JC Master Legal News Issue 1140

Release Date:

2024-12-23 13:33

Key Takeaways for This Issue

The Shanghai Stock Exchange has revised the Guidelines on Market-Making for Listed Funds.
On December 18, the Shanghai Stock Exchange issued the “Shanghai Stock Exchange Fund Business Guide No. 2—Market-Making for Listed Funds (Revised in December 2024),” which will take effect on December 21, 2024.
The China Securities Regulatory Commission has issued the “Regulations on the Mutual Recognition of Fund Management in Hong Kong.”
The China Securities Regulatory Commission has further refined the mutual recognition arrangement for funds between the mainland and Hong Kong, revising and issuing the “Regulations on the Administration of Hong Kong‑Recognized Funds,” which will take effect on January 1, 2025.
The draft Value-Added Tax Law is set to undergo its third review, with proposed amendments focusing on three key areas.
On December 19, the Legislative Affairs Commission of the Standing Committee of the National People’s Congress held a press conference. Spokesperson Wang Xiang outlined the key details of the draft laws scheduled for deliberation at this session of the Standing Committee.
The Supreme People’s Court and the National Administration of Financial Regulation have jointly released the first batch of typical cases in mediation of financial lending disputes.
Recently, the Supreme People’s Court and the National Administration of Financial Regulation jointly released 11 typical cases of mediation in financial lending disputes. This release includes the first batch of six cases.
Finance & Capital Markets
The Shanghai Stock Exchange and the Qatar Exchange have signed a memorandum of understanding on cooperation.
Recently, the Shanghai Stock Exchange (hereinafter referred to as SSE) and the Qatar Stock Exchange (hereinafter referred to as QSE) signed a Memorandum of Understanding (hereinafter referred to as MOU) on cooperation, aiming to further strengthen business collaboration and exchanges between the two capital markets.

Qatar was among the first countries to support and join the Belt and Road Initiative, and in 2015 it established the Middle East’s first RMB clearing center in Doha. The Shanghai Stock Exchange stated that, in recent years, China–Qatar relations and areas of cooperation have continued to deepen, yielding fruitful outcomes in bilateral economic and trade collaboration. The Exchange expressed its pleasure at establishing a partnership with QSE, looking forward to strengthening communication and exchanges, jointly exploring opportunities for cooperation in ETFs, data services, index products, and other fields, and collaborating on initiatives related to sustainable development.

QSE stated that, through the signing of an MOU with the Shanghai Stock Exchange, it aims to integrate its operations with those of the Exchange, fostering joint innovation and growth in both capital markets. This MOU marks a further step in QSE’s expansion in China, enabling the company to explore new services and products, identify collaborative opportunities across relevant sectors, and advance the shared interests of listed companies and investors, thereby better meeting the needs of local and global investors.

Going forward, under the unified guidance of the China Securities Regulatory Commission, the Shanghai Stock Exchange will remain committed to using openness to drive reform and continue exploring diversified mechanisms for cooperation and connectivity with exchanges in the Middle East. It will strengthen bilateral partnerships, pursue multilateral collaboration, continually diversify forms of cooperation, deepen its content, and further support the steady and orderly advancement of high‑level, institutional‑based opening-up.

Two departments have refined policies in four key areas to advance the pilot program for multinational corporations’ integrated domestic and foreign currency pooling.
Recently, the People’s Bank of China and the State Administration of Foreign Exchange decided to optimize the pilot policy for the integrated domestic‑foreign currency funds pooling business of multinational corporations in ten provinces and municipalities, including Shanghai, Beijing, Jiangsu, Zhejiang, Guangdong, Hainan, Shaanxi, Ningbo, Qingdao, and Shenzhen.
The key elements of the pilot policy include: first, permitting cross‑border borrowing in different currencies among domestic member entities of multinational corporations for current‑account cross‑border payment transactions; second, streamlining the filing procedures and the review of documentation related to foreign‑currency receipts and payments; third, allowing multinational corporations, in accordance with macroprudential principles, to independently determine the pooling ratios for external debt and overseas loans; and fourth, supporting the lead entity of a multinational corporation in using its domestic master fund account to handle centralized receipt and payment arrangements on behalf of its overseas member entities with respect to their transactions with domestic member entities or other overseas parties.

The China Securities Regulatory Commission has issued the “Regulations on the Mutual Recognition of Fund Management in Hong Kong.”
To deepen pragmatic cooperation between the mainland and Hong Kong capital markets, better meet the cross-border wealth management needs of investors on both sides, promote high‑level, institution‑based opening-up of the capital markets, and consolidate and enhance Hong Kong’s status as an international financial center, the China Securities Regulatory Commission has further refined the mutual recognition arrangement for funds between the mainland and Hong Kong and revised and issued the “Regulations on the Administration of Hong Kong‑Recognized Funds” (hereinafter referred to as the “Administrative Regulations”), which will take effect on January 1, 2025. At the same time, the “Provisional Regulations on the Administration of Hong Kong‑Recognized Funds” (CSRC Announcement [2015] No. 12) are hereby repealed.
The key revisions to the Administrative Provisions include: first, raising the cap on the proportion of cross‑border sales for Hong Kong‑recognized funds from 50% to 80%; second, moderately relaxing restrictions on the sub‑delegation of investment management functions for Hong Kong‑recognized funds, thereby permitting such functions to be delegated to overseas affiliates within the same group; and third, creating room to accommodate the future inclusion of additional standard‑type products under the Hong Kong‑recognized fund framework.
Going forward, the China Securities Regulatory Commission will continue to balance openness with security, give equal weight to both “bringing in” and “going out,” steadily expand institutional openness in the capital market, and ensure the effective implementation of the Administrative Provisions, thereby truly putting into practice measures that benefit Hong Kong.

