JC Master Legal News Issue 1190

Key Takeaways for This Issue

The China Banking and Insurance Regulatory Commission has issued the Measures for the Supervision and Administration of Custody Business of Commercial Banks.
Recently, the National Administration of Financial Regulation issued the “Administrative Measures for the Supervision and Administration of Custody Business of Commercial Banks (Trial),” which will take effect on February 1, 2026.
The State Administration for Market Regulation has revised the Regulations on Prohibiting Monopoly Agreements, clarifying the market share threshold for vertical monopoly agreements.
Recently, the State Administration for Market Regulation issued the revised Regulations on Prohibiting Monopoly Agreements, clarifying the market share threshold and other conditions under which vertical monopoly agreements will not be prohibited.
Ministry of Commerce: Seize the opportunity presented by the Hainan Free Trade Port’s closed-loop operations to vigorously advance institutional openness.
At the Ministry of Commerce’s regular press conference, the spokesperson stated that the ministry will take the launch of operations at the Hainan Free Trade Port as an opportunity to vigorously advance institutional openness.
The Supreme People’s Court has revised the “Provisions on the Causes of Action in Civil Cases” for the third time.
On December 16, the Supreme People’s Court issued the “Decision on Amending the Provisions on the Causes of Action in Civil Cases,” which will take effect on January 1, 2026.

Finance & Capital Markets

The China Banking and Insurance Regulatory Commission has issued the Measures for the Supervision and Administration of Custody Business of Commercial Banks.
Recently, the National Administration of Financial Regulation issued the “Administrative Measures for the Supervision and Administration of Custody Business of Commercial Banks (Trial),” which will take effect on February 1, 2026.
The Measures comprise five chapters and 49 articles, clearly defining the scope of commercial banks’ custody business, their responsibilities, and prohibited conduct. They require that the assets of custodied products be kept separate from a bank’s own assets and those of other products, and prohibit providing guarantees for such products, advancing funds, or participating in investment decision‑making. The regulations also mandate that custody operations establish sound governance frameworks, risk management systems, information system segregation, and robust standards for client qualification and product admission, while strengthening data protection and information disclosure. Any violations of these requirements may result in regulatory measures, including orders to make rectifications within a specified timeframe and suspension of relevant business activities.
The Standing Committee of the National People’s Congress plans to deliberate several important draft laws, including the Law on State-Owned Assets.
On December 15, the 56th Chairpersons’ Meeting of the Standing Committee of the 14th National People’s Congress was held in Beijing, deciding to convene the 19th Meeting of the Standing Committee of the 14th National People’s Congress in Beijing from December 22 to 27.
The meeting recommended that the 19th session deliberate on several important draft laws, including the draft Ecological and Environmental Code, the draft Law on Promoting Ethnic Unity and Progress, the draft National Development Planning Law, the draft amendment to the Fisheries Law, the draft Law on the Safety of Hazardous Chemicals, the draft amendment to the Civil Aviation Law, the draft amendment to the Law on the Standard Spoken and Written Chinese Language, and the draft amendment to the Foreign Trade Law. It was also proposed to submit for deliberation by the Standing Committee of the National People’s Congress the draft State‑Owned Assets Law, the draft Law on Early Childhood Care Services, the draft Law on Antarctic Activities and Environmental Protection, the draft amendment to the Banking Supervision and Administration Law, the draft amendment to the Trademark Law, as well as a draft interpretation of certain provisions of the Criminal Procedure Law, together with reports on the implementation of the central budget, the allocation of fiscal funds, the commercialization of scientific and technological achievements, the integrated development of urban and rural areas, and the protection of the rights and interests of those in flexible employment.

Commercial & Corporate

The Ministry of Industry and Information Technology has publicly announced the draft versions of seven mandatory national standards for automobiles and related equipment.
On December 16, the Science and Technology Department of the Ministry of Industry and Information Technology issued a public notice soliciting comments on seven draft mandatory national standards, including “Safety Technical Requirements for Automotive Door Handles,” as well as a draft foreign-language version of the mandatory national standard “Safety Requirements for Electric Vehicles.” The deadline for submitting comments is December 23, 2025.
This public notice covers standard revisions pertaining to automotive door handle safety requirements, explosion‑proof technical specifications for equipment used in explosive atmospheres, safety technical conditions for rolling mills, safety technical specifications for rotating electrical machines, as well as amendment sheets for standards on vehicle software upgrades, whole‑vehicle information security, and frontal‑impact occupant protection. The main content addresses technical requirements, test methods, scope of application, effective dates, type‑approval criteria, and clause adjustments; additionally, certain standards introduce new safety‑protection technical requirements.
The Ministry of Commerce has released data on the development of China’s e-commerce sector for January–November 2025.
On December 19, an official from the E‑Commerce Department of the Ministry of Commerce presented an overview of China’s e‑commerce development from January to November 2025.
From January to November, nationwide online retail sales grew by 9.1%, with smart wearables and intelligent robots expanding by 22.1% and 19.4%, respectively, while online services consumption increased by 21.7%. Express delivery volume surpassed 180 billion parcels. Industrial e‑commerce initiatives facilitated nearly 450 business‑to‑business matchmaking events, rural online retail sales rose by 9.8%, and the transaction values of textiles and pharmaceuticals expanded by 6.6% and 3.5%, respectively. The average R&D intensity of major e‑commerce platforms reached 8.3%, with cloud computing and big data service revenues up 13.4% and technology service revenues up 12.1%. Retail sales of imported goods on key monitored platforms increased by 5.6%.
The State Administration for Market Regulation has revised the Regulations on Prohibiting Monopoly Agreements, clarifying the market share threshold for vertical monopoly agreements.
Recently, the State Administration for Market Regulation issued the revised Regulations on Prohibiting Monopoly Agreements, clarifying the market share threshold and other conditions under which vertical monopoly agreements will not be prohibited.
Article 17 of the revised Regulations clarifies that vertical agreements that fix or cap resale prices shall not be prohibited if, during the term of the agreement, both the undertakings involved and their respective counterparties have a market share of less than 5%, and the turnover attributable to the goods covered by the agreement is below RMB 100 million. For other types of vertical agreements, the relevant market‑share threshold is set at 15%. Where multiple counterparties are involved, their market shares and turnovers must be aggregated for calculation purposes. Article 18 further specifies the procedures and documentation requirements for the burden of proof borne by undertakings, while Article 19 provides that, where an agreement meets the prescribed criteria, no case shall be initiated; if a case has already been opened, the investigation shall be terminated. However, this exemption from prohibition shall not apply if there is evidence demonstrating that the agreement has the effect of excluding or restricting competition.

