JC Master Legal News Issue 1143

Key Takeaways for This Issue

The China Securities Regulatory Commission and the Shanghai Stock Exchange have simultaneously revised the regulations governing issuance and underwriting.
The China Securities Regulatory Commission has issued the “Decision on Amending the Measures for the Administration of Securities Issuance and Underwriting (Draft for Public Comment),” aimed at implementing the “Eight Measures to Deepen Reform of the STAR Market and Support Technological Innovation and the Development of New‑Type Productive Forces.” The deadline for submitting comments is February 2, 2025.
The SSE STAR Market Composite Index is set to be launched, serving as a benchmark for the overall performance of the STAR Market.
The Shanghai Stock Exchange and China Securities Index Co., Ltd. announced that they will officially launch the SSE STAR Market Composite Index and its price‑based counterpart, the SSE STAR Market Composite Price Index, on January 20. The STAR Market Composite Index includes all eligible listed securities from the STAR Market as its constituents, thereby reflecting the overall performance of the STAR Market.
The General Office of the State Council has issued a document to promote the high-quality development of government investment funds.
The General Office of the State Council has issued the “Guiding Opinions on Promoting the High-Quality Development of Government Investment Funds,” outlining 25 specific measures across eight key areas.
The Supreme People’s Court has introduced 98 policy measures to provide high-quality judicial services that support and safeguard scientific and technological innovation.
On January 6, the Supreme People’s Court issued the “Opinions of the Supreme People’s Court on Providing High-Quality Judicial Services to Safeguard Scientific and Technological Innovation,” along with relevant typical cases.
Finance & Capital Markets
The China Securities Regulatory Commission and the Shanghai Stock Exchange have simultaneously revised the regulations governing issuance and underwriting.
The China Securities Regulatory Commission has issued the “Decision on Amending the Measures for the Administration of Securities Issuance and Underwriting (Draft for Public Comment),” aimed at implementing the “Eight Measures to Deepen Reform of the STAR Market and Support Technological Innovation and the Development of New‑Type Productive Forces.” The deadline for submitting comments is February 2, 2025.

The draft for public comment authorizes stock exchanges to establish specific requirements for classified share allocations and amends paragraph 3 of Article 12. In addition, in light of revisions to the Company Law, the Interim Measures for the Administration of Share Reductions by Shareholders of Listed Companies, and other relevant laws and regulations, Articles 21, 27, 33, and 38 have been accordingly amended, and a new article has been added as Article 61. The Shanghai Stock Exchange has concurrently issued the “Detailed Rules for the Implementation of Securities Issuance and Underwriting in Initial Public Offerings on the Shanghai Stock Exchange (Draft for Public Comment),” clarifying that unprofitable companies may, among other measures, adopt an agreed‑upon lock‑up arrangement.

The Shanghai Stock Exchange convened a symposium with foreign-invested institutions to advance the comprehensive deepening of capital market reforms.
Recently, the Shanghai Stock Exchange (hereinafter referred to as “SSE”) convened a symposium with foreign-invested institutions, engaging in in-depth discussions with representatives from eight such entities and thoroughly soliciting their views and suggestions. An SSE official stated that the exchange is earnestly implementing the spirit of the Third Plenary Session of the 20th CPC Central Committee, steadfastly deepening the opening-up of the capital market, and welcoming foreign institutions to offer advice and proposals, so as to jointly advance the further, comprehensive deepening of reforms in the capital market and achieve high-quality development.
During the symposium, participants unanimously agreed that the Third Plenary Session of the 20th CPC Central Committee clearly conveyed China’s office resolve to further deepen reform across the board and expand opening-up. Coupled with the introduction of the new “Nine Measures for National Development” and the gradual implementation of the capital market’s “1+N” policy framework, they expressed strong confidence in the sustained, steady development of the Chinese economy and the steady progress of the capital markets, maintaining a long-term bullish outlook. In particular, since the meetings of the Political Bureau of the CPC Central Committee and the Central Economic Work Conference, a comprehensive package of additional policies has continued to deliver results, with fiscal and monetary‑financial policies stepping up their counter‑cyclical adjustments. These measures have sent positive signals of stronger support for the economy’s ongoing recovery and improvement, further bolstering economic resilience, effectively enhancing international market expectations for China’s economic prospects, and boosting overseas investors’ confidence in the investment value of the A‑share market.
Meanwhile, the participating institutions put forward specific recommendations for deepening the opening-up of China’s capital market and further promoting its high-quality development. These include continuously optimizing and refining the Shanghai–Shenzhen–Hong Kong Stock Connect and QFII mechanisms to ensure smooth channels for foreign investment in A-shares; intensifying outreach on relevant policies and encouraging high-quality listed companies to conduct overseas roadshows, thereby helping foreign investors gain a comprehensive and systematic understanding of China’s economy and the development of its listed offices; and enhancing the investment appeal of listed companies by improving shareholder returns and corporate governance standards.
An official from the Shanghai Stock Exchange stated that China’s economic fundamentals remain solid and that the economy has demonstrated strong resilience amid a complex international environment. With the implementation of a comprehensive package of policies, the upward momentum continues to strengthen, creating favorable conditions for the capital market to further advance innovation and opening-up and to deepen reform across the board. The Shanghai Stock Exchange will adhere to the principle of “grasping both hands and promoting both,” aligning with the arrangements set forth at the Central Economic Work Conference. It will focus on risk prevention, strengthened regulation, and high-quality development, pursuing progress while maintaining stability, using progress to ensure stability, upholding core principles while fostering innovation, and prioritizing sound foundations before undertaking structural reforms, thereby achieving further tangible results in all areas of work. The Exchange also encourages foreign-invested institutions to offer constructive advice and suggestions, and to leverage their strengths as international investment banks and institutions, serving as bridges to global markets, so as to jointly build a capital market that is secure, well-regulated, transparent, open, dynamic, and resilient.

