JC Master Legal News Issue 1120

Key Takeaways for This Issue

The Party Committee of the China Securities Regulatory Commission conveyed and implemented the spirit of the Third Plenary Session of the 20th CPC Central Committee.
On July 19, Wu Qing, Secretary of the CPC Committee and Chairman of the China Securities Regulatory Commission, presided over an expanded meeting of the Party Committee to convey and study the spirit of the Third Plenary Session of the 20th CPC Central Committee and to deliberate on measures for its implementation.
Communiqué of the Third Plenary Session of the 20th Central Committee: We will deepen reform of the foreign trade system and further reform the systems for managing foreign investment and outbound investment.
The Third Plenary Session of the 20th Central Committee of the Communist Party of China was held in Beijing from July 15 to 18, 2024. On July 18, the session adopted a communiqué. The plenary session also reviewed and approved the “Decision of the CPC Central Committee on Further Comprehensively Deepening Reform and Advancing Chinese‑style Modernization.”
The Ministry of Finance plans to issue the “Measures for the Supervision and Inspection of Government Procurement Agencies.”
On July 18, the Ministry of Finance’s website published the “Notice on Soliciting Public Comments on the ‘Measures for the Supervision and Inspection of Government Procurement Agencies (Draft for Comments)’,” with a deadline for submitting feedback set for August 17.
The Supreme People’s Court Answers Questions from the Press on the Judicial Interpretation Regarding the Temporal Effect of the Company Law
Recently, a responsible official from the Second Civil Division of the Supreme People’s Court granted an interview and answered questions from reporters regarding the “Several Provisions of the Supreme People’s Court on the Temporal Effectiveness of the Application of the Company Law of the People’s Republic of China.”
Finance & Capital Markets
The Party Committee of the China Securities Regulatory Commission conveyed and implemented the spirit of the Third Plenary Session of the 20th CPC Central Committee.
On July 19, Wu Qing, Secretary of the CPC Committee and Chairman of the China Securities Regulatory Commission, presided over an expanded meeting of the Party Committee to convey and study the spirit of the Third Plenary Session of the 20th CPC Central Committee and to deliberate on measures for its implementation.

The meeting concluded that the Third Plenary Session of the 20th CPC Central Committee was a highly significant gathering convened at a pivotal juncture in the endeavor to advance national rejuvenation and build a modern socialist country through Chinese‑style modernization. General Secretary Xi Jinping’s important address set the course and provided overarching guidance, exhibiting profound ideological depth, strategic vision, and practical direction. The Decision of the CPC Central Committee on Further Comprehensively Deepening Reform and Advancing Chinese‑Style Modernization, adopted at the session, offers an in‑depth analysis of the new circumstances and challenges confronting the pursuit of Chinese‑style modernization, and lays out a well‑conceived, comprehensive plan for deepening reform across all fronts in support of this goal. It stands as a programmatic document guiding the next stage of comprehensively deepening reform.

The meeting pointed out that reform and opening-up is the crucial move that has determined the destiny of contemporary China. Since the 18th National Congress of the Communist Party of China, the Party Central Committee with Comrade Xi Jinping at its core, demonstrating great historical initiative, tremendous political courage, and a strong sense of political responsibility, has incorporated the comprehensive deepening of reform into the “Four Comprehensives” strategic layout, put forward a series of new ideas, perspectives, and conclusions, and ushered in a new era of comprehensively deepening reform and advancing it through systematic, holistic design. This has propelled historic transformations, systemic reshaping, and overall reconstruction across many fields. The attainment of these historic achievements is fundamentally attributable to General Secretary Xi Jinping’s leadership and the scientific guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. Standing at a new historical starting point, the CSRC system must earnestly raise its political awareness, deeply understand and grasp the themes, major principles, key measures, and fundamental guarantees of further comprehensively deepening reform, ensure that both thought and action are aligned with the decisions and arrangements of the Party Central Committee, officely uphold the “two establishments,” and resolutely practice the “two safeguards.”

The meeting emphasized that the capital market is both a product of reform and has continuously grown and strengthened through the reform process. This plenary session laid out clear plans for comprehensively deepening capital market reform. The CSRC system must consciously uphold and safeguard the CPC Central Committee’s centralized and unified leadership over capital market work, focus tightly on the central task of advancing Chinese‑style modernization, officely grasp high‑quality development as the fundamental principle of the new era, and prioritize strengthening fundamentals and reinforcing the regulatory framework while enforcing rigorous oversight and management. It should continue to use reform to promote stability, drive development, improve services, and build a strong workforce, resolutely pushing forward the comprehensive deepening of capital market reform. First, we must persist in using reform to address the deep‑seated contradictions and problems that constrain the capital market’s steady and sound development, thereby enhancing its intrinsic stability. Second, we will further enhance the capital market’s inclusiveness and adaptability to technological innovation, foster and expand patient capital, deliver on the five major financial priorities, and guide more resources and factors of production toward new‑type productive forces. Third, we will refine institutional mechanisms for robust and stringent regulation, strengthen end‑to‑end oversight of listed companies, vigorously bolster investor protection, and reinforce regulatory accountability. Fourth, we will balance development with security, implement the requirements for early identification, early warning, early exposure, and early resolution of risks, improve risk prevention and mitigation mechanisms in key areas such as bond defaults, private equity, and trading venues, and ensure the safe operation of capital market infrastructure. Fifth, we will engage in self‑revolution, conduct thorough rectification following the central inspection, deepen Party discipline education, unswervingly uphold proper conduct, enforce strict discipline, and combat corruption, thus building a highly disciplined and capable regulatory force.

