JC Master Legal News Issue 1132

Key Takeaways for This Issue

The 1-year and the 5-year-plus LPRs have both been cut by 25 basis points.
On October 21, the People’s Bank of China authorized the National Interbank Funding Center to announce that the 1-year LPR stands at 3.1%, and the LPR for maturities of five years and above is 3.6%, both down 25 basis points from the previous period. This marks the third LPR adjustment this year.
Official definitions for terms such as “data resources” and “data assets” are slated to be released.
On October 21, the National Data Administration issued a public notice soliciting comments on the “Glossary of Terms in the Data Domain,” with a deadline for feedback set for November 20, 2024.
The Cybersecurity Standards Committee has issued the “Guidance on the Practice of Cybersecurity Standards” and the Administrative Measures for Participating Organizations in Standard Development.
On October 21, the Cybersecurity Standards Committee issued the “Notice on the Issuance of Two Regulatory Documents of the Cybersecurity Standards Committee: the Administrative Measures for the Implementation of the ‘Cybersecurity Standards Practice Guide’ and the Administrative Measures for Standard-Participating Organizations.”
The Supreme People’s Procuratorate and the Ministry of Ecology and Environment have jointly issued guidelines to strengthen the coordination between ecological and environmental damage compensation and public interest litigation by the procuratorial organs.
The Supreme People’s Procuratorate and the Ministry of Ecology and Environment recently jointly issued the “Opinions on Strengthening the Coordination between Compensation for Ecological and Environmental Damage and Public Interest Litigation by the Procuratorial Organs,” which clarifies the mechanisms for mutual notification and intervention between the procuratorial organs and the ecological and environmental authorities in carrying out work related to compensation for ecological and environmental damage.
Finance & Capital Markets
The China Securities Regulatory Commission has released the findings of a special inspection into the internal controls and ethical conduct of securities offices’ investment banking businesses.
To implement the requirements of the Central Financial Regulatory Work Conference—“sharp and robust, with clear boundaries and accountability”—and to continuously strengthen oversight of securities offices’ investment banking activities while rigorously enforcing the “gatekeeper” responsibilities of intermediary institutions, this year our Commission conducted on-site inspections of the internal controls and integrity practices of certain securities offices’ investment banking divisions. The inspection findings indicate that, thanks to sustained, stringent regulatory efforts in recent years, most securities offices have placed considerable emphasis on establishing sound foundational internal control systems for their investment banking operations. The three‑line defense framework—comprising business units, quality control, and the internal review and compliance function—has generally operated effectively, and the overall quality of project execution has improved. However, a few offices still exhibit shortcomings in internal control oversight, with inadequate due diligence and verification procedures, particularly in bond underwriting projects, failing to fully meet the standards of diligence and responsibility.

In response to the issues identified during inspections, we will adhere to the principles of “penetrative supervision and full‑chain accountability,” as well as “dual penalties” targeting both institutions and individuals. We will focus on the “key few”—including senior company executives—and, based on the severity of each issue, implement measures in accordance with the law, categorized by type. For Kaiyuan Securities and Zhongyuan Securities, which have committed numerous violations of a serious nature, we have imposed an administrative regulatory measure suspending their corporate bond underwriting business for six months, requiring them to undertake comprehensive rectification and draw meaningful lessons from these shortcomings. With respect to 11 other offices, we have adopted tailored administrative regulatory measures—ranging from regulatory talks and orders to make corrections to the issuance of warning letters—depending on the gravity of the violations, and have mandated that they address specific deficiencies in due diligence and internal controls. At the same time, we have taken corresponding administrative regulatory actions—including regulatory talks, orders to make corrections, and the issuance of warning letters—against 43 individuals directly responsible or bearing managerial accountability. These include the companies’ principal officers, heads of investment‑banking operations, chief reviewers, heads of quality‑control departments, heads of business units, and members of project teams, and we have required the offices to pursue internal disciplinary accountability for the relevant personnel.

This round of on-site inspections has seen significant improvements over previous years in terms of coverage, the scope of accountability, and the severity of penalties. Moving forward, we will resolutely implement the spirit of the Third Plenary Session of the 20th CPC Central Committee, earnestly carry out the arrangements set forth in the new “Nine Measures for the Capital Market” and other “1+N” policy documents, and urge all market participants to draw lessons from past cases and use them as a catalyst for reform. We will continue to strengthen oversight of investment‑banking activities, promptly assess the effectiveness of our regulatory measures, and make ongoing refinements to our supervisory work. In doing so, we aim to help sponsoring institutions further enhance their professional standards, uphold the ethical底线 of integrity, and better fulfill the role of securities offices in serving the real economy and national strategies.

