JC Master Legal News Issue 1162

Key Takeaways for This Issue

The CPC Central Committee and the State Council: Improve the modern enterprise system with Chinese characteristics and guide private enterprises to establish rigorous audit oversight systems and accounting frameworks.
On May 26, the “Opinions of the General Office of the CPC Central Committee and the General Office of the State Council on Improving the Modern Enterprise System with Chinese Characteristics” were officially made public, comprising eight sections and 19 specific measures.
The State Administration for Market Regulation is promoting a “no‑trace” approach to removing entities from the List of Abnormal Operations.
Recently, the State Administration for Market Regulation issued the “Notice on Implementing Relevant Provisions of the Measures for the Administration of the List of Enterprises with Abnormal Operations,” stipulating that for business entities that have been removed from the list of enterprises with abnormal operations, the corresponding information regarding their inclusion on the list will no longer be publicly disclosed, thereby ensuring that removal from the list leaves no trace.
The Supreme People’s Court has released the third batch of typical cases marking the fifth anniversary of the promulgation of the Civil Code.
On May 27, the Supreme People’s Court released the third thematic collection of “Typical Cases Marking the Fifth Anniversary of the Promulgation of the Civil Code,” focusing on upholding strict and impartial justice to support and safeguard high-quality economic and social development.

Finance & Capital Markets
The CPC Central Committee and the State Council: Improve the modern enterprise system with Chinese characteristics and guide private enterprises to establish rigorous audit oversight systems and accounting frameworks.
On May 26, the “Opinions of the General Office of the CPC Central Committee and the General Office of the State Council on Improving the Modern Enterprise System with Chinese Characteristics” were officially made public, comprising eight sections and 19 specific measures.
The Opinions propose leveraging the capital market to advance corporate governance. They call for supporting listed companies in engaging institutional investors holding at least 5% of shares as active shareholders, establishing audit committees with a majority of independent directors and dedicated meetings for independent directors, and improving information disclosure requirements in the corporate governance domain; strengthening internal management by guiding private enterprises to refine their internal anti-corruption frameworks, and instituting rigorous auditing and accounting systems; and enhancing the comprehensive regulatory framework for enterprises. This includes refining financial regulation, reinforcing capital adequacy oversight and corporate governance supervision, implementing consolidated reporting for financial holding companies, rigorously preventing and strictly regulating corporate financial fraud, and, where applicable, introducing a budgetary cycle-based management system for total payroll in qualified state-owned enterprises.
With regard to safeguard measures, the Opinions call for the refinement of relevant laws and regulations and the promotion of revisions to the Law on State-owned Assets of Enterprises, among others. They also emphasize the need to standardize the professional conduct of accounting, consulting, and legal offices, strengthen oversight of their practice, and leverage their roles in professional supervision and specialized services.
Shanghai launches a pilot program for real estate trust registration, addressing challenges in property rights conofficeation and registration.
On May 26, the Office of the Financial Commission of the CPC Shanghai Municipal Committee, together with five other departments, jointly issued the “Notice on Launching a Pilot Program for Real Estate Trust Registration,” which will be implemented on a trial basis for one year from the date of issuance.
The Notice establishes an innovative framework characterized by “multi‑scenario coverage, end‑to‑end closed-loop management, and inter‑departmental coordination,” aimed at addressing the core challenge of establishing property rights for real estate used as trust assets. The Notice comprises four main sections: First, it defines key terms such as real estate trusts and real estate trust registration, and delineates the scope of this pilot program. Specifically, the scope applies to trust institutions within Shanghai that conduct real estate trust business using real estate located within the administrative boundaries of Shanghai. Second, it sets out the compliance requirements for engaging in real estate trust activities, specifying the legal and regulatory obligations governing trustees’ trust‑management practices, the use of trust mechanisms by settlors, and the lawful and compliant status of the real estate assets being transferred. Third, it outlines the procedures for registering real estate trust assets, including pre‑registration, execution of trust documents, submission of supporting registration documents, and completion of trust‑property registration. Fourth, it refines and enhances related ancillary mechanisms.