The meeting emphasized that thoroughly studying and implementing the spirit of the Third Plenary Session of the 20th CPC Central Committee is a major political task for the CSRC system, both now and in the period ahead. It called for strengthening organizational leadership, conducting in-depth study and publicity through diverse channels, and ensuring comprehensive, tiered, and category-specific training coverage. Efforts must be made with a tenacious, meticulous approach to ensure effective implementation of reforms, enhancing their systemic, holistic, and coordinated nature while resolutely guarding against formalism and bureaucratic practices. Furthermore, it is imperative to earnestly carry out the CPC Central Committee’s decisions and arrangements on economic work, solidly advance the implementation of the new “Nine Measures for National Development,” strengthen the functions of the multi-tiered capital market, and contribute to achieving the year’s economic and social development goals.

Members of the CPC Leadership Group of the China Securities Regulatory Commission, leading officials of the Discipline Inspection and Supervision Group stationed at the CSRC, and principal officials of the Shanghai, Shenzhen, and Beijing Stock Exchanges as well as the various departments and bureaus of the CSRC headquarters attended the meeting.

315 institutions have actively responded to the Shanghai Stock Exchange’s “Initiative on Rational, Value‑Based, and Long‑Term Investing in the Capital Market,” jointly embracing the “Three‑Investment” principles.
During the 2024 “May 15 National Investor Protection Public Awareness Day” campaign, the Shanghai Stock Exchange updated its 2022 “Capital Market Initiative on Value Investing and Long-Term Investment,” resulting in the issuance of the “Capital Market Initiative on Rational, Value‑Based, and Long‑Term Investing” (hereinafter referred to as the “Initiative”). The Exchange also launched a public call for co‑signing institutions, aiming to encourage more market participants to embrace the principles of rational, value‑based, and long‑term investing. To date, the Initiative has received enthusiastic support from all market stakeholders and broader segments of society, with a total of 315 institutions joining as co‑signatories.

The issuance of the “Initiative” aims to implement the important spirit articulated at the Central Financial Work Conference—“promoting the entry of medium- and long-term funds into the market and fostering a culture of rational, value‑based, and long‑term investing”—and to carry out the work arrangements set forth in the new “Nine Measures for National Financial Reform,” which call for “strongly encouraging medium- and long-term funds to enter the market and continuously strengthening the capacity for long-term investment.” The Initiative comprises ten provisions, offering investors and asset management institutions, across three dimensions—investment philosophy, institutional conduct, and market climate—relevant recommendations under the rubrics of “four steadfast commitments,” “three musts,” and “three positives.”

During the co‑signing phase of the Initiative, the number of participating institutions far exceeded expectations, encompassing more than 300 entities across a wide range of sectors related to investment and research— including bank wealth‑management subsidiaries, pension funds, insurance companies, securities offices, securities‑office asset management units, public mutual funds, private equity funds, fund‑distribution offices, data‑service providers, and university research institutes.

At present, the Shanghai Stock Exchange has completed the relevant review procedures and hereby officially publishes the list of participating institutions (see the appendix). The institutions included in this Initiative comprise 104 securities offices, 11 asset management companies affiliated with securities offices, 88 public mutual funds, 11 bank wealth‑management subsidiaries, 9 pension and insurance companies, 59 private equity funds (including both private securities investment funds and private equity investment funds), 24 universities and research institutions, 7 other compliant entities, and the National Council for Social Security Fund. Overall, the signatory institutions are highly representative, broadly diversified, and wield significant market influence, thereby helping the Initiative to further fulfill its role as a model and leader.

Going forward, the Shanghai Stock Exchange will continuously monitor and evaluate the implementation of the Initiative by participating co‑signing institutions, and establish a dynamic adjustment mechanism for these institutions. Based on the practical outcomes of their adherence to the spirit and substance of the Initiative, the list of co‑signing institutions will be updated annually, ensuring a “both entry and exit” approach.

Looking ahead, in line with the guidance and practices set forth in the Initiative, the Shanghai Stock Exchange will work together with the aforementioned institutions to lead and mobilize all market participants and broader society to uphold and consistently embrace the principles of rational investing, value investing, and long-term investing, thereby contributing to the high-quality development of China’s capital markets.

SSE: Currently conducting research and feasibility studies on a differentiated fee structure for high-frequency trading.
Recently, reports indicated that the exchange is seeking feedback from certain market participants on a differentiated fee structure for high-frequency trading, with some foreign‑invested institutions expressing concerns about inconsistent pricing standards. The Shanghai Stock Exchange has since issued a response.

The Shanghai Stock Exchange stated that it has taken note of the aforementioned rumors. At present, the Exchange is conducting research and deliberations on a differentiated fee‑charging scheme for high-frequency trading, adhering to the principle of equal treatment for domestic and foreign investors and ensuring fair treatment of all market participants. On the basis of thorough assessment and calculation, the relevant fee mechanisms will be refined to enhance the targeted regulation of high-frequency quantitative trading, thereby alleviating concerns about unequal treatment. With regard to the differentiated fee arrangements applicable to high-frequency trading institutions, the Shanghai Stock Exchange will continue to solicit extensive feedback from market participants and introduce these measures in a steady and orderly manner.

