JC Master Legal News Issue 1179

Key Takeaways for This Issue

Four departments have released the achievements and latest data of the financial sector during the 14th Five-Year Plan period.
On September 22, the State Council Information Office held a series of thematic press conferences on “High-Quality Implementation of the 14th Five-Year Plan.” Officials from the People’s Bank of China, the National Administration of Financial Regulation, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange outlined the achievements of the financial sector during the 14th Five-Year Plan period.
Haikou Customs: Standardizing Tax Administration for Duty-Free Goods with Processed Value-Added in the Hainan Free Trade Port
Haikou Customs recently issued the “Announcement on Implementing Relevant Requirements of the Provisional Measures of the People’s Republic of China Customs for the Tax Administration of Duty-Free Goods with Added Value in the Hainan Free Trade Port,” which shall take effect from the date the Hainan Free Trade Port commences closed‑port operations.
The Central Asia Branch of the Beijing Arbitration Commission was officially inaugurated in Karamay, Xinjiang.
On September 23, the Central Asia Branch of the Beijing Arbitration Commission/Beijing International Arbitration Center was officially inaugurated in Karamay City, Xinjiang. As the first branch of the BAC located outside Beijing, it aims to enhance its foreign‑related arbitration service framework in response to the needs of the Belt and Road Initiative. During the inauguration ceremony, a Russian‑language official website and draft arbitration rules were unveiled, and a strategic cooperation framework memorandum was signed.

Finance & Capital Markets

Four departments have released the achievements and latest data of the financial sector during the 14th Five-Year Plan period.
On September 22, the State Council Information Office held a series of thematic press conferences on “High-Quality Implementation of the 14th Five-Year Plan.” Officials from the People’s Bank of China, the National Administration of Financial Regulation, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange outlined the achievements of the financial sector during the 14th Five-Year Plan period.
According to reports, as of the end of June this year, the banking sector’s total assets approached 470 trillion yuan, ranking first globally; the stock and bond markets both rank second worldwide; and foreign-exchange reserves have remained the largest in the world for 20 consecutive years. The combined total assets of the banking and insurance sectors exceeded 500 trillion yuan, with an average annual growth rate of 9% over the past five years, injecting an additional 170 trillion yuan into the real economy. Technology‑focused SMEs, inclusive micro‑ and small‑business loans, and green loans have all posted average annual growth rates exceeding 20%. In the A‑share market, technology‑related stocks now account for more than one quarter of total market capitalization, with 24 of the top 50 companies by market value being technology offices. Listed companies’ dividends and share buybacks totaled 10.6 trillion yuan, up by more than 80% compared with the 13th Five-Year Plan period. Meanwhile, foreign‑exchange reserves have remained stable above US$3 trillion, reaching US$3.2 trillion in the past two years.

