JC Master Legal News Issue 1122

Key Takeaways for This Issue

Two departments have streamlined cross-border fund management for QFII and RQFII.
The People’s Bank of China and the State Administration of Foreign Exchange have revised and issued the Regulations on the Management of Funds for Domestic Securities and Futures Investments by Overseas Institutional Investors, which will take effect on August 26, 2024.
The State Council has issued a five-year action plan to deepen the implementation of a people-centered new urbanization strategy.
On July 31, the Chinese Government Website released the “Notice on Issuing the Five-Year Action Plan for Deeply Implementing the People-Centered New-Type Urbanization Strategy.”
The National Development and Reform Commission plans to revise the Measures for the Administration of Bid Evaluation Experts and the Bid Evaluation Expert Database.
On July 31, the National Development and Reform Commission’s website published an announcement soliciting public comments on the “Measures for the Administration of Bid Evaluation Experts and the Bid Evaluation Expert Database (Draft for Public Comment).” The deadline for submitting feedback is August 29.
The Ministry of Justice is soliciting public comments on the “Regulations of the State Council on the Handling of Foreign-related Intellectual Property Disputes.”
On July 29, the Ministry of Justice website published the “Notice on Soliciting Public Comments on the ‘Regulations of the State Council on the Handling of Foreign-related Intellectual Property Disputes (Draft for Public Comment)’,” with the deadline for submitting feedback set for August 28.
Finance & Capital Markets
The central bank plans to further strengthen credit information security management.
The People’s Bank of China plans to amend certain provisions of Document Yinfa [2018] No. 102 and has drafted the “Notice on Amendments to the ‘People’s Bank of China Notice on Further Strengthening the Security Management of Credit Information’ (Exposure Draft).” The deadline for submitting comments is August 25, 2024.

Compared with the “Notice of the People’s Bank of China on Further Strengthening the Security Management of Credit Information” (Yin Fa [2018] No. 102), the draft for public comment primarily revises the following three aspects:
(1) Amending certain regulatory measures, the annual assessment and rating system for credit reporting compliance and information security, and the credit reporting information security inspection system, among others;
(2) Certain operational rules have been revised, covering aspects such as the inquiry, circulation, and management of credit information.
(3) The management of credit information security by credit reporting agencies, credit rating agencies, and their accessing institutions shall be governed by the Interim Measures for the Administration of the Credit Rating Industry and the Measures for the Administration of Credit Reporting Business, and shall no longer be subject to the provisions set forth in this notice.

The Implementing Rules of the Regulations on the Supervision and Administration of Non-Bank Payment Institutions Have Been Issued, Further Clarifying Payment Business Rules.
The People’s Bank of China has published the Implementing Rules for the Regulations on the Supervision and Administration of Non-Bank Payment Institutions, which shall take effect from the date of their promulgation.

The Implementing Rules comprise six chapters and seventy-seven articles, covering general provisions, establishment, amendment, and termination, payment‑business rules, supervision and administration, legal liabilities, and supplementary provisions. They are primarily structured in accordance with the list of administrative licensing matters set out in the Regulations, detailing the application materials, licensing conditions, and approval procedures for the establishment, amendment, and termination of payment institutions, thereby continuously enhancing the transparency of regulatory rules and optimizing the business environment. The Rules also clarify the specific classification of payment services and the transitional arrangements for licensing new and existing businesses, ensuring a smooth transition; prescribe mechanisms for safeguarding user rights and requirements for adjusting fee standards; specify procedural requirements applicable to reporting major matters and risk events, as well as to enforcement inspections; strengthen穿透式 (penetrative) oversight of payment institution equity, preventing non‑major shareholders or beneficial owners from circumventing regulation through concerted action arrangements or other means; and mandate that existing payment institutions meet relevant establishment criteria, including minimum net assets and the required ratio between net assets and the average daily balance of reserve funds, prior to the end of the transition period.

Two departments have streamlined cross-border fund management for QFII and RQFII.
The People’s Bank of China and the State Administration of Foreign Exchange have revised and issued the Regulations on the Management of Funds for Domestic Securities and Futures Investments by Overseas Institutional Investors, which will take effect on August 26, 2024.

The newly revised Regulations: First, further streamline business registration procedures. It clarifies that business registration for Qualified Foreign Institutional Investors and Renminbi Qualified Foreign Institutional Investors (QFII/RQFII) is conducted through the primary reporting entity (the custodian) on the State Administration of Foreign Exchange’s Digital SAFE platform, while also specifying the handling of registration amendments and cancellations. Second, further optimize account management by consolidating RMB‑denominated special deposit accounts used for securities or derivatives trading, thereby reducing the number of accounts that market participants must open to engage in different types of investments. Third, further refine foreign exchange management by optimizing the administration of cross‑border capital flows under the QFII/RQFII framework and improving the principles governing the currencies used for inflows and outflows. Fourth, standardize the foreign‑exchange risk‑management regime for QFII/RQFII and direct access to the interbank bond market (CIBM). It specifies that QFII/RQFII may conduct spot foreign‑exchange transactions and trade foreign‑exchange derivatives through additional channels—such as domestic financial institutions authorized to conduct foreign‑exchange settlement and sales, or the interbank foreign‑exchange market—beyond their custodians.