Commercial & Corporate
Four departments are launching the 2025 “100 Events, 10,000 Enterprises” initiative to facilitate integrated collaboration and matchmaking among large, medium, and small enterprises.
On May 22, the Ministry of Industry and Information Technology, the State-owned Assets Supervision and Administration Commission of the State Council, the National Intellectual Property Administration, and the All-China Federation of Industry and Commerce jointly issued the “Notice on Launching the 2025 ‘Hundred Events, Ten Thousand Enterprises’ Initiative for Integrated Collaboration among Large, Medium, and Small Enterprises.”
The notice aims to foster integrated innovation among large, medium, and small enterprises, with activities spanning the entire year of 2025. Key initiatives include organizing specialized matchmaking events for industrial chains to help SMEs integrate into the innovation networks of larger offices; facilitating connections between central state-owned enterprises, private companies, and SMEs to promote the commercialization of patents; and encouraging localities to leverage their industrial strengths to host a variety of matchmaking activities, thereby supporting SMEs in expanding their markets.
The State Administration for Market Regulation is promoting a “no‑trace” approach to removing entities from the List of Abnormal Operations.
Recently, the State Administration for Market Regulation issued the “Notice on Implementing Relevant Provisions of the Measures for the Administration of the List of Enterprises with Abnormal Operations,” stipulating that for business entities that have been removed from the list of enterprises with abnormal operations, the corresponding information regarding their inclusion on the list will no longer be publicly disclosed, thereby ensuring that removal from the list leaves no trace.
As of now, the National Enterprise Credit Information Publicity System has ceased to publish 48.4247 million entries on the List of Abnormal Operations, involving 25.5124 million entities. The newly revised Measures for the Administration of the List of Abnormal Operations will take effect on May 1, 2025; entities that apply to be removed and pass the review will no longer have their abnormal information publicly disclosed.
Three departments: Strengthen financial support and accelerate the digital transformation of the electronic information manufacturing industry.
On May 27, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the National Data Administration jointly issued the “Implementation Plan for the Digital Transformation of the Electronic Information Manufacturing Industry,” which outlines 18 key tasks across five priority areas.
The Plan proposes strengthening the enabling role of advanced computing and artificial intelligence. It encourages leading enterprises to develop industry‑level and scenario‑specific large models—built on general‑purpose foundation models—that can adapt to the complex task environments of the electronic information manufacturing sector and possess cross‑modal data‑processing capabilities. The plan aims to establish a set of high‑quality, broadly applicable and scalable datasets, cultivate benchmark application scenarios, and drive comprehensive, end‑to‑end optimization and upgrading across the entire electronic information manufacturing value chain. In terms of implementation, the Plan calls for enhanced financial support. It seeks to make full use of existing dedicated funding channels, such as major science and technology projects and key R&D programs, to support electronic information manufacturers in tackling common, critical technologies for digital transformation and in advancing digital‑plus‑intelligent upgrades. Furthermore, it will leverage the empowering role of the national industry‑finance cooperation platform by including advanced, suitable technologies within its scope of support and, through innovative financial products and other measures, encourage financial institutions to strengthen their backing for digital transformation.

Taxation TAXATATION
The State Taxation Administration has issued the Measures for the Administration of Taxpayer Credit.
On May 30, the State Taxation Administration issued the Measures for the Administration of Taxpayer and Payer Credit, which will take effect on July 1, 2025. The Measures comprise six chapters and thirty-six articles, setting forth clear provisions on the collection of credit information, evaluation indicators, the determination of evaluation results, and their application.
In recent years, as application scenarios have continued to expand, strong tax compliance has increasingly become an intangible asset for enterprises, seamlessly integrated into their development strategies. According to reports, the tax authorities have conducted taxpayer credit assessments for 11 consecutive years. The Measures consolidate the normative documents and relevant provisions on taxpayer credit management issued since 2014, maintaining the overall stability of the assessment system and its outcomes while addressing key concerns raised by market entities. The aim is to further enhance credit‑building efforts in the tax field, encourage compliant business practices, and thereby better support high‑quality economic and social development.

