JC Master Legal News Issue 1123

Key Takeaways for This Issue

The National Development and Reform Commission has released the 2024 edition of the standard format for REITs project application documents.
The General Office of the National Development and Reform Commission recently issued the “Standard Format for Submission Materials of Real Estate Investment Trust (REIT) Projects in the Infrastructure Sector (2024 Edition).”
The Measures for the Supervision of Insurance Asset Risks Are Set for Revision, Adding Audit Provisions and Refining Classification Standards.
The National Administration of Financial Regulation has revised and issued the “Measures for Risk Classification of Insurance Assets (Draft for Public Comment),” inviting public input. The deadline for submitting comments is September 2, 2024.
The Cybersecurity Standards Committee plans to release the “Security Requirements for Data Processing During Internet Platform Service Suspension.”
On August 7, the website of the Cybersecurity Standards Committee issued a notice soliciting public comments on the “Cybersecurity Standards Practice Guide—Security Requirements for Data Processing During Internet Platform Service Outages (Draft for Public Comment).” The deadline for submitting feedback is August 22.
The Supreme People’s Procuratorate has released information on the key measures and interim results of the “Prosecutorial Protection of Enterprises” special campaign.
On August 8, the Supreme People’s Procuratorate website released the “Notice on the Key Measures and Interim Achievements of the Special Campaign ‘Prosecutorial Protection for Enterprises.’”
Finance & Capital Markets
The National Development and Reform Commission has released the 2024 edition of the standard format for REITs project application documents.
According to a notice posted on the website of the National Development and Reform Commission on August 6, the General Office of the NDRC recently issued the “Standard Format for Submission Materials of Real Estate Investment Trust (REIT) Projects in the Infrastructure Sector (2024 Edition).”

Previously, the National Development and Reform Commission issued the “Notice on Fully Promoting the Regular Issuance of Real Estate Investment Trust (REIT) Projects in the Infrastructure Sector,” stipulating that, effective August 1, 2024, REIT projects will be issued on a regular basis.

The “Standardized Text” comprises a summary table that outlines the project’s key details across seven dimensions, including its basic information and the profiles of the participating entities, along with two appendices: “Supporting Documentation for Infrastructure REITs Projects” and “Essential Elements of a Legal Opinion on the Legality of Transfer Transactions.” The National Development and Reform Commission stated that it will establish a dynamic adjustment mechanism for the “Standardized Text,” revising it as needed in light of evolving circumstances and new requirements, and taking into account feedback from all relevant stakeholders.

Five departments are joining forces to continuously increase financial investment in key areas of rural revitalization.
According to a notice posted on the website of the People’s Bank of China on August 5, five departments recently jointly issued the “Notice on Launching a Special Campaign to Study and Apply the Experience of the ‘Ten-Million Project’ and Strengthen Financial Support for the All-Round Revitalization of Rural Areas,” which outlines the implementation of five major special campaigns.

Specifically, these include: a special campaign to ensure financial support for food security; a special campaign to consolidate and expand the effectiveness of financial assistance; a special campaign to provide financial services for rural industrial development; a special campaign to support rural infrastructure and construction; and a special campaign to empower rural governance through finance. In terms of policy safeguards, the Notice emphasizes leveraging the incentive effects of monetary policy tools such as re-lending and re-discounting programs for agriculture and small businesses, as well as re-lending for technological innovation and equipment upgrades, to support agricultural enterprises in issuing financing instruments and to continuously increase funding for key areas of rural revitalization. It also calls for strengthening coordination among industrial, fiscal, and financial policies and ensuring smooth channels for government–bank–enterprise financing matchmaking. All financial institutions are required to continually optimize their service mechanisms and tilt resources toward county-level areas, among other measures.

The Measures for the Supervision of Insurance Asset Risks Are Set for Revision, Adding Audit Provisions and Refining Classification Standards.
The National Administration of Financial Regulation has revised and issued the “Measures for Risk Classification of Insurance Assets (Draft for Public Comment),” inviting public input. The deadline for submitting comments is September 2, 2024.

This revision: first, clarifies insurers’ management responsibilities and strengthens comprehensive risk management; second, refines the classification criteria for fixed-income assets, adjusting thresholds such as the number of days past due on principal or interest and the allowance‑for‑impairment ratios to align with commercial banks; third, enhances the risk‑classification standards for equity‑type and real‑estate‑type assets by establishing clear qualitative and quantitative criteria, requiring穿透 identification of the risk profiles of investee entities or real‑estate project sponsors, and determining asset classification tiers based on the proportion of underlying assets exhibiting risk‑related conditions and projected loss rates; fourth, improves organizational and implementation arrangements; and fifth, introduces additional external oversight by adding audit provisions that mandate both internal and external audits, thereby reinforcing the audit accountability of accounting offices.

