JC Master Legal News Issue 1152

Key Takeaways for This Issue

The Shanghai Stock Exchange has formulated a new round of the “Three-Year Action Plan to Enhance the Quality of Listed Companies on the Shanghai Market.”
To further implement the spirit of the Central Economic Work Conference and the Central Financial Work Conference, and to carry out the State Council’s “Several Opinions on Strengthening Regulation, Preventing Risks, and Promoting High-Quality Development of the Capital Market,” the Shanghai Stock Exchange, under the guidance of the China Securities Regulatory Commission, has recently formulated and finalized a new round of the “Three-Year Action Plan for Enhancing the Quality of Listed Companies on the Shanghai Stock Exchange.”
The China Securities Regulatory Commission has issued a draft for public comment to revise the regulatory responsibilities of its branch institutions.
On March 18, the China Securities Regulatory Commission (CSRC) launched a public consultation on the “Regulations on the Regulatory Responsibilities of CSRC Branch Institutions (Draft for Comments, Revised Edition),” with the deadline for submitting feedback set for April 16, 2025.
Seven departments have issued a document to optimize the business environment in the field of intellectual property.
On March 21, the website of the National Intellectual Property Administration published the “Opinions of the National Intellectual Property Administration, the Ministry of Education, the Ministry of Science and Technology, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the National Copyright Administration, and the Chinese Academy of Sciences on Further Optimizing the Business Environment in the Field of Intellectual Property.”
The website of the National People’s Congress of China has published a list of currently effective laws.
On March 17, the website of the National People’s Congress of China published a list of currently effective laws, totaling 305.
Finance & Capital Markets
The Shanghai Stock Exchange has formulated a new round of the “Three-Year Action Plan to Enhance the Quality of Listed Companies on the Shanghai Market.”
To further implement the spirit of the Central Economic Work Conference and the Central Financial Work Conference, and to carry out the State Council’s “Several Opinions on Strengthening Regulation, Preventing Risks, and Promoting High-Quality Development of the Capital Market,” the Shanghai Stock Exchange, under the guidance of the China Securities Regulatory Commission, has recently formulated and finalized a new round of the “Three-Year Action Plan for Enhancing the Quality of Listed Companies on the Shanghai Stock Exchange” (hereinafter referred to as the “Three-Year Action Plan”).

Enhancing the quality of listed companies is the primary objective of regulatory oversight and services for the listed‑company sector. In recent years, under the guidance of the China Securities Regulatory Commission, the Shanghai Stock Exchange has successively formulated two three-year action plans. Thanks to the concerted efforts of all stakeholders, these measures have been effectively implemented and have yielded tangible results, further reinforcing the overall trend of improving corporate quality in the Shanghai market.

First, the market structure of listed companies has become more favorable. Over the past three years, the number of manufacturing offices on the Shanghai Stock Exchange has increased from 1,237 to 1,469, with their market share rising by 2 percentage points; technology‑related companies have grown from 483 to 651, expanding their market share by 5 percentage points; private‑sector offices have expanded from 1,231 to 1,480, increasing their market share by 3 percentage points; and the number of companies with a market capitalization exceeding RMB 100 billion has risen from 86 to 100, while the median valuation multiple has climbed from 10.13x to 16.21x, reflecting a compound annual growth rate of 26%. Moreover, a cohort of high‑quality, internationally competitive listed companies has emerged across various sectors, with the median valuation multiple of industry leaders advancing from 14.97x to 18.78x.

Second, the fundamentals underpinning corporate development have become more stable. On the front of steady growth, over the past three years, Shanghai‑listed companies have posted compound annual growth rates of 8.44% in operating revenue and 8.87% in net profit; for STAR Market offices, these figures stand at 24.26% and 10.19%, respectively. In terms of stable investment, the ratio of net cash inflows from operating activities to net profit has more than doubled, while capital expenditures have risen from RMB 2.57 trillion to RMB 3.39 trillion. Regarding stable consumption, in 2023, net profits in sectors such as automobiles, home appliances, and beauty & personal care grew year on year by 17.14%, 8.18%, and 17.36%, respectively; meanwhile, tourism attractions, hotels and catering, and film and theater chains all turned around from losses, signaling a gradual release of consumer demand. As for employment stability, the number of jobs provided by Shanghai‑listed companies increased from 17.09 million to 18.00 million, with indirect employment effects estimated to exceed 270 million people; emerging industries—including power equipment, computers, and electronics—saw employment growth rates of 51.58%, 16.35%, and 13.18%, respectively. In risk‑management terms, outstanding balances of fund occupation and illegal guarantees have fallen by more than 90% from their peaks, and the number of companies with high‑ratio share pledges has declined by nearly 80% compared with its peak, indicating that potential risks continue to recede.

Third, the growth momentum of the real economy has become even more “innovative.” Shanghai‑listed companies have actively implemented an innovation‑driven development strategy, with cumulative R&D spending reaching RMB 2.7 trillion over the past three years, at a compound annual growth rate exceeding 17%. Among them, STAR Market–listed offices have posted a compound R&D growth rate of over 28%, and in the first three quarters of 2024, their R&D outlays surpassed RMB 100 billion—more than twice their net profits for the same period. The STAR Market now boasts over a hundred companies in the integrated circuits and biopharmaceutical sectors, while new energy, new materials, and high‑end equipment manufacturing have begun to take shape. Meanwhile, emerging industries such as artificial intelligence, gene technology, and quantum information are accelerating their deployment, gradually forming a development landscape characterized by complete industrial chains and collaborative innovation. The “Eight Measures for the STAR Market” and the “Six Measures on M&A” provide policy support to listed companies seeking to harness mergers and acquisitions to cultivate new growth drivers. Since the release of the “Six Measures on M&A,” nearly 500 asset‑related transactions have been completed, with major asset restructurings up nearly 300% year over year; roughly 60% of these deals involve emerging productivity sectors such as semiconductors, biopharmaceuticals, and new energy.

