JC Master Legal News Issue 1111

Key Takeaways for This Issue

CSRC: Domestic enterprises seeking to list on an overseas stock exchange via a transfer listing must comply with the filing procedures.
On May 7, the China Securities Regulatory Commission issued the “Guidance on the Application of Regulatory Rules—No. 7: Overseas Issuance and Listing,” which sets out the regulatory requirements for domestic enterprises transitioning from overseas over-the-counter markets to overseas stock exchanges to achieve overseas issuance and listing.
The China Securities Regulatory Commission has issued the Regulatory Guidelines on Listing Guidance for the Beijing Stock Exchange.
The China Securities Regulatory Commission recently formulated and issued the “Guidance on the Application of Regulatory Rules—Beijing Stock Exchange Category No. 1: Regulatory Guidance on Sponsorship for Companies Listed on the National Equities Exchange and Quotations System Seeking an IPO on the Beijing Stock Exchange.”
The State Council has introduced 20 support measures to promote the standardized and sound development of the tendering and bidding market.
On May 8, the Chinese Government Website published the “Opinions on Innovating and Improving Institutional Mechanisms to Promote the Standardized and Healthy Development of the Tendering and Bidding Market.”
The Supreme People’s Court and the Publicity Department of the CPC Central Committee have established a “top-to-top” online litigation‑mediation coordination mechanism for copyright disputes.
Recently, the Supreme People’s Court and the Publicity Department of the CPC Central Committee jointly issued the “Notice on Establishing a ‘Top‑to‑Top’ Online Mediation‑Litigation Coordination Mechanism for Copyright Disputes,” setting forth clear requirements for establishing and improving a mechanism to prevent and resolve copyright disputes.
Finance & Capital Markets
CSRC: Domestic enterprises seeking to list on an overseas stock exchange via a transfer listing must comply with the filing procedures.
On May 7, the China Securities Regulatory Commission issued the “Guidance on the Application of Regulatory Rules—No. 7: Overseas Issuance and Listing,” which sets out the regulatory requirements for domestic enterprises transitioning from overseas over-the-counter markets to overseas stock exchanges to achieve overseas issuance and listing.

The CSRC stated that, in accordance with Articles 1 and 2 of the Provisional Measures, “overseas issuance and listing” refers to activities related to issuing and listing on overseas stock exchanges; domestic enterprises’ registration on overseas over-the-counter markets are not subject to filing requirements. Article 16 of the Provisional Measures provides that “where an issuer undertakes its first overseas public offering or listing, it shall file with the CSRC within three business days after submitting the relevant application documents for issuance and listing overseas.” Furthermore, when a domestic enterprise seeks to transfer its listing to an overseas exchange, it shall, in compliance with the requirements applicable to an initial overseas public offering and listing, file with the CSRC within three business days after submitting the relevant application documents for such transfer.

Pursuant to the “Notice on the Filing and Management Arrangements for Domestic Enterprises Issuing and Listing Overseas,” domestic enterprises that, as of the effective date of the Provisional Measures (March 31, 2023), have already submitted applications for a transfer listing overseas but have not yet obtained approval from the relevant overseas regulatory authorities or stock exchanges, shall complete the filing procedures prior to the completion of their overseas transfer listing.

CSRC: The random inspection rate for IPO applicants has been increased from 5% to 20%.
On April 30, the China Securities Regulatory Commission issued the “Decision on Amending the List of Random Inspection Items of the China Securities Regulatory Commission,” which shall take effect from the date of its publication.

To further enhance the effectiveness of issuance and listing supervision and improve the quality of listed companies at the source, the China Securities Regulatory Commission has revised the sampling rate for Item 1, “Initial Public Offering Enterprise Inspections,” listed in the annex to the “List of Random Inspection Items of the China Securities Regulatory Commission,” from “5% through random lottery” to “20% through random lottery.”

The China Securities Regulatory Commission has issued the Regulatory Guidelines on Listing Guidance for the Beijing Stock Exchange.
The China Securities Regulatory Commission recently formulated and issued the “Guidance on the Application of Regulatory Rules—Beijing Stock Exchange Category No. 1: Regulatory Guidance on Sponsorship for Companies Listed on the National Equities Exchange and Quotations System Seeking an IPO on the Beijing Stock Exchange.”

This document marks the first time that the China Securities Regulatory Commission has, in the form of a guidance on the application of regulatory rules, systematically standardized the supervisory and guidance framework for companies listed on the New Third Board as they pursue an “incremental” pathway to listing on the Beijing Stock Exchange.

The China Securities Regulatory Commission has revised the “Guidance on Evaluating Science and Technology Innovation Attributes (Trial).”
The China Securities Regulatory Commission recently issued the revised “Guidance on Evaluating Science and Technology Innovation Attributes (Trial)” (hereinafter referred to as the “Guidance”), which will take effect on April 30.
The revised Guidelines have moderately raised the requirements for R&D investment, the number of invention patents, and the compound annual growth rate of operating revenue for companies seeking to list on the STAR Market.
The Shanghai Stock Exchange has simultaneously issued the Provisional Regulations on Filing and Recommendation for Issuance and Listing of Companies on the STAR Market. For companies applying for an initial public offering and listing on the STAR Market, those that had not yet been reviewed by the Listing Review Committee prior to the promulgation of these new regulations shall be subject to the new rules; those that have already been reviewed by the Listing Review Committee shall continue to be governed by the original rules.

