JC Master Legal News Issue 1146

Key Takeaways for This Issue

The China Securities Regulatory Commission has issued the “Implementation Opinions on Doing a Good Job in the Five Major Financial Tasks in the Capital Market.”
To thoroughly implement the directives of the Third Plenary Session of the 20th CPC Central Committee, the Central Financial Work Conference, the Central Economic Work Conference, and the new “Nine Measures for National Finance” on advancing the five major areas—science and technology finance, green finance, inclusive finance, elderly‑care finance, and digital finance—the China Securities Regulatory Commission has formulated the “Implementation Opinions on Leveraging the Capital Market to Advance the Five Major Areas of Finance.”
Six departments join forces to standardize supply chain finance operations.
The People’s Bank of China, the National Administration of Financial Regulation, and four other departments have jointly issued the “Notice on Regulating Supply Chain Finance and Guiding Supply Chain Information Service Institutions to Better Support SME Financing (Draft for Comments),” with a deadline for feedback set for March 8, 2025.
Twelve departments have jointly issued a document to further advance the reform of the ecological and environmental damage compensation system.
On February 4, the Chinese Government Website released the “Opinions on Several Specific Issues Concerning the Further Advancement of the Reform of the Ecological and Environmental Damage Compensation System.”
The Supreme People’s Court has released the key statistics for judicial adjudication in 2024.
The Supreme People’s Court has released key statistics on judicial adjudication for 2024. Overall, courts nationwide accepted more than 46 million cases, an increase of nearly one percent year on year; however, the growth rate declined significantly compared with the same period last year. Case closures also rose year on year. As of the end of December 2024, the number of litigation cases pending for over one year had fallen by more than one-third compared with the previous year, reflecting substantial progress in the ongoing effort to clear long‑pending cases.
Finance & Capital Markets
The China Securities Regulatory Commission has issued the “Implementation Opinions on Doing a Good Job in the Five Major Financial Tasks in the Capital Market.”
To thoroughly implement the directives of the Third Plenary Session of the 20th CPC Central Committee, the Central Financial Work Conference, the Central Economic Work Conference, and the new “Nine Measures for National Finance” on advancing the five major areas—science and technology finance, green finance, inclusive finance, elderly‑care finance, and digital finance—the China Securities Regulatory Commission has formulated the “Implementation Opinions on Leveraging the Capital Market to Advance the Five Major Areas of Finance” (hereinafter referred to as the “Implementation Opinions”).

The “Implementation Opinions” focus on supporting the development of new‑type productive forces, emphasizing the deepening of comprehensive capital market reforms in investment and financing, enhancing institutional inclusiveness and adaptability, and directing factor resources toward major strategic priorities, key sectors, and areas of weakness—such as technological innovation, advanced manufacturing, green and low‑carbon development, and inclusive livelihoods. Centered on strengthening financial services across the entire value chain and lifecycle of technology‑based enterprises, enriching the capital market’s product and institutional framework for advancing the green and low‑carbon transition, improving the effectiveness of capital market‑driven inclusive finance, better meeting diversified pension‑related financial needs, accelerating the digital and intelligent transformation of the capital market, bolstering the capacity of industry institutions to deliver on the “five major tasks” of financial services, and enhancing the capital market’s collective efforts to implement these five priority areas, the document sets forth 18 policy measures.

Going forward, the China Securities Regulatory Commission will adhere to the principle of seeking progress while maintaining stability and using progress to reinforce stability. It will coordinate efforts to manage risks, strengthen regulation, and promote high-quality development, while enhancing policy coordination, implementation, and public communication. The Commission will steadily advance the capital market’s work on the “five major tasks” in finance, thereby better serving the overarching goals of Chinese‑style modernization and high‑quality economic and social development.

Zhou Xiaozhou, spokesperson for the China Securities Regulatory Commission, fielded questions from reporters regarding the “Implementation Opinions on Doing a Good Job with the Five Major Financial Tasks in the Capital Market.”
On February 7, the China Securities Regulatory Commission (CSRC) issued and implemented the “Opinions on Doing a Good Job in the Five Major Financial Tasks in the Capital Market” (hereinafter referred to as the “Opinions”). CSRC spokesperson Zhou Xiaozhou answered questions from reporters regarding the “Opinions.”

I. Question: What is the background behind the issuance of the “Implementation Opinions”? What work has the capital market already undertaken to effectively carry out the five major tasks in the financial sector?

Answer: The Central Financial Work Conference called for making significant progress in five key areas: technology finance, green finance, inclusive finance, elderly‑care finance, and digital finance. The Third Plenary Session of the 20th CPC Central Committee once again emphasized the need to vigorously develop these five types of finance—technology finance, green finance, inclusive finance, elderly‑care finance, and digital finance—and to strengthen high‑quality financial services for major national strategies, priority sectors, and weak links. The new “Nine Measures for National Finance” also sets out clear requirements for advancing these five critical areas of financial development.