The China Securities Regulatory Commission convened a symposium bringing together experts, scholars, and media executives to study and implement the spirit of the Third Plenary Session of the 20th CPC Central Committee and further comprehensively deepen capital market reform.
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 a special symposium in Beijing on further comprehensively deepening capital market reform. At the event, he engaged in in-depth discussions with experts, scholars, and representatives of financial media, fully soliciting their views and suggestions.

During the symposium, participants unanimously agreed that, since the Central Politburo meeting on September 26, a package of targeted, additional policies has been rolled out in succession, sending a strong signal of renewed efforts to sustain the economy’s recovery and improvement. These measures have effectively bolstered investor confidence and market activity, while the resulting boost in stock market dynamism is expected to reinforce the positive feedback loop of “a vibrant financial sector driving a thriving economy.” Participants emphasized the importance of cherishing and nurturing the current favorable momentum by further deepening capital market reforms across the board, thereby unlocking greater market vitality and using concrete, tangible results to stabilize expectations and strengthen confidence. At the same time, attendees put forward specific recommendations for the next phase of comprehensive capital market reform, including: enhancing the inclusiveness, adaptability, and precision of capital market institutions; ensuring seamless implementation of regulatory frameworks at the “last mile”; facilitating the successful listing and M&A/ restructuring of more high‑quality technology offices; coordinating reforms on both the financing and investment sides; gradually normalizing IPOs; actively cultivating patient capital; and vigorously guiding medium- and long-term funds into the market. In addition, they called for a multi‑pronged approach to invigorate the capital market, steadfastly advancing reforms within the framework of the rule of law, further improving the capital market’s foundational institutional framework, refining and optimizing expectation management, strengthening investor education and services, and promoting rational, value‑oriented, and long‑term investing.

Wu Qing emphasized that the world today is undergoing a transformation unseen in a century, and China is at a critical juncture on its path toward Chinese-style modernization, while the capital market itself is at a pivotal stage of shifting toward high-quality development. He expressed the hope that experts, scholars, and financial media will earnestly uphold the principles of political integrity, people‑centeredness, and professionalism; proactively disseminate the spirit of the Third Plenary Session of the 20th CPC Central Committee; provide clear interpretations of the guiding principles of the CPC Central Politburo and the package of policies and measures; and objectively and rationally tell the stories of China’s economy and its capital market, thereby conveying confidence and positive energy. He also welcomed experts, scholars, and media reporters to promptly convey market concerns, offer constructive advice, and exercise oversight, working together to further deepen comprehensive reforms of the capital market and achieve high‑quality development.

The Shenzhen Stock Exchange’s “Chuangxianghui” hosted a special event dedicated to the hydrogen energy industry.
Supporting the green and low-carbon transformation of economic and social development.
The Third Plenary Session of the 20th CPC Central Committee stated that Chinese modernization is a model of harmonious coexistence between humanity and nature, requiring the refinement of the ecological civilization institutional framework and the improvement of mechanisms for green, low-carbon development. On October 18, with strong support from the Sichuan Provincial Party Committee and the provincial government, the Shenzhen Stock Exchange hosted the 19th “Chuangxianghui” event at its Western Base in Chengdu, Sichuan Province. The event focused on the development of the hydrogen energy industry, bringing together local government agencies and listed companies in related sectors—including Shudao Equipment, Hopu Shares, and Dongfang Electric—to discuss high-quality growth in the hydrogen economy, bolster technological self-reliance at a high level, advance the green transformation of the energy system, and foster new drivers of productivity.
The “Chuangxianghui” forum facilitated exchanges and dialogues on key topics including hydrogen‑energy industry policy planning, industrial layout and future development trends, pressing challenges and technological breakthroughs, business models and application scenarios, as well as the role of capital in driving industry growth. Guests offered diverse perspectives on the evolution of the hydrogen‑energy sector, shared best practices, experiences, and case studies of how listed companies have leveraged capital‑market instruments to achieve expansion and consolidation, and discussed the obstacles to industrialization and commercialization along with potential solutions.
Participants at the conference agreed that, against the backdrop of a new wave of global scientific and technological revolution and industrial transformation, hydrogen energy—characterized by its cleanliness, efficiency, and renewability—is increasingly emerging as a key enabler of the energy transition. It stands as a quintessential embodiment of new‑type productive forces and a critical driver in supporting the nation’s “dual carbon” goals and advancing sustainable development. The capital market can play an even more proactive role in fostering the growth of the hydrogen industry, further accelerating technological breakthroughs and their commercial deployment.
This event received strong support from the Sichuan Provincial Department of Economy and Information Technology and the Financial Office of the Provincial Party Committee. Government agencies, upstream and downstream enterprises in the industrial chain, leading research institutions, financial institutions, and other stakeholders gathered to build consensus, pool their efforts, and contribute to the high-quality development of the hydrogen energy industry and the regional economy.
Going forward, the Shenzhen Stock Exchange will thoroughly study and implement the spirit of the Third Plenary Session of the 20th CPC Central Committee and the Central Financial Work Conference, earnestly carry out the major strategic plans of the CPC Central Committee and the State Council, as well as the requirements set forth by the China Securities Regulatory Commission. Upholding the fundamental principle of serving the real economy, the Exchange will focus on key areas such as advanced manufacturing, the digital economy, and green, low‑carbon development, support high‑level scientific and technological self‑reliance and strength, and continue to build the “Chuangxianghui” brand. It will establish a new high ground for high‑quality development with distinctive Shenzhen characteristics, guide resources toward the field of scientific and technological innovation, promote the green transformation of economic and social development, and help foster new drivers and advantages for growth.

