JC Master Legal News Issue 1148

Key Takeaways for This Issue

Focusing on Charitable Trusts: Two Departments Issue Regulations on Annual Expenditure and Management Fees
On February 19, the Ministry of Civil Affairs and the National Administration of Financial Regulation jointly issued the “Notice on the Promulgation of the Provisions on Annual Expenditures and Administrative Expenses of Charitable Trusts,” which will take effect on January 1, 2025.
A new plan to stabilize foreign investment in 2025 has been unveiled, with efforts focused on four key areas.
On February 19, the Chinese government website released the “Notice of the General Office of the State Council on Forwarding the Ministry of Commerce and the National Development and Reform Commission’s ‘Action Plan for Stabilizing Foreign Investment in 2025.’” The plan outlines twenty key tasks aimed at steadily expanding autonomous opening-up, enhancing investment promotion, improving the effectiveness of open platforms, and strengthening support and safeguards.
China’s Customs Regulations on the Supervision of Baggage and Personal Effects Have Been Issued.
The General Administration of Customs has promulgated the “Regulations of the People’s Republic of China on the Supervision of Baggage and Personal Effects Entering or Leaving the Country” (Order No. 276 of the General Administration of Customs), which shall enter into force on April 1, 2025.
The Supreme People’s Procuratorate has released typical cases on “Strengthening Judicial Protection of People’s Livelihoods by the Procuratorial Organs.”
On February 20, the Supreme People’s Procuratorate website published eight typical cases under the theme “Procuratorial Organs Strengthen Judicial Safeguards for People’s Livelihoods,” covering the handling of offenses such as infringement of citizens’ personal information, fraud, failure to fulfill land‑expropriation compensation and resettlement agreements, and trademark infringement. The cases also address issues including civil procuratorial supervision in financial loan contract disputes, the sealing of juvenile criminal records, and the regulation of food safety for pre‑packaged dishes.
Finance & Capital Markets
Focusing on Charitable Trusts: Two Departments Issue Regulations on Annual Expenditure and Management Fees
On February 19, the Ministry of Civil Affairs and the National Administration of Financial Regulation jointly issued the “Notice on the Promulgation of the Provisions on Annual Expenditures and Administrative Expenses of Charitable Trusts,” which will take effect on January 1, 2025.

The Regulations stipulate that charitable trust expenditures comprise three categories incurred in the course of conducting charitable activities: first, funds and materials disbursed directly or entrusted to other organizations for distribution to beneficiaries; second, personnel remuneration, volunteer allowances, and insurance expenses, as well as related costs associated with the use of premises, equipment, and supplies; and third, expenses for travel, logistics, transportation, meetings, training, auditing, and evaluation. The Regulations emphasize that trustees of charitable trusts shall manage and account for the assets of each trust separately, and calculate annual expenditures and the proportion of administrative expenses accordingly. Trustees must base their accounting on actual transactions or factual circumstances, accurately recording annual expenditures and administrative expenses, and shall not artificially inflate such expenditures or incur unreasonable expenses.

Commercial & Corporate
A new plan to stabilize foreign investment in 2025 has been unveiled, with efforts focused on four key areas.
On February 19, the Chinese government website released the “Notice of the General Office of the State Council on Forwarding the Ministry of Commerce and the National Development and Reform Commission’s ‘Action Plan for Stabilizing Foreign Investment in 2025.’” The plan outlines twenty key tasks aimed at steadily expanding autonomous opening-up, enhancing investment promotion, improving the effectiveness of open platforms, and strengthening support and safeguards.
The Plan calls for the full implementation of the requirement to eliminate foreign‑investment access restrictions in the manufacturing sector. It revises the Negative List for Market Access, ensuring that, for sectors not listed on the negative list, foreign‑investment access is managed strictly in accordance with the principle of national treatment. The scope of industries encouraged for foreign investment is also expanded, with an updated Catalogue of Industries Encouraged for Foreign Investment designed to steer foreign capital toward modern services and to support greater investment in the central, western, and northeastern regions. Efforts to attract investment in key areas will be intensified, with support provided to foreign‑invested enterprises participating in China’s new‑type industrialization process, particularly in high‑technology fields. Furthermore, trade facilitation for foreign‑invested enterprises will be enhanced by streamlining the issuance of certificates of origin under preferential trade agreements, thereby helping these companies benefit from tariff reductions and other concessions offered by partner economies.

