JC Master Legal News Issue 1117

Key Takeaways for This Issue

Two departments: Further enhance the quality and efficiency of financing credit service platforms and deepen the implementation of “Xinyidai” initiatives.
On June 26, the National Development and Reform Commission and the China Banking and Insurance Regulatory Commission jointly issued the “Notice on Further Enhancing the Quality and Efficiency of Financing Credit Service Platforms and Deepening the Implementation of the ‘Xinyidai’ Initiative.”
Two departments: Reports issued by asset appraisal institutions that have not filed with the authorities shall not be used in securities-related activities.
The Ministry of Finance, in coordination with the China Securities Regulatory Commission, has revised the Measures for the Filing of Asset Valuation Agencies Engaged in Securities Services and is soliciting public comments on the draft Measures for the Filing of Asset Valuation Agencies Engaged in Securities Services. The deadline for submitting feedback is July 21, 2024.
State Council Executive Meeting: Issued the new edition of the “Catalogue of Industries Encouraged for Foreign Investment” and implemented the requirement to achieve “zero” restrictions on foreign investment access in the manufacturing sector.
On June 26, Premier Li Qiang of the State Council presided over an executive meeting of the State Council to discuss efforts to leverage foreign investment, calling for intensified measures to attract and utilize foreign capital and for a multi-pronged approach to stabilize foreign investment.
The Supreme People’s Procuratorate has released ten exemplary cases and typical examples of handling drug-related criminal cases and comprehensively addressing drug problems.
On June 25, the Supreme People’s Procuratorate website published ten exemplary cases demonstrating how procuratorial organs have handled drug-related criminal cases with high quality and efficiency, thereby advancing comprehensive governance of the drug problem.
Finance & Capital Markets
Two departments: Further enhance the quality and efficiency of financing credit service platforms and deepen the implementation of “Xinyidai” initiatives.
On June 26, the National Development and Reform Commission and the China Banking and Insurance Regulatory Commission jointly issued the “Notice on Further Enhancing the Quality and Efficiency of Financing Credit Service Platforms and Deepening the Implementation of the ‘Xinyidai’ Initiative.”

The Notice stipulates that efforts should be intensified to integrate and centrally manage local financing credit service platforms, enhance the quality and efficiency of credit information collection and sharing, and upgrade the functionality of these platforms. It further clarifies that banking institutions must strengthen the seamless integration of internal financial data with external credit information, refine credit assessment models, bolster risk management capabilities, develop online lending products, improve service efficiency for small and micro enterprises, proactively innovate credit‑based loan offerings, and increase the proportion of credit loans in the overall loan portfolio for such businesses.

The second draft of the Financial Stability Law has refined the provisions on the prevention and resolution of financial risks.
The draft Financial Stability Law was submitted on June 25 to the Tenth Meeting of the Standing Committee of the 14th National People’s Congress for a second reading. The second‑reading draft clarifies the central financial leadership body and its responsibilities, and further refines provisions related to the prevention and resolution of financial risks.

The second‑reading draft clarifies the central financial leadership body and its functions, stipulating in the General Provisions the composition and responsibilities of this body, and accordingly deletes the provisions in the first‑reading draft concerning the composition and duties of the national mechanism for overall coordination of financial stability and development.

In accordance with the requirements of the Enterprise Accounting Standards, the China Securities Regulatory Commission has revised the information disclosure regulations for insurance companies.
The China Securities Regulatory Commission has issued “Rule No. 4 on the Preparation and Disclosure of Information by Companies Issuing Securities to the Public—Special Provisions on Information Disclosure by Insurance Companies (Revised in 2024),” which shall take effect from the date of its promulgation.

The main revisions cover four areas: first, adjustments to the disclosure requirements for relevant indicators in light of current accounting standards; second, modifications to related disclosure requirements based on the “Insurance Company Solvency Regulatory Rules (II)” and other regulations; third, refinements to disclosure requirements that reflect insurers’ actual operating conditions; and fourth, clarification of transitional policies for the phase‑in between old and new standards. With respect to accounting standards, in accordance with “Accounting Standard for Business Enterprises No. 25—Insurance Contracts,” this revision revises certain indicators previously defined under the old standard in Articles 4, 6, and 8, and adds accounting data or financial metrics under the new standard that help investors better understand insurers’ operations and performance. Additionally, in line with the requirements of “Accounting Standard for Business Enterprises No. 22—Recognition and Measurement of Financial Instruments” and “Accounting Standard for Business Enterprises No. 37—Presentation of Financial Instruments,” the wording pertaining to financial instrument accounts in the investment asset disclosure requirements set out in Article 6 has been adjusted.

Two departments: Reports issued by asset appraisal institutions that have not filed with the authorities shall not be used in securities-related activities.
The Ministry of Finance, in coordination with the China Securities Regulatory Commission, has revised the Measures for the Filing of Asset Valuation Agencies Engaged in Securities Services and is soliciting public comments on the draft Measures for the Filing of Asset Valuation Agencies Engaged in Securities Services. The deadline for submitting feedback is July 21, 2024.

