JC Master Legal News Issue 1181

Key Takeaways for This Issue

The People’s Bank of China has released financial statistics for the first three quarters of 2025.
On October 15, the People’s Bank of China released its financial statistics report for the first three quarters of 2025. The report covers key indicators including the total social financing, money supply, deposits and loans, interest rates, foreign exchange reserves, and cross-border RMB settlement.
The General Administration of Customs has issued new regulations on the registration and management of overseas food-producing enterprises for import.
On October 14, the General Administration of Customs promulgated the Regulations of the People’s Republic of China on the Registration and Administration of Foreign Manufacturers of Imported Food, which will take effect on June 1, 2026, and hereby repeal Order No. 248 of 2021.
The Ministry of Justice has released the second batch of typical cases from the special campaign to standardize administrative law enforcement involving enterprises.
On October 13, the Ministry of Justice released the second batch of typical cases from its special campaign to standardize administrative law enforcement involving enterprises, comprising a total of eight cases and focusing on addressing the issues of “arbitrary inspections” and “unjustified fines.”

Finance & Capital Markets

The People’s Bank of China has released financial statistics for the first three quarters of 2025.
On October 15, the People’s Bank of China released its financial statistics report for the first three quarters of 2025. The report covers key indicators including the total social financing, money supply, deposits and loans, interest rates, foreign exchange reserves, and cross-border RMB settlement.
As of the end of September, the outstanding balance of social financing stood at RMB 437.08 trillion, up 8.7% year on year; cumulative new financing for the first three quarters totaled RMB 30.09 trillion. The broad money supply (M2) reached RMB 335.38 trillion, an increase of 8.4% year on year. RMB deposits amounted to RMB 324.94 trillion, up 8% year on year, with a rise of RMB 22.71 trillion in the first three quarters. RMB loans totaled RMB 270.39 trillion, up 6.6% year on year, adding RMB 14.75 trillion over the same period. In September, the weighted average rate on interbank lending was 1.45%, while the weighted average rate on repurchase agreements with collateral was 1.46%. Foreign exchange reserves stood at US$3.34 trillion. During the first three quarters, cross-border RMB settlement under the current account reached RMB 13.06 trillion, and direct investment settlement totaled RMB 6.04 trillion.
Beijing has released an implementation plan to accelerate the development of a science-and‑technology‑finance system for the period 2025–2027.
Recently, eight departments, including the Beijing Municipal Science and Technology Commission and the Zhongguancun Science Park Administrative Committee, jointly issued the “Notice on the Issuance of the Implementation Plan of Beijing for Accelerating the Development of a Science-and-Technology-Finance System to Strongly Support High-Level Scientific and Technological Self-Reliance and Self-Strengthening (2025–2027).”
The plan sets a target to exceed RMB 1 trillion in the total scale of newly established funds in the science and technology innovation sector by the end of 2027, with outstanding balances of science and technology loans surpassing RMB 5.5 trillion. Key measures include attracting national-level funds to establish operations in Beijing, supporting financial asset investment offices and long-term capital entities in expanding equity investments, improving exit channels for venture capital, promoting re-lending programs for technological innovation and technological upgrading, refining evaluation models for technology‑based enterprises, diversifying science and technology credit products, advancing specialized services in science and technology finance, facilitating the listing of high‑quality technology offices and their issuance of bonds and REITs, innovating science and technology insurance products, leveraging the guiding role of fiscal funds, enhancing cross‑border capital facilitation, fostering open cooperation in science and technology finance, and improving monitoring and statistical mechanisms.