The China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission held the 16th Joint Law Enforcement Cooperation Working Meeting.
Recently, in accordance with the mechanism for regular meetings between the principal officials of the enforcement authorities established by the China Securities Regulatory Commission and the Securities and Futures Commission of Hong Kong, the two commissions held the 16th Joint Working Meeting on Enforcement Cooperation. The principal officials of the enforcement authorities from both sides attended the meeting.

The two sides briefed each other on their respective law enforcement priorities, trends in illegal and non‑compliant activities, and case‑handling progress since the beginning of this year; they reviewed the achievements of cross‑border law enforcement cooperation under the two mechanisms; discussed developments in major cases of mutual concern; shared procedures for handling suspicious transaction leads and Hong Kong’s experience in leveraging technology for securities‑related enforcement; and exchanged views on strengthening inter‑agency cooperation between the two jurisdictions and enhancing joint efforts to combat cross‑border securities‑related crimes.

SSE: Currently conducting research and feasibility studies on a differentiated fee structure for high-frequency trading.
Recently, reports indicated that the exchange is seeking feedback from certain market participants on a differentiated fee structure for high-frequency trading, with some foreign‑invested institutions expressing concerns about inconsistent pricing standards. The Shanghai Stock Exchange has since issued a response.
The Shanghai Stock Exchange stated that it has taken note of the aforementioned rumors. At present, the Exchange is conducting research and deliberations on a differentiated fee‑charging scheme for high-frequency trading, adhering to the principle of equal treatment for domestic and foreign investors and ensuring fair treatment of all market participants. On the basis of thorough assessment and calculation, the relevant fee mechanisms will be refined to enhance the targeted regulation of high-frequency quantitative trading, thereby alleviating concerns about unequal treatment. With regard to the differentiated fee arrangements applicable to high-frequency trading institutions, the Shanghai Stock Exchange will continue to solicit extensive feedback from market participants and introduce these measures in a steady and orderly manner.

Commercial & Corporate
Communiqué of the Third Plenary Session of the 20th Central Committee: We will deepen reform of the foreign trade system and further reform the systems for managing foreign investment and outbound investment.
The Third Plenary Session of the 20th Central Committee of the Communist Party of China was held in Beijing from July 15 to 18, 2024. On July 18, the session adopted a communiqué. The plenary session also reviewed and approved the “Decision of the CPC Central Committee on Further Comprehensively Deepening Reform and Advancing Chinese‑style Modernization.”
The plenary session plans that by 2035, a high-standard socialist market economy will be fully established; the system of socialism with Chinese characteristics will be further improved; modernization of the national governance system and governance capacity will be basically achieved; and socialist modernization will be essentially realized, thereby laying a solid foundation for building a great modern socialist country in all respects by the middle of this century. It also proposes that by the 80th anniversary of the founding of the People’s Republic of China in 2029, the reform tasks set forth in the Decision will be completed. With regard to opening up to the outside world, the plenary session emphasizes the need to uphold the fundamental national policy of opening up, use openness to advance reform, leverage China’s super-large market advantages, enhance our capacity for opening up through expanding international cooperation, and build a new system of a higher‑level open economy. It calls for steadily expanding institutional openness, deepening reforms of the foreign trade system, further reforming the management systems for foreign investment and outbound investment, optimizing the regional layout of opening up, and improving mechanisms for promoting high‑quality joint construction of the Belt and Road Initiative.

The Ministry of Finance plans to issue the “Measures for the Supervision and Inspection of Government Procurement Agencies.”
On July 18, the Ministry of Finance’s website published the “Notice on Soliciting Public Comments on the ‘Measures for the Supervision and Inspection of Government Procurement Agencies (Draft for Comments)’,” with a deadline for submitting feedback set for August 17.
The Measures comprise six chapters and thirty-seven articles. Aside from the General Provisions and Supplementary Provisions, they cover such sections as tiered and categorized supervision and inspection, key areas of focus, organization and implementation of supervisory inspections, handling and penalties, and the application of inspection outcomes. The Measures primarily clarify the scope of application and the division of responsibilities; specify inspection principles and operational requirements; and categorize agency‑based supervisory inspections into five types: “annual inspections,” “triennial inspections,” “targeted inspections,” “inspections of newly registered agencies,” and “other circumstances.” In accordance with these categories, the financial authorities determine the frequency and number of inspections for each type of agency and delineate the key areas of oversight. Furthermore, the Measures identify 25 specific types of violations across five categories—namely, information on roster registration, preparation of procurement documents, selection of procurement methods and procedures, evaluation activities, and procurement outcomes—and set forth corresponding enforcement guidelines.