The 1-year and the 5-year-plus LPRs have both been cut by 25 basis points.
On October 21, the People’s Bank of China authorized the National Interbank Funding Center to announce that the 1-year LPR stands at 3.1%, and the LPR for maturities of five years and above is 3.6%, both down 25 basis points from the previous period. This marks the third LPR adjustment this year.
In February this year, the over‑5-year LPR was cut by 25 basis points; in July, both the 1-year and over‑5-year LPRs were lowered by 10 basis points each. Year-to-date, the 1-year LPR has fallen by a cumulative 35 basis points, while the over‑5-year LPR has declined by a total of 60 basis points.

The central bank has established a relending facility for share buybacks and additional share purchases to maintain the stable functioning of the capital market.
On October 17, the People’s Bank of China, the National Administration of Financial Regulation, and the China Securities Regulatory Commission jointly issued the “Notice on Matters Concerning the Establishment of a Relending Facility for Stock Repurchases and Additional Purchases.”
The Notice clarifies that a special re-lending facility for share buybacks and additional share purchases has been established to incentivize and guide financial institutions to extend loans to eligible listed companies and their major shareholders, thereby supporting their efforts to repurchase and increase holdings of listed‑company shares. The initial tranche of this re‑lending facility amounts to RMB 300 billion, with an annual interest rate of 1.75% and a one‑year term, which may be extended depending on circumstances. This policy applies to listed companies across all forms of ownership, emphasizing equal treatment for all types of listed offices. Twenty-one nationwide financial institutions, including the China Development Bank, will disburse loans in accordance with the policy to support share buybacks and additional share purchases by listed companies. Financial institutions will make independent decisions on whether to extend such loans, set appropriate loan terms, assume their own risks, and, in principle, maintain loan rates no higher than 2.25%.

Hong Kong: Promoting the listing of major mainland enterprises in Hong Kong and striving to secure more IPOs in the near term.
Hong Kong Special Administrative Region Chief Executive John Lee Ka-chiu delivered the 2024 Policy Address, outlining a number of measures to further enhance and optimize the securities market.
Specific measures include: (1) attracting new overseas capital: facilitating the listing of exchange-traded funds (ETFs) that track Hong Kong stock indices in the Middle East, thereby drawing local investors to allocate assets to Hong Kong equities; (2) encouraging corporate listings: leveraging the advantages of the Mainland–Hong Kong Stock Connect to attract international companies to list in Hong Kong, while also promoting the listing of large mainland enterprises in Hong Kong, with the aim of securing a greater number of landmark initial public offerings (IPOs) in the near term; (3) streamlining the listing approval process: the Securities and Futures Commission (SFC) and the Hong Kong Exchanges and Clearing (HKEX) will announce concrete steps to further optimize the IPO review and approval procedures, enhancing predictability in processing times; and (4) enhancing market efficiency: the SFC and HKEX will work to improve market efficiency and reduce trading costs, including reviewing margin‑deposit arrangements and refining margin and collateral requirements.

Shanghai Lingang: Building a High-Quality Equity Investment Hub and Deepening the QFLP Pilot Program
Recently, the Management Committee of the Lingang New Area in Shanghai issued the “Several Policies (Trial) of the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone on Supporting the Development of an Equity Investment Agglomeration Zone,” which will take effect on October 14, 2024, and remain in force until December 31, 2026.
The “Several Policies” outlines 15 support measures across three key areas, including the proposal to further advance pilot programs for Qualified Foreign Limited Partners (QFLP) and Qualified Domestic Limited Partners (QDLP), encouraging successfully established QFLP pilot enterprises to invest in cutting-edge and priority industries aligned with national policy priorities, and supporting eligible pilot enterprises in conducting cross-border two-way capital flows. For pilot institutions that have successfully commenced operations, a scale‑based reward of up to RMB 40 million will be granted, based on their approved quota.

Commercial & Corporate
Official definitions for terms such as “data resources” and “data assets” are slated to be released.
On October 21, the National Data Administration issued a public notice soliciting comments on the “Glossary of Terms in the Data Domain,” with a deadline for feedback set for November 20, 2024.
The Notice provides definitions for terms across 41 data-related domains. “Data” refers to any record of information in electronic or other forms. From different perspectives, data may manifest as raw data, derived data, data resources, data products, data assets, or data elements. “Data resources” are data that possess utility and constitute a new type of resource available for human use. “Data assets” are data resources that are legally owned or controlled by a specific entity, amenable to monetary measurement, and capable of generating direct or indirect economic benefits.

