JC Master Legal News Issue 1114

Key Takeaways for This Issue

The People’s Bank of China is soliciting public comments to clarify the criteria for exercising administrative penalty discretion and to amend certain regulations.
Recently, the People’s Bank of China published on its website the “Interim Provisions on the Discretionary Standards for Administrative Penalties of the People’s Bank of China (Draft for Public Comment),” with a deadline for submitting feedback set for June 24, 2024.
The State Council has amended the Regulations on National Science and Technology Awards.
Premier Li Qiang of the State Council recently signed a State Council decree promulgating the “Decision of the State Council on Amending the Regulations on National Science and Technology Awards,” which shall take effect from the date of its promulgation.
The Ministry of Commerce and other authorities impose export controls on relevant items.
On May 30, the Ministry of Commerce, the General Administration of Customs, and the Equipment Development Department of the Central Military Commission issued the “Announcement on the Implementation of Export Controls on Certain Items.” The announcement will take effect officially on July 1, 2024.
The Supreme People’s Court has, for the first time, issued a set of guiding cases on judicial protection of minors.
On May 30, the Supreme People’s Court released five specialized guiding cases on judicial protection of minors. This marks the first time the Supreme People’s Court has issued guiding cases focused specifically on the judicial protection of minors.
Finance & Capital Markets
Promoting the Development of Index-Based Investing and Continuously Strengthening Long-Term Investment Momentum — The 2024 First-Half Index Expert Committee Meeting Concluded Successfully
Recently, the Index Expert Committee of the Shanghai Stock Exchange and China Securities Index Co., Ltd. convened successfully. The meeting was chaired by Professor Liu Qiao, Chairman of the Index Expert Committee and Dean of the Guanghua School of Management at Peking University, with more than ten committee members engaging in exchanges and discussions on key issues such as index development strategies, the construction of the index system, and the management and maintenance of indices.

All expert committee members unanimously agree that the Central Financial Work Conference called for “accelerating reform on the investment side,” while the new “Nine Measures for National Financial Markets” emphasizes “promoting the development of indexed investing,” thereby providing clear guidance for advancing index‑related work. Indices serve as a vital link among listed companies, financial products, and investors, constituting an essential component of high‑quality capital market development and effectively fostering a culture of rational, value‑oriented, and long‑term investing. Supported by the robust recovery and improvement in overall economic performance, the quality of listed companies continues to rise, and both domestic indices and indexed investing are currently at a strategic inflection point, with ample room for future growth.

With the support and guidance of the Index Expert Committee, the Shanghai Stock Exchange, in collaboration with China Securities Index Co., Ltd., has accelerated the expansion and diversification of its index system, thereby fostering the growth of indexed investing. Currently, the SSE and CSI series comprise approximately 7,500 indices, while the total assets under management in related products have surged to RMB 2.4 trillion—doubling over the past three years. Since 2024, domestic index funds have recorded cumulative net inflows exceeding RMB 360 billion, reflecting a marked increase in investor confidence in indexed strategies across a broad spectrum of participants, including medium- and long-term institutional investors. Market reception for STAR Market indices such as the STAR 50 and STAR 100 remains robust, with combined assets under management surpassing RMB 150 billion. The recently launched CSI A50 Index enables investors to allocate to high-quality industry leaders across sectors with a single click, achieving an asset base of RMB 21.7 billion—its highest level on record. Furthermore, since 2024, dividend and low‑volatility dividend indices have delivered returns approaching 20%, with aggregate assets under management reaching RMB 83.6 billion, up 36% year-to-date.

Going forward, the Shanghai Stock Exchange will thoroughly study and implement the spirit of the Central Financial Work Conference, earnestly carry out the arrangements set forth in the new “Nine Measures for National Finance,” and develop a new action plan for its index‑related business. Centered on advancing the five major tasks in the financial sector, it will vigorously expand an index system that supports national strategies and the real economy, build a robust ecosystem for indexed investing, fully unleash market vitality, and better serve the endeavor to build China into a strong financial nation.

The China Securities Regulatory Commission has issued a penalty decision in the case of Evergrande Real Estate’s fraudulent bond issuance and illegal information disclosure.
Recently, the China Securities Regulatory Commission (CSRC) imposed administrative penalties in accordance with the law on Evergrande Real Estate for fraudulent bond issuance and violations of information disclosure requirements. The company was ordered to make corrections, received a warning, and was fined RMB 4.175 billion. Meanwhile, Xu Jiayin, then chairman and de facto controller of Evergrande Real Estate, was slapped with the maximum fine of RMB 47 million and barred from the securities market for life.

The China Securities Regulatory Commission has determined that, between 2019 and 2020, Evergrande Real Estate artificially inflated its revenue and profits by prematurely recognizing revenue, thereby engaging in fraudulent issuance of bonds in the exchange‑traded market and making false statements in its relevant annual reports. In addition, Evergrande Real Estate failed to disclose periodic reports on time, neglected to disclose material litigation and arbitration matters as required, and omitted to report its failure to repay maturing debts in accordance with applicable regulations.

