JC Master Legal News Issue 1135

Key Takeaways for This Issue

The China Securities Regulatory Commission convened a symposium to implement the spirit of the Third Plenary Session of the 20th CPC Central Committee and promote the stable and sound development of the capital market.
To thoroughly implement the spirit of the Third Plenary Session of the 20th CPC Central Committee and the meeting of the CPC Central Politburo held on September 26, Wu Qing, Secretary of the CPC Committee and Chairman of the China Securities Regulatory Commission, recently convened two symposiums with industry institutions in Shanghai, engaging in in-depth discussions with heads of securities offices, public mutual funds, and private equity funds, and soliciting their views and suggestions.
The Ministry of Culture and Tourism plans to issue the Measures for Handling Tourism Complaints.
On November 12, the Ministry of Culture and Tourism issued a notice soliciting public comments on the draft amendment to the Measures for Handling Tourism Complaints. The deadline for submitting feedback is December 11.
The Supreme People’s Court has released typical civil cases involving the use of fraudulent litigation to evade debt.
Recently, the Supreme People’s Court released five typical civil cases involving the use of fraudulent litigation to evade debt.
The Ministry of Justice has released the first batch of typical cases on administrative law enforcement supervision.
To further strengthen the corrective and error‑rectifying functions of administrative law enforcement oversight and to enhance the standardization and rule-of-law orientation of such oversight, the Ministry of Justice recently released eight case studies.
Finance & Capital Markets
Shanghai has made major strategic deployments in areas such as medical artificial intelligence, M&A and restructuring of listed companies, and the silver economy.
On November 12, Shanghai Mayor Gong Zheng presided over an executive meeting of the municipal government, calling for the development of a leading hub for medical artificial intelligence, support for mergers and acquisitions and restructuring among listed companies, and the promotion of high-quality growth in the silver economy.
The meeting approved in principle the “Shanghai Municipal Work Plan for Developing Medical Artificial Intelligence (2025–2027)” and emphasized the need to accelerate AI-driven innovation in medicine, vigorously implement the “AI Plus” initiative, and foster deep integration between artificial intelligence and the medical field.
The meeting approved in principle the “Shanghai Municipal Action Plan to Support Mergers and Acquisitions and Restructuring of Listed Companies (2025–2027)” and emphasized the need to prioritize projects that foster the development of new‑type productive forces and strengthen and complete industrial chains in key sectors, while bolstering policy support. At the same time, it called for robust risk‑management measures and resolute crackdowns on illegal practices such as financial fraud.
The meeting approved in principle the “Several Policy Measures for Promoting High-Quality Development of the Silver Economy in Shanghai” and emphasized the need to foster coordinated development between public services and the industry. The government will enhance basic elderly‑care public services and support elderly‑care institutions and related enterprises in expanding their operations.

The China Securities Regulatory Commission convened the 21st meeting of its International Advisory Committee in Shanghai.
The 21st Meeting of the China Securities Regulatory Commission’s International Advisory Committee (hereinafter referred to as the “Advisory Committee”) was held in Shanghai, adopting a hybrid format combining in-person and online participation. Attending the meeting were Mr. Howard Davies, Chairman of the Advisory Committee; Ms. Laura Cha, Vice Chair; 16 other members of the Advisory Committee and invited guests; as well as Mr. Wu Qing, Chairman of the CSRC; Mr. Li Ming, Vice Chairman; and Mr. Xie Dong, Vice Mayor of Shanghai. Also in attendance were relevant officials from the Central Financial Work Commission, the General Office of the State Council, the People’s Bank of China, the National Administration of Financial Regulation, and other institutions, along with responsible officials from the relevant departments and bureaus of the CSRC headquarters, its dispatched agencies, and its affiliated units.

The theme of this conference is “Further expanding high‑level two‑way opening-up, comprehensively deepening capital market reform, and better serving Chinese‑style modernization.” Participants engaged in extensive and in‑depth exchanges and discussions around three key topics: “Opportunities and challenges facing China’s capital market amid profound global changes”; “How to further improve the foundational systems and regulatory framework of China’s capital market to better foster the development of new‑type productive forces and support high‑quality economic growth”; and “How to steadily and orderly advance high‑level, institutionalized two‑way opening-up of China’s capital market, thereby more effectively attracting long‑term foreign investment in China.”

The members commended the Chinese government’s unwavering commitment to advancing reform and opening-up, as well as its steadfast policy resolve. They noted that over the past year, China’s capital markets have undertaken extensive efforts in strengthening regulation, managing risks, and promoting high-quality development, thereby playing a positive role in fostering China’s high‑quality economic growth and supporting the development of new‑type productive forces. The members paid close attention to the package of incremental policies and the optimization of existing measures recently introduced by the Chinese government, deeming these initiatives highly significant and encouraging. They believe such measures will further bolster the resilience of economic development, improve international market expectations for China’s economic outlook, reinforce domestic and foreign investors’ confidence in the investment value of the A‑share market, and help drive a sustained recovery and improvement in the capital markets. The members also spoke highly of the positive progress and achievements made in China’s capital markets’ high‑level, institutionalized two‑way opening-up. They recommended further refining the rules and frameworks governing this high‑level, institutionalized opening-up, enhancing measures to facilitate foreign investment in China, ensuring greater stability and transparency in policymaking, and strengthening communication and engagement with international investors.

In addition, the members put forward advisory opinions and policy recommendations on such issues as: further deepening reform and innovation in China’s capital market and enhancing its role in supporting technological innovation; further improving the capital market’s capacity to coordinate investment and financing, thereby fostering positive interactions between long-term capital—such as pension funds—and the capital market; strengthening the investment value of listed companies and elevating their quality, shareholder returns, and corporate governance standards; solidifying the capital market’s foundational institutional framework to bolster its intrinsic stability; and cultivating and expanding patient capital, including venture capital and private equity, while advancing the sustainable development of green finance.