Multiple ministries and commissions have jointly introduced 34 measures to promote high-quality financial development in Tianjin.
The People’s Bank of China, the National Administration of Financial Regulation, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and the Tianjin Municipal People’s Government recently jointly issued the “Opinions on Financial Support for Tianjin’s High-Quality Development.”

The “Opinions” set forth 34 key tasks and supporting measures across seven areas: strengthening financial support for technological innovation and leveraging fintech; promoting the deep integration of finance and digital technologies; improving the green finance system; accelerating the development of inclusive finance and pension‑related financial services; optimizing free trade pilot zones and cross‑border financial services; fostering high‑quality, regionally distinctive financial development by building on local strengths; and reinforcing financial regulation to prevent and defuse financial risks. The document also calls for enhancing digital financial supervision, bolstering the application of regulatory technology and digital risk assessment, elevating the digitalization of financial oversight, and strengthening risk management in the context of digital transformation. Furthermore, it emphasizes robust protection of financial data security, guides financial institutions in establishing mechanisms for digital information disclosure, and seeks to refine the governance framework for digital financial security.

Shanghai has outlined 24 initiatives to bolster the capital market’s support for science and technology enterprises and listed companies.
On July 31, the website of the Shanghai Municipal People’s Government published the “Implementation Opinions of the General Office of the Shanghai Municipal People’s Government on Further Leveraging the Capital Market to Promote High-Quality Development of Science and Technology Enterprises in the Municipality.” The document, effective from July 30, 2024, outlines 24 key tasks across six priority areas.

The Opinions propose incubating and nurturing high‑quality enterprises, optimizing the credit risk compensation policy for technology‑based SMEs, and continuing to advance the “upfront compensation” pilot program for intellectual property‑pledged loans. Focusing on key industries such as integrated circuits, artificial intelligence, and biopharmaceuticals, as well as emerging tracks and future‑oriented sectors, the measures will strengthen financial support and safeguard services for enterprises and cultivate a pipeline of companies poised for IPOs. Efforts will be made to facilitate corporate restructuring and listing, with district governments encouraged to provide fiscal incentives at different stages of SMEs’ restructuring and listing processes, supported by special transfer payments from the municipal treasury. Furthermore, the initiatives aim to promote the high‑quality development of listed companies by incorporating the market capitalization management performance of state‑controlled listed offices into the tenure‑based assessment framework, supporting the establishment of a series of M&A funds that cover priority sectors and fulfill critical functions, and assisting listed companies in expanding their global operations, among other measures.

The National Administration of Financial Regulation has issued the “Measures for Combating Insurance Fraud.”
On July 30, the website of the National Administration of Financial Regulation published the “Notice on Issuing the Measures for Combating Insurance Fraud.”
The Measures comprise six chapters and thirty-seven articles, primarily clarifying the objectives of anti-fraud efforts, proposing the establishment of an integrated working framework characterized by “regulatory guidance, institutional leadership, industry-wide joint prevention, and multi-stakeholder coordination,” defining the regulatory responsibilities for anti-fraud, specifying the duties and tasks of insurance institutions in this regard, delineating the division of responsibilities among relevant industry organizations, and setting forth requirements for external cooperation on anti-fraud matters.

The China Securities Regulatory Commission held its mid-year work conference to outline key priorities for the second half of the year.
On July 29, the China Securities Regulatory Commission convened a meeting to study and implement the spirit of the Third Plenary Session of the 20th CPC Central Committee and to review mid-year work, outlining plans to further comprehensively deepen capital market reform and to prioritize key tasks for the second half of the year.
The meeting noted that, in the next phase, priority should be given to the following tasks: first, ensuring the stable functioning of the market; second, providing stronger support to bolster the recovery and improvement of the real economy; third, advancing the stock issuance registration system in a substantive and effective manner; fourth, fostering high‑quality listed companies; fifth, focusing on preventing and defusing risks in key areas such as private equity funds, trading venues, bond defaults, and industry‑specific institutions; and sixth, significantly enhancing the effectiveness of regulatory oversight and law enforcement.

Commercial & Corporate
The Ministry of Finance plans to strengthen oversight and regulation of internal control assessments in administrative and public institutions.
The Ministry of Finance is soliciting public comments on the “Measures for the Evaluation of Internal Controls in Administrative and Public Institutions (Draft for Comments),” with the deadline for submitting feedback set for September 1, 2024.
The draft Measures consists of 6 chapters and 33 articles. In the General Provisions, it clarifies the purpose and legal basis of internal control evaluation within organizations, the applicable entities, definitions, fundamental principles, and basic requirements. Specifically, with respect to an organization’s self‑evaluation of internal control, the provisions primarily address the departments responsible, the scope of evaluation, the methods and procedures, the process for formulating evaluation results, the submission of reports, and the review by the competent authorities. As for departmental internal control evaluation, the provisions mainly set out the content, procedures, and reporting requirements for each department’s assessment of the overall status of its internal control system’s establishment and implementation.