The National Data Administration plans to release the “Action Plan for the Development of a Trusted Data Space.”
The National Data Administration has issued a public notice soliciting comments on the “Action Plan for the Development of Trusted Data Spaces (2024–2028),” with the deadline for submitting feedback set for October 27.
The Action Plan sets forth that by 2028, breakthroughs will be achieved in the standardization, technological, ecosystem, and security frameworks of trusted data spaces; more than 100 trusted data spaces will be established; initiatives to build and enhance trusted data‑space capabilities will be deployed; efforts to cultivate and promote trusted data spaces will be launched; and foundational measures to underpin trusted data spaces will be advanced. The plan also specifies that active efforts will be made to develop key technical standards related to data exchange, access control, and data modeling, while undertaking research and development on trusted governance technologies such as access control, data sandboxes, smart contracts, privacy‑preserving computation, high‑performance cryptographic computing, and trusted execution environments. Furthermore, it calls for the establishment of comprehensive compliance‑management guidelines for trusted data spaces.

The Cybersecurity Standards Committee has issued the “Guidance on the Practice of Cybersecurity Standards” and the Administrative Measures for Participating Organizations in Standard Development.
On October 21, the Cybersecurity Standards Committee issued the “Notice on the Issuance of Two Regulatory Documents of the Cybersecurity Standards Committee: the Administrative Measures for the Implementation of the ‘Cybersecurity Standards Practice Guide’ and the Administrative Measures for Standard-Participating Organizations.”
Among them, the “Administrative Measures for Documents” consists of nine articles, stipulating that the copyright of the “Practice Guide” vests in the Secretariat of the Cybersecurity Standards Committee. Without the Secretariat’s written authorization, no part of the “Practice Guide” may be copied or translated in any manner.

The National Medical Products Administration has launched a pilot program to reform the segmented production of biological products.
The National Medical Products Administration has published the “Notice on Issuing the Pilot Work Plan for Segmented Production of Biological Products.”
The Notice clarifies that the pilot regions include provincial administrative areas designated by the CPC Central Committee and the State Council in their regional coordinated development strategies to explore the phased production of biological products, as well as provincial administrative areas where the biopharmaceutical industry is concentrated, there is a genuine project demand, and regulatory capacity for biological products is relatively strong. Holders of the pilot‑listed products must possess capabilities in independent R&D, quality management, risk prevention and control, and liability compensation; both the product holders and the contract manufacturing enterprises involved in the phased production must implement a unified quality management system. Contract manufacturing enterprises participating in the pilot program must have a robust pharmaceutical quality assurance system and at least three years of commercial-scale production experience with biological products. In principle, the pilot‑listed products should be innovative biological products, biologics urgently needed in clinical practice, or other biological products specified by the National Medical Products Administration, including multivalent vaccines, antibody‑based biologics, antibody‑drug conjugates, glucagon‑like peptide‑1 (GLP‑1)–based biologics, and insulin‑based biologics, among others.

The Ministry of Industry and Information Technology plans to issue eight mandatory national standards, including the “Safety Technical Requirements for Glass Used in Rail Vehicles.”
On October 21, the website of the Ministry of Industry and Information Technology published a notice soliciting public comments on eight draft mandatory national standards, including “Safety Technical Requirements for Glass Used in Rail Vehicles.” The deadline for submitting feedback is October 28.
This batch of mandatory national standards open for public comment primarily includes: “Safety Technical Requirements for Glass Used in Rail Vehicles,” “Safety and General Technical Specifications for Building Waterproofing Membranes,” “Fuel Consumption Limits for Passenger Cars,” “Occupant Protection in Side‑Impact Collisions of Motor Vehicles,” “Safety Requirements for Rear‑End Collisions of Passenger Cars,” “Safety Technical Specifications for Components of Ophthalmic and Optometric Products,” “Safety Technical Specifications for Finished Eyeglasses of Ophthalmic and Optometric Products,” and “General Technical Conditions for the Safety of Incense Products.”

The National Development and Reform Commission and other departments have issued three regulations related to civil air defense.
On October 21, the website of the National Development and Reform Commission published the “Administrative Measures for Civil Air Defense Protective Equipment,” the “Notice on Issuing the ‘Administrative Measures for the Inspection and Testing of Civil Air Defense Protective Equipment,’” and the “Notice on Issuing the ‘Administrative Measures for Scientific Research, Innovation, and Application‑Oriented Transformation in Civil Air Defense.’”
Among them, the Measures for the Administration of Civil Air Defense Protective Equipment comprise five chapters and thirty articles, stipulating that manufacturers of civil air defense protective equipment shall establish an effective quality management system to ensure that product quality, markings, and labels comply with relevant laws, regulations, and standard requirements. Furthermore, they are prohibited from manufacturing or selling civil air defense protective equipment that is not included in the Catalogue of Civil Air Defense Protective Equipment.