In accordance with the law, the China Securities Regulatory Commission has imposed a penalty on Evergrande Real Estate for its fraudulent bond issuance, fining it 20% of the funds raised, and has levied the maximum statutory fine for its violations of information disclosure requirements. This represents the strictest enforcement approach since the launch of unified market‑wide enforcement in the bond sector, combining rigorous punishment for financial fraud with due consideration of Evergrande’s bond issuance scale and overarching priorities such as the critical task of ensuring timely delivery of homes, thereby upholding the alignment of political, social, and legal outcomes. Meanwhile, the CSRC is advancing investigations into the relevant intermediary institutions.

As an important channel for corporate direct financing, the exchange‑traded bond market plays a pivotal role in reducing financing costs, enhancing financing efficiency, and strengthening market discipline. While enjoying the convenience of bond issuance, issuers must earnestly strengthen their awareness of the rule of law and investor protection. The China Securities Regulatory Commission will, in accordance with the law, rigorously crack down on financial fraud in the securities market, ensuring that regulatory enforcement is both office and resolute—“sharp‑toothed and prickly,” clear‑cut and decisive—while reinforcing fundamentals and tightening oversight to effectively safeguard the integrity of the market and protect the legitimate rights and interests of investors.

The People’s Bank of China is soliciting public comments to clarify the criteria for exercising administrative penalty discretion and to amend certain regulations.
Recently, the People’s Bank of China published on its website the “Interim Provisions on the Discretionary Standards for Administrative Penalties of the People’s Bank of China (Draft for Public Comment),” with a deadline for submitting feedback set for June 24, 2024.

The “Discretionary Standards” comprise four chapters and twenty-six articles, specifically defining the concept of administrative penalty discretion standards, delineating the tiers of discretion, and specifying the circumstances for their application. The document further refines the discretionary tiers and their respective applicability, clarifies the fundamental meanings of non‑imposition of penalties, mitigation of penalties, leniency in imposing penalties, standard penalties, and aggravated penalties, and, in accordance with the principle of broadly equitable allocation, establishes the corresponding ranges of penalty severity for each of these categories.

Meanwhile, the People’s Bank of China has launched a public consultation on the “Decision of the People’s Bank of China on Amending Certain Regulations (Draft for Comments),” with the deadline for submitting feedback set for June 24, 2024. The draft proposes amendments to six regulations.

This year, the Ministry of Finance will issue RMB 55 billion in government bonds in Hong Kong.
With the approval of the State Council, the Ministry of Finance will issue RMB 55 billion in government bonds in six tranches in the Hong Kong Special Administrative Region in 2024.
Among these, the first tranche of RMB 12 billion in government bonds was issued in March. The second tranche, totaling RMB 11 billion, is scheduled to be issued through a tender on June 5, comprising RMB 3 billion with a 2-year maturity, RMB 3 billion with a 3-year maturity, RMB 3 billion with a 5-year maturity, and RMB 2 billion with a 10-year maturity. Detailed issuance arrangements will be announced by the Hong Kong Monetary Authority’s Central Moneymarket Unit (CMU).

The strictest-ever regulations on share reductions have taken effect, as the China Securities Regulatory Commission and the Shanghai, Shenzhen, and Beijing stock exchanges step up regulatory oversight.
On May 24, the China Securities Regulatory Commission issued the Interim Measures for the Administration of Share Reductions by Shareholders of Listed Companies and the Rules on the Management of Shares Held by Directors, Supervisors, and Senior Management of Listed Companies and Their Changes. Both regulations shall take effect from the date of their promulgation.
The Measures for the Administration of Share Reduction comprise 31 articles. First, they strictly regulate share reductions by major shareholders: they introduce a pre‑disclosure requirement for major shareholders prior to conducting block trades; and they mandate that persons acting in concert with major shareholders comply with the same reduction restrictions. Second, they effectively prevent circumvention of the reduction rules: they require that the transferee in an agreement‑based transfer lock up the shares for six months, and they prohibit the lending of restricted shares through securities‑margin‑financing arrangements as well as short selling by shareholders holding restricted shares. Third, they refine the provisions on liability for violations.
The revised Rules on Changes in Shareholdings further clarify that, following the division of shares in a divorce involving directors, supervisors, and senior management, all parties shall continue to comply with the original restrictions on share reductions; it also refines the blackout periods during which trading in shares is prohibited.
The Shanghai, Shenzhen, and Beijing stock exchanges have jointly issued a series of business rules and guidelines, including the “Shanghai Stock Exchange Self-Regulatory Guidance No. 15 for Listed Companies—Share Reduction by Shareholders, Directors, Supervisors, and Senior Management,” the “Shenzhen Stock Exchange Self-Regulatory Guidance No. 16 for Listed Companies—Transfer of Shares by Shareholders of ChiNext‑Listed Companies via Inquiry and Allotment,” and the “Beijing Stock Exchange Continuous Supervision Guidance No. 8 for Listed Companies—Share Reduction and Shareholding Management.”