The Advisory Committee is an expert advisory body to the China Securities Regulatory Commission. Established in June 2004 with the approval of the State Council, it comprises former officials from overseas financial regulatory agencies, senior executives of financial institutions, and renowned scholars and experts. The Committee convenes annually to review developments in China’s securities and futures markets, share the latest international market trends and regulatory practices, and provide advice and recommendations to the CSRC. In doing so, it continues to play a constructive role in helping the CSRC draw on international best practices and valuable experience, thereby advancing the reform and opening-up of the capital market and promoting its stable and sound development.

The China Securities Regulatory Commission convened a symposium to implement the spirit of the Third Plenary Session of the 20th CPC Central Committee and promote the stable and sound development of the capital market.
To thoroughly implement the spirit of the Third Plenary Session of the 20th CPC Central Committee and the meeting of the CPC Central Politburo held on September 26, Wu Qing, Secretary of the CPC Committee and Chairman of the China Securities Regulatory Commission, recently convened two symposiums with industry institutions in Shanghai, engaging in in-depth discussions with heads of securities offices, public mutual funds, and private equity funds, and soliciting their views and suggestions. Qiu Yong, Secretary of the CPC Committee and Chairman of the Board of the Shanghai Stock Exchange, also attended the symposiums.
During the symposium, participants unanimously agreed that, since the beginning of this year, with the introduction of the new “Nine Measures for the Capital Market” and the gradual implementation of the capital market’s “1+N” policy framework—particularly as the positive effects of China’s recent package of incremental policies continue to emerge—market expectations and confidence have strengthened markedly. The capital market has shown a robust recovery, demonstrating considerable resilience. As fiscal and monetary policies further intensify their counter-cyclical adjustments, the macroeconomy is expected to maintain a sustained upward trajectory, providing a solid foundation and favorable conditions for the stable and sound development of the capital market. At the same time, attendees put forward specific recommendations on further implementing the capital market’s “1+N” policy framework and institutional rules; comprehensively deepening capital market reforms; coordinating the effective use of equity and debt financing, mergers and acquisitions, and restructuring, among other capital market instruments; enhancing the comprehensive service capabilities of the multi-tiered capital market system; strengthening a multi-dimensional accountability mechanism in the capital market; and regulating the order of information dissemination in the capital market.
Wu Qing emphasized that securities and fund institutions are vital intermediary and professional service providers in the capital market, playing a pivotal role in further deepening capital market reforms across the board, optimizing resource allocation, fostering enterprise growth and expansion, and supporting China’s modernization drive. It is essential to thoroughly grasp the important arrangements and requirements set forth by the Third Plenary Session of the 20th CPC Central Committee for the capital market, strengthen confidence, stay focused on doing our own work well, and better fulfill our critical role as a key link connecting all participants in the capital market. We must accelerate the enhancement of specialized capabilities in investment banking, investment management, and research, cultivate core competitiveness, effectively meet the diverse needs of investors and financiers, and ensure the market functions more efficiently. At the same time, we should elevate internal controls and corporate governance, earnestly shoulder compliance‑related responsibilities, strengthen risk management for innovative products, and help maintain stable market operations. Striking an appropriate balance between functionality and profitability, we need to improve mechanisms for investor protection and enhance investor services. By aligning with the “Five Musts and Five Nos” guidelines, we can collectively foster a sound industry culture. Moreover, we must adopt a broader, systemic perspective, actively engage in the ongoing efforts to deepen capital market reforms, proactively offer advice and suggestions, ensure effective implementation of relevant policies and regulations, and work together to secure the anticipated outcomes of these reforms.

Commercial & Corporate
The State Council has approved the overall land and space planning for Ningbo, Nanning, and Qingdao.
On November 13, the Chinese Government Website published the State Council’s approvals of the “Ningbo Municipal Territorial Spatial Master Plan (2021–2035),” the “Nanning Municipal Territorial Spatial Master Plan (2021–2035),” and the “Qingdao Municipal Territorial Spatial Master Plan (2021–2035).”
Among them, the “Ningbo City Plan” calls for Ningbo to promote the integration of the Yangtze River Economic Belt development with the joint construction of the Belt and Road Initiative, to deepen its participation in the integrated development of the Yangtze River Delta, to successfully advance the “twin-city story” between Hangzhou and Ningbo, and to strengthen regional coordination in the development, protection, and utilization of land space within the Ningbo metropolitan area, thereby fostering a new pattern of land‑space development and conservation characterized by distinct functional orientations, complementary strengths, and high‑quality growth. The “Qingdao City Plan” stipulates that Qingdao should reinforce its role as a key node in ensuring smooth domestic–international dual circulation, deeply integrate into the high‑quality joint construction of the Belt and Road Initiative, and advance the establishment of the China–Shanghai Cooperation Organization Demonstration Zone for Local Economic and Trade Cooperation. It also aims to lead the coordinated development of the Shandong Peninsula urban agglomeration, strengthen regional coordination in the development, protection, and utilization of land space within the Qingdao metropolitan area, and promote a new landscape of land‑space development and conservation marked by clear functional differentiation, complementary advantages, and high‑quality growth.

The State Council has in principle approved the “Plan for Building a Bulk Commodity Resource Allocation Hub in the China (Zhejiang) Pilot Free Trade Zone.”
On November 13, the Chinese Government Website published the State Council’s reply approving the “Plan for Building a Bulk Commodity Resource Allocation Hub in the China (Zhejiang) Pilot Free Trade Zone.”
The Approval Document explicitly approves in principle the “Plan for Building a Bulk Commodity Resource Allocation Hub in the China (Zhejiang) Pilot Free Trade Zone,” emphasizing the need to fully, accurately, and comprehensively implement the new development philosophy, accelerate the establishment of a new development paradigm, vigorously promote high-quality development, coordinate the domestic and international contexts, and balance high-quality development with high-level security. With institutional innovation at its core, the plan calls for proactively aligning with high-standard international economic and trade rules, continuously advancing the liberalization and facilitation of investment and trade in bulk commodities, effectively leveraging the China (Zhejiang) Pilot Free Trade Zone as a comprehensive platform for reform and opening-up, and comprehensively enhancing its capacity for bulk commodity resource allocation.