Commercial & Corporate

The Ministry of Justice has released eight typical cases of administrative law enforcement involving enterprises.
On September 22, the Ministry of Justice released a set of exemplary cases from its special campaign to standardize administrative law enforcement involving enterprises and deliver tangible benefits to the public, announcing eight representative cases developed during the campaign across various regions.
The cases cover areas such as ecological environment, transportation, market regulation, urban management, and administrative approval, focusing on addressing persistent enforcement challenges like unauthorized fees, arbitrary fines, unwarranted inspections, and improper asset seizures. Key measures include adopting a tolerant yet prudent approach to law enforcement, providing targeted support to businesses, innovating mechanisms to enhance efficiency, and strengthening inter‑departmental coordination and collaboration. Typical practices include issuing early warnings of violations, conducting mediation and consultations, establishing dedicated service hotlines, creating fast‑track patent application channels, implementing differentiated regulatory approaches, setting unified standards for joint rectification, and systematically addressing bottlenecks in enterprise development—efforts that have collectively helped businesses recover losses exceeding RMB 15 billion.
Three departments have issued the “Work Plan for Stabilizing Growth in the Light Industry.”
Recently, the Ministry of Industry and Information Technology, the Ministry of Commerce, and the State Administration for Market Regulation jointly issued the “Work Plan for Stabilizing Growth in the Light Industry (2025–2026).”
The plan proposes accelerating product innovation and driving technological breakthroughs in areas such as smart homes, biomanufacturing, and high-end bicycles; annually completing the development or revision of 300 industry standards to refine the mandatory national standards system; supporting brand-building in sectors like home appliances, furniture, and cosmetics, while promoting initiatives such as “premium products to rural areas” and “export clusters going global”; implementing trade-in programs for home appliances, home décor, kitchen and bathroom products, and electric bicycles to boost the uptake of high‑quality, durable consumer goods; backing the globalization of leading enterprises, regulating export market order, and encouraging the growth of cross‑border e‑commerce; advancing digital transformation and green manufacturing, and fostering the development of smart and green factories; and strengthening financial support, supply‑chain finance, and intellectual‑property‑pledge lending to enhance services for small and medium‑sized enterprises.
Six departments have issued the “Work Plan for Stabilizing Growth in the Building Materials Industry (2025–2026).”
On September 24, six ministries and commissions, including the Ministry of Industry and Information Technology and the Ministry of Housing and Urban–Rural Development, issued the “Work Plan for Stabilizing Growth in the Building Materials Industry (2025–2026),” which sets out that, during 2025–2026, the building materials sector will rebound and improve, with profitability rising significantly, industrial innovation capacity continuously strengthening, and the scale of green building materials and advanced inorganic non-metallic materials industries steadily expanding. By 2026, the green building materials industry is expected to generate over RMB 300 billion in revenue, while progress in green, low-carbon, and digital transformation will be markedly accelerated.
The Plan outlines 10 measures across five key areas, including stringent regulation of cement and glass production capacity, bolstering the advanced inorganic non-metallic materials industry, fostering industries based on distinctive and competitive resources, strengthening the alignment of supply and demand for high-end materials, and promoting high-level international cooperation. It also supports industry associations in coordinating enterprises’ overseas expansion, enhancing their expertise in international trade rules, market dynamics, and market research, guiding the coordinated global outreach of building‑material products, technologies, standards, equipment, and services, and providing guidance and assistance to enterprises in addressing unreasonable foreign trade restriction policies.
Five departments have issued the “Work Plan for Stabilizing Growth in the Steel Industry (2025–2026).”
On September 22, the Ministry of Industry and Information Technology, the Ministry of Natural Resources, the Ministry of Ecology and Environment, the Ministry of Commerce, and the State Administration for Market Regulation jointly issued the “Work Plan for Stabilizing Growth in the Steel Industry (2025–2026).”
The Plan explicitly calls for strengthening capacity management in the steel industry, advancing a green and low‑carbon transformation, optimizing industrial layout, and elevating the level of intelligent manufacturing. It also proposes bolstering resource security, promoting the upgrading of the steel product mix, strictly controlling the addition of new production capacity, and encouraging the recycling and utilization of scrap steel. Local authorities are required to implement these measures in light of their specific circumstances, reinforce industry oversight, and ensure the stable operation and high‑quality development of the steel sector.
The National Intellectual Property Administration has publicly announced the list of the first batch of designated Industrial Intellectual Property Operation Centers.
On September 25, the Intellectual Property Utilization and Promotion Department of the National Intellectual Property Administration published the “Public Notice on the List of the First Batch of Industrial Intellectual Property Operation Centers,” with a publicity period from September 25 to September 30, 2025.
The publicly announced list includes 65 industrial intellectual property operation centers, covering key sectors such as nuclear energy, oil and gas, new energy, artificial intelligence, photovoltaic manufacturing, automobiles, biopharmaceuticals, semiconductors, the smart Internet of Things, energy storage materials, smart home appliances, and new-energy vehicles. The implementing entities span central state-owned enterprises, research institutes, high-tech parks, and local governments. During the public notice period, any organization or individual with objections may submit relevant supporting documentation in writing to the Intellectual Property Utilization and Promotion Division of the National Intellectual Property Administration.
Six departments have introduced ten measures to strengthen the cultivation of innovative enterprises in the digital economy.
Recently, the National Development and Reform Commission, the National Data Administration, the Ministry of Finance, the People’s Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission jointly issued the “Notice on the Issuance of the ‘Several Measures for Strengthening the Cultivation of Innovative Enterprises in the Digital Economy.’”
The document proposes to improve the mechanism for identifying innovative enterprises, establish an enterprise cultivation database and update it dynamically; encourage authorized operation of public data, support fair participation by enterprises in the development and utilization of public data, and explore “data vouchers” and “algorithm vouchers” to reduce costs; strengthen the supply of computing power resources and advance the construction of a nationwide integrated computing network; enhance original innovation capabilities, and support the establishment of patent pools and intellectual property services; refine mechanisms for the commercialization of scientific and technological achievements and back the “first purchase, first use” policy; expand the availability of application scenarios and opportunities, and promote scenario openness and cross‑regional collaborative development; bolster services for enterprises expanding overseas, and support international cooperation and participation in trade fairs; optimize investment and financing services, improve credit assessment and financial products, and facilitate corporate access to capital markets; explore “sandbox regulation,” standardize business‑related inspections, and implement flexible law enforcement; and strengthen the development of a digital talent pool by refining discipline offerings and talent mobility mechanisms.