Commercial & Corporate
The State Council has amended the Regulations on National Science and Technology Awards.
Premier Li Qiang of the State Council recently signed a State Council decree promulgating the “Decision of the State Council on Amending the Regulations on National Science and Technology Awards,” which shall take effect from the date of its promulgation.
The Decision stipulates that the work of awarding national science and technology prizes shall be under the centralized and unified leadership of the CPC Central Committee; major matters concerning this work shall be reported to the CPC Central Committee in accordance with relevant regulations. The Decision further provides that decisions regarding recipients of the National Science and Technology Awards and the corresponding award levels, among other related matters, must be submitted to the CPC Central Committee and the State Council for approval. At the same time, the Decision specifies that the National Science and Technology Awards shall adhere to a national strategic orientation and be closely aligned with the country’s major strategic needs and its medium- and long-term plans for scientific and technological development.

Shanghai has introduced a series of measures to promote the high-quality development of commercial mediation.
Recently, the Shanghai Municipal Justice Bureau, in collaboration with the Municipal Higher People’s Court, the Municipal Commission of Commerce, the Municipal Public Security Bureau, the Municipal Administration for Market Regulation, the Municipal State-owned Assets Supervision and Administration Commission, and the Municipal Federation of Industry and Commerce, issued the “Several Measures to Promote the High-Quality Development of Commercial Mediation in the Municipality,” outlining eight specific initiatives covering institutional safeguards, organizational development, talent cultivation, market fostering, and information‑technology support.
The “Several Measures” places the standardized development of commercial mediation organizations at the forefront. Article 1, in particular, strengthens institutional and mechanistic frameworks by advancing legislative safeguards, reinforcing model guidelines, and improving industry self-regulation.

Eight departments have issued implementation guidelines to advance the initiative of “efficiently completing a single task.”
On May 30, the State Administration for Market Regulation and seven other departments issued the “Implementation Opinions on Further Optimizing Government Services, Enhancing Administrative Efficiency, and Promoting ‘Efficient Completion of a Single Matter.’” The document sets forth requirements in three areas: one-stop processing for corporate information changes, online one-stop handling of business deregistration, and integrated one-stop service for opening a catering establishment.
The Opinions propose optimizing the functionality of the enterprise deregistration platform. The deregistration service platform should provide features such as public notice publication, deregistration application submission, result inquiry, and information collection. Relevant departments will, through “information sharing and synchronized guidance,” achieve one-stop online services for enterprise deregistration and enable users to access processing results across multiple channels.

China will expand cross-border e-commerce exports and promote the development of overseas warehouses.
On May 30, Ministry of Commerce spokesperson He Yadong stated that the ministry will expedite the issuance of the “Opinions on Expanding Cross-Border E‑Commerce Exports and Promoting the Development of Overseas Warehouses.”
He Yadong stated that priority will be given to four key areas: empowering industrial development, strengthening the cultivation of market entities, enhancing exchanges and mutual learning, and fostering a favorable environment. China will actively engage in international multilateral and bilateral cooperation, incorporating cross-border e‑commerce issues into working mechanisms such as free trade agreement negotiations, joint committees, and mixed committees. Furthermore, it will support cross-border e‑commerce pilot zones, industries, and enterprises in proactively pursuing international exchanges and cooperation.

The State-owned Assets Supervision and Administration Commission of the State Council convened a meeting to advance inspection work within the Commission and among enterprises under its supervision.
To deepen Party discipline education and ensure that rectification measures following central inspection tours are implemented thoroughly and effectively, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) convened a meeting on May 27 to advance inspection work within SASAC and among enterprises under its administration. In accordance with the study schedule of the SASAC Party Committee’s Theoretical Study Center Group, the meeting conducted an in-depth study of the newly revised Regulations on Inspection Work of the Communist Party of China, implemented the spirit of the 2024 National Inspection Work Conference, and focused on promoting high-quality development of inspection work at SASAC and among its supervised enterprises.

Ten departments have issued the “National Disease Prevention and Control Action Plan.”
Recently, the National Center for Disease Control and Prevention, together with nine other departments, jointly issued the “National Disease Prevention and Control Action Plan (2024–2025),” outlining 25 measures across four key areas to strengthen the disease prevention and control system.
The Plan sets out the overarching principles and objectives for disease prevention and control, stipulating that by 2025, a modernized disease control system will be preliminarily established; a multi‑point‑triggered, rapidly responsive, scientifically sound and efficient infectious disease surveillance, early warning, and emergency response system will be essentially in place; the administrative law enforcement system for health and hygiene will be further improved; the research capacity of disease control institutions will steadily strengthen; and the education and training system for disease control personnel will be further refined.