Two departments have issued the “Implementation Plan for the National-Level Service Industry Standardization Pilot (Smart Transportation Special Project).”
On October 21, the website of the Ministry of Transport issued the “Notice on Issuing the Implementation Plan for the National-Level Service Industry Standardization Pilot (Smart Transportation Special Project) and Launching the Call for Proposals for 2024 Pilot Projects.”
In accordance with the relevant requirements of the Plan, a call for pilot projects will be launched in 2024 in the areas of smart logistics, smart mobility, and related new infrastructure. Enterprises and institutions that are legally incorporated, possess the requisite technical capabilities and conditions, and have not experienced any major quality, safety, or environmental incidents in the past three years may submit their application materials as required.

The State Administration for Market Regulation convened an administrative guidance meeting on food safety for new business forms and models.
Recently, the State Administration for Market Regulation convened an administrative guidance meeting in Beijing on food safety in new business forms and models, outlining plans to launch an initiative aimed at leveraging quality and safety to foster the sound development of the platform economy and safeguard food‑consumption safety during the “Double 11” shopping festival.
The meeting called for fresh‑food e‑commerce, food delivery services, livestream‑shopping, and other emerging food‑related business models to officely uphold food safety awareness, safeguard the bottom line of food safety, and treat food safety as the cornerstone and lifeline of corporate development. It also emphasized the need to rigorously fulfill principal responsibility for food safety, strengthen internal quality‑management systems and measures, and ensure lawful and compliant operations. Furthermore, businesses should adopt a quality‑first philosophy, leveraging high‑quality product offerings to enhance consumer experience and inject new momentum into economic growth.

The Party Committee of the State-owned Assets Supervision and Administration Commission has arranged to launch the second round of inspections for 2024.
The Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council convened the mobilization and deployment meeting for the second round of inspections in 2024, outlining plans and assigning tasks for this year’s second inspection cycle.
In accordance with the deployment of the Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council, the second round of inspections in 2024 will conduct routine oversight of the Party committees of six enterprises, including China Chengtong Holding Group Co., Ltd., China Nonferrous Mining Group Co., Ltd., Xinxing Jihua Group Co., Ltd., China General Nuclear Power Group Co., Ltd., OCT Group Co., Ltd., and China Inspection and Certification (Group) Co., Ltd.

The SWIFT International Banking Operations Conference was held in Beijing for the first time.
On October 21, the 2024 Annual Conference of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) opened in Beijing.
This year’s annual conference focused on “The Future of Finance: Collaboration and Interconnectivity,” along with related topics, fostering in-depth discussions and professional exchanges. The agenda was broad, covering payments, digital assets, artificial intelligence, and sustainable finance, among others. An exhibition area was also featured, hosting 133 financial and third-party institutions, including 114 foreign‑invested offices and 19 Chinese‑invested entities, with participation from global systemically important financial institutions such as JPMorgan Chase, Citibank, BNP Paribas, and the Industrial and Commercial Bank of China.

Guangdong has issued an action plan to accelerate the innovative development of the optical chip industry.
On October 21, the Guangdong Provincial Government website published the “Notice on Issuing the Action Plan for Accelerating Innovative Development of the Optical Chip Industry in Guangdong Province (2024–2030).”
The Action Plan outlines the following key tasks: (1) Achieve breakthroughs in critical industrial technologies; (2) Accelerate the transition from pilot-scale testing to commercialization; (3) Establish an innovation platform system; (4) Promote the clustered development of industries; and (5) Vigorously cultivate leading enterprises. It also identifies the following priority projects: (1) A project to tackle key materials and equipment; (2) A project to strengthen and supplement industrial supply chains; (3) A project to demonstrate and apply core products; and (4) A project to foster cutting-edge technologies and their industrial applications.

The CPC Central Committee and the State Council have issued a document to deepen reform of the industrial workforce development.
On October 21, the Chinese Government Website published the “Opinions of the CPC Central Committee and the State Council on Deepening the Reform of Building the Industrial Workforce.”
The “Opinions” comprise nine areas and twenty-seven specific measures, clearly stipulating the need to improve the democratic management system in enterprises and public institutions, with the workers’ congress as its fundamental form. Major matters that directly affect the vital interests of industrial workers must be deliberated and approved by the workers’ congress in accordance with laws and the articles of association. The labor contract system is to be fully implemented, and collective bargaining and the collective contract system are to be advanced. Tripartite committees at all levels for coordinating labor relations are to be established and improved. Enterprises are required to assume responsibility for cultivating industrial workers; they shall, in accordance with regulations, allocate and utilize employee education funds in full, ensuring that at least 60% of such funds are earmarked for the education and training of frontline workers.

