JC Master Legal News Issue 1156

Key Takeaways for This Issue

The Chinese Institute of Certified Public Accountants has issued a notice to guard against audit risks associated with the annual reports of listed companies accepted in the run-up to the reporting deadline.
On April 14, the Chinese Institute of Certified Public Accountants issued a new risk alert. The Institute has noted that certain listed companies, as the annual report disclosure date approaches, have either failed to engage an auditor for the 2024 annual report or have changed their auditing office shortly before the disclosure deadline. Such practices may significantly affect the audit of the annual report and give rise to substantial audit risks.
The State Administration for Market Regulation has introduced 37 key measures to support the development of private enterprises.
Recently, the State Administration for Market Regulation issued the “List of Key Measures for Implementing the Spirit of the Symposium on Private Enterprises,” outlining 37 priority initiatives.
The Ministry of Commerce responds to the U.S. tariff rates on China.
On April 16, a spokesperson for the Ministry of Commerce answered questions from reporters regarding the U.S. tariff rates on China.
The People’s Court Daily has selected the Top Ten Cases of the People’s Courts for 2024.
On April 17, the People’s Court Daily published its list of the Top Ten Cases of the People’s Courts for 2024, covering criminal, civil, administrative, and other areas.

Finance & Capital Markets
The Chinese Institute of Certified Public Accountants has issued a notice to guard against audit risks associated with the annual reports of listed companies accepted in the run-up to the reporting deadline.
On April 14, the Chinese Institute of Certified Public Accountants issued a new risk alert. The Institute has noted that certain listed companies, as the annual report disclosure date approaches, have either failed to engage an auditor for the 2024 annual report or have changed their auditing office shortly before the disclosure deadline. Such practices may significantly affect the audit of the annual report and give rise to substantial audit risks.
The Chinese Institute of Certified Public Accountants advises accounting offices intending to undertake the annual report audit engagements of relevant listed companies to carefully assess both the complexity of the clients’ business operations and their own professional competence, ensuring that the audit team has sufficient resources and time to conduct a high‑quality audit and exercising prudent judgment in accepting such engagements. Accounting offices already engaged in the annual report audits of these listed companies are required, when performing these engagements, to strictly adhere to the procedures prescribed by auditing standards, obtain sufficient and appropriate audit evidence, and issue audit opinions with due care; they must also maintain thorough communication with the predecessor auditor, paying particular attention to any disagreements between the predecessor auditor and management on significant accounting or auditing matters, as well as to issues concerning management’s integrity. Furthermore, they are prohibited from providing audit services on a contingent‑fee basis, including both direct and indirect contingent fees.

Commercial & Corporate
The State Administration for Market Regulation convened a symposium on fair competition among enterprises.
On April 17, the State Administration for Market Regulation convened the third Enterprise Fair Competition Symposium of 2025, with the theme of addressing illegal and arbitrary fees imposed on businesses to bolster their growth momentum.
The meeting was chaired by Meng Yang, Deputy Director of the State Administration for Market Regulation, and included exchanges with the heads of seven enterprises, including China Ocean Shipping Company and Dongfeng Motor, to identify business challenges and solicit recommendations. The Administration will advance a comprehensive overhaul of enterprise-related fees, focusing on charging practices in areas such as online platforms, administrative approval‑related intermediaries, and industry associations and chambers of commerce, while strengthening oversight and publicly exposing high‑profile cases. By leveraging monitoring and early warning systems, addressing issues at their source, and implementing joint punitive measures, the Administration aims to deepen reforms in regulatory approaches, establish long-term mechanisms, support businesses in operating in compliance with the law, and foster high‑quality economic development.

Six departments have launched the 2025 National Private Enterprise Service Month campaign.
On April 15, the website of the Ministry of Human Resources and Social Security published the “Notice from the Ministry of Human Resources and Social Security and Five Other Departments on Launching the 2025 National Private Enterprise Service Month Campaign.” The campaign will run from mid-April to mid-May 2025.
The notice states that the theme of the event is to support the development of the private sector and promote high-quality, full employment. The target groups include private enterprises, small and micro‑enterprises, individual business households, as well as college graduates, demobilized military personnel, rural migrant workers, and others. The activities will encompass enhanced policy outreach, the organization of specialized recruitment events, proactive services for businesses, and measures to facilitate employment among priority groups.