The National Intellectual Property Administration plans to issue the “Measures on Administrative Adjudication and Mediation of Patent Disputes.”
On July 18, the website of the National Intellectual Property Administration published the “Explanation on Public Solicitation of Comments on the ‘Measures for Administrative Adjudication and Mediation of Patent Disputes (Draft for Comments)’,” with the deadline for submitting feedback set for September 2.
The Measures comprise 86 articles, organized into five chapters: General Provisions, Administrative Adjudication, Administrative Mediation, Legal Liability, and Supplementary Provisions. They introduce new provisions on administrative adjudication of major patent infringement disputes, administrative adjudication under the early‑resolution mechanism for pharmaceutical patent disputes, and administrative mediation of disputes arising from the implementation of open patent licensing. The Measures also establish a time limit for filing requests for administrative adjudication of patent infringement disputes—three years, calculated from the date when the patent owner or an interested party knew or should have known of the infringing act—and refine the rules allowing consolidated proceedings in cases involving multiple patents owned by the same patent holder or multiple respondents concerning the same patent. In addition, in accordance with the Patent Law, the Measures provide specific delineations of the types of patent disputes eligible for administrative mediation. With respect to service of documents, they further specify that electronic means—such as mobile text messages, faxes, emails, and instant‑messaging accounts—capable of conofficeing receipt may be invoked. Finally, the Measures introduce new mediation standards for resolving disputes over rewards and remuneration related to inventions and designs created in the course of official duties.

The China Copyright Association and the Korea Copyright Commission signed a strategic cooperation agreement in Beijing.
On July 17, the China Copyright Association and the Korean Copyright Commission signed a strategic cooperation agreement.
The two sides will strengthen exchanges and cooperation in the field of copyright, leveraging the respective strengths and influence of each party in the copyright industry to promote the exchange and collaboration of copyrighted content between the two countries, maximize the roles of all stakeholders in the China–Korea copyright sector, and enhance the dissemination and protection of copyrighted works across both nations.

The Ministry of Industry and Information Technology has issued the 2024 National Industrial Energy-Saving Diagnostic Service Plan.
On July 18, the website of the Ministry of Industry and Information Technology released the “Notice on Issuing the 2024 National Industrial Energy-Saving Diagnostic Service Tasks.”
The Notice specifies that 61 contracted industrial energy‑saving diagnostic service providers have been designated to deliver energy‑efficiency diagnostic services to 1,980 small and medium-sized enterprises and industrial parks.

The Seventh Joint Meeting on Supporting Hong Kong’s Full Participation in and Contribution to the Belt and Road Initiative Was Held.
The National Development and Reform Commission, together with relevant departments, convened the seventh joint meeting with the Government of the Hong Kong Special Administrative Region to support Hong Kong’s full participation in and contribution to the Belt and Road Initiative.
At the meeting, relevant departments of the Government of the Hong Kong Special Administrative Region presented updates on Hong Kong’s participation in and contributions to the Belt and Road Initiative, and put forward corresponding recommendations. The National Development and Reform Commission (Joint Conference Office) and other relevant national authorities outlined their efforts to support Hong Kong’s engagement in and contribution to the Belt and Road Initiative, and responded to the proposals submitted by Hong Kong.

Two departments have issued requirements for the temporary import and use of clinically urgently needed medical devices by medical institutions.
Recently, the website of the National Medical Products Administration published the “Announcement on the Issuance of Requirements for the Temporary Import and Use of Clinically Urgent Medical Devices by Medical Institutions.”
The Requirements stipulate that medical institutions shall be responsible for the clinical use management of medical devices urgently needed in clinical practice. Medical institutions, medical device distributors, and overseas manufacturers or agents of medical devices shall enter into quality‑assurance and agency agreements, clearly defining the quality‑and‑safety obligations and responsibilities of each party, including liability for compensation.

The National Medical Products Administration plans to issue Good Manufacturing Practices for pharmaceutical excipients and packaging materials.
On July 18, the National Medical Products Administration (NMPA) published on its website the “Announcement on the Release of the ‘Good Manufacturing Practice for Pharmaceutical Excipients’ and the ‘Good Manufacturing Practice for Pharmaceutical Packaging Materials’ (Draft for Public Comment),” with a deadline for submitting feedback set for August 20.
The Notice clearly stipulates the implementation of principal responsibility for product quality. Manufacturers of pharmaceutical excipients and packaging materials shall, in accordance with the requirements of the “Good Manufacturing Practice for Pharmaceutical Excipients” and the “Good Manufacturing Practice for Pharmaceutical Packaging Materials,” establish and improve a robust quality management system, develop comprehensive management documents, operating procedures, and records, and allocate organizational structures and personnel commensurate with the scale of production. They must conduct regular quality assessments of the manufacturers of raw materials used in pharmaceutical excipients and packaging materials, organize production in compliance with formulation and process specifications that have undergone associated review, and perform testing on each batch of products in accordance with the quality standards approved through such review. Only after approval by the quality management department may the products be released. For pharmaceutical excipients and packaging materials intended for export, the products shall meet the quality standard requirements of the importing country (or region).