Commercial & Corporate
The State Council has in principle approved the “Implementation Plan for Building the China–Singapore Tianjin Eco‑City into a National Green Development Demonstration Zone.”
On August 7, the Chinese Government Website published the State Council’s reply approving the “Implementation Plan for Building the China–Singapore Tianjin Eco‑City into a National Green Development Demonstration Zone (2024–2035).”
The State Council has formally approved, in principle, the “Implementation Plan for Building the China–Singapore Tianjin Eco‑City into a National Demonstration Zone for Green Development (2024–2035).” The plan calls for deepening bilateral cooperation between China and Singapore in green technologies, green equipment, green services, green infrastructure, and green finance, with the aim of establishing a national demonstration zone for green development that is anchored in high‑quality, low‑carbon growth, focused on high‑value‑added niche industries, and characterized by a world‑class business environment. It seeks to integrate the concept of green development into every stage and sector of the eco‑city’s economic and social development, striving to bring its key green‑development indicators to internationally leading levels by 2035.

The Ministry of Civil Affairs has issued the “Technical Specifications for Disinfection and Isolation in Child Welfare Institutions,” a recommended industry standard.
On August 7, the website of the Ministry of Civil Affairs published the “Announcement on the Issuance of the Recommended Industry Standard ‘Technical Specifications for Disinfection and Isolation in Child Welfare Institutions.’”
The Standard sets forth the basic requirements for disinfection and isolation in child welfare institutions, covering cleaning and hygiene, disinfection, isolation, safety, and emergency preparedness, and serves as a technical guideline for routine disinfection and isolation activities conducted within such institutions.

The Ministry of Natural Resources has issued a document to deploy the management of exploration and mining information for mineral rights holders.
On August 5, the website of the Ministry of Natural Resources published an announcement soliciting public comments on the “Notice of the Ministry of Natural Resources on Strengthening the Management of Exploration and Mining Information by Mineral Rights Holders (Draft for Comments).” The deadline for submitting feedback is 15 days after the announcement’s publication.
The Notice elaborates on Order No. 13 across six key areas, primarily clarifying the division of responsibilities, further refining the content of publicized information while minimizing the administrative burden on mining right holders, developing standardized forms for public disclosure based on category, specifying procedures and quality standards for on-site inspections, regulating the management of the list of abnormal entities, and strengthening credit-based management and related services, among other measures.

The State Administration for Market Regulation is soliciting suggestions for inclusion in the Catalog of Health Functions Permitted to Be Declared on Health Food Products.
On August 6, the website of the State Administration for Market Regulation published the “Notice on Soliciting Suggestions for Inclusion in the Catalogue of Health Functions Permitted to Be Claimed by Health Foods,” with a public solicitation deadline of December 31, 2024.
The Announcement clarifies that the State Administration for Market Regulation permits any organization or individual, on the basis of research related to health‑function claims, to submit proposals for inclusion in the Catalogue of Health Functions. It has also established channels for consulting on and submitting applications for new health‑food function claims and product registration, provides policy and technical advisory services to those proposing new health‑food functions, supports research into novel health‑food functions, and fosters new, high‑quality productivity in the health‑food sector.

The National Energy Administration is strengthening safety management during the flexibility upgrades of coal-fired power units and their deep peak‑shaving operations.
Recently, the website of the National Energy Administration published the “Notice on Strengthening Safety Management During Flexibility Retrofitting and Deep Peak-Shaving of Coal-Fired Power Units.”
The Notice comprises six key areas, calling for the rigorous implementation of enterprises’ principal responsibilities, the enhancement of safety management in flexibility upgrades, the strengthening of equipment operation and maintenance, the scientific adjustment of overhaul schedules, the intensification of unit‑operation monitoring, and the encouragement of technological innovation.

Shanghai has released the “Q&A on Business-Related Issues in Shanghai’s Business Environment Policies,” compiling 15 categories of common challenges faced by enterprises.
Recently, the Shanghai Development and Reform Commission has compiled and organized 151 Q&A entries across 15 categories, covering key policies and service information throughout a company’s entire lifecycle—from market entry to exit. These include topics such as market access, securing business premises, electricity supply, and network connectivity, resulting in the publication of the “Shanghai Business Environment Policy Q&A on Enterprise‑Related Issues.”
The types of issues covered in the Q&A primarily include market access, obtaining business premises, electricity supply, network connectivity, water supply, labor and employment, financial services and green financing, international trade, tax compliance, commercial mediation and arbitration, commercial dispute resolution (litigation), market competition, innovation and intellectual property protection, government procurement and tendering, and insolvency proceedings.

Shanghai has unveiled 10 measures to enhance the efficiency of ethical review in medical and health institutions.
Recently, the website of the Shanghai Municipal Health Commission published the “Notice on Issuing the ‘Several Measures to Further Enhance the Efficiency of Ethical Review in Medical and Health Institutions in This Municipality.’”
The “Several Measures” comprise 10 provisions across four key areas, proposing to streamline and standardize the submission of documentation and review procedures, increase the frequency of ethics review meetings, shorten the review timeline, comprehensively advance a collaborative ethics review mechanism, explore the establishment of a mutual recognition system for ethics review outcomes within the Yangtze River Delta region, leverage the strengths of regional ethics review committees, strengthen the guiding role of expert panels, set up a Municipal Clinical Research Ethics Review Quality Promotion Center, improve the ethics training framework, and optimize the evaluation mechanisms for medical and health institutions.