The Shenzhen Stock Exchange Held a Symposium for Foreign-Invested Institutions.
The Shenzhen Stock Exchange convened a symposium with foreign-invested institutions to solicit their views and suggestions on the recent developments in the A-share market. Officials from the Shenzhen Stock Exchange, along with representatives from eight foreign‑owned securities and fund offices, QFII entities, and asset management companies, attended the meeting.
At the symposium, participating foreign-invested institutions warmly commended the Chinese government’s policies and resolute commitment to fostering sustained and stable economic development. They unanimously agreed that, since the Central Politburo meeting and the Central Economic Work Conference held on September 26, 2024, existing policies have continued to deliver results, while new measures have been rolled out in succession, effectively anchoring market expectations and bolstering international investor confidence. The fundamental rationale underpinning the long-term positive outlook of China’s capital markets has grown even more robust, with the long-term investment appeal of sectors such as high-end manufacturing, information technology, and consumer electronics becoming increasingly evident. Participants all expressed their intention to deepen their engagement in the Chinese market and continue serving its needs.
A relevant official from the Shenzhen Stock Exchange stated that foreign-invested institutions are key participants in the A-share market. The Exchange places great importance on communication and engagement with these institutions, continuously enhancing market transparency and predictability to create a favorable environment for overseas entities to conduct business and invest. China’s economy remains underpinned by a solid foundation, numerous strengths, strong resilience, and substantial potential, and the fundamental conditions and long-term upward trend remain unchanged. At present, the Shenzhen Stock Exchange is earnestly studying and implementing the spirit of the Third Plenary Session of the 20th CPC Central Committee and the Central Economic Work Conference, as well as the new “Nine Measures” for capital market development. Under the unified leadership of the China Securities Regulatory Commission, the Exchange remains committed to a reform agenda characterized by market‑orientation, rule of law, and internationalization, further deepening capital market reforms across the board, strengthening the foundational institutional framework, continuously improving the quality of listed companies, and fostering a sound market ecosystem. It is hoped that foreign‑invested institutions will maintain confidence, adhere to a long-term perspective, and work together to promote the sustained, healthy development of China’s capital market.

The China Securities Association has issued the “Guidance on the Management of the ‘Whitelist’ for Offline Professional Institutional Investors.”
The website of the Securities Association of China has published the “Notice on the Issuance of the ‘Guidelines for the Administration of the ‘White List’ of Offline Professional Institutional Investors (Trial)’.”
The Guidelines comprise five chapters and twenty-four articles, setting forth provisions on the classification, organizational implementation, and application of the “whitelist.” They specify the conditions under which professional institutional investors may voluntarily apply to be included on the whitelist, elaborate on the assessment criteria, publicly disclose the procedures for managing whitelist classifications, and clarify the mechanisms for applying the whitelist.

The Asset Management Association of China has released the “Template for the Disclosure of Details and Format Regarding Trading Through Securities Offices and Commission Payments by Public Fund Managers’ Public Funds.”
The website of the Asset Management Association of China has published the “Announcement on the Release of the ‘Template for the Disclosure of Details and Format Regarding Trading Through Securities Offices and Commission Payments for Publicly Offered Funds Under Public Fund Managers.’”
The Notice clarifies that, by March 31 each year, fund managers shall publicly disclose on their official websites information including the criteria and procedures for selecting securities offices, any affiliations with the securities offices providing services, the commission rates for stock transactions, annual summaries of trading volumes along with detailed allocation breakdowns, and annual summaries of commission expenditures together with corresponding allocation details. If, in a given year, a fund manager engages in securities trading under the newly added “rental of trading unit” model specified in Article 6 of the Regulations; if the commission rate applicable to the relevant fund product for that year fails to comply with the requirements set forth in Article 5 of the Regulations; or if, pursuant to regulatory requirements, the commission rate is adjusted such that it no longer meets the standards stipulated in Article 4 of the Regulations—under these special circumstances—the fund manager shall provide appropriate explanations in its disclosure documents.

Commercial & Corporate
The General Office of the State Council has issued a document to promote the high-quality development of government investment funds.
The General Office of the State Council has issued the “Guiding Opinions on Promoting the High-Quality Development of Government Investment Funds,” outlining 25 specific measures across eight key areas.
The Opinions state that government investment funds should focus on major national strategies, key sectors, and weak links where the market fails to function effectively, thereby attracting and leveraging additional social capital to support the development of a modern industrial system and accelerate the cultivation and growth of new‑type productive forces. Based on their investment orientation, government investment funds are broadly categorized into industrial investment funds and venture capital funds.
The Opinions emphasize that government investment funds shall not be established for the sole purpose of attracting investment, and encourage the removal of restrictions on the registration locations of such funds and their managers. They also call for streamlining the mechanism for adjusting the government’s capital contribution ratio, with incentives to reduce or eliminate the requirement for reinvestment. Furthermore, local governments are strictly prohibited from financing through illegal or non-compliant borrowing to make contributions; no new implicit local government debt may be incurred, and state-owned enterprises and financial institutions must not be compelled to contribute capital or advance funds.