The draft for public comment comprises five chapters and twenty-two articles, focusing on clarifying requirements for filing, the materials and procedures for filing, verification, public announcement, and cancellation of filings, as well as related legal liabilities. The draft stipulates that asset appraisal institutions providing any of the following securities services for securities trading and related activities shall file in accordance with these Measures; asset appraisal reports issued by institutions that have failed to file as required shall not be used in securities‑related business activities.
(1) Prepare and issue asset valuation reports for entities involved in the issuance, listing, trading, or over-the-counter trading of securities, as well as for their controlled entities and merger‑and‑acquisition targets.
(2) Preparing and issuing asset valuation reports for securities companies and their asset management products;
(3) Other business as prescribed by the Ministry of Finance and the China Securities Regulatory Commission.

Commercial & Corporate
The State Administration for Market Regulation has issued 33 national metrological technical specifications.
On June 25, the State Administration for Market Regulation published a list of 33 national metrological technical specifications, including the “Verification Procedure for Inverted Thermometers,” the “Verification Procedure for Ultrasonic Flaw Detectors,” and the “Calibration Specification for Coordinate Measuring Machines.” These 33 national metrological technical specifications will come into effect on December 14, 2024.

The draft amendment to the Law on Administrative Penalties for Public Security has entered its second reading.
On June 25, the Tenth Meeting of the Standing Committee of the 14th National People’s Congress heard a report by Shen Chunyao, Vice Chairman of the Constitution and Law Committee of the National People’s Congress, on the revisions to the draft amendment to the Law on Administrative Penalties for Public Security.
The draft amendment clarifies that citizens have the right to take defensive measures against unlawful infringements, adding the provision: “Acts of self‑defense taken to prevent an ongoing unlawful infringement, even if they result in harm, shall not be deemed violations of public security administration; however, if such acts clearly exceed the necessary limits and cause undue harm, the penalty shall be mitigated or waived.” In addition, incidents of illegal dog ownership and dog attacks on persons occur from time to time, posing a threat to others’ personal safety. Accordingly, the draft amendment introduces administrative penalties for “selling or keeping ferocious dogs or other dangerous animals in violation of relevant laws and regulations,” as well as for “causing animals to injure others.”

Beijing has issued a document clarifying matters related to the expropriation of privately owned houses on state-owned land in the context of urban renewal.
On June 26, the Beijing Municipal Commission of Housing and Urban–Rural Development issued the “Notice of the Beijing Municipal Commission of Housing and Urban–Rural Development on Matters Relating to the Expropriation of Privately Owned Houses on State-Owned Land During Urban Renewal.”
The Notice stipulates that, in the course of urban renewal, if the signing rate of relocation agreements among private‑property right holders within an urban renewal project reaches at least 95 percent, and if, following mediation by the district people’s government where the project is located, the implementing entity and those private‑property right holders who have not yet signed remain unable to reach an agreement, and if the implementation of the urban renewal project involves public interests as defined by laws and administrative regulations that necessitate the expropriation of private property, then the implementing entity may submit a request for property expropriation to the district people’s government where the project is situated with respect to the uncontracted private properties.

The Civil Aviation Administration of China is seeking public comments on the “Administrative Measures for the Transportation of Dangerous Goods in General Aviation.”
On June 25, the Civil Aviation Administration of China issued the “Administrative Measures for the Transportation of Dangerous Goods in General Aviation (Draft for Public Comment),” inviting public feedback until July 12.
According to the Draft for Public Comment, general aviation enterprises engaging in the transport of dangerous goods or mail containing dangerous goods shall obtain a general aviation dangerous goods transportation license, the validity of which shall not exceed 24 months. Regardless of whether they transport dangerous goods, such enterprises shall prepare a dangerous goods air transport manual that complies with the requirements of these Measures and take measures to ensure the manual remains practical and effective.

Beijing plans to launch a targeted support initiative for individual business households, categorizing and segmenting them according to their specific needs.
On June 19, the World Internet Conference’s “Member Activity Day” and a symposium on protecting corporate rights in the digital era were held in Beijing.
Officials from the Comprehensive Governance Bureau and the Reporting Center of the Cyberspace Administration of China attended the meeting and, during the interactive session, engaged with member representatives on issues such as combating enterprise‑related rumors, curbing false reviews, and advancing the rule of law in the business‑friendly online environment. Member representatives unanimously agreed that the exchange deepened their understanding of relevant policies, effectively addressed their concerns, and further bolstered their confidence in corporate development. They expressed hope that the conference would continue to organize more “Member Activity Days,” creating a platform for member enterprises to engage in joint consultation, co‑construction, and shared benefits.

Shanghai Releases White Paper on Property Dispute Governance and Typical Cases
On June 25, the People’s Court of Hongkou District, Shanghai, released a white paper on source‑based governance of property‑management disputes, along with six representative case studies, to promote the resolution of such disputes at their root and to foster a new model of grassroots social governance.
In its white paper, the Hongkou District People’s Court, in light of measures to reduce property‑management disputes, puts forward three recommendations for relevant entities and individuals: first, refine targeted advisory guidance and establish an internal virtuous cycle within property services; second, strengthen efforts to address disputes at their source and explore a closed-loop mechanism for coordinated mediation and joint resolution of property‑management disputes; and third, emphasize multi‑stakeholder collaboration and integrate dispute resolution into the unified framework of grassroots governance.
The white paper also selects six representative cases—characterized by clear legal relationships and typical factual circumstances—from those handled by the Hongkou District People’s Court in 2023, covering a wide range of issues of public concern, including property service quality, security deposits for property fees, and the payment of property charges.