The Ministry of Natural Resources has issued a document to comprehensively launch an inventory of natural resource assets owned by all the people.
Recently, the website of the Ministry of Natural Resources published the “Notice on Launching a Comprehensive Inventory of Natural Resource Assets Owned by All the People.”
The Notice clarifies that the scope of this asset inventory encompasses seven categories of natural resource assets owned by the whole people—land, minerals, forests, grasslands, wetlands, water, and marine resources. It specifies that both physical quantities and monetary values must be ascertained, and that, building on the results of cadastral surveys, property‑rights registration, the land market monitoring and regulatory system, the national mining rights registration information and disclosure system, the marine and island dynamic monitoring system, and the approval ledger for marine areas and uninhabited islands, the inventory will systematically document the entities holding usage rights, their types, sources, tenure periods, changes in rights, contract prices, and other relevant details, thereby establishing a property‑rights layer within the management system. Particular emphasis will be placed on clarifying the status of usage rights for state‑owned construction land, mineral resources, marine resources, and other natural resource assets.

The Ministry of Transport has revised the “Criteria for Determining Major Accident Hazards in Port Operations Involving Dangerous Goods.”
On July 19, the website of the Ministry of Transport published the “Notice on Issuing the ‘Criteria for Determining Major Accident Hazards in Port Operations Involving Dangerous Goods.’”
The Standard comprises thirteen articles, retaining the original framework of the “Judgment Guidelines.” It specifies 25 categories of major accident hazards across five areas: operations conducted beyond the permitted scope, capabilities, or time limits; equipment and facilities that fail to meet operational safety requirements; inadequate provision of safety devices and systems; failure to comply with prescribed safety distances; and significant deficiencies in safety management. The principal revisions are as follows.
First, the operability and practicality of the standards have been enhanced. Relevant provisions that lacked sufficient operational clarity in areas such as fire prevention, explosion protection, lightning protection, and electrostatic discharge protection have been revised and improved.
Second, emphasis was placed on identifying and addressing potential hazards in key areas. Specifically, detailed criteria for determining major accident hazards were refined for fire control rooms and central control rooms at hazardous‑goods handling facilities, as well as for tank farms that constitute Level I or Level II major hazard sources.
Third, emphasis is placed on preventing emerging risks and addressing new challenges. Key areas of supplementation include the enterprise-wide work safety responsibility system, the dual-prevention mechanism, personnel behavior management in high-risk operation zones, tank floating‑roof bottoming operations, and hot‑work operations.

The State Administration for Market Regulation plans to issue the “Rules on the Accreditation of Type-Test Institutions for Special Equipment.”
On July 18, the website of the State Administration for Market Regulation published the “Notice on Soliciting Public Comments on the ‘Rules for the Approval of Type‑Test Institutions for Special Equipment (Draft for Comments)’,” with a deadline for submitting feedback set for August 18. These Rules apply to the approval of type‑test institutions that conduct type‑testing of special equipment within the territory of the People’s Republic of China.

The standard “Procedures and Technical Specifications for Data Rights Conofficeation and Authorization” has been officially released.
From July 2 to 5, the 2024 Global Digital Economy Conference was held at the National Convention Center. During the event, the standard “Procedures and Technical Specifications for Data Rights Conofficeation and Authorization” was successfully released.
As the nation’s first standard named after data rights conofficeation and authorization, the “Specification” is guided by national data‑related laws and regulations and the framework set forth in the “Twenty Measures on Data,” focusing on the issues of rights conofficeation and authorization norms in complex data‑circulation scenarios. It has developed a versatile, widely applicable rights‑analysis model and a standardized authorization process, providing compliance‑oriented standards and tools to support lawful data circulation and cross‑regional, cross‑industry data integration and utilization. This initiative aims to foster a mutually trusted mechanism for compliant data circulation based on mutual recognition of identities, rights, and authorizations.

The Ministry of Commerce convened a special roundtable for foreign-invested enterprises to provide an in-depth briefing on the policies related to large-scale equipment upgrades and the trade-in program for consumer goods.
On July 17, the Ministry of Commerce hosted a special roundtable for foreign-invested enterprises to provide an in-depth briefing on policies related to large-scale equipment upgrades and the trade-in program for consumer goods. Representatives from several prominent foreign-invested companies, along with representatives from foreign business associations operating in China—including the American Chamber of Commerce in China, the European Union Chamber of Commerce in China, the Korea Chamber of Commerce in China, and the Japan Chamber of Commerce in China—attended and delivered remarks.
A spokesperson for the Ministry of Commerce stated that China will steadfastly advance high-standard opening-up, optimize the business environment, and treat domestic and foreign-invested enterprises equally in supporting their participation in large-scale equipment upgrades and consumer‑goods trade‑in programs, as well as related government procurement and project investments. The spokesperson expressed the hope that foreign-invested enterprises will seize these opportunities, deepen their presence in the Chinese market, and increase their investment in China.

Beijing has issued a special implementation plan to deepen the opening-up of the service sector and promote foreign investment.
On July 16, the Beijing Municipal Government website published the “Notice on Issuing the Implementation Plan for Deepening the Opening-Up of the Service Sector and Promoting Foreign Investment in Beijing.”
The Implementation Plan outlines 15 key tasks and measures, proposing to coordinate with the revision of the Catalogue of Industries for Encouraging Foreign Investment, thereby encouraging foreign investors to invest in Beijing’s priority sectors, including strategic emerging industries, high-end manufacturing, and modern services. Within the National Demonstration Zone for Comprehensive Opening-Up of the Service Sector, restrictions on foreign equity ownership in businesses such as IDC, CDN, and ISP will be lifted. A negative list for cross-border data transfers will be formulated within the Free Trade Pilot Zone. Taking pharmaceutical enterprises as a starting point, efforts will be accelerated to facilitate compliant cross-border data transfers by foreign-invested pharmaceutical and healthcare companies, with a green channel established to expedite applications from such offices. Eligible foreign‑national and Hong Kong, Macao, and Taiwan‑registered physicians will be supported in opening clinics in Beijing, while qualified medical institutions will be encouraged to conduct clinical trials involving stem cells and other areas. Furthermore, policies supporting headquarters‑based enterprises will be refined, with related eligibility criteria further optimized, to encourage foreign‑invested companies to establish and apply for recognition as regional headquarters of multinational corporations in Beijing, among other initiatives.