The Shanghai Administration for Market Regulation has established a “Three Letters and One Letter” system for antitrust enforcement.
The Shanghai Municipal Administration for Market Regulation has published the “Notice on Establishing the ‘Three Letters and One Letter’ System for Antitrust Enforcement.”
The Notice clarifies that relevant operators or administrative authorities shall, within the prescribed time limit from the date of receipt of the “Reminder and Urging Letter,” submit a written report on the implementation status. For those who fail to adequately implement the relevant requirements or fail to take the required corrective measures by the deadline, the Municipal Market Supervision Administration or the Office of the Municipal Joint Conference on Anti-Monopoly and Fair Competition shall order them to make rectifications within a specified period, or, in accordance with the law, impose measures such as admonitory talks or initiate formal investigations. The party subject to the admonitory talk shall, within the prescribed time limit from the date of the talk, submit a written report on the improvement measures taken. If the party fails to rectify within the deadline, fails to achieve satisfactory results, or encounters repeated problems after making corrections, the Municipal Market Supervision Administration shall, in accordance with the law, initiate formal investigations or take other appropriate measures against the relevant operator.

Guangdong has officially launched its arbitration–judicial coordination platform, with the Zhuhai International Arbitration Court among the first institutions to be connected.
Recently, the Guangdong High People’s Court hosted the “Conference on Advancing the Diversified Resolution of Cross-Border Civil and Commercial Disputes.” At the conference, the Provincial High Court and the Provincial Department of Justice jointly launched an arbitration‑judicial coordination platform, transforming offline procedures—such as applying for interim measures in arbitration, accessing arbitration case files, and receiving feedback on judicial review outcomes—into online processes.
This platform will directly integrate the People’s Courts’ Comprehensive Business System with the case management systems of arbitration institutions, featuring four key capabilities: “end-to-end, multi‑portal connectivity across the entire process,” “one‑click access to electronic arbitration case files,” “real‑time feedback on case progress,” and “enhanced interconnection with Hong Kong and Macao.” It enables automated data capture and interoperability, as well as statistical reporting and analytical insights. Through a single portal, users can handle and analyze cases—including applications for interim measures and judicial review of arbitral awards—while achieving intelligent, efficient, rapid, and convenient arbitration case management.

The Cybersecurity Standards Committee plans to release the “Security Requirements for Data Processing During Internet Platform Service Suspension.”
On August 7, the website of the Cybersecurity Standards Committee issued a notice soliciting public comments on the “Cybersecurity Standards Practice Guide—Security Requirements for Data Processing During Internet Platform Service Outages (Draft for Public Comment).” The deadline for submitting feedback is August 22.
The standard sets forth the fundamental requirements for data processing in the event of an internet platform’s service suspension and specifies the requirements for handling sensitive data. It is intended to guide data processors on internet platforms in carrying out data security protection measures and may also serve as a reference for competent regulatory authorities in conducting security oversight or security assessments.

Ten departments in Shandong Province have issued the “Opinions on Handling Relevant Issues Concerning the Transformation of Provincial Public Institutions into Enterprises.”
Recently, the website of the Shandong Provincial Department of Human Resources and Social Security published the “Opinions on Handling Relevant Issues Concerning the Transformation of Provincial Public Institutions into Enterprises.”
According to the document, following the transformation of public institutions, the original entities must terminate their personnel relationships with employees and enter into labor contracts with them in accordance with the law. Social insurance coverage will be transferred and continued as prescribed, encompassing old-age insurance, medical insurance, work-related injury insurance, maternity insurance, and unemployment insurance. Employees on the established staffing roster of the transformed entity will receive a one-time old-age insurance subsidy, while the living allowances of those who had already retired prior to the transformation will remain unchanged. Furthermore, employees who choose not to join the transformed entity will be granted economic compensation in accordance with applicable regulations.

Shanghai Lawyers Association: Issued the (Trial) Practice Guidelines for Lawyers Representing Cases Involving the Protection of Female Employees’ Rights and Interests (2024)
The Labor and Social Security Committee of the Shanghai Lawyers Association has issued the “Practice Guidelines for Lawyers Representing Female Employees in Rights Protection Matters (2024 Trial Implementation),” aimed at strengthening the protection of women’s rights in the new era.
The guidelines cover female employees’ labor and employment rights, occupational safety and health, protection of reproductive rights, as well as measures to prevent and address workplace sexual harassment and safeguard privacy. They clearly delineate the rights of female workers in recruitment, retirement, and during specific physiological periods, emphasizing protections during pregnancy and lactation, along with the provision of maternity allowances and coverage of related medical expenses. The guidelines also provide a detailed definition of sexual harassment, outline preventive measures, set forth procedures for handling complaints, and specify legal liabilities, thereby offering lawyers a practical framework for defending workers’ rights and promoting gender equality in the workplace and the protection of female employees’ rights.

