JC Master Legal News Issue 1164

Key Takeaways for This Issue

The CPC Central Committee and the State Council: Allow Greater Bay Area enterprises listed in Hong Kong to list on the Shenzhen Stock Exchange in accordance with relevant regulations.
On June 10, the “Opinions of the General Office of the CPC Central Committee and the General Office of the State Council on Deepening the Shenzhen Comprehensive Reform Pilot, Further Advancing Reform and Innovation, and Expanding Opening-Up” were officially made public, outlining fifteen specific measures across six key areas.
Four departments have clarified matters related to the formulation of the list of enterprises eligible for the value-added tax additional deduction policy for 2025.
In accordance with the “Announcement on the Value-Added Tax Additional Deduction Policy for Advanced Manufacturing Enterprises” (Ministry of Finance and State Taxation Administration Announcement No. 43 of 2023), the “Notice on Matters Related to the Preparation of the List of Advanced Manufacturing Enterprises Eligible for the Value-Added Tax Additional Deduction Policy in 2025,” jointly issued by four departments, was made public on June 9.
The Supreme People’s Court has released typical criminal cases that promote the development of the private sector.
On June 9, the Supreme People’s Court released five typical criminal cases that promote the development of the private sector.
The Supreme People’s Procuratorate has released typical cases of cracking down on illegal fundraising crimes.
On June 10, the Supreme People’s Procuratorate issued the “Notice on the Publication of Typical Cases of Prosecutorial Authorities’ Crackdown on Illegal Fundraising Crimes,” selecting and compiling four typical cases, including the illegal fundraising case involving Zhou Moubiao, Li Mou, and others.

Finance & Capital Markets
The CPC Central Committee and the State Council: Allow Greater Bay Area enterprises listed in Hong Kong to list on the Shenzhen Stock Exchange in accordance with relevant regulations.
On June 10, the “Opinions of the General Office of the CPC Central Committee and the General Office of the State Council on Deepening the Shenzhen Comprehensive Reform Pilot, Further Advancing Reform and Innovation, and Expanding Opening-Up” were officially made public, outlining fifteen specific measures across six key areas.
The Opinions propose supporting Shenzhen in launching a special pilot program for the integrated development of science, technology, and finance. They call for optimizing the coordinated mechanisms linking debt and equity financing for technology‑based enterprises, and for encouraging insurance funds to invest, in compliance with laws and regulations, in private equity and venture capital funds initiated in Shenzhen that focus on specific sectors. Furthermore, they permit companies from the Guangdong–Hong Kong–Macao Greater Bay Area listed on the Hong Kong Stock Exchange to list on the Shenzhen Stock Exchange in accordance with relevant policies. The Opinions also advocate innovating institutional mechanisms to support the development of emerging industries, exploring mechanisms for the approval and application of AI‑assisted medical devices, and formulating rules and standards governing the data collection, integration, sharing, and compliant use of such devices. In addition, they support Shenzhen in deepening reforms of its unmanned aerial vehicle (UAV) flight management system, refining low‑altitude flight regulatory frameworks, and piloting cross‑border helicopter operations and other general aviation services for public welfare purposes.
Seven departments: Support eligible food enterprises in raising capital through domestic IPOs.
On June 10, the Ministry of Industry and Information Technology and six other departments issued a notice publicly releasing the “Implementation Plan for the Digital Transformation of the Food Industry.” The document sets a target that by 2027, the penetration rate of digitalization in the management and operations of key enterprises will reach 80%.
The Plan outlines 18 key tasks across four areas: innovation in information technology, the development of new models and business forms, industrial upgrading and quality enhancement. In terms of implementation, the Plan calls for optimizing the policy support framework. It encourages localities to leverage diverse funding channels to carry out technological upgrades and large-scale equipment modernization, formulate and roll out region-specific complementary measures tailored to local conditions, and improve the allocation of production factors and resource guarantees. Furthermore, it seeks to strengthen financial support by urging banking and financial institutions to innovate financial products and service models, and—while keeping risks under control—to increase financing support for food enterprises undergoing transformation and upgrading, thereby enhancing the quality and efficiency of financial services. Eligible food enterprises will also be supported in accessing domestic capital markets for fundraising.

