JC Master Legal News Issue 1128

Key Takeaways for This Issue

The National Administration of Financial Regulation has issued a document to encourage non-bank financial institutions to support equipment upgrades.
The website of the National Administration of Financial Regulation has issued the “Notice from the General Office of the National Administration of Financial Regulation on Promoting Non-Bank Financial Institutions to Support the Large-Scale Equipment Upgrade and Consumer Goods Trade-In Initiative,” outlining fifteen measures across three key areas.
The National Administration of Financial Regulation has issued a document to strengthen the management of internet applications in the banking and insurance sectors.
The National Administration of Financial Regulation has issued the “Notice on Strengthening the Management of Mobile Internet Applications in the Banking and Insurance Sectors,” mandating comprehensive lifecycle management of mobile applications.
State Council Executive Meeting: Support domestic and overseas listings of technology‑based enterprises; vigorously develop the equity transfer and M&A markets.
On September 18, the Premier of the State Council presided over an executive meeting of the State Council to deliberate measures for promoting the development of venture capital and to review and adopt the Draft Regulations of the People’s Republic of China on Export Control of Dual-Use Items, among other matters.
Public Consultation on the Measures for the Protection of State-Owned Grain and Oil Storage and Logistics Facilities
On September 18, the National Development and Reform Commission issued a notice soliciting public comments on the “Measures for the Protection of State-Owned Grain and Oil Storage and Logistics Facilities (Draft for Public Comment),” with the deadline for submitting feedback set for October 17.
Finance & Capital Markets
The China Securities Regulatory Commission has issued the financial industry standard “Coding Rules for Information Disclosure Documents of Securities Issuers.”
Recently, the China Securities Regulatory Commission issued the financial industry standard “Coding Rules for Information Disclosure Documents of Securities Issuers,” which shall take effect from the date of its promulgation.

The Financial Industry Standard “Coding Rules for Securities Issuer Disclosure Documents” sets forth the fundamental principles, coding methods, coding units, and registration service requirements for the coding of securities issuer disclosure documents, and provides a foundational metadata table for such documents. The promulgation and implementation of this standard offers a practical and feasible document‑coding framework for securities issuers, helping to reduce industry‑wide information‑utilization costs, facilitate efficient information interconnection and utilization, and lay a solid foundation for building a high‑quality digital disclosure system.

Going forward, the China Securities Regulatory Commission will continue to advance the informatization and digitalization of the capital market, prioritize the development of foundational standards, promote the formulation of standards in common‑use areas, and steadily strengthen the technological underpinnings of regulatory oversight.

Adopting a multi-pronged approach to invigorate the M&A and restructuring market, the Shanghai Stock Exchange has released the “Comprehensive Guide to Listed Companies’ M&A and Restructuring Rules, Policies, and Case Studies.”
Mergers and acquisitions (M&A) and corporate restructuring are crucial mechanisms for achieving industrial consolidation and transformation, optimizing resource allocation, and supporting listed companies in attaining high-quality development. They also serve as an effective means of fostering and advancing new‑type productive forces under the current evolving circumstances. To better leverage the capital market’s role as the primary channel for M&A and restructuring, invigorate market dynamism, and help listed companies and other market participants understand the relevant rules and align with the latest regulatory guidance, the Shanghai Stock Exchange has compiled and publicly released the “Comprehensive Guide to Listed Company M&A and Restructuring: Rules, Policies, and Case Studies,” thereby facilitating the planning and execution of such transactions.

The handbook is divided into three parts: first, an overview of M&A and restructuring regulations, covering the principal regulatory frameworks governing these activities; second, the latest policy directions on M&A and restructuring since the full implementation of the registration-based system in February 2023, reflecting strong support for high-quality M&A and restructuring by listed companies; and third, a focus on issues of broad market concern—such as valuation and pricing, and performance commitments—featuring a curated selection of representative cases compiled from publicly available information.

When planning, implementing, and disclosing matters related to mergers, acquisitions, and restructurings, listed companies shall comply with applicable laws and regulations, self-regulatory rules, and other relevant normative documents, as well as the formal opinions issued by the regulatory authorities.

The National Administration of Financial Regulation has issued a document to encourage non-bank financial institutions to support equipment upgrades.
On September 14, the website of the National Administration of Financial Regulation issued the “Notice from the General Office of the National Administration of Financial Regulation on Promoting Non-Bank Financial Institutions to Support the Large-Scale Equipment Upgrade and Consumer Goods Trade-In Initiative,” outlining fifteen measures across three key areas.
The Notice calls for strengthening financial support by encouraging the use of financial leasing to facilitate equipment upgrades and technological renovations in key industries, leveraging the distinctive functions of finance companies to support group clients in upgrading their equipment and undertaking technological transformations. It also urges auto finance companies and finance companies engaged in auto‑finance business to increase financing support for municipal transportation enterprises. In addition, the Notice proposes bolstering regulatory policy support and establishing a positive incentive mechanism: for non‑bank financial institutions that actively implement relevant policies and achieve notable results, the respective financial regulatory authorities may award appropriate additional points in relevant assessment criteria during regulatory rating exercises.

