JC Master Legal News Issue 1187

Key Takeaways for This Issue

The Ministry of Finance and the China Securities Regulatory Commission have launched the process of adding to the list of audit offices for H-share companies.
Recently, the General Office of the Ministry of Finance and the General Office of the China Securities Regulatory Commission jointly issued the “Notice on Conducting the Supplemental Listing Process for Accounting Offices Engaged in Auditing H‑Share Enterprises,” with a submission deadline of December 10, 2025.
The State Administration for Market Regulation has issued the “Several Measures to Promote the Development and Growth of the Private Sector through Metrology.”
On November 24, the General Office of the State Administration for Market Regulation issued the “Notice on the Issuance of Several Measures to Promote the Development and Growth of the Private Sector through Metrology.”
The State Council Executive Meeting reviewed the draft amendment to the Certified Public Accountant Law.
On November 27, the State Council held an executive meeting to hear a report on the comprehensive inspection of high-quality development, make arrangements for advancing provincial-level pooling of basic medical insurance, deliberate and adopt the Draft Regulations on Promoting National Reading, and discuss the Draft Amendment to the Certified Public Accountants Law of the People’s Republic of China.
The Supreme People’s Court has issued an announcement on the integration and upgrade of its electronic litigation service platform.
On November 27, the Supreme People’s Court issued an announcement on the integration and upgrade of the electronic litigation service platform, stating that a system switchover will take place at 6:00 p.m. on November 28, 2025, and that the nationwide unified electronic litigation service platform will be officially launched at 8:00 a.m. on December 1, 2025.

Finance & Capital Markets

The Ministry of Finance and the China Securities Regulatory Commission have launched the process of adding to the list of audit offices for H-share companies.
Recently, the General Office of the Ministry of Finance and the General Office of the China Securities Regulatory Commission jointly issued the “Notice on Conducting the Supplemental Listing Process for Accounting Offices Engaged in Auditing H‑Share Enterprises,” with a submission deadline of December 10, 2025.
The notice clarifies that eligible mainland accounting offices may voluntarily apply to be added to the supplementary list, with a recommendation to include two offices in the existing roster of ten. Application requirements include annual revenue of no less than RMB 1.5 billion for 2024, a minimum of 800 certified public accountants, and compliance with Hong Kong member office qualifications, among others. Priority will be given to offices with advanced information technology capabilities, strong capacity to assume professional liability risks, and substantial experience in conducting audits in Hong Kong. Application materials must be submitted to the Department of Accounting of the Ministry of Finance. The committee will conduct a preliminary review, public announcement, on-site inspections, and a comprehensive evaluation. Following the publication of the list, selected offices will be permitted to undertake audit engagements for H‑share issuers, provided they continue to meet the relevant regulatory requirements. The Ministry of Finance and the China Securities Regulatory Commission will conduct periodic assessments and may revoke a office’s eligibility for recommendation.