The National Medical Products Administration has released the revised Regulations on the Supervision and Administration of Medical Devices.
On January 7, the National Medical Products Administration (NMPA) published on its official website the full text of the Regulations on the Supervision and Administration of Medical Devices, as revised in accordance with the State Council’s Decision on Amending and Repealing Certain Administrative Regulations dated December 6, 2024.
The Regulations amend the phrase “the health authority under the State Council” in paragraph 2 of Article 19 to read “the health authority under the State Council and the disease prevention and control agency under the State Council”; and delete the reference to “family planning technical service institutions” in Article 103.

The Ministry of Industry and Information Technology is launching pilot projects for 10-gigabit optical networks.
On January 7, the website of the Ministry of Industry and Information Technology released the “Notice on Launching Pilot Projects for 10-Gigabit Optical Networks.”
The Notice specifies that pilot projects for 10‑gigabit optical networks will be launched in key settings such as residential communities, industrial facilities, and industrial parks, enabling the deployment and application of technologies including 50G‑PON (Passive Optical Network) ultra‑broadband optical access, coordinated operation of FTTH (Fiber to the Home)/FTTR (Fiber to the Room) with Wi‑Fi 6E, high‑speed, high‑capacity optical transmission, and the integration of optical networks with artificial intelligence.

The National Intellectual Property Administration has issued the Measures for the Supervision and Administration of Experts’ Participation in Public Decision-Making.
On January 3, the website of the National Intellectual Property Administration published the “Notice on Issuing the Measures for the Supervision and Administration of Experts of the National Intellectual Property Administration Participating in Public Decision-Making.”
The Measures consist of seven chapters and twenty-five articles, clearly defining provisions related to the management of public decision-making matters involving experts, expert selection, expert database administration, review and advisory services, and oversight and supervision. The Measures stipulate that, depending on the severity of the circumstances, experts who fall under any of the following situations shall be subject to measures such as admonitory interviews, suspension from participating in public decision-making in the field of intellectual property, or revocation of their qualifications:
(1) The review and evaluation were not conducted in strict accordance with the prescribed procedures and standards;
(2) Without the prior approval of the relevant departments and units of the Bureau, engaging in external publicity or soliciting business under the guise of participating in public decision-making;
(3) Taking advantage of one’s participation in public decision-making to obtain improper benefits;
(4) Engaging in activities that may compromise the impartiality of advisory opinions, or accepting gifts, banquets, or other favors from stakeholders or their intermediaries;
(5) Violating confidentiality regulations by disclosing state secrets, work-related secrets, commercial secrets, or other information that should not be made public, which was learned in the course of participating in public decision-making; or unauthorizedly making public opinions or statements related to matters under consideration in public decision-making.

The Ministry of Commerce has decided to impose provisional anti-dumping measures, in the form of a deposit, on cypermethrin originating in India.
On January 7, the Ministry of Commerce website published the “Preliminary Determination in the Anti-Dumping Investigation on Cypermethrin Imported from India.”
The Preliminary Determination indicates that the investigating authorities have preliminarily found that cypermethrin originating in India is being dumped, that the domestic cypermethrin industry has suffered material injury, and that a causal link exists between the dumping and the material injury. Accordingly, the investigating authorities have decided to impose provisional anti-dumping measures in the form of cash deposits. Effective January 8, 2025, importers shall, when importing the products under investigation, provide the relevant cash deposits to the Customs of the People’s Republic of China at the deposit rates determined for each company in this preliminary determination.

The Ministry of Transport has issued the “Technical Specifications for Geophysical Exploration in Water Transport Engineering.”
On January 7, the website of the Ministry of Transport published the “Notice on the Issuance of the Technical Specifications for Geophysical Exploration in Waterway Engineering.”
The “Regulations” comprise 10 chapters and 4 appendices, accompanied by explanatory notes to the provisions, and primarily cover technical aspects such as seabed stratigraphic profiling, aquatic seismic imaging, ground-penetrating radar surveying, high-density electrical resistivity tomography, magnetic surveying, downhole logging, and geophysical exploration reporting.

The National Development and Reform Commission has issued standard formats for preparing and approving applications for central budgetary investment funds.
On January 3, the website of the National Development and Reform Commission issued the “Notice on the Issuance of Standard Formats for Preparing and Approving Applications for Central Budget Investment Funds.”
The Notice clarifies that the format for preparing the funding application report shall follow the requirements set forth in Annex 1, “Requirements for the Preparation of Funding Application Reports,” and that the content must, in accordance with the relevant provisions of the “Outline and Instructions for Preparing Feasibility Study Reports for Investment Projects,” meet the depth requirements of a feasibility study. Where the National Development and Reform Commission issues a separate approval for the funding application report, the format of the approval document shall comply with Annex 2, “Sample Format for Separately Approved Funding Application Reports.” When the funding application report and the investment plan are approved jointly, the applicable requirements are those specified in Annex 3, “Requirements for the Joint Approval of Funding Application Reports and Investment Plans.”