The Ministry of Industry and Information Technology plans to issue nine mandatory national standards.
On July 17, the website of the Ministry of Industry and Information Technology published a notice soliciting public comments on nine draft mandatory national standards, including “Limits for Harmful Substances in Coatings — Part 1: Architectural Coatings.” The deadline for submitting feedback is September 14.
This batch of newly promulgated mandatory national standards includes: “Limit for Harmful Substances in Coatings—Part 1: Architectural Coatings,” “Limit for Harmful Substances in Coatings—Part 2: Industrial Coatings,” “Safety Technical Requirements for Safety Glass Used in Buildings,” “Safety Technical Specifications for Tractors,” “General Safety Requirements for Construction Machinery and Equipment,” “Safety Requirements for Packaging Machinery,” “Safety Technical Specifications for Refrigeration and Air-Conditioning Equipment,” “Limits for Harmful Substances in Indoor Decorative and Finishing Materials—Carpet, Carpet Backing, Adhesives for Carpet Installation, and Polyvinyl Chloride Flooring,” and “Permissible Values for the Hazardous Effects of High-Voltage Power Lines on Telecommunication Lines.”

Ten departments in Shanghai have jointly launched supervisory and inspection activities in inspection and testing-related fields.
On July 17, the Shanghai Municipal Administration for Market Regulation published the “Notice on Jointly Organizing Supervisory Inspections in Inspection and Testing‑Related Fields.”
The Notice specifies that, in 2024, municipal-level supervisory inspections in inspection and testing-related fields will cover a total of 120 institutions, representing an overall inspection rate of 10%. These inspections will be conducted jointly across the following areas: special supervisory checks on ecological and environmental monitoring agencies; special supervisory checks on motor vehicle inspection agencies; special supervisory checks on food and agricultural product inspection and testing agencies; special supervisory checks on product quality‑related inspection and testing agencies; random spot checks on forensic appraisal institutions; random spot checks on water‑conservation project quality‑testing institutions; random spot checks on civil defense engineering protective‑equipment testing institutions; random spot checks on import‑export commodity inspection agencies; random spot checks on cosmetic‑product inspection agencies, and others.

IMF report raises China’s economic growth forecast, projecting 5% growth in 2024.
On July 16, the International Monetary Fund released an update to its World Economic Outlook, projecting 5% growth for China in 2024—up 0.4 percentage points from its April forecast.
The update notes that, at the start of this year, global economic activity and world trade have strengthened. Export growth in Asia—driven in particular by the region’s robust performance in the technology sector—has fueled this expansion. According to the IMF’s latest projections, global GDP growth is expected to remain unchanged at 3.2% in 2024, while global trade volume is forecast to expand by 3.1% in 2024 and 3.4% in 2025—both revisions upward by 0.1 percentage point from the April estimates. The update also highlights heightened upside risks to inflation worldwide, particularly in light of escalating trade tensions and rising policy uncertainty, which could keep interest rates elevated for an extended period.

A side event on China’s trade policy review at the World Trade Organization was held in Geneva.
On July 16, a side event of the World Trade Organization’s review of China’s trade policies was held in Geneva, Switzerland. The event, themed “Understanding China’s Economic and Trade Policies at the Central and Local Government Levels,” aimed to help WTO members gain a clearer understanding of China’s economic and trade policies.
In response to WTO members’ concerns about China’s macroeconomic performance and domestic reform measures, the experts in attendance provided an objective analysis of China’s macroeconomic outlook and prospects, and offered an in-depth discussion of the new initiatives China has introduced to develop new‑type productive forces, build a unified national market, and foster the growth and strengthening of the private sector. To highlight China’s local practices in further expanding opening-up, the experts and business representatives drew on concrete case studies to detail the liberalization measures adopted under the national pilot program for comprehensively opening up the service sector, as well as the achievements made in optimizing the business environment and facilitating the operations of foreign‑invested enterprises in China.

The National Intellectual Property Administration has outlined work in nine key areas to comprehensively advance the implementation of the patent open licensing system.
Recently, the website of the National Intellectual Property Administration published the “Notice on Fully Promoting the Implementation of the Patent Open Licensing System.”
The Notice requires guiding patent holders to submit open‑license declarations in a standardized manner, facilitating the seamless transition of pilot projects to open licensing; advising patent holders to make reasonable estimates of royalty rates; enhancing the open sharing of information related to open‑license declarations; fully leveraging the roles of all stakeholders to promote effective supply‑demand matching; providing guidance on the filing and recordal of concluded open‑license agreements; strengthening oversight and dispute mediation for open licensing; and intensifying efforts to publicize and interpret the relevant framework while disseminating best‑practice cases.