Fourth, listed companies have become more “attractive” to investors. The “three‑investment” philosophy has been steadily implemented and is yielding tangible results: among companies with market capitalizations exceeding RMB 100 billion, stock prices have risen cumulatively by 38% over the past three years; meanwhile, offices receiving an A‑grade rating for information disclosure have seen their share prices increase by 15% within the same period. Investor returns have strengthened markedly, with cumulative cash dividends totaling RMB 5.2 trillion over the past three years—accounting for 171% of the total proceeds raised through IPOs and secondary offerings during the same period—and nearly 150 companies have maintained dividend yields above 3% for three consecutive years. Investor relations continue to improve, with annual earnings call presentations achieving full coverage for three consecutive years; in 2023 alone, these presentations attracted nearly 40 million views, a 230% year‑on‑year increase. In line with sustainable development principles, nearly 1,200 Shanghai‑listed companies released ESG‑related reports for 2023, 342 listed offices were included in MSCI’s ESG ratings, and 100 companies saw their ratings upgraded. Long‑term capital is accelerating its entry into the market, with institutional investors’ holdings rising from RMB 34.33 trillion to RMB 39.35 trillion, at an average annual compound growth rate exceeding 7%. Index‑based investing is expanding rapidly: Shanghai‑listed equity ETFs now provide comprehensive coverage of major broad‑market indices and CSI first‑tier sectors, with assets under management surpassing RMB 2 trillion—an increase of nearly 200%; on the STAR Market, there are now 66 ETF products, including the STAR 50 ETF, which manages nearly RMB 180 billion.

While development and progress continue, the foundation for high-quality growth among Shanghai-listed companies remains to be consolidated, and there is still a gap compared with investors’ expectations. In-depth study and implementation of the spirit of the Third Plenary Session of the 20th CPC Central Committee, the Central Economic Work Conference, and the Central Financial Work Conference, the SSE adheres to a people-centered value orientation, takes strengthening the capacity-building of listed companies as its key focus, and ensures robust risk prevention and stringent regulation. With the overarching goal of enhancing the quality of listed companies, and building on lessons learned from previous efforts, the Exchange has formulated a new three-year action plan. Compared with the preceding plan, this iteration places greater emphasis on the following areas.

First, there is a stronger emphasis on rigorous oversight and stringent regulation, with coordinated efforts to advance comprehensive measures for deterring and punishing financial fraud. Financial fraud is a malignant tumor in the capital market and a persistent, intractable problem that severely hinders the improvement of listed companies’ quality. The Three-Year Action Plan adopts a problem‑oriented approach, focusing on the weak links that currently undermine the effectiveness of anti‑fraud and fraud‑prevention efforts. It explicitly calls for the full implementation of the Guidelines on Comprehensive Measures to Deter and Punish Financial Fraud in the Capital Market, further enhancing the ability to detect clues of financial fraud and ensuring seamless information flow across key stages, including issuance review, ongoing supervision, on-site inspections, and accounting oversight. Leveraging technological innovation, the plan seeks to make effective use of tools such as artificial intelligence. While imposing strict penalties on financial fraud, it also takes integrated action to address related misconduct, including misappropriation of funds, unauthorized guarantees, and illegal share reductions.

Second, we will place greater emphasis on investment value and encourage listed companies to continuously enhance returns for investors. The quality of listed companies is the foundation of their investment value, and this quality is most clearly reflected in the returns they deliver to shareholders. The Three-Year Action Plan focuses squarely on this key issue, calling for the in-depth and effective implementation of a special initiative to “improve quality, boost efficiency, and prioritize returns,” while reinforcing the principal responsibility of listed companies for market‑capitalization management. It also aims to guide cash dividends, share buybacks, and additional share purchases, thereby strengthening listed companies’ awareness and capacity to deliver higher returns to investors. Furthermore, it seeks to leverage the capital market’s role as the primary channel for mergers and acquisitions and restructuring, bolster the ESG ecosystem, refine the delisting mechanism, and attract medium- and long-term capital into the market.

Third, we will place greater emphasis on principal responsibility and leverage corporate governance to enhance quality. Effective corporate governance is a crucial foundation for the sound development of listed companies and an intrinsic requirement for improving their quality. The Three-Year Action Plan takes corporate governance as its key lever: on the one hand, it coordinates the implementation of reforms to the independent director system, encourages audit committees to strengthen their role in financial and accounting oversight, and mobilizes all types of shareholders to actively participate in corporate governance, while steadily expanding the coverage of the “one-click” voting platform at shareholder meetings, thereby fostering endogenous momentum for elevating corporate quality. On the other hand, it strengthens regulatory constraints on the conduct of controlling shareholders and actual controllers, imposes strict penalties for serious violations, and establishes robust institutional safeguards to ensure continuous improvement in corporate quality.

Fourth, we will more effectively pool resources and accelerate the development of a market ecosystem that meets the requirements of high-quality development. Enhancing the quality of listed companies is a complex, systemic undertaking that calls for consensus-building and concerted efforts among listed offices, regulatory authorities, and all market participants. The Three-Year Action Plan adopts a systems‑based approach, proposing to substantially expand the coverage of on-site visits and research into listed companies, proactively strengthen information sharing with local governments, intensify joint regulatory and enforcement initiatives with relevant departments, and facilitate the active participation of the media and the general public in social oversight.