China Environmental News has released the Top Ten Domestic and International Environmental News Stories of 2024.
Recently, the China Environmental News published the Top Ten Domestic and International Environmental News Stories of 2024.
Among them, the ten major domestic environmental news stories of 2024 are as follows: The Third Plenary Session of the 20th CPC Central Committee was held successfully, systematically outlining key tasks and major measures for deepening reform of the ecological civilization system; the CPC Central Committee and the State Council issued a comprehensive plan to advance the building of a Beautiful China; top-level design for a comprehensive green transformation of economic and social development was unveiled; ecological and environmental zoning management was strengthened, setting clear red lines and boundaries for development; the pollutant discharge permit system was fully implemented, elevating the modernization of ecological and environmental governance; the CCER market was relaunched, and the “dual carbon” policy framework continued to improve; central ecological and environmental protection inspections were deepened, with basin‑wide oversight coordinated to address common issues; the Regulations on Ecological Protection Compensation came into effect, establishing the fundamental institutional framework for ecological compensation; China released an assessment report on the ecological and environmental conditions of the Huangyan Dao waters and Ren’ai Reef; and the Taklamakan Desert achieved the full closure of its 3,046‑kilometer ecological barrier.

Beijing plans to revise the Implementation Rules for the Tiered Cultivation and Management of High-Quality Small and Medium-Sized Enterprises.
On January 3, the Beijing Municipal Government website published the “Notice on Public Solicitation of Comments on the ‘Detailed Rules for the Hierarchical Cultivation and Management of High-Quality SMEs in Beijing (Revised Draft for Comments)’,” with a deadline for submitting feedback set for January 9.
Following the revision, the Implementing Rules comprise five chapters and twenty-four articles, primarily clarifying the criteria for identifying innovative SMEs, specialized, refined, distinctive, and novel SMEs, and national “Little Giant” enterprises; outlining the organizational framework, application procedures, and frequency requirements; and specifying the validity period of high-quality SME qualifications at each certification level, as well as the requirements for renewal reviews, information updates, and reporting of significant changes.

Another boost! In 2025, the “Two New” subsidy policy will be further strengthened and expanded.
The National Development and Reform Commission and the Ministry of Finance have issued the “Notice on Intensifying and Expanding the Implementation of Large-Scale Equipment Upgrading and Consumer Goods Trade-In Policies in 2025,” outlining 27 specific measures across five key areas.
The Notice states that support for equipment‑upgrade projects in key sectors will be strengthened, with the scope of assistance further expanded to include electronic information, workplace safety, and facility agriculture, among others, with a particular focus on promoting the adoption of high‑end, intelligent, and green technologies.
The Notice states that support for the trade-in of used consumer goods will be expanded, with subsidies offered for the purchase of new digital products such as mobile phones. Specifically, individual consumers who buy one of three categories of digital products—mobile phones, tablets, or smartwatches and fitness trackers—with a single-item retail price not exceeding RMB 6,000 will receive a subsidy equal to 15% of the product’s selling price. Each consumer may claim one subsidy per product category, with a maximum subsidy of RMB 500 per item.
With regard to implementation, the Notice emphasizes strengthening financial support, lowering participation thresholds, streamlining subsidy procedures, and enhancing oversight of project funds.

The National Healthcare Security Administration has issued a document to further strengthen efforts to safeguard the medical security rights and interests of workers.
On January 7, the National Healthcare Security Administration website released the “Notice on Further Strengthening Efforts to Safeguard Workers’ Medical Insurance Rights and Interests.”
The Notice sets out specific requirements for ensuring workers’ participation in insurance, safeguarding benefit entitlements, streamlining administrative services, and enhancing inter‑departmental coordination, covering eight key areas: First, vigorously promote workers’ enrollment in basic medical insurance to ensure universal coverage, mandating that local authorities implement enrollment procedures for those holding residence permits. Second, continue to facilitate the seamless transfer and continuation of basic medical insurance relationships, guaranteeing uninterrupted benefit access; it clarifies that if a worker maintains continuous premium payments during such transitions in accordance with regulations, their benefits will not be interrupted. Third, consolidate the level of benefit protection to ensure that all entitled benefits are fully realized. Fourth, expand the scope of family mutual assistance under employees’ medical insurance accounts to achieve broader sharing of coverage. Fifth, steadily broaden the coverage of maternity insurance and adopt multiple measures to progressively enhance benefit levels. Sixth, continue to support the enrollment and benefit entitlement of individuals receiving unemployment insurance benefits. Seventh, improve management and service delivery to ensure timely and full disbursement of benefits. Eighth, establish and strengthen inter‑departmental coordination mechanisms to pool efforts in safeguarding workers’ rights and interests.

The United States has added certain Chinese companies to its “Chinese Military‑Industrial Companies List.”
On January 7, the U.S. Department of Defense added several Chinese companies to its “Chinese Military‑Related Entities List.” Meanwhile, the U.S. Department of Commerce announced that it would place a number of Chinese entities on its Export Control “Entity List” and launched a national security risk review of unmanned aerial systems from China and other countries, focusing on information and communication technologies and services.
China’s Ministry of Commerce stated that the U.S. side disregards WTO rules and market principles, repeatedly broadens the concept of national security, abuses state power, groundlessly accuses China’s “military‑civilian integration” strategy, and uses this as a pretext to impose unjustified suppression on Chinese enterprises. Furthermore, without any factual basis, the U.S. has arbitrarily raised concerns about information security risks associated with drone systems from China and other countries, an approach that is highly irresponsible. Such practices seriously undermine the international economic and trade order, jeopardize the stability of global industrial and supply chains, and infringe upon the legitimate rights and interests of consumers, including those in the United States.