Nine departments launch a special campaign to address the issuance of counterfeit safety production qualification certificates.
Recently, nine departments, including the Ministry of Emergency Management, the Cyberspace Administration of China, and the Ministry of Industry and Information Technology, jointly issued the “Work Plan for Special Rectification of Fake Safety Production Qualification Certificates.” From the date of its issuance through the end of December, a nationwide special campaign will be launched to resolutely prevent and curb the problem of counterfeit certificates, thereby better supporting high-quality economic and social development.
At present, nine ministries and commissions have established inter‑ministerial coordination and other working mechanisms. All regions and relevant departments have promptly rolled out action plans, refined and clarified the division of tasks, and ensured that the special campaign is advanced according to schedule.

Ministry of Education: All schools are required to establish student bullying prevention and response committees to identify and address bullying incidents.
To further advance the special campaign to prevent and address school violence and student bullying in primary and secondary schools, the General Office of the Ministry of Education recently issued a notice setting out specific requirements for localities undertaking this initiative.
The notice clarifies that all schools must establish student‑bullying‑prevention committees to identify bullying incidents and handle them in accordance with laws and regulations. Schools are required to develop detailed school rules and disciplinary measures, specifying appropriate sanctions for different types of bullying. They must also publicize a hotline, an email address, and the contact information of the vice principal in charge of legal affairs and the school leader responsible for safety, implementing a “first‑response accountability” system for all reports received. Each class must hold at least two themed class meetings per semester on preventing and addressing student bullying, equipping students with the knowledge and skills needed to prevent such behavior. Furthermore, video surveillance must be installed to provide full coverage of all blind spots, including hallways, rooftops, and storage rooms.

The State Administration for Market Regulation has issued compliance guidelines to regulate “618” online promotional activities.
To standardize promotional business practices, maintain order in online transactions during the “618” period, and safeguard consumers’ legitimate rights and interests, the State Administration for Market Regulation recently issued the “Compliance Guidelines for the ‘618’ Online Mega‑Sale” to platform enterprises—including comprehensive e‑commerce platforms, live‑streaming e‑commerce platforms, and cross‑border e‑commerce platforms. The guidelines cover nine key areas, notably “strictly fulfilling platform principal responsibilities,” “rigorously strengthening the review of advertising content,” and “strictly prohibiting unfair competition.”
The Compliance Notice stipulates that advertising registration, review, and record‑keeping procedures should be improved, with a particular focus on regulating advertisements for medical aesthetics and celebrity endorsements, thereby effectively blocking false and unlawful ads. At the same time, the Notice mandates the strict prohibition of illegal practices such as “choose one of two,” ensuring fair participation in market competition. Proactive measures must also be implemented to prevent violations within the platform, including fictitious transactions, order‑boosting and reputation‑manipulation schemes, and deceptive advertising.

The Ministry of Commerce and other authorities impose export controls on relevant items.
On May 30, the Ministry of Commerce, the General Administration of Customs, and the Equipment Development Department of the Central Military Commission issued the “Announcement on the Implementation of Export Controls on Certain Items.” The announcement will take effect officially on July 1, 2024.
The announcement clarifies that, without prior authorization, the following items may not be exported: (1) aerospace structural components and equipment, software, and technologies related to engine manufacturing; (2) equipment, software, and technologies related to the manufacture of gas turbine engines and gas turbines; (3) equipment, software, and technologies related to spacesuit visors; and (4) items associated with ultra‑high‑molecular‑weight polyethylene fibers.

The 15th batch of the Catalogue of Non-Transport Special-Purpose Vehicles Exempt from Vehicle Acquisition Tax has been released.
On May 29, the website of the State Taxation Administration published the “Announcement of the State Taxation Administration and the Ministry of Industry and Information Technology on the Release of the ‘Catalogue of Non-Transport Special-Purpose Vehicles with Fixed Installations Exempt from Vehicle Acquisition Tax’ (15th Batch).”
This batch of the “Catalogue” is the second release of 2024, bringing the cumulative total to the fifteenth edition, and covers 304 vehicle models from 146 enterprises. In accordance with Announcement No. 35 of 2020 issued by the Ministry of Finance, the State Taxation Administration, and the Ministry of Industry and Information Technology, as well as Announcement No. 20 of 2020 issued by the State Taxation Administration and the Ministry of Industry and Information Technology, applicants may mark vehicles included in the Catalogue with an exemption indicator in the vehicle’s electronic information. Tax authorities shall, on the basis of this exemption indicator and other documents required for filing the vehicle acquisition tax return, process the vehicle acquisition tax exemption procedures for taxpayers.