Shanghai Customs has unveiled 36 new measures to facilitate cross-border trade.
Shanghai Customs recently held a press conference to publicly release the “36 Measures for the 2024 Special Campaign to Facilitate Cross-Border Trade.”
The 36 measures unveiled this time focus on six key areas—streamlining business procedures, providing more tailored enterprise services, delivering more precise industrial support, fostering greater diversity in business models, enhancing the intelligence of regulatory and service delivery, and ensuring smoother communication between customs authorities and enterprises—aiming to further improve the efficiency of customs supervision and services and strengthen businesses’ sense of gain. Among these, specific initiatives such as supporting innovation by high-tech enterprises, piloting remote supervision, and promoting the high-quality development of cross-border e‑commerce have attracted widespread attention from relevant industries.

General Administration of Customs: Expanding the pilot program for the “Two Certificates in One” reform to Tianjin Customs.
Recently, the General Administration of Customs and the Ministry of Public Security issued Announcement No. 70 of 2024, “Announcement on Expanding the Pilot Program for the ‘Two‑Certificate‑in‑One’ Reform of the Certificate of Conformity for Imported Goods (Automobiles and Motorcycles) and the Inspection Certificate for Imported Motor Vehicles.”
According to the announcement, for automobiles and motorcycles imported through Tianjin Customs that, under General Administration of Customs Announcement No. 34 of 2015 and the Measures for the Inspection and Administration of Imported Automobiles, were previously required to obtain separate Certificates and Vehicle‑Accompanying Documents, a pilot program will issue a single “two‑in‑one” Certificate upon completion of import clearance procedures and passing inspection. The consignee shall submit an application to Customs for issuance of the new “two‑in‑one” Certificate within three years from the date of release and successful inspection of the imported automobile or motorcycle. This announcement shall take effect as of July 1, 2024.

State Council Executive Meeting: Issued the new edition of the “Catalogue of Industries Encouraged for Foreign Investment” and implemented the requirement to achieve “zero” restrictions on foreign investment access in the manufacturing sector.
On June 26, Premier Li Qiang of the State Council presided over an executive meeting of the State Council to discuss efforts to leverage foreign investment, calling for intensified measures to attract and utilize foreign capital and for a multi-pronged approach to stabilize foreign investment.
The meeting emphasized the need to deepen opening-up in key sectors, implement the “zero‑tolerance” requirement for foreign‑investment access restrictions in the manufacturing sector, and launch a new round of pilot measures to further open up the services sector. Policies should be refined to ensure equal treatment for both domestic and foreign‑invested enterprises in large‑scale equipment upgrades, government procurement, and investment initiatives. Efforts must continue to enhance investment facilitation, optimize foreign‑investment policies in areas such as pharmaceuticals and medical devices, expand new business models and formats in bonded repair services, and strengthen service‑support mechanisms. In addition, the “Invest in China” brand should be strengthened by revising and issuing a new edition of the Catalogue of Industries Encouraged for Foreign Investment, while improving work‑permit convenience for foreign nationals.

Central government financial support: Four departments implement a fiscal interest-subsidy policy for equipment‑upgrade loans.
According to a June 25 announcement on the Ministry of Finance’s website, the Ministry of Finance, the National Development and Reform Commission, and two other departments recently jointly issued the “Notice on Implementing the Fiscal Interest Subsidy Policy for Equipment-Upgrading Loans,” clarifying relevant matters.
The Notice clarifies the content of the fiscal interest‑subsidy policy for equipment‑upgrade loans in three key areas: the scope of support, the subsidy rate, and the eligibility period. Under the requirements set forth in Document No. 7 [2024] issued by the State Council, business entities undertaking equipment‑upgrade initiatives that are included on the list of eligible projects designated by the relevant authorities—and whose bank loans receive re‑lending support from the People’s Bank of China for such upgrades—shall be granted interest subsidies by the central government on their bank loans. For bank loans to these entities that meet the conditions for re‑lending reimbursement, the central government will subsidize the principal at a rate of 1 percentage point. Interest subsidies shall be applied from the date the loan proceeds are disbursed to the supplier’s account, with a maximum subsidy period of two years. The Notice also specifies procedures for loan disbursement, interest‑subsidy processing, and oversight and management.

Guangdong Seeks Public Comments on the Local Standard “Guidelines for Data Intellectual Property Registration”
Recently, the Guangdong Provincial Administration for Market Regulation issued a notice soliciting public comments on the Guangdong local standard “Guidelines for Data Intellectual Property Registration (Draft for Review),” with the deadline for feedback set for July 18.
The “Registration Guide” applies to the registration of data intellectual property and is intended as a reference for registrants when filing applications for such registrations. The Guide provides guidance on registration principles, basic requirements, the initial registration process, as well as procedures for registration amendments, renewals, cancellations, revocations, pledges, and the handling of complaints and reports.

The Jiangsu Provincial Administration for Market Regulation has adopted a range of measures to promote the high-quality development of the private sector.
Recently, the Jiangsu Provincial Administration for Market Regulation took the lead nationwide in issuing a division-of-labor plan outlining the annual key tasks for market regulation agencies to promote the development of the private sector. Centered on three pillars—“optimizing the external environment to foster a favorable climate for private-sector growth,” “strengthening endogenous momentum to drive the sustainable and healthy development of the private economy,” and “removing barriers to development to ease burdens, provide relief, and resolve difficulties”—the plan has identified 16 major priority areas and a list of 101 specific tasks.