The CPC Central Committee and the State Council have issued 17 guidelines to deepen the reform and development of elderly care services.
On January 7, the Chinese Government Website published the “Opinions of the CPC Central Committee and the State Council on Deepening the Reform and Development of Elderly Care Services.”
The “Opinions” comprise six key areas, proposing to accelerate the development of a three-tier elderly care service network that covers both urban and rural areas; to integrate and coordinate home‑based, community‑based, and institutional elderly care services; to establish a tripartite collaborative mechanism for the development of the elderly care sector and industry; and to strengthen the provision of robust and effective support for all essential elements of elderly care. The document explicitly calls for expediting the establishment of a long-term care insurance system, appropriately defining the scope and standards of care subsidies for economically disadvantaged, functionally impaired older adults, and ensuring seamless coordination between long-term care insurance and existing policies such as care subsidies for high‑age and functionally impaired seniors facing financial hardship. It also supports eligible elderly care projects in issuing real estate investment trusts in the infrastructure sector, expands trust‑based elderly care services, and promotes commercial health insurance products that include long-term care coverage and health management services.

The National Development and Reform Commission has issued 54 guidelines to promote the development of a unified national market.
On January 7, the National Development and Reform Commission’s website published the “Notice on Issuing the Guidelines for Building a Unified National Market (Trial).”
The Guidelines comprise eight chapters and 54 articles, setting out specific requirements for strengthening the unified framework of market‑based institutional rules, advancing high‑standard connectivity of market infrastructure, establishing a unified market for factors of production and resources, promoting a high‑level degree of uniformity in the markets for goods and services, ensuring fair and consistent market regulation, and further standardizing practices that constitute unfair competition or undue market intervention. The Guidelines stipulate that rules governing compulsory measures involving property rights must be refined and standardized; systems for the management of assets involved in legal proceedings should be improved; and it must be made clear that no region may unlawfully intervene in economic disputes or infringe upon the rights and interests of business entities by means of administrative or criminal measures. Furthermore, no region may seize, detain, or freeze the property of business entities beyond its authorized powers, scope, amount, or time limit; conduct law enforcement or exercise jurisdiction in another locality in violation of the law; impose unreasonable conditions that exclude, restrict, or prohibit local business entities from supplying goods or services to other regions; use targeted subsidies or local recommendation lists to bolster protection for local or specific products or to indirectly restrict the entry of non‑local products into the local market; or, in tendering and government procurement processes, unlawfully impose restrictions on or designate particular patents, trademarks, brands, components, origins, or suppliers, among other things.
The Guidelines also place particular emphasis on establishing a nationwide, unified public service platform for social security, completely abolishing household registration–based restrictions on enrollment in social security at the place of employment, and refining policies governing the transfer and continuation of social security relationships.

The fiscal authorities are stepping up support for equipment upgrades and technological transformation, and the implementation period of the interest-subsidy policy has been extended.
On January 6, the Ministry of Finance’s website released a Supplementary Notice on Matters Related to the Fiscal Interest Subsidy Policy for Equipment-Upgrading Loans, clarifying the relevant provisions.
According to the Notice, eligible equipment‑upgrade loans disbursed after March 7, for which loan contracts or contracts for the procurement of equipment or for equipment‑upgrade and renovation services were signed prior to March 7, 2024, shall be covered by the fiscal interest‑subsidy policy. The implementation period of the fiscal interest‑subsidy policy for equipment‑upgrade loans is extended until the People’s Bank of China’s re‑lending quota for equipment‑upgrade-related programs has been fully utilized. Specific procedures for the fiscal interest subsidy shall be implemented in accordance with documents such as Caijin [2024] No. 54 and Fagai Huanzi [2024] No. 1104.

Two departments have issued the “Implementation Plan for the Special Campaign on Optimizing the Regulation Capacity of the Power System.”
On January 6, the website of the National Development and Reform Commission released the “Notice on Issuing the Implementation Plan for the Special Action to Optimize the Regulation Capacity of the Power System (2025–2027).”
The Implementation Plan comprises five key areas and 22 specific measures, aiming to optimize the development of regulation capacity to support the efficient integration and utilization of more than 200 million kilowatts of new energy annually from 2025 to 2027, with a national new‑energy utilization rate no lower than 90%. It calls for the formulation of a plan for building regulation capacity, the refinement of mechanisms for dispatching and utilizing regulating resources, and the improvement of market‑based mechanisms for their participation.

The Ministry of Commerce plans to issue the “Low-Carbon Evaluation Requirements for Photovoltaic Module Export Products.”
On January 6, the Ministry of Commerce’s website published the “Public Call for Comments on the Industry Standard ‘Low-Carbon Evaluation Requirements for Photovoltaic Module Export Products (Draft for Public Comment)’,” with a deadline for submitting feedback set for February 6.
The “Requirements” specify the functional unit, system boundaries, trade‑off criteria, data and data quality, calculation methods, data quality assessment, low‑carbon evaluation requirements, and general principles and methodologies for preparing product carbon footprint reports for photovoltaic modules. These provisions apply to the low‑carbon evaluation of exported photovoltaic module products.