The Beijing Municipal Government plans to issue three compliance guidelines for operators of online trading platforms.
On November 14, the Beijing Municipal Government website published the “Notice on Soliciting Public Comments on Three Compliance Guidelines for Operators of Online Trading Platforms,” with the deadline for submitting feedback set for November 23.
The three compliance guidelines are the “Compliance Guidelines for Service Agreements and Transaction Rules of Online Trading Platform Operators,” the “Compliance Guidelines for Information Disclosure and Reporting by Online Trading Platform Operators,” and the “Compliance Guidelines for the Management of Prohibited and Restricted Products by Online Trading Platform Operators.” Specifically, the “Compliance Guidelines for Service Agreements and Transaction Rules” comprises five chapters and twenty-nine articles, setting forth the compliance requirements that online trading platform operators must observe when establishing and refining their platform service agreements and transaction rules. The “Compliance Guidelines for Information Disclosure and Reporting” consists of five chapters and thirty-four articles, outlining the compliance obligations of online trading platform operators to disclose relevant information to consumers and merchants on the platform, as well as to submit, report, and provide such information to the competent government authorities in accordance with the law. The “Compliance Guidelines for the Management of Prohibited and Restricted Products” contains twenty articles, primarily addressing products prohibited or restricted from sale online, and provides guidance to online trading platform operators on implementing compliance management requirements in areas such as rule‑making, list compilation, dynamic oversight, routine inspections, joint prevention and control, and incident response.

The National Intellectual Property Administration has issued the “Guidelines for the Operation and Management of Trademark Application Service Windows.”
The website of the National Energy Administration has published the “Notice on Issuing the ‘Guidance for the Operation and Management of Trademark Application Service Windows.’”
The “Work Guidelines” comprise five chapters and twenty-one articles, stipulating that if staff members, by virtue of their official positions, exceed their authority to access or disclose non-public trademark application information for improper gain, or if they engage in trademark agency services or solicit business on behalf of trademark agencies, such conduct shall be deemed a serious violation. In such cases, the Trademark Office will issue rectification requirements to the provincial intellectual property administration department in the jurisdiction where the service window is located; if, following rectification, the requirements remain unmet, the relevant commissioned matters shall be canceled and publicly announced.

Five departments have jointly issued guidelines to deepen the integration of industry and education in the domestic services sector.
On November 13, the National Development and Reform Commission’s website published the “Opinions on Deepening Industry–Education Integration in the Household Services Sector.”
The Opinions call for guiding domestic service enterprises to establish and improve a comprehensive, enterprise-wide training system covering pre‑employment, on‑the‑job, and job‑transition phases; to advance the formulation or revision of national occupational standards for relevant occupations (trades) in the domestic service sector; to strengthen professional ethics education for domestic service personnel; to continuously implement skills‑upgrading initiatives for domestic service workers; to promote real‑name authentication and online training on the “Domestic Service Credit Check” platform; and to deepen the use of competitions as a means of enhancing training. It also calls for the implementation of training programs such as “Women’s Domestic Service,” “Trade Union Domestic Service,” and “Open University Domestic Service.”

Three departments have issued a document to promote the high-quality development of the forage industry.
On November 13, the National Development and Reform Commission published the “Opinions on Promoting the High-Quality Development of the Forage Industry” on its website.
The “Opinions” comprise six articles, proposing to adjust and optimize the agricultural production structure, vigorously promote the principle of “matching crops to land,” actively develop forage cultivation on saline‑alkali soils, strengthen infrastructure for forage production, elevate the level of the forage seed industry, reinforce science and technology support for the forage sector, advance the development of a complete forage industry chain, and establish a modern forage industry system. The document calls for accelerating the research, development, and application of agricultural machinery and equipment for forage production and processing, including small forest‑land machinery for seeding, and for exploring the introduction of mortgage loans secured by large‑scale forage‑harvesting machinery. It also seeks to raise the degree of mechanization in key operations such as seed harvesting, mowing and flattening, chopping and shredding, grain crushing, and picking up and baling. Furthermore, it encourages the cultivation of new types of business entities—such as grass‑livestock cooperatives and forage enterprises—with high management standards and strong capacity to drive rural development, while actively promoting the commercialization and distribution of forage products like high‑density hay bales, forage pellets, and wrapped silage.

The General Administration of Customs has issued five industry standards, including the “Inspection Procedures for Imported Recycled Copper Raw Materials.”
Recently, the General Administration of Customs website published the “Announcement on the Release of Five Industry Standards, Including the ‘Inspection Procedures for Imported Recycled Copper Materials.’”
The five industry standards released this time primarily include the “Inspection Procedures for Imported Recycled Copper Raw Materials,” the “Inspection Procedures for Imported Recycled Copper Alloy Raw Materials,” the “Inspection Procedures for Imported Recycled Aluminum Alloy Casting Raw Materials,” the “Inspection Procedures for Imported Recycled Aluminum Alloy Deformation Raw Materials,” and the “Inspection Procedures for Imported Recycled Pure Aluminum Raw Materials.”