The Ministry of Industry and Information Technology is soliciting public comments on 12 draft projects for the formulation and revision of mandatory national standards.
On June 25, the website of the Ministry of Industry and Information Technology published a notice soliciting public comments on the draft revision plans for 12 mandatory national standards, including “Safety Requirements for Lithium-Ion Batteries Used in Electric Motorcycles and Electric Mopeds.” The deadline for submitting feedback is July 24.
The mandatory national standard development and revision plan projects announced in the “Opinions” include “Safety Requirements for Lithium-Ion Batteries Used in Electric Motorcycles and Electric Mopeds,” “Safety Requirements for Electric Vehicles,” “Regulations to Prevent Injury to Drivers from Automotive Steering Mechanisms,” and “Speedometers for Cars and Motorcycles,” among others.

Shanghai has issued the “Shanghai Drug Vigilance Management Measures (Trial)”
Recently, the Shanghai Municipal Medical Products Administration and the Municipal Health Commission jointly issued the “Shanghai Measures for Drug Vigilance (Trial Implementation),” which will take effect on August 1, 2024, with a validity period of two years, expiring on July 31, 2026.
According to the Administrative Measures, the marketing authorization holder is responsible for the safety of the drug and shall establish and improve a pharmacovigilance system, set up a dedicated pharmacovigilance department, and assign an adequate number of full-time personnel with appropriate qualifications to carry out pharmacovigilance activities in accordance with the Pharmacovigilance Quality Management Guidelines. For imported drugs, the marketing authorization holder shall designate a representative office established within China or appoint a Chinese corporate entity as its agent to specifically undertake tasks such as monitoring, evaluating, and managing risks associated with adverse reactions to imported drugs.

The State Administration for Market Regulation has issued an announcement to implement the Catalogue of Industrial Product Production License Management.
On June 25, the State Administration for Market Regulation issued an announcement on matters related to the implementation of the “Decision of the State Council on Adjusting and Improving the Catalogue of Industrial Product Production License Management,” aiming to strengthen and standardize the administration of industrial product production licenses.
The announcement stipulates that the administration of industrial product production licenses shall be entrusted to the provincial-level authorities responsible for such licenses, and no delegation of approval authority is permitted; any previously delegated powers must be promptly reclaimed. In addition, “transparent approval” will be implemented to enhance efficiency. The electronic approval system for production licenses will be refined, with clear public disclosure of application requirements, approval procedures, and review criteria, as well as the publication of information on licensed enterprises. Policy inquiries will be promptly addressed, and consultation services will be provided. Strict oversight of the approval process will ensure that each stage and procedure is conducted in a scientific, fair, and transparent manner, subject to public scrutiny.

The draft amendment to the Law on Response to Emergencies Refines Provisions on Accountability
The draft amendment to the Law on Response to Emergencies was submitted to the Tenth Meeting of the Standing Committee of the 14th National People’s Congress for deliberation on June 25. The draft revises and strengthens provisions on accountability in emergency response, encouraging officials to assume responsibility and take proactive action.
The draft amendment, in order to further enhance the role of science and technology in responding to emergencies, consolidates provisions on strengthening the application of modern technological tools, advancing research in emergency management science and core technologies, and cultivating professionals and scientific‑technological talent in the field. It also sets forth the legal liabilities associated with citizens’ adoption of emergency self‑defense measures, while, in light of the existing emergency self‑defense regime provided for in the Civil Code and the Criminal Code, it introduces supplementary provisions to ensure consistency and coherence.

The Ministry of Industry and Information Technology is soliciting public comments on twelve industry standardization projects in the field of artificial intelligence.
On June 25, the Ministry of Industry and Information Technology issued a notice soliciting public comments on 12 industry standard project proposals, including “Artificial Intelligence: Training Data Processing Procedures and Quality Evaluation Model.” The deadline for submitting feedback is July 24.
The twelve standards currently open for public comment include: “Artificial Intelligence—Training Data Processing Workflow and Quality Evaluation Model for Large-Scale Models,” “Technical Requirements for Automated Annotation Systems of Visual Data in Artificial Intelligence,” “Technical Specification for Deepfake Voice Detection Systems in Artificial Intelligence,” “Technical Specification for Autonomous Learning Systems for Computer Vision in Artificial Intelligence,” and others.

Sixteen departments jointly issued the “Weight Management Year” Action Plan.
On June 26, the National Health Commission and 15 other departments jointly issued the “Weight Management Year” Action Plan, aiming to promote a civilized and healthy lifestyle, enhance public awareness and skills in weight management, prevent and control overweight and obesity, and effectively advance the prevention and control of chronic diseases by shifting the focus upstream.
The Plan states that, starting in 2024, over a period of approximately three years, efforts will be made to establish a widespread supportive environment for weight management, significantly enhance public awareness and skills in weight management, further popularize healthy lifestyles, gradually foster a favorable landscape of nationwide participation and universal benefits in weight management, and improve the weight-related health status of certain population groups.