The National Administration of Financial Regulation has issued a document to strengthen the management of internet applications in the banking and insurance sectors.
On September 14, the National Administration of Financial Regulation issued the “Notice on Strengthening the Management of Mobile Internet Applications in the Banking and Insurance Sectors,” mandating comprehensive lifecycle management of mobile applications.
The Notice sets forth 18 operational requirements across four key areas. First, it calls for strengthened overall coordination by requiring financial institutions to designate a lead department for mobile application management, establish a mobile application registry, refine admission and exit mechanisms, and cap the number of mobile applications. Second, it emphasizes end-to-end lifecycle management, mandating that financial institutions standardize processes such as requirement analysis, design and development, testing and validation, app store submission and release, and ongoing monitoring and operation, while reinforcing compatibility and adaptability between mobile applications and their operating environments. Third, it underscores the implementation of risk management responsibilities, requiring financial institutions to comply with regulatory requirements related to mobile application filing, cybersecurity, data security, outsourcing management, business continuity, and personal information protection. Fourth, it strengthens oversight and supervision, directing all levels of the Financial Regulatory Administration’s branch institutions to intensify their regulatory efforts on mobile applications.

State Council Executive Meeting: Support domestic and overseas listings of technology‑based enterprises; vigorously develop the equity transfer and M&A markets.
On September 18, the Premier of the State Council presided over an executive meeting of the State Council to deliberate measures for promoting the development of venture capital and to review and adopt the Draft Regulations of the People’s Republic of China on Export Control of Dual-Use Items, among other matters.
The meeting emphasized the need to promptly address bottlenecks and obstacles across all stages of the venture capital cycle—fundraising, investment, management, and exit—while supporting eligible technology offices in pursuing domestic and overseas listings. It called for robust development of equity transfer and M&A markets, the rollout of pilot programs for stock‑based asset distribution, and encouragement of private capital to establish market‑oriented M&A fund‑of‑funds or secondary‑market venture capital funds. Furthermore, it urged state‑owned capital to assume a more responsible role as long‑term, patient capital, and to refine relevant policies and measures governing state‑funded investments, performance evaluation, tolerance of error, and exit strategies. Finally, the meeting underscored the importance of strengthening the institutional framework for the sound development of venture capital, implementing key measures of capital market reform, and enhancing the overall functionality of the capital market.

Commercial & Corporate
The State Council has in principle approved the “Nanjing Municipal Territorial Spatial Master Plan.”
On September 18, the Chinese Government Website published the “Reply on the Nanjing Municipal Land and Space Master Plan (2021–2035).”
The Approval Document explicitly states that the State Council, in principle, approves the “Nanjing Municipal Territorial Spatial Master Plan (2021–2035)” as reviewed and endorsed by the Ministry of Natural Resources. It calls for supporting the development of a two-way open hub that connects east to west, deepening coordinated and collaborative development with cities such as Shanghai, Hangzhou, and Hefei, and strengthening inter-provincial coordination in the development, protection, and utilization of territorial space within the Nanjing Metropolitan Area. Furthermore, it emphasizes aligning industrial layout, integrated transportation, infrastructure provision, and land use; prioritizing the spatial needs of scientific and technological innovation, advanced manufacturing, and modern services; and enhancing the global influence of industrial and technological innovation, among other measures.

From January to August, the nationwide actual utilization of foreign investment fell 31.5% year on year.
On September 14, the Ministry of Commerce released data showing that from January to August 2024, 36,968 new foreign-invested enterprises were established nationwide, up 11.5% year on year; meanwhile, the actual utilized foreign capital totaled RMB 580.19 billion, down 31.5% compared with the same period last year.
By sector, the manufacturing industry attracted RMB 164.1 billion in actual foreign investment, while the services sector drew RMB 402.22 billion. Among these, high‑tech manufacturing recorded RMB 72.14 billion in actual foreign investment. Specifically, the medical instruments and equipment manufacturing sector, the professional technical services sector, and the computer and office equipment manufacturing sector saw increases of 77.8%, 43.4%, and 33.9%, respectively, in actual foreign investment.

The Ministry of Industry and Information Technology has publicly announced 19 industry standards for the telecommunications sector.
On September 18, the website of the Ministry of Industry and Information Technology published a public notice regarding the submission for approval of 19 industry standards in the telecommunications sector, with a deadline of October 25, 2024.
The industry standards announced in this batch primarily include: “Zero Trust Architecture for Cloud Computing—Part 4: Requirements for Data Protection Capabilities”; “Implementation Guide for Security Level Protection of Telecommunications Networks and the Internet”; “Implementation Requirements for Disaster Backup and Recovery of Telecommunications Networks and the Internet”; “Security Protection Requirements for Mobile Communication Networks”; “Security Protection Testing Requirements for Mobile Communication Networks”; “Evaluation Criteria for Third-Party Security Service Capabilities of Telecommunications Networks and the Internet”; and “Technical Requirements for the Monitoring and Handling Interface of Impersonation Applications on the Mobile Internet.”