The People’s Bank of China convened a symposium for foreign-funded financial institutions.
On November 6, the People’s Bank of China convened a symposium with foreign-funded financial institutions to solicit their views and suggestions and to examine measures for further improving the business environment and advancing high-standard opening-up in the financial sector.
At the symposium, Pan Gongsheng, Secretary of the Party Committee and Governor of the People’s Bank of China, provided an in-depth explanation of China’s current monetary policy stance and the considerations underlying adjustments to the monetary policy framework. He also outlined progress on high‑level financial sector opening-up and the implementation of a package of additional financial policies, listened to views and suggestions, and engaged in exchanges to address issues of concern to various institutions.

The Ministry of Industry and Information Technology is soliciting public comments on 54 industry standards for the electronics sector.
On November 11, the website of the Ministry of Industry and Information Technology published a public notice on the submission for approval of 54 industry standards in the electronics sector, with a deadline for feedback set for December 11.
The industry standards announced in this batch include, among others, “Information Technology—Barcode Reading and Display on Mobile Devices,” “Satellite Mobile Multimedia—Network‑Integrated Transmission Protocol,” “Satellite Mobile Multimedia—Requirements for Terminal Content Protection,” “Technical Specification for Display‑Screen Defect Detection Systems for Ultra‑High‑Definition Video—Part 1: General Requirements,” “Technical Specification for Display‑Screen Defect Detection Systems for Ultra‑High‑Definition Video—Part 2: Liquid Crystal Displays (LCD),” “Technical Specification for Display‑Screen Defect Detection Systems for Ultra‑High‑Definition Video—Part 3: Organic Light‑Emitting Diodes (OLED),” and “Comprehensive Quality Assessment of Ultra‑High‑Definition 4K Video Services.”

The Ministry of Public Security has released 10 typical cases of law-based crackdowns on intellectual property infringement and counterfeit‑goods crimes in the internet sector.
The website of the Ministry of Public Security has released ten typical cases of law-based crackdowns on online infringement and counterfeiting crimes.
In Case No. 8, in August 2024, public security authorities in Guangzhou, Guangdong Province, acting on leads uncovered through in-depth investigations into previous cases, solved nine criminal cases, apprehended 20 suspects, dismantled 14 criminal dens, and seized over 83,000 bottles/bags of counterfeit hair care products and more than 150,000 trademark labels, with the total value of the case exceeding RMB 85 million. Investigations revealed that since July 2022, the suspect Chen Mouqin and others had purchased raw materials and counterfeit packaging, rented residential homes and factory premises to set up production facilities, and mass‑produced counterfeit branded shampoos, hair masks, and other hair care products, which they then sold through e‑commerce platforms and social media.

The National Energy Administration has launched a call for submissions of typical cases in power quality management.
On November 11, the website of the National Energy Administration published the “Notice on Launching the Collection of Typical Cases in Power Quality Management.”
This call for submissions primarily seeks cases in the following four categories: (1) Fundamentals of power quality management; (2) Power quality management in power generation; (3) Power quality management in transmission and distribution; and (4) Power quality management in electricity consumption. Among these, the “Fundamentals of Power Quality Management” category focuses on advanced experiences and practices related to fostering government‑enterprise collaboration and multi‑stakeholder coordination, strengthening the foundational framework for power quality management, establishing regular collaborative working mechanisms, advancing the digital transformation of power quality management, enhancing the adaptability and guidance of standards, reinforcing the application and implementation of standards, and supporting government agencies and electricity users in effectively managing power quality.

Beijing plans to issue the “Safety Management Specifications for Hazardous Chemicals in Medical Institutions.”
On November 13, the Beijing Municipal Government website published the “Notice on Public Solicitation of Comments on the ‘Safety Management Standards for Hazardous Chemicals in Medical Institutions,’” with a deadline for submitting feedback set for December 12.
The Standard specifies the organizational structure, personnel requirements, and institutional framework for managing hazardous chemicals in medical institutions, as well as safety management requirements for the procurement, use, storage, and disposal of hazardous chemicals, medical gases, and liquid oxygen stations. It applies to the safe management of hazardous chemicals in medical institutions, excluding those affiliated with military units stationed in Beijing.

The Ministry of Culture and Tourism plans to issue the Measures for Handling Tourism Complaints.
On November 12, the Ministry of Culture and Tourism issued a notice soliciting public comments on the draft amendment to the Measures for Handling Tourism Complaints. The deadline for submitting feedback is December 11.
The Draft for Public Comment introduces the following key revisions: clarifying the competent authorities and scope of acceptance for handling tourism complaints; revising jurisdictional rules; shortening processing time limits; specifying the burden of proof borne by complainants; expanding the forms of mediation; and strengthening institutional safeguards. Taking into account circumstances where, for instance, the place of contract signing is not closely related to the tourism market operator, the Draft reorders the priority of jurisdiction over tourism complaints as follows: “the domicile of the tourism market operator,” “the place of contract signing,” and “the place where the dispute arose.” In cases where multiple complaint-handling agencies have concurrent jurisdiction, the Draft explicitly establishes a “first‑inquiry responsibility system.”

The Ministry of Education has issued a document to strengthen the development of city-level industry–education consortia.
Recently, the General Office of the Ministry of Education issued the “Notice on Strengthening the Development of Municipal‑Level Industry–Education Consortia,” calling for further elevating the standards of such consortia, enriching their substantive content, and ensuring high‑quality implementation.
The Notice for the first time includes the development of municipal‑level industry‑education consortia as part of inter‑ministerial and provincial‑level consultations. The Ministry of Education will convene with selected provincial education authorities, municipal (and county) governments, leading institutions, and enterprises, and through assessments, field surveys, monitoring, and other mechanisms, will systematically and targetedly foster and establish newly designated national municipal‑level industry‑education consortia in phases. The Notice also announced the second batch of six national municipal‑level industry‑education consortia: Taicang in Jiangsu, Ningbo in Zhejiang, Yiwu in Zhejiang, Nanning in Guangxi, Yibin in Sichuan, and Changji in Xinjiang.