Fifth, we will adopt a more proactive and decisive approach to provide comprehensive support for high-quality development. Enhancing the quality of listed companies is an essential component of the capital market’s role in serving the real economy. To ensure the effective implementation of the Three-Year Action Plan, the Shanghai Stock Exchange will leverage its strengths—its concentration of large-cap blue-chip stocks, its leadership in hard‑tech sectors, and its diversified product offerings spanning equities, bonds, funds, derivatives, and public REITs—while strengthening its regulatory and service capabilities, innovating bond‑financing instruments, and expanding its index‑product suite. We will encourage listed companies to actively utilize mergers and acquisitions, refinancing, science‑and‑technology innovation bonds, green bonds, and other tools to accelerate the transformation and upgrading of traditional industries and foster the growth of emerging sectors, thereby boosting the quality and efficiency of listed offices.

Going forward, under the guidance of the China Securities Regulatory Commission, the Shanghai Stock Exchange will diligently implement the specific work plans outlined in the Three-Year Action Plan. Working collaboratively with all market participants, it aims to, over the next three years, further expand among Shanghai‑listed companies a cohort that proactively supports the overarching national reform and development agenda, demonstrates sustained strong operating performance, excels in technological innovation, delivers tangible returns to investors, and actively fulfills its social responsibilities—thus embodying the requirements of high‑quality development.

The Shanghai Stock Exchange and the Brazilian Securities and Futures Exchange have signed a Memorandum of Understanding on ETF mutual access, marking a new phase in China–Brazil capital market cooperation.
To further deepen the high‑level opening-up of China’s capital market and facilitate foreign investment, on March 20, the Shanghai Stock Exchange and the Brazilian Securities and Futures Exchange signed a Memorandum of Understanding on ETF mutual access cooperation (hereinafter referred to as the ETF Mutual Access Special Agreement), marking a new stage in China–Brazil capital market cooperation.

In 2005 and 2011, the Shanghai Stock Exchange signed memoranda of understanding on cooperation with the Brazilian Securities Exchange—the predecessor of B3—and the Brazilian Futures Exchange, respectively. The two exchanges have established a close cooperative relationship in areas such as market data sharing, personnel exchanges, and market promotion. The signing of this special agreement on ETF mutual access represents an important step taken by both exchanges to actively implement the outcomes of the Seventh Meeting of the China–Brazil High-Level Coordination and Cooperation Committee. It marks a further advance in their pragmatic cooperation toward higher quality and greater sophistication, and will help stakeholders in the capital markets of both countries deepen their mutual understanding and strengthen collaboration.

Going forward, under the coordinated guidance of the China Securities Regulatory Commission, the Shanghai Stock Exchange will diligently carry out all preparatory work and, when the time is right, facilitate the launch of ETF products, thereby offering investors in both countries a broader range of investment options.

The China Securities Regulatory Commission has issued a draft for public comment to revise the regulatory responsibilities of its branch institutions.
On March 18, the China Securities Regulatory Commission (CSRC) launched a public consultation on the “Regulations on the Regulatory Responsibilities of CSRC Branch Institutions (Draft for Comments, Revised Edition),” with the deadline for submitting feedback set for April 16, 2025.

This revision focuses on four key areas: the principal responsibilities of branch institutions and their corresponding working mechanisms, regulatory duties, risk prevention and resolution, and other related responsibilities. Specifically, with regard to regulatory duties, the draft for public comment clarifies the supervisory functions of branch institutions over the guidance process for publicly issued and listed stocks, and explicitly includes cybersecurity and information security, investor protection, and integrity oversight and enforcement among the items subject to routine inspections. In terms of risk prevention and resolution, the draft expands the scope of sources for early‑warning information and risk leads that require verification, and further refines the mechanisms by which branch institutions manage risks associated with delisted companies, including emergency response, information sharing, and ongoing supervision.

The Shanghai and Shenzhen stock exchanges have revised the Regulatory Guidelines for Evaluating Information Disclosure by Listed Companies, adding significant doubts about the authenticity of a company’s financial statements as grounds for point deductions.
The Shanghai and Shenzhen stock exchanges have issued the “Shanghai Stock Exchange Self-Regulatory Guidance No. 9 for Listed Companies—Evaluation of Information Disclosure Work (Revised March 2025)” and the “Shenzhen Stock Exchange Self-Regulatory Guidance No. 11 for Listed Companies—Evaluation of Information Disclosure Work (Revised 2025),” with the aim of implementing the State Council’s “Several Opinions on Strengthening Regulation, Preventing Risks, and Promoting High-Quality Development of the Capital Market.”

The Shenzhen Stock Exchange stated that this revision, while preserving the original framework of the Guidelines, introduces improvements aimed at emphasizing investor‑return orientation, strengthening the principal responsibility of listed companies for information disclosure, and encouraging them to better fulfill their reputational‑management obligations. Specifically, with respect to reinforcing the principal responsibility of listed companies for information disclosure: first, regulatory oversight of information disclosure has been further tightened; in cases where critical textual or numerical information is repeatedly misstated or where supplementary corrections are frequently required, the penalty points imposed will be increased. Second, the list of material adverse matters has been expanded to include instances such as significant doubts regarding the authenticity of a company’s financial statements, irregularities in the management and use of raised funds, and failure to provide directors and senior management with the necessary safeguards to perform their duties in accordance with the law.