The Ministry of Natural Resources has issued 27 industry standards, including the “National Island Code.”
Recently, the Ministry of Natural Resources released 27 industry standards, including the “National Island Code,” which will take effect on December 1, 2024.
The industry standards released this time include: “Standard System for Marine Ecological Protection and Restoration,” “Technical Specification for Evaluating the Effectiveness of Marine Ecological Restoration,” “Technical Guidelines for Island Ecological Restoration—Vegetation Restoration,” “Technical Procedures for Conducting Baseline Ecological Surveys of Uninhabited Islands,” “Technical Guidelines for Assessing the Ecological Vulnerability of Islands,” “Technical Guidelines for Surveying and Assessing the Current Status of Coastal Ecosystems,” “Marine Ecological Classification,” and “Specifications for Polar Environmental Monitoring,” among others.

The Ministry of Natural Resources has released 31 industry standards, including the “Test Method for Identifying Contaminants in Reverse Osmosis Membranes.”
Recently, the website of the Ministry of Natural Resources published the “Announcement on the Release of 31 Industry Standards, Including the ‘Test Method for Identifying Contaminants in Reverse Osmosis Membranes.’”
This batch of newly released industry standards primarily includes the “Test Method for Identifying Fouling Substances on Reverse Osmosis Membranes,” the “General Principles for Water Footprint Assessment of Desalination Systems,” the “Requirements for Water Footprint Accounting in Desalination Systems,” the “Method for Monitoring Salt Deposition from Droplets in Seawater Cooling Towers,” the “Hollow‑Fiber Nanofiltration Membrane Module,” the “Dish‑Tube Type Reverse Osmosis Membrane Module,” the “Dish‑Tube Type Reverse Osmosis Membrane Bag,” and the “Polytetrafluoroethylene Hollow‑Fiber Microporous Membrane,” among others.

Ministry of Natural Resources: Launching the 2024 National Land Use Change Survey
On September 14, the Ministry of Natural Resources issued the “Notice on Conducting the 2024 National Land Change Survey.”
The Notice stipulates that, using December 31, 2024, as the reference date, dynamic, full‑coverage remote sensing monitoring of land use will be conducted to extract information on land‑use changes. By integrating existing data and drawing on various monitoring and regulatory efforts—such as natural resource monitoring, surveys of forests, grasslands, wetlands, and desertification, land‑use classification alignment, routine updates, and natural resource management—standardized base maps will be produced. Field investigations and evidence collection will then be carried out to comprehensively document annual changes in land‑use categories, areas, attributes, and related thematic layers. Finally, county‑level land‑use databases will be updated, yielding the annual national land‑use change survey results.

The Ministry of Ecology and Environment plans to issue the “Regulatory Requirements for the Grading and Classification of Fusion Facilities.”
The website of the Ministry of Ecology and Environment has published the “Notice on Public Solicitation of Comments on the ‘Regulatory Requirements for the Classification and Grading of Fusion Facilities (Draft for Comments)’,” with the deadline for submitting feedback set for October 12.
The plan divides fusion facilities into three phases: plasma physics experimental facilities, deuterium–tritium fusion experimental facilities, and fusion energy application facilities. Specifically, plasma physics experimental facilities are regulated as radiation devices, while deuterium–tritium fusion experimental facilities are subject to regulation under a “radiation device plus” framework. For the time being, no specific safety requirements will be established for fusion energy application facilities.

Two departments have issued a document to provide rewards for whistleblowers within food production and operation enterprises.
On September 19, the website of the State Administration for Market Regulation published the “Notice on Rewarding Whistleblowers within Food Production and Operation Enterprises.”
The Notice comprises twelve provisions, stipulating that when an internal whistleblower provides the market supervision and administration authorities with leads on food safety and quality violations that are highly concealed, pose significant harm, or have a broad social impact, or when such information helps prevent serious food safety and quality violations, eliminate major food safety hazards, or assist in investigating and prosecuting major cases of food safety and quality-related crimes, the competent market supervision and administration authority, with the prior approval of the financial department of the people’s government at the same level, may appropriately increase the reward amount.

The State Administration for Market Regulation has unveiled a plan to accelerate the high-standard opening-up of certification and accreditation.
On September 14, the website of the State Administration for Market Regulation published the “Action Plan for Accelerating High-Level Opening-Up in Certification and Accreditation (2024–2030).”
The Plan proposes to improve and refine the international cooperation framework for certification and accreditation, comprehensively enhance the effectiveness of such cooperation, promote synergistic development among certification and accreditation, standards, and industry, elevate the international standing of the certification and accreditation sector, and strengthen the institutional underpinnings for high‑level opening-up in this field, among other measures.