The capital market possesses unique advantages in sharing innovation risks and fostering the formation of innovation‑driven capital. Successfully implementing the “five major financial initiatives” is both a core responsibility for serving the real economy and an intrinsic requirement for the high‑quality development of the capital market itself. In recent years, the China Securities Regulatory Commission (CSRC) has thoroughly carried out the decisions and arrangements of the CPC Central Committee and the State Council, continuously intensifying its efforts to advance these five key areas. It has accelerated the establishment of a diversified and inclusive issuance and listing framework, further enhanced the functions of the capital market, and stepped up support for priority sectors such as technological innovation, green and low‑carbon development, and inclusive social welfare, thereby contributing to high‑quality economic and social development. In 2024, with a particular focus on strengthening science‑and‑technology finance, the CSRC successively issued and implemented policy documents including the “16 Measures for Science and Technology Finance,” the “Eight Measures for the STAR Market,” and the “Six Measures on Mergers and Acquisitions,” continually refining the regulatory framework and market ecosystem that support technological innovation. First, it has actively supported the innovative development of technology‑focused enterprises. A number of “hard‑tech” companies engaged in critical core‑technology research have listed on the A‑share market; many of them have achieved significant technological breakthroughs and leapfrog growth after going public, fostering industrial agglomeration in fields such as integrated circuits, biopharmaceuticals, and high‑end equipment manufacturing, thus effectively promoting the deep integration of capital, industry, technology, and talent. To date, more than 90% of companies listed on the STAR Market, the ChiNext, and the Beijing Stock Exchange are high‑tech enterprises, and strategic emerging industries account for over half of all listed companies across the market. Second, it has improved the alignment of merger and acquisition (M&A) and restructuring mechanisms with the needs of listed companies seeking to develop new‑type productive forces. Since the second half of 2024, activity in the M&A and restructuring market has markedly increased, with listed offices showing heightened enthusiasm for leveraging M&A to drive transformation, upgrade their operations, consolidate industries, and pursue secondary growth drivers. Notably, M&A activity in hard‑tech sectors such as integrated circuits has surged, with landmark transactions—such as acquisitions of unprofitable technology assets and “A‑plus‑H” mergers—successfully completed. Third, it has gradually built a market ecosystem that guides private equity and venture capital funds to invest early, in small‑scale ventures, over the long term, and in hard‑tech projects. In recent years, the share of private equity and venture capital investments directed toward strategic emerging industries—including semiconductors, new energy, and biopharmaceuticals—has continued to grow; currently, there are over 100,000 active investment projects, with total committed capital exceeding RMB 4 trillion. Fourth, the pilot program for science‑and‑technology corporate bonds has transitioned to a regular regime and is advancing toward high‑quality development. Since the launch of the sci‑tech bond pilot, cumulative issuances have reached RMB 1.2 trillion, with proceeds primarily channeled into cutting‑edge sectors such as semiconductors, artificial intelligence, new energy, and high‑end manufacturing. At the same time, institutional mechanisms related to review and registration, financing guarantees, and other aspects have been steadily refined.

Meanwhile, the capital market has also achieved positive results in areas such as green finance, inclusive finance, pension finance, and digital finance. In the realm of green finance, stock exchanges have been guided to issue and implement rules on the disclosure of sustainability reports by listed companies, systematically standardizing sustainability‑related information‑disclosure requirements. By the end of 2024, more than 2,200 listed companies had disclosed ESG or corporate social responsibility reports, an increase of over 20% year on year, further highlighting the investment value of high‑quality offices. Green corporate bonds have enjoyed robust growth, with cumulative issuance reaching approximately RMB 870 billion since the pilot program began; institutional frameworks, regulatory rules, and technical standards continue to improve, while innovative products such as carbon‑neutral bonds, low‑carbon transition bonds, and blue bonds are steadily emerging. Green‑themed funds have expanded rapidly: by year‑end 2024, there were 350 such funds totaling over RMB 310 billion, covering themes including ESG, low carbon, new energy, and climate change, and spanning major asset classes like equities and bonds. Green and low‑carbon futures contracts—on low‑sulfur fuel oil, industrial silicon, lithium carbonate, and other commodities—have been successively launched, earning strong support from real‑economy enterprises. In inclusive finance, pilot programs have been rolled out, and a cooperative linkage mechanism between the National Equities Exchange and Quotation System and regional equity markets has been established, facilitating the listing of specialized, niche, and innovative SMEs on the New Third Board. Through assessment and evaluation mechanisms, industry participants have been encouraged to increase their commitment to inclusive finance and enhance services for small and micro enterprises. The “Insurance + Futures” model, which leverages the futures market to provide risk management and price protection for farmers, has operated smoothly for a decade, covering more than 20 agricultural commodities and benefiting over 7 million farming households across 31 provinces, autonomous regions, and municipalities directly under the central government. Notably, Hainan’s Baisha natural rubber and Shaanxi’s Huangling apple projects have been recognized as global best practices in poverty reduction. Regarding pension finance, the Central Financial Work Commission and the China Securities Regulatory Commission jointly issued the “Guiding Opinions on Promoting the Entry of Medium- and Long-Term Funds into the Market,” while six departments—including the two aforementioned agencies—jointly released the “Implementation Plan for Promoting the Entry of Medium- and Long-Term Funds into the Market.” These measures have refined the policy and institutional framework supporting the participation of pensions and other medium- and long-term funds in the capital market, fostering a virtuous cycle between stable pension returns and the sound functioning of the capital markets. In December 2024, five ministries, including the Ministry of Human Resources and Social Security, jointly announced the nationwide expansion of the individual pension system. Publicly offered FOFs and index funds—characterized by safe operations, proven stability, standardized underlying assets, and a focus on long-term capital preservation—have been included in the catalog of eligible individual pension products; by year‑end 2024, nearly 300 such funds had been approved. The public fund industry currently manages over RMB 6 trillion in various pension‑related assets. In the field of digital finance, steady progress is being made toward technological self‑reliance in the securities and futures sectors. A special pilot program titled “Data Elements × Capital Markets” has been launched, with the first batch of 11 pilot projects now underway, ensuring the prudent application of relevant technologies within the capital market and empowering the industry’s digital transformation, while simultaneously strengthening data security safeguards. Furthermore, pioneering efforts are under way to explore the use of artificial intelligence and large‑language models in capital markets; these technologies have already been validated in applications such as intelligent sentiment analysis and financial‑statement review, and collaborative initiatives are advancing the joint development and shared use of AI‑driven application hubs for the capital market.

Recently, building on its earlier efforts, the China Securities Regulatory Commission has conducted further comprehensive and in-depth research and formulated the “Implementation Opinions,” which aim to systematically plan and set clear requirements for the capital market to deliver on the five major financial tasks. These measures seek to strengthen policy coordination and inter‑agency collaboration, thereby providing higher‑quality products and services to support major national strategies, key sectors, and areas of weakness in economic and social development.

II. Question: What are the main contents of the “Implementation Opinions”?

Answer: The “Implementation Opinions” are divided into eight sections and comprise 18 measures.