Five departments have launched a three-year initiative to improve the consumer environment.
On February 19, the website of the State Administration for Market Regulation published the “Notice on Issuing the Three-Year Action Plan for Optimizing the Consumer Environment (2025–2027).”
The Plan outlines five major initiatives—enhancing the quality of consumer supply, optimizing consumer order, improving the efficiency of consumer rights protection, fostering collaborative governance of the consumer environment, and leading by example in shaping a sound consumer landscape—and specifies that priority will be given to investigating and addressing issues such as “two excesses and one non‑compliant” practices in the food sector, counterfeiting, passing off inferior goods as superior, and fraudulent metrology. It also focuses on tackling “unfair terms” in sectors like online shopping and express delivery, telecommunications, home renovation, maintenance, and tourism; standardizing subscription and fee‑charging practices in the radio and television industries to curb bundled pricing and deceptive marketing; cracking down rigorously on illegal activities in the online marketplace, including fabricated traffic, fake order‑boosting and credibility‑manipulation, vulgar product promotion, and unlawful advertising; and combating anti‑competitive conduct in fields such as pharmaceuticals, public utilities, and the automotive industry.

The Cyberspace Administration of China has, in accordance with the law, carried out a concentrated crackdown on a number of illegal and non-compliant apps that infringe upon individuals’ personal information rights.
On February 19, according to China Internet Information Office, the National Cyberspace Administration of China recently conducted a coordinated crackdown, in accordance with the law, on a number of illegal and non-compliant apps that infringed upon individuals’ personal information rights.
In this batch, the Cyberspace Administration of China has, in accordance with laws and regulations, investigated and penalized 82 illegal and non-compliant apps, including “Kai Ge Mi Shi Guan,” as well as related mini-programs. Upon investigation, four apps, including “Kai Ge Mi Shi Guan,” were found to have failed to publicly disclose their rules for collecting and using personal information, thereby violating the Personal Information Protection Law and other relevant laws and regulations; accordingly, these apps have been removed from app stores in compliance with the law. Additionally, 78 apps, including “Dynamic Wallpaper Emperor,” were found to have failed to provide users with the legally mandated options to delete or correct their personal information, also in violation of the Personal Information Protection Law and other applicable laws and regulations. These apps have been ordered, pursuant to law, to complete rectification within one month; those that fail to do so by the deadline will be removed from app stores in accordance with the law.

The Ministry of Industry and Information Technology has publicly announced 24 recommended national standards for the telecommunications industry.
On February 19, the website of the Ministry of Industry and Information Technology published a public notice on the submission for approval of 24 recommended national standards in the telecommunications sector, with a deadline for feedback set for February 26.
The recommended national standards for the telecommunications industry announced in this batch include: “IPv6 Evolution Technical Requirements—Part 1: Reference Architecture”; “IPv6 Support Assessment Metrics and Evaluation Methods—Part 1: Websites”; “4over6 Technical Requirements for Single-Stack IPv6 Networks—Part 2: IPv4 Network Interconnection Based on IPv6 Access Networks”; “General Requirements for Online Distance Education Platforms”; “Technical Requirements for Communication Security in 5G Mobile Communication Networks”; “IPv6 Network Equipment Security Technical Requirements and Test Methods—Part 1: Routers”; and “Reliability Technical Requirements and Test Methods for Mobile Communication Terminals,” among others.

The Ministry of Industry and Information Technology plans to issue the Measures for the Administration of Traceability of Rare Earth Product Information.
On February 19, the website of the Ministry of Industry and Information Technology published a notice soliciting public comments on the “Administrative Measures for Total-Quantity Control over Rare-Earth Mining and Smelting‑Separation (Provisional) (Draft for Public Comment)” and the “Administrative Measures for Traceability of Rare-Earth Product Information (Provisional) (Draft for Public Comment).” The deadline for submitting feedback is March 21.
Among them, the Measures for Information Traceability Management comprise four chapters and seventeen articles, stipulating that rare earth enterprises shall establish a system for recording the flow of rare earth products, equip themselves with the necessary equipment, facilities, and personnel to implement information traceability management, accurately document the flow of rare earth products, and submit basic indicator data to the rare earth traceability system by the 10th of each month, thereby ensuring that the data are truthful, accurate, and complete.

The Cyberspace Administration of China convened a meeting to advance work on informationization development.
On February 17, the Cyberspace Administration of China convened a meeting to advance informationization development, summarizing and reviewing the work carried out in 2024, analyzing the new circumstances and tasks ahead, deliberating on the strategic vision for informationization during the 15th Five-Year Plan period, and outlining priorities for advancing key informationization initiatives in 2025.
The meeting emphasized that, by 2025, efforts should focus on comprehensively deepening reform, strengthening and refining the national informationization development strategy and the mechanisms for policy coordination; on fostering a robust industrial ecosystem and driving breakthroughs in technological innovation in the information sector; on enhancing infrastructure capabilities and advancing the construction of next-generation information infrastructure; on developing new‑type productive forces and promoting the integration of the real economy with the digital economy; and on improving people’s well-being by further expanding the benefits of information technology to the public.

The Ministry of Civil Affairs has issued measures to ban illegal social organizations.
The Ministry of Civil Affairs has issued Ministerial Order No. 77, promulgating the Measures for Banning Illegal Social Organizations, which shall take effect on May 1.
The Measures consist of 23 articles and stipulate that any organization falling under any of the following circumstances shall be deemed an illegal social organization:
(1) Conducting activities in the name of a social organization, foundation, or privately-run non-enterprise entity without prior registration;
(2) Conducting activities other than those related to the preparation during the preparatory period of a social organization;
(3) Continuing to conduct activities in the name of a social organization, foundation, or privately-run non-enterprise entity after its registration has been revoked or its registration certificate has been canceled.