The State Council has issued a five-year action plan to deepen the implementation of a people-centered new urbanization strategy.
On July 31, the Chinese Government Website released the “Notice on Issuing the Five-Year Action Plan for Deeply Implementing the People-Centered New-Type Urbanization Strategy.”
The Action Plan outlines the implementation of a new round of initiatives to promote the urbanization of rural migrants, enhance urbanization in areas with development potential, foster modern metropolitan circles, and upgrade urban renewal and safety resilience. It specifies that efforts will be advanced to renovate aging residential neighborhoods in urban areas, accelerate the construction of affordable housing, develop public infrastructure capable of dual-use during both routine and emergency situations, and transform urban villages. Additionally, it calls for strengthening urban flood‑control measures, implementing urban lifeline safety projects, and promoting the development of green, smart cities.

The Cyberspace Administration of China has launched a special campaign titled “Qinglang: Rectification of False and Vulgar Misconduct in the Online Live-Streaming Sector.”
Recently, the Cyberspace Administration of China issued a special notice to launch a month-long nationwide campaign titled “Qinglang: Rectification of False and Vulgar Misconduct in the Online Live-Streaming Sector.”
This special campaign targets the rampant issues of falsehood and vulgarity in the online livestreaming sector, with a focus on addressing five major problem areas. First, fabricating fake scenarios and personas to engage in unscrupulous sales‑driven marketing. Second, disseminating “pseudo‑science” and “pseudo‑knowledge” to mislead the public. Third, spreading “soft‑pornographic” content. Fourth, disrupting social order and infringing upon the rights and interests of others. Fifth, deceiving consumers by selling counterfeit or substandard goods.

The Ministry of Transport has issued arrangements for the qualification review of quality inspection agencies in the highway and waterway sectors.
On August 1, the website of the Ministry of Transport published the “Notice on Doing a Good Job in the Qualification Review of Quality Inspection Agencies for Highway and Waterway Projects.”
The Notice clarifies that, in accordance with the latest standards and specifications, certain parameter names shall be updated; parameters no longer required under current standards shall be removed; new testing parameters mandated by the standards shall be added; and the generic parameters used in traffic engineering specialties shall be consolidated, with corresponding adjustments made to the associated instruments and equipment. In strict compliance with the Ministry’s regulations, the key elements and relevant requirements pertaining to tiered point deductions in the expert scoring form must be further refined and explicitly defined as criteria for expert review. With regard to staffing, the professional composition of testing personnel, the number of individuals holding senior titles, and the requisite professional qualifications shall be specified in greater detail, with all such personnel requirements designated as mandatory. For instruments and equipment, verification and calibration requirements shall be clearly delineated to ensure their proper operation and the issuance of accurate, valid test data reports in accordance with applicable laws and regulations. As for environmental conditions, procedures for verifying whether on-site testing operations meet the relevant standard and specification requirements shall be refined. Finally, concerning the quality assurance system, critical verification areas—including sample management, the handling of inaccurate or falsified reports, report compliance, and the assessment of on-site testing practices—shall be further specified to guarantee the accuracy and validity of test reports.

The Ministry of Industry and Information Technology has issued the “Detailed Rules for the Administration of Key Special Projects under the National Key R&D Program, with the Ministry of Industry and Information Technology as the Principal Responsible Agency.”
On August 1, the website of the Ministry of Industry and Information Technology published the “Notice on Issuing the Implementation Rules for the Management of Key Special Projects under the National Key R&D Program Led by the Ministry of Industry and Information Technology.”
The Implementing Rules comprise eight chapters and seventy articles, clearly defining provisions on organizational management and responsibilities, the establishment of key special projects, the organization and management of project implementation, the administration and final evaluation of key special projects, diversified investment and financial management, as well as oversight and assessment. The implementation plan is aligned with national needs, focusing on the major scientific challenges to be addressed or the common critical technologies to be breakthroughs under each key special project. It systematically compiles lists of issues and objectives, rationally allocates the principal tasks across research and development stages—including basic research, major common critical technologies, and the commercialization of research outcomes—and specifies timelines for task deployment, anticipated landmark achievements, and performance‑evaluation criteria. Furthermore, it elaborates measures related to resource allocation, supporting mechanisms, division of responsibilities, technology transfer, and wider application and dissemination.

The Ministry of Industry and Information Technology plans to issue the “Regulations on Radio Management for Radar.”
On July 31, the website of the Ministry of Industry and Information Technology published the “Public Notice Soliciting Comments on the ‘Regulations on Radio Management for Radar (Trial) (Draft for Comments)’,” with a deadline for submitting feedback set for August 31.
The Regulations comprise five chapters and forty-two articles, clarifying provisions on radar radio‑frequency usage planning, the management of radar frequencies, stations, and transmitting equipment, as well as radar interference coordination. Specifically, for the use of radar radio frequencies whose detection range spans three or more provinces, a frequency‑use license must be obtained from the national radio administration; in all other cases, such a license shall be sought from the provincial radio administration at the location where the radar is to be installed.