China Chamber of Commerce for Import & Export of Machinery and Electronic Products: Urges the U.S. side to recognize the inherent laws governing the development of the automotive industry and immediately rectify its discriminatory subsidy policies.
On July 16, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, on behalf of China’s automotive industry, expressed grave dissatisfaction and office opposition to the relevant measures under the U.S. Inflation Reduction Act. It stated its unwavering commitment to safeguarding the legitimate rights and interests of China’s new‑energy vehicle sector, urged the U.S. side to strictly fulfill its obligations under WTO rules, recognize the inherent laws governing the development of the automotive industry, promptly rectify discriminatory subsidy policies, and cease practices of unilateralism and trade bullying.
The China Chamber of Commerce for Import & Export of Machinery and Electronic Products believes that, by enacting the Inflation Reduction Act’s subsidies for new‑energy vehicles, the United States has deliberately adopted discriminatory policies targeting Chinese products and supply chains, with the aim of bolstering its domestic NEV industry at the expense of specific countries. In fact, since the law’s enactment, both the U.S. electric‑vehicle market’s supply and consumer confidence have been undermined, making it the biggest obstacle to achieving the country’s electrification‑transition goals.

The National Energy Administration has selected certain counties and townships to carry out initiatives promoting the development and deployment of charging infrastructure.
Recently, the website of the National Energy Administration published the “Notice on Selecting Certain Counties and Townships to Carry Out Pilot Projects for the Construction and Promotion of Charging Infrastructure.”
The Notice clarifies that the National Energy Administration has commissioned third-party institutions to convene expert reviews and has decided to select 33 counties (including county-level cities, counties, autonomous counties, and banners), such as Daming County in Handan City, Hebei Province, as well as 74 townships (towns), including Da Beijianggu Town in Ninghe District, Tianjin, to carry out pilot projects for the construction and promotion of charging infrastructure. The departments in each province, autonomous region, and municipality directly under the central government responsible for managing charging facilities are required to earnestly assume primary responsibility for advancing these initiatives, strengthen organizational coordination and oversight, submit annual progress reports to our Administration, and conduct a comprehensive summary and evaluation by the end of 2025.

The Shanghai Administration for Market Regulation has issued a notice to regulate the marketing practices of food-delivery merchants and prevent food waste.
On July 15, the Shanghai Administration for Market Regulation published the “Notice on Continuously Regulating the Marketing Practices of Food Delivery Merchants and Preventing Food Waste.”
The Notice sets out the following key tasks: (1) Strengthen principal responsibility and continue to regulate the marketing practices of platforms and merchants; (2) Enhance regulatory oversight and law enforcement, and urge rectification of food waste in the takeout catering sector; (3) Improve the standards system to raise the level of norms for preventing food waste; and (4) Intensify public awareness campaigns and guidance to foster a positive social atmosphere conducive to preventing food waste.

Shanghai has issued a document to further strengthen the supervision and regulation of bulk food safety.
On July 15, the Shanghai Administration for Market Regulation published the “Notice on Further Strengthening the Supervision and Management of Bulk Food Safety” on its website.
The Notice clarifies that food retailers and operators must be urged to strengthen training for personnel handling bulk foods on relevant laws, regulations, and professional knowledge, and to promote self‑discipline in food safety, thereby further enhancing their sense of responsibility and management capabilities. Personnel who handle bulk foods intended for direct consumption may only commence work upon presenting a valid health certificate. Retailers and operators are also required to strictly fulfill their obligations to inspect and verify incoming bulk food products, ensuring lawful sourcing and compliance with quality and safety standards. Sales areas for bulk foods must be physically segregated or clearly demarcated; bulk foods intended for direct consumption shall be stored separately from fresh meat, poultry, and aquatic products, with adequate physical barriers between them. For the sale of bulk cooked foods, dedicated sales rooms, zones, or counters must be provided. Internet‑based food operators without physical storefronts shall not be issued permits to sell bulk cooked foods.

Guangdong plans to revise the Measures for the Administration of Food Safety Management Personnel in Food Production and Operation Enterprises.
The Guangdong Provincial Government website has published the “Notice on Soliciting Comments on the ‘Administrative Measures of the Guangdong Provincial Administration for Market Regulation Regarding Food Safety Management Personnel in Food Production and Operation Enterprises (Revised Draft)’,” with a deadline for submitting feedback set for July 30.
The Measures have revised the definition of food safety management personnel, eliminated the requirement to entrust social organizations with tasks such as administering examinations for food safety management personnel, and adjusted the scope of supervisory sampling and assessment. They stipulate that the subjects of such supervisory sampling and assessments include the principal person in charge of an enterprise, the chief food safety officer, food safety officers, and other food safety management personnel.