The Ministry of Natural Resources has publicly announced 16 industry standards, including the “Technical Requirements for the Production of Digital Bathymetric Model Data.”
On February 19, the website of the Ministry of Natural Resources published a public notice announcing the draft versions of 16 industry standards, including the “Technical Requirements for the Production of Digital Bathymetric Model Data,” with a公示 period of five working days.
The industry standards announced in this batch primarily include: “Technical Requirements for the Production of Digital Bathymetric Models”; “Technical Specification for the Production of Mapping Products from Spaceborne Synthetic Aperture Radar Based on Global Geospatial Information Resources”; “Technical Requirements for Quality Inspection of Urban Underground Space Surveying and Mapping Results”; “Classification and Cartographic Symbols for Seabed Topography at Scales of 1:250,000, 1:500,000, and 1:1,000,000”; “Technical Specification for IMU‑GNSS‑Assisted Acquisition of Low‑Altitude Hyperspectral Data”; “Technical Requirements for Quality Inspection of Digital Bathymetric Models”; and “Basic Requirements for Confidentiality‑Related Processing of Fundamental Geographic Information Data.”

In January 2025, China’s total foreign investment inflows reached RMB 97.59 billion, down year-on-year but up month-on-month.
On February 19, the Ministry of Commerce website released national data on foreign investment absorption for January 2025. According to the report, 4,229 new foreign-invested enterprises were established nationwide, down 7.8% year on year; the actual amount of foreign capital utilized totaled RMB 97.59 billion, a decrease of 13.4% year on year but an increase of 27.5% month on month.
By sector, the manufacturing industry attracted RMB 28.78 billion in actual foreign investment, while the services sector drew RMB 66.78 billion. High‑tech manufacturing recorded RMB 12.24 billion in actual foreign investment, accounting for 12.5% of the national total—up 0.8 percentage points from the full year 2024. In particular, the pharmaceutical manufacturing sector and technology transfer services saw increases of 68.4% and 23.9%, respectively, in actual foreign investment. By country of origin, actual investments from the United Kingdom, South Korea, the Netherlands, and Japan rose by 324.4%, 104.3%, 76.1%, and 40.7%, respectively.

Hainan Releases the 2024 Version of the Negative List for Data Outbound Transfers under the Free Trade Port Regime.
On February 20, the Hainan Cyberspace Administration issued the “Notice on the Issuance of the ‘Hainan Free Trade Port Data Outbound Management List (Negative List) (2024 Edition)’.”
The negative list covers 14 specific business scenarios, providing detailed specifications for each scenario regarding data sub‑categories, essential characteristics, and descriptions. It also clarifies the scope of application, data definitions, and management requirements, thereby establishing a comprehensive data governance framework that spans resource exploration, scientific research and monitoring, and operational management. The list focuses on key regulatory mechanisms—such as security assessments for cross‑border data transfers, standard contractual arrangements for personal data exports, and certification-based safeguards for personal data transfers—and adopts a tiered approach to managing five priority sectors: in the deep‑sea domain, it concentrates on marine exploration and surveying, environmental monitoring, and communication and navigation; in the aerospace sector, it addresses satellite remote sensing and international cooperation; in the seed industry, it encompasses the entire data value chain, from genetic resources to enterprise operations; and in the tourism and duty‑free retail sectors, it further refines the requirements for managing the cross‑border flow of personal information.

The State Council has issued the “2025 Action Plan for Stabilizing Foreign Investment,” focusing on talent recruitment and opening up to foreign investment.
Recently, the General Office of the State Council forwarded the “2025 Action Plan for Stabilizing Foreign Investment,” formulated by the Ministry of Commerce and the National Development and Reform Commission. The plan outlines 20 specific measures across four key areas: expanding autonomous opening-up, enhancing investment promotion, improving the effectiveness of open platforms, and strengthening support and safeguards.
In terms of talent recruitment, the plan introduces a series of innovative measures, including expanding pilot programs to open up key sectors such as telecommunications, healthcare, and education; promoting greater openness in areas like wholly foreign‑owned hospitals and value‑added telecommunications services; and providing “dedicated task‑force‑style” follow-up support for foreign‑invested projects in these fields. In addition, the plan encourages multinational corporations to establish investment‑holding companies in China and streamlines facilitative measures related to foreign exchange management and the entry and exit of personnel.

The plan also underscores the need to attract more foreign-invested enterprises to make long-term investments in China by optimizing the business environment, expanding the Catalogue of Industries Encouraged for Foreign Investment, and lifting restrictions on domestic loans used by foreign-invested holding companies, among other measures.