The Ministry of Natural Resources has issued the “Administrative Measures for the Provision of Classified Surveying and Mapping Results to Foreign Entities.”
On July 31, the website of the Ministry of Natural Resources published the “Notice on Issuing the Measures for the Administration of the Provision of Classified Surveying and Mapping Results to Foreign Entities.”
The Measures define the scope of classified surveying and mapping results and establish a tiered approval system: applications to disclose classified surveying and mapping results in the context of foreign exchanges and cooperation activities approved by the State Council or its constituent departments shall be reviewed and approved by the Ministry of Natural Resources; applications arising from foreign exchanges and cooperation activities approved by people’s governments at the provincial level or below shall be reviewed and approved by the local provincial natural resources authority. The Measures also set forth three specific conditions for applying to disclose classified surveying and mapping results, the documents that must be submitted with such applications, and four circumstances under which approval will be denied.

The State Administration for Market Regulation has announced the procedures for receiving and handling reports of fair competition reviews.
On August 1, the State Administration for Market Regulation publicly announced on its official website the channels for receiving reports on fair competition reviews. These channels include telephone, mail, and email. Any organization or individual may report policy measures that violate the provisions of the Regulations on Fair Competition Review to the State Administration for Market Regulation.
The telephone number for receiving reports on fair competition reviews is 010-88651957, and the email address is gpjzsc@samr.gov.cn. Reporting materials typically include the reporter’s basic information, details of the drafting agency responsible for the relevant policy or measure, specific circumstances and grounds alleging violations of the Regulations on Fair Competition Review, as well as whether the same facts have already been reported to other authorities, subject to administrative reconsideration, or brought before a people’s court in an administrative lawsuit. Reporters shall be responsible for the veracity of their submissions, and anonymous reporting is not encouraged.

The Ministry of Ecology and Environment plans to revise the national standard “Emission Standards for Coalbed Methane (Coal Mine Gas).”
On July 31, the website of the Ministry of Ecology and Environment published the “Notice on Public Solicitation of Comments on the National Standard ‘Emission Standards for Coalbed Methane (Coal Mine Gas)’ (Revised Draft for Comment),” with a deadline for submitting feedback set for August 31.
The Standard specifies requirements for the extraction of coalbed methane (coal mine gas), as well as for emission control, monitoring, and implementation and oversight. It applies to the management of gas emission control in existing mines and surface‑based coalbed methane development systems, and to the environmental impact assessment, design, completion acceptance, and post‑construction management of gas emission control for new mines and new surface‑based coalbed methane development projects.

The National Medical Products Administration has issued the Guiding Principles for On-site Inspections of the Quality Management Regulations for Medical Device Operations.
On July 30, the National Medical Products Administration published on its website the “Notice on Issuing the Guiding Principles for On-site Inspections of the Good Management Practice for Medical Device Operations.”
The “Guiding Principles” apply to on-site inspections conducted by drug regulatory authorities, in accordance with the “Regulations,” for license applications (including amendments and renewals) or post‑registration inspections of medical device operators, as well as other types of supervisory and inspection activities. During such inspections, medical device operators may, based on their business model, scope of operations, product portfolio, and other relevant characteristics, identify appropriate items that may be omitted and provide a written explanation of the rationale, which shall be conofficeed by the inspection team of the drug regulatory authority.

The National Medical Products Administration has issued the Pilot Work Plan for Optimizing the Review and Approval Process of Clinical Trials for Innovative Drugs.
On July 31, the National Medical Products Administration (NMPA) website published the “Notice on Issuing the Pilot Work Plan for Optimizing the Review and Approval of Clinical Trials for Innovative Drugs.”
The Work Plan specifies that the pilot program covers clinical trial applications for Class 1 innovative drugs, excluding cell and gene therapy products and vaccine products. Applicants are not subject to geographic restrictions; they must have obtained approval for at least three innovative drug clinical trial applications, both domestically and internationally, possess extensive experience in conducting clinical trials and managing pharmacovigilance, and be able to conduct a comprehensive risk assessment of the clinical trial project and develop an effective risk management plan prior to submitting the clinical trial application.

Two departments have introduced subsidies for the scrapping and replacement of aging commercial freight vehicles.
On July 31, the website of the Ministry of Transport published the “Notice on Implementing the Scrapping and Renewal of Old and Outdated Commercial Freight Vehicles.”
The Notice clarifies that it will support the scrapping of in-service diesel trucks meeting National Emission Standard III or lower, and accelerate the replacement of a batch of high‑standard, low‑emission trucks. Subsidies will be provided on a tiered basis for: the early scrapping of in-service diesel trucks meeting National Emission Standard III or lower; the early scrapping of such vehicles followed by the purchase of new trucks compliant with National Emission Standard VI or new‑energy trucks; and the purchase of eligible new‑energy trucks only. Vehicles that have already received funding from other central government sources will not be eligible for this round of subsidies. The above subsidy policy will be in effect from the date of issuance of this document through December 31, 2024.