“The ETF Ecosystem Conference—Index Evolution” was held in Shenzhen.
On December 19, the Shenzhen Stock Exchange held the second ETF Ecosystem Conference, themed “Iterating Indexes,” to engage with market participants in a dialogue on index development and innovation, new opportunities in indexed investing, and the critical role of derivatives in advancing index‑based investment. The event aimed to foster a robust ecosystem that enables all stakeholders to collaboratively build and share in the high‑quality growth of the ETF market. Representatives from fund management offices, securities companies, banks, index providers, and media outlets attended.
A responsible official from the Shenzhen Stock Exchange stated that the issuance of the new “Nine Measures” and a series of related policies has created ample room for the ETF market to achieve further robust growth, significantly boosting market acceptance and investor confidence. From the perspectives of policy frameworks, market dynamics, and international best practices, the ETF market is now entering a critical period of opportunity for building a high‑quality development ecosystem. A healthy ETF market is the result of the combined efforts of high‑quality indices, systematic product management, professional investment advisory services, and positive public outreach. Moving forward, the Shenzhen Stock Exchange will continue to align with the China Securities Regulatory Commission’s overarching strategic plan, placing the enhancement of the ETF ecosystem at the forefront. It will work closely with all market participants to strengthen collaboration, pool resources, and jointly promote the principles of index‑based investing, refine index‑construction methodologies, advance diversified product innovation, and foster a culture of rational investing—thereby creating a favorable environment for the high‑quality development of the ETF market and better attracting medium- and long-term capital into the market.
During the keynote session, fund managers, banks, securities offices, and index‑provider organizations—drawing on their respective expertise—shared practical insights and future outlooks on ETF market ecosystem development, exploring new opportunities in the era of broad‑based indices, cross‑border ETF investing, and how banks can better integrate into the age of index‑driven investing. Representatives from Shenzhen Information Co., Ltd. and CSI Indexes Co., Ltd. offered perspectives from an index‑construction standpoint, highlighting innovative practices in the A‑series index suite, the evolution of domestic broad‑based indices, and the enduring vitality of the ChiNext Index and the SZSE 100 Index in the new era. In the roundtable discussion, securities analysts, fund managers, and financial content creators on video platforms engaged in a dialogue on “how various market participants can collaborate to foster the growth of the index ecosystem,” sharing incisive observations on the current state of index‑ecosystem development.
To further enhance investors’ sense of gain, the Shenzhen Stock Exchange has responded to market demand by launching the “Big Talk Strategies” investor education brand initiative. Focusing on Shenzhen’s core broad-based indices, the program presents ETF trading‑portfolio strategy case studies in an engaging and accessible format, addressing the critical question of “how to invest” and helping the industry shift from promoting individual products to advocating diversified investment‑strategy portfolios. At this event, the exchange unveiled a handbook of systematic‑investment and grid‑trading strategy case studies for ChiNext ETFs, along with related investor‑education videos.
At the conference, the Shenzhen Stock Exchange also held the launch ceremony for the “ETF and Options Live Trading Competition,” aiming to establish a competitive platform for ETFs and options to promote learning and practice through competition, thereby helping investors deepen their understanding of ETF and options products, enhance their proficiency in using these instruments, and better meet their wealth-management needs.