The State Administration for Market Regulation has introduced 37 key measures to support the development of private enterprises.
Recently, the State Administration for Market Regulation issued the “List of Key Measures for Implementing the Spirit of the Symposium on Private Enterprises,” outlining 37 priority initiatives.
The “List” proposes, in terms of removing barriers and promoting fair competition, the implementation of the Measures for the Implementation of the Regulations on Fair Competition Review, the refinement of rules governing the review of concentrations of undertakings, and the launch of a special campaign to address the abuse of administrative power to exclude or restrict competition. In strengthening regulation, it calls for the issuance of the Measures for Handling Illegal and Non‑Compliant Charges Imposed on Enterprises, the standardization of platform‑related fee practices, the advancement of service‑oriented law enforcement, and the protection of the legitimate rights and interests of private enterprises. With regard to targeted support, it will carry out initiatives such as advertising compliance assistance for enterprises and quality‑certification enhancement programs for small and micro‑enterprises, while encouraging private enterprises to participate in the formulation and revision of standards and stepping up training of international standardization professionals.

Taxation TAXATATION
The Ministry of Commerce responds to the U.S. tariff rates on China.
On April 16, a spokesperson for the Ministry of Commerce answered questions from reporters regarding the U.S. tariff rates on China.
Q: On April 15, U.S. Eastern Time, the White House website released a fact sheet on the Section 232 investigation into critical minerals and related products, noting that, in response to the United States’ “reciprocal tariffs,” China has imposed retaliatory measures, resulting in tariffs of up to 245% on Chinese exports to the U.S. Does this mean the U.S. is once again raising tariffs on China? What is the Ministry of Commerce’s comment on this?
A: The Chinese side has noted that, cumulatively, tariffs imposed on certain Chinese exports to the United States have reached as high as 245% under various designations. China has previously reiterated its position on the U.S.’s unilateral imposition of additional tariffs on multiple occasions, and will not engage with this meaningless tariff‑counting exercise by the U.S. However, should the U.S. persist in substantively infringing upon China’s legitimate rights and interests, China will resolutely respond and see the matter through to the end.

The 16th batch of the catalog of vehicles eligible for vehicle acquisition tax exemptions has been released.
On April 14, the Ministry of Industry and Information Technology issued Announcement No. 8 of 2025, publishing, with the approval of the State Taxation Administration, the “Catalogue of Energy-Saving and New-Energy Vehicle Models Eligible for Reduction or Exemption from Vehicle and Vessel Tax” (72nd batch) and the “Catalogue of New-Energy Vehicle Models Eligible for Reduction or Exemption from Vehicle Acquisition Tax” (16th batch).
Among them, the 16th batch of the “Catalogue of New Energy Vehicle Models Eligible for Reduction or Exemption from Vehicle Acquisition Tax” comprises two categories: newly added models and models that, after re‑submission, meet the latest technical requirements. The new models include 50 all‑electric passenger vehicles, among which are the SAIC‑GM‑Wuling Bingo Plus, Dongfeng Fengshen L7, and Audi FAW Q6L, among others.
On April 13, a spokesperson for the Ministry of Commerce answered questions from reporters regarding the U.S. side’s exemption of “reciprocal tariffs” on certain products.
A spokesperson stated that on April 12, U.S. Eastern Time, the U.S. side released a relevant memorandum exempting certain products—including computers, smartphones, semiconductor manufacturing equipment, and integrated circuits—from “reciprocal tariffs.” China is currently assessing the implications of this measure. This marks the second adjustment to related policies, following the U.S. decision on April 10 to temporarily suspend the imposition of steep “reciprocal tariffs” on some trading partners. China urges the U.S. side to take seriously the rational voices of the international community and domestic stakeholders, take a significant step toward correcting its mistakes, and completely rescind the erroneous practice of imposing “reciprocal tariffs.”