The National Development and Reform Commission has outlined 16 tasks to strengthen the development of a standards and metrology system for achieving carbon peak and carbon neutrality.
On August 8, the National Development and Reform Commission’s website published the “Notice on the Action Plan for Further Strengthening the Construction of the Carbon Peak and Carbon Neutrality Standards and Metrology System (2024–2025).”
The Action Plan outlines sixteen key tasks: (1) Accelerate the development of corporate carbon‑emission accounting standards. (2) Strengthen the establishment of product carbon‑footprint and carbon‑labeling standards. (3) Expand the supply of project‑level carbon‑reduction standards. (4) Promote research and development of technical standards for carbon reduction and carbon removal. (5) Raise energy‑efficiency requirements in the industrial sector. (6) Expedite the updating and upgrading of product energy‑efficiency standards. (7) Enhance the development of standards for the circular use of key products and equipment. (8) Broaden the availability of green‑product evaluation standards. (9) Bolster the foundational capacity for carbon measurement. (10) Advance the development and application of metrological instruments related to the “dual carbon” goals. (11) Strengthen metrological support and assurance for carbon‑emission accounting. (12) Conduct research on common, critical carbon‑measurement technologies. (13) Intensify research on metrological technologies in priority areas. (14) Build and reinforce carbon‑measurement centers. (15) Improve technical specifications for metrology related to the “dual carbon” objectives. (16) Strengthen oversight and management of energy‑related metrology.

Two departments: Central enterprises shall support small and medium-sized enterprises in participating in procurement activities.
According to a notice posted on the website of the State-owned Assets Supervision and Administration Commission of the State Council on August 6, the Commission and the National Development and Reform Commission recently issued the “Guiding Opinions on Standardizing Procurement Management in Central Enterprises,” which sets forth ten key areas.
The Opinions state that full use should be made of digital and intelligent tools, such as the national enterprise procurement sourcing and price‑inquiry system, to conduct extensive sourcing and price‑comparison activities. This will enable effective identification of risks, including supplier fraud, collusive pricing, and inadequate履约 capability, while establishing a roster of qualified suppliers and implementing dynamic management and evaluation. The Opinions also emphasize robust support for the development of small and medium-sized enterprises (SMEs). Central enterprises are required to facilitate SME participation in procurement processes and must not unlawfully impose restrictions on suppliers based on their place of registration, ownership structure, organizational form, registered capital, equity structure, or length of operation, nor may they set other unreasonable conditions that exclude or unduly restrict SMEs from participating. Central enterprises are encouraged to provide active support to SMEs through measures such as reserving procurement shares and prioritizing payment arrangements.

The State Council has approved the Hainan Provincial Government to temporarily exercise approval authority over matters such as seed imports in the free trade port.
On August 6, the Chinese Government Website published the State Council’s Reply Approving the Hainan Provincial People’s Government to Temporarily Exercise Certain Administrative Approval Authorities.
The Approval clearly states that, in support of the development of the Hainan Free Trade Port, from the date of issuance of this document through December 31, 2028, the approval process for the import of agricultural crop seeds and the introduction of livestock and poultry genetic resources from abroad shall be administered by the agriculture and rural affairs department of the Hainan Provincial People’s Government. The specific administrative measures shall be formulated by the Hainan Provincial People’s Government and implemented upon approval by the Ministry of Agriculture and Rural Affairs.

Three departments have issued the “Compliance Guidelines for Fee-Charging Practices of Industry Associations and Chambers of Commerce.”
On August 6, the website of the State Administration for Market Regulation published the “Announcement on the Release of the ‘Compliance Guidelines for Fee-Charging Practices of Industry Associations and Chambers of Commerce.’”
The Guidelines comprise seven chapters and fifty-four articles, setting forth detailed provisions on membership fees, administrative and public‑service charges, business‑related service fees, other types of charges, and the handling of violations. They stipulate that industry associations and chambers of commerce must establish and maintain a robust fee‑compliance system, publicly disclose at their registered offices, service venues, and on their official websites and WeChat accounts information such as fee items, the nature of the charges, the scope of services, fee standards, and the legal basis for such charges, thereby fully safeguarding the right of service recipients to be informed. Prior to charging, they are required to fulfill their obligation to provide notice; they may not impose additional charges beyond those explicitly stated, nor may they collect any fees not clearly indicated. Furthermore, they are prohibited from employing false or misleading pricing practices to induce service recipients into entering into transactions.

The Ministry of Industry and Information Technology has released measures across five key areas to foster innovation in the information and communications sector and optimize the business environment.
On August 6, the website of the Ministry of Industry and Information Technology released the “Opinions on Innovating Management in the Information and Communications Industry and Optimizing the Business Environment.”
The “Opinions” set forth 12 key tasks across four areas: First, continuously optimize a highly efficient, open, and unified market access environment by implementing a “one‑stop application, one‑stop approval” process for new technologies and applications in multiple telecommunications service categories; orderly launching pilot programs for self‑inspection and self‑certification of telecommunications equipment network access licensing; comprehensively deepening the use of electronic licenses and certificates; and further piloting the expansion of foreign‑investment access to value‑added telecommunications services. Second, actively foster a healthy, fair, and orderly competitive landscape. Third, further develop a regulatory framework that is standardized, transparent, and predictable. Fourth, focus on building a service environment that is convenient, reliable, and of high quality.