The Shenzhen Stock Exchange has issued six guidelines on the review of asset-backed securities, aiming to promote the high-quality development of the asset-securitization market.
On December 20, the Shenzhen Stock Exchange issued six guidelines for the review of asset-backed securities, including “Shenzhen Stock Exchange Guidelines on the Review of Listing Conditions for Asset-Backed Securities No. 1—Application Documents and Preparation Requirements” (hereinafter referred to as the “Guidelines on Application Documents and Preparation Requirements”). These measures aim to foster a regulatory framework that is more concise and clear, easy to understand and use, and comprehensive and well‑structured. This initiative underscores the Shenzhen Stock Exchange’s commitment to implementing the decisions of the Third Plenary Session of the 20th CPC Central Committee, which emphasized “preventing risks, strengthening regulation, and promoting the healthy and stable development of the capital market,” while also standardizing the development of asset securitization and enhancing the bond market’s ability to serve the real economy.
In recent years, under the guidance of the China Securities Regulatory Commission, the Shenzhen Stock Exchange has steadily advanced the development of asset-securitization business, helping to unlock the value of existing assets, broaden corporate financing channels, and effectively increase the share of direct financing. As of the end of November 2024, the Shenzhen Stock Exchange had cumulatively issued asset-backed securities totaling RMB 2.68 trillion, with underlying assets spanning a wide range of categories, including accounts receivable, small‑loan claims, finance‑lease receivables, infrastructure tolls, and real‑estate mortgage loans. The Exchange has also launched a series of innovative products, such as the nation’s first real‑estate‑holding‑type asset-backed security, the first housing‑rental asset-backed security, the first supply‑chain‑accounts‑payable asset-backed security, and the first intellectual‑property‑asset‑backed security.
To further strengthen the institutional framework, the Shenzhen Stock Exchange has adopted a problem‑oriented approach, drawing on practical experience and the latest regulatory requirements to comprehensively review, streamline, and consolidate existing rules. It has merged and integrated overlapping and fragmented provisions, and issued two new business guidelines—on application documents and their preparation requirements, and on key matters of focus during review—while revising four other business guidelines covering review procedures, categorized review, specific product categories, and the requirements for insurance asset management companies engaging in asset securitization activities.
Strengthen the accountability of intermediary institutions and enhance the quality of information disclosure.
The “Guidance on Application Documents and Their Preparation Requirements” places information disclosure at its core, strengthens the verification and disclosure obligations of intermediary institutions, enhances the standardization, relevance, and readability of disclosures, and thereby helps safeguard investors’ rights and interests. First, it clarifies the checklist of application documents and refines the provisions governing the validity period of financial statements; second, it elaborates the preparation requirements for offering prospectuses and comprehensively standardizes the general formatting guidelines for legal opinions, credit rating reports, cash flow forecast reports, and asset valuation reports; third, it focuses on asset characteristics and specifies the particular content that must be included in the preparation of three major categories of underlying assets: debt‑based, future operating‑income‑based, and real estate‑mortgage‑backed.
Clarify review priorities and strengthen regulatory oversight of issuance eligibility.
The “Shenzhen Stock Exchange Guidelines on the Review of Listing Conditions for Asset-Backed Securities, No. 2—Key Matters of Particular Concern in the Review” adheres to the principles of “true sale” and “bankruptcy remoteness,” emphasizes asset‑level credit quality, and establishes an access‑standard framework for asset‑backed securities that is based on general requirements and supplemented by detailed criteria tailored to three major categories and six sub‑categories of asset types. First, it clarifies general admission provisions, refining common requirements related to underlying assets, cash flows, transaction structures, and key participants, while strengthening the due‑diligence obligations of managers and legal counsel. Second, it refines the existing admission requirements for four categories of underlying assets—accounts receivable claims, financial lease claims, public‑private partnership (PPP) projects, and infrastructure—and, drawing on practical experience, introduces new, specific admission standards for three additional asset types—small‑loan claims, corporate financing claims, and real‑estate mortgage loan claims—thereby reinforcing asset‑level credit quality.
Advance the alignment of business rules and integrate and optimize the regulatory framework.
In March of this year, the Shenzhen Stock Exchange issued the “Rules on Asset-Backed Securities Business of the Shenzhen Stock Exchange” (hereinafter referred to as the “Business Rules”). To ensure smooth alignment with these rules, the Exchange has revised its previous series of guidelines on the “Listing Condition Conofficeation Process” for asset-backed securities into a new series titled the “Listing Condition Review Process,” and updated four existing guidelines to address inconsistencies with the Business Rules. Additionally, it has refined requirements related to review procedures, including filing deadlines, circumstances under which reviews may be suspended or terminated, and other relevant provisions. As a result, the following newly issued guidelines have been released: “Shenzhen Stock Exchange Guidelines on the Listing Condition Review Process for Asset-Backed Securities No. 3—Review Procedures,” “Shenzhen Stock Exchange Guidelines on the Listing Condition Review Process for Asset-Backed Securities No. 4—Classified Review,” “Shenzhen Stock Exchange Guidelines on the Listing Condition Review Process for Asset-Backed Securities No. 5—Specific Product Categories,” and “Shenzhen Stock Exchange Guidelines on the Listing Condition Review Process for Asset-Backed Securities No. 6—Requirements Related to Asset Securitization Activities Conducted by Insurance Asset Management Companies (Trial).”
Going forward, under the unified guidance of the China Securities Regulatory Commission, the Shenzhen Stock Exchange will continue to thoroughly implement the spirit of the Third Plenary Session of the 20th CPC Central Committee, as well as the directives from the Central Economic Work Conference and the Central Financial Work Conference. It will also carry out the series of measures outlined in the new “Nine Measures for National Bond Market Development” aimed at promoting high-quality growth in the bond market, emphasizing solid foundations and rigorous oversight, continuously improving the institutional framework for asset-backed securities, guiding market participants to fulfill their respective roles and responsibilities, fostering a sound market ecosystem, and driving the high-quality development of the asset-securitization market.

The National Administration of Financial Regulation has issued Application Guidelines No. 4–6 on Internal Controls for the Use of Insurance Funds.
On December 20, the website of the National Administration of Financial Regulation published the “Notice on Issuing the ‘Internal Control Application Guidelines for the Use of Insurance Funds (Nos. 4–6).’”
Guideline No. 4 comprises eight sections and thirty-eight articles, Guideline No. 5 consists of eight sections and forty-two articles, and Guideline No. 6 includes five sections and thirty-one articles. With respect to non-standardized assets such as equity interests in unlisted companies, real estate, and financial products, these guidelines set forth detailed operational requirements across key business stages—including project screening, project approval, due diligence, commercial negotiations, investment decision‑making, contract execution, transaction implementation, and post‑investment management—while also strengthening the Investment Decision Committee’s accountability and refining the key elements of post‑investment oversight.

Commercial & Corporate
The State Administration for Market Regulation has issued the “Guidance on the Review of Horizontal Merger Transactions.”
On December 20, the website of the State Administration for Market Regulation published the “Notice on Issuing the Guidelines for the Review of Horizontal Merger Transactions.”
The Guidelines comprise twelve chapters and eighty-seven articles, covering general provisions, evidentiary materials, relevant markets, market share and market concentration, unilateral effects, coordination effects, potential competition, market entry, buyer power, efficiency, other factors, and supplementary provisions. They include 29 case examples and primarily establish a framework for the review of horizontal mergers and acquisitions, clarify the rules governing the fundamental elements of competitive analysis, and set forth the approach to assessing competitive harm arising from horizontal concentrations.