Litigation & Arbitration
The Ministry of Ecology and Environment has issued the Measures for the Administration of Listed Supervision and Oversight of Ecological and Environmental Violation Cases.
On May 26, the website of the Ministry of Ecology and Environment issued the “Notice on the Issuance of the Measures for the Supervised Management of Ecological and Environmental Violation Cases,” thereby abolishing the 2009 version.
The Measures set forth the conditions, procedures, and scope of case‑by‑case oversight and supervision for ecological and environmental violations. Eligible cases include those that have drawn strong public concern or have resulted in significant pollution or ecological damage. The oversight and supervision process comprises on-site verification, issuance of official notices, and public disclosure of relevant information. Matters subject to oversight encompass administrative penalties, orders for corrective action, seizure and impoundment, and referral to public security authorities. The standard processing period does not exceed one year, with extensions available for particularly complex cases. To lift the oversight designation, a remediation report must be submitted and approved following verification.
The Supreme People’s Court has released the third batch of typical cases marking the fifth anniversary of the promulgation of the Civil Code.
On May 27, the Supreme People’s Court released the third thematic collection of “Typical Cases Marking the Fifth Anniversary of the Promulgation of the Civil Code,” focusing on upholding strict and impartial justice to support and safeguard high-quality economic and social development.
The typical cases released this time include: 1. The Nanjing Municipal People’s Procuratorate v. Xu and Liu civil public interest litigation case on ecological damage, which underscores the need to strengthen biosafety management; 2. The contract dispute case between a Tianjin heat‑transfer equipment company and a Hancheng heating company, which safeguards the legitimate rights and interests of the technical service provider; 3. The trade secret infringement case involving Ji Company and others v. Wei Company and others, which highlights judicial protection of intellectual property rights; 4. The personality rights infringement case brought by Yin against a Beijing smart technology company and others, which protects sound‑related rights; 5. The application by the Tianhe South Subdistrict Office for the compulsory liquidation of a Tianhe‑based company, which supports the lawful liquidation of non‑corporate legal persons; 6. The defamation dispute case between a clay‑pot soup restaurant and Dai, which upholds the personal rights and dignity of business entities.
The Ministry of Justice plans to introduce the “Regulations on Commercial Mediation.”
On May 27, the Ministry of Justice issued a notice soliciting public comments on the “Regulations of the People’s Republic of China on Commercial Mediation (Draft for Public Comment),” with the deadline for submitting feedback set for June 25, 2025.
The Regulations clearly define the scope of application for commercial mediation and set forth the requirements for establishing commercial mediation institutions and for commercial mediators. Commercial mediation activities shall adhere to the principles of voluntariness, legality, good faith, and confidentiality, with mediators required to remain impartial. The Regulations support the development of cross-border commercial mediation by permitting foreign commercial mediation organizations to establish branches within free trade zones and by promoting the harmonization of commercial mediation rules across the Guangdong–Hong Kong–Macao Greater Bay Area. Agreements reached through commercial mediation may be submitted for judicial conofficeation or arbitration, and where enforcement involves foreign jurisdictions, enforcement may be sought in accordance with relevant international treaties.
The Supreme People’s Procuratorate has released a batch of typical cases involving the crime of dangerous operations.
On May 28, the Supreme People’s Procuratorate released a batch of typical cases involving the crime of hazardous operations, covering the three categories of work stipulated in Article 134‑1 of the Criminal Law and encompassing four high-risk industrial sectors, including offshore operations and metal smelting.
The six typical cases released by the Supreme People’s Procuratorate include matters from Zhoushan in Zhejiang, Bo’ai in Henan, Changde in Hunan, Nanning in Guangxi, Chengdu in Sichuan, and Jiulongpo in Chongqing, focusing on refining the criteria for assessing the reality, urgency, and severity of dangers. These cases illustrate the procuratorial organs’ practices in handling such matters; for example, in the case involving Zhao, a substantive review was conducted—based on evidence including the accident investigation report—of the actual danger posed by the illegal storage and unauthorized transportation of diesel fuel. In the case of Wang, a multidimensional analysis—including on-site re‑inspection and expert consultation—was employed to establish the causal link between the unlawful conduct and the imminent danger.
The Supreme People’s Court has released the 21st batch of selected Q&A from the Legal Answers Network, focusing on the topic of people’s jurors.
On May 29, the People’s Court Daily published “Selected Q&A from the Legal Answer Network (Batch No. 21) — Special Issue on People’s Assessors.”
Through responses to questions, the Supreme People’s Court has clarified the following points: 1. People’s jurors may participate in cases remanded for retrial or subject to a retrial at the first instance; whether their participation is appropriate shall be determined on a case-by-case basis. 2. The composition of the collegial panel in criminal cases involving ancillary public-interest civil litigation shall be decided according to the social impact of the case; where the conditions are met, people’s jurors may take part. 3. When a people’s juror participates in litigation as a party or an agent, whether designation of jurisdiction by a higher court is required shall be determined on a case-by-case basis. 4. Upon expiration of a people’s juror’s term of office, they may not continue to participate in pending cases and must be replaced in accordance with the law.

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