The General Administration of Customs has released ten typical cases of combating drug smuggling.
Since 2023, customs anti-smuggling authorities nationwide have initiated investigations into 1,122 drug-smuggling cases, seizing a total of 6.03 tons of various narcotics, including cocaine and methamphetamine. On June 25, the General Administration of Customs released ten landmark cases illustrating its efforts to combat drug smuggling.
The ten typical cases released this time include the Shenzhen Customs Anti-Smuggling Bureau’s investigation and resolution of a major drug-smuggling case; the Shantou Customs Anti-Smuggling Bureau’s investigation and resolution of a large-scale maritime cocaine-smuggling case; the Huangpu Customs Anti-Smuggling Bureau’s investigation and resolution of a major cocaine-smuggling case; the Shanghai Customs Anti-Smuggling Bureau’s investigation and resolution of the “0818” drug-smuggling case; the Kunming Customs Anti-Smuggling Bureau’s investigation and resolution of the “12.28” specialized drug-smuggling case; and the Qingdao Customs Anti-Smuggling Bureau’s investigation and resolution of a cocaine-smuggling case involving cargo‑transport channels, among others.

The National Medical Products Administration plans to further streamline the review and approval procedures for urgently needed, already-marketed drugs from overseas.
On June 25, the National Medical Products Administration (NMPA) issued a notice soliciting public comments on the “NMPA Announcement on Further Optimizing Procedures for the Review and Approval of Clinically Urgent Overseas‑Approved Drugs,” with the deadline for submitting feedback set for July 24.
The Announcement clarifies that the marketing of urgently needed, already‑approved overseas drugs in China is encouraged, with an optimized review and approval process designed to expedite evaluation. Applicants may seek guidance and engage in pre‑submission discussions regarding the use of domestic and international clinical data for such urgently needed drugs, as well as matters related to priority review and approval, and submit relevant documentation. Upon reaching a consensus through communication with the Center for Drug Evaluation of the National Medical Products Administration, they may be exempted from conducting clinical trials and may directly file an application for drug marketing authorization.

Shanghai will adjust the unemployment insurance benefit payment standards starting July 1.
On June 26, the Shanghai Municipal Human Resources and Social Security Bureau published the “Notice on Adjusting the Payment Standards for Unemployment Insurance Benefits in This Municipality.”
According to the Notice, effective July 1, 2024, Shanghai will adjust the unemployment insurance benefit payment rates as follows: for months 1–12, the benefit rate will be increased by RMB 80, to RMB 2,255 per month; for months 13–24, the rate will be adjusted to RMB 1,804 per month; and for extended‑benefit periods, the rate will be set at RMB 1,595 per month.

Jiangsu has released the 2023 annual average wage data for employed persons in organizations.
On June 26, the Jiangsu Provincial Bureau of Statistics released the “2023 Annual Average Wage of Employees in Urban Units in Jiangsu Province.”
According to statistics, in 2023, the average annual wage of employees in non‑private urban units in Jiangsu Province was RMB 125,102. Among them, the average annual wage of on‑the‑job employees was RMB 127,620, while the average annual wage of employees in private urban units was RMB 75,088.

Hainan Plans to Regulate the Development of International Data Centers in the Free Trade Port
On June 26, the Hainan Provincial Information Security Standards Committee Office issued a notice soliciting public comments on the “Regulations on the Development of International Data Centers in the Hainan Free Trade Port (Draft for Public Comment)” until July 25.
The Regulations comprise 20 articles and stipulate that, in the Hainan Free Trade Port, international data center operations shall be exempt from the requirements to submit for a data export security assessment, enter into standard contractual clauses for the cross-border transfer of personal information, or obtain personal information protection certification, provided that one of the following conditions is met: (1) the entity only provides data services—such as storage, processing, or trading—for data collected and generated outside China, without introducing any personal information or important data originating within China; or (2) the entity transfers data to overseas destinations that are not listed on the Negative List for Cross-Border Data Transfers in the Hainan Free Trade Port.

The Ministry of Industry and Information Technology has sought public comments on four mandatory standards, including the “Limit Values for Fuel Consumption of Passenger Vehicles.”
On June 25, the Ministry of Industry and Information Technology issued a notice soliciting public comments on four mandatory national standards, including the “Limit Values for Fuel Consumption of Passenger Vehicles,” with the deadline for feedback set for July 24.
The standards currently under public consultation include: “Limit Values for Fuel Consumption of Passenger Vehicles,” “In-Vehicle Emergency Call Systems,” “Safety Requirements for Light Sources Used in Motor Vehicles and Trailers,” and “Technical Specifications for Defrosting and Demisting Systems of Automotive Windshields.” Among these, the primary technical changes in the revision of “Limit Values for Fuel Consumption of Passenger Vehicles” are as follows: the fuel consumption limits for passenger vehicle models have been tightened by raising the threshold requirements, thereby effectively curbing the trend toward larger vehicle sizes and preventing a rebound in the overall average fuel consumption level.

The National Development and Reform Commission has outlined 17 key tasks to create new consumption scenarios and foster new growth drivers in the consumer sector.
On June 24, the National Development and Reform Commission’s website published the “Notice on Issuing the Measures for Creating New Consumption Scenarios and Fostering New Growth Drivers in Consumption.”
The Measures set out 17 key tasks across six areas: (1) fostering new consumption scenarios in the catering sector; (2) cultivating new scenarios for cultural, tourism, and sports consumption; (3) developing new shopping‑related consumption settings; (4) creating new consumption contexts for bulk commodities; (5) nurturing innovative consumption models in health, elderly care, and childcare; and (6) promoting new community‑based consumption experiences. The document also specifies that cities with vehicle purchase restrictions are encouraged to relax such limits and issue additional vehicle‑purchase quotas; allocates funding to support the scrapping and replacement of eligible older vehicles; urges localities with the necessary conditions to facilitate vehicle trade‑ins and renewals; expands the pilot scope of demonstration zones for the full electrification of public‑sector vehicles; steadily advances the commercial deployment of autonomous driving; launches pilot programs for integrated “vehicle‑road‑cloud” applications in smart vehicles; initiates trials to reform urban automobile circulation and consumption patterns; and, in conjunction with auto racing, self‑drive camping, automotive cultural experiences, vehicle customization, car rental, and other activities, enriches after‑sales market offerings and services, thereby further facilitating safe and convenient transactions in the used‑car market.