The first section sets out the overarching requirements, clarifying the guiding principles and fundamental tenets for the capital market to effectively implement the “five major initiatives” in finance. It emphasizes focusing on establishing institutional mechanisms that support comprehensive innovation and serve the development of new‑type productive forces, enhancing the inclusiveness and adaptability of the capital market’s systems, and strengthening its role in fostering the formation of innovative capital and optimizing resource allocation, thereby contributing to the advancement of Chinese‑style modernization. In doing so, it calls for adhering to four key principles: upholding political leadership and serving the overall national interest; adopting a problem‑oriented approach and implementing targeted policies; pursuing both upholding core values and promoting innovation while seeking progress within stability; and ensuring systematic integration and coordinated collaboration.

The second part focuses on strengthening financial services across the entire value chain and lifecycle of technology‑based enterprises. At the Central Financial Work Conference, General Secretary Xi Jinping emphasized the need to coordinate equity, debt, insurance, and other instruments to provide comprehensive, end‑to‑end financial support throughout the life cycle of such offices. The “Implementation Opinions” set out specific measures targeting each stage of capital market‑based support for technology‑driven companies. First, it supports high‑quality technology offices in issuing and listing, continues to implement a package of policies and measures—including the “Sixteen Measures for Technology” and the “Eight Measures for the STAR Market”—enhances inclusiveness toward new industries, business models, and technologies, and guides these enterprises to make prudent use of both domestic and overseas markets and resources. Second, it refines systems governing M&A, restructuring, and equity‑based incentives for listed technology companies, effectively implements the “Six Measures on M&A,” and encourages listed offices to pursue mergers and restructurings aligned with industrial transformation, upgrading, and supply‑chain strengthening. Third, it steers private equity and venture capital funds toward early‑stage, small‑scale, long‑term investments in hard‑tech sectors, facilitates diversified exit channels, broadens funding sources, and fosters a virtuous cycle of fundraising, investment, management, and exit. Fourth, it intensifies support from the multi‑tiered bond market for technological innovation, streamlines the registration process for issuing science‑and‑technology bonds, and backs projects in areas such as new infrastructure by enabling the issuance of real estate investment trusts (REITs).

The third through sixth sections each propose specific measures centered on green finance, inclusive finance, pension finance, and digital finance. First, we will enrich the product and institutional framework of the capital market to advance the green and low‑carbon transition. This includes refining standards for green bonds and sustainable disclosure, supporting equity and debt financing for green industries, and developing a broader range of green futures and options. Second, we will enhance the capital market’s capacity to deliver inclusive financial services. We will implement the State Council’s policy directives on promoting high‑quality development of inclusive finance, improve institutional arrangements for serving small and micro enterprises, diversify channels for serving agricultural entities, and better meet residents’ diversified investment needs. Third, we will ensure that the capital market more effectively addresses the diverse needs of pension finance. We will remove bottlenecks in the entry of medium- and long‑term funds from social security, insurance, and wealth management into the market, and support equity and debt financing for companies in the silver‑economy sector. Fourth, we will accelerate the digital and intelligent transformation of the capital market. We will drive the digital transformation of industry participants, strengthen digital infrastructure, and advance the intelligent modernization of regulatory systems.

Part VII focuses on strengthening the capacity of industry institutions to deliver on the “five major financial tasks,” urging securities and futures offices to refine their positioning and governance, and to bolster compliance management and risk prevention. Part VIII aims to enhance the coordinated efforts of the capital market in advancing these five key financial priorities, reinforcing collaboration with relevant departments and local governments, and ensuring a balanced approach to risk mitigation, robust regulation, and the promotion of high-quality development, while fostering a favorable public‑opinion environment.

III. Question: With regard to further and comprehensively deepening capital market reform, what are the key policy considerations underlying the “Implementation Opinions”?

A: The Third Plenary Session of the 20th CPC Central Committee laid out a comprehensive plan for further deepening reform of the capital market. The Central Economic Work Conference explicitly called for deepening integrated reforms of capital market financing and investment, removing bottlenecks that hinder medium- and long-term funds from entering the market, and enhancing the inclusiveness and adaptability of the capital market’s institutional framework. The China Securities Regulatory Commission is thoroughly studying and implementing the spirit of the Third Plenary Session, as well as the guiding principles of the Central Financial Work Conference and the Central Economic Work Conference. It is steadily advancing the effective implementation of the new “Nine Measures” and the capital market’s “1+N” policy framework, upholding a market‑oriented and law‑based approach, accelerating a new round of capital market reform and opening-up, and ensuring that measures to prevent risks, strengthen regulation, and promote high‑quality development are fully put into practice.

The “Implementation Opinions” constitute an important component of the capital market’s “1+N” policy framework and represent a key measure for further deepening comprehensive reform in the sector. Adhering to a reform‑oriented mindset and approach, the document focuses on the critical and challenging issues outlined in the “Five Major Initiatives,” while aligning with the requirements for advancing the integrated reform of capital market financing and investment. It proposes more targeted and actionable policy measures, primarily in the following areas: First, enhancing the inclusiveness and adaptability of the capital market’s institutional framework to better support technological innovation and the development of new‑type productive forces. This includes: further improving mechanisms for accurately identifying technology‑based enterprises and facilitating the listing of high‑quality, pre‑profit tech offices; refining information‑disclosure rules for such companies; optimizing the underwriting and issuance process for new shares and, when appropriate, expanding the scope of pilot programs for these mechanisms; and adopting multiple measures to invigorate the M&A and restructuring market, including refining valuation methodologies and payment‑tool arrangements. Second, intensifying reforms on the investment side. This entails: effectively implementing the “Guiding Opinions on Encouraging Medium‑ and Long‑Term Funds to Enter the Market” and their implementation plan, thereby removing bottlenecks that hinder such inflows; steadily reducing the overall fee rates in the public fund industry and improving regulations governing investment advisory services; encouraging pension funds, insurance capital, and other sources to appropriately broaden their investment horizons; and promoting the establishment of long‑term performance‑evaluation frameworks—spanning at least three years—among various professional institutional investors. Third, developing diversified equity financing and a multi‑tiered bond market. This is a specific task set forth at the Third Plenary Session of the 20th CPC Central Committee. The “Implementation Opinions” lay out a range of measures aimed at perfecting and strengthening the multi‑tiered capital market system. These include: fostering a virtuous cycle of fundraising, investment, management, and exit for private equity and venture capital funds; advancing policy refinements to optimize the “reverse linkage” mechanism for fund exits and piloting stock‑based distributions; studying ways to improve the transfer of fund shares; and developing secondary‑market private equity funds (S‑funds). In addition, the document calls for deepening pilot programs for inclusive finance on the Beijing Stock Exchange and the New Third Board, enhancing comprehensive services on regional equity markets’ specialized boards for “specialized, refined, distinctive, and innovative” enterprises; and promoting the high‑quality development of corporate bonds for technological innovation, exploring intellectual‑property‑asset securitization, and expanding green bonds, green asset‑backed securities, and rural revitalization bonds, among other initiatives.