Commercial & Corporate

The State Administration for Market Regulation has issued the “Several Measures to Promote the Development and Growth of the Private Sector through Metrology.”
On November 24, the General Office of the State Administration for Market Regulation issued the “Notice on the Issuance of Several Measures to Promote the Development and Growth of the Private Sector through Metrology.”
The measures include: optimizing administrative approval services for metrology and shortening the time required for instrument verification and calibration; streamlining the type‑approval process; establishing a list of metrological needs for private enterprises and a rapid response mechanism; supporting private offices in undertaking metrology‑related scientific and technological innovation projects and participating in key initiatives; opening up and sharing metrology research facilities and data resources; encouraging participation in the development of industrial metrology testing centers and providing digital solutions; promoting energy‑ and carbon‑metering services to support green and low‑carbon development; advancing the international outreach of metrology and implementing mutual recognition of international certificates; and strengthening the training of metrology professionals while facilitating clear career‑development pathways.
The National Health Commission has publicly announced the administrative inspection items involving enterprises and their maximum frequency.
On November 24, the National Health Commission released the “Public Notice on Administrative Inspection Items Involving Enterprises and Their Maximum Frequency.”
The public notice clarifies that, for supervisory inspections of activities involving human genetic resources and related activities in pathogenic microorganism laboratories, the annual cumulative number of inspections shall, in principle, not exceed two. However, if administrative inspections are deemed necessary based on leads such as complaints, referrals, or data monitoring, or if an inspection is conducted at the request of the entity being inspected, the frequency cap shall not apply.
The State Administration for Market Regulation convened the fifth Enterprise Fair Competition Symposium of 2025.
On November 27, the State Administration for Market Regulation convened the fifth Enterprise Fair Competition Symposium of 2025, inviting foreign-invested enterprises including Samsung, BMW, Johnson & Johnson, Bayer, Charoen Pokphand, Procter & Gamble, and IKEA to attend and share their views and suggestions.
The meeting highlighted the State Administration for Market Regulation’s efforts to strengthen antitrust oversight and enforcement, deepen institutional openness in the competition field, and enhance fair‑competition governance. The Administration stated that it will further intensify antitrust enforcement in key sectors, bolster fair‑competition reviews and merger control examinations, remove bottlenecks hindering the development of a unified national market, foster a business environment that is market‑oriented, rule‑of‑law based, and internationally competitive, and stimulate the dynamism of market entities.

Taxation

The Supreme People’s Court has released typical cases of crimes endangering tax collection and administration.
Recently, the Supreme People’s Court released typical cases of criminal offenses that endanger tax collection and administration, punished in accordance with the law.
The document selects eight typical cases, covering such criminal offenses as tax evasion, evasion of tax collection, fraudulent acquisition of export tax rebates, and the issuance and illegal sale of special value-added tax invoices. Key issues include: using falsely issued special VAT invoices to offset taxes and evade taxation; concealing income through “yin-yang contracts” to avoid tax liability; maliciously transferring assets to evade tax collection; engaging in circular import‑export transactions to fraudulently obtain export tax rebates; reselling invoices via online platforms; issuing false invoices for profit; employing the “payment‑and‑invoice‑matching” scheme to defraud taxes; and falsely declaring product names to illicitly secure export tax rebates. Each case adheres to the principle of unity between subjective and objective elements, distinguishes tax evasion from tax fraud in accordance with the law, and underscores the need for stringent enforcement against tax‑related violations in the platform economy, thereby safeguarding the order of tax administration.
The State Council Executive Meeting reviewed the draft amendment to the Certified Public Accountant Law.
On November 27, the State Council held an executive meeting to hear a report on the comprehensive inspection of high-quality development, make arrangements for advancing provincial-level pooling of basic medical insurance, deliberate and adopt the Draft Regulations on Promoting National Reading, and discuss the Draft Amendment to the Certified Public Accountants Law of the People’s Republic of China.
The meeting called for advancing provincial-level pooling of basic medical insurance, rationally determining the fund management model, enhancing the efficiency of fund utilization, coordinating the development of a tiered diagnosis and treatment system, and improving the mechanisms for medical insurance payments and service pricing. The meeting also approved in principle the draft amendment to the Certified Public Accountant Law, strengthening legal constraints, reinforcing industry oversight and financial‑accounting supervision, rigorously investigating illegal and non‑compliant conduct, promoting CPAs’ lawful fulfillment of their duties, safeguarding the order of the market economy, and protecting investors’ rights and interests.