Commercial & Corporate
The General Administration of Customs plans to issue an announcement on the mutual recognition of AEO programs between China and Ecuador.
Recently, the General Administration of Customs issued the “Notice on Soliciting Public Comments on the ‘Announcement of the General Administration of Customs on the Mutual Recognition of the China–Ecuador Authorized Economic Operator (AEO) Scheme,’” with the deadline for submitting feedback set for June 15, 2025.
The Announcement will take effect on July 1, 2025, and stipulates that China and Ecuador mutually recognize AEO‑certified enterprises, granting them facilitative measures such as reduced inspection rates and priority screening. When Chinese AEO‑certified enterprises export to Ecuador, they must provide their AEO code and the enterprise’s English name; Ecuadorian importers shall declare in accordance with applicable regulations. Conversely, when Chinese enterprises import from Ecuadorian AEO‑certified enterprises, they are required to enter the Ecuadorian AEO‑certified enterprise’s code.
The market supervision authorities have investigated and prosecuted a major, landmark monopoly case in the pharmaceutical sector, imposing fines and confiscations totaling RMB 362 million.
Recently, the State Administration for Market Regulation guided the Tianjin Municipal Administration for Market Regulation in investigating and prosecuting a major antitrust case in the pharmaceutical sector, imposing fines and confiscations totaling RMB 362 million and holding individuals legally accountable. The administrative penalty decision was published on the SAMR’s official website on June 13.
The Tianjin Municipal Market Supervision Administration, acting under the jurisdiction designated by the State Administration for Market Regulation, imposed penalties on individual Guo Moumou and on Jinyao Pharmaceutical, Zhejiang Xianju Pharmaceutical, Jiangsu Lianhuan Pharmaceutical, and Xi’an Guokang Ruijin Pharmaceutical for entering into and implementing a price‑fixing agreement. The investigation revealed that, starting in November 2021, Guo Moumou coordinated with the four companies to discuss raising the price of sodium dexamethasone phosphate API, reaching an agreement to cease price competition, which resulted in tight market supply and higher prices. In accordance with the Anti‑Monopoly Law, Guo Moumou was fined RMB 5 million; the four companies had their illegal gains confiscated and were fined a total of RMB 355 million; and the relevant persons in charge were each fined RMB 600,000.
Fujian pilot region: Eligible foreign‑exchange expenditures may be subject to post‑payment verification of the tax filing form for outward payments.
On June 12, the People’s Bank of China and the State Administration of Foreign Exchange publicly released the “Several Measures on Financial Support for Fujian to Explore New Paths for Cross-Strait Integrated Development and Build a Demonstration Zone for Such Integration,” outlining 12 policy measures across four key areas.
The “Several Measures” explicitly state that pilot programs for high‑level opening-up in cross‑border trade will be launched in Fuzhou, Xiamen, and Quanzhou. They further aim to streamline the receipt and payment of foreign‑exchange funds under current‑account transactions. Eligible banks, operating prudently and in compliance with regulations, may, in accordance with the “Know Your Customer, Know Your Business, and Due Diligence” principles, handle current‑account foreign‑exchange receipts and payments for qualified pilot enterprises. For service‑trade and other current‑account expenditures exceeding the equivalent of US$50,000 per transaction, the “Tax Filing Form for Outward Payments on Service Trade and Other Current‑Account Items” may be verified retrospectively. The Measures also stipulate that eligible enterprises within Fujian Province may participate in integrated domestic‑and‑foreign‑currency pooling, enabling centralized management of both domestic and overseas funds in multiple currencies, as well as activities such as fund aggregation and surplus‑deficit reallocation, and the centralized collection and settlement of current‑account funds on a net‑off basis.

Taxation
Four departments have clarified matters related to the formulation of the list of enterprises eligible for the value-added tax additional deduction policy for 2025.
In accordance with the “Announcement on the Value-Added Tax Additional Deduction Policy for Advanced Manufacturing Enterprises” (Ministry of Finance and State Taxation Administration Announcement No. 43 of 2023), the “Notice on Matters Related to the Preparation of the List of Advanced Manufacturing Enterprises Eligible for the Value-Added Tax Additional Deduction Policy in 2025,” jointly issued by four departments, was made public on June 9.
Among these, the Notice stipulates that enterprises already listed on the “2024 List of Advanced Manufacturing Enterprises Eligible for the VAT Additional Deduction Policy” and currently holding valid high-tech enterprise status will have their eligibility suspended as of April 30, 2025. Enterprises intending to reapply for inclusion on the 2025 list may submit applications between the 1st and 10th of each month starting in June 2025, with a deadline of April 10, 2026. Newly applying enterprises seeking entry onto the 2025 list may submit applications between the 1st and 10th of each month beginning in September 2025, also with a deadline of April 10, 2026.
The State Taxation Administration has released the latest tax data on the “buy-and-refund immediately” scheme for outbound tax refunds.
On June 11, the State Taxation Administration released the latest data showing that, during the first month of implementing the enhanced outbound tax-refund policy and related service measures (April 27–May 26), the number of tax-refund shops increased significantly, and the total amount of refunds rose markedly.
According to the latest data, in the first month of implementing the policy measures, the number of outbound tax refund applications processed by tax authorities nationwide increased by 116% year on year, and sales at participating refund stores rose by 56% year on year. The “buy-and-refund immediately” pilot program has been expanded nationwide, with the number of transactions surging 32-fold and sales soaring 50-fold compared with the same period last year. An additional 1,303 refund stores have been added, bringing the national total to 5,196—1.4 times the figure at the end of 2024.