China’s Customs Regulations on the Supervision of Baggage and Personal Effects Have Been Issued.
The General Administration of Customs has promulgated the “Regulations of the People’s Republic of China on the Supervision of Baggage and Personal Effects Entering or Leaving the Country” (Order No. 276 of the General Administration of Customs), which shall enter into force on April 1, 2025.
The Measures comprise six chapters and thirty-eight articles, setting forth the customs regulations governing the supervision of inbound and outbound baggage. They cover all stages, including declaration, inspection, and disposition, and stipulate that travelers must make truthful declarations, while customs authorities conduct inspections in accordance with the law. The Measures prescribe specific procedures for different categories of baggage—such as those subject to duties, requiring permits, or subject to quarantine—and also regulate the supervision of baggage transported separately or in transit. In addition, they clearly outline the penalties for violations. Several earlier administrative provisions, including the “Regulations of the People’s Republic of China on the Supervision of Baggage of Travelers Entering and Exiting the Country,” will be repealed simultaneously as of April 1, 2025.

President Xi Jinping attended a symposium on private enterprises.
On February 17, Xi Jinping, General Secretary of the CPC Central Committee, President of the People’s Republic of China, and Chairman of the Central Military Commission, attended a symposium on private enterprises in Beijing and delivered an important speech.
He emphasized the need to continuously advance the fair opening of competitive infrastructure sectors to all types of market entities, and to redouble efforts to address the difficulties and high costs of financing faced by private enterprises. He also stressed the importance of promptly resolving the issue of overdue payments owed to private offices. Furthermore, private enterprises should, in accordance with the requirements of a modern corporate governance system with Chinese characteristics, refine their corporate governance structures, standardize shareholder conduct, strengthen internal oversight, and improve risk‑prevention mechanisms. At the same time, they must continually enhance mechanisms for the utilization, management, and protection of production factors—including labor, talent, knowledge, technology, capital, and data—and place great emphasis on cultivating the next generation of corporate leaders.

General Administration of Customs Announcement on Matters Related to Gate Management in Special Customs Supervision Zones
On February 17, the General Administration of Customs issued the “Announcement on Matters Relating to Gate Management in Customs Special Supervision Zones.”
The Notice clarifies that, without the prior approval of Customs, vehicles or personnel shall not carry goods through non‑cargo‑channel checkpoints when entering or exiting a customs special supervision zone. Based on the risk level of goods entering or leaving the zone, Customs may, in accordance with the Measures for the Inspection and Administration of Import and Export Goods of the People’s Republic of China, conduct checkpoint inspections of such goods. Checkpoint inspections shall be carried out at designated inspection sites within the customs special supervision zone; however, where goods are susceptible to natural factors such as temperature, static electricity, or dust and thus不宜 (not advisable) to be inspected at those sites, upon written application by an enterprise within the zone or its agent, Customs may conduct the inspection at a designated location that meets the requisite conditions. Enterprises within the zone or their agents shall cooperate fully. The administrative authority of the customs special supervision zone shall assume full responsibility for operational management, ensure the proper operation and maintenance of checkpoint facilities and equipment, and adequately staff checkpoint duty posts. At the same time, it shall maintain a comprehensive database of checkpoint passage records, with a retention period of no less than three years for such records and no less than three months for video recording data. During the course of checkpoint operations and other related management activities, any violations of relevant Customs laws and regulations discovered shall be promptly reported to Customs.

Multiple departments have jointly issued a document to strengthen the development of standards and the oversight of their implementation.
On February 18, the website of the State Administration for Market Regulation published the “Guiding Opinions on Strengthening the Development and Implementation Oversight of Standards.”
The “Guiding Opinions” comprise five key areas and seventeen specific measures, emphasizing the need to strengthen standardized management throughout the entire process of developing national standards. They stipulate that mandatory standards must be strictly confined to essential requirements in health, environmental protection, safety, and basic economic and social governance, and prohibit any unauthorized fees under the guise of participating in the drafting or ranking of national standards. Furthermore, they impose strict controls on the financial management of group standards, forbidding the levying of improper charges on grounds such as project approval, participation in standard development, authorship, or ranking. The guidelines also regulate market‑driven standard‑setting activities, intensify inspections of cases where enterprises fail to disclose their implemented standards or make non‑compliant public declarations, and reinforce oversight of situations in which products or services do not conform to the standards they have adopted. Finally, they mandate rigorous legal enforcement against fraudulent practices, including falsification in applications for “leader” status and the unauthorized use of the “leader” designation.