The General Secretary of the CPC Central Committee has issued important instructions on the work of national-level economic and technological development zones.
Recently, Xi Jinping, General Secretary of the CPC Central Committee, President of the People’s Republic of China, and Chairman of the Central Military Commission, issued important instructions on the work of national-level economic and technological development zones.
He emphasized that national-level economic and technological development zones must uphold the new development philosophy, remain officely focused on advancing Chinese modernization, continuously unleash innovation and endogenous momentum, and actively participate in shaping the new development paradigm, using high-standard opening-up to drive deeper reforms and high-quality development. They should boldly take the lead in reform and opening-up, further improve the institutional mechanisms for high-standard opening-up; proactively engage in high-quality joint efforts to build the Belt and Road Initiative, expand international cooperation, innovate approaches to investment promotion, and help build the “Invest in China” brand; consolidate and upgrade the industrial foundation of advanced manufacturing, promote the high-end, green, and digital transformation of industries, foster digital and future-oriented industries, and develop new‑type productive forces tailored to local conditions.

The Regulations on the Export Control of Dual-Use Items have been officially in effect since December.
The Chinese Government Website has published the Regulations of the People’s Republic of China on the Export Control of Dual-Use Items.
The Regulations comprise six chapters and fifty articles. In the chapter dedicated to trade facilitation measures, they abolish the registration system for exporters of dual-use items, enhance the transparency and standardization of export control policies for such items, clarify the factors and procedural requirements for formulating export control policies, and elaborate on the facilitative measures for licensing the export of dual-use items, along with their applicable conditions and procedures. In the chapter on various systems and measures for export control, they specify the procedures and requirements for establishing and adjusting control lists and for imposing temporary controls; they mandate licensing for the export of dual-use items and set forth the conditions and procedures for submitting license applications; they strengthen the management of end-users and end-uses of dual-use items; they refine the control list regime; they establish a watchlist system; and they improve end-to-end control measures.

The CPC Central Committee and the State Council have issued a special guideline aimed at addressing the issue of overdue payments to enterprises.
Recently, the General Office of the CPC Central Committee and the General Office of the State Council issued the “Opinions on Addressing the Issue of Delinquent Payments to Enterprises,” laying out a comprehensive plan to advance efforts to resolve outstanding payments owed to businesses.
The Opinions call for the improvement of the legal and regulatory framework and judicial mechanisms for settling outstanding payments owed to enterprises. They also emphasize strengthening oversight of government-invested projects and project funding, conducting regular checks on fund availability, and tracking disbursement progress. Furthermore, the system for settling construction contract payments should be refined, and supervision of government procurement payments should be enhanced. Mechanisms for preventing and resolving cases of large enterprises defaulting on payments to small and medium-sized enterprises must be improved, with enforcement and monitoring strengthened. State-owned enterprises are urged to standardize and optimize their payment management systems. Finally, the operational mechanisms for handling complaints related to overdue payments to SMEs should be streamlined, among other measures.

Three departments have jointly issued the “Guidelines on Evidence in Handling Criminal Cases Involving Environmental Pollution.”
Recently, the Supreme People’s Procuratorate, the Ministry of Public Security, and the Ministry of Ecology and Environment jointly issued the “Guidelines on Evidence Collection in Cases of Environmental Pollution Crimes.” The Guidelines provide a structured evidence checklist to guide public security organs in conducting evidence collection in a standardized and efficient manner, while further clarifying the key areas and priorities for review by the procuratorial organs, thereby continuously enhancing the quality and effectiveness of handling environmental pollution criminal cases.
The Guidelines clarify that due attention should be given to collecting and scrutinizing evidence pertaining to the objective elements of the offense, identifying the specific types of pollutants, and establishing that the suspect engaged in acts of discharge, dumping, or disposal that fall within the categories of “serious environmental pollution,” “serious circumstances,” or “particularly serious circumstances” as enumerated in the Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases Involving Environmental Pollution. At the same time, it emphasizes the need to carefully assess the causal link between environmental pollution and the acts of discharge, dumping, or disposal.

The Ministry of Housing and Urban–Rural Development plans to issue the national standard “Standard for Quantity Calculation in Building Repair Projects.”
On October 21, the website of the Ministry of Housing and Urban–Rural Development published the “Notice on Soliciting Public Comments on the National Standard ‘Standard for Quantity Calculation of Building Repair Projects (Draft for Comments)’,” with a deadline for submitting feedback set for November 15.
The Standard applies to the contracting and execution phases of repair works for existing buildings and their ancillary facilities, as well as to the measurement of works and the preparation of quantity take‑off schedules. It is formulated to standardize measurement practices in building‑repair projects and to unify the rules for calculating quantities and the methods for preparing quantity take‑off schedules.