IV. Question: What work arrangements has the China Securities Regulatory Commission put in place to promote the implementation of the “Implementation Opinions”?

Answer: The “Implementation Opinions” constitute an important institutional framework for ensuring the effective and detailed implementation of the financial sector’s “Five Major Initiatives” in the capital market. The China Securities Regulatory Commission will formulate a detailed work plan to ensure that all policies and measures are put into practice and yield tangible results. First, it will improve working mechanisms, strengthen coordination and cooperation with relevant departments and local governments, pool resources to advance the implementation of all tasks, and jointly carry out policy communication and public‑opinion guidance, proactively addressing market concerns. Second, it will reinforce the responsibilities of industry institutions, leverage the guiding role of performance assessments, and urge securities and futures offices to adopt sound business philosophies, enhance organizational management and resource allocation, and tailor their efforts to local conditions in advancing the financial sector’s “Five Major Initiatives.” Third, it will balance development with security, strengthen risk monitoring and early warning systems, and promptly rectify emerging risks; it will also rigorously crack down on all illegal and non‑compliant activities conducted under the guise of the financial sector’s “Five Major Initiatives,” thereby effectively safeguarding the legitimate rights and interests of investors.

Six departments join forces to standardize supply chain finance operations.
The People’s Bank of China, the National Administration of Financial Regulation, and four other departments have jointly issued the “Notice on Regulating Supply Chain Finance and Guiding Supply Chain Information Service Institutions to Better Support SME Financing (Draft for Comments),” with a deadline for feedback set for March 8, 2025.
The Notice comprises 21 provisions, clarifying the guiding principles and direction for the development of supply-chain finance, safeguarding the rights and interests of small and medium-sized enterprises, standardizing commercial banks’ management of supply-chain finance to effectively mitigate business risks, and establishing a basic framework for the standardized administration of electronic receivables certificates.
The Notice stipulates that the issuance and transfer of electronic receivables certificates must be backed by genuine trade transactions. Commercial banks engaging in related financing activities are required to rigorously review trade‑related documentation, effectively identifying and preventing schemes to misappropriate bank funds as well as fund‑transfer activities lacking a legitimate trade basis. Supply‑chain information service providers shall implement appropriate controls over the number of transfer tiers and transaction counts, promptly conducting risk assessments and issuing alerts for any irregular splitting or cascading transfers. The Notice further mandates that, in principle, the payment term for electronic receivables certificates should not exceed six months, with a maximum of one year. For payment terms exceeding six months, commercial banks are required to strengthen their scrutiny of the reasonableness of the credit period and prevailing industry settlement practices, and to exercise prudence in extending financing.

Commercial & Corporate
The Ministry of Ecology and Environment has issued a document to streamline the environmental impact assessment process for pharmaceutical construction projects.
On January 21, the website of the Ministry of Ecology and Environment published the “Letter Soliciting Public Comments on the Draft Notice on Optimizing Environmental Impact Assessment for Pharmaceutical Construction Projects,” with a deadline for submitting feedback set for February 10.
The Notice comprises three sections totaling 12 provisions, introducing two reform measures: optimizing environmental impact assessment (EIA) management for changes during the operational phase of construction projects, and supporting the implementation of bundled approval procedures for biopharmaceutical projects. It strengthens EIA review and approval oversight for pharmaceutical projects across ten key areas, and further stipulates measures such as enhancing quality reviews of EIA documents in the pharmaceutical sector, reinforcing ongoing and post‑approval supervision, and refining the criteria and key considerations for reviewing and conducting quality assessments of different types of EIA documents.

The State Administration for Market Regulation has issued a list to prioritize the improvement of the consumer environment.
On February 7, the website of the State Administration for Market Regulation published the “Notice on Issuing the List of First-Time Administrative Violations in Market Regulation Subject to No Penalty and Minor Violations Exempt from Penalty (I).”
The two lists together cover 12 types of first-time and minor violations. Specifically, the “First-Time Violation No-Penalty List” includes eight categories of offenses that are committed for the first time, result in only minor harm, and are promptly rectified; the “Minor Offense Exemption from Penalty List” encompasses four types of violations that are minor in nature, promptly corrected, and have not caused any adverse consequences. For both lists, the measures applicable to parties subject to “no penalty for first-time violations” or “exemption from penalty for minor offenses” are clearly defined, including ordering the party to immediately cease the unlawful conduct, urging and guiding proactive corrective actions, mandating lawful compensation for consumer losses, and requiring fulfillment of recall obligations.

The National Intellectual Property Administration has issued the “Guidelines for the Construction and Management of Industrial Intellectual Property Operation Centers.”
On February 7, the website of the National Intellectual Property Administration published the “Notice on Issuing the Provisional Guidelines for the Construction and Management of Industrial Intellectual Property Operation Centers.”
The “Work Guidelines” comprise six sections and a total of 18 provisions, clearly defining the management responsibilities of the National Intellectual Property Administration and local intellectual property administration authorities at all levels with respect to industrial intellectual property operation centers at each level. They also set forth procedural standards governing the naming conventions, accreditation procedures, duty‑performance requirements, dynamic management, and revocation of qualifications for national‑level industrial intellectual property operation centers, as well as stipulations prohibiting the independent establishment of branch centers.