Taxation

Hainan Free Trade Port’s new policy of “phased island departures and centralized declarations” has taken effect.
Recently, Haikou Customs issued the “Administrative Provisions on ‘Batch Departure from the Island and Centralized Declaration’ for the Hainan Free Trade Port” (Haikou Customs Announcement No. 4 of 2025), further facilitating customs clearance at Hainan’s “second-line ports.”
The new regulation clarifies the business model, scope of application, and operational requirements for “phased outbound island clearance and centralized declaration” (hereinafter referred to as “phased-out, centrally declared”), which will take effect on the official date of the Hainan Free Trade Port’s closed‑border operations—December 18, 2025—thereby injecting fresh momentum into the cross‑regional flow of goods within the port. Under the Regulation, “phased outbound island clearance and centralized declaration” refers to a customs clearance regime whereby, when “zero‑tariff” goods of the Hainan Free Trade Port, their processed products, bonded goods benefiting from the policy of tariff exemption on value‑added processing, and goods subject to relaxed trade‑management measures upon entry from abroad into the Hainan Free Trade Port—and their processed products—enter other regions within the People’s Republic of China via “second‑line ports,” enterprises may first complete the actual outbound procedures in batches and then, within the prescribed time limit, submit consolidated customs declarations to the customs authorities.
Haikou Customs: Standardizing Tax Administration for Duty-Free Goods with Processed Value-Added in the Hainan Free Trade Port
Haikou Customs recently issued the “Announcement on Implementing Relevant Requirements of the Provisional Measures of the People’s Republic of China Customs for the Tax Administration of Duty-Free Goods with Added Value in the Hainan Free Trade Port,” which shall take effect from the date the Hainan Free Trade Port commences closed‑port operations.
The “Notice” defines imported materials as encompassing both “duty‑free” goods and bonded goods. When an enterprise applies for the first time to avail itself of the duty‑free policy on processing‑value‑added activities, it shall submit an application to the entity designated by the Hainan Provincial Department of Commerce. Following preliminary review at the city or county level and approval after joint examination by the Hainan Provincial Department of Commerce together with relevant provincial authorities, the enterprise shall file a record with Customs through the China (Hainan) International Trade “Single Window.” Once registered, when seeking to apply the duty‑free policy on processing‑value‑added activities, the enterprise must, prior to the entry of the finished product from the Hainan Free Trade Port into the mainland, complete the processing‑value‑added declaration procedures with Customs via the Hainan “Single Window.”