The Shenzhen Stock Exchange, the Shanghai Stock Exchange, and the Beijing Stock Exchange have issued the “Rules on the Review of Stock Issuance and Listing” and other business rules.
Recently, the Shenzhen Stock Exchange issued the “Shenzhen Stock Exchange Rules on the Review of Stock Issuance and Listing (Revised in 2024)” along with other business rules.
On April 30, 2024, the Beijing Stock Exchange officially released five business rules, including the “Rules on the Review of Public Offerings and Listings of Shares to Unspecified Qualified Investors,” the “Stock Listing Rules of the Beijing Stock Exchange (Trial),” the “Administrative Measures for the Listing Committee and the M&A and Restructuring Committee of the Beijing Stock Exchange,” the “Rules on the Review of Major Asset Restructurings of Listed Companies on the Beijing Stock Exchange,” and the “No. 10 Guidelines on Ongoing Supervision of Listed Companies of the Beijing Stock Exchange—Equity Distribution.” These rules shall take effect from the date of their publication.
The Shanghai Stock Exchange has officially released nine supporting business rules, including the “Rules on the Review of Stock Issuance and Listing.” These comprise five key business rules—such as the “Rules on the Review of Stock Issuance and Listing,” which have already been made public for public comment—as well as four accompanying detailed rules and guidelines. Specifically, the set falls into three categories: first, six rules related to issuance and listing reviews, namely the “Rules on the Review of Stock Issuance and Listing,” the “Rules on the Review of Major Asset Restructuring,” the “Administrative Measures for the Listing Review Committee and the M&A and Restructuring Review Committee,” the “Provisional Regulations on Filing and Recommendation for Issuance and Listing of STAR Market Enterprises,” along with the “Guidelines on Acceptance of Application Documents” and the “Guidelines on On-site Supervision”; second, one rule pertaining to underwriting, the “Guidelines on Matters of Concern in Investment Value Research Reports”; and third, two rules on ongoing supervision—the Main Board and STAR Market “Stock Listing Rules.”

Commercial & Corporate
The State Council has introduced 20 support measures to promote the standardized and sound development of the tendering and bidding market.
On May 8, the Chinese Government Website published the “Opinions on Innovating and Improving Institutional Mechanisms to Promote the Standardized and Healthy Development of the Tendering and Bidding Market.”
The “Opinions” comprise nine chapters and twenty articles, proposing to accelerate the revision of the Bidding Law, the Government Procurement Law, and their related implementing regulations; to promptly refine unified, category‑based basic rules and detailed implementation measures for bidding and procurement transactions; to streamline bidding procedures; and to explore the development of a fair‑competition index for the bidding market. It also calls for the categorized revision of model tender documents for surveying, design, supervision, construction, and general contracting, and proposes subjecting state‑owned enterprises’ organization of tenders and participation in bidding to stringent oversight under the accountability system for business operations and investment. Furthermore, it mandates the formulation and implementation of nationwide, uniform technical standards and data specifications for electronic bidding and procurement, promotes end‑to‑end electronic transaction processes for projects required by law to undergo tendering, and broadly encourages the use of electronic guarantees (including insurance) for paying bid bonds, performance bonds, and quality‑guarantee deposits. Finally, it seeks to strengthen support for small and medium‑sized enterprises’ participation in tendering through measures such as reserving specific contract shares, refining evaluation criteria, and increasing the proportion of advance payments.

China and Serbia sign a memorandum of cooperation on e-commerce.
On May 8, Chinese Minister of Commerce Wang Wentao and Serbian Minister of Foreign and Domestic Trade Tomislav Momirović jointly signed in Belgrade the Memorandum of Understanding on E‑Commerce Cooperation between the Ministry of Commerce of the People’s Republic of China and the Ministry of Foreign and Domestic Trade of the Republic of Serbia. To date, China has established bilateral e‑commerce cooperation mechanisms with 31 countries, including Serbia.
Under the memorandum, the two sides will establish an e‑commerce cooperation mechanism, strengthen policy dialogue and experience sharing, promote local‑level collaboration, conduct joint research and personnel training, encourage enterprises from both countries to engage in e‑commerce partnerships, facilitate connections between small and medium-sized enterprises and major e‑commerce platforms, and inject new momentum into the development of bilateral economic and trade relations.