The Shanghai Higher People’s Court has released a bilingual report on the adjudication of inclusive finance-related dispute cases from 2019 to 2023.
On May 27, the Shanghai Higher People’s Court held a press conference to release information on the adjudication of inclusive finance-related dispute cases by Shanghai courts from 2019 to 2023.
The report indicates that, at present, a scientific and comprehensive credit‑assessment system for small and micro enterprises has yet to be established; the financing environment for such enterprises remains in need of further improvement; the effectiveness of policy‑driven financing guarantees has not been fully realized; joint and mutual guarantee arrangements often expose small and micro businesses to cascading litigation; certain financial institutions have engaged in unauthorized financing activities; pre‑loan reviews and post‑loan supervision are largely perfunctory; contractual provisions are unclear; contract signing and performance are non‑standard; and there are instances of unreasonable fees as well as one‑size‑fits‑all measures such as abrupt loan terminations. Going forward, the Shanghai courts will strengthen source‑level governance of inclusive‑finance disputes involving small and micro enterprises, optimize the allocation of judicial resources and streamline procedural workflows, proactively extend the scope of judicial functions, and provide all‑round support for the sound development of inclusive finance.

In the first four months, the total profits of state-owned enterprises nationwide increased by 3.8% year on year.
On May 29, the Ministry of Finance website released data on the economic performance of state-owned and state-controlled enterprises nationwide for January–April 2024.
Data show that from January to April 2024, the total operating revenue of state-owned and state-controlled enterprises nationwide reached RMB 26.19236 trillion, up 3.2% year on year; total profits amounted to RMB 1.38132 trillion, an increase of 3.8% year on year; taxes and fees payable totaled RMB 2.03769 trillion, up 0.9% year on year; and the asset–liability ratio stood at 64.9%, up 0.1 percentage point.

The Ministry of Industry and Information Technology has issued the Measures for the Supervision and Inspection of Radio Transmission Equipment.
On May 29, the website of the Ministry of Industry and Information Technology published the “Notice on Issuing the Measures for the Supervision and Inspection of Radio Transmission Equipment.”
The Measures consist of five chapters and twenty-nine articles, stipulating that radio administration authorities shall conduct inspections—using on-site verification, online checks, or technical testing—according to the specific inspection tasks. In the stages of research and development, production, maintenance, and importation, on-site verification and technical testing shall be the primary methods; in the sales stage, a combination of on-site verification and online checks shall prevail. Inspections of testing institutions shall be carried out in accordance with the relevant requirements for government procurement of services.

The Second Meeting of the China-Japan Export Control Dialogue Mechanism and Related Public–Private Exchange Activities Were Held.
On May 27, the second meeting of the China-Japan Export Control Dialogue Mechanism was held in Shanghai, China.
During this dialogue, both sides discussed issues of mutual concern in the field of export controls. On May 28, China’s Ministry of Commerce and Japan’s Ministry of Economy, Trade and Industry co-hosted a public–private sector exchange event, during which they briefed participating Chinese and Japanese enterprises on each country’s export control regimes and addressed questions raised by business representatives. Both sides agreed to maintain close communication, deepen their understanding of each other’s export control systems, enhance the transparency of export control measures, and ensure that normal trade remains unhindered.

The State Administration for Market Regulation has launched the first batch of metrological testing and evaluation activities for domestically produced instruments and meters.
Recently, the State Administration for Market Regulation issued the “Notice on Launching the First Batch of Metrological Testing and Evaluation Work for Domestically Produced Instruments and Meters.”
The Notice clarifies that the purpose of this metrological testing and evaluation of instruments and meters is to analyze and assess the current state and quality‑development level of China’s domestic instrumentation industry, conduct comparative analyses of key performance indicators, identify the principal challenges hindering the localization of instrument and meter products and the enhancement of their quality, and assist manufacturers in targeting research efforts and technological breakthroughs. This will continuously strengthen the independent innovation capacity and capabilities of domestically produced instruments and meters, thereby bolstering the core competitiveness of the industry. The metrological testing and evaluation primarily covers nine categories of complete instruments and critical components—such as spectrum analyzers and high‑precision coordinate measuring machines—undertaking a comprehensive assessment of functional performance metrics and general quality characteristics.

Beijing issues a document to implement urban renewal and related initiatives, standardizing residential address registration.
On May 28, the Beijing Municipal Government website published an announcement soliciting public comments on the “Guiding Opinions on Standardizing the Registration of Residential (Business) Premises in the Context of Urban Renewal and the Development of 15-Minute Community Life Circles (Draft for Public Comment).” The deadline for submitting feedback is June 8.
The “Guiding Opinions” clarify that, for commercial activities undertaken under urban renewal projects, if the project implementation plan has passed joint review, the coordinating entity or implementing entity may, upon presentation of the review opinions and the implementation plan issued by the district-level urban renewal authority in conjunction with the relevant industry authorities, obtain a certificate of registered address without needing to submit proof of property ownership. In addition, the “Beijing Guidelines on Supporting Documents for Proof of Registered Address (Business Premises) of Business Entities” have been formulated to standardize the existing requirements for such documentation in Beijing.

