JC Master Legal News Issue 1167

Key Takeaways for This Issue

The Shanghai Stock Exchange convened a symposium for equity investment institutions to implement the STAR Market’s “1+6” policy.
To strengthen the market outreach and communication of the “1+6” policy package for this STAR Market reform, accelerate its implementation and effectiveness, and foster a capital market ecosystem that better supports technological innovation, the Shanghai Stock Exchange recently convened a series of specialized symposiums in Shanghai, Beijing, and other locations. These forums facilitated in-depth exchanges with leading private equity investment offices, thoroughly solicited their views and suggestions, and promptly addressed market concerns.
Three departments have issued tax preferential policies to encourage reinvestment of profits by foreign-invested enterprises.
The Ministry of Finance, the State Taxation Administration, and the Ministry of Commerce recently issued the “Announcement on the Tax Credit Policy for Foreign Investors Making Direct Investments with Distributed Profits.”
The Supreme People’s Court has released the second batch of typical cases involving the application of model texts.
On July 3, the Supreme People’s Court released a second batch of typical cases demonstrating the application of model texts, covering nine areas including criminal, civil, and commercial law.

Finance & Capital Markets
The Shanghai Stock Exchange convened a symposium for equity investment institutions to implement the STAR Market’s “1+6” policy.
To strengthen the market outreach and communication of the “1+6” policy package for this STAR Market reform, accelerate its implementation and effectiveness, and foster a capital market ecosystem that better supports technological innovation, the Shanghai Stock Exchange recently convened a series of specialized symposiums in Shanghai, Beijing, and other locations. These forums facilitated in-depth exchanges with leading private equity investment offices, thoroughly solicited their views and suggestions, and promptly addressed market concerns.
Equity investment institutions are an essential component of the STAR Market ecosystem. According to statistics, more than 90% of STAR Market‑listed companies received investment and support from equity investors prior to their IPOs. Participants at the forum unanimously agreed that the introduction of the STAR Market’s “1+6” policy has significantly boosted investor confidence and morale, while also bolstering the self‑assurance of technology‑driven entrepreneurs. This development will more effectively foster a virtuous cycle among technology, industry, and capital, and enable higher‑quality support for China’s drive toward technological self‑reliance and strength—making it both timely and highly significant. New measures such as the Growth Enterprise Tier, seasoned professional institutional investors, and pre‑review procedures have endowed the STAR Market’s framework with distinct Chinese characteristics, setting it apart from mature overseas markets and enhancing its appeal to venture capital offices and technology‑focused enterprises. Recently, several unprofitable companies have had their STAR Market IPO applications accepted, and the first IPO under the STAR Market’s fifth set of criteria has been approved following the resumption of that standard. These landmark cases underscore the determination behind the reforms, further reinforcing market confidence and stabilizing market expectations.

Commercial & Corporate
The Cyberspace Administration of China has released a list of administrative inspection items related to enterprises.
On June 30, the Cyberspace Administration of China released a list of administrative inspection items related to enterprises, covering six types of inspections.
The list sets out six categories of administrative inspections conducted by the Cyberspace Administration of China, covering areas such as platforms’ fulfillment of their principal responsibility for information content management, internet news and information services, the provision of financial information services by foreign entities, new internet technologies and applications, and data security and personal information protection. With the exception of security assessments and supervisory inspections of new internet technologies and applications, which are carried out twice annually, all other inspection items are subject to a maximum frequency of once per year. The scope of these inspections encompasses technical systems, information security management systems, and compliance with regulations on cross-border data transfers, ensuring that enterprises meet the requirements of applicable laws, regulations, and national standards.
Nine departments have issued guiding opinions to facilitate the transformation of individual business households into enterprises.
On July 3, the State Administration for Market Regulation published on its website the “Guiding Opinions on Promoting the Efficient Transformation of Individual Business Households into Enterprises as a Single-Item Process and Strengthening Support and Assistance Measures.”
The Opinions propose streamlining the registration process for individual business households transitioning into enterprises, simplifying the sharing of tax-related information and the handling of enterprise‑related procedures, extending relevant administrative permits, and delivering integrated online‑and‑offline services to mitigate various risks. They also call for strengthened support and capacity‑building for transitioning enterprises, including access to employment and social security services, preferential treatment on asset transfer fees, continued financing assistance, implementation of tax and fee reduction policies, and the exploration of a transitional management framework. The document underscores respect for the voluntary nature of such transitions and prohibits any compulsory conversion.
MIIT: Comprehensive Measures to Tackle Low‑Price, Disordered Competition in the Photovoltaic Industry
On July 3, 2025, Li Lecheng, Secretary of the Party Group and Minister of the Ministry of Industry and Information Technology, chaired the 15th symposium for manufacturing enterprises. The meeting aimed to thoroughly study and implement the important instructions and directives of General Secretary Xi Jinping, carry out the decisions and arrangements of the CPC Central Committee and the State Council, and focus on accelerating the high-quality development of the photovoltaic industry. Participants heard briefings and exchanged views from photovoltaic companies and industry associations. During the session, leaders from 14 photovoltaic enterprises and industry associations delivered remarks, discussing issues related to production and operations, technological innovation, market competition, and the building of a healthy industry ecosystem. They outlined their companies’ basic profiles, highlighted the challenges and problems they face, and put forward policy recommendations.
The General Administration of Customs has issued the “Administrative Measures on Enterprise Credit of the People’s Republic of China (Draft for Public Comment).”
On July 4, the General Administration of Customs issued the “Notice on Soliciting Public Comments on the Draft Measures for the Administration of Enterprise Credit of the People’s Republic of China,” with a deadline for submitting feedback set for July 10.
The Measures have revised the enterprise credit rating system, introduced a new category for enterprises with serious breaches of trust, and clarified the certification criteria for Authorized Economic Operators (AEOs). Customs now classifies enterprises into five categories: AEOs, certified enterprises, ordinary enterprises, enterprises with untrustworthiness, and enterprises with serious untrustworthiness. A simplified review procedure has been established for AEOs, allowing them to undertake rectification within a specified time limit. The criteria for identifying enterprises with untrustworthiness have been amended to include an exclusion clause: enterprises whose penalty amounts do not exceed 1% of their previous year’s import‑export value will be exempted. In addition, Customs will maintain a list of enterprises with abnormal credit information and strengthen oversight of entities suspected of engaging in fictitious trade.