The Ministry of Public Security has released the top ten types of frequently occurring telecom and online fraud.
On June 25, the website of the Ministry of Public Security released information on ten common types of high‑frequency telecom and online fraud, including order‑boosting rebate scams, fake online investment and wealth‑management schemes, fraudulent shopping services, impersonation of e‑commerce and logistics customer service, and false credit‑report scams.
The Ministry of Public Security has clarified that the ten most common types of telecom and online fraud account for nearly 88.4% of all cases. Among these, order‑boosting and rebate scams are the most frequent and result in the greatest financial losses; scams involving fraudulent online investment and wealth management schemes inflict the highest per‑case losses; and scams related to fake shopping and services have seen a marked increase, now ranking third in terms of case volume.

The Ministry of Civil Affairs has issued the “2024 Standard-Setting Plan of the Ministry of Civil Affairs.”
On June 24, the website of the Ministry of Civil Affairs published the “Notice on Issuing the ‘2024 Standard-Setting Plan of the Ministry of Civil Affairs.’”
The Plan comprises 18 projects proposed for submission as national standards, as well as 28 projects for the development of civil‑affairs industry standards. Among these, the projects slated for national standardization primarily include: “General Components for Lower‑Limb Prostheses”; “Modular Hip‑Disarticulation, Knee‑Disarticulation, and Thigh Prostheses”; “Safety—General Requirements for Rehabilitation Training Equipment”; “White Cane—Part 1: Safety‑Color Marking”; “Prosthetics and Orthotics—Terminology—Part 1: Basic Terms for External Limb Prostheses and External Orthoses”; and “Prosthetics and Orthotics—Classification and Description of Prosthetic Components—Part 1: Classification of Prosthetic Components.”

The Ministry of Natural Resources has issued the “Recommended Catalogue of Land-Saving Technologies and Land-Saving Models.”
On June 25, the website of the Ministry of Natural Resources published the “Notice on Issuing the ‘Recommended Catalogue of Land-Saving Technologies and Land-Saving Models (Fourth Batch)’.”
The catalog comprises 38 entries covering land‑saving technologies and models in the areas of infrastructure, public service facilities, industrial parks and industrial projects, and high‑quality urban–rural development. It aims to encourage localities to vigorously implement strategies such as “leveraging existing land to generate new development,” “replacing aboveground with underground space,” and “trading capital, technology, and data for additional land,” thereby further enhancing the efficient and intensive use of land and advancing high‑quality urban–rural development.

The Ministry of Ecology and Environment plans to issue the “Opinions on Promoting the High-Quality Implementation of Ultra-Low Emissions from Coal-Fired Boilers.”
On June 24, the website of the Ministry of Ecology and Environment published the “Letter on Public Solicitation of Comments on the ‘Opinions on Promoting the Implementation of Ultra-Low Emissions from Coal-Fired Boilers in a High-Quality Manner (Draft for Comments)’,” with the deadline for submitting feedback set for July 8.
The “Opinions” specify that the scope of the retrofit includes coal-fired boilers retained in key regions for air pollution prevention and control, coal-fired boilers of 65 steam tons per hour or greater in other regions, and coal‑fired captive power plants nationwide. By the end of 2025, it is planned that, in key regions, coal-fired boilers and captive power plants will have largely completed both organized and unorganized ultra‑low‑emission retrofits. In other regions, 60% of coal-fired boilers of 65 steam tons per hour or greater will have completed organized ultra‑low‑emission retrofits, and captive power plants will have largely completed both organized and unorganized ultra‑low‑emission retrofits. By the end of 2028, in key regions, enterprises operating coal-fired boilers with an annual coal throughput of 100,000 tons or more will have largely completed clean‑transportation retrofits; captive power plants will have largely completed full‑process ultra‑low‑emission retrofits. In other regions, 80% of coal-fired boilers of 65 steam tons per hour or greater will have completed both organized and unorganized ultra‑low‑emission retrofits, enterprises operating coal-fired boilers with an annual coal throughput of 500,000 tons or more will have largely completed clean‑transportation retrofits, and 80% of captive power plants will have completed full‑process ultra‑low‑emission retrofits.

The National Information Security Standardization Technical Committee plans to issue the national standard “Method for Determining the Perimeter of Critical Information Infrastructure.”
Recently, the website of the National Information Security Standardization Technical Committee published a notice soliciting comments on the draft national standard “Cybersecurity Technology: Method for Determining the Perimeter of Critical Information Infrastructure,” with a deadline for feedback set for July 29.
The standard provides a methodology for defining the boundaries of critical information infrastructure, encompassing steps such as basic information inventory, identification of critical information infrastructure functions, delineation of critical business chains and critical business information, characterization of critical business information flows and asset identification, as well as the identification of key elements of critical information infrastructure and the establishment of its boundaries. It is intended to guide operators of critical information infrastructure in determining their boundary definitions and may also be utilized by other stakeholders involved in the security protection of such infrastructure.