The State Administration for Market Regulation plans to revise the Measures for the Administration of the Adoption of International Standards.
On May 9, the website of the State Administration for Market Regulation published the “Notice on Public Solicitation of Comments on the Measures for the Adoption of International Standards (Draft for Comments),” with a deadline for submitting feedback set for June 8.
The Measures comprise 26 articles, redefining the scope of adopting international standards and the entities authorized to do so. They explicitly stipulate that the applicable international standards are those issued by ISO, IEC, and ITU. The Measures also establish comprehensive management throughout the entire process of adopting international standards, notably introducing requirements for preliminary research activities such as dynamic monitoring, applicability analysis, and validation; strengthening procedural requirements for assessment, drafting, and review; adding obligations to compile statistical data on the implementation of national standards based on adopted international standards; and shortening the development cycle for such national standards.

The Sixth Global AEO Conference opened in Shenzhen.
On May 8, the Sixth Global Authorized Economic Operator (AEO) Conference opened in Shenzhen, bringing together approximately 1,200 delegates from customs authorities worldwide, relevant international organizations, industry associations, and AEO‑certified enterprises. The Global AEO Conference is the highest‑level, worldwide forum in this field, and this edition marks the first time it has been held in China.
Ian Sanders, Secretary General of the World Customs Organization, stated that China is a key member of the WCO, and Shenzhen is one of China’s most dynamic, innovation‑driven frontier cities. By hosting this conference here, we hope to encourage all stakeholders to think broadly and embrace bold innovation, engaging in thorough discussions around the theme “Leveraging the Advantages of the AEO System to Promote Inclusive and Sustainable Global Trade.” The event has built an important bridge for advancing and upgrading AEO‑system innovation worldwide, and we look forward to further harnessing the strengths of the AEO framework through in‑depth exchanges and deliberations, thereby strengthening international mutual recognition and cooperation under the AEO regime and enhancing global trade security and facilitation.

Three departments have issued the Industry Standardization Requirements for Electric Bicycles and the Administrative Measures for the Public Announcement of Industry Standards.
On May 8, the website of the Ministry of Industry and Information Technology published “Announcement No. 6 of 2024” issued by three departments, promulgating the “Normative Conditions for the Electric Bicycle Industry” and the “Administrative Measures for the Public Announcement of Normative Conditions in the Electric Bicycle Industry.”
The “Standardized Conditions” are based on the fundamental principles of “rational planning, quality assurance, innovation and upgrading, and safe production,” and set forth requirements across seven key areas: enterprise location and layout, process equipment, product quality and management, intelligent manufacturing and green manufacturing, workplace safety, protection of workers’ rights, and safeguarding consumer interests. Specifically, the product quality and management section mandates that the primary products manufactured and procured by enterprises comply with relevant mandatory national standards, thereby ensuring product quality. The intelligent and green manufacturing section encourages enterprises to strengthen their information‑technology infrastructure, implement traceability management, adopt green manufacturing practices, and conduct safety monitoring throughout the entire product lifecycle. The workplace safety section underscores the importance of enhancing personnel management for specialized roles and establishing separate facilities for storing hazardous materials.

The Ministry of Industry and Information Technology has announced four projects to develop or revise mandatory national standards related to lithium batteries.
On May 8, the website of the Ministry of Industry and Information Technology published a notice soliciting public comments on the draft revision plans for four mandatory national standards, including “Safety of Lithium-Ion Batteries and Battery Packs for Electrical and Electronic Equipment — Part 1: General Requirements.” The deadline for submitting feedback is June 8.
The mandatory national standard development and revision project plan published in the “Opinions” includes the following: “Safety of Lithium-Ion Batteries and Battery Packs for Electrical and Electronic Equipment – Part 1: General Requirements,” “Safety of Lithium-Ion Batteries and Battery Packs for Electrical and Electronic Equipment – Part 3: Power Tools,” “Safety of Lithium-Ion Batteries and Battery Packs for Electrical and Electronic Equipment – Part 4: Toys,” and “Safety of Lithium-Ion Batteries and Battery Packs for Electrical and Electronic Equipment – Part 5: Portable Household Appliances.”

The Ministry of Commerce has decided to continue imposing anti-dumping measures on imported stainless steel products originating in the European Union, Japan, South Korea, and other regions.
On May 8, the website of the Ministry of Commerce published the “Announcement on the Ruling of the Review Investigation into Anti-Dumping Measures on Imports of Stainless Steel Billets and Hot-Rolled Stainless Steel Sheets/Coils Originating in the European Union, Japan, the Republic of Korea, and Indonesia.”
The Announcement clarifies that the investigating authority has determined that, during the original investigation period, dumping of imported stainless steel billets and hot-rolled stainless steel sheet/coil originating in the European Union, Japan, the Republic of Korea, and Indonesia caused material injury to China’s domestic industry for such products, and that a causal link exists between the dumping and the material injury. Accordingly, the investigating authority has decided to continue implementing the anti-dumping measures in accordance with Ministry of Commerce Announcement No. 31 of 2019.