The State Cryptography Administration has released the “Directory of Commercial Cryptography Testing Institutions.”
On November 11, the State Cryptography Administration issued Announcement No. 49, publishing the “Catalog of Commercial Cryptography Testing Institutions (for Commercial Cryptography Application Security Assessment Services).” Effective immediately, the pilot program for commercial cryptography application security assessments has officially concluded; institutions that have not obtained qualification as a commercial cryptography testing institution (for commercial cryptography application security assessment services) are prohibited from conducting such assessments open to the public.

The Ministry of Emergency Management plans to clarify relevant matters under the Measures for the Administration of Safety Evaluation, Testing, and Inspection Agencies.
On November 11, the Ministry of Emergency Management issued a letter soliciting public comments on the “Notice of the Ministry of Emergency Management on Clarifying Certain Matters Related to the Measures for the Administration of Safety Evaluation, Testing, and Inspection Agencies (Draft for Comments).” The deadline for submitting feedback is November 22.
At present, the qualification certificates of safety assessment, testing, and inspection agencies across various regions are expiring one after another and require renewal. Moreover, following the removal of safety assessors from the National Catalogue of Professional Qualifications, these agencies face challenges such as the inability to replenish their staff with qualified safety assessors in accordance with the institutional qualification requirements stipulated in the Measures, thereby jeopardizing the sustainable development of the safety assessment sector. The draft for public comment addresses this issue by including individuals who have obtained the intermediate-level Registered Safety Engineer professional qualification within the scope of recognized safety assessors under the institutional qualification criteria, treating them as “full-time safety assessors.”

The National Standardization Administration has released the sixth batch of recommended national standards for 2024, along with related foreign-language versions.
On November 12, the National Standardization Administration Commission issued the “Notice on the Sixth Batch of Recommended National Standards Plans for 2024 and the Corresponding Foreign-Language Version Plans for Relevant Standards.”
This batch of recommended national standards comprises a total of 376 items, including 107 newly developed standards and 269 revised standards, with 372 recommended standards and 4 guiding technical documents. In addition, this batch includes a simultaneous issuance of 41 plans for the development of foreign-language versions of these recommended national standards, all of which are in English.

General Department of the National Energy Administration: Further Standardize Electricity Market Trading Practices
Recently, in order to effectively mitigate market‑operation risks, further standardize the trading practices of market participants, and ensure a unified, open, competitive, and orderly electricity market, the National Energy Administration issued the “Notice on Further Regulating Trading Practices in the Electricity Market.”
The Notice sets forth the following measures: fully implementing the national requirements for building a unified electricity market; continuously promoting compliant trading by market participants; rigorously standardizing market quoting practices; conducting regular market monitoring and analysis; and continually strengthening day-to-day regulatory oversight.

Ministry of Natural Resources: Utilizing funds from local government special bonds to reclaim and acquire existing idle land.
Recently, the Ministry of Natural Resources issued the “Notice on Using Funds from Local Government Special Bonds to Recover and Acquire Existing Idle Land.”
The Notice sets forth the following provisions: The use of special-purpose bond funds for the acquisition and repossession of land shall be implemented by land reserve institutions that are included in the designated roster; priority shall be given to reclaiming residential and commercial‑service land parcels that enterprises are unable or unwilling to develop further, or that have been allocated but remain undeveloped. Municipal and county natural resources authorities shall, through the dynamic monitoring and regulatory system for the land market, compile an inventory of existing idle land parcels to establish a clear baseline, and, as needed, issue public notices soliciting applications for the repossession of such land. Taking into account factors such as enterprise preferences, market demand, and site conditions, they shall identify parcels for potential repossession and establish a phased implementation schedule, incorporating them into the land reserve plan in batches and giving priority to their inclusion in special‑purpose bond‑financed projects. Land reserve institutions shall engage registered land appraisal agencies to conduct market‑based valuations of the parcels slated for repossession, and shall determine the base price for acquisition based on the lower of the valuation and the enterprise’s stated land cost. In principle, land that has been acquired and subsequently reclaimed shall not be re‑allocated for real estate development within the same year.

Two departments have issued a document requiring that advance payments from the medical insurance fund be properly managed.
The Office of the National Healthcare Security Administration and the General Office of the Ministry of Finance recently issued the “Notice on Strengthening Advance Payments from the Medical Insurance Fund,” requiring the nationwide standardization and improvement of the basic medical insurance fund advance payment system, the streamlining of procedures, the reinforcement of management, and the effective enhancement of fund‑use efficiency.
The Notice standardizes and refines, at the national level, the advance‑payment system for basic medical insurance funds. It clarifies that such advance payments are revolving funds established to help designated medical institutions alleviate the financial burden of upfront cost disbursements, enhance their service capacity, and improve insured persons’ satisfaction with access to care. These funds may be used only for working capital related to the procurement of pharmaceuticals and medical consumables; they may not be allocated to non‑medical expenditures such as infrastructure investment, routine operating expenses, or debt repayment. According to the Notice, provincial medical insurance authorities are required to guide pooled‑area administrations in organizing and implementing advance‑payment arrangements for medical insurance funds. In principle, advance payments from the employee medical insurance pooled fund may be made when its cumulative surplus can cover at least 12 months of expenditures; similarly, advance payments from the resident medical insurance fund may be made when its cumulative surplus can cover at least 6 months of expenditures. Pooled areas that recorded a current‑year deficit last year, or whose projected deficit for the current year—calculated on a 12‑month rolling basis—exceeds the threshold, shall not be eligible for advance payments.