The CPC Committee of the State-owned Assets Supervision and Administration Commission has completed its feedback on the first round of inspections for 2024.
Recently, in accordance with unified arrangements, the Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council has completed all feedback on the first round of inspections for 2024. This round of inspection feedback was conducted through a combination of centralized briefings and “one-on-one” feedback sessions by the inspection teams.
The feedback squarely identified the problems existing in the enterprises under inspection. Some fall short in advancing high-quality development; others exhibit deficiencies in balancing development with security, facing substantial pressure to prevent and defuse major risks; still others have failed to fully shoulder their responsibilities for exercising strict Party self‑discipline, with particularly salient integrity risks in key areas and persistent violations of the spirit of the CPC Central Committee’s Eight‑Point Decision on Improving Party and Government Conduct; some have gaps in implementing the Party’s organizational line for the new era, with shortcomings in personnel selection, appointment, and talent development; and in some cases, accountability for rectification following inspections has been inadequately enforced, leaving certain corrective measures unfinished.

The National Medical Products Administration has approved the launch of a pilot program in Beijing and Shanghai to streamline the review and approval process for clinical trials of innovative drugs.
The website of the National Medical Products Administration has published the “Reply Approving the Pilot Program to Optimize the Review and Approval Process for Clinical Trials of Innovative Drugs in Beijing and Shanghai.”
The Approval Document clarifies that, following review, pilot programs for streamlining the review and approval process of innovative drug clinical trials have been approved in Beijing and Shanghai. It further stipulates that the Beijing Municipal and Shanghai Municipal Drug Administration shall organize and implement these pilot initiatives in strict accordance with the requirements set forth in the “Work Plan for the Pilot Program on Streamlining the Review and Approval of Innovative Drug Clinical Trials.”

The National Medical Products Administration plans to issue the “Regulations on the Supervision and Administration of Export Drug Production.”
On August 6, the National Medical Products Administration published the “Regulations on the Supervision and Administration of Exported Drug Production (Draft for Public Comment),” with a deadline for submitting feedback set for September 10.
The Regulations comprise six chapters and forty-two articles, setting forth provisions on basic requirements, circumstances subject to management under export‑certificate‑type documents, circumstances not subject to such management, and supervisory oversight. The Regulations stipulate that exported pharmaceuticals shall be manufactured in strict compliance with Good Manufacturing Practices (GMP) and with the formulations, manufacturing processes, and quality standards approved for registration in the importing country or region; for pharmaceutical products intended for export that have not yet been approved for marketing in the importing country or region, production must be conducted in accordance with clearly defined formulations, manufacturing processes, and quality standards.

The National Development and Reform Commission has issued the “Action Plan for Accelerating the Construction of a New-Type Power System.”
On August 6, the National Development and Reform Commission’s website published the “Notice on Issuing the Action Plan for Accelerating the Construction of a New-Type Power System (2024–2027).”
The Action Plan specifies that, from 2024 to 2027, nine priority special initiatives will be launched: the Power System Stability Assurance Initiative, the Initiative to Overcome Challenges in Transmitting Large-Scale, High-Proportion Renewable Energy Outward, the High-Quality Development of Distribution Networks Initiative, the Initiative to Build an Intelligent Dispatching System, the Initiative to Enhance the Grid-Friendly Performance of Renewable Energy Systems, the Next-Generation Coal-Fired Power Plant Upgrade Initiative, the Initiative to Optimize the Power System’s Regulation Capacity, the Initiative to Expand the Electric Vehicle Charging Infrastructure Network, and the Initiative to Strengthen Demand-Side Coordination Capabilities.

The National Energy Administration has launched a special campaign to combat the “three violations” in power safety production.
Recently, the website of the National Energy Administration published the “Notice on Launching a Special Campaign to Combat the ‘Three Violations’ in Power Safety Production.”
The Notice clarifies that the National Energy Administration has decided to launch a three-month nationwide special campaign on power‑sector production safety—titled “Combatting the Three Types of Violations”—from August to October 2024. All power‑generation and related enterprises are required to rigorously investigate and rectify all types of violations, and to develop and implement a violation‑point system. Personnel who fail to conscientiously comply with safety management regulations, neglect to implement approved safety work plans, engage in serious violations, or reach the maximum allowable violation points shall be strictly sanctioned in accordance with applicable rules. Where subcontractors or outsourced personnel are involved, operations must be suspended for rectification, and such entities may be ordered to leave the site entirely. Furthermore, the practice of imposing rewards and penalties solely on subcontracting offices should be replaced by linking outcomes directly to specific construction teams and individual workers, thereby enhancing the precision and effectiveness of both incentives and sanctions.