The National Information Security Standardization Technical Committee plans to issue the national standard “Guideline on Social Responsibility for Data Security and Personal Information Protection.”
The website of the National Information Security Standardization Technical Committee has published the “Notice on Soliciting Comments on the Draft National Standard ‘Data Security Technology: Guidelines for Data Security and Corporate Social Responsibility in Personal Information Protection,’” with a deadline for feedback set for August 19.
The Guidelines provide guidance for organizations to understand their social responsibility in data security and personal information protection and to implement related activities. They apply to organizations that process data, as well as to third-party entities tasked with assessing the extent to which data-processing organizations fulfill their social responsibilities in these areas.

The Cybersecurity Standards Committee plans to issue the “Guidance on One-Click Termination of Off-Vehicle Data Collection,” a practical guideline for cybersecurity standards.
On June 24, the website of the Cybersecurity Standards Committee issued a notice soliciting public comments on the “Guideline for Cybersecurity Standards—Guidance on One-Click Termination of Off-Vehicle Data Collection (Draft for Public Comment).” The deadline for submitting feedback is July 5.
The Guidelines provide instructions for equipping vehicles equipped with in-vehicle cameras, radars, and other sensors with a one‑click function to halt the collection of external data. They apply to automobile manufacturers and related component or service providers engaged in the design, development, and production of vehicles with external data‑collection capabilities, but do not apply to highly automated vehicles operating without a driver in the driver’s seat.

Taxation
Key highlights of the second draft amendment to the Accounting Law: appropriately reducing the amounts of certain fines.
On June 26, the 27th Chairpersons’ Meeting of the Standing Committee of the 14th National People’s Congress was held at the Great Hall of the People in Beijing. The meeting heard a report by Xin Chunying, Director of the Constitution and Law Committee of the National People’s Congress, on proposed revisions to the draft decision amending the Accounting Law, among other matters.
On June 25, the Tenth Meeting of the Standing Committee of the 14th National People’s Congress heard a report by Xu Hui, Vice Chairperson of the Constitution and Law Committee of the NPC, on the deliberation results of the draft amendment to the Accounting Law. The report noted that some members of the Standing Committee, as well as local authorities, government departments, and the general public, pointed out that the ten types of accounting violations listed in Article 11 of the draft amendment vary in nature, and that the corresponding fine amounts are not sufficiently aligned with those stipulated in other articles, suggesting an appropriate reduction. After careful consideration, the Constitution and Law Committee recommended revising the relevant fine provisions in this article to read: “a fine of up to RMB 200,000 may be imposed concurrently” and “a fine of more than RMB 200,000 but not exceeding RMB 1 million may be imposed concurrently.”

Guangdong has issued the “Twenty Measures on Data,” calling for research into accounting standards for data elements and guiding the inclusion of data assets on corporate balance sheets.
On June 24, the website of the People’s Government of Guangdong Province published the “Opinions on Establishing a Data‑Based Institutional Framework to Promote the High‑Quality Development of the Data Factor Market,” jointly issued by the General Office of the CPC Guangdong Provincial Committee and the General Office of the Guangdong Provincial People’s Government, which sets out twenty specific measures.
The Implementation Opinions call for the establishment of a comprehensive system of compliance and regulatory frameworks covering the entire data lifecycle. This includes developing standards and regulatory rules for data circulation and trading, and advancing the construction of a data quality standardization framework. It also entails instituting robust certification systems for data security and compliance management, strengthening enterprises’ compliance‑oriented data governance and oversight, and conducting sound, evidence‑based assessments of the value of data as a factor of production. Furthermore, it seeks to explore incorporating the value of data factors into the national economic accounting system, to research accounting methodologies for data assets, and to facilitate their inclusion on corporate balance sheets. Finally, it aims to develop guidelines for valuing data factors, enabling a rigorous evaluation of their contributions to economic and social development and providing a solid basis for pricing and trading in the data market.

LITIGATION & ARBITRATION
The Supreme People’s Procuratorate has released ten exemplary cases and typical examples of handling drug-related criminal cases and comprehensively addressing drug problems.
On June 25, the Supreme People’s Procuratorate website published ten exemplary cases demonstrating how procuratorial organs have handled drug-related criminal cases with high quality and efficiency, thereby advancing comprehensive governance of the drug problem.
This batch comprises five cases and five illustrative examples. In Case No. 2, the Supreme People’s Procuratorate clarified that, when handling drug‑trafficking cases involving “zero confessions,” procuratorial organs must comprehensively evaluate the evidence on file, taking into account such factors as the defendant’s modus operandi and the specific circumstances of the transaction, to identify inconsistencies between the defendant’s defense and common sense, reason, and experience, thereby accurately ascertaining the facts of the case. For cases in which the defendant’s drug‑selling activities span a long period, no physical drugs have been seized, and there is no direct evidence regarding the quantity, type, or purity of the substances involved, emphasis should be placed on the probative value of circumstantial evidence; on the basis of rigorously applying the standard of proof, an evidentiary framework should be established to establish guilt in accordance with the law. With respect to drug‑trafficking offenses, in addition to clarifying key details such as the number of transactions and the quantities involved, it is also essential to carefully examine the flow of funds related to the crime and conduct a thorough review of the upstream and downstream networks connecting the parties to the drug‑trade.