Commercial & Corporate

The General Administration of Customs has issued new regulations on the registration and management of overseas food-producing enterprises for import.
On October 14, the General Administration of Customs promulgated the Regulations of the People’s Republic of China on the Registration and Administration of Foreign Manufacturers of Imported Food, which will take effect on June 1, 2026, and hereby repeal Order No. 248 of 2021.
The new regulations apply to overseas production, processing, and storage enterprises that export food to China (excluding food additives and related products). Such enterprises must be registered with the General Administration of Customs; the registration is valid for five years and is automatically renewed upon expiration. Registration requires submission of enterprise information, identification documents, and a commitment statement; for certain food categories, endorsement from the competent authority is also required. The General Administration of Customs may adjust management requirements based on risk assessments and implement categorized management and list‑based registration. Specific provisions govern changes to registration information, as well as cancellation, revocation, suspension, and reinstatement of registration. Registered enterprises must continuously comply with the applicable requirements; violations will result in cancellation or revocation of their registration.
Seven departments have issued an implementation plan to further promote the innovative development of service-oriented manufacturing.
Recently, the Ministry of Industry and Information Technology and six other departments jointly issued the “Implementation Plan for Deeply Promoting Innovative Development of Service‑oriented Manufacturing (2025–2028),” strengthening policy support.
The Implementation Plan encourages local governments to strengthen their support and ensures that the service‑oriented business segments of manufacturing enterprises can, in accordance with regulations, benefit from relevant policies on factor pricing and other forms of assistance. It leverages the role of the national industry–finance cooperation platform to enhance targeted matchmaking between industry and finance, guiding commercial banks, government investment funds, and other financial institutions to provide more robust financial services based on market‑oriented principles. The plan also promotes innovative mixed‑use land‑development models that integrate manufacturing and service sectors, thereby expanding the supply of mixed‑use industrial land. Furthermore, it calls for the establishment of a statistical survey system for service‑oriented manufacturing and supports pilot programs in eligible regions to conduct statistical monitoring. Efforts will be intensified to bolster intellectual property protection for enterprises, while actively advancing the commercialization and industrial application of patents. Finally, the framework and mechanisms for fostering the development of service‑oriented manufacturing will be refined and improved, enhancing the sector’s governance capacity and overall performance.
The Ministry of Housing and Urban-Rural Development has issued the fourth batch of a list of replicable best practices for implementing urban renewal initiatives.
Recently, the General Office of the Ministry of Housing and Urban–Rural Development issued the “List of Replicable Practices for Implementing Urban Renewal Initiatives (Fourth Batch),” which is addressed to the housing and urban–rural development authorities of all provinces, autonomous regions, municipalities directly under the central government, and the Xinjiang Production and Construction Corps.
The “List” summarizes the experiences and practices of various localities in strengthening organizational implementation, establishing and improving mechanisms for urban renewal, refining land-use policies, developing diversified financing and investment approaches, fostering a sustainable urban renewal model that integrates government guidance, market-driven operations, and public participation, and enhancing relevant laws and standards, providing a reference for localities to adapt and draw upon according to their specific circumstances.

Taxation

Joint Announcement by Three Departments on Administrative Penalties Related to the Submission of Tax-Related Information by Internet Platform Enterprises
Recently, the State Taxation Administration, the Ministry of Industry and Information Technology, and the Cyberspace Administration of China jointly issued the “Notice on Administrative Penalties Concerning the Reporting of Tax-Related Information by Internet Platform Enterprises,” which takes effect from the date of its publication.
The Notice clarifies that if an internet platform enterprise fails to submit tax‑related information as required by Article 10 of the Regulations, no penalty will be imposed provided the deficiency is rectified within the prescribed time limit. However, if the enterprise fails to comply within the deadline and, during the same year, has been found to have failed to report, underreported, concealed, falsely reported, improperly guided the reclassification of income, falsified or tampered with tax‑related information, or refused to report on two or more occasions, such conduct shall be deemed “serious.” In such cases, the competent tax authority shall impose penalties; in particularly serious instances, the enterprise may be ordered to suspend operations for rectification, with restrictions on invoicing and the issuance of warning notices. Once corrective measures have been implemented, the penalty measures may be promptly lifted.