Taxation
The State Taxation Administration has issued a supplementary announcement to the “Regulations on the Submission of Tax-Related Information by Internet Platform Enterprises.”
The State Taxation Administration recently issued the “Announcement on Matters Related to the Submission of Tax‑Related Information by Internet Platform Enterprises” and the “Announcement on Several Matters Concerning the Withholding and Filing, as well as Agency Filing, for Personnel Working on Platform Enterprises,” thereby clarifying specific operational procedures.
The “Announcement on Matters Relating to the Submission of Tax‑Related Information by Internet Platform Enterprises” primarily provides detailed guidance from an operational perspective, clarifying four key issues stipulated in the regulations: who is required to report, what information must be reported, how reporting is to be conducted, and what measures will be taken in cases of non‑compliance. In particular, with respect to “what to report,” it specifies the exact categories, content, and scope of the information that internet platform enterprises are required to submit, including their own basic corporate details as well as the identity and income information of operators and workers operating on the platform.
The “Notice on Several Matters Concerning the Withholding and Filing of Tax Returns, as Well as Agency‑Based Filing, for Platform‑Based Workers by Internet Platform Enterprises” primarily addresses scenarios in which platform workers receive labor compensation or service income from such enterprises. From the perspective of “two burdens‑relief” measures, it further strengthens alignment with relevant regulations. In particular, it streamlines the method for withholding and prepaying individual income tax on labor compensation, allowing taxpayers to apply the cumulative withholding approach. Under this method, not only can the standard monthly deduction of RMB 5,000 be claimed, but tax liabilities may also be calculated using a seven‑tier progressive withholding rate ranging from 3% to 45%, thereby helping to reduce the prepayment burden on platform‑based workers.
Three departments have issued tax preferential policies to encourage reinvestment of profits by foreign-invested enterprises.
The Ministry of Finance, the State Taxation Administration, and the Ministry of Commerce recently issued the “Announcement on the Tax Credit Policy for Foreign Investors Making Direct Investments with Distributed Profits.”
The Notice clarifies that, from January 1, 2025, to December 31, 2028, foreign investors who use profits distributed by resident enterprises in China to make direct investments within China may, subject to certain conditions, qualify for a tax credit. Specifically, eligible foreign investors may offset 10% of their current-year taxable income by the amount of such investments; any shortfall in the current year may be carried forward to subsequent years.
Recently, the Minister of Finance submitted to the Standing Committee of the National People’s Congress the 2024 Central Government Final Accounts Report and the draft Central Government Final Accounts.
Looking at the detailed revenue settlement, tax revenue totaled RMB 9,141.966 billion, down 4.6% year on year, while non-tax revenue reached RMB 904.24 billion, a substantial increase of 142.3%, largely attributable to one-off allocations of special proceeds remitted by central government agencies.
Among the major tax categories, tax revenues have exhibited distinct trends:
- Domestic value-added tax revenue reached RMB 3,322.33 billion, representing 92.1% of the budgeted target. Lower-than-expected producer prices for industrial goods had a certain impact on this tax category’s revenue.
- Domestic excise tax revenue totaled RMB 1,653.215 billion, representing 95.9% of the budgeted amount. Lower-than-expected sales of cigarettes, refined petroleum products, and other goods were the primary factors behind the shortfall in excise tax revenue.
- Revenue from value-added tax, consumption tax, and customs duties on imported goods totaled RMB 2,162.875 billion, representing 94.2% of the budgeted target. Lower-than-expected commodity prices and subdued growth in general‑trade imports exerted downward pressure on this component of tax revenue.
- Corporate income tax revenue totaled RMB 2,643.602 billion, achieving 96.3% of the budgeted target. Slower-than-expected growth in corporate profits has placed some constraints on corporate income tax revenues.
- Personal income tax revenue totaled RMB 871.319 billion, representing 92.5% of the budgeted target. Lower-than-expected personal income tax revenues from property transfers and other sources weighed on the overall size of personal income tax receipts.