The Supreme People’s Court has officially promulgated the new version of the Judicial Interpretation on Civil Antitrust Litigation.
On June 24, the Supreme People’s Court held a press conference to release the “Interpretation on Several Issues Concerning the Application of Law in the Trial of Civil Disputes Involving Monopolies.”
The new judicial interpretation on civil antitrust litigation comprises 51 articles, organized into six parts. The first part focuses on procedural matters, covering such issues as the definition of antitrust civil disputes, methods of filing suit, jurisdiction, consolidated proceedings, evidence admissibility, public-interest litigation, and suspension of proceedings. The second part addresses the definition of the relevant market, setting out the principles and requirements for defining the relevant market, the burden of proof, analytical methodologies, and relevant factors to be considered. The third part deals with monopoly agreements, addressing coordinated conduct in horizontal agreements, the actors involved, reverse payment agreements in pharmaceutical patents, algorithmic agreements, and most‑favoured‑nation treatment across platforms, as well as the burden of proof, the determination of anti‑competitive effects and their exceptions in vertical agreements, organizational assistance, and exemptions from liability for monopoly agreements. The fourth part regulates the abuse of a dominant market position, primarily outlining the definition of such a position and the analysis and identification of various types of abusive conduct. The fifth part governs civil liability. The sixth part consists of supplementary provisions.

The Supreme People’s Court has released a batch of recent, landmark antitrust cases concluded by the people’s courts.
On June 24, the Supreme People’s Court held a press conference to release recently concluded landmark antitrust cases, thereby facilitating a correct understanding and application of the amended Antitrust Law and the new Judicial Interpretation on Civil Antitrust Litigation.
This batch of typical cases comprises five matters, covering two major categories of monopoly disputes—disputes over monopolistic agreements and disputes over the abuse of a dominant market position. The cases address issues such as the determination and legal effect of both horizontal and hub-and-spoke monopolistic agreements; the assessment of the exclusionary and restrictive competitive effects of certain intellectual‑property‑related conduct; and the evidentiary weight of antitrust administrative penalty decisions in subsequent civil damages actions, as well as the determination of damages. In the follow‑on litigation concerning a vertical monopolistic agreement in the “automobile sales” sector, the court clarified the burden of proof in related civil damages proceedings following the issuance of an antitrust administrative penalty, thereby effectively reducing the plaintiff’s evidentiary burden.

The Shanghai Higher People’s Court has issued new regulations on the centralized jurisdiction of judicial cases involving “foreign arbitration institutions.”
On June 24, the Shanghai Higher People’s Court issued the “Regulations of the Shanghai Higher People’s Court on the Centralized Jurisdiction over Judicial Cases Involving ‘Three Specific’ Ad Hoc Arbitrations and Arbitrations Conducted by ‘Overseas Arbitration Institutions.’”
The Regulations stipulate that, for ad hoc arbitrations agreed upon in Shanghai, conducted under specific arbitration rules by designated arbitrators, as well as for cases involving applications to conoffice the validity of arbitration agreements, applications to set aside arbitral awards, applications for enforcement of arbitral awards, and applications to the people’s courts for interim measures or for assistance in investigation and evidence collection during arbitral proceedings—where such matters are brought before the people’s courts of this municipality and fall within the scope of financial and commercial disputes—the Shanghai Financial Court shall have jurisdiction; whereas where they pertain to maritime and shipping matters or other civil and commercial disputes, the Shanghai Maritime Court shall have jurisdiction. With respect to “three‑specific” arbitration cases between enterprises registered within the free trade pilot zone, the competent court shall be determined by reference to the provisions governing “three‑specific” ad hoc arbitration.

Shanghai has issued the “Measures for Promoting Ad Hoc Commercial and Maritime Arbitration Involving Foreign Parties.”
On June 24, the Shanghai Municipal Government website published the “Notice on Issuing the Measures for Promoting Ad Hoc Arbitration in Foreign-related Commercial and Maritime Matters (Trial)” (Shanghai).
The Measures consist of nineteen articles and specify that the following foreign-related commercial and maritime disputes may be submitted to ad hoc arbitration by agreement:
(1) Between enterprises registered in Shanghai;
(2) Between enterprises registered in the Pudong New Area of Shanghai and parties located within or outside China;
(3) Between enterprises registered in the domestic free trade pilot zones.
Where commercial and maritime disputes arise between enterprises of foreign countries or of the Hong Kong Special Administrative Region, the Macao Special Administrative Region, or the Taiwan region, and such disputes are submitted to ad hoc arbitration with Shanghai designated as the seat of arbitration, the provisions of the preceding paragraph shall apply.

JC Master Law Office
Address: 9th Floor, National Water Resources Building, No. 70 Qingjiang South Road, Nanjing City
Postal Code: 210036
Phone: 025-84503333
Fax: 025-84505533
Website: www.jcmaster.com
This legal notice is provided solely for informational purposes and does not constitute legal advice or a legal analysis of any specific case. The issuance of this notice does not establish an attorney–client relationship between JC Master Law Office and the user or reader. JC Master Law Office assumes no responsibility for any third-party content accessible via the internet. If you do not wish to receive this legal notice, please notify us by email at jcm@jcmaster.com.
The copyright in this legal information is owned by JC Master Law Office ©. Without written permission, no organization or individual may reproduce, publish, or cite it in any form.