The China Securities Regulatory Commission has issued the Regulatory Guidelines on Bankruptcy and Reorganization of Listed Companies.
On March 14, the China Securities Regulatory Commission issued and implemented “Regulatory Guidance No. 11 for Listed Companies—Matters Related to Bankruptcy and Reorganization of Listed Companies,” which serves as a supporting document to the “Minutes of the Symposium on Effectively Adjudicating Bankruptcy and Reorganization Cases Involving Listed Companies” jointly issued by the Supreme People’s Court and the CSRC.
The Guidelines clarify that the China Securities Regulatory Commission exercises regulatory oversight over securities‑market‑related matters in the bankruptcy reorganization of listed companies, while stock exchanges implement self‑regulatory supervision over information disclosure in such proceedings. Listed companies are required to conduct self‑examinations and disclose whether they face delisting risks, have engaged in unauthorized use of funds or illegal guarantees, or exhibit material deficiencies in information disclosure or corporate governance. Furthermore, the Guidelines specify the requirements for equity adjustments in reorganization plans, stipulating, among other things, that the ratio of capital reserve transfers to share capital may not exceed 15 shares for every 10 shares.

Commercial & Corporate
State Council General Office: Strengthen Financial Support to Promote the Development of the Traditional Chinese Medicine Industry
On March 20, the Chinese Government Website publicly released the “Opinions of the General Office of the State Council on Enhancing the Quality of Traditional Chinese Medicine and Promoting the High-Quality Development of the TCM Industry,” outlining nine key areas and twenty-one specific measures.
The Opinions state that the structure and layout of the traditional Chinese medicine (TCM) industry should be optimized. Efforts will be made to establish specialized industrial hubs for ethnic medicines, foster the growth of a number of small and medium-sized enterprises in the TCM sector that are specialized, refined, distinctive, and innovative, and strengthen leading enterprises. Financial support will be enhanced by encouraging banking and financial institutions to innovate financial services tailored to the characteristics of the TCM industry, expand the range of credit products, streamline loan approval processes, and improve the quality and efficiency of financial services. Eligible TCM enterprises will be actively supported in raising capital through bond issuance and other means. Insurance coverage for key areas such as the cultivation of medicinal materials and new drug development will also be strengthened.

China will further open up its service sector and implement a range of measures to support foreign trade enterprises.
On March 20, the Ministry of Commerce held its regular press conference, during which spokesperson He Yongqian briefed the media on China’s outbound investment and cooperation performance for January–February 2025 and addressed measures the Ministry will take to promote the integration of domestic and foreign trade and help foreign‑trade enterprises expand their domestic sales.
He Yongqian stated that the Ministry of Commerce will implement four measures to support foreign trade enterprises: first, organize domestic sales campaigns for high-quality foreign‑trade products; launching the “China Tour” for such products is a key priority this year. Second, promote the alignment of domestic and international standards and certification systems to reduce the institutional costs of market transition for businesses. Third, strengthen policy support for the integration of domestic and foreign trade. Fourth, build an integrated service platform.
According to a March 20 announcement on the Chinese Government Website, Premier Li Qiang conducted a fact-finding tour in Fujian from March 18 to 20. He emphasized that, in the face of changing external conditions, foreign trade enterprises must redouble their efforts in areas such as R&D investment and brand building. China will further open up its service sector, intensify measures to attract and stabilize foreign investment, foster an even better business environment, and provide stronger support for the development of foreign-invested enterprises.

Seven departments have issued a document to optimize the business environment in the field of intellectual property.
On March 21, the website of the National Intellectual Property Administration published the “Opinions of the National Intellectual Property Administration, the Ministry of Education, the Ministry of Science and Technology, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the National Copyright Administration, and the Chinese Academy of Sciences on Further Optimizing the Business Environment in the Field of Intellectual Property.”
The “Opinions” comprise six key areas and set forth sixteen measures across four domains, specifically including: expanding the autonomy of universities and research institutions in managing intellectual property; advancing credit‑based evaluation of patent and trademark agencies; improving the market‑oriented pricing mechanism for intellectual property; strengthening legal safeguards for intellectual property and establishing protective rules for emerging fields; promoting expedited examination of trademarks and patents; enhancing international cooperation and exchanges; and optimizing administrative procedures for intellectual property while elevating the level of digital services, among other initiatives.

Shenzhen has unveiled 26 initiatives to accelerate the optimization of its international business environment.
Recently, the Shenzhen Municipal Bureau of Commerce published the “Shenzhen Work Plan for Optimizing the International Business Environment by 2025.”
The Work Plan comprises six key areas and 26 major tasks. It aims to establish more than 10 new foreign-invested telecommunications enterprises by 2025 and introduce two wholly foreign-owned hospitals that complement Shenzhen’s strengths in the healthcare sector. The plan also seeks to moderately expand the scope of business activities permitted for Hong Kong‑invested entities in fields such as medical technology, big data and artificial intelligence, robotics, new materials, and microelectronics. Furthermore, it will explore measures like “acceptance with missing documents” to streamline registration procedures for foreign‑invested enterprises. By 2025, the plan envisions attracting no fewer than 80 additional venture capital, private equity, and international asset management offices, among other initiatives. In addition, the Work Plan outlines specific actions to build a multi‑dimensional support system for private enterprises expanding overseas, enhance cross‑border trade services for private businesses, and vigorously develop new forms and models of foreign trade.