The Ministry of Ecology and Environment plans to issue national ecological and environmental standards related to near-surface disposal of radioactive solid waste.
On May 8, the website of the Ministry of Ecology and Environment published the “Notice on Public Solicitation of Comments on the National Ecological and Environmental Standard ‘Technical Guidelines for Environmental Impact Assessment: Format and Content of Environmental Impact Reports for Near-Surface Disposal of Radioactive Solid Waste (Draft for Comments)’,” with a deadline for submitting feedback set for May 31.
The standard specifies the general principles, normative technical requirements, and the format and content for preparing environmental impact assessment reports for near-surface disposal projects of radioactive solid waste. It applies to the environmental impact assessment of new and expanded near-surface disposal projects involving low-level radioactive solid waste. For other types of radioactive solid waste disposal, such as cavern‑type disposal, this standard may be used as a reference. As for the environmental impact assessment of very low‑level radioactive solid waste landfills, the relevant content at each stage may be consolidated and simplified as needed, with the standard serving as a reference.

The Ministry of Natural Resources has launched the 2024 urban land and space monitoring program.
On May 9, the website of the Ministry of Natural Resources published the “Notice on Conducting the 2024 Urban Territorial Spatial Monitoring Work.”
The Notice stipulates that, using the 2023 National Land Change Survey results as the base map and drawing on high-resolution remote-sensing imagery available as of end-June 2024 along with the latest relevant thematic data, urban land‑space monitoring shall be carried out nationwide in cities at or above the prefecture level (with other cities, established towns, and related administrative areas encouraged to follow suit and implement concurrently), complemented by field surveys and other field‑based activities. The monitoring will be grounded in the current status of land use, further refining the land‑use categories derived from the change‑survey results to delineate specific land‑use types, define the spatial location, footprint, area (or length), and associated attributes of the monitored elements, and track their changes. This will enable a comprehensive understanding of the overall scale of urban development, land‑use structure, infrastructure, and service functions, thereby supporting refined management of urban construction land, the formulation and implementation oversight of territorial‑spatial planning, as well as territorial‑spatial planning–based urban health assessments and land‑use control measures.

Shenzhen plans to issue opinions on three local standards, including the “Application Guide for Copyright Service Evidence Preservation Based on Blockchain Technology.”
On May 8, the Shenzhen Municipal Administration for Market Regulation published a notice on its website soliciting public comments on three local standards, including the “Guideline for Blockchain-Based Copyright Service Evidence‑Keeping Applications.” The deadline for submitting feedback is June 7.
Among them, the “Standards for Pre‑Bankruptcy Counseling Services” sets forth requirements covering the basic principles of pre‑bankruptcy counseling, organizational structure, staffing, facility and equipment standards, service procedures, appointment registration, scheduling of counseling sessions, delivery of counseling materials, receipt of acknowledgment, record‑keeping, information sharing, data reporting, as well as service evaluation and continuous improvement. These standards apply to bankruptcy administration authorities in organizing and conducting pre‑bankruptcy counseling services.

Shanghai has issued the “2024 Shanghai Product Supervision and Spot-Check Plan for the Metrology Sector.”
On May 9, the Shanghai Municipal Administration for Market Regulation published on its website the “Notice on Issuing the ‘2024 Shanghai Product Supervision and Spot-Check Plan in the Field of Metrology.’”
The Plan specifies that, in 2024, citywide supervisory spot checks in the metrology field will cover product quality of measuring instruments, products bearing energy‑efficiency and water‑efficiency labels, excessive packaging of goods, and the net content of prepackaged items. The annual inspection plan encompasses 76 categories of products across both the production and distribution sectors, with approximately 2,000 batches sampled. Specifically, the 2024 plan includes spot checks on eight categories of measuring instruments—primarily those used in fair trade and safety‑related applications that directly affect public interests and urban operational safety—and also conducts quality‑supervision inspections on products that have recently obtained type‑approval certificates through exemption from type evaluation. Additionally, the plan calls for inspections of 25 categories of packaged goods, focusing on food, cosmetics, fresh agricultural products, and related gift sets that are prone to excessive packaging in the distribution and production stages. Furthermore, 21 categories of prepackaged products will be subject to spot checks, covering food, cosmetics, agricultural inputs, automotive supplies, pet products, and counting‑type items across the production and distribution sectors.

Guangdong plans to issue the “General Enterprise Credit Risk Classification Management Standard.”
On May 7, the Guangdong Administration for Market Regulation published on its website the “Notice on Soliciting Comments on the Guangdong Provincial Local Standard ‘General Specification for Enterprise Credit Risk Classification Management’ (Draft for Public Comment).”
The Standard establishes the terminology and definitions, fundamental principles, factors influencing enterprise credit risk, classification indicators, classification model, grading and adjustment of enterprise credit risk levels, and applications of classification results for general‑purpose enterprise credit risk management. It is applicable to market regulatory authorities at all levels in carrying out such classification work and may also serve as a reference for specialized market regulators and other government departments engaged in this task.

The Beijing Municipal Government plans to issue the “Norms for Risk Assessment and Control of Work Safety in Production and Business Entities.”
On May 8, the Beijing Municipal Government website published the “Notice on Public Solicitation of Comments on the ‘Norm for Risk Assessment and Control of Work Safety in Production and Business Entities,’” with a deadline for submitting feedback set for June 8.
The Standard specifies the general requirements, work processes, planning and preparation, risk identification, risk analysis, risk assessment, risk control, risk monitoring and updating, risk communication, as well as reporting on assessment and control for safety production risk assessment and management in production and business entities, and applies to such entities in carrying out these activities.

