JC Master Legal News Issue 1169

Key Takeaways for This Issue

A Major New Regulation Takes Effect: Local AMCs Face the Tightest Supervision Yet
On July 15, the National Administration of Financial Regulation officially issued the Interim Measures for the Supervision and Administration of Local Asset Management Companies (Jin Gui [2025] No. 16), marking the entry of China’s local asset management company sector—referred to as “local AMCs”—into a new phase of more standardized and transparent development.
The State Administration for Market Regulation convened a meeting to advance the special rectification campaign targeting livestream e-commerce.
On July 15, the State Administration for Market Regulation convened a meeting to deploy and advance targeted efforts to address prominent issues in livestreaming e‑commerce, emphasizing the need to elevate political awareness, clarify key tasks for remediation, and enhance the public’s sense of gain.
The CPC Central Committee has issued the “Opinions on Strengthening Judicial Work in the New Era.”
On July 14, the Central Committee of the Communist Party of China issued the “Opinions on Strengthening Judicial Work in the New Era.”
The Ministry of Public Security has issued a special directive to crack down on intellectual property crimes in accordance with the law.
Recently, the Ministry of Public Security issued the “Opinions on Lawfully Cracking Down on Intellectual Property Crimes to Support High-Quality Development.”

Finance & Capital Markets
A Major New Regulation Takes Effect: Local AMCs Face the Tightest Supervision Yet
On July 15, the National Administration of Financial Regulation officially issued the Interim Measures for the Supervision and Administration of Local Asset Management Companies (Jin Gui [2025] No. 16), marking the entry of China’s local asset management company sector—referred to as “local AMCs”—into a new phase of more standardized and transparent development.
The Measures comprise four chapters and forty-five articles, covering general provisions, business operations and risk management, supervisory administration, and supplementary provisions. One of the most central elements is the clear delineation of the business scope of local AMCs, thereby guiding these institutions back to their core mandate of managing non‑performing assets. The Measures explicitly stipulate that local AMCs “shall not engage in any business other than those specified in the preceding paragraph,” and establish operational red lines through a negative list. In addition, the Measures introduce quantitative benchmarks, requiring that, over the past three years, the average annual investment by local AMCs in acquiring financial non‑performing assets account for no less than 30% of their total new investments.

Commercial & Corporate
The State Administration for Market Regulation approved, subject to additional restrictive conditions, the acquisition of equity in Ansi Technology by Synopsys.
On July 14, the State Administration for Market Regulation issued an announcement on the antitrust review decision approving, subject to certain restrictive conditions, New Thinking Technology Co., Ltd.’s acquisition of equity in Ansi Technology Co., Ltd.
The State Administration for Market Regulation has determined that the transaction may have the effect of excluding or restricting competition in the markets for optical software, photonics software, certain EDA software, and design IP. Accordingly, it has required Synopsys to divest its optical and photonic device‑simulation business, and Ansys to divest its power‑analysis software business, while also mandating compliance with existing customer contracts, prohibiting the bundling of related products, and ensuring the renewal of interoperability agreements. These restrictive conditions will remain in effect for ten years from the date of their entry into force, and the State Administration for Market Regulation will monitor their implementation.
The State Administration for Market Regulation convened a meeting to advance the special rectification campaign targeting livestream e-commerce.
On July 15, the State Administration for Market Regulation convened a meeting to deploy and advance targeted efforts to address prominent issues in livestreaming e‑commerce, emphasizing the need to elevate political awareness, clarify key tasks for remediation, and enhance the public’s sense of gain.
The meeting emphasized the need to improve regulatory frameworks, enforce the legal responsibilities of all stakeholders in the live-streaming e‑commerce sector, strengthen transparent and targeted oversight, enhance regulatory capacity, expand the array of regulatory tools, and rigorously crack down on illegal and non‑compliant activities through comprehensive governance.

Taxation TAXATATION
State Taxation Administration: Optimizing Matters Related to the Provisional Corporate Income Tax Return Filing
The State Taxation Administration recently issued the “Announcement on Optimizing Matters Related to the Provisional Corporate Income Tax Return Filing,” which will take effect on October 1, 2025.
The Announcement clarifies the criteria for applying the special equipment credit policy at the provisional payment stage, as well as the filing requirements for specific matters such as export transactions, and revises the “People’s Republic of China Corporate Income Tax Monthly (Quarterly) Provisional Tax Return Form (Type A).” Resident enterprises subject to account-based taxation that make monthly provisional payments shall begin using the new form starting with the return for the period ending September 2025; resident enterprises subject to account-based taxation that make quarterly provisional payments shall begin using the new form starting with the return for the third quarter of 2025.
Fujian Province’s first “pay-and-issue-invoice” system for the accounting office industry has been implemented.
Recently, Hongxing Hanqiao Financial Consulting Co., Ltd. in the Quanzhou Taiwan Business Investment Zone successfully issued the first “pay‑and‑invoice‑immediately” invoice for agency service fees to Quanzhou Chaosheng Cultural Creative Co., Ltd. This also marks the first “pay‑and‑invoice‑immediately” invoice in Fujian Province’s accounting office sector.
This innovation not only provides the accounting office sector with more convenient and efficient services, but also enables real-time, accurate recording of transaction data, thereby offering robust support for the refined and intelligent development of tax administration. Moving forward, the tax authorities will continue to monitor the implementation of the “Payment‑to‑Invoice” initiative within the accounting industry and work to extend its application to additional sectors.