Litigation & Arbitration
The Supreme People’s Court has released typical criminal cases that promote the development of the private sector.
On June 9, the Supreme People’s Court released five typical criminal cases that promote the development of the private sector.
The cases published by the Supreme People’s Court include: 1. The bribery case involving Yan and Sun, who are not state functionaries; they accepted bribes totaling over RMB 560 million and were sentenced to fixed-term imprisonment with confiscation of property; 2. The bribery and embezzlement case involving Shi Mouyu, who is not a state functionary; he illegally accepted property and misappropriated company assets, and was sentenced to fixed-term imprisonment with recovery of illicit gains; 3. The misappropriation of funds case involving Zhou Mouping; she misappropriated RMB 4.87 million from her company and was sentenced to fixed-term imprisonment with an order to make restitution; 4. The forced‑transaction case involving Zhang Moujian; he coerced merchants into transacting at inflated prices and was sentenced to fixed-term imprisonment with a fine; 5. The contract fraud case involving Liao Moumao; he obtained substantial property through financial fraud and was sentenced to life imprisonment with confiscation of property.
The Ministry of Justice has revised the Measures for Handling Complaints Regarding Legal Aid.
Recently, the Ministry of Justice promulgated the newly revised Measures for Handling Legal Aid Complaints, which will take effect on June 15, 2025.
The Measures comprise five chapters and 32 articles. The principal revisions include: first, streamlining complaint channels by requiring judicial administrative authorities to publicly disclose complaint information and provide accessible services; second, alleviating the burden on the grassroots level by refining the procedures for receiving, investigating, handling, and providing feedback on complaints, and permitting the consolidated processing of multiple complaints; third, expanding the scope of complaints to cover improper conduct by legal aid institutions or personnel, and extending coverage to trade unions, the Communist Youth League, the All-China Women’s Federation, and the China Disabled Persons’ Federation. A full‑process regulatory framework is implemented, with legal accountability pursued for violations.
The Supreme People’s Procuratorate has released typical cases of cracking down on illegal fundraising crimes.
On June 10, the Supreme People’s Procuratorate issued the “Notice on the Publication of Typical Cases of Prosecutorial Authorities’ Crackdown on Illegal Fundraising Crimes,” selecting and compiling four typical cases, including the illegal fundraising case involving Zhou Moubiao, Li Mou, and others.
Case One involves a certain group that illegally absorbed public deposits totaling RMB 5.03 billion, of which RMB 1.54 billion remains unpaid, primarily through fraudulent elderly‑care tourism projects. In Case Two, Wang and others raised RMB 1.92 billion through a fake foreign‑exchange trading platform, leaving RMB 390 million unpaid. In Case Three, Zhang Feng and others illegally solicited funds amounting to RMB 269 million via the “Xiao Mou Cai Jin Fu” online lending platform, resulting in losses of RMB 105 million. In Case Four, Liu Xiang and others raised RMB 400 million through a gold‑delivery‑deferred‑payment scheme, causing losses of RMB 200 million. By means of early intervention, review of arrest decisions, and review of prosecution, the procuratorial organs have rigorously prosecuted illegal fundraising crimes in accordance with the law, thereby safeguarding financial market order.
The Ministry of Public Security has released five typical cases of bid-rigging crimes.
On June 10, the Ministry of Public Security released five typical cases of bid-rigging crimes, involving Anhui, Jiangxi, Jiangsu, Hunan, and the Xinjiang Production and Construction Corps, among other regions.
In recent years, public security organs nationwide have cracked down rigorously on bid-rigging crimes, successfully solving numerous major cases. In Anhui, Wang and others, through intermediaries, colluded with parties involved in a project to illegally secure the contract for a cultural cemetery, with the amount involved totaling 132 million yuan; in Jiangxi, Luo and others conspired with a tendering agency to unlawfully win a contract for cafeteria catering services, pocketing illicit profits of 8 million yuan; in Jiangsu, Feng and others used bid‑rigging tactics to win a farmland‑development project, with the sum at stake exceeding 34 million yuan; in Hunan, Liu Moufei and others leveraged the qualifications of multiple companies to engage in bid‑rigging, with the total value of the projects involved surpassing 3 billion yuan; and in Xinjiang, Chen and others employed bribery and other means to rig bids for medical‑equipment procurement, with the amount implicated exceeding 38 million yuan. At present, the suspects have been apprehended, and the cases have been transferred to the procuratorial authorities for review and prosecution.
The Supreme People’s Court has released typical cases involving the infringement of personality rights through network information technology.
On June 12, the Supreme People’s Court released six typical cases involving the infringement of personality rights through the use of the internet and information technology.
In Case 4, the account involved unlawfully disclosed information about Chen and incited others to engage in online harassment against him. Meng and Gao, as the joint registrants and administrators of the account, were held liable for infringement by the People’s Court, which underscored that the registrant and user of an online account must assume genuine management responsibilities, use the account lawfully and reasonably, and prevent it from being exploited as a tool for cyberbullying.

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