The Ministry of Industry and Information Technology has released the economic performance report for the automotive industry as of January 2025.
On February 17, the website of the Ministry of Industry and Information Technology released data on the automotive industry’s economic performance for January 2025. According to the figures, in January 2025, China’s automobile production and sales reached 2.45 million units and 2.423 million units, respectively, with production up 1.7% year over year and sales down 0.6% year over year. Among them, new-energy vehicle production and sales stood at 1.015 million and 944,000 units, respectively, representing year-on-year increases of 29% and 29.4%.
According to data from the Ministry of Industry and Information Technology, in January, automobile production and sales reached 2.45 million units and 2.423 million units, respectively, with production up 1.7% year on year and sales down 0.6% year on year. Passenger car production and sales totaled 2.151 million and 2.133 million units, up 3.3% and 0.8% year on year, respectively. Commercial vehicle production and sales stood at 299,000 and 290,000 units, down 8.6% and 10.3% year on year, respectively. New energy vehicle (NEV) production and sales reached 1.015 million and 944,000 units, up 29% and 29.4% year on year, respectively; NEVs accounted for 38.9% of total new car sales. Whole-vehicle exports totaled 470,000 units, a 6.1% year-on-year increase, while NEV exports reached 150,000 units, up 49.6% year on year.

Two departments have jointly launched a campaign to conduct dynamic inspections and oversight of vehicle weighbridge measurements.
Recently, the State Administration for Market Regulation and the Ministry of Transport jointly issued the “Notice on Conducting Metrological Supervision and Inspection of Dynamic Vehicle Scales (Vehicle Gross Weight Measurement),” deciding to carry out such inspections from February to April this year.
This inspection and supervision campaign focuses on five key areas: strengthening source‑level oversight, conducting scientific planning and layout, standardizing usage and management, ensuring the quality of verification, and enhancing coordinated collaboration. Specifically: First, market regulation authorities at all levels shall conduct “double‑random” inspections of dynamic truck scale manufacturers within their jurisdictions to uphold industry order; second, transportation authorities at all levels, in light of changes in the highway network, shall adjust and optimize the placement of over‑limit detection stations along national and provincial trunk roads and scientifically designate installation zones for dynamic truck scales; third, market regulation and transportation authorities at all levels shall carry out supervisory inspections of entities using dynamic truck scales within their jurisdictions, with “double‑random” inspections targeting those in use at key areas, critical road segments, and highway entrances and exits; fourth, statutory metrological verification institutions and authorized agencies at all levels should proactively strengthen their own verification capabilities and ensure the effective implementation of mandatory verification for dynamic truck scales; and fifth, further deepen the coordinated collaboration between market regulation and transportation authorities to promote joint regulatory enforcement.

Chinese Foreign Ministry: China advocates the open-source development of artificial intelligence technologies and opposes the politicization of economic, trade, and technological issues.
Foreign Ministry Spokesperson Guo Jiaqun stated that China is actively promoting the inclusive development of artificial intelligence, helping developing countries strengthen their capacity-building efforts. China advocates for open-source AI technologies, seeks to enhance the accessibility of AI services, and aims to ensure that all nations can share in the benefits of intelligent innovation.
Guo Jia-kun stated that China is actively embracing the intelligent transformation, vigorously promoting innovation and development in artificial intelligence, attaching great importance to AI safety, and supporting and encouraging enterprises to pursue independent innovation, thereby making positive contributions to the global advancement of AI. China is also proactively advancing the inclusive development of AI, helping developing countries strengthen their capacity-building efforts, advocating for open-source AI technologies, enhancing the accessibility of AI services, and ensuring that all nations can share in the benefits of intelligent technologies. “At the same time, we oppose drawing ideological lines and reject the practice of broadening the concept of national security and politicizing economic, trade, and technological issues,” he added.

The National Energy Administration plans to issue the Provisional Measures for the Management of Nuclear Power Project Quotas.
On February 17, the website of the National Energy Administration published the “Notice on Public Solicitation of Comments on the Provisional Measures for the Management of Nuclear Power Project Quotas (Draft for Comments),” with a deadline for submitting feedback set for March 20.
The Measures consist of fourteen articles, clearly stipulating provisions related to the General Quota Station, Sub‑Quota Stations, quota formulation, quota revision, price adjustments, resource assurance, and publication. They require the General Quota Station, in light of market developments, to promptly submit proposals for adjusting the unit rates for labor days, materials, and machine‑hour charges in nuclear power projects; after obtaining approval in accordance with the procedures set forth in Article 8 of these Measures, such adjustments shall be promulgated and implemented by the General Quota Station. In principle, adjustments are made once per year, but may also be carried out as needed on an ad hoc basis.

The medical insurance drug and consumable traceability information query function has been launched.
Recently, the “Medical Insurance Drug and Consumable Traceability Information Query” feature on the National Medical Insurance Service Platform app has officially gone live. By scanning the drug’s traceability code on the packaging, purchasers can access detailed information about the drug’s sales history.
A drug traceability code serves as the unique “electronic ID” for each package of medication. Each package should have only one recorded sale via scanning; if the same code appears multiple times, it may indicate counterfeit drugs, diverted products, or unauthorized reselling. According to officials, after registering and logging into the National Medical Insurance Service Platform app, users can access the “Medical Insurance Drug and Consumable Traceability Information Inquiry” feature to scan a code or enter a traceability number. If the queried product is suspected of being sold repeatedly, consumers may, in accordance with applicable legal provisions, file a claim against the designated medical institution that dispensed the drug.

