accountable for the laboratory’s construction, operation, and day‑to‑day administration, ensuring the scientific rigor, impartiality, and authority of all related activities.
The National Medical Products Administration is seeking public input on matters related to the registration and filing of cosmetics.
On March 31, the Comprehensive Department of the National Medical Products Administration issued a public call for comments on the “Announcement on Matters Related to Cosmetic Registration and Filing (Draft for Comments),” with the deadline for submitting feedback set for April 30.
The draft for public comment proposes to streamline the registration and filing management of cosmetics, including measures such as encouraging the China‑first launch of new international cosmetic products, exempting eligible products from submitting certain toxicology test reports, shifting the responsibility for maintaining raw material safety information to be filed by enterprises for record‑keeping purposes, and discontinuing related services provided by the raw material safety information service platform. The document also proposes allowing products within the same brand that share a similar formulation to share portions of test evaluation reports and efficacy‑claim validation data, simplifying the documentation requirements for changes in manufacturing sites and domestic responsible parties, and broadening the scope of accepted efficacy‑claim validation methods to cover indications beyond spot‑removal and whitening, sun protection, and hair loss prevention.
The Ministry of Industry and Information Technology is soliciting public comments on the draft standard for unmanned aerial vehicle radio beacons.
On April 1, the Science and Technology Department of the Ministry of Industry and Information Technology published the draft plan for the development and revision of the mandatory national standard “Technical Specification for Wireless Beacons in Civil Unmanned Aircraft Systems Based on Dedicated Frequencies,” and invited public comments until April 8.
This project applies to the design, development, production, inspection, and operation of wireless beacon equipment for micro‑, light‑, small‑, medium‑, and large‑class civil unmanned aircraft systems. It proposes to establish requirements for information security, radio‑frequency technical specifications, electromagnetic compatibility, environmental adaptability, electrical safety, and other aspects, while also specifying the corresponding test methods. According to the project proposal, the standard is intended to harmonize the dedicated‑frequency wireless beacon transmission protocol, security requirements, radio‑frequency‑related technical specifications, and regulatory compliance guidelines.
The State Administration for Market Regulation is seeking public comments on the Measures for the Supervision and Administration of Inspection and Testing of Special Equipment.
On March 31, the Special Equipment Bureau of the State Administration for Market Regulation issued the “Measures for the Supervision and Administration of Inspection and Testing of Special Equipment (Draft for Public Comment),” inviting public input. The deadline for submitting feedback is April 30.
The draft for public comment applies to the supervision and administration of domestic inspection and testing institutions, personnel, and related activities involving special equipment. It stipulates that institutions must obtain approval and continuously meet requirements regarding personnel, equipment, premises, and management systems; inspection and testing personnel must pass assessments, obtain certification, register for practice, and be publicly disclosed, and may not practice at two or more institutions simultaneously. The document also elaborates on specific requirements for inspection and testing activities, specifying that inspection bodies should, in principle, independently carry out both supervisory inspections and periodic inspections, and that testing work may not be subcontracted. Furthermore, it mandates that any entity conducting business in a prefecture-level city for the first time must report to the local regulatory authority, and that periodic inspections require submission of a work plan 10 working days in advance and reporting of results within 7 working days after issuing the report. Penalties and measures to address dishonesty are prescribed for instances of falsified or seriously inaccurate reports, unauthorized practice by unregistered personnel, and the use of fraudulent reports.