A symposium on the electric vehicle industry chain between China and Europe was held.
On September 18, Minister of Commerce Wang Wentao chaired a symposium on the China–EU electric vehicle industry chain in Brussels, Belgium. Nearly thirty representatives from Chinese and European companies in the electric vehicle, power battery, and component sectors, as well as heads of relevant industry associations, attended the meeting.
Participants exchanged views on appropriately resolving the EU’s anti-subsidy investigation into Chinese electric vehicles and on further deepening China–EU cooperation in the EV industry chain. Wang Wentao stated that, in response to the EU’s anti-subsidy probe into Chinese EVs, China will pursue negotiations and consultations to a final resolution. The EU’s investigation has raised widespread doubts about its reasonableness, compliance, and impartiality. Such measures not only risk impeding China–EU automotive cooperation and undermining Chinese companies’ confidence in investing in Europe, but they will also seriously undermine global efforts to address climate change and gravely damage the multilateral trading order based on WTO rules.

ASEAN says the free trade agreement is boosting regional trade growth.
On September 16, Lao Minister of Industry and Commerce Malaythong Khammasith stated in Vientiane, while presiding over the 56th ASEAN Economic Ministers’ Meeting and the 38th ASEAN Free Trade Area Council Meeting, that ASEAN has eliminated tariffs on 98.6% of tariff lines and continues to enhance the “ASEAN Single Window” tax‑notification service system, thereby reducing trade costs and fostering regional business development. These measures have spurred a significant expansion in trade; in 2023, intra‑ASEAN trade reached US$759 billion, accounting for 21.5% of the bloc’s total trade volume.
To expand and deepen regional trade and further advance trade integration, the meeting will review and adopt the report of the ASEAN Senior Officials’ Committee on the Economy, the report of the ASEAN Trade Agreement Upgrading Negotiating Committee, and the Joint Statement of the 38th ASEAN Free Trade Area Council.

The Ministry of Industry and Information Technology plans to draft a mandatory national standard titled “In-Vehicle Wireless Radio Reception System.”
On September 18, the website of the Ministry of Industry and Information Technology published a notice soliciting public comments on the draft plan for the development and revision of the mandatory national standard “In-Vehicle Wireless Broadcasting Reception System.” The deadline for submitting feedback is October 25.
The Standard applies to in-vehicle wireless broadcast reception systems and covers, as its main technical content, a testing and evaluation framework that specifies technical requirements and test methods for terminal and antenna functionality, performance, automotive‑grade environmental reliability, electromagnetic compatibility, and other aspects.

Nine departments have jointly issued guidelines on the development of smart ports.
Recently, the General Administration of Customs, the National Development and Reform Commission, and seven other departments jointly issued the “Guiding Opinions on the Construction of Smart Ports.”
The “Opinions” outline six areas of development, including the intelligent upgrading of port facilities and equipment, the digital transformation of port operations and management, the precision‑driven enhancement of coordinated port‑side supervision, the widespread provision of integrated port services, the institutionalization of regional cooperation mechanisms at ports, and the establishment of a digital infrastructure for smart ports. They also emphasize integrating resources in digital trade, digital logistics, digital finance, and other sectors to improve cross‑border digital trade infrastructure, support the growth of new forms of foreign trade such as cross‑border e‑commerce and overseas warehouses, and explore smart matchmaking, smart contracts, and cross‑border payments in digital RMB to facilitate online cross‑border transactions.

China has issued detailed rules for the food safety and nutrition‑health work of disease prevention and control institutions.
The National Health Commission and the National Center for Disease Control and Prevention recently jointly issued the “Detailed Rules on Food Safety and Nutrition‑Health Work for Disease Prevention and Control Institutions,” further clarifying and refining the existing responsibilities of these institutions in the area of food safety, while also introducing new responsibilities related to nutrition and health.
The detailed rules comprise eleven chapters and fifty-four articles, covering general provisions, scope of work, monitoring and risk assessment of food contamination and harmful factors, surveillance and reporting of foodborne diseases and epidemiological investigations into food safety incidents, technical management of food safety standards, the National Nutrition Plan and initiatives for balanced diets, nutrition monitoring and evaluation, public education and health promotion activities related to food safety and nutritional well-being, laboratory capacity building and management, safeguarding measures, and supplementary provisions.

The Ministry of Ecology and Environment has issued several measures to further boost the development of the private sector.
The Ministry of Ecology and Environment has issued the “Several Measures by the Ecological and Environmental Authorities to Further Promote the Development of the Private Economy.”
The “Several Measures” set forth four key tasks: supporting green development, streamlining environmental access requirements, improving environmental law enforcement, and strengthening policy support. For issues encountered by enterprises in investment and construction projects, a “first‑inquiry responsibility system” and a “one‑time notification service system” will be implemented. The “three‑ledger” approach for environmental impact assessment approvals and the green‑channel mechanism will continue to be applied; for major private investment projects that meet ecological and environmental protection standards, a dedicated green channel will be established. A positive list management system for ecological and environmental supervision and law enforcement will be put in place, ensuring that compliant enterprises face no unnecessary interference. Enterprises will be encouraged to participate in environmental rights trading, with voluntary development of greenhouse gas emission‑reduction projects, and to engage in transactions on the national carbon emissions trading market and the national voluntary greenhouse gas emission reduction trading market.