The Shanghai Administration for Market Regulation has introduced ten measures to streamline market access registration.
On February 6, the Shanghai Municipal Administration for Market Regulation issued the “Ten Measures to Facilitate Market Access Registration.”
The “Ten Measures” include expanding the coverage of the “Shanghai Enterprise Registration Online” service, advancing its digital and intelligent upgrade, optimizing the smart assistance system for enterprise name registration, and streamlining procedures such as real-name authentication, electronic signatures, and the download of electronic business licenses. The measures also stipulate that enterprises engaging in business activities—consistent with their registered scope of operations and not subject to administrative licensing—at locations other than their registered address may, at their discretion, either obtain a business license for a branch or file a record for operating at multiple locations under a single license.

The Shanghai Communications Administration has released 20 measures under the “Industry Focus on Enhancing Enterprise Experience” initiative.
On February 6, the Shanghai Communications Administration issued the “Action Plan for the Shanghai Information and Communications Industry to Focus on Enhancing Business Experience and Continuously Building World-Class Communication Service Capabilities and a Favorable Business Environment.”
The Plan outlines 20 measures across three key areas: “strengthening the digital infrastructure and elevating the level of communication services,” “improving communication services and fostering a fair market environment,” and “enhancing risk prevention and control while guiding industry-wide collaborative governance.” It also commits to leading the development of two national industry standards—“5G Network Planning, Construction, and Acceptance Requirements for Supporting High-Level Automated Driving” and “5G Network Performance Requirements for Supporting High-Level Automated Driving”—and to vigorously advancing the deployment of dedicated 5G‑V2X networks in priority regions such as the Lingang New Area, Pudong’s Jinqiao, and the Yangtze River Delta Demonstration Zone for Integrated Ecological and Green Development.

The Ministry of Education has revised the Measures for the Administration of Student Records for Primary and Secondary School Students.
On February 7, the Ministry of Education’s website published the “Notice on Issuing the Measures for the Administration of Student Academic Records for Primary and Secondary School Students.”
The Measures comprise five chapters and thirty articles, emphasizing educational equity. They further refine and standardize the conditions for student record transfers, including interprovincial and intraprovincial transfers, and address issues such as suspended student records, mismatches between students and their registered records, and duplicate enrollment. For example, Article 15 stipulates that when a student transfers, the receiving school shall initiate the transfer procedure through the national student record system, with both the transferring school and the student record authorities of both institutions responsible for processing the request. The receiving and transferring schools, along with the respective student record authorities, must complete the review and approval of the transfer within ten working days. Furthermore, the transferring school is required to maintain a backup of the electronic student record and retain necessary paper copies of relevant documents.

Revision of the Regulations on Scientific Research for Military Equipment
Recently, the Chairman of the Central Military Commission signed an order promulgating the newly revised Regulations on Equipment Research and Development in the Armed Forces, which will take effect on March 1, 2025.
The Regulations comprise 8 chapters and 49 articles, implementing the requirements for transforming equipment development and optimizing and refining processes and mechanisms related to planning, project approval, and project management. They emphasize category-based management, innovatively introducing tiered and categorized oversight for pre‑research, development, and comprehensive research projects. The Regulations strengthen quality and efficiency control by systematically standardizing procedures for research‑and‑development quality assurance, cost management, acceptance and evaluation,成果管理, technical support, and security and confidentiality. Furthermore, they reinforce supervision and regulation by detailing and improving industry‑wide inspection and oversight methods, specifying corrective measures for follow-up inspections, and clarifying specific circumstances warranting accountability.

In 2024, the total value of service imports and exports increased by 14.4% year on year.
On January 27, the Ministry of Commerce website released the 2024 annual report on the development of trade in services.
Data show that in 2024, the total value of service imports and exports reached RMB 7.5238 trillion, up 14.4% year on year. Specifically, exports amounted to RMB 3.17556 trillion, an increase of 18.2%, while imports totaled RMB 4.34824 trillion, up 11.8%. The service trade deficit stood at RMB 1.17268 trillion, narrowing by RMB 31.43 billion compared with the previous year. Travel services posted the fastest growth. Since the beginning of 2024, travel services have continued to expand rapidly, with annual imports and exports reaching RMB 2.05115 trillion, a rise of 38.1%, making it the largest component of service trade. Knowledge-intensive services also maintained steady growth, with total imports and exports totaling RMB 2.89652 trillion, up 6.5% for the year. Among these, telecommunications, computer, and information services recorded particularly strong increases, rising by 39.3% and 12.2%, respectively.

A spokesperson from the Ministry of Commerce provided an overview of the 2024 performance of China’s outbound investment and international cooperation.
The Ministry of Commerce website has released data on the 2024 performance of China’s outbound investment and cooperation. According to the figures, in 2024, non‑financial outward direct investment totaled US$143.85 billion, up 10.5% year on year. Investment in the ASEAN region grew particularly rapidly, increasing by 12.6% compared with the previous year, with major allocations directed toward countries such as Singapore, Indonesia, and Thailand.
In addition, in 2024, the total turnover of overseas contracted projects reached US$165.97 billion, up 3.1% year on year, while the value of newly signed contracts amounted to US$267.3 billion, an increase of 1.1% over the previous year, both hitting record highs. In 2024, Chinese enterprises’ non‑financial direct investment in countries jointly building the Belt and Road Initiative totaled US$33.69 billion, up 5.4% from the previous year. Meanwhile, the value of newly signed overseas contracted project contracts reached US$232.48 billion, and the realized turnover stood at US$138.76 billion, accounting for 87% and 83.6% of the respective totals.