The Ministry of Commerce has initiated an anti-dumping investigation into cypermethrin imports originating in India.
On May 7, the Ministry of Commerce website published the “Announcement on Initiating an Anti-Dumping Investigation into Cypermethrin Imported from India.”
The Notice clarifies that the Ministry of Commerce has decided to initiate an anti-dumping investigation, effective May 7, 2024, into cypermethrin originating in India. The investigation shall commence on May 7, 2024, and is generally expected to conclude by May 7, 2025; in exceptional circumstances, it may be extended by up to six months. During the investigation, interested parties shall truthfully disclose relevant information and submit pertinent materials. Should any interested party fail to provide truthful information or materials, fail to furnish necessary information within a reasonable timeframe, or otherwise seriously impede the investigation, the Ministry of Commerce may render a determination based on the facts already ascertained and the best available information.

Three departments have revised the list of psychotropic substances.
On May 7, the National Medical Products Administration published the “Announcement on Adjusting the List of Psychotropic Drugs” on its website.
The Notice clarifies that dextromethorphan, compound preparations containing diphenoxylate, nalfurafine, and lorcaserin will be added to the List of Category II Psychotropic Substances; furthermore, midazolam API and injectable formulations will be reclassified from Category II to Category I psychotropic substances, while other single‑ingredient midazolam preparations will remain in Category II.

The National Development and Reform Commission has issued the Work Plan for the “Three Initiatives” on Occupational Disease Prevention and Control.
On May 7, the website of the National Health Commission issued the “Notice on Issuing the Work Plan for the ‘Three Initiatives’ on Occupational Disease Prevention and Control.”
The Notice issued three documents: the Work Plan for the Expansion of Occupational Hazard Reporting (2024–2025), the Work Plan for Occupational Health Assistance to Small, Medium, and Micro Enterprises (2024–2025), and the Work Plan for Enhancing Quality and Ensuring Compliance of Occupational Disease Prevention and Control Institutions (2024–2025).

The National Development and Reform Commission has issued the Measures for the Supervision of the Electricity Market.
On May 8, the National Development and Reform Commission’s website published the Measures for the Supervision of the Electricity Market.
The Measures comprise ten chapters and forty-two articles, clearly defining the scope of regulatory oversight, rules governing the operation of the electricity market, registration management for market participants, measures for intervening in or suspending market activities, procedures for resolving market disputes, requirements for information disclosure, supervisory measures, and legal liabilities. They also stipulate that the electricity regulatory authority may, in accordance with relevant provisions, impose sanctions on entities engaged in defaulting on contractual obligations, abusing their dominant market position to manipulate prices, or failing to disclose information as required, thereby incorporating such misconduct into the national credit system and consolidating it on the energy‑industry credit information platform, and implementing tiered and categorized regulation commensurate with the severity of the violation.

The Shanghai Municipal Human Resources and Social Security Bureau has issued the “Action Plan for Upholding Benchmarking Reforms and Continuously Optimizing the Business Environment.”
On May 6, the Shanghai Municipal Government website published the “Notice on Issuing the Action Plan for Upholding Benchmarking-Based Reform and Continuously Optimizing the Business Environment.”
The Action Plan comprises five key areas and 24 specific measures, clearly outlining the implementation and refinement of a series of employment‑stabilization policies, including wage‑retention refunds, special‑purpose loans, and employment and social‑security subsidies. It also extends the temporary reduction in unemployment and work‑injury insurance rates, launches the “Happy Work Shanghai Plus” initiative, prudently adjusts the minimum wage standard, and continues to publicize and enforce policy documents addressing workplace sexual harassment and inappropriate managerial practices. Furthermore, it guides enterprises in revising their internal rules and regulations in line with these guidelines, strengthens internal complaint‑resolution mechanisms, deepens the “one‑stop acceptance” reform for inspection and arbitration, and conducts citywide evaluations of the “one‑stop acceptance” reform, among other initiatives.

Shanghai has released 11 local standards, including the “Safety Management Specification for Residential Elevators.”
On May 6, the Shanghai Municipal Market Supervision Administration website published the “Notice on the Release of 11 Local Standards, Including the ‘Safety Management Specification for Residential Elevators.’”
This batch of newly released local standards primarily includes the “Guidelines for Data Transmission on the IoT-Based Fire-Fighting Facilities Operation Platform,” the “Guidance on Graded and Classified Applications of Facial Recognition in Public Places,” the “Safety Management Specifications for Hazardous Chemicals in Industrial and Commercial Enterprises,” the “Safety Management Specifications for Residential Elevators,” the “Basic Requirements for the Operation and Management of Disaster Relief Material Storage Facilities,” the “Technical Conditions for Scrapping Major Components of In-Service Mechanical Parking Equipment,” and the “Safety Assessment Specifications for Aging Residential Elevators.”