The General Administration of Customs has issued a document to streamline procedures related to the approval of import permits for animals and plants.
Recently, the General Administration of Customs published on its website the “Announcement on Optimizing Procedures for the Approval of Permits for the Importation of Animals and Plants Subject to Quarantine.”
The Notice clarifies that, for special needs such as scientific research, when importing into China any of the prohibited items listed in Article 5, Paragraph 1 of the Law of the People’s Republic of China on Animal and Plant Quarantine at the Border, the entity using the prohibited item or its agent must submit a request for special quarantine approval to the directly affiliated customs authority at the place of use prior to importation. Upon approval by the General Administration of Customs, the entity shall obtain the “People’s Republic of China Permit for Import Quarantine of Animals and Plants.” After accepting the application, the directly affiliated customs authority at the place of use shall, in the presence of the user or its agent, conduct an on-site or video‑based inspection within five working days of the facilities and safety measures at the premises designated for scientific research, quarantine, or isolation, and carry out a comprehensive assessment of risks related to the introduction of animal and plant diseases, biosecurity concerns, and potential impacts on the ecological environment. The duration of the review shall be communicated to the applicant in writing.

The General Administration of Customs has repealed and declared invalid certain normative documents.
Recently, the General Administration of Customs website published “Announcement on the Repeal and Declaration of Invalidity of Certain Regulatory Documents (I)” and “Announcement on the Repeal and Declaration of Invalidity of Certain Regulatory Documents (II).”
The two announcements collectively repealed 82 normative documents, including the “Announcement on the Publication of the List of Countries or Regions Eligible for Preferential Import Tariff Rates,” the “Announcement on the Rules of Origin and Tariff Concession Schedules for Goods under the Bangkok Agreement with respect to the Republic of Korea and the Democratic Socialist Republic of Sri Lanka,” the “Announcement on the Application of Zero Tariffs to Certain Products That Have Already Entered Production but Are Intended for Future Production Among the Second Batch of Hong Kong-Originated Imported Goods Under CEPA,” the “Announcement on the Application of Zero Tariffs to Drawing Inks and Other Ink Products Originating in the Macao Special Administrative Region Under CEPA,” the “Announcement on the Application of the China–ASEAN Free Trade Area Tariff Rates to Six Countries, Including Brunei, Indonesia, Malaysia, Myanmar, Singapore, and Thailand,” and the “Announcement on the Dual‑Identity Management of Enterprises in Customs Special Supervision Zones.” In addition, a total of 98 normative documents were declared invalid.

The Beijing Economic-Technological Development Area plans to issue the “Several Measures to Promote Sustained Economic Recovery and Improvement.”
The Beijing Municipal Government website has published an announcement soliciting public comments on the “Several Measures of the Beijing Economic-Technological Development Area to Promote a Sustained Recovery and Improvement of the Economy (Draft for Comments).” The deadline for submitting feedback is January 8.
The “Several Measures” comprise a total of 10 provisions. Building on the 2024 policies for industries such as manufacturing, wholesale and retail, information and software, science and technology, leasing and business services, and construction, it adds policy measures for three additional sectors: finance, transportation, and culture, sports, and entertainment. Furthermore, in addition to the incentive for achieving positive growth in the first quarter of 2024 across all industries, this year introduces a similar reward mechanism for positive first-quarter growth in every sector, thereby further lowering the threshold for receiving policy incentives.

The National Administration of Financial Regulation has issued the Measures for the Management of Margin Requirements for Derivatives Transactions Not Subject to Central Clearing by Financial Institutions.
On January 6, the website of the National Administration of Financial Regulation published the “Notice on Issuing the Measures for the Management of Margin Requirements for Non-Centralized Clearing Derivatives Transactions by Financial Institutions.” The measures will take effect on January 1, 2026, while the revised margin requirements will come into force on September 1, 2026.
The Measures comprise six chapters and thirty-seven articles, clearly setting out provisions on margin collection conditions, margin requirements, eligible collateral and its management, dispute resolution, cross-border transactions, and other related matters. Notably, the Measures stipulate that initial margin requirements will be phased in over three stages. Specifically, financial institutions and their counterparties whose group‑level average notional principal of non‑centrally cleared derivatives exceeded RMB 500 billion as of the end of March, April, and May of the most recent calendar year shall be subject to the initial margin requirement starting September 1, 2027; those exceeding RMB 300 billion shall be subject to it starting September 1, 2028; and those exceeding RMB 60 billion shall be subject to it starting September 1, 2029.

The State Administration for Market Regulation has approved the release of a batch of important national standards.
Recently, the State Administration for Market Regulation (National Standardization Administration) approved and released a batch of important national standards covering agriculture and rural development, everyday life, transportation, workplace safety, urban management and services, as well as high‑tech fields.
In the transportation sector, the State Administration for Market Regulation (National Standardization Administration) has issued four national standards covering complete commercial vehicles, passenger cars, and special-purpose vehicles, thereby standardizing rear‑impact safety requirements for passenger cars and in‑cabin noise levels for buses, further enhancing overall vehicle performance. It has also released four national standards on product requirements and performance test methods for critical components such as vehicle braking systems and wheels, helping to improve the manufacturing quality of these key parts. Additionally, eight national standards for electric‑vehicle infrastructure and equipment have been promulgated, addressing issues such as supply voltage, vehicle‑to‑everything connectivity, battery‑swap stations, and electrical connectors.