Litigation & Arbitration

The Supreme People’s Court has issued an announcement on the integration and upgrade of its electronic litigation service platform.
On November 27, the Supreme People’s Court issued an announcement on the integration and upgrade of the electronic litigation service platform, stating that a system switchover will take place at 6:00 p.m. on November 28, 2025, and that the nationwide unified electronic litigation service platform will be officially launched at 8:00 a.m. on December 1, 2025.
The announcement clarifies that several existing litigation service platforms, including those under the Supreme People’s Court, will be integrated and upgraded, with services migrating to the “People’s Courts Online Service Website” and the “National Version of the People’s Courts Online Service” WeChat mini‑program. The new platform consolidates functions such as case filing, mediation, enforcement, petition handling, and property preservation, enabling one‑stop online processing. Users must register and verify their identity upon first login; any pending matters from the old system should be submitted promptly, and cases that were previously unsuccessful or returned must be resubmitted on the new platform. In the event of disruptions caused by the system transition, users may proceed offline or by mail; for inquiries, please call the 12368 service hotline.
The Nanjing Intermediate People’s Court has released typical cases of judicial protection of intellectual property rights in the high-tech field involving foreign parties and Hong Kong, Macao, and Taiwan.
Recently, the Nanjing Intermediate People’s Court released five landmark cases on judicial protection of intellectual property in cross-border matters, as well as in relation to China’s Hong Kong, Macao, and Taiwan regions and the high-tech sector, covering key areas of intelligent manufacturing such as trade secrets, biopharmaceuticals, and standard‑essential patents.
The key cases include: First, ensuring equal protection of trade secrets held by foreign-invested enterprises and ordering the infringers to jointly pay RMB 5 million in damages; Second, streamlining the evidentiary burden on invention patent holders through specialized adjudication, finding infringement and awarding RMB 600,000 in damages; Third, dismissing, in accordance with the law, an abusive “going‑public ambush” lawsuit, thereby safeguarding fair competition and the company’s listing process; Fourth, conducting a comprehensive mediation in a standard‑essential patent dispute, leading a semiconductor office to enter into a patent licensing agreement; Fifth, providing robust judicial protection during the trademark registration grace period for the goodwill of unregistered well‑known trademarks, ordering cessation of infringement and awarding RMB 1.5 million in damages. These rulings clarify standards for identifying trade secrets, allocating the burden of proof to patent holders, preventing vexatious litigation, governing standard‑essential patent licensing, and protecting well‑known trademarks, thus offering judicial guidance to support corporate innovation, market competition, and intellectual property compliance.
The Supreme People’s Procuratorate has released six typical cases of public interest litigation on the protection of minors.
Recently, the Supreme People’s Procuratorate released typical cases of public-interest litigation for the protection of minors, covering six administrative public-interest litigation cases handled by procuratorial organs in Beijing, Jiangsu Province, the Ningxia Hui Autonomous Region, Henan Province, Fujian Province, Chongqing Municipality, and other localities.
The cases involve measures to address issues such as movie‑theater discounts for minors, the regulation of “children’s lottery” outlets near schools, the elimination of safety hazards associated with hazardous chemicals in educational institutions, the control of invasive alien species, the oversight of illegal rental of motor vehicles to minors, and the protection of minors’ right to safe travel in mountainous and ethnic minority areas. Through mechanisms including prosecutorial recommendations, consultations, public hearings, and big‑data analytics, procuratorial organs at all levels have urged administrative authorities to fulfill their duties, promoted the implementation of relevant policies, advanced sector‑specific governance, and established long‑term institutional safeguards, thereby effectively safeguarding the legitimate rights and interests of minors and the public interest.
The Supreme People’s Court has clarified the criteria for determining whether information posted on WeChat Moments constitutes prior art or a prior design.
Recently, the Intellectual Property Court of the Supreme People’s Court issued its second-instance judgment in administrative dispute case No. (2023) Sup. Ct. Zhi Xing Zhong 1229 concerning the invalidation of a design patent, clarifying the criteria for determining whether information posted on WeChat Moments constitutes prior art or a prior design.
The second-instance judgment held that, in determining whether information posted on WeChat Moments constitutes prior art or a prior design, all relevant factors—including the information’s dissemination mechanism, content, manner of publication, timing of posting, and intended use—must be taken into account, with the decisive criterion being whether, as of the patent application date, such information was actually accessible to the public at large. The mere fact that it was visible only to a limited circle of friends is insufficient to establish public disclosure. The burden of proof rests with the party seeking invalidation, which must demonstrate that the information was in fact publicly disclosed or primarily used for commercial purposes. By contrast, the patentee is not required to prove that the information was not publicly disclosed, unless the publisher has a conflict of interest with the patentee.

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