Two departments have issued the “Detailed Rules for Implementing Subsidies for the Renewal of New-Energy City Buses and Power Batteries.”
On July 31, the website of the Ministry of Transport published the “Notice on Issuing the Implementation Rules for Subsidies for the Renewal of New-Energy City Buses and Power Batteries.”
The Implementation Rules consist of five chapters and sixteen articles, specifying that subsidy funds will support the replacement of urban buses aged eight years or older—i.e., those registered on or before December 31, 2016—and the replacement of power batteries in new‑energy urban buses. Applicants seeking subsidy funds must submit their applications to the local transportation authority promptly upon completing the renewal of new‑energy urban buses and the replacement of their power batteries, with a deadline of January 20, 2025. The average subsidy per vehicle is RMB 60,000, of which RMB 80,000 is provided for the renewal of new‑energy urban buses and RMB 42,000 for the replacement of power batteries.

Beijing and Shanghai Adjust the 2024 Annual Housing Provident Fund Contribution Base
On July 31, the Beijing Housing Provident Fund Management Center published the “Notice on Matters Related to Housing Provident Fund Contributions for the 2024 Contribution Year” on its website. The notice specifies that, for the 2024 contribution year, the monthly contribution base ceiling is RMB 35,283, while the monthly contribution base floor is RMB 2,420.
The official WeChat account of the Shanghai Housing Provident Fund has issued the “Notice on Adjusting the 2024 Base Salary, Contribution Rates, and Monthly Contribution Caps and Floors for the Shanghai Housing Provident Fund.” The notice specifies that the maximum base salary for housing provident fund contributions shall not exceed RMB 36,921, while the minimum shall be no less than RMB 2,690.

The General Administration of Customs has strengthened risk management and may simultaneously implement multiple risk‑mitigation measures.
On July 30, the General Administration of Customs promulgated the Measures for the Administration of Customs Risks of the People’s Republic of China, which will take effect on December 1, 2024.
The Measures apply to customs authorities in carrying out risk management activities—such as risk information collection, risk assessment, and risk处置—aimed at preventing and controlling prohibited or restricted items, ensuring port public health security, safeguarding national biosecurity, ensuring food safety, maintaining product quality and safety, protecting tax revenue, mitigating risks of intellectual property infringement, and addressing other cross-border security risks associated with inbound and outbound means of transport, transport equipment, personnel, goods, and articles. The Measures stipulate that, based on the conclusions of risk assessments, customs may, in accordance with the law, adopt one or more risk处置 measures commensurate with the level of risk, including: adjusting the scope and frequency of supervisory and administrative measures such as document verification, inspection, examination, audit, and verification; modifying conformity assessment procedures, quarantine measures, and guarantee standards; and approving, suspending, or revoking relevant qualifications for the import and export of specific goods into or from China.

The Ministry of Natural Resources has issued a document to strengthen the security management of surveying and mapping geographic information related to intelligent connected vehicles.
On July 29, the website of the Ministry of Natural Resources published the “Notice on Strengthening the Security Management of Surveying and Mapping Geographic Information Related to Intelligent Connected Vehicles.”
The Notice comprises ten provisions, clearly stipulating the need to strengthen the management of surveying and mapping activities involving intelligent connected vehicles, strictly regulate the handling of classified and sensitive geographic information data, and reinforce oversight over measured products—such as navigation electronic maps, real‑world imagery, and point clouds—that constitute state secrets, as well as geographic information data (including scene databases) collected, gathered, stored, transmitted, and processed by intelligent connected vehicles that contain classified or sensitive content. It prohibits the unauthorized disclosure of classified or sensitive geographic information and mandates rigorous review and approval for navigation electronic maps. Furthermore, geographic information data collected by intelligent connected vehicles for navigation‑related purposes and for map production and updating shall be transmitted directly to entities holding qualifications for the production and surveying of navigation electronic maps for management; no other organizations or individuals may access such data.

The Political Bureau of the CPC Central Committee convened a meeting to analyze and assess the current economic situation and economic work.
On July 30, the Political Bureau of the CPC Central Committee convened a meeting to analyze and assess the current economic situation, outline economic priorities for the second half of the year, and deliberate on the “Several Provisions on Rectifying Formalism and Reducing Burdens at the Grassroots Level.”
The meeting noted that the adverse impacts stemming from the evolving external environment are mounting, domestic effective demand remains insufficient, economic performance is showing divergent trends, risks and vulnerabilities in key sectors persist, and the transition from old to new growth drivers continues to face significant challenges. The meeting emphasized the need to improve fundamental market‑economy institutions—such as property‑rights protection, market access, and bankruptcy‑related exit mechanisms—and to prevent and rectify instances where certain localities resort to administrative or criminal measures to interfere with economic disputes. It also called for accelerating the issuance and deployment of special-purpose bonds, making full use of ultra‑long‑term special government bonds to support major national strategies and the enhancement of security capabilities in priority areas, and stepping up efforts to promote large‑scale equipment upgrades and trade‑in programs for durable consumer goods. Furthermore, the meeting underscored the importance of fully implementing the “zero‑tolerance” requirement for lifting foreign‑investment access restrictions in the manufacturing sector and introducing a new round of pilot initiatives to further open up the services sector. Finally, it urged active support for acquiring existing commercial housing stock for use as affordable housing and for expediting the establishment of a new model for real estate development, among other measures.