LITIGATION & ARBITRATION

The Ministry of Public Security has announced five typical cases of currency counterfeiting.
On September 22, the Ministry of Public Security announced five typical cases of currency counterfeiting, involving Beijing, Inner Mongolia, Hunan, Sichuan, Yunnan, and other regions. All cases have been transferred to the procuratorial organs or the courts for prosecution.
In this batch of cases, public security authorities seized equipment procured online by Beijing resident Cheng and others for the production of counterfeit currency, dismantled eight clandestine manufacturing sites, and confiscated over RMB 2 million in counterfeit notes. In Inner Mongolia, Li and accomplices mass‑produced counterfeit banknotes in denominations of RMB 20, 50, and 100, dismantling six production hubs and seizing more than RMB 400,000 in counterfeit currency. In Hunan, Guo and associates manufactured counterfeit notes via social‑media orders, with over RMB 300,000 worth of RMB 100‑denomination counterfeits seized. In Sichuan, He and others created electronic templates for counterfeit currency, resulting in the seizure of RMB 1.6529 million in RMB 50‑denomination counterfeits; they have since been sentenced. In Yunnan, Cheng and others organized the production and distribution of counterfeit currency, dismantling seven operational sites and confiscating RMB 3.06625 million in fake banknotes.
The Central Asia Branch of the Beijing Arbitration Commission was officially inaugurated in Karamay, Xinjiang.
On September 23, the Central Asia Branch of the Beijing Arbitration Commission/Beijing International Arbitration Center was officially inaugurated in Karamay City, Xinjiang. As the first branch of the BAC located outside Beijing, it aims to enhance its foreign‑related arbitration service framework in response to the needs of the Belt and Road Initiative. During the inauguration ceremony, a Russian‑language official website and draft arbitration rules were unveiled, and a strategic cooperation framework memorandum was signed.
The Central Asia Branch will refine its rules on international arbitration and streamline case-handling procedures, thereby enhancing arbitration efficiency and service quality and establishing an influential international arbitration center in the Central Asian region. The two parties will engage in in-depth cooperation across multiple areas, including talent development, exchanges and collaboration on dispute resolution, information sharing, and coordinated promotion of arbitration both domestically and internationally. An official Russian-language website and a Russian-language version of the “Rules for Expedited Procedures for Mediation-Arbitration Coordination” have been launched simultaneously, providing convenient guidance to parties from Central Asia.
The Supreme People’s Court has issued a special guideline to promote the high-quality development of international commercial courts.
On September 25, the Supreme People’s Court issued the “Opinions on Promoting the High-Quality Development of International Commercial Courts and Providing Services to Support High-Level Opening-Up.”
The Opinions propose optimizing the jurisdictional framework for foreign-related commercial cases, improving case management, facilitating litigation, applying international treaties and customary practices, ascertaining foreign law, and refining court‑operation mechanisms; promoting seamless integration among litigation, mediation, and arbitration, and enhancing mechanisms for judicial conofficeation of mediation agreements, judicial review of arbitral awards, and expert committees; strengthening the pool of legal professionals specializing in foreign-related matters, improving systems for selection, training, management, and deployment, and deepening cooperation with universities and international organizations; and bolstering international judicial exchanges by establishing robust mechanisms for judicial assistance and case‑sharing, issuing bilingual Chinese–English reports on foreign-related adjudication, and enhancing China’s international standing.
The Supreme People’s Court has released the fifth batch of typical cases involving the Belt and Road Initiative.
On September 25, the Supreme People’s Court released the fifth batch of typical cases involving the Belt and Road Initiative.
The cases cover a range of types, including independent guarantees, construction contracts, and the recognition and enforcement of foreign court judgments and arbitral awards, and primarily clarify the following: standby letters of credit serve as security instruments and are governed by the rules applicable to independent guarantees; cross-border expert appraisal combines on-site testing abroad with laboratory analysis domestically, with a clear allocation of liability for losses; pursuant to a Sino‑Singapore legal memorandum, civil judgments rendered by Singaporean courts are recognized; it is expressly held that the China–Mongolia bilateral judicial assistance treaty does not apply to arbitral awards, and that New York Convention review applies instead to Mongolian arbitral awards; moreover, Russian arbitral awards are efficiently recognized and enforced, facilitating settlement between the parties and further refining a comprehensive, end-to-end mechanism for resolving international commercial disputes.
The Supreme People’s Procuratorate has released typical cases of oversight over the execution of sentence modifications.
On September 25, the Supreme People’s Procuratorate issued the “Notice on the Issuance of Typical Cases of Supervision over the Execution of Sentence Changes,” which includes eight cases—covering sentence reduction, temporary release for medical treatment, and other matters—for reference by procuratorial organs at all levels.
The key points of these cases include: First, strengthening oversight of temporary release for execution outside prison by requiring substantive review of medical diagnoses and, upon discovery of falsified evidence, referring such cases to public security organs in accordance with the law; second, mandating a comprehensive examination of offenders’ repentance, sentence‑length calculations, and the enforcement of property‑related rulings in commutation cases, thereby rectifying issues such as prisons’ failure to credit pretrial detention and overly stringent application of commutation thresholds; third, prohibiting double deductions when determining strict‑circumstance criteria for commutation of drug‑related offenders; and fourth, allowing commutation to be applied to offenders whose identities remain unknown once their identities have been established. Each case underscores that procuratorial organs should intensify investigative verification and interagency collaboration, issue supervisory opinions in accordance with the law, ensure the fairness of penal execution, and prevent official misconduct.

JC Master Law Office
Address: 9th Floor, National Water Resources Building, No. 70 Qingjiang South Road, Nanjing City
Postal Code: 210036
Phone: 025-84503333
Fax: 025-84505533
Website: www.jcmaster.com
This legal notice is provided solely for informational purposes and does not constitute legal advice or a legal analysis of any specific case. The transmission of this legal notice does not establish an attorney–client relationship between JC Master Law Office and the user or viewer. JC Master Law Office assumes no responsibility for any third-party content accessible via the internet. If you do not wish to receive this legal notice, please notify us by email at jcm@jcmaster.com.
The copyright of this legal information is owned by JC Master Law Office ©. Without written permission, no organization or individual may reproduce, publish, or cite it in any form.