Shanghai has issued nine measures to strengthen the spillover effects of the convention and exhibition economy.
On August 5, the Shanghai Municipal Government website published the “Several Measures to Enhance the Spillover Effects of the City’s Convention and Exhibition Economy.”
With regard to further enhancing the business environment for exhibitions and trade fairs, the “Several Measures” propose establishing a coordination mechanism for exhibition security, refining security protocols, and proactively engaging in areas such as visitor flow management, traffic diversion, schedule coordination, and safety assurance for high‑level events—particularly those with large attendance and significant synergies across commerce, travel, culture, and the arts. Additionally, the measures call for expanding public service functions for online exhibitions and trade fairs.

Shanghai has issued the “Measures for the Revocation of False Enterprise Registrations by the Market Supervision Administration.”
On August 6, the website of the Shanghai Administration for Market Regulation published the “Notice on Issuing the Measures for Revoking False Enterprise Registrations of the Shanghai Administration for Market Regulation (Trial).”
The Measures consist of five chapters and twenty-three articles. First, they clarify the jurisdictional principles for revoking false registrations; second, they specify the requirements for filing and accepting applications to revoke false registrations; third, they detail the investigation procedures and handling processes for such revocations; and fourth, they emphasize the effective coordination between registration and regulatory oversight.

Two departments have optimized the patent fee policy, granting a 15% reduction on eligible annual patent fees.
Recently, the Ministry of Finance and the National Development and Reform Commission issued the “Notice on Adjusting and Optimizing Patent Fee Policies,” which will take effect on July 15, 2024.
The Notice clarifies that when a patentee submits a request for compensation of the patent term, a fee for such request shall be paid. If the request is reviewed and found to meet the conditions for term compensation, an annual fee for the compensated period shall also be payable. Both the fee for the patent‑term compensation request and the annual fee for the compensated period are sub‑categories of patent fees; all revenues are remitted in full to the central treasury and are subject to central fiscal budget management. During the period of implementation of open licensing for patents, a 15% reduction shall be applied to the annual patent fee. Where other patent fee‑reduction or exemption policies are also applicable, the most favorable policy may be chosen, but no double benefits shall be granted.

The two departments have clarified the annual fee standards for the patent term compensation period and related matters concerning PCT application fees.
On August 6, the website of the National Development and Reform Commission published the “Notice of the National Development and Reform Commission and the Ministry of Finance on Matters Relating to the Annual Fee Standards for the Patent Compensation Period, among Other Issues.”
The Notice clarifies that the annual fee for patent term compensation is RMB 8,000 per patent per year, with no charge for any period less than one year; the fee for requesting patent term compensation is RMB 200 per application. For international patent applications (PCT applications) whose international search is conducted and which are processed by the China National Intellectual Property Administration as the receiving Office, no application fee or additional application fee is payable upon entry into the national phase in China. Furthermore, for PCT applications for which the China National Intellectual Property Administration has prepared an International Search Report or an International Preliminary Report on Patentability, no substantive examination fee is payable upon entry into the national phase in China when a request for substantive examination is filed. The two departments stipulate that charging entities must strictly comply with the aforementioned fee‑charging provisions, and may not arbitrarily add fee items, expand the scope of charges, raise fee rates, or impose any other charges; they must also implement fee‑charging publicity in accordance with applicable regulations.

The Cyberspace Administration of China has released the seventh batch of filing information for deep synthesis service algorithms.
On August 5, China Internet Information Office published the “Announcement on the Release of Filing Information for the Seventh Batch of Deep Synthesis Service Algorithms.”
The list comprises 487 registered deep synthesis service algorithms, including the China Law Research legal‑service content‑generation algorithm, the IM Motors multimodal AI visual‑image generative algorithm, the Tencent search large‑model generation algorithm, the Xiaoice multimodal video‑generation service algorithm, the Panda Legal Planet legal‑intelligence content‑generation algorithm, the Werewolf AI player speech‑generation algorithm, the LeTV facial‑fusion algorithm, and the Qichacha intelligent Q&A algorithm, among others.

Five departments are joining forces to continuously increase financial investment in key areas of rural revitalization.
According to a notice posted on the website of the People’s Bank of China on August 5, five departments recently jointly issued the “Notice on Launching a Special Campaign to Study and Apply the Experience of the ‘Ten-Million Project’ and Strengthen Financial Support for the All-Round Revitalization of Rural Areas,” which outlines the implementation of five major special campaigns.
Specifically, these include: a special campaign to ensure financial support for food security; a special campaign to consolidate and expand the effectiveness of financial assistance; a special campaign to provide financial services for rural industrial development; a special campaign to support rural infrastructure and construction; and a special campaign to empower rural governance through finance. In terms of policy safeguards, the Notice emphasizes leveraging the incentive effects of monetary policy tools such as re-lending and re-discounting programs for agriculture and small businesses, as well as re-lending for technological innovation and equipment upgrades, to support agricultural enterprises in issuing financing instruments and to continuously increase funding for key areas of rural revitalization. It also calls for strengthening coordination among industrial, fiscal, and financial policies and ensuring smooth channels for government–bank–enterprise financing matchmaking. All financial institutions are required to continually optimize their service mechanisms and tilt resources toward county-level areas, among other measures.