The 2024 performance of the electronic information manufacturing industry has been released.
On February 6, the website of the Ministry of Industry and Information Technology released the 2024 operating performance of the electronic information manufacturing sector.
Data show that in 2024, the value added of large-scale electronic information manufacturing increased by 11.8% year on year, outpacing the growth rates of overall industry and high-tech manufacturing by 6 and 2.9 percentage points, respectively. Among major products, mobile phone output reached 1.67 billion units, up 7.8% year on year, with smartphone production at 1.25 billion units, a 8.2% increase; microcomputer output totaled 340 million units, up 2.7%; and integrated circuit output stood at 451.4 billion units, a 22.2% rise. According to customs statistics, in 2024 China exported 143 million laptops, up 1.7% year on year; 814 million mobile phones, up 1.5%; and 298.1 billion integrated circuits, up 11.6%.

The State Administration of Government Offices has issued the 2025 Work Plan for Energy and Resource Conservation in Public Institutions.
Recently, the State Administration of Government Offices issued the “Notice on Work Arrangements for Energy and Resource Conservation in Public Institutions in 2025.”
The Notice comprises nine provisions, calling for the implementation of a new mechanism to fully transition from dual control of energy consumption to dual control of carbon emissions; the development of statistical and accounting standards for carbon emissions in public institutions; and the exploration of initiatives such as carbon‑emission‑rights trading and the establishment of a carbon‑inclusive system. It also urges public institutions to take the lead in adopting domestically produced new‑energy vehicles, to increase the proportion of new‑energy official vehicles in line with local conditions, and to advance, in an orderly manner, charging‑infrastructure projects for central government agencies. Furthermore, it emphasizes active participation in the drafting of the Ecological Environment Code and the revision of the Energy Conservation Law, while promoting the amendment of the Regulations on Energy Conservation in Public Institutions.

The National Medical Products Administration has issued several regulations to support innovation in cosmetic raw materials.
On February 6, the website of the National Medical Products Administration published the “Announcement on the Issuance of Several Provisions Supporting Innovation in Cosmetic Raw Materials.”
The Notice comprises nine provisions, primarily setting forth the following measures: optimizing technical requirements for the classification of new ingredient registration and filing; promoting the simultaneous submission of applications for new ingredients and their associated products; strengthening innovation‑driven services and the translation of new‑ingredient technologies into practical applications; enhancing technical guidance and fostering communication on new‑ingredient matters; improving management of the safety monitoring period for new ingredients; providing technical guidance for research on cosmetic‑ingredient standards and advancing the development and revision of such standards; reinforcing fundamental research related to raw materials; and bolstering the information‑technology infrastructure for cosmetic ingredients.

Shanghai has issued the Three-Year Action Plan for Enhancing the Quality of Elderly Care Institutions.
On February 6, the Shanghai Municipal Government website published the “Notice on Issuing the Three-Year Action Plan for Enhancing the Quality of Elderly Care Institutions in Shanghai (2025–2027).”
The Plan proposes focusing on six key areas—healthcare, caregiving, nutrition, housing, emotional well-being, and safety—that are closely linked to elderly residents’ experiences in long-term care facilities, and launching eight citywide initiatives to enhance the quality of such institutions: (1) Healthcare–Long-Term Care Integration Initiative; (2) Caregiving Enhancement Initiative; (3) Facility Renovation and Upgrading Initiative; (4) Nutritious Dining Initiative; (5) Heartwarming Companionship Initiative; (6) Safety and Peace of Mind Initiative; (7) Smart Technology Empowerment Initiative; and (8) Brand‑Building and Excellence Initiative.

Shanghai has launched the upgraded “Version 3.0” of its cross‑border funds pooling scheme, further enhancing multinational corporations’ sense of policy‑related convenience and benefits.
Recently, the Shanghai Branch of the State Administration of Foreign Exchange issued the “Pilot Management Regulations for the Integrated Domestic and Foreign Currency Funds Pool Business of Multinational Corporations in Shanghai.”
The pilot program primarily comprises five key measures: permitting multinational corporations to conduct relevant transactions directly, based on payment instructions, within the limits of their foreign‑debt and overseas‑lending quotas; allowing the lead entity of a multinational group to handle centralized receipts and payments on behalf of its overseas member entities in dealings with domestic member entities or other overseas parties; enabling the partial pooling of foreign‑debt and overseas‑lending quotas; and appropriately preserving a degree of flexibility in the financial arrangements of individual member entities.

The State Council has unveiled 21 measures to promote the high-quality development of refined oil circulation.
On February 5, the Chinese Government Website published the “Opinions of the General Office of the State Council on Promoting High-Quality Development of Refined Oil Circulation.”
The “Opinions” set forth 21 specific measures across five key areas: First, improve the management system for refined oil circulation. Implement a filing‑based regulatory regime for wholesale and storage operations of refined oil, and formulate and rigorously enforce nationwide uniform qualification standards for retail operations. Urge enterprises to strictly comply with ledger‑keeping requirements and advance credit‑based classification and tiered management of refined‑oil operators. Second, strengthen the cross‑departmental oversight mechanism for refined‑oil circulation. Third, intensify regulation in priority areas of refined‑oil distribution. Enhance safety‑production supervision, tighten compliance with environmental‑protection standards, and reinforce quality‑and‑metrology oversight. Standardize online sales of refined oil and crack down on illegal and non‑compliant practices in the sector. Fourth, promote the modernization of refined‑oil distribution. Fifth, establish supporting measures.