This year, China plans to draft or revise 41 national standards in the data domain.
On March 19, the National Technical Committee for Data Standardization held its first “Standards Week” plenary meeting of 2025.
At the meeting, the National Data Administration announced that China plans to draft or revise 41 national standards in the data domain this year, covering areas such as high-quality datasets, data infrastructure development, and the comprehensive digital transformation of cities. The meeting underscored support for private enterprises’ participation in standard-setting and called for accelerating the development of standards in key fields, including data governance, digital technologies, and infrastructure construction. The committee also launched a nationwide joint initiative on data standardization, emphasizing collaborative co‑creation of data standards and coordinated efforts to ensure their effective implementation. The goal is to essentially establish a national data standards system by the end of 2026.

The National Certification and Accreditation Administration has issued the General Implementation Rules for Product Carbon Footprint Labeling Certification.
On March 20, the State Administration for Market Regulation issued the “General Implementation Rules for Product Carbon Footprint Labeling Certification (Trial).”
The rules, based on the “Notice from the State Administration for Market Regulation and Other Departments on Launching a Pilot Program for Product Carbon Footprint Labeling Certification,” set forth requirements regarding certification bodies’ competencies, certification schemes, certification procedures, and post‑certification oversight. The rules emphasize that certification bodies must hold the requisite qualifications and establish a quality‑responsibility traceability system to ensure that all stages of the certification process are clearly documented and fully traceable. Enterprises that obtain certification may affix the carbon footprint label to their products and related documentation.

The National Health Commission has issued the 2025 National Goals for Improving Medical Quality and Safety.
On March 21, the National Health Commission website released the “Notice on Issuing the 2025 National Goals for Improving Medical Quality and Safety.”
This year, “increasing the rate of mutual recognition of examination and test results among medical institutions” has been incorporated into the national goals for improving medical quality and safety. Achieving mutual recognition of examination and test results across different healthcare facilities will, on the one hand, help enhance the utilization of medical resources, reduce healthcare costs, and improve diagnostic and treatment efficiency; on the other hand, it will support the implementation of specific measures outlined in the 2025 action plan to deliver tangible benefits to the public within the health sector. Meanwhile, the document has further refined and expanded the improvement targets for quality control efforts across various specialties.

The National Energy Administration has issued the “Key Tasks for Power Safety Supervision in 2025.”
On March 17, the website of the National Energy Administration released the “Notice on Issuing the Key Tasks for Power Safety Supervision in 2025.”
The “Key Tasks” document outlines 22 priority tasks across four areas. Specifically, in the realm of grid‑connected security management, it stipulates the development and issuance of user‑side grid‑connected security management guidelines, clarifies user‑side responsibilities for grid‑connected security, and refines relevant management requirements. It also calls for province‑specific plans to strengthen grid‑connected security management for new energy sources and emerging grid‑connected entities, defining the scope of grid‑connected security and establishing implementation schedules for performance upgrades of existing grid‑connected assets, thereby ensuring that all stakeholders fully comply with grid‑connected security requirements.

National Energy Administration: Further strengthen the implementation of the “Solar Power for Thousands of Households” initiative.
The Comprehensive Department of the National Energy Administration has issued a notice on further organizing and implementing the “Thousand-Household, Ten-Thousand-Person Solar Initiative,” thereby advancing the development and utilization of distributed renewable energy in rural areas.
The document emphasizes the need to foster a market‑oriented, law‑based business environment for distributed photovoltaic power generation, prohibiting the designation of specific operators, the imposition of mandatory requirements on supporting industries, monopolistic development through franchising or other means, and any infringement of farmers’ interests, thereby promoting the healthy and orderly development of distributed PV.

The State-owned Assets Supervision and Administration Commission has launched the Central Enterprises Youth Innovation Initiative.
Recently, the General Office of the Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council issued the “Notice on Launching the Youth Innovation Initiative in Central Enterprises.”
The Notice outlines more than ten measures across four key areas: launching a Youth Innovation Leadership Initiative, a Youth Innovation and Growth Initiative, a Youth Innovation Partnership Initiative, and a Youth Innovation Incubation Initiative. With regard to the Innovation Partnership Initiative, the Notice calls for aligning with trends toward cross-sectoral integration and open-source, open‑access collaboration, transcending property‑rights boundaries and leveraging the strengths of “connectivity.” It further stipulates that the leading organizations of each innovation consortium and the Party and League organizations serving as chain leaders in industrial chains shall organize, at least once annually, exchange activities for outstanding young scientific and technological talents from member units. In addition, a liaison system will be implemented, under which heads of League organizations at all levels will directly engage with one to two young science and technology backbones and one to two youth task‑force teams undertaking priority projects.

The People’s Bank of China convened the 2025 Treasury Work Conference.
On March 18, the People’s Bank of China convened the 2025 National Treasury Work Conference to review the treasury work of 2024, analyze the current situation, and outline key tasks for 2025.
The meeting called for the People’s Bank of China’s treasury sector to, by 2025, anchor itself officely in the goal of building a modern treasury system. By strengthening Party building to drive business, focusing on key priorities to guide overall work, advancing reform to spur development, and addressing immediate needs while laying the groundwork for long-term progress, the sector is urged to forge a new phase of high-quality treasury development. It must uphold Party leadership to promote deep integration between Party building and operational work; leverage technological innovation to ensure the secure operation of existing systems while accelerating the construction of the National Treasury Project; adhere to the manager‑of‑the‑treasury system, further deepen the rule-of-law‑based treasury framework, and continuously refine the treasury regulatory and institutional framework; and remain committed to its original mission of serving the people, steadily enhancing treasury service capabilities to deliver more convenient, faster, higher‑quality, and more efficient treasury services to the public.