Four departments have jointly issued the “Guidelines on Consultation for the Rights and Interests of Workers in New Forms of Employment.”
Recently, the All-China Federation of Trade Unions, the Ministry of Human Resources and Social Security, the China Enterprise Confederation, and the All-China Federation of Industry and Commerce jointly issued the “Guidelines on Consultation Regarding the Rights and Interests of Workers in New Forms of Employment,” which are intended to guide platform enterprises in fully soliciting the views and suggestions of trade unions and worker representatives, formulating, in a reasonable manner, policies and platform algorithms that affect workers’ rights and interests, further standardizing consultation procedures and enhancing their effectiveness, and encouraging enterprises to ensure compliant employment practices while enabling workers to safeguard their rights in accordance with the law.
The Guidelines comprise thirteen articles, encouraging enterprises, trade unions, and worker representatives to engage in proactive consultations. Such consultations shall be conducted by representatives of both sides in the form of consultation meetings, including collective bargaining, coordination sessions, and informal dialogues, while specifying limits on the number of representatives, their compositional structure, and the methods for their appointment. The Guidelines emphasize that, prior to each consultation meeting, representatives from both sides should broadly solicit input from all stakeholders, prioritize agenda items based on the specific circumstances of the industry, and provide relevant information and materials. They also enumerate common issues addressed in negotiations—such as order‑assignment rules, insurance coverage, remuneration policies, and skills‑training programs—pertinent to delivery companies, mobility and transportation offices, and domestic‑service providers. Any outcomes reached at these consultation meetings, including draft collective agreements, meeting minutes, and memoranda, must be signed by the chief representatives of both parties and made public to all applicable workers within ten days.

The Standing Committee of the National People’s Congress: It is widespread for enterprises to pay social security contributions based on the minimum wage base, and a unified national implementation standard must be issued promptly.
China’s National People’s Congress website recently published the “Report of the Law Enforcement Inspection Group of the Standing Committee of the National People’s Congress on the Implementation of the Social Insurance Law of the People’s Republic of China,” which highlights certain shortcomings and weaknesses in the law’s implementation and puts forward relevant opinions and recommendations.
Law enforcement inspections have revealed that state-owned enterprises, foreign-invested enterprises, and large private enterprises generally comply with the law by enrolling their employees in various social insurance schemes. However, the participation rate among small and micro‑enterprises remains relatively low, with a significant gap between those who should be covered but are not. Moreover, contributions are often calculated based on the minimum wage base—60% of the average local wage—which is widespread. Although social insurance premiums have been transferred to the tax authorities for unified collection, the relevant legal framework has yet to be adjusted accordingly.
The report recommends aligning the social security contribution collection period with the tax collection period, refining the components of wage bases and calculation methodologies for each type of social insurance, clarifying issues such as the time limit for recovering unpaid contributions and the application of late-payment penalties, and promptly issuing nationwide uniform operational guidelines. It further calls for delineating departmental responsibilities: designating the tax authorities as the collecting agencies for social security contributions and empowering them to carry out routine collection, contribution audits, compulsory enforcement, and administrative penalties; and clearly defining the respective responsibilities of the human resources and social security authorities and the tax authorities in assessing and determining entitlement losses and supplementary payment amounts in judicial proceedings.

The Ministry of Industry and Information Technology has issued the “Guidance on the Development of Carbon Footprint Accounting Standards for Key Industrial Products.”
To accelerate the enhancement of carbon‑footprint management for key industrial products, promote the green and low‑carbon transformation of relevant industries, and support the achievement of carbon peaking and carbon neutrality goals, the Ministry of Industry and Information Technology recently issued the “Guidance on the Development of Carbon‑Footprint Accounting Rules and Standards for Key Industrial Products.”
The Guidelines aim to provide unified management for the research and development of rules and standards for carbon‑footprint accounting of industrial products, guiding relevant industry associations (federations), standardization technical bodies, and specialized standardization institutions to accelerate the formulation of such standards, steadily and systematically expand the scope of covered products, and proactively establish a comprehensive system of rules and standards for industrial product carbon‑footprint accounting. They also seek to steer enterprises toward low‑carbon transformation, promote the upgrading and transformation of industrial and supply chains, and enhance green, low‑carbon competitiveness.