The Ministry of Ecology and Environment plans to issue the Regulations on Ecological and Environmental Monitoring.
On December 19, the website of the Ministry of Ecology and Environment published the “Letter on Public Solicitation of Comments on the Draft Regulations on Ecological and Environmental Monitoring,” with a deadline for submitting feedback set for January 19, 2025.
The Regulations comprise seven chapters—General Provisions, Ecological and Environmental Quality Monitoring, Pollution Source Monitoring, Assurance of Monitoring Data Quality, Supervision and Administration, Legal Liability, and Supplementary Provisions—totaling 45 articles. They establish key systems for the management of ecological and environmental monitoring sites, the oversight of pollution source monitoring, the assurance of monitoring data quality, and the supervision and administration of monitoring agencies.

The State Administration of Traditional Chinese Medicine has issued the 2024 edition of the “Norms for Information and Digitalization Construction in TCM Hospitals.”
Recently, the Chinese Government Website published the “Notice of the State Administration of Traditional Chinese Medicine on Issuing the ‘Norms for Information and Digitalization Construction in TCM Hospitals (2024 Edition)’.”
The “Regulations” comprise ten chapters and eighty-two articles, outlining provisions on institutional personnel, planning and management, infrastructure, information platforms and business applications, standards and evaluation, security protection, data management and utilization, as well as operations and maintenance. They stipulate that TCM hospitals shall adopt a service‑oriented approach, establish an informationization management system, define the scope of work, and conduct regular reviews of implementation and outcomes. The management system covers project initiation, implementation, acceptance, on‑call duty, user services, data services, server room management, data backup, network security, emergency response, asset management, documentation, information equipment, information systems, and outsourced services, among other areas.

The General Administration of Customs has issued the 2024 Commodity Classification Decisions (III).
On December 18, the General Administration of Customs issued the “Announcement on the Publication of the 2024 Commodity Classification Decisions (III),” releasing the “2024 Commodity Classification Decisions (III)” as well as the “Commodity Classification Decisions Transformed from the World Customs Organization’s Opinions on Commodity Classification.”
Decision (III) clarifies the tariff classification for furnace‑tube equipment used in plasma chemical vapor deposition and for mixed raw materials of polyene phosphatidylcholine. In addition, the Decision specifies that solid products forged freely from stainless steel are to be classified under subheading 7222.30.

The General Administration of Customs has launched a pilot program for online verification under the “one declaration, multiple verifications” clearance model for imported pharmaceuticals.
On December 17, the General Administration of Customs published on its website the “Announcement on Launching a Pilot Program for Online Verification of ‘One Form, Multiple Verifications’ in the Clearance Process for Imported Pharmaceuticals.”
The Announcement clarifies that the General Administration of Customs has decided to launch a pilot program at the Gongbei Customs for online verification under the “one declaration, multiple verifications” clearance regime for imported pharmaceuticals. For customs declarations filed with Gongbei Customs, up to 20 copies of the Import Drug Clearance Forms may be entered in a single submission. When entering the accompanying documents for an import declaration into the Clearance Form system, on the “Correspondence” entry screen, the “Customs Declaration Item Serial Number” should be filled in with the corresponding item number from the customs declaration, and the “Corresponding Accompanying Document Item Serial Number” should be filled in with the corresponding item serial number on the Clearance Form.

The Cyberspace Administration has released typical cases of seven categories of online activities that infringe upon the legitimate rights and interests of minors.
On December 19, China Internet Information Office released a batch of typical cases in which cyberspace administration authorities have rigorously cracked down on online violations of the legitimate rights and interests of minors.
This batch of typical cases covers seven types of online violations that infringe upon the legitimate rights and interests of minors: 1. Maliciously producing and publishing “silly animated” short videos; 2. Concealing and disseminating soft‑pornographic content involving minors; 3. Illegally profiting by exploiting “child internet celebrities”; 4. Coercing minors into participating in “live‑stream card‑opening” activities; 5. Using new technologies and applications to generate harmful content targeting minors; 6. Displaying illegal or harmful information within youth‑mode settings; and 7. Smart devices for children containing unlawful or non‑compliant content. In particular, regarding the practice of inducing minors to engage in “live‑stream card‑opening,” the cyberspace administration has guided live‑streaming and e‑commerce platforms to enhance consumer‑risk warning features for minors, strengthened age‑verification measures for blind‑box products, and required platforms to proactively provide compliance guidance to merchants. As a result, more than 1,700 violating live streams have been addressed, and over 28,000 products have been removed from shelves.

The Ministry of Transport has issued the “Criteria for Identifying Major Accident Hazards in Inland Waterway Vessels.”
On December 19, the website of the Ministry of Transport issued the “Notice on the Issuance of the ‘Criteria for Determining Major Accident Hazards in Inland Waterway Vessels.’”
The Standard comprises eight provisions and defines its scope of application and intended use as follows: it applies to the identification of major accident hazards on passenger‑carrying and hazardous‑cargo‑carrying inland vessels, as well as on other inland vessels of 300 gross tons or more. It specifies a total of 21 circumstances under which major accident hazards shall be identified during navigation, berthing, and operations, including nine general circumstances applicable to all types of inland vessels of 300 gross tons or more; fifteen circumstances applicable to passenger vessels (including the nine general circumstances); and fifteen circumstances applicable to vessels carrying dangerous goods (including the nine general circumstances).