Shanghai has issued the Provisional Measures for the Administration of Trading Venues in Shanghai.
On February 18, the Shanghai Municipal Government website published the “Notice on Issuing the Provisional Measures for the Administration of Trading Venues in Shanghai,” which sets forth regulatory requirements for commodity spot‑based trading venues whose names include the terms “trading center” or “exchange,” as well as for trading venues engaged in equity‑related transactions and other contract‑based trading activities.
The Measures comprise five chapters and thirty-eight articles, covering such areas as establishment, amendment, and termination; operational standards; and supervisory management. They stipulate that trading venues shall, in principle, not establish branch offices or conduct business activities by recruiting members, agents, or authorized service providers. Commodity spot‑based trading venues must be grounded in the spot market and possess a relevant industrial background along with supporting measures such as logistics. Trading clients are limited to enterprises within the industry; individual investors may not be induced to engage in speculative trading, and participants in licensed‑product transactions must hold the requisite operating qualifications. The traded commodities must be physical goods that can enter the circulation chain and are used in industrial and agricultural production or for consumption, and they may not, without authorization, list any unapproved products. Trading venues and their branches are strictly prohibited from conducting continuous centralized auction trading or engaging in illegal securities and futures activities.

Shanghai has introduced measures to prevent and control air pollution in the catering industry.
On February 18, the Shanghai Municipal Government website published the “Measures for the Prevention and Control of Air Pollution in the Catering Industry of Shanghai.”
The Measures comprise 23 articles and explicitly prohibit the construction, renovation, or expansion of catering service establishments that generate cooking fumes, odors, or exhaust gases in residential buildings, in mixed-use buildings without dedicated flue systems, or on commercial floors within such buildings that are adjacent to residential levels. Catering service operators shall, in accordance with the city’s Technical Specifications for Controlling Cooking Fume Pollution, regularly clean and maintain their fume‑extraction and odor‑control facilities and keep proper records; such cleaning and maintenance records must be retained for no less than one year.

The Beijing Municipal Government plans to issue the “Implementation Plan for High-Quality Development of Industrial Tourism in Beijing.”
On February 18, the Beijing Municipal Government website published the “Notice on Soliciting Public Comments on the ‘Implementation Plan for High-Quality Development of Industrial Tourism in Beijing (Draft for Public Comment)’,” with the deadline for submitting feedback set for February 24.
The Implementation Plan comprises four chapters and outlines the following key tasks: (1) Focus on developing five premium experience routes to pioneer a groundbreaking, trendsetting toy‑and‑play experience; (2) Coordinate and advance four distinctive thematic initiatives to infuse industrial aesthetics with renewed vibrancy; (3) Drive simultaneous improvements in marketing and services to elevate product quality to new heights.

The two departments plan to clarify the criteria for determining when motor vehicle emission inspection agencies have engaged in serious misconduct, such as falsifying test results or issuing false reports.
On February 17, the website of the Ministry of Ecology and Environment published the “Letter Soliciting Public Comments on the Draft ‘Criteria for Determining Serious Cases of Falsification of Emission Inspection Results or Issuance of False Emission Inspection Reports by Motor Vehicle Emission Inspection Agencies’ issued by the Ministry of Ecology and Environment and the State Administration for Market Regulation,” with a deadline for submitting comments set for March 3.
The “Opinions” comprise five articles and, taking into account the degree of impact, the consequences of harm, and the actual working conditions in various localities, set forth clear criteria for determining when the falsification of emission inspection results or the issuance of false emission inspection reports constitutes a serious violation. It stipulates that repeated commission of unlawful acts within two years shall be distinguished from first-time or single‑instance violations and may be deemed to constitute a serious case; furthermore, the falsification of inspection results or the issuance of false inspection reports involving ten or more vehicles shall be regarded as a serious offense. Additional provisions are also included to address cases that cause significant environmental or social impacts, as well as other circumstances that, in accordance with the law, must be classified as serious.

The State Administration for Market Regulation has launched a pilot program to deepen the reform of the local standards management system.
The State Administration for Market Regulation has issued the “Notice on Launching Pilot Programs to Deepen Reform of the Local Standards Management System,” under which pilot reforms will be carried out in 13 regions, including Hebei, Heilongjiang, and Shanghai.
This pilot initiative aims to explore new measures, mechanisms, and models for deepening the reform of the local standards management system, thereby promoting the restructuring of local standard‑setting processes, the reorganization of the standards framework, and the reshaping of the institutional framework, and supporting the development of a unified national market and high‑quality growth. The Notice outlines five key tasks: first, to introduce a trial negative list for the formulation of local standards, thereby reducing the existing stock of such standards; second, to establish a new mechanism for full‑cycle management of local standards, facilitating the overhaul of the standard‑setting process; third, to strengthen the oversight of local standard‑setting by prefecture‑level cities and refine the relevant management systems; fourth, to clarify and enforce responsibilities for the implementation, application, and compliance monitoring of local standards, thus reinforcing standard enforcement and supervision; and fifth, to explore innovative pathways for transforming local standardization functions and enhancing the capacity of local standardization efforts.