Taxation
In the first three quarters, support for technological innovation and manufacturing development resulted in tax and fee reductions and refunds totaling over RMB 2 trillion.
Technological innovation and manufacturing development continue to improve steadily.
Since the beginning of this year, in accordance with the decisions and arrangements of the CPC Central Committee and the State Council, the tax authorities have earnestly implemented the directives from the Central Economic Work Conference and the Government Work Report to “effectively carry out structural tax and fee reduction policies, with a focus on supporting technological innovation and the development of the manufacturing sector.” By adopting targeted measures, they have worked to ensure that the benefits of these policies are delivered swiftly and precisely to business entities, thereby providing strong impetus to the growth of new‑type productive forces and the manufacturing industry.
According to the latest data released by the State Taxation Administration, from January to September this year, the major policies currently in place to support scientific and technological innovation and the development of the manufacturing sector resulted in tax and fee reductions and refunds totaling RMB 2.0868 trillion.
The tangible tax and fee reductions have demonstrably bolstered technological innovation and the high-end, intelligent, and green development of the manufacturing sector.
— Nearly 900 billion yuan in tax and fee incentives, including additional deductions for R&D expenses, have been implemented, providing greater financial support for innovation.
In recent years, China has steadily strengthened its tax and fee‑related policies to support scientific and technological innovation. The additional deduction rate for enterprise R&D expenses has been uniformly raised from 75% to 100%, while the rate for integrated circuit companies and industrial‑machine tool manufacturers has been further increased to 120%, creating a favorable tax environment that encourages enterprises to pursue innovative development. According to data from the State Taxation Administration, from January to September this year, policies such as the additional deduction for R&D expenses—designed to boost investment in science and technology, facilitate technology transfer, and attract and cultivate skilled personnel—resulted in tax and fee reductions and refunds totaling 893.7 billion yuan.
Huizhou, Guangdong, is an important hub for the production of advanced printed circuit boards (PCBs) in China, with more than 100 such enterprises operating throughout the city. Shenghong Technology (Huizhou) Co., Ltd., one of the region’s leading companies, reported first-half 2024 revenue of RMB 4.855 billion, up 32.29% year over year.
“The company continues to ramp up its R&D investment and has achieved significant breakthroughs in computing power and AI server technologies,” said Chen Tao, Chairman of Shenghong Technology. In the first half of 2024, the company benefited from a total R&D expense super‑deduction of RMB 136 million and tax breaks totaling over RMB 12 million as a high‑tech enterprise. Shenghong Technology has allocated these funds to R&D innovation, digital‑factory development, and other initiatives, fostering a virtuous cycle of capacity expansion and efficiency gains.
Shenghong Technology is a microcosm of Chinese listed companies’ commitment to R&D and innovation. As the vanguard of China’s economy, A-share listed offices have recently released their “report card” on R&D investment. According to data disclosed by the China Association of Public Companies, in the first three quarters of 2024, listed companies’ R&D spending reached RMB 1.1 trillion, up 3.9% year on year.
— Tax and fee policy incentives totaling over RMB 300 billion support high-tech enterprises and emerging industries, further boosting the vitality of innovation-driven entities.
As the main drivers of innovation, Chinese enterprises have demonstrated robust innovative vitality, and a growing cohort of internationally competitive, industry-leading offices continues to expand. Data show that, as of the end of August, the number of industrial enterprises above designated size in China reached 504,000, up 4.4% from the end of 2023. To date, the country has cultivated 1,557 manufacturing single-champion enterprises, more than 140,000 specialized, refined, distinctive, and innovative SMEs, and 14,600 specialized, refined, distinctive, and innovative “little giant” enterprises. Meanwhile, the number of high-tech enterprises with valid certifications stands at 463,000.
To support enterprises’ innovation and development, in addition to the preferential policy of additional tax deductions for R&D expenses, the tax authorities have also actively implemented the policy of levying corporate income tax at a reduced rate of 15% for high-tech enterprises, and precisely applied measures such as the value-added tax credit offset and refund for advanced manufacturing offices. These efforts further bolster the high-quality development of the manufacturing sector and strive to foster a favorable ecosystem conducive to the growth of advanced manufacturing.
According to the latest data released by the State Taxation Administration, from January to September this year, tax reductions totaling 302.5 billion yuan were implemented under policies supporting the cultivation and development of high-tech enterprises and emerging industries, including a reduced corporate income tax rate of 15% for high-tech enterprises and exemption from vehicle acquisition tax on new-energy vehicles.
Hangjia Chiyuan Electrical Co., Ltd. is a high-tech enterprise based in Shenzhen that independently researches, designs, and manufactures smart home products, new‑energy batteries, and other offerings. From January to September 2024, the company benefited from cumulative R&D expense tax deductions totaling RMB 99 million and tax incentives for high‑tech enterprises amounting to RMB 15 million.
Liu Maoqi, the company’s CEO, expressed a clear appreciation for tax support: “We invest over 100 million yuan annually in R&D, and we also benefit from tax incentives totaling more than 100 million yuan each year. Most of these tax benefits are channeled into the research, development, and manufacturing of power‑supply products across key areas such as 5G, intelligent manufacturing, the Internet of Things, and new energy, helping us continuously strengthen our competitive edge and capture a larger share of the market.”
Thanks to a series of supportive policies, including tax and fee incentives, technological innovation has yielded significant results so far this year. According to VAT invoice data, from January to October, sales revenue in the high-tech sector increased by 11.4% year on year. In particular, sales revenue for technology transfer services and information technology services rose by 27% and 12.3%, respectively, reflecting an accelerated conversion of innovation-driven factors and a faster pace of digitalization. Meanwhile, sales revenue in the core industries of the digital economy grew by 7.4% year on year, with digital technology application and digital content and media sectors posting year-on-year increases of 11% and 14.8%, respectively, underscoring steady progress in the industrialization of digital technologies.
— Nearly 900 billion yuan in tax and fee concessions are supporting the upgrading of traditional manufacturing and the development of advanced manufacturing, further bolstering the momentum of innovation-driven growth.
Promoting the transformation and upgrading of traditional manufacturing while vigorously developing advanced manufacturing is essential to achieving high-quality growth in the sector. In March this year, China unveiled an action plan to drive large-scale equipment upgrades and a trade-in program for consumer goods. The tax authorities have actively implemented policies such as accelerated depreciation for newly acquired fixed assets in key manufacturing sectors and additional VAT credit deductions for advanced manufacturing enterprises, helping the industry move more quickly toward the mid- to high-end segments of the value chain and advance along paths of high-end development, intelligentization, and green practices.
Data show that from January to September this year, policies supporting the high-quality development of the manufacturing sector—such as the value-added tax additional deduction and the refund of outstanding input VAT credits—resulted in tax and fee reductions and refunds totaling RMB 810.7 billion. Meanwhile, measures to encourage equipment upgrades and technological transformation, including the one-time pre-tax deduction for equipment and instruments purchased at or below RMB 5 million, generated tax reductions amounting to RMB 80 billion.
In Panzhi City, the largest steel pipe distribution center in Northeast China, numerous steel-producing enterprises have gathered. The Jilin Provincial tax authorities have comprehensively reviewed relevant policies, including accelerated depreciation for equipment and instruments purchased by enterprises, as well as tax credits for investments in specialized equipment for environmental protection, energy and water conservation, and workplace safety. They have distributed over 10,000 copies of the “Compilation of Tax Preferential Policies Supporting Large-Scale Equipment Upgrades” to key industries and priority enterprises, and provided targeted policy guidance to help businesses upgrade their equipment and accelerate development.
“The tax authorities have helped us navigate the ‘policy gate’ and the ‘financial gate’ of equipment upgrades, enabling us to promptly and accurately reap the benefits of favorable policies. Since the beginning of this year, the company has invested over 4 million yuan in upgrading equipment such as annealing furnaces and accelerating projects like digital and intelligent transformation,” said Guo Fangrui, Finance Manager of Panshi Zhucheng Seamless Steel Pipe Co., Ltd., to our reporter. Last year, the company benefited from a series of tax incentives, including income tax reductions for high-tech enterprises, additional deductions for R&D expenses, and a one-time pre-tax deduction for newly purchased equipment valued at up to 5 million yuan, totaling nearly 10 million yuan in tax and fee concessions.
Supported by a range of tax and fee preferential policies, China’s manufacturing sector has continued to improve this year. According to VAT invoice data from the State Taxation Administration, from January to October, despite a 2% decline in the PPI during the first three quarters, manufacturing sales revenue increased by 3.6% year on year. In particular, sales revenue in the equipment manufacturing, digital products manufacturing, and high‑tech manufacturing sectors rose by 5.3%, 8.5%, and 8.7%, respectively, year on year. Notably, advanced manufacturing segments such as computer manufacturing, communications and radar equipment manufacturing, and smart equipment manufacturing saw year‑on‑year growth of 16.4%, 21.6%, and 11.2%, respectively, reflecting steady progress in the upgrading and intelligentization of the manufacturing industry.
An official from a relevant department of the State Taxation Administration stated that, in the next phase, the tax authorities will thoroughly implement the spirit of the Third Plenary Session of the 20th CPC Central Committee, give even greater priority to supporting scientific and technological innovation and the development of the manufacturing sector, further ensure the effective implementation of tax and fee‑related policies such as the additional deduction for R&D expenses, and do their utmost to foster the innovative development of all types of enterprises, thereby better cultivating and strengthening new drivers of productivity and further boosting the high‑quality development of the manufacturing industry.