The Shanghai Municipal Science and Technology Commission has issued the “Administrative Measures for Science and Technology Credit Information of Shanghai.”
On December 20, the Shanghai Municipal Government website published the “Notice of the Municipal Science and Technology Commission on Issuing the Measures for the Administration of Scientific and Technological Credit Information of Shanghai.”
The Measures consist of six chapters and twenty-four articles, clearly defining provisions on information collection, information use, information management, and credit restoration. With respect to credit restoration, it is stipulated that such restoration shall follow the principle of “whoever determines the misconduct shall also carry out the restoration.” The entity that originally determined the untrustworthy behavior is responsible for handling applications for credit‑information restoration, including acceptance, review, feedback, and ensuring the data subject’s right to be informed. Upon receipt of the application materials, the determining entity shall, within two working days, examine the completeness and compliance of the documents and decide whether to accept the application. If the materials are incomplete or do not meet the requirements, the applicant shall be notified in a single instance of the necessary corrections; once the corrected materials comply with the requirements, the application shall be accepted.

Shanghai has issued the “Action Plan for Marine Ecological Protection and Restoration.”
On December 19, the Shanghai Municipal Government website published the “Notice on Issuing the ‘Shanghai Marine Ecological Protection and Restoration Action Plan.’”
The Action Plan aims to, by 2030, establish a preliminary framework for marine ecological protection and governance that integrates land and sea management and coordinates river–sea linkages. It seeks to maintain the natural shoreline retention rate on the mainland at no less than the national control target, rehabilitate and restore at least 100 kilometers of coastline, and restore and rehabilitate no less than 500 hectares of coastal wetlands. The plan also calls for the establishment of an ecological supervision system for marine-related ecological red lines and nature reserves, strengthening oversight and regulation of human activities within these red lines, intensifying ecological monitoring and tracking in the red‑line areas and their surrounding marine zones, and conducting regular assessments of the effectiveness of ecological protection measures in ecological red lines, nature reserves, and coastal wetlands.

Beijing has revised the “Several Policy Measures to Support the Development of the Hydrogen Energy Industry.”
On December 17, the Beijing Municipal Government website published the “Notice on Issuing the ‘Several Policy Measures of Beijing to Support the Development of the Hydrogen Energy Industry (Revised Edition)’.”
The “Several Policy Measures” comprise eight key areas, clearly supporting the development of small and medium-sized enterprises (SMEs). Enterprises recognized as “specialized, refined, distinctive, and innovative” will receive tiered funding at the district level. Furthermore, industrial support platforms in the hydrogen energy sector—covering R&D and design, pilot-scale integration, and testing and validation—are encouraged to provide services to SMEs; eligible platforms may be designated as “Beijing Municipal Public Service Demonstration Platforms for SMEs,” receiving corresponding construction subsidies or performance-based rewards. For major new‑build or renovation projects in the hydrogen energy field that secure fixed‑asset loans, interest subsidies will be provided at a rate not exceeding the People’s Bank of China’s prevailing medium- and long-term Loan Prime Rate (LPR), with a cap of RMB 30 million per enterprise per year. Additionally, hydrogen energy enterprises leasing critical equipment and production lines for R&D, construction, or manufacturing in Beijing will receive rental‑cost subsidies: for finance‑lease contracts with a value of no less than RMB 10 million, a subsidy of up to 5% of the lease fee will be granted, capped at RMB 10 million per enterprise annually.

The Beijing Intellectual Property Bureau has revised the “Measures for the Recognition and Administration of Intellectual Property Agglomeration Development Zones for Small and Medium-sized Enterprises in Beijing.”
On December 12, the Beijing Municipal Intellectual Property Bureau published on its website the “Notice on Revising the Measures for the Recognition and Administration of Intellectual Property Agglomeration Development Zones for Small and Medium-sized Enterprises in Beijing.”
Following the revision, the Measures comprise seven chapters and sixteen articles, clearly stipulating that designated agglomeration development zones shall receive operational guidance and policy support, including: 1. Recommending enterprises within these zones to apply for designation as intellectual property‑strong entities and to participate in the cultivation of national intellectual property‑strong demonstration enterprises, among other initiatives.
2. Establish a national patent examiner practice base and other related systems to provide favorable conditions for enterprises in the agglomeration development zone to file intellectual property applications, secure rights, and protect their IP rights.
3. Facilitate the alignment of enterprises with intellectual property service resources, conduct IP portfolio planning and navigation analysis, and effectively identify and cultivate high‑value patents.
4. Guide enterprises in establishing intellectual property alliances with upstream and downstream industry players, promote collaborative innovation across the value chain, and jointly address intellectual property risks.
5. Encourage enterprises to engage in industry–university–research collaboration with universities and research institutes, carrying out joint R&D, as well as the transfer and commercialization of intellectual property and technological achievements.
6. In accordance with the approved annual budget, the Beijing Intellectual Property Bureau shall provide appropriate financial support to designated agglomeration development zones to facilitate the implementation of the intellectual property services referred to in Article 9; no duplicate funding shall be granted for activities that have already received such support.