The CPC Central Committee and the State Council have issued guidelines to accelerate the high-quality development of doctoral education.
Recently, the General Office of the CPC Central Committee and the General Office of the State Council issued the “Opinions on Accelerating the High-Quality Development of Doctoral Education,” laying out a systematic plan for further deepening the comprehensive reform of doctoral education.
The “Opinions” state that it is necessary to refine the disciplinary and professional system and strengthen forward-looking planning for cultivating talent in line with national strategic priorities. This includes optimizing the structure of disciplines and specialties, improving mechanisms for the timely establishment, development, and adjustment of programs that respond to national needs, bolstering the development of degree‑granting sites in science, technology, agriculture, medicine, as well as in fundamental, emerging, and interdisciplinary fields, increasing the proportion of doctoral professional degree‑granting sites, accelerating the development of disciplines and specialties in key areas, and reinforcing the integrated and cross‑disciplinary advancement of academic fields. Furthermore, it calls for reshaping the components of the training process to comprehensively enhance the quality of independently cultivated talent, among other measures.

The National Development and Reform Commission plans to issue the “Catalogue of Products Subject to Energy Efficiency Labeling” and related implementation rules.
The website of the National Development and Reform Commission has published an announcement soliciting public comments on the “Notice on Issuing the ‘Catalogue of Products Subject to Energy Efficiency Labeling in the People’s Republic of China (17th Batch)’ and Related Implementation Rules (Draft for Comments).” The deadline for submitting feedback is November 17.
The Notice clarifies that the 17th batch of products subject to the energy efficiency labeling scheme comprises a total of 12 product categories: tower and rack‑mount servers, chilled water (heat pump) units, water‑source and ground‑source heat pump units, lithium bromide absorption chillers (and hot water units), air‑source heat pump (chilled water) units for low ambient temperatures, power transformers, self‑ballasted fluorescent lamps for general lighting, rice cookers, positive displacement air compressors, household and similar‑use microwave ovens, household and similar‑use AC ventilation fans, and commercial refrigerators with built‑in condensing units.

The Beijing Municipal Human Resources and Social Security Bureau has issued a document to establish an additional professional title evaluation category for financial technology.
The Beijing Municipal Human Resources and Social Security Bureau has published the “Notice on Adding a Professional Title Evaluation Specialty in Financial Technology.”
The Notice comprises two parts: first, the “Provisional Measures for the Evaluation of Professional Titles in Financial Technology”; and second, the “Standard Criteria for Applying for Professional Titles in Financial Technology.” Specifically, it covers the scope of application, the hierarchical structure and professional specializations, the evaluation procedures, the composition of the evaluation committee, other relevant matters, and the criteria for application.