Litigation & Arbitration
The website of the National People’s Congress of China has published a list of currently effective laws.
On November 12, the website of the National People’s Congress of China published a list of currently effective laws, totaling 305.
According to the catalog, as of the closing of the 12th Meeting of the Standing Committee of the 14th National People’s Congress on November 8, 2024, China has a total of 305 currently effective laws. Among these, in the category of constitutional-related laws, the Law on the Supervision of the Standing Committees of People’s Congresses at All Levels was amended; in administrative law, the Cultural Relics Protection Law was revised, and the Preschool Education Law was newly enacted; in economic law, the Mineral Resources Law was revised, the Anti-Money Laundering Law was revised, and the Energy Law was newly enacted.

For the first time, the Supreme People’s Procuratorate has released the Nansi Lake special case in a “one batch, one case” format.
On November 13, the Supreme People’s Procuratorate, for the first time, released the Nansi Lake special case as a guiding case—designated as the 54th batch of guiding cases—using a “one batch, one case” format. To date, this case remains the most challenging public-interest litigation involving ecological and environmental damage that the Supreme People’s Procuratorate has directly initiated and handled.

The Supreme People’s Court has released ten landmark environmental and resource cases.
On November 12, the Supreme People’s Court selected and released ten landmark cases—drawn from its annually published environmental and resource guidance cases, typical cases, and other influential precedents—to showcase the achievements of environmental and resource adjudication over the past decade.
A total of 10 cases were released this time. These cases involve a wide array of ecological factors, cover an extensive scope of protection, exhibit a high degree of complexity, and demonstrate a strong spirit of innovation. They carry both normative significance in judicial rulings and value for public legal education, collectively highlighting the distinctive characteristics, professional standards, and functional role of the people’s courts in environmental and resource adjudication.

The Ministry of Justice has released the first batch of typical cases on administrative law enforcement supervision.
To further strengthen the corrective and error‑rectifying functions of administrative law enforcement oversight and to enhance the standardization and rule-of-law orientation of such oversight, the Ministry of Justice recently released eight case studies.
The cases released this time reflect, from various perspectives, the content, methods, and specific practices of administrative law enforcement oversight, highlighting the functional mandates and distinctive features of this supervisory role. In particular, they focus on issues that directly affect the public in their daily lives and routine matters, emphasize oversight of law enforcement activities involving businesses, and seek to address problems such as non‑standardized inspections and excessive scrutiny. These cases thus serve as a valuable model for guiding administrative law enforcement oversight bodies and institutions at all levels across the country in carrying out their supervisory duties in accordance with the law.

The Supreme People’s Court has released typical civil cases involving the use of fraudulent litigation to evade debt.
Recently, the Supreme People’s Court released five typical civil cases involving the use of fraudulent litigation to evade debt.
In Case 1, the Supreme People’s Court explicitly held that when shareholders abuse the limited liability regime—making false capital contributions to evade responsibility, undermining corporate governance, and disrupting market order—they must be sanctioned in accordance with the law. After a shareholder has been added as an enforced party, if they file an objection lawsuit challenging the addition of the enforced party in order to evade enforcement and avoid debt repayment, and during the litigation fabricate false capital contribution documents, concoct fictitious bank transaction records, and engage in circular transfers to artificially inflate the amount of contributed capital, thereby creating the illusion that their capital contribution obligations have been fulfilled, such conduct constitutes a fraudulent lawsuit. The people’s courts shall, in accordance with the law, add the shareholder as an enforced party, hold them liable within the scope of their false contributions, and, pursuant to the provisions of the Civil Procedure Law, impose fines or detention on those who engage in fraudulent litigation. Furthermore, any clues indicating criminal activity shall be referred to the public security organs, so as to severely crack down on shareholders’ practices of evading debt through false capital contributions.

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