Beijing plans to issue the “Supplementary Notice on Issues Related to the Management of Green Development Demonstration Projects in the Construction Sector.”
On May 7, the Beijing Municipal Government website published the “Notice on Public Solicitation of Comments on the ‘Supplementary Notice on Issues Related to the Management of Green Development Demonstration Projects in the Construction Sector (Draft for Comments),’” with a deadline for submitting feedback set for May 13.
The Notice comprises five articles and primarily revises or clarifies certain provisions in the Implementing Rules pertaining to public‑building energy‑saving and green‑renovation projects, ultra‑low‑energy buildings, and high‑star‑rated green buildings that are eligible for municipal incentive funding. It specifies that both large‑scale and standard public‑building energy‑saving and green‑renovation projects applying for municipal incentives must achieve an energy‑saving rate of no less than 15%. Projects that have passed the comprehensive acceptance inspection conducted by the district housing and urban–rural (municipal) construction commission will receive municipal incentive funds—up to RMB 1,200 per ton of standard coal—based on the verified amount of energy saved. Furthermore, if a public building, having already received municipal financial incentives, undertakes another energy‑saving and green‑renovation project that meets the corresponding energy‑saving requirements, it may apply for additional incentive funding.

Shenzhen plans to issue the “Data Trading Compliance Assessment Standards.”
On May 7, the Shenzhen Municipal Government website published the “Notice on Public Solicitation of Comments on the ‘Data Trading Compliance Assessment Standards (Draft for Comments)’,” with a deadline for submitting feedback set for June 6.
The Standard sets forth the assessment principles, framework, grading system, requirements for subject‑level compliance assessments, requirements for asset‑level compliance assessments, requirements for circulation‑level compliance assessments, and procedural requirements for compliance assessments in data transactions. It applies to compliance assessment activities related to data transactions that are managed and carried out by competent authorities and supervisory bodies, trading entities, third‑party legal service providers, data‑transaction platform operators, and other relevant stakeholders.

Shenzhen plans to revise the “Administrative Measures for the Recognition of Key Logistics Enterprises in Shenzhen.”
On May 6, the Shenzhen Municipal Transportation Bureau published on its website a notice soliciting public comments on the “Administrative Measures for the Recognition of Key Logistics Enterprises in Shenzhen (Draft for Comments),” with the deadline for submitting feedback set for June 7.
The Measures consist of five chapters and twenty articles, covering general provisions, criteria for designation, designation procedures, supervision and management, and supplementary provisions. They set forth specific requirements regarding the corporate nature and eligibility criteria for different types of key logistics enterprises, and clearly delineate the processes for publicizing information on the designation of key logistics enterprises, accepting applications, reviewing supporting documents, and conducting public notice. The Measures also establish an exit mechanism for key logistics enterprises and specify the circumstances under which applicant enterprises, staff of the competent authorities, and personnel of entrusted third-party agencies may engage in unlawful or non-compliant conduct, along with the corresponding disciplinary measures.

The National Health Commission has released three major action plans to strengthen occupational disease prevention and control and provide health support to small, medium, and micro enterprises.
On May 7, the National Health Commission website issued the “Notice on Issuing the Work Plan for the ‘Three Initiatives’ on Occupational Disease Prevention and Control.”
The work plan aims to achieve comprehensive coverage of employers in the industrial sector that face severe occupational disease hazards, improve the quality of occupational hazard reporting, standardize services provided by occupational disease prevention and control institutions, strengthen occupational health management in small, medium, and micro enterprises, and safeguard workers’ occupational health rights and interests. Health authorities at the provincial and municipal levels are required to implement these measures diligently, in light of local conditions, and jointly promote the high-quality development of occupational health.

The Shanghai Municipal Human Resources and Social Security Bureau has released the “2024 Action Plan for Optimizing the Business Environment.”
On May 6, the Shanghai Municipal Human Resources and Social Security Bureau published on its website the “Notice on Issuing the Action Plan for Upholding Benchmarking Reform and Continuously Optimizing the Business Environment.”
The Notice focuses on the labor‑employment sector, aiming to reduce business costs, strengthen employment protections, and enhance the efficiency of resolving labor disputes, thereby promoting both flexibility in the labor market and stability in labor relations. Key measures include:
1. Deepening Reform Through Comprehensive Benchmarking: By reducing social costs, strengthening employment safeguards for enterprises, protecting workers’ rights and interests, enhancing transparency in oversight and law enforcement, and improving the efficiency of labor dispute resolution, we are fostering a more stable and equitable labor environment for both businesses and employees.
2. Reinvigorating High-Quality, Full Employment: Prioritize employment for young people and disadvantaged groups, enhance protections for flexible workers, strengthen the development of a skilled workforce, leverage entrepreneurship to create jobs, and optimize the delivery of public employment services.
3. Further Enhancing Labor Relations Governance: Promote harmonious and stable labor relations, strengthen the protection of rights and interests for key groups, advance inclusive and prudent regulatory enforcement, and facilitate diversified mechanisms for resolving disputes and conflicts.