The Ministry of Industry and Information Technology has issued a notice to accelerate the planning and construction of pilot-scale platforms for manufacturing.
The Ministry of Industry and Information Technology has issued the “Notice on Accelerating the Planning and Construction of Pilot-Scale Platforms for Manufacturing.”
The Notice sets forth the following objectives: focusing on critical areas urgently needed for national strategies and industrial development, it calls for guiding eligible entities to adopt tailored construction models, development strategies, and measures suited to local conditions, thereby advancing the establishment of pilot‑scale testing platforms on a “one‑category, one‑policy” basis. By 2027, the plan aims to foster and establish a number of provincial- and ministerial‑level manufacturing pilot‑scale testing platforms in suitable regions, while selecting and designating several national manufacturing pilot‑scale testing platforms that boast broad outreach, strong technology‑transfer capabilities, sound development mechanisms, and internationally advanced standards. These efforts will facilitate engineering breakthroughs and industrial applications of technological achievements across traditional, emerging, and future industries, effectively enhancing the technical value and quality of innovation outcomes, accelerating the resolution of challenges in translating research results into practical applications, and significantly elevating manufacturing innovation capacity and the modernization of industrial chains.

China has signed a framework agreement on a joint economic partnership for development with 22 African countries.
Recently, China and 22 African countries—including Ethiopia, Burundi, Equatorial Guinea, the Republic of the Congo, the Democratic Republic of the Congo, Gabon, Djibouti, Zimbabwe, Guinea-Bissau, the Comoros, Côte d’Ivoire, Liberia, Libya, Madagascar, Mauritania, South Sudan, Sierra Leone, the Seychelles, São Tomé and Príncipe, Uganda, Chad, and the Central African Republic—have reached consensus on a framework agreement and have signed it individually.
The framework agreement comprises a preamble, as well as provisions on objectives, principles, the scope of negotiations, institutional arrangements, entry into force, amendments and termination, and future negotiations. It lays the groundwork for both sides to conduct subsequent talks on specific issues such as trade and investment, while also providing long-term, stable, and predictable institutional safeguards for China–Africa economic and trade cooperation. The Chinese side will continue to strengthen communication with African countries that express interest, implement the outcomes of the summit, expand autonomous opening-up, and strive to ensure that the agreement and its follow-up results benefit businesses and people on both sides at an early date.

Theoretical Symposium on the World Internet Conference: Advancing the Building of a Community with a Shared Future in Cyberspace to a New Stage
On September 3, the International Organization of the World Internet Conference convened in Beijing for a theoretical symposium on advancing the building of a community with a shared future in cyberspace into a new stage. The event reviewed the theoretical achievements and practical experiences accumulated since the proposal of this vision, and explored the profound implications, significant importance, and contemporary value of working together to take the endeavor to a new phase.
At the conference, leading experts and prominent figures from the internet sector in China, South Korea, the United Kingdom, France, Switzerland, and Australia engaged in discussions on topics including “The Global Significance of Building a Community with a Shared Future in Cyberspace,” “The Construction, Development, and Utilization of Digital Infrastructure,” “Online Cultural Exchange and Shared Prosperity through Mutual Learning among Civilizations,” “Innovative Development of the Digital Economy and the Sharing of Its Benefits,” “International Cooperation on Cybersecurity,” and “Global Governance of Cyberspace.”

State Council: Uphold the “Grand Food View” and Build a Diversified Food Supply System.
The General Office of the State Council has issued the “Opinions on Practicing the Concept of a Grand Food Security Vision and Building a Diversified Food Supply System,” outlining 14 measures across five key areas.
The Opinions propose consolidating and upgrading production capacity to strengthen the foundation of grain and essential agricultural product supply; actively developing economic forests and under-forest economies while prudently tapping forest-based food resources; vigorously promoting the forage industry to increase the supply of herbivorous livestock products; accelerating the development of deep-sea and offshore aquaculture and scientifically exploiting aquatic resources in rivers, lakes, and seas; speeding up the advancement of modern facility agriculture to open up new avenues for food production; fostering and expanding bio‑agriculture to explore novel food resources; and bolstering and scaling up the edible mushroom industry to develop mushroom‑based food products.

Public Consultation on the Measures for the Protection of State-Owned Grain and Oil Storage and Logistics Facilities
On September 18, the National Development and Reform Commission issued a notice soliciting public comments on the “Measures for the Protection of State-Owned Grain and Oil Storage and Logistics Facilities (Draft for Public Comment),” with the deadline for submitting feedback set for October 17.
The draft for public comment stipulates that no organization or individual may encroach upon, damage, arbitrarily demolish, or relocate grain and oil storage and logistics facilities; may not unilaterally alter the intended use of such facilities; and may not jeopardize their safety or the safety of stored grain and oil. Grain and oil storage and logistics facilities entrusted with policy‑related tasks shall not be used to settle debts or provide guarantees for borrowing during the period of grain (or oil) storage. Within grain and oil storage areas and their immediate vicinity, no activities that could compromise the safety of these facilities or the security of stored grain and oil may be conducted, nor may new sources of pollution or hazards be established within the prescribed safety distances.