The State Council has issued twenty-four measures to comprehensively deepen the reform of pharmaceutical and medical device regulation.
The Chinese Government Website has published the “Opinions of the General Office of the State Council on Comprehensively Deepening Regulatory Reform for Pharmaceuticals and Medical Devices to Promote High-Quality Development of the Pharmaceutical Industry.”
The “Opinions” comprise six areas and twenty-four specific measures, explicitly stipulating that innovative drugs and medical devices for rare diseases that meet the relevant criteria shall be exempted from clinical trial requirements. The number of registration‑testing batches for rare‑disease medicines will be reduced from three to one, with the per‑batch usage amount lowered from three times the full‑item testing requirement to two times. Based on product risk considerations, import registration inspections and post‑market surveillance for rare‑disease medicines will be coordinated and scheduled, thereby shortening the waiting period for overseas inspections. Furthermore, a pilot program will be explored allowing designated medical institutions to import, on an expedited basis, urgently needed rare‑disease drugs and medical devices that have not yet been registered or marketed in China. Finally, the scope of provincial drug regulatory authorities’ inspection and testing institutions authorized to conduct batch release for biological products (including vaccines), as well as the range of applicable product categories, will be gradually expanded.

The State Council Executive Meeting reviewed measures to advance urban renewal.
Premier Li Qiang presided over an executive meeting of the State Council, where measures to advance urban renewal were discussed, a report on efforts to ensure timely payment of wages to rural migrant workers was heard, and the draft Regulations on the Protection of Ancient and Famous Trees was reviewed and approved.
The Regulations stipulate that efforts should be accelerated to renovate aging residential communities, urban neighborhoods, industrial zones, and urban villages; strengthen the construction and upgrading of urban infrastructure; enhance urban functions; restore urban ecosystems; and protect and pass on the city’s historical and cultural heritage. It is also necessary to ensure adequate provision of land, funding, and other key resources, revitalize and make efficient use of underutilized existing land, coordinate fiscal and financial resources, refine market‑based financing mechanisms, and attract private capital to participate in urban renewal. Furthermore, localities should be encouraged to undertake innovative experiments tailored to their specific conditions, establish sound and sustainable urban renewal frameworks, and promote high‑quality urban development.

The Ministry of Transport has issued the “Technical and Management Specifications for the Operation of Fully Automated Urban Rail Transit Systems.”
On January 6, the website of the Ministry of Transport issued the “Notice on the Issuance of the ‘Technical and Management Specifications for the Operation of Fully Automated Urban Rail Transit Systems (Trial)’.”
Building on existing management practices for train operation, passenger services, and safety assessment under the ATO (Automatic Train Operation) system, as well as operational technical specifications for signaling, rolling stock, and other subsystems, the Standard addresses the unique functions and technological advancements of fully automated operating systems. Comprising seven sections, it sets forth basic functional and performance requirements for five major systems—signaling, rolling stock, communications, platform screen doors, and integrated monitoring—as well as the passenger service system, covering areas such as system interlocking, interface alignment, parameter optimization, and human–machine interaction. Grounded in life-cycle‑wide safety management and quality control, the Standard also clarifies the scope of system integration work and specifies integration requirements—including system interface alignment and rigorous safety‑and‑quality controls—for phases such as design coordination, comprehensive joint commissioning, and trial operations.

Taxation
The tax authorities have announced three typical cases of fraudulently obtaining tax and fee preferential policies.
To ensure the effective and precise implementation of the various tax and fee preferential policies rolled out by the CPC Central Committee and the State Council, the tax authorities, while optimizing tax and fee service measures, facilitating the direct and swift access to policy benefits, and fostering a favorable business environment, have also steadfastly investigated and prosecuted, in accordance with laws and regulations, instances of improper or fraudulent claims of such incentives, thereby safeguarding a fair and competitive market environment. On January 7, tax authorities in Shanxi, Zhejiang, Shenzhen, and other localities lawfully investigated and publicly disclosed three typical cases of fraudulently obtaining tax and fee preferential policies, namely:
I. The Inspection Bureau of the Lüliang Municipal Tax Service, Shanxi Province, has investigated and prosecuted a case of tax evasion involving the fraudulent reporting of research and development (R&D) expenses to claim an additional tax deduction. The investigation revealed that Lin County Yumin Coking Coal Co., Ltd. in Shanxi Province improperly benefited from the R&D expense additional deduction tax preferential policy by falsely inflating R&D expenditures such as electricity costs, materials consumed in R&D, and equipment maintenance fees, thereby underpaying corporate income tax by RMB 7.96 million. In accordance with the Enterprise Income Tax Law of the People’s Republic of China, the Tax Collection and Administration Law of the People’s Republic of China, the Administrative Penalty Law of the People’s Republic of China, and other relevant provisions, the Inspection Bureau of the Lüliang Municipal Tax Service, State Taxation Administration, has legally recovered the unpaid taxes, imposed late payment penalties, and levied fines totaling RMB 13.54 million.
II. The Inspection Bureau of the Quzhou Municipal Tax Service, Zhejiang Province, has, in accordance with the law, investigated and prosecuted a case involving the fraudulent issuance of VAT invoices by exploiting the VAT exemption policy for small-scale taxpayers. The investigation revealed that the Quzhou Chuangan Construction Engineering Construction Drawing Review Center, by controlling four individually owned businesses, paid its employees’ salaries to these four entities, thereby fabricating consulting income. Subsequently, these individual businesses, taking advantage of the VAT exemption policy for small-scale taxpayers, illegally issued 238 standard VAT invoices that did not correspond to actual business transactions, involving a total amount of RMB 21 million. As a result, the enterprise underpaid corporate income tax and failed to withhold personal income tax, totaling RMB 4.73 million. In accordance with the relevant provisions of the Corporate Income Tax Law of the People’s Republic of China, the Tax Collection and Administration Law of the People’s Republic of China, the Administrative Penalty Law of the People’s Republic of China, and other applicable laws and regulations, the Inspection Bureau of the Quzhou Municipal Tax Service, State Taxation Administration, has legally recovered the unpaid taxes, imposed late payment penalties, and levied fines totaling RMB 7.26 million. At the same time, leads regarding the fraudulent invoice issuance have been referred to the public security authorities.
III. Shenzhen tax and police authorities jointly investigated a criminal syndicate that exploited the value-added tax “immediate collection and immediate refund” policy for software products to issue false invoices. The investigation revealed that the syndicate, by controlling Shenzhen Chuangyilong Technology Co., Ltd., illegally obtained computer software copyright registration certificates and, without any genuine business transactions, improperly benefited from the VAT “immediate collection and immediate refund” preferential tax policy for software products. It then engaged in large-scale issuance of special VAT invoices under the “software” item, involving invoiced amounts totaling RMB 84 million. In accordance with the Measures for the Administration of Invoices of the People’s Republic of China, the Inspection Bureau of the Shenzhen Tax Service of the State Taxation Administration classified the company’s 990 special VAT invoices as falsely issued. At the same time, it recovered RMB 7.42 million in VAT that the company had improperly enjoyed under the “immediate collection and immediate refund” scheme, imposed statutory late-payment penalties, and, together with public security organs, rounded up and cracked down on the masterminds—suspect Li and others—as well as downstream criminal groups. Currently, the People’s Procuratorate of Luohu District, Shenzhen, has filed public prosecution against Li for the crime of issuing false special VAT invoices, and the People’s Court of Luohu District, Shenzhen, has already held a court hearing; a judgment will be rendered at a later date.
Paying taxes in accordance with the law and operating in compliance are the cornerstones of the sound development of all types of business entities. All such entities should proactively learn about, understand, and abide by the law, earnestly strengthen their awareness of compliant operations and risk prevention, and cultivate a strong sense of voluntary, lawful, and honest tax compliance, thereby laying a solid foundation for their long-term growth. The tax authorities consistently regard supporting the compliant and healthy development of businesses as a key responsibility, continuously improving tax and fee services to ensure that preferential policies truly benefit those enterprises that are trustworthy, law-abiding, and eligible. At the same time, they remain committed to advancing tax governance based on the rule of law, adopting a zero‑tolerance approach to rigorously crack down on illegal and non‑compliant practices—such as fraudulently obtaining tax and fee incentives—and resolutely safeguarding a fair and equitable economic and tax order.