Taxation
In 2024, tax and fee reductions, along with tax refunds, exceeded RMB 2.6 trillion, providing strong support for technological innovation and the development of the manufacturing sector.
Recent data released by the State Taxation Administration show that in 2024, tax and fee reductions, along with tax refunds, under the major policies currently in place to support technological innovation and the development of the manufacturing sector totaled RMB 2.6293 trillion, helping to accelerate the cultivation of China’s new‑type productive forces and the high‑quality development of its manufacturing industry.
In 2024, the tax authorities precisely implemented structural tax and fee reduction policies, with a strong focus on supporting technological innovation and the development of the manufacturing sector. By policy category, measures such as the additional deduction for R&D expenses—designed to encourage greater investment in science and technology and the commercialization of research outcomes—resulted in tax and fee reductions and refunds totaling RMB 806.9 billion; policies like the value-added tax (VAT) additional credit for integrated circuit and industrial machine tool enterprises—aimed at addressing “bottleneck” challenges and attracting and cultivating scientific talent—generated RMB 132.8 billion in tax and fee reductions; policies that lower the corporate income tax rate to 15% for high-tech enterprises and exempt new-energy vehicles from vehicle acquisition tax—intended to foster the growth of high-tech offices and emerging industries—yielded RMB 466.2 billion in tax savings; measures supporting equipment upgrades and technological transformation led to RMB 114 billion in tax reductions; and policies providing VAT additional credits and refunding accumulated input VAT for advanced manufacturing enterprises—designed to promote high-quality development in the manufacturing sector—accounted for RMB 1,109.4 billion in tax and fee reductions and refunds.
Thanks to a series of policy measures, including structural tax and fee reductions, China’s capacity for scientific and technological innovation has continued to strengthen. According to VAT invoice data, in 2024, sales revenue in the high‑tech sector grew 9.6 percentage points faster than the national average, reflecting robust expansion in innovation‑driven industries. Meanwhile, nationwide sales revenue from technology transfer services rose 27.1% year on year—14.3 percentage points ahead of the growth rate in the high‑tech services sector—indicating that research outcomes are being translated into productive forces at an accelerating pace. Furthermore, core industries of the digital economy expanded by 7.1% year on year, and corporate spending on digital technologies increased by 7.4%, underscoring the steady progress of integrating the digital and real economies.
With the support of favorable tax and fee policies and other measures, China’s manufacturing sector has maintained steady growth. According to VAT invoice data, in 2024, manufacturing offices’ sales revenue expanded 2.2 percentage points faster than the national average. Specifically, sales in the equipment manufacturing, digital products manufacturing, and high‑tech manufacturing sectors increased by 6.2%, 8.3%, and 9% year over year, respectively. Notably, advanced manufacturing segments such as computer manufacturing, communications and radar equipment manufacturing, and smart equipment manufacturing posted year‑on‑year sales growth of 14.4%, 19%, and 10.1%, respectively, underscoring the sector’s steady progress toward higher value‑added and smarter production.
Officials from relevant departments of the State Taxation Administration stated that, in the next phase, the tax authorities will thoroughly implement the spirit of the Third Plenary Session of the 20th CPC Central Committee and the Central Economic Work Conference. Focusing on reform tasks such as the innovation-driven development strategy and the promotion of the real economy, they will earnestly carry out and continuously refine structural tax and fee reduction policies that prioritize support for technological innovation and the manufacturing sector, thereby better fostering the development of new‑type productive forces and advancing China’s high‑quality economic growth.

According to the latest data from the State Taxation Administration,
In 2024, the deferred tax policy spurred a 15% year-on-year increase in reinvestment by foreign investors in China.
The policy of deferring tax on reinvested foreign capital stipulates that, for profits distributed by Chinese resident enterprises to overseas investors, no withholding income tax will be levied—temporarily—for investments directly channeled into projects and sectors within China. According to the latest data from the State Taxation Administration, in 2024, the total amount of reinvestment by foreign investors in China benefiting from this deferred‑tax policy reached RMB 162.28 billion, a year-on-year increase of 15%, marking another record high.
According to a responsible official from the International Taxation Department of the State Taxation Administration, foreign reinvestment in China has four notable features: First, reinvestment by investors from countries participating in the Belt and Road Initiative has grown rapidly. In 2024, the amount of reinvestment eligible for deferred taxation among these investors surged by 95.7% year on year, with Singaporean and South Korean investors seeing their reinvestment amounts increase by 140% and 66.5%, respectively, compared with the previous year. Second, investment by Japanese and U.S. investors has risen steadily, with their reinvestment volumes expanding by 160% and 26% year on year, respectively. Third, the scope of industries receiving reinvestment continues to broaden. In 2024, reinvested funds were channeled into 68 major industrial categories, three more than the previous year; among them, specialized equipment manufacturing and pharmaceutical manufacturing attracted foreign reinvestment that grew by 130% and 24%, respectively, year on year. Fourth, the western region has become increasingly attractive for reinvestment. In 2024, reinvestment in the northwest and southwest regions expanded rapidly, with the amount of foreign reinvestment drawn to these areas rising by 60.6% year on year.
Chen Bin-kai, Vice President of the Central University of Finance and Economics, stated that the steady growth in reinvestment by foreign investors in China reflects the resilience of the Chinese economy and the strong appeal of the Chinese market to foreign investment. He expressed confidence that, as policies such as deferred taxation continue to take effect, China’s attractiveness will further strengthen, encouraging more foreign enterprises to “come, stay, and thrive.”