Three departments have introduced a package of unemployment insurance policies and measures to help enterprises stabilize employment.
Recently, the Ministry of Human Resources and Social Security, the Ministry of Finance, and the State Taxation Administration jointly issued the “Notice on Extending the Implementation of the Unemployment Insurance Policy to Support Enterprises in Stabilizing Employment” (Ministry of Human Resources and Social Security Document No. 40 [2024]).
The Notice explicitly stipulates the continued implementation of three policy measures that benefit businesses and the public:
First, with regard to reducing the burden on businesses, the policy of temporarily lowering the unemployment insurance contribution rate to 1% will be extended through the end of 2025.
Second, with regard to stabilizing employment, the policy of providing stabilization subsidies to insured enterprises that maintain or reduce layoffs will be extended through the end of 2024. For small, medium, and micro enterprises, the subsidy will cover up to 60% of the unemployment insurance premiums actually paid by the enterprise and its employees in the previous year; for large enterprises, the subsidy rate will not exceed 30%. The scope of eligible expenditures has been expanded from the current four categories of job‑stabilization costs to include expenses aimed at reducing production and operating costs. Social organizations, foundations, social service agencies, law offices, accounting offices, and individually owned businesses that participate in insurance as entities shall implement this policy by analogy.
Third, with regard to skills enhancement, the eligibility requirements for the skills‑upgrade subsidy will continue to be relaxed by lowering the minimum period of insurance participation and expanding the scope of beneficiaries through the end of 2024. Eligible insured employees who have contributed for at least one year and hold a professional qualification certificate or a vocational skills level certificate, as well as those receiving unemployment insurance benefits, will be granted a skills‑upgrade subsidy.

The General Administration of Customs has issued the “Administrative Enforcement Discretionary Standards for the Management of ‘Shortage and Surplus Tolerances’ in Processing Trade Goods.”
Recently, the General Administration of Customs has formulated and promulgated the “Administrative Enforcement Discretionary Standards for Managing the ‘Shortage–Oversupply Range’ of Processing Trade Goods,” which will take effect on June 1, 2024.
Based on the item numbers registered in the processing trade ledger, if, within the current verification cycle, the under‑ or over‑shipment rate for a single item or for multiple items falls within the range of [–1%, 1%], this discretionary standard shall apply. If the under‑ or over‑shipment rate for a single item exceeds the [–1%, 1%] range, other relevant administrative provisions shall apply.

Taxation
The Standing Committee of the National People’s Congress has released the 2024 legislative plan, which will include deliberation on the Value-Added Tax Law in December.
On May 8, the website of the National People’s Congress of China published the “2024 Legislative Work Plan of the Standing Committee of the National People’s Congress,” which outlines the drafting and deliberation of legislative bills for the year.
First, 16 legislative bills will continue to be deliberated, including the Financial Stability Law and the revised Public Security Administration Punishment Law in June, and the Value-Added Tax Law in December. Second, 23 bills will undergo their first reading, covering amendments to the Accounting Law, the Statistics Law, the Anti-Money Laundering Law, the Enterprise Bankruptcy Law, the Anti-Unfair Competition Law, the Tendering and Bidding Law, among others, with explicit plans to deliberate an Ecological and Environmental Code. Third, preliminary review items have been identified, including the enactment of a State-Owned Assets Law (with revisions to the Law on State-Owned Assets of Enterprises, to be considered concurrently), the Telecommunications Law, and amendments to the Commercial Bank Law, the Banking Supervision and Administration Law, the Foreign Trade Law, and the Lawyers Law. Legislative initiatives related to fiscal and tax systems, internet governance, and the sound development of artificial intelligence are also under study; relevant authorities are directed to promptly carry out research and drafting work, with deliberations scheduled as appropriate.

By resolving tax bottlenecks in the “trade-in” program and implementing “reverse invoicing,” numerous resource‑recycling enterprises in Shanghai have reaped benefits.
Starting April 29, individuals who sell scrapped products to resource‑recycling enterprises may have eligible enterprises issue invoices to them. Reportedly, several resource‑recycling companies in Shanghai have already benefited from this policy.
Shanghai Tianqiang Industrial Co., Ltd. is a company specializing in the recycling of waste plastics and the production of plastic pellets. Last year, the company recycled 15,000 tons of waste plastics and benefited from an immediate VAT refund exceeding RMB 5 million under the comprehensive resource‑recycling tax policy.
Hu Xichao, head of Tianqiang Industrial, stated that in the past, purchasing waste plastics directly from enterprises typically allowed for the issuance of valid VAT invoices, whereas sporadic purchases from individual residents or other small-scale sources often failed to generate corresponding invoices. As a result, businesses were unable to claim input VAT credits and also struggled to obtain documentation necessary for deducting pre‑tax expenses when calculating corporate income tax.
Following the implementation of “reverse invoicing,” resource‑recycling enterprises can issue either special VAT invoices or ordinary invoices in accordance with regulations. Hu Xichao stated that this not only resolves issues related to tax credit and cost deductions but also allows the corresponding sales revenue to qualify for the immediate‑collection‑and‑immediate‑refund preferential policy, which is welcome news for businesses.