Twelve departments have jointly issued a document to further advance the reform of the ecological and environmental damage compensation system.
On February 4, the Chinese Government Website released the “Opinions on Several Specific Issues Concerning the Further Advancement of the Reform of the Ecological and Environmental Damage Compensation System.”
The “Opinions” comprise eighteen provisions, clearly setting out requirements regarding the departments or institutions responsible for specific tasks, case‑lead screening, initiation of claims, determination of cases involving only minor and insignificant harm, investigation into ecological and environmental damage, expert appraisal and assessment, compensation negotiations, judicial conofficeation, handling of straightforward cases, the scope of major cases, coordination with administrative law enforcement, coordination with environmental public interest litigation, restoration of ecological and environmental damage, evaluation of restoration outcomes, financial management, and the implementation of reform responsibilities. The “Opinions” further stipulate that, for obligors who actively participate in negotiations, promptly fulfill compensation agreements, and carry out restoration measures, their compliance records may be submitted to the relevant administrative authorities for consideration in exercising discretionary power when imposing administrative penalties, or provided to judicial organs as reference during case review and adjudication. Where a compensation agreement is reached through negotiation, the compensation claimant and its designated department or institution, together with the compensation obligor, may apply to the people’s court with jurisdiction for judicial conofficeation; if the people’s court, upon review, declines to grant such conofficeation, the parties shall, after verifying the relevant facts based on the court’s judgment, conduct another round of negotiations. If these renewed negotiations fail, legal action shall be instituted without delay.

Beijing plans to introduce 20 measures to accelerate the development and utilization of public data resources.
On February 5, the Beijing Municipal Government website published the “Notice on Public Solicitation of Comments on the ‘Implementation Opinions on Accelerating the Development and Utilization of Public Data Resources in Beijing (Draft for Comments)’,” with the deadline for submitting feedback set for February 12.
The “Implementation Opinions” comprise seven chapters and 20 articles, focusing on strengthening the foundation for the development and utilization of public data, streamlining channels for such activities, enhancing service capabilities in this area, unleashing innovation in the data‑element market, balancing development with security, and improving the public‑data governance framework. The document proposes bringing the authorized operation of public data within the scope of “three major matters” decision‑making, specifying authorization criteria, operational models, tenure, exit mechanisms, and responsibilities for security management, and authorizing qualified operators to engage in the development of public data resources, product commercialization, and technical services.

The State Council has approved the “Several Provisions on the Administration of Imported Yachts for Self-Drive Tourism in the Hainan Free Trade Port.”
On February 5, the Chinese Government Website published the State Council’s reply approving the “Several Provisions on the Administration of Inbound Yachts for Self-Drive Tourism in the Hainan Free Trade Port.”
In its reply, the State Council has instructed the People’s Government of Hainan Province and relevant departments, including the Ministry of Justice, to carefully review and analyze the new circumstances and issues that have arisen in the implementation of the “Several Provisions on the Administration of Imported Yachts for Self-Drive Tourism in the Hainan Free Trade Port,” and to promptly seek instructions and submit reports on any matters of major significance.

The Ministry of Finance and the People’s Bank of China have jointly deployed work related to the sale of savings treasury bonds through electronic channels.
On January 28, the Chinese Government Website published the “Notice on Further Improving Work Related to the Sale of Savings Bonds (Electronic Type) Through Electronic Channels.”
The Notice clarifies that, prior to the issuance of each tranche of Savings Bonds (Electronic), underwriting syndicate members shall promptly repost the Ministry of Finance’s bond‑related announcements through the electronic channels used for selling these bonds. During the issuance period, they shall publish and promptly update, via their respective electronic channels, the available subscription quota for that channel. Before an investor makes their first purchase of Savings Bonds (Electronic), underwriting syndicate members must open a personal bond account for the investor, which will record all purchases and changes in holdings of such bonds. The investor shall designate a RMB settlement account under their name as the funds‑clearing account for this personal bond account. The electronic‑channel functionality of the funds‑clearing account may only be activated through a counter‑service channel. When investors purchase Savings Bonds (Electronic), they must provide identity‑verification methods with security levels no lower than those used for fund transfers through the same channel, such as USB keys, cryptographic tokens, mobile‑phone SMS one‑time passwords, or biometric authentication. Under no circumstances may electronic channels be used to process early redemption, pledge‑based loans, non‑transactional transfers, or changes to the funds‑clearing account; nor may any fees be charged to investors.

The Ministry of Industry and Information Technology plans to issue the “Guidance on Building a Standards System for the Science and Technology Services Sector.”
On February 5, the website of the Ministry of Industry and Information Technology published the “Public Call for Comments on the ‘Guidance on Building a Standards System for the Science and Technology Services Sector’ (Draft for Public Comment),” with a deadline for submitting feedback set for March 7.
The Guidelines specify that the standards system for the science and technology services sector comprises three components: foundational and general standards, science and technology service standards, and management‑support standards. Among these, science and technology service standards constitute the core of the system, providing clear service specifications for specific sub‑sectors within the industry. By 2027, the Guidelines aim to develop more than 40 standards related to the science and technology services sector, covering areas such as terminology and definitions, reference architectures, management practices, technological applications, service models, and assessment and evaluation, thereby progressively establishing a comprehensive and well‑structured standards framework for the sector.

The Ministry of Transport is conducting a verification of the waterway transport sector and its ancillary industries for 2025.
On February 5, the website of the Ministry of Transport published the “Notice on Conducting the 2025 Verification of Waterway Transportation and Related Supporting Industries.”
The Notice clarifies that, from the date of its issuance until April 30, 2025, a comprehensive verification campaign will be conducted for the waterway transport sector and its ancillary industries. In the domestic waterway transport field, the primary areas of verification include: the continued compliance of operators engaged in waterway transport and ship management with applicable licensing requirements, as well as the ongoing eligibility of their operating vessels; the registration status of operators providing ship agency, passenger transport agency, and cargo transport agency services; the circumstances of foreign-invested enterprises operating domestic waterway transport; the operational and production conditions of such operators and their managed vessels since the last verification, along with any instances of illegal or non-compliant business practices; and the operators’ views and suggestions regarding industry regulation. In the international and cross‑strait (mainland–Hong Kong/Macao) waterway transport sectors, the main verification focuses on: whether operators meet the relevant qualification requirements; the capacity of vessels owned or controlled by the operators, including both Chinese‑flagged vessels and those flying flags of convenience; the business performance of operators and their operating vessels during 2024, together with records of violations or infractions; whether international shipping companies have, in accordance with the law, submitted the required statistical information through the Comprehensive Management Information System for Waterway Transport Construction (International and Hong Kong/Macao Shipping Business—International Statistical Reporting—Statistical Survey System for the International Maritime Transport Industry); and the operators’ opinions and recommendations concerning industry administration.