The Ministry of Ecology and Environment plans to issue four national ecological and environmental standards.
On March 20, the website of the Ministry of Ecology and Environment issued a notice soliciting public comments on four national ecological and environmental standards, including “Technical Requirements and Test Methods for Automatic Total Phosphorus Water Quality Monitors.” The deadline for submitting feedback is April 17.
This batch of national ecological and environmental standards open for public comment includes the “Technical Requirements and Test Methods for Automatic Total Phosphorus Water Quality Monitors (Draft for Public Comment),” the “Technical Requirements and Test Methods for Automatic Total Nitrogen Water Quality Monitors (Draft for Public Comment),” the “Technical Requirements and Test Methods for Small-Scale Automatic Water Quality Monitoring Stations (for Routine Five Parameters, CODMn, NH3‑N, TP, and TN) (Draft for Public Comment),” and the “Technical Requirements and Test Methods for Automatic Monitoring Systems for Organic Carbon and Elemental Carbon in Ambient Air Particulate Matter (PM2.5) Using the Thermal–Optical Correction Method (Draft for Public Comment).”

Shenzhen Releases Guidelines for Applying to Become a Gazelle Enterprise and a Unicorn Enterprise
On March 20, the Shenzhen Municipal Bureau of Industry and Information Technology released the “Shenzhen Guidelines for Applying to the Selection, Evaluation, and Cultivation Policies for Gazelle and Unicorn Enterprises.”
The Guidelines propose establishing a service alliance for gazelle and unicorn enterprises, bringing together high-quality social service providers—including venture capital offices, securities companies, banks, guarantee institutions, accounting offices, law offices, and research organizations. By addressing the financial, innovation, talent, market, and legal needs of enterprises in the nurturing pool throughout their growth and development, the alliance will develop a comprehensive service catalog and make it available online within the nurturing system, facilitating connections for member companies and delivering a range of empowerment services.

Shenzhen Issues the Operational Procedures for the Support Plan on the Development of the Smart Terminal Industry
On March 20, the Shenzhen Municipal Government website published the “Notice on Issuing the Operational Procedures for the Shenzhen Municipal Bureau of Industry and Information Technology’s Support Program for the Development of the Smart Terminal Industry.”
The regulations cover six areas of support, including research and development of AI‑enabled terminal technologies, the establishment of public service platforms, complementary national funding, rewards for best‑selling products, support for national‑level innovation platforms in whole‑home intelligence, and subsidies for the adoption of domestically developed standards. Support is primarily provided through post‑implementation grants and awards, with detailed criteria and eligibility requirements; applicant enterprises must maintain actual operations in Shenzhen and possess core technological capabilities. The application process comprises submission, review, public announcement, and other stages to ensure efficient use of funds and transparent management. The regulations are valid until December 31, 2026.

The Measures for the Administration of the Security of Facial Recognition Technology Applications have been in effect since June.
On March 21, China Internet Information Office published the “Administrative Measures on the Security of Facial Recognition Technology Applications,” which will take effect on June 1, 2025.
The Measures consist of twenty articles, setting forth the basic requirements and processing rules for handling facial information through facial recognition technology, as well as security standards for its application and the responsibilities of supervisory and administrative authorities. The Measures stipulate that personal information processors must, within 30 working days from the date the number of stored facial data processed by facial recognition technology reaches 100,000, file a record with the cyberspace administration department at or above the provincial level in their jurisdiction. Furthermore, the Measures emphasize that, where alternative non‑facial recognition methods exist to achieve the same purpose or meet equivalent business requirements, facial recognition technology may not be used as the sole means of authentication.

The CPC Central Committee and the State Council have issued a document to further strengthen end-to-end oversight of food safety.
The Chinese Government Website has published the “Opinions of the General Office of the CPC Central Committee and the General Office of the State Council on Further Strengthening Comprehensive, End-to-End Supervision of Food Safety.”
The “Opinions” comprise nine areas of content and set forth 21 measures across eight key aspects, calling for the accelerated establishment of collaborative mechanisms for traceability and law enforcement in the field of food‑related agricultural product quality and safety; the formulation of administrative measures on traceability for such products; and the comprehensive development of a traceability catalog. They also mandate the introduction of a permit‑based transportation regime for bulk liquid foods; strengthen the verification and handling of leads related to food‑safety violations in the delivery and logistics chain, and crack down, in accordance with the law, on illegal activities involving the sale of counterfeit or substandard food through delivery channels; incorporate knowledge of food‑safety laws into the national occupational skill standards for online‑ride‑hailing delivery personnel; and establish a negative list for cross‑border e‑commerce retail imports of food, explicitly including foods from epidemic‑affected areas whose import has been suspended, as well as those subject to emergency response measures due to significant quality‑and‑safety risks, with the list updated in real time.

The Ministry of Industry and Information Technology plans to issue the 2025 edition of the Reference Guide for Typical Smart Manufacturing Scenarios.
On March 19, the website of the Ministry of Industry and Information Technology published the “Public Consultation on the ‘Reference Guidelines for Typical Smart Manufacturing Scenarios (2025 Edition)’ (Draft for Comments),” with a deadline for submitting feedback set for March 31.
The Guidelines outline eight key stages in the development of smart factories—factory construction, product R&D, process design, production management, manufacturing operations, operational management, product services, and supply chain management—covering 40 typical scenarios of intelligent manufacturing. The document provides detailed descriptions of specific measures such as digital factory design, digital infrastructure deployment, and the creation of digital twin factories, emphasizing that the integration of next-generation information technologies with manufacturing processes will enhance production efficiency and elevate the level of intelligence.