The tax authorities of five regions, including Beijing–Tianjin–Hebei, have jointly issued the “North China Regional Standards for Discretion in Tax Administrative Penalties.”
The tax authorities of Beijing Municipality, Tianjin Municipality, Hebei Province, Shanxi Province, and the Inner Mongolia Autonomous Region have jointly issued an announcement promulgating the “North China Regional Standards for Discretion in Tax Administrative Penalties,” which will take effect on December 1, 2024.
The “Discretionary Standards” provide detailed and specific guidelines on the discretionary penalties for 54 tax‑related violations across seven categories, including tax registration management, bookkeeping and voucher management, tax return filing, tax collection, tax inspections, invoice and certificate management, and tax guarantees. With respect to the issuance of false invoices, the “Discretionary Standards” stipulate that illegal gains shall be confiscated, and fines shall be imposed according to the following criteria: where the amount of falsely issued invoices is RMB 10,000 or less, a fine of up to RMB 50,000 may also be imposed; where the amount exceeds RMB 10,000 but is no more than RMB 500,000, a fine of RMB 50,000 to RMB 100,000 shall be imposed; and where the amount exceeds RMB 500,000, a fine of RMB 100,000 to RMB 500,000 shall be imposed.

Opinions are being solicited on multiple laws and regulations, including the Anti-Money Laundering Law and the Supervision Law.
The Anti-Money Laundering Law (Second Draft for Deliberation), the Supervision Law (Amendment Draft), and several other laws and regulations are open to public consultation, with the deadline for submitting comments set for October 12.
The Anti-Money Laundering Law (Second Draft for Deliberation) further refines the provisions governing the fulfillment of anti-money laundering obligations by designated non-financial institutions. A total of six regulations are being solicited for public comment concurrently, including the Law on the Prevention and Control of Infectious Diseases (Second Draft for Deliberation), the Energy Law (Second Draft), the Law on Responding to Public Health Emergencies (Draft), the National Parks Law (Draft), and others.

The United States has decided to significantly raise tariffs on Chinese products, with tariffs on electric vehicles increased to 100%.
On September 13, local time, the Office of the United States Trade Representative (USTR) issued a statement saying that the Biden administration has finalized its decision to impose additional tariffs on certain products manufactured in China.
The USTR stated that, effective September 27, the tariff rate on electric vehicles manufactured in China will be raised to 100%, while tariffs on solar cells will increase to 50%. Tariffs on electric vehicle batteries, critical minerals, steel, aluminum, face masks, and shore‑based container cranes will be set at 25%, and additional tariff increases—covering items such as semiconductor chips—are scheduled to take effect over the next two years.

The Cyberspace Administration of China plans to issue the “Cybersecurity Technology: Method for Labeling AI-Generated Synthetic Content.”
The website of the Cyberspace Administration of China has published the “Notice on Soliciting Comments on the Draft Mandatory National Standard ‘Cybersecurity Technology: Method for Labeling AI-Generated Synthetic Content,’” with a deadline for submitting feedback set for November 13, 2024.
This standard elaborates on the requirements set forth in the Interim Measures for the Administration of Generative Artificial Intelligence Services and the Regulations on the Administration of Deep Synthesis of Internet Information Services, and applies to the regulation of labeling activities undertaken by providers of generative synthesis services and content dissemination services with respect to AI-generated synthetic content. In accordance with Articles 16 and 17 of the Regulations on the Administration of Deep Synthesis of Internet Information Services, this standard categorizes labeling into explicit labeling and implicit labeling, and specifies distinct methods for each.

Revised and Issued Notification Forms for Antitrust Review of Simplified Cases of Business Operator Concentrations
To further deepen the reform of the review system for concentrations of undertakings, optimize the review approach for simplified cases, and streamline the filing documents and materials for such cases, the State Administration for Market Regulation has revised and issued the “Antitrust Review Filing Form for Simplified Cases of Concentrations of Undertakings” and the “Public Notice Form for Simplified Cases of Concentrations of Undertakings.”
According to the introduction, following the launch of the newly revised application and public disclosure forms, the number of documents applicants are required to submit has been reduced from three to two. In principle, only the classified versions of these forms need to be filed. The number of information items to be provided on the application form has been cut from 44 to 38, while the associated requirements have been made more standardized and clearer. Moreover, the form’s structure has been refined and optimized, with improved logical coherence, thereby significantly enhancing both the convenience of completion for applicants and the efficiency of the application process.