The Ministry of Ecology and Environment plans to revise the Regulations on Hearing Procedures for Administrative Penalties in the Field of Ecology and Environment.
On July 30, the website of the Ministry of Ecology and Environment published the “Letter on Public Solicitation of Comments on the ‘Regulations on Hearing Procedures for Administrative Penalties in the Field of Ecology and Environment (Draft for Comments)’,” with a deadline for submitting feedback set for August 16.
Following the revision, the Regulations have been reduced from the original six chapters and 48 articles to five chapters and 25 articles. The former Chapter 2, “Scope of Application of Hearings,” has been merged into Chapter 1, “General Provisions.” Chapters 2, 3, and 4 have been renumbered as “Hearing Officers and Hearing Participants,” “Preparation for the Hearing,” and “Conduct of the Hearing,” respectively. The principal amendments address the scope of hearing applicability, clarify the categories of hearing officers and participants, streamline procedures for providing notice and notification, adjust the time limits for submitting hearing requests, refine the hearing process, and revise the hearing deadlines.

The National Development and Reform Commission plans to revise the Measures for the Administration of Bid Evaluation Experts and the Bid Evaluation Expert Database.
On July 31, the National Development and Reform Commission’s website published an announcement soliciting public comments on the “Measures for the Administration of Bid Evaluation Experts and the Bid Evaluation Expert Database (Draft for Public Comment).” The deadline for submitting feedback is August 29.
The Measures consist of seven chapters and thirty-six articles, clearly setting forth provisions on the basic qualifications of bid evaluation experts, the establishment of the expert pool, routine management of such experts, the selection and sharing of experts, and oversight and supervision. They stipulate that bid evaluation experts shall bear lifelong responsibility for their evaluation activities and shall not be exempt from accountability on grounds of retirement or termination of their appointment with the unit that established the expert pool. The entity responsible for establishing the expert pool shall verify and address instances in which an expert fails to fulfill the obligations set forth in Article 9 of these Measures, and shall notify the expert’s employing organization or, if retired, the expert’s former employer of the outcome of such handling.

The State Administration for Market Regulation has issued a document to advance credit-risk-based classification management for individual business households.
On July 30, the website of the State Administration for Market Regulation published the “Opinions on Promoting Credit Risk-Based Classification Management for Individual Industrial and Commercial Households.”
The Opinions clearly stipulate the need to strengthen the data foundation for classifying credit risks among individual business households, achieve scientific and precise risk classification, establish a standardized labeling system for such entities, and implement refined regulatory measures. This will support effective market oversight, enhance overall regulatory efficiency, and foster the sound development of the individual economy.

The China SME Service Network Has Officially Launched
Recently, the China SME Service Network was officially launched. It has now established connectivity and coverage across existing provincial-level SME service platforms and city‑level service platforms, offering small and medium-sized enterprises round-the-clock, one-stop intelligent services available 24/7.
The China SME Service Network is a comprehensive online service platform organized, built, and operated by the Ministry of Industry and Information Technology. Leveraging next-generation information technologies such as big data, cloud computing, and artificial intelligence, it brings together a wide array of service resources, offering diverse functions—including policy search, market access, talent recruitment, financing assistance, training opportunities, computing power provision, and service matchmaking—along with self-assessment tools for enterprises.

The Ministry of Industry and Information Technology has revised the “Normative Conditions for the Industrial Robot Industry.”
On July 30, the website of the Ministry of Industry and Information Technology published Announcement No. 20 of 2024, issuing the “Normative Conditions for the Industrial Robot Industry (2024 Edition)” and the “Administrative Measures for the Implementation of Normative Conditions in the Industrial Robot Industry (2024 Edition).”
The “Criteria” comprise nine areas and thirty-two specific items, encouraging enterprises to voluntarily apply for public announcement of compliance in accordance with the prescribed standards. It stipulates that applicant companies must establish a dedicated R&D team or department, possess digital R&D and design capabilities for their products (including both hardware and software), and be able to design and develop tailored solutions based on customer requirements. Furthermore, they are required to have a digital workshop or an intelligent factory, deploy smart manufacturing equipment, integrate relevant industrial software and networking systems, and be capable of implementing standardized process‑based production workflows.