The Ministry of Public Security has released 10 typical cases of severe crackdowns on crimes involving the infringement of citizens’ personal information.
On March 18, 2025, the Ministry of Public Security announced ten landmark cases involving the infringement of citizens’ personal information. In 2024, public security organs nationwide, as part of the “Clean Internet” special campaign, cracked more than 7,000 cases, delivering a strong blow to activities such as the acquisition, trafficking, and misuse of personal data, thereby safeguarding citizens’ information security.
The cases primarily include: the Haidian District of Beijing’s successful investigation into a gang led by Liu, which used Trojan malware to steal information from education and training institutions; the Zhangye City, Gansu Province’s resolution of a case involving a gang led by Li Mofei that stole express‑delivery data; the Changchun City, Jilin Province’s crackdown on a group headed by Wang Ming that forged business licenses to fraudulently obtain resumes; and the Liangshan Prefecture, Sichuan Province’s apprehension of a gang led by Song Muchuan that exploited an educational platform to acquire personal information, among others. Public security authorities urge the public to strengthen the protection of their personal information and to promptly report any instances of data breaches.

The Implementation Rules for Subsidies on the Renewal of New-Energy City Buses and Power Batteries in 2025 Have Been Released.
On March 19, the website of the Ministry of Transport published the “Notice on Issuing the Implementation Rules for Subsidies for the Renewal of New-Energy Urban Buses and Power Batteries in 2025.” These rules shall take effect from the date of their promulgation, with the deadline for submitting subsidy applications set for December 31, 2025.
The detailed rules stipulate that funds from ultra‑long‑term special government bonds will be used to subsidize urban bus operators for the procurement of new‑energy buses and the replacement of their power batteries, with an average subsidy of RMB 80,000 per vehicle, including RMB 42,000 for battery replacement. The subsidy funding will be shared between the central and local governments in proportions determined according to each region’s economic level. Eligible recipients are urban bus operators that have legally obtained operating rights and meet a set of specified criteria. Applicants must submit comprehensive documentation, and local transportation authorities are responsible for reviewing applications and disbursing the subsidies.

The National Energy Administration plans to revise the Measures for the Administration of Emergency Response Plans of Power Enterprises.
On March 18, the Comprehensive Department of the National Energy Administration issued a public notice soliciting comments on the “Administrative Measures for Emergency Response Plans of Power Enterprises (Revised Draft for Public Comment).” The deadline for submitting comments is April 17.
The revised draft aims to standardize emergency preparedness management in power‑generation enterprises, enhancing its scientific rigor and operational effectiveness. Power‑generation companies are required to develop emergency response plans that encompass overarching strategies, specialized contingency plans, and on‑site response procedures, ensuring adequate preparation and effective deployment of emergency resources. These plans must undergo review and filing, and be supported by regular training and drills. The National Energy Administration will oversee the implementation of these plans, while power‑regulation authorities at all levels shall ensure that enterprises fulfill their corresponding responsibilities.

The National Intellectual Property Administration has issued a document to launch regional collaborative assistance initiatives for the intellectual property services sector.
The National Intellectual Property Administration has issued the “Notice on Launching Regional Collaborative Support for the Intellectual Property Service Industry,” aimed at addressing the imbalance in the regional development of the intellectual property service sector.
The notice calls for leveraging the resource advantages of eastern regions to help the western and northeastern regions, as well as Hainan Province, enhance their intellectual property service capabilities. Measures include: training one thousand IP‑related professionals; promoting the sharing of cross‑regional service resources; facilitating the matching of patent technologies with market demand; strengthening regulatory cooperation; and advancing the standardization of public services. The eastern regions and their paired assistance provinces will establish collaborative mechanisms and sign cooperation agreements to ensure that assistance efforts are concrete and scalable. The National Intellectual Property Administration will introduce supportive policies and incentive measures to encourage active participation by relevant provinces and institutions.

The National Energy Administration has launched a special regulatory campaign on construction safety and engineering quality in the power sector.
Recently, the National Energy Administration issued the “Notice on Conducting Special Supervision of Power Construction Safety and Engineering Quality for 2025,” specifying that the special supervision will be carried out from the date of issuance of the notice through December 2025.
The Notice requires all units to thoroughly study the Work Safety Law and other relevant laws and regulations, as well as institutional standards such as the Guidelines for Construction Safety Management in Power Engineering Projects, to gain a clear understanding of the requirements for safe production in power construction projects. They are also expected to conduct in-depth inspections to identify weak links and promptly address management loopholes; further strengthen on-site control over construction operations, with particular emphasis on referring to the “2025 Special Supervision and Inspection Checklist for Construction Safety and Quality in Power Engineering Projects,” continuously identify safety risks, pinpoint potential accident hazards, and ensure strict implementation.
Implement control and governance measures to identify problems early, close the rectification loop promptly, and sever the accident chain at the earliest possible stage, thereby fully advancing a stable and improving safety situation in power construction projects.