Litigation & Arbitration
The Supreme People’s Court has introduced 98 policy measures to provide high-quality judicial services that support and safeguard scientific and technological innovation.
On January 6, the Supreme People’s Court issued the “Opinions of the Supreme People’s Court on Providing High-Quality Judicial Services to Safeguard Scientific and Technological Innovation,” along with relevant typical cases.
The “Opinions” focus on the most salient issues in adjudication involving scientific and technological innovation, proposing 25 policy measures comprising a total of 98 specific initiatives across six key areas: overarching principles; strengthening, in accordance with the law, the protection of scientific and technological innovation outcomes; safeguarding innovators; protecting innovative conduct; fostering a rule-of-law‑based, internationally oriented market environment for science and technology; and building and improving the judicial protection system and mechanisms. With regard to new‑type productive forces, the “Opinions” call for the implementation of judicial policies that ensure the intensity of judicial protection is commensurate with the level of scientific and technological advancement, refine the standards governing the adjudication of administrative litigation concerning patent grant and conofficeation of rights, and set forth judicial protection rules for scientific and technological innovation outcomes in four domains: industrial design, the digital economy, trade secrets, and priority sectors.

The Jiangsu High People’s Court has issued fifteen judicial measures to strengthen the protection of intellectual property rights in traditional Chinese medicine.
Recently, the Jiangsu Higher People’s Court issued the “Fifteen Judicial Measures for Strengthening Intellectual Property Protection of Traditional Chinese Medicine Across All Courts in the Province,” requiring courts throughout the province to fully leverage their adjudicatory functions, intensify judicial protection of TCM-related intellectual property, and promote the creative transformation and innovative development of traditional Chinese medicine.
The fifteen judicial measures include: 1. Strengthening patent protection related to traditional Chinese medicine. 2. Enhancing protection of commercial trademarks associated with traditional Chinese medicine. 3. Bolstering the conservation of Chinese medicinal material resources. 4. Reinforcing copyright protection in the field of traditional Chinese medicine. 5. Intensifying safeguards for trade secrets and state secrets pertaining to traditional Chinese medicine. 6. Strengthening protection of proprietary Chinese medicinal varieties. 7. Safeguarding the rights and interests of holders of traditional knowledge in the realm of traditional Chinese medicine. 8. Upholding fair competition in the traditional Chinese medicine market. 9. Properly resolving disputes over intellectual property‑related technology contracts involving traditional Chinese medicine. 10. Appropriately settling disputes over ownership of achievements in the field of traditional Chinese medicine. 11. Increasing penalties for infringements of intellectual property rights in the traditional Chinese medicine sector. 12. Improving mechanisms for ascertaining technical facts in cases involving traditional Chinese medicine. 13. Enhancing coordinated protection of intellectual property rights in the traditional Chinese medicine domain. 14. Actively fostering a legal environment that supports the protection of intellectual property in this field. 15. Providing services to facilitate and safeguard the international development of traditional Chinese medicine.

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