LITIGATION & ARBITRATION

The Ministry of Justice has released the second batch of typical cases from the special campaign to standardize administrative law enforcement involving enterprises.
On October 13, the Ministry of Justice released the second batch of typical cases from its special campaign to standardize administrative law enforcement involving enterprises, comprising a total of eight cases and focusing on addressing the issues of “arbitrary inspections” and “unjustified fines.”
The cases released this time reflect the following four principles: first, rigorously scrutinize legal entity qualifications and uphold the bottom line of law-based administration; second, curb excessive inspections to ensure businesses can operate with peace of mind; third, rectify unlawful conduct and safeguard fairness and impartiality in law enforcement; and fourth, standardize fact-finding to ensure that penalties are precise and reasonable. In response to the issues of “excessive frequency” and “repeated disruption” in business-related inspections, administrative law enforcement oversight bodies at all levels have strengthened inter-agency coordination and innovated working models, thereby transforming administrative inspections from a “dispersed and arbitrary” approach into a “coordinated and efficient” one. In Case 3, administrative law enforcement oversight agencies at both the autonomous region and city levels conducted joint oversight, guiding administrative law enforcement authorities to correct improper inspection practices and promoting the optimization of inspection regimes in high-risk sectors across the region.
The Supreme People’s Procuratorate has released six typical cases of public interest litigation supported by prosecutorial technical expertise.
Recently, the Supreme People’s Procuratorate issued the “Notice on the Publication of ‘Typical Cases of Public Interest Litigation Supported by Procuratorial Technical Assistance,’” which covers public interest litigation cases in which procuratorial organs from Jiangxi, Sichuan, Shanghai, Beijing, Zhejiang, and Jilin provided technical support.
Key case studies include: the use of satellite remote sensing and UAV technology for investigating and gathering evidence on watershed ecological environments and farmland protection; reverse tracing and remote forensic examination to address the challenge of illegally collecting facial‑recognition data in real estate cases; animal‑derived DNA testing to enhance the scientific rigor of evidence in food‑adulteration cases; high‑performance liquid chromatography combined with document examination techniques for authenticating propolis products; and highly sensitive chromatography–mass spectrometry for detecting the illicit addition of novel psychoactive substances in e‑cigarettes.
The Supreme People’s Court has released typical cases of criminal offenses involving the conversion of nail guns into firearm‑like devices using gunpowder.
On October 15, the Supreme People’s Court released six typical cases involving the lawful punishment of crimes related to the modification of nail guns into firearm‑like devices.
The case involves the illegal manufacture, sale, mailing, and possession of firearms converted from nail guns, with aggravating factors such as endangering public safety and harming wildlife. The court imposed actual imprisonment on those whose offenses were deemed particularly serious, while granting suspended sentences to defendants who surrendered themselves, pleaded guilty and accepted punishment, or posed a relatively low risk to society. The typical case clarifies that converting nail guns into firearms constitutes offenses under Articles 125 and 128 of the Criminal Law, underscoring the need for strict regulation and control of firearms and explosive materials, and prohibiting the illegal manufacture, sale, transport, mailing, and storage of firearms and their component parts.
The Supreme People’s Court has released a new batch of selected Q&A on punitive damages in food and drug cases.
On October 16, the Supreme People’s Court released a selection of Q&A from the Legal Answers Website (Batch No. 28), focusing on punitive damages in food and drug cases, and clarified the standards for applying the Interpretation on Punitive Damages in Food and Drug Cases as well as relevant statutory provisions.
This batch of Q&A clarifies the following points: First, for individuals who knowingly purchase counterfeit goods and make small, repeated purchases of substandard food, punitive damages shall be calculated at ten times the price of each transaction; if the amount is less than RMB 1,000, it shall be capped at RMB 1,000, with claims limited to those arising from reasonable personal consumption. Second, when professional counterfeit‑busting individuals purchase expired pharmaceuticals, the portion falling within the scope of reasonable personal consumption may be subject to punitive damages at ten times the price or, if less than RMB 1,000, at RMB 1,000; any amount exceeding this limit will not be upheld. Third, with respect to punitive damages for the purchase of “three‑no” foods, liability should be distinguished between prepackaged and bulk products, and such liability must be determined in light of reasonable personal consumption needs; any excess beyond that scope will not be eligible for punitive damages. Operators engaging in unlawful conduct may not invoke the fact that another operator has already borne compensation as a basis for exemption from liability.

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