The Ministry of Water Resources has issued the Measures for the Administration of Credit Information of Market Operators in Water Conservancy Construction.
Recently, the Chinese Government Website published the “Notice of the Ministry of Water Resources on Issuing the Measures for the Administration of Credit Information of Market Operators in the Water Conservancy Construction Sector.”
The Measures comprise eight chapters and forty articles, clearly defining provisions on the collection and sharing of credit information, public disclosure of such information, its application, rectification, protection of rights and interests, and supervisory management. They emphasize that the National Water Conservancy Regulatory Platform must strengthen the development of information security infrastructure and enhance its security safeguards to ensure information integrity. In accordance with the requirements for protecting the rights and interests of market entities in the water conservancy construction sector, the Measures specify the authorities and procedures for accessing and using information, mandate system filing and the determination of appropriate security protection levels in compliance with the Measures on the Administration of Information Security Level Protection, require encryption of sensitive information, and refine systems for recording and reviewing information access and use to prevent unauthorized acquisition or leakage.

Guangdong supports scientific and technological innovation; new types of R&D institutions are eligible for tax incentives, and technology-based enterprises are encouraged to list or register on stock exchanges.
On August 6, the website of the Guangdong Provincial People’s Congress published the “Regulations of Guangdong Province on Scientific and Technological Innovation.” The Regulations were adopted at the 11th Meeting of the Standing Committee of the 14th Guangdong Provincial People’s Congress on July 31, 2024, and will come into force on October 1.
The Regulations stipulate that eligible provincial and municipal new‑type R&D institutions may, in accordance with national provisions, enjoy tax preferential policies such as the pre‑tax additional deduction for enterprise research and development expenses, income tax reductions or exemptions for high‑tech enterprises, and import‑related tax reductions or exemptions for technological innovation.
The Regulations also explicitly encourage technology‑based enterprises to raise capital through methods such as listing on stock exchanges, issuing bonds, undertaking mergers and acquisitions, and conducting refinancing. The provincial people’s government shall support the development of specialized boards—such as those for technological innovation—at regional equity trading markets, providing services including listing and public display, custody and trading, investment and financing, and training and guidance. Leading technology offices and large enterprises are encouraged to invest in seed‑stage and early‑stage technology companies.

Regulations on Nuclear Safety Reporting by Research Reactor Operating Organizations Have Been Published.
On August 2, the website of the Ministry of Ecology and Environment published the “Regulations on Nuclear Safety Reporting by Research Reactor Operators.”
The Regulations comprise six chapters and twenty-four articles, clearly stipulating that the operating organization of a research reactor bears full responsibility for nuclear safety and shall implement a nuclear safety reporting system, submitting periodic reports, reports on significant activities, incident reports, and nuclear accident emergency response reports to the National Nuclear Safety Administration or to the nuclear and radiation safety supervision station in the region where the research reactor is located, both during the construction phase and the operational phase.

Two National Ecological and Environmental Standards for the Application for and Issuance of Pollutant Discharge Permits issued by the Ministry of Ecology and Environment.
On August 6, the website of the Ministry of Ecology and Environment published the “Notice on Public Solicitation of Comments on Two National Ecological and Environmental Standards, Including the ‘Technical Specification for Application and Issuance of Pollutant Discharge Permits—Paper and Paper Products Industry (Draft for Comment)’,” with a deadline for submitting feedback set for September 6.
The national ecological and environmental standards currently open for public comment include the “Technical Specification for Application and Issuance of Pollutant Discharge Permits—Paper and Paper Products Industry (Draft for Public Comment)” and the “Technical Specification for Application and Issuance of Pollutant Discharge Permits—Petrochemical Industry (Revised Draft for Public Comment).” Among these, the petrochemical industry standard sets forth requirements for completing basic information in pollutant discharge permit applications and issuance, determining permitted emission limits, calculating actual emissions, establishing compliance‑determination methods, and meeting environmental management obligations such as self‑monitoring, maintaining environmental management records, and submitting pollutant discharge permit implementation reports. It also specifies feasible pollution‑prevention technologies.