The Ministry of Housing and Urban–Rural Development has issued a standard that clearly defines the criteria for identifying major safety hazards in housing and municipal engineering projects.
The Department of Engineering Quality and Safety Supervision of the Ministry of Housing and Urban–Rural Development has issued a notice soliciting public comments on the “Criteria for Identifying Major Safety Hazards in Housing and Municipal Engineering (2024 Edition) (Draft for Comments),” with the deadline for submitting feedback set for August 10.
This standard applies to the identification of major production safety hazards in municipal engineering projects involving new construction, expansion, reconstruction, or demolition. The draft for public comment specifies that five scenarios—such as “a construction enterprise engaging in construction activities without a valid safety production license or undertaking projects beyond (or without) the required qualifications”—constitute major accident hazards.

The State Post Bureau has issued the “Guiding Opinions on the Layout and Construction of National Postal and Express Logistics Hubs.”
Recently, the State Post Bureau issued the “Guiding Opinions on the Layout and Construction of National Postal and Express Logistics Hubs.”
The “Guiding Opinions” set forth the following overarching principles: First, to meet the delivery needs of both smooth global trade flows and the domestic circulation loop, leverage key air, rail, and road ports, as well as free trade pilot zones, the Hainan Free Trade Port, cross-border e‑commerce comprehensive pilot zones, and border (cross‑border) economic cooperation zones, to establish global and regional international postal and express logistics hubs. Second, to better support and underpin the national strategy for coordinated regional development, take into account the balanced development of the eastern, central, western, and northeastern regions, and locate national postal and express logistics hubs in cities with favorable transportation locations, strong economic potential, robust market vitality, high international competitiveness, and significant regional spillover effects. Third, to ensure effective integration with the national comprehensive three‑dimensional transportation network and the modern logistics system, prioritize the placement of national postal and express logistics hubs in national comprehensive transportation hub cities, national strategic nodes for circulation, and cities serving as carriers of national logistics hubs. Fourth, to establish national postal and express logistics hubs in cities where the postal and express delivery market is large, business operations are extensive, outreach is strong, and enterprise‑driven hubs are densely concentrated.

The Ministry of Justice is soliciting public comments on the “Regulations of the State Council on the Handling of Foreign-related Intellectual Property Disputes.”
On July 29, the Ministry of Justice website published the “Notice on Soliciting Public Comments on the ‘Regulations of the State Council on the Handling of Foreign-related Intellectual Property Disputes (Draft for Public Comment)’,” with the deadline for submitting feedback set for August 28.
The Regulations comprise twelve articles, requiring enterprises to strengthen compliance management, intensify publicity and training efforts, and enhance their capacity to handle foreign-related intellectual property disputes. They also encourage insurance institutions to offer insurance products related to foreign‑related intellectual property matters and support enterprises in establishing mutual aid funds for the protection of foreign‑related intellectual property rights, thereby reducing the costs of rights enforcement.

The National Intellectual Property Administration has outlined 10 tasks to strengthen and enhance the intellectual property value chain in key industries.
On July 29, the website of the National Intellectual Property Administration published the “Notice on Issuing the ‘Several Measures for Strengthening and Enhancing the Value Chain of Intellectual Property in Key Industries.’”
The “Several Measures” outlines ten key tasks across four areas—strengthening the foundation, enhancing efficiency, reinforcing coordination, and mitigating risks—aiming to leverage the enabling and supporting role of intellectual property, promote industrial chain strengthening and efficiency gains, and set forth specific requirements for standard‑essential patents, industrial intellectual property operation centers, industry‑wide intellectual property innovation consortia, patent pools, and related initiatives. Specifically, the first of these four tasks is “strengthening high‑quality IP creation to bolster the competitiveness of key industries”; the second is “accelerating the commercialization of patents and scaling up the economic benefits of key industries”; the third is “establishing a collaborative mechanism for industrial IP development and optimizing the innovation ecosystem of priority sectors”; and the fourth is “coordinating international cooperation and competition in the IP field to effectively safeguard industrial security.”

The National Intellectual Property Administration has issued guiding opinions to comprehensively enhance the effectiveness of public intellectual property services.
On July 30, the website of the National Intellectual Property Administration published the “Guiding Opinions on Comprehensively Enhancing the Efficiency of Public Intellectual Property Services.”
The “Guiding Opinions” comprise five key areas and sixteen specific measures, clearly emphasizing the need to strengthen support for tackling critical technological challenges, thereby driving high-quality intellectual property creation; focusing on patent commercialization to jointly promote the efficient utilization of intellectual property; improving collaborative governance to underpin high-standard IP protection; and enhancing targeted guidance to elevate the quality and effectiveness of public IP services.