The National Medical Products Administration is seeking public input on documents related to the protection of pharmaceutical trial data.
On March 19, 2025, the Comprehensive Department of the National Medical Products Administration issued the “Public Solicitation of Comments on the Measures for the Implementation of Pharmaceutical Trial Data Protection (Trial, Draft for Comments)” and the “Procedures for Pharmaceutical Trial Data Protection (Draft for Comments),” along with their respective procedural guidelines, inviting public feedback. The deadline for submitting comments is May 18, 2025.
This measure aims to promote pharmaceutical innovation and the development of generic drugs, establishing data‑protection periods of six years for innovative drugs, three years for improved new drugs, and three years for the first generic. During the data‑protection period, no other applicant may rely on the holder’s data to seek marketing authorization without the holder’s consent. The Center for Drug Evaluation is responsible for implementing data protection, reviewing applicants’ submissions for data‑protection requests, and determining the scope and duration of protection. Once a drug has been granted data protection, other applicants may submit applications to rely on the protected data one year prior to the expiration of the protection period.

Taxation
The State Taxation Administration has issued the Measures for the Administration of Tax-related Professional Services (Trial).
On March 19, 2025, the State Taxation Administration issued the Measures for the Administration of Tax-related Professional Services (Trial) (hereinafter referred to as the “Measures”), which will take effect on May 1, 2025. The Measures comprise six chapters and thirty-nine articles, covering key areas such as the scope of administration, administrative and service provisions, supervision and inspection, and handling and penalties. For further details, please visit the official website of the State Taxation Administration.
The Measures represent an iterative upgrade of the original “Administrative Measures for the Supervision of Tax‑Related Professional Services (Trial),” thoroughly incorporating feedback and suggestions from all sectors of society. Issued as departmental regulations, they address existing institutional shortcomings, such as the relatively low legal status of prior normative documents. The Measures are aligned with previously promulgated tax‑related normative instruments—covering areas like the collection of information on tax‑related professional services, credit‑evaluation management, public disclosure and dissemination of information, as well as basic standards and codes of professional ethics—thereby establishing a relatively comprehensive regulatory framework for tax‑related professional services and further supporting the sound development of the industry.
According to reports, the Measures address key issues in industry development, such as the need to further enhance professional practice quality, by establishing and improving a “credit‑plus‑risk” management mechanism based on real‑name registration. They also clarify provisions on practice supervision and inspection, administrative penalties, and other matters, thereby further refining the regulatory framework for tax‑related professional services. For example, information technology is leveraged to assign credit codes to tax‑related professional service providers and practitioners, with real‑time, dynamic credit‑score recording and query functions introduced to strengthen positive incentives. Moreover, with compliance as the guiding principle, measures such as advisory reminders are employed to encourage these entities to enhance their internal control systems. Where risks remain after such warnings, corrective actions may be mandated within a specified timeframe, interviews conducted, or relevant authorities notified for verification. Institutions and individuals found to have violated the Measures may face credit‑based sanctions and other disciplinary measures.
Notably, the Measures uphold a balanced approach that emphasizes both regulation and service, further refining the support measures for the tax‑related professional services sector. For example, they stipulate that tax authorities shall establish and improve communication mechanisms with tax‑related professional service providers, their industry associations, and taxpayers, diligently listening to and promptly addressing relevant concerns in the field; they also streamline information‑reporting requirements and regularly publish the annual overview of services provided by tax‑related professional service institutions as compiled by the tax authorities, thereby offering guidance to these entities to strengthen internal management, mitigate professional risks, and enhance their credit ratings in the tax‑related services sector.
Zhang Wei, Dean of the School of Taxation at Jilin University of Finance and Economics, believes that the implementation of the Measures better fulfills the requirements set forth in the Decision adopted at the Third Plenary Session of the 20th CPC Central Committee—namely, to improve the social credit system and regulatory framework, refine the legal and institutional framework for intermediary service agencies, and promote integrity and lawful performance of duties among such agencies. This will effectively enhance the compliance of tax‑related professional service institutions and practitioners, thereby further advancing the high‑quality development of the tax‑related professional services sector.
Shen Xinguo, Director-General of the Taxpayer Services Department of the State Taxation Administration, stated that, going forward, the tax authorities will further standardize and support the development of the tax‑related professional services sector, fully leveraging its role in enhancing taxpayer satisfaction, promoting tax compliance, and guiding lawful business operations. This will better safeguard taxpayers’ legitimate rights and interests, contribute to a fair and rule‑of‑law‑based tax system, and help optimize the tax‑related business environment, thereby empowering and boosting high‑quality economic and social development.

LITIGATION & ARBITRATION
The website of the National People’s Congress of China has published a list of currently effective laws.
On March 17, the website of the National People’s Congress of China published a list of currently effective laws, totaling 305.
According to the catalog, as of March 11, 2025, China has a total of 305 currently effective laws. Among these, within the category of constitutional-related laws, the Law of the People’s Republic of China on the Representatives to the National People’s Congress and to the Local People’s Congresses at All Levels has been amended.

The Supreme People’s Court has released the second batch of typical cases on free trade zone development.
On March 18, the Supreme People’s Court website published a second batch of five typical cases on providing judicial services to support the development of free trade pilot zones, covering such areas as international air transport, China–Europe Railway Express operations, credit‑guaranteed transactions in cross‑border e‑commerce, overseas warehouses for cross‑border e‑commerce, and special customs supervision zones.
Among them, Case No. 2 is a landmark example concerning the determination of liability for cargo damage in container transport via the China–Europe Railway Express. The China–Europe Railway Express traverses multiple countries and involves complex legal relationships spanning transportation, warehousing, insurance, and more, potentially subject to the application of different governing laws, thereby posing significant challenges in handling such cases. This case clearly delineates the rules governing the applicable law for each distinct legal relationship, serving as a model for resolving disputes arising from China–Europe Railway Express operations.

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