Taxation
Three departments: Enterprises eligible for the 2024 additional tax credit policy must submit their applications by the end of August.
In accordance with the requirements of Cai Shui [2023] No. 25, the Ministry of Industry and Information Technology, the Ministry of Finance, and the State Taxation Administration have issued the “Notice on Matters Related to the Preparation of the List of Industrial Machine Tool Enterprises Eligible for the Value-Added Tax Additional Deduction Policy in 2024.”
The “list” referred to in this Notice is the list of enterprises engaged in the production of advanced industrial machine tool mainframes, key functional components, and CNC systems that are eligible for the value-added tax additional deduction policy, as specified in Document Cai Shui [2023] No. 25.
The Notice clarifies that enterprises seeking inclusion on the list must submit their applications through the information‑submission system by August 31, 2024, and prepare a hard copy of the application stamped with the enterprise’s official seal. This document, together with the required supporting materials (both electronic and paper versions), shall be submitted to the local departments of industry and information technology. Enterprises already listed in the 2023 roster that intend to reapply for inclusion on the 2024 list are required to resubmit items 2, 3, 6, and 8 from the “Checklist of Supporting Documents for Industrial Machine Tool Enterprises Eligible for the Value‑Added Tax Additional Deduction Policy” (Attachment 1).

Two departments have optimized the patent fee policy, granting a 15% reduction on eligible annual patent fees.
Recently, the Ministry of Finance and the National Development and Reform Commission issued the “Notice on Adjusting and Optimizing Patent Fee Policies,” which will take effect on July 15, 2024.
The Notice clarifies that when a patentee submits a request for compensation of the patent term, a fee for such request shall be paid. If the request is reviewed and found to meet the conditions for term compensation, an annual fee for the compensated period shall also be payable. Both the fee for the patent‑term compensation request and the annual fee for the compensated period are sub‑categories of patent fees; all revenues are remitted in full to the central treasury and are subject to central fiscal budget management. During the period of implementation of open licensing for patents, a 15% reduction shall be applied to the annual patent fee. Where other patent fee‑reduction or exemption policies are also applicable, the most favorable policy may be chosen, but no double benefits shall be granted.

Pilot Results of the Accounting Data Standard for Electronic Vouchers Released; Ministry of Finance Amends Two Regulatory Documents.
On August 6, the Ministry of Finance website published the revised “Norms for Accounting Informatization” and “Basic Functional and Service Standards for Accounting Software,” both of which will take effect on January 1, 2025.
In the revisions of the two standards, the Ministry of Finance, drawing on the outcomes of the pilot program for electronic voucher accounting data standards over the past two years, has added provisions in the “Work Standard” pertaining to the processing and application of accounting data. These provisions clarify the channels and methods for acquiring accounting data, set forth requirements for verifying such data, and standardize the end-to-end handling of accounting data. Meanwhile, the “Software Standard” explicitly aligns the input, processing, and output stages of accounting software with the electronic voucher accounting data standards. Through these revisions, the achievements of the pilot program have been institutionalized, providing a robust regulatory framework to support the full-scale rollout of the electronic voucher accounting data standards in the next phase.

LITIGATION & ARBITRATION
The Supreme People’s Procuratorate has released information on the key measures and interim results of the “Prosecutorial Protection of Enterprises” special campaign.
On August 8, the Supreme People’s Procuratorate website released the “Notice on the Key Measures and Interim Achievements of the Special Campaign ‘Prosecutorial Protection for Enterprises.’”
According to the report, in the first half of the year, procuratorial organs prosecuted 62,000 individuals for crimes disrupting the market economy, a 36.5% increase year on year. They also brought charges against 5,827 individuals—key personnel in private enterprises—for offenses such as embezzlement, misappropriation of funds, and bribery committed by taking advantage of their official positions, up 41.1% from the same period last year. Additionally, 8,894 people were prosecuted for intellectual property‑related crimes, a 45.5% rise year on year. Moving forward, the Supreme People’s Procuratorate will continue to deepen the special campaign “Procuratorial Protection of Enterprises,” strengthen judicial protection of property rights, prevent and rectify the use of administrative and criminal measures to interfere with economic disputes, improve mechanisms for legally identifying and correcting wrongful cases involving enterprises, and ensure consistent, equal legal protection for all types of business entities. It will also enhance coordination and cooperation with other law enforcement and judicial authorities, further pooling efforts to address pressing issues affecting businesses.

The Provisional Rules on Ad Hoc Arbitration of the Shanghai Arbitration Association Have Been Issued.
Recently, the Shanghai Arbitration Association published the “Provisional Rules on Ad Hoc Arbitration of the Shanghai Arbitration Association,” comprising five chapters and 58 articles.
The Rules apply to four categories of foreign-related commercial and maritime disputes with Shanghai, China, as the seat of arbitration. They set forth the fundamental principles of ad hoc arbitration and specify provisions that bear the hallmarks of ad hoc arbitration, such as the ad hoc arbitration agreement, the seat of arbitration, and the designated institution. The Rules also outline the procedural framework for ad hoc arbitration cases, covering key procedures including the mode of hearing, the submission of the statement of claim and the statement of defence, challenges to the validity of the arbitration agreement and jurisdictional objections, amendments to the claims or counterclaims, joinder of parties and consolidation of proceedings, interim measures and other provisional remedies, evidence, experts and expert witnesses, default proceedings, suspension of proceedings, withdrawal of the arbitration application, and early dismissal proceedings. Furthermore, the Rules clarify the scope of cases eligible for the expedited procedure and the corresponding special provisions, among other matters.

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