The Ministry of Civil Affairs has issued the “Criteria for Identifying Major Accident Hazards in Child Welfare Institutions.”
The Ministry of Civil Affairs has published the “Criteria for Identifying Major Accident Hazards in Child Welfare Institutions.”
The Standard comprises eleven articles, which set forth in detail provisions regarding major accident hazards in child welfare institutions, major accident hazards related to building structures, major accident hazards associated with facilities and equipment, non-compliance of relevant qualifications with statutory requirements, major accident hazards in daily management, and other significant accident hazards.

A work report meeting on the compliance governance of online sales of medical devices was held in Beijing.
A work report meeting on the compliance governance of online medical device sales was held in Beijing. During the meeting, relevant departments of the National Medical Products Administration briefed attendees on recent developments in online medical device sales, public opinion monitoring, and complaints and reports involving internet‑based medical devices. Nine platform companies—Baidu, JD.com, Meituan, Pinduoduo, Douyin, Xiaohongshu, Taobao/Tmall, AliHealth, and Kuaishou—presented updates on their efforts to ensure compliance in the online sale of medical devices.
The meeting fully afofficeed the achievements of compliance governance in the online sale of medical devices, conducted an in-depth analysis of the current issues and challenges, and set forth requirements for further strengthening compliance oversight of online sales. The meeting emphasized that all platform enterprises must continue to reinforce their sense of responsibility as principal entities managing online medical device sales, earnestly fulfill their obligations, proactively identify and mitigate potential risks, and ensure the quality and safety of medical devices sold online. The meeting also encouraged platform enterprises to actively offer advice and recommendations on medical device legislation, work collaboratively to promote joint governance, and safeguard public safety in the online purchase and use of medical devices.

Shanghai: Promoting the Development of a Global Fintech Hub with High Quality
The website of the Shanghai Municipal People’s Government has released the “Action Plan for High-Quality Development of Shanghai as a Global Fintech Hub,” outlining policy measures across several key areas, including establishing a support system for financial technology innovation, developing demonstration scenarios for fintech applications, enhancing fintech regulation and safeguarding financial stability, optimizing the spatial layout and infrastructure for fintech, strengthening fintech-related infrastructure, bolstering financing support for fintech enterprises, and improving the overall environment for fintech development.
The Plan shall enter into force on October 1, 2024, and shall remain in effect until September 30, 2029.

Ministry of Finance Regulations on the Administration of the Use of State-owned Assets
The Ministry of Finance recently issued the Measures for the Administration of the Use of State-owned Assets by Central Administrative and Public Institutions, which will take effect on August 16, 2024.
The Measures comprise seven chapters and fifty-two articles, covering general provisions, management authority, basic administration, modes of use, revenue from use, supervision and inspection, and supplementary provisions. The Measures standardize management procedures and enhance their operability by clearly defining the management requirements and specific workflows for various uses of state-owned assets, including self‑use, leasing and lending, and external investment, thereby further streamlining the processes for the utilization of state‑owned assets by central administrative institutions and public institutions. They also delineate the responsibilities of asset users and managers, ensuring that accountability for the management and use of state‑owned assets is assigned to specific individuals, and promote the improvement of foundational management practices—such as maintaining asset information cards, standardizing accounting and recording, strengthening property registration, and conducting regular inventories and reconciliations—among central administrative institutions and public institutions.

Public Consultation on the Measures for Labeling AI-Generated Synthetic Content
To standardize the labeling of AI-generated synthetic content, the Cyberspace Administration of China has drafted and released the “Measures on the Labeling of Artificial Intelligence-Generated Synthetic Content (Draft for Public Comment).” Public comments are being solicited starting September 14, with a deadline for feedback set for October 14.
According to the Draft for Public Comment, service providers offering online information content dissemination platform services shall take measures to regulate the dissemination of generative synthetic content. They shall verify whether file metadata contains implicit identifiers; if such identifiers are present, they must affix conspicuous warning labels adjacent to the published content in an appropriate manner, clearly informing users that the content is generative synthetic.

Two departments: Strengthen management and services for direct settlement of out-of-town medical expenses.
The National Healthcare Security Administration and the Ministry of Finance have issued the “Notice on Further Strengthening the Management and Services for Direct Settlement of Out-of-Province Medical Expenses.”
The Notice comprises six key components: first, strengthening the management of out-of‑area medical treatment registration; second, appropriately defining reimbursement policies for out-of‑area medical services; third, enhancing the administration of medical institutions at the place of treatment; fourth, streamlining administrative services for direct settlement of out-of‑area medical expenses; fifth, intensifying monitoring of direct settlement for out-of‑area medical care; and sixth, improving the oversight mechanism for funds allocated to out-of‑area medical services.