The National Intellectual Property Administration has issued the “Measures for Mediating Disputes Arising from the Implementation of Patent Open Licensing.”
Recently, the National Intellectual Property Administration issued the “Measures for Mediating Disputes Arising from the Implementation of Patent Open Licensing (Trial).”
The Measures consist of five chapters and thirty articles, setting forth provisions on the acceptance of cases, case mediation, and case closure in disputes arising from the implementation of patent open licensing. Specifically, Chapter Two, on the acceptance of cases, specifies the conditions for accepting applications for mediation of such disputes, the documents and materials that parties must submit, the criteria for issuing an acceptance decision, the circumstances under which a case will not be accepted, and the procedures for recording accepted cases. Chapter Three, on case mediation, outlines the procedures for appointing mediators, the number of mediators required, the situations in which mediators must recuse themselves, the conduct expected of mediators during the mediation process, the rights and obligations of the parties, the disciplinary measures applicable to improper conduct by the parties, the steps and time limits for conducting mediation, as well as the circumstances for suspending mediation and the conditions for resuming it.

Taxation
The Third Plenary Session of the 20th CPC Central Committee: Expanding Local Tax Bases and Studying Tax Systems Suited to New Business Models
On the morning of July 19, 2024, the CPC Central Committee held a press conference to introduce and interpret the spirit of the Third Plenary Session of the 20th CPC Central Committee.
The Third Plenary Session of the 20th CPC Central Committee was held in Beijing from July 15 to 18. The session reviewed and adopted the “Decision of the CPC Central Committee on Further Comprehensively Deepening Reform and Advancing Chinese‑style Modernization” (hereinafter referred to as the “Decision”). Han Wenxiu, Deputy Director in charge of daily work at the Central Financial and Economic Affairs Commission and Director of the Central Rural Work Leading Group, stated that the Decision emphasizes establishing mechanisms for formulating and implementing national strategies, improving the institutional framework for national economic and social development planning, deepening reforms of the fiscal and tax systems and the financial system, and enhancing the consistency of macroeconomic policy orientations. It also calls for building new mechanisms for cross‑administrative‑region cooperation and development. In response to fiscal difficulties faced by local governments and grassroots authorities, the Decision proposes refining the fiscal relationship between the central and local levels, increasing local governments’ autonomous fiscal capacity, expanding local tax bases, and better aligning the financial resources of cities and counties with their corresponding powers. At the same time, it advocates appropriately strengthening central government responsibilities, raising the proportion of central government expenditures, and prohibiting any unauthorized demands that local governments allocate matching funds. Furthermore, the Decision underscores the need to study a tax system suited to emerging business models.

Ministry of Finance: Accelerate the revision and improvement of supporting regulations for the new Accounting Law, and strengthen enforcement against financial fraud and other misconduct.
On July 19, the Ministry of Finance published on its website the “Notice of the Ministry of Finance on Effectively Implementing the Newly Amended Accounting Law,” which sets forth four key areas.
First, fully recognize the significant importance of the amendment to the Accounting Law. Second, diligently carry out publicity and training on the newly amended Accounting Law; all regions and relevant departments should include it as a key component in continuing education programs for accountants and certified public accountants, as well as in advanced accounting talent‑training curricula. Third, accelerate the revision and improvement of supporting regulations. The Ministry of Finance is actively promoting the revision or formulation of such ancillary rules as the “Standards for Basic Accounting Work,” the “Administrative Measures for Agency Bookkeeping,” the “Standards for Accounting Informatization,” and the “Basic Functional and Service Standards for Accounting Software.” Fourth, effectively strengthen the organization and implementation of the newly amended Accounting Law, and intensify efforts to investigate and prosecute serious violations—such as financial fraud—that severely disrupt the order of the socialist market economy.

Litigation & Arbitration
The Supreme People’s Court Answers Questions from the Press on the Judicial Interpretation Regarding the Temporal Effect of the Company Law
Recently, a responsible official from the Second Civil Division of the Supreme People’s Court granted an interview and answered questions from reporters regarding the “Several Provisions of the Supreme People’s Court on the Temporal Effectiveness of the Application of the Company Law of the People’s Republic of China.”
The head of the Second Civil Division of the Supreme People’s Court stated that, with respect to retroactive application, the Provisions, in order to reflect the distinctive features of corporate law, adopt Article 1 of the Company Law—“more conducive to achieving the legislative objectives of the Company Law”—as the criterion for determining whether retroactivity is favorable. Specifically, this means “more effectively regulating the organization and conduct of companies, protecting the legitimate rights and interests of companies, shareholders, employees, and creditors, improving the modern enterprise system with Chinese characteristics, fostering the entrepreneurial spirit, safeguarding socio‑economic order, and promoting the development of the socialist market economy.” After reviewing the provisions of the Company Law, the Provisions categorize them—based on the amendments—into substantive revisions, newly added provisions, and specific elaborations; in each case, whether retroactive application is warranted must be assessed according to the standard of favorable retroactivity.

The Supreme People’s Court has released the key statistics on judicial adjudication for the first half of 2024.
On July 19, the Supreme People’s Court released key statistics on judicial adjudication for the first half of 2024, continuing to enhance the quality and efficiency of trial and enforcement work while striving to advance the modernization of judicial proceedings in support of and to serve China’s distinctive path to modernization.
Data show that in the first half of 2024, the overall growth rate of court caseloads slowed, with courts accepting 23.176 million cases—up 3.9% year on year—a deceleration of 13.44 percentage points compared with the same period last year. A total of 21.173 million cases were concluded, an increase of 2.18% year on year. As of the end of June, the number of litigation cases pending for more than one year nationwide had fallen by 59.84% year on year, reflecting significant progress in the ongoing efforts to clear long‑pending cases.

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