Litigation & Arbitration
The Supreme People’s Procuratorate has released typical cases on “Strengthening Judicial Protection of People’s Livelihoods by the Procuratorial Organs.”
On February 20, the Supreme People’s Procuratorate website published eight typical cases under the theme “Procuratorial Organs Strengthen Judicial Safeguards for People’s Livelihoods,” covering the handling of offenses such as infringement of citizens’ personal information, fraud, failure to fulfill land‑expropriation compensation and resettlement agreements, and trademark infringement. The cases also address issues including civil procuratorial supervision in financial loan contract disputes, the sealing of juvenile criminal records, and the regulation of food safety for pre‑packaged dishes.
In Case Three, a credit officer at a commercial bank, in order to write off overdue non‑performing loans, used the identity information of socially vulnerable groups—such as impoverished individuals, recipients of subsistence allowances, persons under the Five Guarantees system, persons with disabilities, and students—to arrange loan‑guarantee procedures, thereby repaying others’ delinquent loans. The officer also concealed the fact that Zhang Moumou, Yang Mouyi, and others were merely nominal borrowers acting on behalf of other actual borrowers who were using new loans to repay old ones, and subsequently filed a lawsuit with the court seeking repayment of a principal amount of RMB 160,000. Relying solely on the loan and repayment documentation provided by the commercial bank, and without examining the relevant bank transaction records or considering Yang Mouyi’s absence, the court mediated an agreement whereby Zhang Moumou was held liable for the full repayment of the principal and interest, while Yang Mouyi and others were assigned joint and several liability. Subsequently, the procuratorate issued a recommendation for retrial; following the retrial, the court set aside the original mediation agreement and dismissed the plaintiff’s claim. At present, leads concerning the crime of illegally issuing loans have been referred to the public security authorities.

The Supreme People’s Court has released typical cases of criminal penalties for false litigation in accordance with the law.
Recently, the Supreme People’s Court selected and released four typical cases from recent years in which false litigation crimes were punished in accordance with the law. These cases cover common areas of false litigation, such as property disputes involving one party to a divorce proceeding, civil lending disputes, and matters related to civil enforcement. They also include emerging types of offenses, such as illegally withdrawing personal housing provident fund funds through fraudulent litigation schemes.
In Case Four, Duan, seeking illicit gains, conspired with multiple individuals to fabricate creditor–debtor relationships and filed six civil lawsuits with the People’s Court of a certain district, thereby inducing the court to issue civil mediation agreements. Subsequently, Duan instructed others to apply for compulsory enforcement, thereby appropriating a total of RMB 305,300 from the housing provident fund accounts of the six defendants in those cases and handing the funds over to the defendants for their use. In return, Duan received remuneration amounting to RMB 37,035. The court held that Duan repeatedly directed others to file civil lawsuits based on fabricated facts, thereby disrupting the judicial order; such conduct constitutes the crime of false litigation. Accordingly, Duan was sentenced to one year of imprisonment and fined RMB 20,000.

The Shanghai Higher People’s Court has released exemplary cases and incidents related to the development of a law-based business environment for 2025.
Recently, the Shanghai Higher People’s Court held a press conference to release the “Shanghai Courts’ Action Plan for Building a Law-Based Business Environment (Version 8.0)” and to present typical cases and examples of efforts to foster a law-based business environment in Shanghai, covering the period up to 2025.
Among them, this batch of published typical cases comprises ten in total, covering such issues as the clarification of cross-class protection rules for well-known trademarks, the review of back-to-back clauses, the resolution of corporate disputes involving countries along the Belt and Road, the business operations of internet platform enterprises, and judicial cooperation in cross-border insolvency. In Case No. 1, the Shanghai Higher People’s Court held that the case clarified the criteria for determining the scope of cross-class protection for well-known trademarks: namely, whether the alleged infringer harbors an improper subjective intent to induce public confusion or misidentification. Even where sales channels differ, if the infringement amounts to comprehensive imitation, it should still be deemed an act of infringement.

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