Beijing plans to introduce the “Administrative Measures for Ecological and Environmental Science and Technology Projects of Beijing Municipality.”
On December 17, the Beijing Municipal Government website published the “Notice on Public Solicitation of Comments on the Draft Measures for the Administration of Ecological and Environmental Science and Technology Projects in Beijing,” with a deadline for submitting feedback set for December 23.
The Measures consist of seven chapters and thirty-four articles, covering general provisions, responsible entities and their duties, project initiation management, project implementation and organization management, comprehensive performance evaluation and outcome management, supervisory and administrative oversight, and supplementary provisions. Notably, the section on comprehensive performance evaluation and outcome management specifies the time limit for conducting such evaluations upon project completion, the required supporting documentation, the organizational arrangements for carrying out the evaluations, and the categories of evaluation conclusions. It also standardizes the content to be submitted with project research outcomes, clarifies issues related to intellectual property rights, and sets forth the procedures for handling any remaining funds in cases where the overall project performance is deemed unsatisfactory or when the project is officially concluded.

China Digital Logistics Information Co., Ltd. has been established.
On December 19, the inaugural meeting of China Shulian Logistics Information Co., Ltd. was held in Shanghai. Chen Jining, Secretary of the Shanghai Municipal Party Committee, and Zhang Yuzhuo, Secretary of the Party Committee and Director of the State-owned Assets Supervision and Administration Commission of the State Council, attended the event and jointly unveiled the company’s plaque.
China Digital Logistics is a centrally administered state-owned enterprise with diversified equity, directly overseen by the State-owned Assets Supervision and Administration Commission of the State Council. It has brought in China Merchants Group Co., Ltd., China Poly Group Corporation, China Logistics Group Co., Ltd., China Civil Aviation Information Group Co., Ltd., Shanghai Guosheng (Group) Co., Ltd., and Shanghai Data Group Co., Ltd. as strategic investors. With data‑driven technology services for the logistics and supply chain sector as its core business, the company focuses on the sharing, development, and utilization of data resources across road, rail, waterway, air, and port sectors, integrating logistics flows with information and capital flows to build a national‑level logistics big‑data platform.

Shanghai launches a pilot program for “childbirth-friendly workplaces” to foster a fertility‑friendly employment environment.
Recently, the Shanghai Municipal Human Resources and Social Security Bureau, the All-China Federation of Trade Unions, and the All-China Women’s Federation jointly launched a pilot program for “childbirth-friendly workplaces,” aimed at stabilizing and expanding employment while fostering a work environment that is supportive of family‑building.
The pilot program encourages employers to create positions that offer flexible working arrangements, adaptable work styles, and family‑friendly workplace environments, primarily targeting caregivers of children under the age of 12. These roles will implement flexible work schedules, including staggered start and end times and remote work options, to help employees better balance their professional and family responsibilities. Relevant authorities will guide key industries and emerging economic sectors to trial this model, establish a roster of “birth‑friendly workplaces,” and ensure compliance with protections for maternity and paternity leave. At the same time, public employment services and training subsidies will be provided, with priority given to “birth‑friendly workplaces” in selection processes and policy support initiatives.

The Ministry of Industry and Information Technology plans to issue the “Administrative Measures for the Recycling and Comprehensive Utilization of Lithium-Ion Batteries in Electric Bicycles.”
On December 18, the website of the Ministry of Industry and Information Technology published the “Public Notice Soliciting Comments on the Measures for the Recycling and Comprehensive Utilization of Lithium-Ion Batteries for Electric Bicycles (Draft for Public Comment),” with a deadline for submitting feedback set for January 16, 2025.
The Measures consist of five chapters and twenty-eight articles, stipulating that recycling service outlets shall not be located in places designated as “densely populated areas” under the standard GB/T 40248 on Fire Safety Management for Densely Populated Places, nor within residential buildings, office buildings, commercial buildings, or similar structures (including ground-floor commercial spaces and basements), and must be physically separated from other uses such as offices and living quarters. Such outlets shall comply with the provisions of the Code for Fire Protection Design of Buildings (GB 50016) and meet the requirements applicable to Class C or higher‑risk industrial plants or warehouses. Recycling facilities must include appropriate storage facilities or dedicated storage areas; they shall be equipped with wheeled fire extinguishers, fire blankets, personal protective equipment, video surveillance systems, and other safety and rescue devices, as well as insulated auxiliary tools, and possess the necessary capabilities for chemical or physical discharge. They must also be fitted with corresponding specialized facilities and equipment, such as salt‑water pools (tanks) or discharge cabinets. Furthermore, a system for safety and fire‑prevention training shall be established, with regular training and assessments conducted for all personnel. The dismantling, reassembly, or further processing of recovered waste lithium batteries is prohibited.

The Ministry of Industry and Information Technology has optimized and adjusted the configuration of direct‑connect communication channels for the Internet of Vehicles, supporting the high‑quality development of the IoTV industry.
Recently, the website of the Ministry of Industry and Information Technology published the “Notice of the National Radio Administration on Further Clarifying the Technical Requirements for Radio Transmission Equipment Used in Vehicle-to-Everything (V2X) Direct Communication.”
The Notice revises the original 20 MHz single‑channel bandwidth configuration for vehicle‑to‑everything (V2X) direct‑communication to two alternative channel bandwidth options—10 MHz or 20 MHz. V2X in‑vehicle (or portable) devices may operate in either the 5905–5915 MHz or 5905–5925 MHz bands, while roadside equipment may use the 5915–5925 MHz or 5905–5925 MHz bands, thereby further enhancing the flexibility of channel allocation and improving spectrum utilization efficiency and interference resistance.