Taxation
The Ministry of Finance has issued new requirements for management accounting: develop application guidelines by category and strengthen related data governance.
The Ministry of Finance is soliciting public comments on the “Guiding Opinions of the Ministry of Finance on Further Strengthening the Application of Management Accounting (Draft for Comments),” with the deadline for submitting feedback set for September 1, 2024.
The “Opinions” comprise three parts: general requirements, key tasks and measures, and work requirements. In light of the current challenges, pain points, and bottlenecks faced by various entities in applying management accounting, the rapid advancement of digital technologies, and the pressing need to expand the functions of accounting, the document sets forth a number of new tasks, measures, and requirements. Specifically, the key tasks and measures outline 21 concrete initiatives across five distinct areas.
The Opinions propose to develop and issue application guidelines for management accounting. For large and medium-sized enterprises, the focus will be on formulating application guidelines that highlight typical business activities across different industries, thereby strengthening methodological guidance for building a robust management accounting system. For small and medium-sized enterprises, the aim is to develop application guidelines that integrate multiple management accounting tools, among other measures. The Opinions also call for bolstering data governance related to management accounting, with efforts to establish standards for such governance and to standardize the implementation of data governance practices within organizations.

The Ministry of Finance convened a meeting to study a tax system that aligns with new business models and to standardize tax preferential policies.
On July 29, the Ministry of Finance convened a special meeting to thoroughly study and implement the spirit of the Third Plenary Session of the 20th CPC Central Committee. Lan Fo’an, Secretary of the Party Group and Minister of the Ministry of Finance, attended the meeting and delivered a speech.
The meeting called for steadfastly advancing the deepening reform of the fiscal and taxation systems and fully implementing the decisions and arrangements adopted at the plenary session. First, we will improve the budgetary system and vigorously promote scientific fiscal management. Second, we will refine the tax system, optimize its structure, and foster high-quality development, social equity, and a unified market. We will study tax regimes that are suited to new business models, standardize tax preferential policies, and enhance support mechanisms for key areas and critical links. We will also regulate tax policies on business income, capital income, and property income; implement a unified tax regime for labor‑related income; improve the value‑added tax credit‑refund policy and the input‑output tax chain; and deepen reforms in tax collection and administration. Third, we will establish a central–local fiscal relationship characterized by clear division of powers and responsibilities, coordinated financial resources, and regional balance, while increasing local governments’ autonomous fiscal capacity.

LITIGATION & ARBITRATION
The State Council Executive Meeting approved in principle the draft amendment to the Arbitration Law.
On July 31, the State Council Executive Meeting was held to study and implement the spirit of General Secretary Xi Jinping’s important speech on the current economic situation and on doing a good job in the second-half‑year economic work, and to deliberate the Draft Amendment to the Arbitration Law of the People’s Republic of China and the Draft National Parks Law of the People’s Republic of China.
The meeting deliberated and approved in principle the Draft Amendment to the Arbitration Law of the People’s Republic of China and the Draft National Parks Law of the People’s Republic of China, and decided to submit both drafts to the Standing Committee of the National People’s Congress for review. The meeting emphasized the need to better leverage arbitration in supporting economic development and expanding opening-up, proactively align with internationally advanced standards, continuously enhance the credibility and international influence of China’s arbitration system, and actively foster a first-class business environment that is market‑oriented, law‑based, and globally competitive.

The Supreme People’s Procuratorate has released typical cases and examples of safeguarding national defense interests and the legitimate rights and interests of military personnel and their families.
On July 31, the Supreme People’s Procuratorate website published typical cases demonstrating how procuratorial organs have, in accordance with the law, safeguarded national defense interests and the legitimate rights and interests of military personnel and their families.
This batch comprises 10 exemplary cases, which have rigorously cracked down on military-related illegal and criminal activities, promoted source‑level governance of related issues, and safeguarded national and public interests through prosecutorial recommendations and litigation. By adopting a multi‑pronged approach, these efforts have effectively strengthened judicial assistance and protection for service members and their families, while establishing a new model of collaborative prosecution between military and civilian authorities. In the civil public interest lawsuit brought by the Langfang Municipal People’s Procuratorate in Hebei Province against a certain surveying and mapping institute and an individual surnamed Lin for infringing upon national defense and military interests, the military and local procuratorial organs worked closely to address disruptions to airspace control in the capital region—such as unauthorized “low‑altitude, slow‑moving, small” aircraft flights—that undermined management order and resulted in losses to national defense and combat readiness resources. They held the relevant offenders accountable for their tortious acts, sought compensation for the losses incurred, and ordered them to issue a public apology through national‑level media.

The Ministry of Justice is soliciting public comments on the “Regulations of the State Council on the Handling of Foreign-related Intellectual Property Disputes.”
On July 29, the Ministry of Justice website published the “Notice on Soliciting Public Comments on the ‘Regulations of the State Council on the Handling of Foreign-related Intellectual Property Disputes (Draft for Public Comment)’,” with the deadline for submitting feedback set for August 28.
The Regulations comprise twelve articles, requiring enterprises to strengthen compliance management, intensify publicity and training efforts, and enhance their capacity to handle foreign-related intellectual property disputes. They also encourage insurance institutions to offer insurance products related to foreign‑related intellectual property matters and support enterprises in establishing mutual aid funds for the protection of foreign‑related intellectual property rights, thereby reducing the costs of rights enforcement.

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