Taxation

TAXATION

The State Taxation Administration has launched the 2026 “Spring Breeze Action for Convenient Tax Services.”
Recently, the State Taxation Administration issued the “Opinions on Launching the 2026 ‘Spring Breeze Action for Convenient Tax Services,’” introducing a package of 11 measures across four key areas to better serve businesses and taxpayers.
In terms of deepening digital empowerment, two measures have been introduced: upgrading intelligent filing and innovating the digital user experience. The tax authorities will continue to enhance the functionality of the new e‑tax bureau and its mobile app, expand the scope of smart pre‑filling applications, and refine the value-added tax return forms. To strengthen compliance guidance, three measures have been rolled out: consolidating the compliance foundation, standardizing enforcement practices, and improving credit management. The tax authorities will launch an intelligent reminder service for social insurance premium filings, sending timely notifications to employers before the filing deadline. Focusing on key areas and industries, they will intensify policy‑application guidance and further deepen coordination on cross‑regional tax and fee matters involving large enterprises. In addition, a list of minor tax administrative penalties that will not be imposed is being studied and formulated, with the aim of further harmonizing tax enforcement practices.
The tax authorities will, in accordance with the law and relevant regulations, intensify efforts to rectify the “invoice‑driven economy.”
On April 1, the State Taxation Administration held a press conference to announce the official launch of the 35th National Tax Publicity Month.
At a press conference, Dai Shiyou, Director-General of the Policy and Regulations Department of the State Taxation Administration, revealed that the 2025 individual income tax comprehensive annual settlement has been underway for one month. More than 70 million taxpayers have filed for tax refunds in accordance with the law, while over 5 million taxpayers have voluntarily filed supplementary tax returns as required by law. Overall, the process has proceeded smoothly and in an orderly manner. Dai Shiyou stated that, under the Individual Income Tax Law, resident individuals are required to pay individual income tax on all income derived from both within and outside China. Taxpayers with overseas income must file a return covering their total worldwide income by the end of June.
Wang Daoshu, Deputy Director of the State Taxation Administration, stated that, going forward, the tax authorities will, in accordance with their statutory duties and in compliance with laws and regulations, intensify efforts to address the “invoice‑driven economy,” strengthen risk monitoring and analysis, and focus on key areas such as cluster registration, priority industries, and related companies. They will refine risk‑monitoring indicators, enhance routine scanning and analytical capabilities, and, based on verification findings, swiftly iterate and upgrade their systems to continuously improve screening accuracy. Meanwhile, the submission of tax‑related information by internet platform enterprises for the first quarter of 2026 has officially commenced.
State Administration of Taxation: Announcement on Issues Related to the Assessment and Collection of Consumption Tax on Beer
To standardize tax collection and administration in the beer industry, the State Taxation Administration has issued the “Announcement on Relevant Issues Concerning the Assessment of Consumption Tax on Beer” (State Taxation Administration Announcement No. 8 of 2026).
Among these, for beer sold by production enterprises, the tax base for consumption tax shall be determined as the higher of the enterprise’s ex‑factory price and the external sales price charged to affiliated sales entities, and the per‑unit consumption tax rate shall be set accordingly. Both the ex‑factory price and the external sales price are weighted average prices calculated separately by brand and specification. “External sales” refers to the act of an affiliated sales entity selling beer products to entities or individuals with no affiliated relationship.

Litigation and Arbitration

LITIGATION & ARBITRATION

The Supreme People’s Court has released typical cases on combating domestic violence.
On March 30, the Supreme People’s Court held a press conference to release typical cases of domestic violence handled by the people’s courts.
This release features four typical cases, highlighting key principles in adjudicating domestic violence matters: First, it strengthens the enforceability of personal safety protection orders, providing that violations—such as repeated assault, harassment, or threats—shall be subject to admonishment, fines, or detention in accordance with the law, with criminal liability pursued in serious cases. Second, it clarifies that domestic violence is not limited to physical abuse such as beating; prolonged verbal abuse and defamation, restrictions on normal social interactions, impediments to accessing medical care, and economic control, when they exhibit characteristics of coercion and harm, may also be deemed domestic violence. Third, in proceedings involving divorce, damages, division of marital property, and custody of minor children, domestic violence may serve as a decisive factor in granting a divorce, awarding compensation, assigning a smaller share of property based on fault, or determining an adverse outcome for direct custody.
The Shanghai Higher People’s Court has released typical cases in commercial and maritime adjudication involving foreign parties and parties from Hong Kong, Macao, and Taiwan.
On March 31, 2026, the Shanghai Higher People’s Court released a selection of typical cases in foreign-related and Hong Kong, Macao, and Taiwan–related commercial and maritime adjudication (2023–2025).
This release features 15 bilingual Chinese–English cases, categorized as follows: First, the application of international conventions and customary practices, covering the primacy of the CISG, the liability limits under the Montreal Convention, the provisions on general average, and the applicability of the York–Antwerp Rules; second, the ascertainment and application of foreign law, including English case law, Indian road transport legislation, and California corporate law; third, jurisdiction in cross-border matters, clarifying the validity of a choice‑of‑court agreement designating the Shanghai Courts, the conditions for applying forum non conveniens, and the determination of malicious jurisdiction‑evasion; fourth, bilateral judicial assistance, addressing reciprocity in the recognition and enforcement of judgments from Singapore, Australia, and Russia, service‑of‑process disputes, and treaty interpretation; and fifth, mediation of cross-border disputes, encompassing comprehensive resolution of issues such as maritime transport, the dissolution of foreign‑invested enterprises, and exhibition‑and‑convention contracts.

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