The Ministry of Transport plans to revise two documents, including the “Administrative Measures for Train Operation Organization in Urban Rail Transit.”
On December 18, the website of the Ministry of Transport published the “Notice on Soliciting Public Comments on Two Documents, Including the ‘Administrative Measures for Train Operation Organization in Urban Rail Transit (Revised Draft for Comments)’,” with a deadline for submitting feedback set for January 17, 2025.
The documents proposed for revision include the “Administrative Measures for Train Operation Management of Urban Rail Transit” and the “Administrative Measures for Passenger Transport Organization and Service of Urban Rail Transit.” Following the revision, the “Administrative Measures for Train Operation Management of Urban Rail Transit” will comprise six chapters and forty-five articles, clearly stipulating that train operators must strengthen lookout duties and monitor train operations; they are prohibited from arbitrarily lowering the driving mode level or disabling ATP protection, as well as from exceeding speed limits or violating dispatch instructions—any actions that could jeopardize safe operation. When a signal indicates a speed reduction, operators must immediately implement measures to control speed. In cases where signals are unclear or pose a threat to operational safety or personal safety, operators must promptly reduce speed or bring the train to a stop. Personnel boarding the cab must not interfere with the operator’s work.

The Ministry of Ecology and Environment plans to issue the national standard “Noise Emission Limits and Measurement Methods for Motorcycles and Mopeds.”
On December 19, the website of the Ministry of Ecology and Environment published the “Notice on Public Solicitation of Comments on the National Standard ‘Noise Emission Limits and Measurement Methods for Motorcycles and Mopeds (China Stage III) (Draft for Comments),’” with a deadline for submitting feedback set for January 18, 2025.
The document comprises 10 chapters: Scope of Application, Normative References, Terms and Definitions, Noise Control Requirements, Type Approval, Extension of Type Approval, Production Conformity, Out-of-Production Inspection, In-Use Vehicle Noise Testing, and Implementation of the Standard. It specifies limit values and measurement methods for road‑running and stationary noise of motorcycles and mopeds, and sets forth requirements for controlling such noise, including type approval, extension of type approval, production conformity, out‑of‑production inspection, in‑use vehicle testing, and the implementation of the standard. This document applies to motorcycles and mopeds equipped with spark‑ignition or compression‑ignition engines, as well as hybrid motorcycles and hybrid mopeds, and electric motorcycles and electric mopeds.

The General Administration of Customs plans to issue the “Announcement on Matters Related to Gate Management in Special Customs Supervision Zones.”
On December 19, the General Administration of Customs website published the “Notice on Soliciting Public Comments on the ‘Announcement of the General Administration of Customs Regarding Matters Related to Gate Management in Special Customs Supervision Zones (Draft for Comments)’,” with the deadline for submitting feedback set for January 1, 2025.
The Notice comprises five key components: First, it standardizes the responsibilities for checkpoint management, stipulating that, to strengthen the recording and traceability of checkpoint traffic, relevant data must be retained for no less than three years. Second, it sets forth requirements for passage through checkpoint lanes, specifying that goods must enter or exit special zones via freight‑lane checkpoints. In addition to cargo‑carrying vehicles being required to use freight‑lane checkpoints, empty freight vehicles must also pass through these checkpoints, with customs conducting checkpoint inspections as necessary. Third, it clarifies the procedures for checkpoint inspection operations, stating that goods found to be non‑compliant during customs checkpoint inspections may not be disposed of or used by enterprises within the zone without prior approval from customs. Fourth, it regulates the management of in‑transit transportation. Fifth, it establishes standards for the management of items entering or leaving the zone.

The Beijing Municipal Administration for Market Regulation has issued the Implementation Plan for Food Business Licensing Consultation Services.
The Beijing Municipal Administration for Market Regulation has published the official version of the “Implementation Plan for Food Business Licensing Advisory Services” on its website.
The Implementation Plan stipulates that, for consultation service applications that have been accepted, review personnel shall provide guidance based on the type of service requested by the applicant and issue corresponding advisory opinions. For service types that require only a review of the renovation layout plan without on-site guidance, the processing deadline shall not exceed two working days from the date of acceptance. For service types requiring on-site guidance, the designated advisor shall, within one working day after the decision to accept the application, arrange an on-site appointment with the applicant; the advisor shall then visit the applicant’s business address at the agreed time to provide professional guidance, which must be completed within seven working days from the date of acceptance. If, due to reasons attributable to the applicant, on-site guidance cannot be provided within seven working days, the guidance may be suspended upon mutual agreement with the applicant and resumed once the applicant’s premises meet the conditions for on-site instruction. The Implementation Plan also includes, as appendices, flowcharts for online processing of food business license consultation services and small catering establishment license consultation services.

The Ministry of Finance has issued a document to promote the improvement of quality and efficiency in the management of state-owned assets in administrative and public institutions.
On December 18, the Ministry of Finance published on its website the “Notice on Strengthening the Implementation of Systems and Further Promoting Quality Improvement and Efficiency Enhancement in the Management of State-Owned Assets in Administrative and Public Institutions.”
The Notice comprises seven key areas, stipulating that all competent authorities and units must rigorously maintain accurate asset registration and accounting. All capital expenditures shall be capitalized and tracked throughout their lifecycle, with asset information cards completed in full and with precision. Accounting records must be maintained promptly and accurately in accordance with the national unified accounting standards, thereby preventing issues such as failure to account for assets that have been acquired or disposed of, failure to transfer construction-in-progress projects that have been delivered and put into use to the appropriate asset accounts as required, and failure to recognize intangible assets in the books as prescribed. Furthermore, a regular asset inventory system must be implemented, with inventories conducted at least once annually, to ensure consistency among book records, physical assets, and asset cards, as well as between different sets of accounting records.