Two departments: Steadily and orderly expand the scope of outpatient chronic and special disease categories eligible for interprovincial direct settlement.
The National Healthcare Security Administration has published the “Notice on Steadily and Orderly Expanding the Scope of Direct Out-of-Province Settlement for Chronic and Special Diseases in Outpatient Settings.”
The notice states that efforts will be made to consolidate and enhance the existing interprovincial direct settlement services for outpatient chronic and special diseases. Specifically, it calls for further standardizing interprovincial direct settlement of medical expenses related to five outpatient conditions—hypertension, diabetes, outpatient radiotherapy and chemotherapy for malignant tumors, dialysis for uremia, and anti-rejection therapy following organ transplantation—to meet the legitimate needs of insured individuals seeking timely medical care and settlement. In addition, the scope of covered outpatient chronic and special diseases eligible for interprovincial direct settlement will be expanded in a steady and orderly manner. By the end of 2024, all pooled‑funding regions will, as the place of medical treatment, provide interprovincial direct settlement for medical expenses associated with five additional outpatient chronic and special diseases: chronic obstructive pulmonary disease, rheumatoid arthritis, coronary heart disease, viral hepatitis, and ankylosing spondylitis.

The National Medical Products Administration plans to strengthen the monitoring and management of cosmetic safety risks.
The National Medical Products Administration has issued the “Administrative Measures for Cosmetic Safety Risk Monitoring (Draft for Public Comment),” inviting public feedback until October 8. The draft comprises six chapters and 30 articles, covering general provisions, plan formulation, sampling and testing, investigation and handling, application of monitoring results, and supplementary provisions.
The Draft for Public Comments stipulates that the national risk‑monitoring program shall strike a balance between identifying potential risks in cosmetics and providing scientific evidence to support the development and revision of standards, while the risk‑monitoring programs of provincial‑level and lower drug regulatory authorities shall primarily focus on detecting such potential risks. Risk monitoring, as required by operational needs, shall prioritize the surveillance of seven categories of substances—particularly those frequently added to cosmetics and capable of posing health hazards to humans.

Taxation
Ministry of Finance: Improve the systems for individual income tax, value-added tax, resource tax, environmental protection tax, and others.
The Ministry of Finance has published the “Report of the State Council on Budget Execution Since the Beginning of This Year,” and Minister of Finance Lan Fo’an has outlined the key priorities for the next phase of fiscal work.
With regard to deepening fiscal and tax system reform, the Report notes that it is necessary to broaden local tax bases, explore merging the urban maintenance and construction tax, the education surcharge, and the local education surcharge into a single local additional tax, advance the shift of consumption tax collection to later stages of the supply chain while steadily transferring this responsibility to local governments, and appropriately expand local tax administration authority and delegate management powers over certain non-tax revenues to lower-level authorities. At the same time, efforts should be made to optimize the tax structure and further refine systems such as the individual income tax, value-added tax, resource tax, and environmental protection tax.
China’s first independence standard for certified public accountants is currently under public consultation.
On September 18, the Chinese Institute of Certified Public Accountants issued a public consultation on “China Code of Ethics for Certified Public Accountants No. 1—Requirements for Independence in Financial Statement Audit and Review Engagements (Exposure Draft),” with a deadline for submissions of October 31, 2024.
The draft for public comment covers five main areas: First, it extracts the independence requirements from the Code of Professional Ethics and establishes them as a separate Independence Standard, undertaking a comprehensive revision of “China Code of Professional Ethics for Certified Public Accountants No. 4—Independence Requirements in Auditing and Review Engagements.” Second, it clarifies the scope of public interest entities and strengthens the related provisions. Third, it reinforces the regulations governing fees, addressing the issue of excessive reliance on individual audit clients by tightening the relevant requirements. Fourth, it strengthens the provisions pertaining to non‑assurance services. Fifth, it enhances the regulations related to the use of technology.

The Customs Tariff Commission of the State Council has suspended the implementation of the zero-tariff policy for certain agricultural imports from Taiwan.
On September 18, the Ministry of Finance website published the “Announcement of the Customs Tariff Commission of the State Council on Terminating the Policy of Exempting Certain Agricultural Products Originating in Taiwan from Customs Duties.”
The announcement clarifies that, effective September 25, 2024, the policy exempting 34 agricultural products originating in Taiwan—such as fresh fruits, vegetables, and aquatic products—from import duties will be discontinued. Import duties on these products will henceforth be applied in accordance with the relevant existing regulations. In addition, Tax Commission Announcements No. 25 of 2005, No. 3 of 2007, and No. 28 of 2011 are hereby repealed.

Litigation & Arbitration
The Supreme People’s Court has released typical cases on antitrust and anti-unfair competition.
Recently, the Supreme People’s Court released eight typical cases involving antitrust and anti-unfair competition.
Among them, four landmark antitrust cases address key legal issues such as horizontal monopoly agreements involving fixed prices and concerted refusals to deal, as well as the abuse of a dominant market position through tied sales, and they pertain to vital sectors affecting people’s livelihoods, including catering, digital television, residential natural gas, and wholesale vegetables. Additionally, four representative cases in the field of unfair competition tackle important legal questions, including the application of the general provisions of the Anti-Unfair Competition Law and the determination of acts such as imitation and confusion, false advertising, and infringement of trade secrets; these cases span both online and offline industries, covering platform data, traditional consumer goods, and new‑energy vehicles.

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