LITIGATION & ARBITRATION
The Supreme People’s Court, focusing on the crime of bid-rigging, has released the 24th batch of selected Q&A from its Legal Answers Website.
On July 3, the Supreme People’s Court released “Selected Q&A from the Legal Consultation Website (Batch No. 24) — Special Topic on the Crime of Collusive Bidding.”
This special Q&A session comprises six sets of questions and answers, primarily addressing issues such as the scope of application of the crime of bid-rigging, the identity of the perpetrator, the criteria and legal basis for determining “serious circumstances,” the determination of direct economic losses, the identification of illegal gains, and the imposition of multiple‑count penalties. The Supreme People’s Court has clarified that the crime of bid-rigging is not limited to projects subject to mandatory state‑mandated tendering; it also applies to bidding activities conducted by private enterprises. The perpetrator may be either an organization or an individual, and the threshold for “serious circumstances” encompasses factors such as the extent of economic loss and the use of unlawful means. The assessment of direct economic losses and illegal gains must take into account the specific facts of each case. Furthermore, bid-rigging, when combined with other offenses such as bribery or accepting bribes, shall be punished cumulatively under the principle of multiple‑count penalties.
The Supreme People’s Court has, for the first time, established a specialized agency to liaise with lawyers.
Recently, the Supreme People’s Court announced the establishment of a Lawyers’ Affairs Liaison Office within its Research Department. This marks the first time the Supreme People’s Court has set up a dedicated body to handle matters related to lawyers.
The Lawyers’ Affairs Liaison Office is responsible for coordinating and guiding the people’s courts in matters related to the legal profession, conducting liaison and communication with the bar association and relevant departments, strengthening research on judicial policies that safeguard lawyers’ rights and interests, improving institutional mechanisms governing lawyer‑related work, and receiving and coordinating the handling of matters referred by bar associations and other competent authorities. This initiative aims to reinforce the protection of lawyers’ professional rights and human rights within the judicial system.
The Supreme People’s Court has released the second batch of typical cases involving the application of model texts.
On July 3, the Supreme People’s Court released a second batch of typical cases demonstrating the application of model texts, covering nine areas including criminal, civil, and commercial law.
The cases demonstrate the effectiveness of model texts in addressing disputes related to sales contracts, property service agreements, divorce, and other matters, thereby promoting prevention at the source, providing targeted services to the public, and enhancing the efficiency of dispute resolution. In Case 3, the court leveraged model texts to empower industry‑based mediation, helping specialized industry mediation organizations resolve large numbers of property‑management disputes. As a result, more than 90% of property‑management disputes were settled through mediation, and in over 85% of these cases, timely corrective actions by property management companies prompted owners to voluntarily fulfill their obligations to pay service fees, achieving the positive outcome of “resolving one case while improving governance across an entire community.” The Supreme People’s Court stated that it will continue to deepen the application of model texts, enhance its service capabilities, refine their content, and ensure smooth channels for feedback.
The Supreme People’s Court focuses on marriage and family issues, releasing the 23rd batch of selected Q&A from its Legal Answers website.
On July 3, the Supreme People’s Court released “Selected Q&A from the Legal Consultation Website (Batch No. 23) — Special Topic on Marriage and Family.”
This special topic addresses three key issues: first, whether a spouse may claim child support during the period of separation in divorce proceedings, clarifying that minor children or adult children who are unable to support themselves may seek such support; second, the procedural handling when one party in a divorce action lacks civil capacity, specifying that a legal representative must be appointed by the court; and third, the validity and adjustment of liquidated‑damages clauses concerning the division of marital property in divorce agreements, emphasizing the enforceability of such clauses and the grounds for their adjustment under specific circumstances.

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