Taxation
The draft Value-Added Tax Law is set to undergo its third review, with proposed amendments focusing on three key areas.
On December 19, the Legislative Affairs Commission of the Standing Committee of the National People’s Congress held a press conference. Spokesperson Wang Xiang outlined the key details of the draft laws scheduled for deliberation at this session of the Standing Committee.
The 13th Meeting of the Standing Committee of the 14th National People’s Congress will be held in Beijing from December 21 to 25, 2024. The Chairpersons’ Conference has proposed deliberating the draft Value-Added Tax Law and other matters.
In December 2022 and August 2023, the Standing Committee of the National People’s Congress conducted two rounds of deliberation on the draft Value-Added Tax Law. The draft submitted for consideration at this session proposes the following key amendments: First, to standardize legislative authorization by either providing for relevant matters directly in the law or, following a review and streamlining process, including them within the scope of tax incentives. Second, to refine the provisions on tax incentives. Third, to ensure seamless coordination with related laws, such as the Customs Law.
Wang Xiang stated that completing the legislation on the Value-Added Tax Law represents an important step in implementing the principle of tax legality. The Standing Committee of the National People’s Congress has already enacted 10 tax laws; with the addition of the Value-Added Tax, 14 out of the current 18 tax categories will have been legislated, covering the vast majority of tax revenues and marking significant progress in upholding the principle of tax legality.

Many localities plan to adjust the provisional tax rate for land value-added tax.
On December 16, the Liaoning Provincial Tax Service issued the “Notice of the State Taxation Administration Liaoning Provincial Tax Service on Adjusting the Provisional Rate for Land Value-Added Tax (Draft for Public Comment),” with the deadline for submitting feedback set for December 23, 2024.
The draft for public comment states that, in accordance with the State Taxation Administration’s Announcement on Lowering the Minimum Threshold for the Pre-collection Rate of Land Value-Added Tax, the pre-collection rate of land value-added tax will be adjusted across the province (excluding Dalian; the same applies hereinafter). The pre-collection rate for affordable housing throughout the province will be set at zero, while the pre-collection rate for all other types of real estate will be uniformly set at 1%, effective January 1, 2025.
In addition, tax authorities in Xiamen City, the Inner Mongolia Autonomous Region, Jiangxi Province, Henan Province, Shanxi Province, and other localities have issued draft regulations seeking public input to adjust the provisional rates for the land value-added tax.

Shanghai Municipality has clarified matters related to the pilot program for water resources tax reform.
In accordance with the authorization provisions of the “Pilot Measures for Water Resources Tax Reform” and the actual conditions in Shanghai, the Shanghai Municipal Finance Bureau and two other departments have jointly issued the “Notice on Matters Relating to the Pilot Reform of the Water Resources Tax in this Municipality,” which shall take effect as of December 1, 2024.
According to the Notice, Shanghai’s water resources tax is levied separately on surface water and groundwater; specific tax rates are set out in the “Shanghai Water Resources Tax Rate Table” attached hereto. The reasonable leakage rate for Shanghai’s public water supply network is 9%. For unauthorized water withdrawals in Shanghai, as well as for any water withdrawn in excess of the permitted amount by entities other than public water supply enterprises, the tax shall be imposed at twice the applicable tax rate. Agricultural water withdrawals exceeding the prescribed limits are exempt from the water resources tax. Taxpayers of the water resources tax in Shanghai are required to file quarterly returns and make payments to the competent tax authority within the municipality. Following the implementation of the pilot program, Shanghai will discontinue the collection of the water resources fee.

LITIGATION & ARBITRATION
The Supreme People’s Court and the National Administration of Financial Regulation have jointly released the first batch of typical cases in mediation of financial lending disputes.
Recently, the Supreme People’s Court and the National Administration of Financial Regulation jointly released 11 typical cases of mediation in financial lending disputes. This release includes the first batch of six cases.
In Case One, the Beijing Financial Regulatory Bureau, in collaboration with the Beijing Higher People’s Court, guided the Beijing Banking and Insurance Industry Association in establishing a diversified dispute-resolution platform for the banking and insurance sectors. The initiative also explored the development of a mechanism to address cases of missing or unreachable parties and set up a dedicated hotline to connect users to the platform. Through this platform, financial institutions have recorded over 240,000 blockchain‑based evidence submissions and mediated more than 60,000 disputes, achieving a success rate of 68.9% and an average mediation duration of approximately 32 hours. In addition, the Beijing Financial Regulatory Bureau has promoted the establishment of industry‑wide mediation organizations; to date, pilot institutions have resolved 25,950 disputes through these organizations, reaching 19,794 settlement agreements with a success rate exceeding 76%, involving a total amount of over RMB 1.109 billion.

The UNCITRAL has published 14 new judicial cases in which Chinese courts have applied international treaties.
Recently, the UNCITRAL website has published, in batches, 14 judicial cases in which Chinese courts applied international treaties, thereby adding them to the Case Law on UNCITRAL Texts (CLOUT) database. With these additions, the total number of Chinese court cases incorporated into CLOUT now stands at 50.
UNCITRAL is the United Nations’ central legal body for upholding a fair and orderly international trade and commercial transactions regime. The international treaties it deliberates and adopts cover such areas as dispute resolution, international trade, shipping, insolvency, and e‑commerce. To date, UNCITRAL’s System of Case Law on UNCITRAL Texts has compiled more than 1,300 exemplary judicial decisions and arbitral awards from over 40 countries that apply UNCITRAL conventions.

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