Beijing plans to introduce measures to promote the renovation of aging, inefficient buildings.
On May 29, the Beijing Municipal Government website published an announcement soliciting public comments on the “Measures for the Renovation of Old and Inefficient Buildings (Trial) (Draft for Comments),” with a deadline for feedback set for June 4.
The Measures comprise five chapters and 32 articles, covering general provisions, implementation requirements and procedures, implementation safeguards, supervision and management, and supplementary provisions. They primarily delineate the scope of entities eligible for the renewal of aging, inefficient buildings, and set forth specific regulations on renewal requirements, guiding principles, and content. The Measures also address the need for coordinated renewal across building‑level projects and, by focusing on key bottlenecks and challenges, introduce innovative incentive mechanisms.

The State Council has unveiled ten major initiatives to boost energy conservation and carbon reduction, and will gradually lift local restrictions on the purchase of new-energy vehicles.
On May 29, the Chinese Government Website issued the “Notice of the State Council on Printing and Distributing the ‘Energy-Saving and Carbon-Reduction Action Plan for 2024–2025,’” outlining ten major initiatives, including measures to promote energy efficiency and carbon reduction in the building sector, and setting forth a series of supporting safeguards.
In the area of building energy efficiency and carbon reduction, the Plan calls for: first, accelerating the transformation of construction methods by developing and promoting new building materials and advanced technologies, vigorously advancing smart construction, and expediting the integrated development of photovoltaic systems in buildings; second, advancing the retrofitting of existing buildings and implementing policies related to large-scale equipment upgrades; and third, strengthening building operations management through phased energy‑efficiency inspections and audits of public and residential buildings.
In terms of safeguard measures, the Plan calls for strengthened financial support, including backing energy‑saving and carbon‑reduction upgrades, the replacement of energy‑using equipment, and the enhancement of capabilities for energy and carbon‑emission accounting and reporting; the effective implementation of fiscal and tax policies that promote energy conservation and carbon reduction; and the guidance of financial institutions to provide funding for energy‑saving and carbon‑reduction projects in accordance with market‑oriented and rule‑of‑law principles.
In the area of energy conservation and carbon reduction in transportation, the Plan proposes gradually lifting local restrictions on the purchase of new-energy vehicles, implementing supportive policies to facilitate their access and use, promoting the electrification of vehicles in the public sector, systematically advancing the deployment of new‑energy medium- and heavy‑duty trucks, and developing zero‑emission freight fleets. The Plan also specifies that it will introduce capacity‑based electricity pricing for coal‑fired power plants, deepen market‑oriented reforms of grid‑connected tariffs for new‑energy sources, study and refine the pricing mechanism for energy storage, improve the tiered electricity pricing system for high‑energy‑consumption industries, and strictly prohibit any preferential electricity rates for such industries.

Shanghai has issued an unemployment insurance policy to help businesses stabilize employment.
Recently, the Shanghai Municipal Human Resources and Social Security Bureau published the “Notice on Implementing Unemployment Insurance Stabilization and Return of Funds” on its website.
The Notice clarifies the policy provisions, administrative procedures, and operational requirements for unemployment insurance-based job‑retention refunds. With respect to the policy content, eligible employers will receive refunds as follows: large enterprises will be reimbursed at 30% of the total unemployment insurance premiums they and their employees actually paid in the previous year, while small, medium, and micro enterprises, along with other eligible employers, will receive a refund of 60%.

The first-ever refund standards for minors’ online gaming have been released.
On May 28, the website of the China Internet Association published a notice soliciting public comments on the draft group standard “Requirements for the Management of Online Game Service Consumption by Minors,” with a deadline for feedback set for June 27.
The “Standard” is the gaming industry’s first comprehensive consumer‑management framework, designed to resolve disputes over refunds for minors’ in‑game purchases. Based on the degree of fault attributable to each party, the Standard clearly delineates the proportion of liability borne by online game service providers, guardians, and other responsible parties. If an online game service provider has duly implemented anti‑addiction measures as required by law, yet a guardian assists a minor in circumventing those restrictions, or if the guardian fails to adequately fulfill their supervisory duties, the Standard recommends assigning liability ranging from 30% to 70%, depending on the effectiveness of the anti‑addiction measures. In cases where the same wrongful conduct is repeated multiple times, the responsible party may be held fully liable.

The National Development and Reform Commission has issued the 2024 Model Template for Drafting Concession Agreements for PPP Projects.
On May 21, the Chinese Government Website published the “Notice of the General Office of the National Development and Reform Commission on Issuing the Model Concession Agreement for Public–Private Partnership Projects (Draft) (Trial Version 2024).”
The Model Agreement comprises fifteen chapters and ninety articles, comprehensively setting forth provisions on the parties to the agreement and their principal rights and obligations; franchise authorization and asset ownership; project investment planning and financing; preliminary project work; project construction; operation and service; methods for deriving revenues; the determination and adjustment of prices and fees; specific regulatory matters and measures; force majeure, change of circumstances, and changes in law; termination of the franchise agreement; the handover of project facilities and related rights and interests by the project company; liability for breach of contract; dispute resolution; as well as confidentiality, integrity, and anti-corruption measures.