Taxation TAXATATION

Ministry of Commerce: Seize the opportunity presented by the Hainan Free Trade Port’s closed-loop operations to vigorously advance institutional openness.
At the Ministry of Commerce’s regular press conference, the spokesperson stated that the ministry will take the launch of operations at the Hainan Free Trade Port as an opportunity to vigorously advance institutional openness.
A spokesperson for the Ministry of Commerce stated that on December 18, the Hainan Free Trade Port will commence its closed‑border operations. The Ministry is making comprehensive preparations to ensure smooth implementation, leveraging high‑level opening-up to advance the construction of the Hainan Free Trade Port to a high standard. Moving forward, the Ministry will seize this opportunity to vigorously promote institutional openness, striving to transform the Hainan Free Trade Port into a key gateway that leads China’s new‑era opening-up. It will also work to seamlessly align trade‑management policies with measures such as “zero tariffs” and duty‑free treatment for value‑added processing, fostering synergy and fully unlocking the benefits of opening-up.

Litigation & Arbitration

The Supreme People’s Court has released the fourth batch of typical civil cases that promote the core socialist values.
On December 16, the Supreme People’s Court released the fourth batch of typical civil cases in which people’s courts have vigorously promoted the core socialist values.
This batch of cases comprises five matters, covering areas such as family‑oriented civility, workplace civility, marital and romantic‑relationship civility, and travel‑related civility. Through these cases, the Supreme People’s Court has clarified that: a parent’s act of renouncing an inheritance in order to avoid paying child support is invalid; an employer that unilaterally revokes a job offer after issuing it must bear liability for damages; if an employee engages in workplace sexual harassment, the employer may lawfully terminate the employment relationship; any substantial sums transferred from a romantic partner that were obtained by concealing one’s marital status must be returned in accordance with the law; and, where an individual trips and is injured while looking down at their phone in a public space, the operator or manager of that space bears no liability so long as they are not at fault.
The Supreme People’s Court has revised the “Provisions on the Causes of Action in Civil Cases” for the third time.
On December 16, the Supreme People’s Court issued the “Decision on Amending the Provisions on the Causes of Action in Civil Cases,” which will take effect on January 1, 2026.
This revision introduces a new first-level cause of action, “Disputes over Data and Virtual Property in Cyberspace,” and further refines causes of action related to intellectual property, competition, maritime and admiralty law, rural collective economic organizations, and employment in new forms of work, increasing the total number of causes of action from 929 to 1,055. The range of case types that lawyers who are residents of Hong Kong, Macao, and Taiwan may represent has been further expanded. These adjustments to the system of causes of action will facilitate civil litigation management and judicial statistics in areas such as corporate data, virtual property in cyberspace, intellectual property, competition, corporate law, and environmental and resource matters.
The Supreme People’s Court has released the annual report “China Maritime Adjudication (2022–2024).”
On December 18, the Supreme People’s Court released “China Maritime Adjudication (2022–2024).”
The report indicates that, from 2022 to 2024, the three-tiered maritime adjudication system nationwide accepted 98,726 maritime cases, concluded 97,140, handled 6,823 foreign-related cases, and processed 1,226 cases involving Hong Kong, China; Macao, China; and Taiwan, China. Over the three-year period, a total of 2,592 vessels were detained, and 1,376 were auctioned. The report underscores efforts to refine the maritime legal framework, the publication of 33 landmark cases, participation in the formulation of international rules, and the strengthening of a one-stop, multi‑channel dispute‑resolution mechanism for foreign‑related maritime disputes, thereby enhancing capacity for international dispute settlement.
The Supreme People’s Court has issued its latest clarifications on judicial review of arbitration.
On December 18, the Supreme People’s Court released “Selected Q&A from the Legal Answers Website (Batch No. 34) — Special Topic on Judicial Review of Arbitration (Batch No. 2).”
The Supreme People’s Court has clarified through its Q&A that: 1. Where a party’s application to set aside an arbitral award has been rejected, the court will not accept a subsequent application based on different grounds, unless new evidence demonstrates that the award was rendered on the basis of falsified evidence or that the arbitrator engaged in unlawful conduct. 2. In enforcement proceedings, when an application for non-enforcement of an arbitral award is filed, the court should refrain from ordering the arbitral tribunal to conduct a new arbitration. 3. If an arbitrator fails to meet the “three‑eight‑two‑high” criteria, such failure constitutes a procedural violation and may justify setting aside the award; however, if the parties were aware of this deficiency and did not raise any objection, the request will not be upheld. 4. In the context of contract assignment, the judicial interpretations governing the binding effect of litigation jurisdiction agreements and arbitration agreements on the assignee shall apply separately.

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