Litigation & Arbitration
The CPC Central Committee has issued the “Opinions on Strengthening Judicial Work in the New Era.”
On July 14, the Central Committee of the Communist Party of China issued the “Opinions on Strengthening Judicial Work in the New Era.”
The Opinions call for strengthening the Party’s leadership over judicial work, supporting the people’s courts in exercising their adjudicatory powers independently and impartially in accordance with the law, improving the rule-of-law business environment, and reinforcing judicial work in areas such as finance, intellectual property, and ecological environment. They emphasize safeguarding national security, severely punishing crimes that endanger national security and public safety, and refining mechanisms for judicial protection of property rights. The documents also seek to promote the efficient circulation of data as a factor of production, improve the coordination between administrative enforcement and judicial adjudication in the financial sector, strengthen judicial protection of the rights and interests of minors, deepen reform of the judicial system, and enhance the judicial accountability system and the evaluation framework for the quality and efficiency of trials.
The Ministry of Public Security has issued a special directive to crack down on intellectual property crimes in accordance with the law.
Recently, the Ministry of Public Security issued the “Opinions on Lawfully Cracking Down on Intellectual Property Crimes to Support High-Quality Development.”
The Opinions clearly stipulate that priority will be given to cracking down on crimes involving the infringement of trade secrets, as well as counterfeiting and piracy in the manufacturing and consumer goods sectors. They call for the thorough implementation of the “Anxin” special campaign to prevent and combat trade‑secret‑related offenses, and for stringent measures against all forms of intellectual‑property infringement and copyright piracy. Additionally, the Opinions mandate a tough crackdown on prevalent crimes in the food and drug sectors, as well as on counterfeit and substandard products in areas such as fire‑safety equipment, construction materials, and electrical appliances—products that jeopardize public safety and production. The document also addresses trademark‑infringing activities involving seeds, fertilizers, and other agricultural inputs, along with the manufacture and sale of counterfeit cigarettes. Furthermore, it emphasizes strict adherence to established procedures regarding case acceptance and filing, jurisdiction over interprovincial cases involving enterprises, the application of coercive measures, the seizure, impoundment, and freezing of assets related to criminal cases, and cross‑regional investigative cooperation, thereby fostering industrial and cultural development. The Opinions underscore the need to refine enforcement strategies, promote proactive policing, strengthen international cooperation, and elevate law‑enforcement standards. They also call for the establishment of an efficient system for investigating intellectual‑property crimes, the advancement of big‑data and intelligent technologies, and the enhancement of the intelligence‑driven dimension of protection efforts.
The Supreme People’s Court has released typical cases involving environmental regulation of motor vehicles.
On July 15, the Supreme People’s Court released three typical cases involving environmental regulation of motor vehicles, thereby promoting the prevention and control of air pollution.
The cases released this time comprise one criminal case, one civil case, and one administrative case, with a particular focus on the responsibilities of motor vehicle emission‑inspection agencies. In Case One, a certain motor vehicle inspection company and its legal representative, Chen Moumou, among others, purchased OBD simulators and exhaust‑emission‑cheating software to issue false certification documents for more than 400 vehicles. Furthermore, within two years, the company had already been subject to administrative penalties on two or more occasions for providing such false documentation, constituting a serious offense. As a result, the company was fined RMB 300,000, and the persons directly responsible were sentenced to imprisonment and also fined. In Case Three, a testing company in Hubei was imposed an administrative penalty for issuing false reports but failed to pay the fine and the illegally obtained proceeds as required. The court upheld the decision to enforce collection by compulsory means.
Beijing’s first case of copyright infringement involving AI-generated artwork has been adjudicated.
On July 16, the Beijing Municipal Market Supervision Comprehensive Law Enforcement Corps announced a case in which the Tongzhou District People’s Court of Beijing recently held a public trial and handed down a verdict in Beijing’s first-ever copyright infringement case involving AI-generated artwork.
From March to July 2024, under the guidance of Luo, Yao used AI tools to illegally reproduce others’ works and sold infringing jigsaw puzzles through e‑commerce platforms, thereby obtaining illicit profits totaling RMB 270,000. In July 2024, police apprehended Yao and others, while Luo turned himself in. The court sentenced an e‑commerce company to a fine of RMB 100,000; Luo and Yao were each sentenced to one year and six months in prison and fined RMB 60,000; Li and Wang were each sentenced to ten months’ imprisonment, suspended for one year, and fined RMB 25,000.
The Supreme People’s Court Focuses on the Review of Extradition Cases and Releases the Twenty-Fifth Batch of Selected Q&A
On July 17, the Supreme People’s Court released “Selected Q&A from the Legal Answers Website (Batch No. 25) — Special Topic on the Review of Extradition Cases.”
This batch of responses primarily addresses the following issues: the application of the dual criminality principle in extradition cases, the review of the statute of limitations for the conduct alleged in the extradition request, and the handling of circumstances warranting a suspension of extradition. The dual criminality principle requires that the conduct be criminalized under both the requesting state’s law and Chinese law, without necessitating an identical charge. In reviewing the statute of limitations, consideration must be given to the limitation periods applicable in both the requesting state and China, with the date of receipt of the request by the Ministry of Foreign Affairs serving as the relevant time point. Any circumstances justifying a suspension of extradition shall be set forth in the ruling but shall not constitute a separate operative provision.

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 in 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.