Taxation
The State Taxation Administration and the National Healthcare Security Administration have signed a Memorandum of Cooperation on “Promoting Data Sharing and Deepening Collaborative Governance.”
On May 30, the State Taxation Administration and the National Healthcare Security Administration signed in Beijing a Memorandum of Cooperation on “Promoting Data Sharing and Deepening Collaborative Governance,” further consolidating and strengthening inter‑agency cooperation, leveraging the respective strengths of their data resources, and continuously enhancing service efficiency, thereby better supporting high‑quality economic and social development through coordinated, joint governance. Hu Jinglin, Secretary of the Party Committee and Director of the State Taxation Administration, presided over the signing ceremony, while Zhang Ke, Secretary of the Party Leadership Group and Director of the National Healthcare Security Administration, attended.
The signing of this Memorandum of Cooperation represents a concrete step by the two departments to thoroughly implement the CPC Central Committee and the State Council’s strategic plans for building a Digital China and a digital government, leveraging digital governance to advance the modernization of the national governance system and governance capacity. It also constitutes a practical initiative to further deepen cooperation in public services and jointly establish a new model of bidirectional data empowerment and collaborative governance.
Under the Memorandum of Cooperation, the State Taxation Administration and the National Healthcare Security Administration will each establish working groups, institute a joint‑meeting system and a routine liaison mechanism, and advance data sharing in a phased and orderly manner. The tax and healthcare security authorities will closely monitor the needs of taxpayers and insured persons, leveraging information systems such as the Electronic Tax Bureau and the National Medical Insurance Service Platform to further streamline government services. They will strengthen cooperation in areas including the collection of basic medical insurance premiums, the review of special additional deductions for major illness medical expenses under individual income tax, and the optimization of family‑based mutual assistance within employees’ medical insurance personal accounts, thereby deepening the development of a collaborative governance framework and continuously enhancing the sense of gain among taxpayers and insured individuals. At the same time, the State Taxation Administration and the National Healthcare Security Administration will also encourage local tax and healthcare security authorities to establish regular communication and cooperation mechanisms. In light of local conditions, they will actively explore new models and approaches for data‑sharing applications and for optimizing government services, contributing fresh impetus and momentum to the drive for high‑quality development.
Yao Laiying, Member of the Party Committee and Deputy Director-General of the State Taxation Administration, and Huang Huabo, Member of the Party Leadership Group and Deputy Director-General of the National Healthcare Security Administration, attended the ceremony. Rao Lixin, Member of the Party Committee and Deputy Director-General of the State Taxation Administration, and Li Tao, Member of the Party Leadership Group and Deputy Director-General of the National Healthcare Security Administration, signed a memorandum of cooperation on behalf of their respective departments. Relevant officials from the internal units of both agencies also attended the ceremony.

The Customs Tariff Commission of the State Council: Suspension of Tariff Concessions for Certain Products (Second Batch) under the Cross-Straits Economic Cooperation Framework Agreement.
On May 31, the Ministry of Finance website published the “Announcement of the Customs Tariff Commission of the State Council on the Suspension of Tariff Concessions for Certain Products (Second Batch) under the Cross-Strait Economic Cooperation Framework Agreement.”
The announcement stated that the Taiwan region has unilaterally imposed discriminatory prohibitions and restrictions on exports of mainland products, in violation of the provisions of the Economic Cooperation Framework Agreement across the Taiwan Strait. On December 21, 2023, the Customs Tariff Commission of the State Council issued Tax Commission Announcement No. 9 of 2023, suspending tariff concessions for certain products under the Agreement; however, the Taiwan region has still failed to take any effective measures to lift its trade restrictions against the mainland.
Pursuant to the Cross-Straits Economic Cooperation Framework Agreement, the Customs Tariff Commission of the State Council has decided to further suspend tariff concessions for certain products under the Agreement. Effective June 15, 2024, the preferential tariff rates applicable under the Agreement will no longer apply to imports of 134 tariff lines, including lubricant base oils originating in Taiwan; such imports will instead be subject to the prevailing tariff rates in accordance with relevant existing regulations.