Taxation
Railway passenger services will promote the use of fully digital electronic invoices.
— The “paperless” railway passenger ticketing system brings multiple benefits.
To implement the requirements of the “Opinions on Further Deepening Tax Collection and Administration Reform,” issued by the General Office of the CPC Central Committee and the General Office of the State Council, which call for “orderly advancing the electronic invoicing of invoices in sectors such as railways and civil aviation,” the State Taxation Administration, the Ministry of Finance, and China Railway Corporation today jointly issued an announcement stating that, effective November 1, 2024, fully digital electronic invoices—electronic invoices (railway e‑tickets)—will be rolled out across China’s railway passenger transport sector.
In the initial phase, the State Taxation Administration and China Railway Corporation worked closely together to complete the integration and upgrade of the railway invoice digitization information system. Following a pilot program, the system has operated smoothly and is now ready for nationwide deployment. Once fully digital electronic invoices are rolled out in the railway passenger transport sector, they will reduce invoice‑related costs, enhance the efficiency of invoice management and usage, and meet the growing demand of travelers for convenient access to electronic invoices, including railway e‑tickets.
The issuance, delivery, and use of electronic invoices (railway e‑tickets) will bring multiple benefits. For passengers, the most significant change is that they no longer need to go to railway stations, ticket agencies, or self-service kiosks to print “railway tickets (paper reimbursement vouchers),” making travel more convenient. For organizations, finance staff can leverage electronic invoices (railway e‑tickets) to conduct paperless processes such as expense reimbursement, accounting entry, archiving, and storage, thereby advancing the digital transformation of related operations and enabling online processing. As a VAT credit‑eligible document, organizations can log in to the electronic invoice service platform to view the corresponding VAT amount for each electronic invoice (railway e‑ticket) and claim deductions as prescribed, eliminating the need to perform calculations based on the total price and reducing administrative workload. Moreover, with the substantial decline in the use of paper railway tickets (reimbursement vouchers), railway transport enterprises will also see significant reductions in costs associated with printing tickets and maintaining self-service terminals.
Li Xuhong, vice president and professor at the National Accounting Institute in Beijing, stated that compared with the previous invoice‑issuing methods, fully digitized electronic invoices offer a “one‑stop” invoicing service, greatly facilitating both travelers and organizations. For organizations, this system supports integration with accounting and financial management information systems, streamlining the cumbersome processes associated with paper‑based invoice management and enhancing overall operational efficiency.
The announcement provides clarifications on the basic contents of electronic invoices (railway e‑tickets), the invoice numbering and coding rules, and procedures for passengers and organizations to query, verify, download, and use such documents. According to the announcement, upon completion of a journey or after paying refund or rebooking fees, passengers may obtain, query, download, and print electronic invoices (railway e‑tickets) through the 12306 railway platform—both its website and mobile app. Organizations may either use their tax digital accounts to query, verify, download, print, and conoffice the intended use of electronic invoices (railway e‑tickets), or verify them via the National VAT Invoice Verification Platform. For organizations that are general VAT taxpayers, electronic invoices (railway e‑tickets) serve as VAT credit notes, and the input VAT amount shall be determined in accordance with current regulations.
It is worth noting that, to facilitate passengers and organizations, the railway passenger transport sector has established a transitional period for the full-scale implementation of digital electronic invoices, which will remain in effect until September 30, 2025. During this transition period, both paper and electronic invoices will coexist: passengers may continue to use paper railway tickets (paper reimbursement vouchers) for expense reimbursement, and organizations may also record such expenses on their books using these paper tickets, thereby calculating input VAT deductions in accordance with applicable regulations.
Railways are the major transportation arteries connecting cities, and rail transport is an essential mode of travel for the public. The full-scale implementation of digital electronic invoices in passenger rail services will further advance the digitalization and intelligentization of railway transport, providing travelers and organizations with nationwide, standardized, reliable, secure, and convenient services.
An official from the Tax Collection and Management and Science & Technology Development Department of the State Taxation Administration stated that the tax authorities will collaborate with China Railway Group to develop a series of guidance materials, helping travelers understand the process for issuing electronic invoices (railway e‑tickets), and will organize relevant training and support to make invoicing simpler and enhance the overall passenger experience.
Relevant officials from the tax and railway authorities stated that they welcome feedback and suggestions from passengers on the use of electronic invoices (railway e‑tickets), and that the relevant departments will continue to refine and enhance these services to continually improve the user experience.

LITIGATION & ARBITRATION
The Supreme People’s Procuratorate has released a typical case involving volunteer members of the democratic parties who assisted in handling public-interest litigation related to environmental protection along the Yangtze River.
On October 22, the Supreme People’s Procuratorate website published the “Notice on Issuing the Typical Cases of Public Interest Litigation Involving Volunteer Participation by Democratic Parties under the ‘Yixin Weigong’ Initiative in Supporting the Protection of the Yangtze River’s Ecological Environment.”
This batch of typical cases comprises 11 matters, with volunteers representing eight democratic parties—the Revolutionary Committee of the Chinese Kuomintang, the China Democratic League, the China National Democratic Construction Association, the China Association for Promoting Democracy, the China Peasants and Workers Democratic Party, the China Zhi Gong Party, the Jiusan Society, and the Taiwan Democratic Self-Government League—as well as non-affiliated individuals. The cases cover areas such as urban sewage discharge management, protection of the Yangtze River tidal flats, and air pollution control. During the investigation and prosecution process, the procuratorial organs have leveraged the specialized expertise and technical resources of volunteers from these political parties to conduct lead assessments and evidence collection, thereby facilitating the swift ascertainment of the facts, the accurate determination of public interest harm, and the effective implementation of remediation and evaluation measures. This approach has helped establish a comprehensive new model of performance characterized by “procuratorial oversight plus democratic oversight.”

Three departments have jointly issued the “Guidelines on Evidence in Handling Criminal Cases Involving Environmental Pollution.”
Recently, the Supreme People’s Procuratorate, the Ministry of Public Security, and the Ministry of Ecology and Environment jointly issued the “Guidelines on Evidence Collection in Cases of Environmental Pollution Crimes.” The Guidelines provide a structured evidence checklist to guide public security organs in conducting evidence collection in a standardized and efficient manner, while further clarifying the key areas and priorities for review by the procuratorial organs, thereby continuously enhancing the quality and effectiveness of handling environmental pollution criminal cases.
The Guidelines clarify that due attention should be given to collecting and scrutinizing evidence pertaining to the objective elements of the offense, identifying the specific types of pollutants, and establishing that the suspect engaged in acts of discharge, dumping, or disposal that fall within the categories of “serious environmental pollution,” “serious circumstances,” or “particularly serious circumstances” as enumerated in the Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases Involving Environmental Pollution. At the same time, it emphasizes the need to carefully assess the causal link between environmental pollution and the acts of discharge, dumping, or disposal.

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