The Ministry of Transport plans to issue the “Safety Management Specifications for Road Transport Enterprises Handling Dangerous Goods.”
On February 5, the website of the Ministry of Transport published the “Notice on Soliciting Public Comments on the ‘Safety Management Specifications for Road Transport Enterprises Handling Dangerous Goods (Draft for Comments)’,” with a deadline for submitting feedback set for February 20.
The Standard clarifies the key elements of the enterprise-wide work safety responsibility system, requiring companies to allocate work safety responsibilities to each department and position, specify responsible personnel, define the scope of accountability, and establish performance‑assessment criteria, while strengthening oversight and evaluation of the system’s implementation. It further stipulates that hazardous‑goods enterprises must establish a work safety management framework, including a work safety meeting system and a safety management system for employees. In addition, it sets out comprehensive operational procedures covering vehicle technical management, parking‑lot management, transport operations, electronic waybill management, satellite‑based positioning and monitoring, and emergency rescue.

The National Energy Administration plans to issue the “General Code for Metal Structures in Water Conservancy and Hydropower Projects.”
The website of the National Energy Administration has published the “Notice on Public Solicitation of Comments on the General Code for Metal Structures in Water Conservancy and Hydropower Projects (Draft for Comments),” with a deadline for submitting feedback set for March 26.
This Standard has been formulated to clarify the minimum technical requirements for metal structures in the construction and safe operation of water conservancy and hydropower projects, thereby ensuring their reliable quality and safe performance, safeguarding both project and public safety, and protecting the ecological environment. Whether the technical methods and measures employed in project construction comply with the provisions of this Standard shall be determined by the relevant responsible parties. Innovative technical methods and measures shall be subject to thorough justification and must meet the performance requirements set forth in this Standard.

Taxation
Adjustments have been made to VAT tax return filing requirements, effective February 1.
The State Taxation Administration has issued the “Announcement on Adjusting Matters Related to Value-Added Tax Return Filing” (State Taxation Administration Announcement No. 2 of 2025), which shall take effect as of February 1, 2025.
The Notice clarifies that, when filing VAT returns for goods subject to the VAT taxation regime, taxpayers shall log in to the nationally standardized electronic tax bureau and complete the conofficeation of the intended use of export‑goods information data. Taxpayers engaged in processing‑trade re‑export operations are required, when conofficeing the intended use of such export‑goods information data, to report the value of the bonded imported materials used in the production of the exported goods.
With respect to the tax return forms, this adjustment includes the following: first, it adds explanatory notes to Line 28, “① Installment‑paid tax amount,” of the “Value‑Added Tax and Additional Taxes Return (for General Taxpayers)”; second, it revises the reporting criteria for the “Advance Withholding Rate (%)” column in Lines 13a through 13c of the “Supplementary Information to the Value‑Added Tax and Additional Taxes Return (Form I)” (Details of Sales for the Current Period); and third, it removes the references to “out‑of‑jurisdiction” and “across counties (cities)” from the “Advance Payment Form for Value‑Added Tax and Additional Taxes” pertaining to construction services.

Tax refunds upon departure! The State Taxation Administration supports the development of cross-border e‑commerce exports to overseas warehouses.
The State Taxation Administration has issued the “Announcement on Matters Concerning the Support of Export Tax Refund (Exemption) for Cross-Border E‑Commerce Exports to Overseas Warehouses” (State Taxation Administration Announcement No. 3 of 2025), which shall take effect as of January 27, 2025.
The Announcement clarifies matters related to export tax refunds (or exemptions) for goods exported via the overseas warehouse model (customs supervision mode code “9810,” hereinafter the same). According to the Announcement, when a taxpayer exports goods through the overseas warehouse method, they may, upon completion of customs declaration and departure from the country, submit the export customs declaration and other relevant documentation to apply for an export tax refund (or exemption). In practice, taxpayers shall determine the specific application procedure based on the sales status of the goods: if the goods have already been sold, they shall apply for the export tax refund (or exemption) in accordance with the existing regulations; if the goods have not yet been sold, they shall follow the “tax refund upon departure, with final settlement upon sale” approach—namely, first filing an advance application for the export tax refund (or exemption) using the export customs declaration and other supporting documents, and subsequently settling the tax liability based on the actual sales performance.

Litigation & Arbitration
The Supreme People’s Court has released the key statistics for judicial adjudication in 2024.
The Supreme People’s Court has released key statistics on judicial adjudication for 2024. Overall, courts nationwide accepted more than 46 million cases, an increase of nearly one percent year on year; however, the growth rate declined significantly compared with the same period last year. Case closures also rose year on year. As of the end of December 2024, the number of litigation cases pending for over one year had fallen by more than one-third compared with the previous year, reflecting substantial progress in the ongoing effort to clear long‑pending cases.
Specifically, with regard to criminal cases: over 1.2 million first-instance cases were filed, a year-on-year decrease; more than 1.6 million defendants were convicted and the judgments became final, also down from the previous year; the appeal rate for criminal cases declined year on year, while the rate of second-instance court hearings increased by more than 25 percentage points; and the average case‑closing time fell by over 7% compared with the prior year. As for civil and commercial cases: over 18 million first-instance civil and commercial cases were filed, up year on year; the appeal rate for such cases decreased, as did the rate of applications for retrial, while the mediation rate rose; the rate of applications for enforcement of judgments fell markedly, and the average case‑closing time shortened by nearly 5% year on year. With respect to administrative cases: nearly 300,000 first-instance cases were filed, a year-on-year decline; over 170,000 applications for enforcement review of non‑litigious administrative actions were accepted, also down from the previous year; the appeal rate for administrative cases decreased, the rate of applications for retrial fell, and the mediation rate increased.

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