LITIGATION & ARBITRATION
The Supreme People’s Court has released judicial trial data for the first quarter of 2025.
In the first quarter of 2025, courts nationwide accepted and adjudicated 10.799 million cases, a year-on-year increase of 26.92%. Among these, civil and commercial cases numbered 7.115 million, up 41.00% year over year, while criminal cases totaled 386,000, down 6.68% compared with the same period last year. People’s courts actively participated in comprehensive social security governance, enhancing the quality and efficiency of adjudication; the case-to-case ratio decreased by 0.11, and the appeal rate fell by 4.07 percentage points. Within criminal cases, drug-related offenses declined by 28.54% year over year. In civil and commercial matters, disputes arising from motor vehicle traffic accidents increased by 59.21% year over year. The number of administrative cases accepted rose by 21.67% year over year. In enforcement proceedings, the amount successfully enforced grew by 9.48% compared with the previous year.

Beijing has once again reached a new high in the global ranking of the most popular arbitration venues.
The 2025 International Arbitration Survey Report shows that Beijing has, for the first time, risen to fourth place among the world’s most popular arbitration venues, trailing only London, Singapore, and Hong Kong, China.
In recent years, Beijing has made significant progress in reforming its arbitration institutional framework, including the establishment of the Beijing International Dispute Resolution Development Center and the advancement of efforts to build an international commercial arbitration center. Moreover, Beijing’s arbitration institutions have distinguished themselves in both the number of international cases they handle and the total value of those cases, making the city a preferred destination for resolving international commercial disputes. International arbitration institutions, such as the Hong Kong International Arbitration Centre, have also set up representative offices in Beijing, further bolstering the city’s standing in the global arbitration arena.

The People’s Court Daily has selected the Top Ten Cases of the People’s Courts for 2024.
On April 17, the People’s Court Daily published its list of the Top Ten Cases of the People’s Courts for 2024, covering criminal, civil, administrative, and other areas.
The ten landmark cases include: a series of corruption cases in Chinese football; the patent‑rights dispute between Zhen Company and Rui Company; the case of the drowning of two siblings in Chongqing; the settlement of a collective securities‑class action in China; the public‑interest lawsuit concerning Yang’s dissemination of false online information; the illegal introduction of invasive alien species; a dispute over liability for damages arising from a ship collision; an infringement case involving trade secrets in the new‑energy‑vehicle sector; a series of compensation cases related to the expropriation of a hardware‑manufacturing company; and an enforcement‑implementation case involving a chemical‑company. These cases span areas such as environmental and resource adjudication, intellectual‑property protection, and administrative disputes, demonstrating the people’s courts’ comprehensive effectiveness in upholding fairness and justice and advancing the rule of law.

The determination of the crime of rape is unrelated to whether an engagement has been made; online reports are inaccurate. The second-instance court upheld the original verdict in the “engagement‑related rape case.”
On April 16, the Intermediate People’s Court of Datong City, Shanxi Province, delivered its second-instance verdict in the widely publicized “engagement‑rape case,” upholding the first-instance sentence of three years’ imprisonment for the defendant, Xi Moumou, and dismissing the claim for the return of the bride price.
With regard to the crime of rape itself, the presiding judge emphasized that sexual intercourse with a woman must be consensual and cannot occur against her will, regardless of whether the parties are engaged. As for issues that have drawn public attention—such as alleged “marriage fraud,” disputes over bride price, the impact of the hymen’s condition on the determination of rape, and whether public opinion has interfered with the administration of justice—the presiding judge also disclosed additional case details to supplement the facts, clarify the law, and address the doubts raised in public regarding the victim.
The court found that Xi Moumou forcibly engaged in sexual intercourse against the victim’s will, constituting the crime of rape. The evidence—including telephone recordings, the victim’s statement, the mother’s testimony, 110 police‑dispatch records, on‑site examination, and DNA analysis—formed a complete chain of evidence. Regarding the dispute over the betrothal gift, the court determined that the woman had already returned the gift to the marriage‑agency, but the man refused to accept it, and thus dismissed his claim. During the second instance, the court considered probation; however, because Xi Moumou did not admit guilt or express remorse and failed to obtain the victim’s forgiveness, the original sentence was upheld.

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