The 15th batch of the Catalogue of Non-Transport Special-Purpose Vehicles Exempt from Vehicle Acquisition Tax has been released.
On May 29, the website of the State Taxation Administration published the “Announcement of the State Taxation Administration and the Ministry of Industry and Information Technology on the Release of the ‘Catalogue of Non-Transport Special-Purpose Vehicles with Fixed Installations Exempt from Vehicle Acquisition Tax’ (15th Batch).”
This batch of the “Catalogue” is the second release of 2024, bringing the cumulative total to the fifteenth edition, and covers 304 vehicle models from 146 enterprises. In accordance with Announcement No. 35 of 2020 issued by the Ministry of Finance, the State Taxation Administration, and the Ministry of Industry and Information Technology, as well as Announcement No. 20 of 2020 issued by the State Taxation Administration and the Ministry of Industry and Information Technology, applicants may mark vehicles included in the Catalogue with an exemption indicator in the vehicle’s electronic information. Tax authorities shall, on the basis of this exemption indicator and other documents required for filing the vehicle acquisition tax return, process the vehicle acquisition tax exemption procedures for taxpayers.

LITIGATION & ARBITRATION
The Supreme People’s Court has, for the first time, issued a set of guiding cases on judicial protection of minors.
On May 30, the Supreme People’s Court released five specialized guiding cases on judicial protection of minors. This marks the first time the Supreme People’s Court has issued guiding cases focused specifically on the judicial protection of minors.
This batch of guiding cases includes a number of first‑of‑their‑kind examples. Among them, the case of Zhang v. Li and Liu concerning a dispute over guardianship is the first guiding case on intra‑marital guardianship, while the case of Sha v. Yuan regarding visitation rights is the first guiding case addressing grandparental visitation. These guiding cases have played a positive role in establishing judicial adjudicatory rules and filling legislative gaps.

The Ministry of Justice has launched the “Legal Aid Protects Young Minds” campaign.
Recently, the General Office of the Ministry of Justice issued the “Notice on Launching the ‘Legal Aid to Protect Minors’ Campaign.”
The Notice states that, with the goal of safeguarding the legitimate rights and interests of minors, it will focus on their legal aid needs, establish and improve collaborative mechanisms, ensure adequate staffing and strengthen professional capacity, and build a highly competent and expert team. This will effectively enhance the quality of legal aid services for minors, proactively provide end-to‑to‑end optimized and comprehensively inclusive legal assistance, and strive to create a favorable environment for their healthy growth.

The Supreme People’s Procuratorate has released the “White Paper on Procuratorial Work Involving Minors (2023).”
On May 31, the Supreme People’s Procuratorate released the “White Paper on Procuratorial Work Involving Minors (2023).” According to the White Paper, in 2023, procuratorial organs nationwide filed and handled a total of 23,694 public-interest litigation cases concerning the protection of minors, an increase of 140 percent year on year. Among these, 13,706 administrative public-interest litigation prosecutorial recommendations were issued, and 58 civil public-interest lawsuits were brought.
The White Paper notes that the procuratorial organs have steadfastly and rigorously prosecuted crimes harming minors in accordance with the law, coordinated with relevant departments and social organizations to provide maximum care and assistance to minor victims, and actively promoted the implementation of systems such as mandatory reporting and pre-employment background checks, thereby helping to reduce the occurrence of such cases at their source.

Supreme People’s Court: Show Tolerance Toward Juvenile Offenders, But Do Not Condone Their Crimes
On May 30, the Supreme People’s Court publicly released the “Opinions on Comprehensively Strengthening Judicial Protection for Minors and Preventing and Addressing Juvenile Crime.” The Opinions emphasize that people’s courts must address both the symptoms and root causes of juvenile delinquency, combining punishment with prevention, and exercising leniency toward juvenile offenders without condoning their misconduct.
The “Opinions” comprise five sections and 42 provisions, addressing five key areas: overall requirements; strengthening the adjudication of cases involving minors; advancing the substantive integration of criminal, civil, and administrative proceedings in matters concerning minors; promoting the coordinated and synergistic implementation of the “Sixfold Protection” framework; and enhancing organizational support. In doing so, they set forth clear guiding principles and requirements to address the most salient issues currently facing judicial protection of minors and crime prevention efforts.

The Supreme People’s Court has released the fifth batch of selected Q&A entries from the Legal Answers Website.
On May 30, the Supreme People’s Court website published a selection of Q&A from the Legal Answers Network (Fifth Batch).
This batch of Q&A comprises five sets. In Question 3, the Supreme People’s Court clarified that, in principle, people’s courts will not support a non-breaching party’s claim for compensation from the breaching party for the premium paid to insure property‑preservation liability insurance incurred in applying for pre‑litigation property preservation, unless the parties have expressly stipulated in the contract that such premium shall be borne by the breaching party as an expense incurred by the non‑breaching party in enforcing its creditor’s rights, and provided that the premium is both necessary and reasonable. With respect to determining whether the aforementioned premium is necessary and reasonable, people’s courts may, on a case‑by‑case basis, take into account the following factors: first, whether the application for property preservation was indeed necessary; second, whether the scope of the requested property preservation is commensurate with the amount ultimately awarded by the people’s court in favor of the plaintiff’s principal claims (e.g., the amount ordered to be borne by the breaching party as liability for breach).

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