Five departments: State-owned public-interest collecting institutions may import cultural relics tax-free.
The Ministry of Finance, the General Administration of Customs, the State Taxation Administration, the Ministry of Culture and Tourism, and the National Cultural Heritage Administration recently jointly issued the “Regulations on Duty-Free Import of Collections by State-Owned Public‑Benefit Collecting Institutions” (Announcement No. 4 of 2024 of the Ministry of Finance, the General Administration of Customs, the State Taxation Administration, the Ministry of Culture and Tourism, and the National Cultural Heritage Administration).
From May 1, 2024, to December 31, 2027, cultural relics imported by state-owned public‑interest collecting institutions for the purpose of permanent collection, exhibition, and research—whether acquired through overseas donations, restitution, recovery, or purchase—as well as those imported by the Ministry of Foreign Affairs and the National Cultural Heritage Administration, shall be exempt from import duties, value‑added tax at the import stage, and consumption tax.

LITIGATION & ARBITRATION
The Supreme People’s Court and the Publicity Department of the CPC Central Committee have established a “top-to-top” online litigation‑mediation coordination mechanism for copyright disputes.
Recently, the Supreme People’s Court and the Publicity Department of the CPC Central Committee jointly issued the “Notice on Establishing a ‘Top‑to‑Top’ Online Mediation‑Litigation Coordination Mechanism for Copyright Disputes,” setting forth clear requirements for establishing and improving a mechanism to prevent and resolve copyright disputes.
The Notice sets forth the specific operational details of the online mediation‑litigation coordination mechanism for copyright disputes, covering division of responsibilities, workflow, and the development of a mediation workforce, while also establishing concrete requirements for the selection, management, training, and guidance of mediation organizations and mediators. It further stipulates that the Supreme People’s Court, leveraging the People’s Courts Mediation Platform, together with the Copyright Administration of the Publicity Department of the CPC Central Committee, will guide copyright administration departments at all levels, relevant industry associations, mediation institutions, and individual mediators to progressively facilitate seamless online‑offline links between mediation and litigation through institutional and personnel integration. This will enable the provision of end-to-end online dispute‑resolution services, including appointment‑based or entrusted mediation, audio‑video mediation, drafting of mediation agreements, and mediation‑litigation coordination.

The Supreme People’s Court has released typical cases of hierarchical jurisdiction.
On May 8, the Supreme People’s Court released five landmark cases involving hierarchical jurisdiction, leveraging this mechanism to advance source-based dispute resolution, clarify adjudicatory rules for emerging types of cases, and ensure uniformity in the application of law across similar matters.
In Case 1, through a hierarchical review process, the three-tier court system seamlessly integrated the mechanism of elevated jurisdiction with the model judgment system. The court promptly clarified the adjudicatory rules governing contract disputes involving off-campus education and training for minors, and, following the entry into force of the model judgment, successfully mediated 71 parallel cases pending before the court within five days. This provided a normative reference for resolving a large number of similar cases and pre-litigation disputes, effectively mitigating issues such as inconsistent judicial standards and the recurrence of latent conflicts, thereby yielding positive outcomes in terms of policy guidance, legal application, and social governance.

For the fifth consecutive year, the Supreme People’s Procuratorate and two other departments have launched a nationwide special campaign known as the “Two Strikes” initiative.
Recently, the Supreme People’s Procuratorate, the Ministry of Public Security, and the Ministry of Ecology and Environment jointly issued the “Notice on Thoroughly Cracking Down on Environmental Crimes and Illegal Activities Involving Hazardous Waste, as well as Falsification of Pollution Source Monitoring Data.”
The Notice sets forth work requirements in four areas: First, focus on major and high‑profile cases and intensify enforcement efforts. Second, leverage technological innovation to enhance the precision of law enforcement. By integrating data from platforms such as solid waste management, online monitoring of pollution sources, and environmental impact assessment approvals, and by employing technologies like satellite remote sensing and drone patrols, we will break down information silos, strengthen data cross‑checking and integration, refine early‑warning systems, improve the identification of illegal leads, and establish intelligent, digitalized notification mechanisms, thereby laying a solid foundation for targeted crackdowns on unlawful and criminal activities. Third, deepen inter‑agency coordination and pool resources to achieve synergistic results. The three departments shall strengthen collaboration, establish sound long‑term mechanisms for seamless administrative‑criminal linkage and a two‑way case‑consultation system, and develop evidence‑standard guidelines for “two‑strike” cases. Fourth, bolster enforcement‑related support to promote green development among enterprises. Adhering to a balanced approach that combines leniency with strictness, we will reinforce assistance and guidance, and advance compliance initiatives for implicated enterprises in a proactive, prudent, and orderly manner.

Supreme People’s Court: When hearing cases, courts shall refer to similar cases in the Supreme People’s Court Case Database when rendering judgments.
On May 7, the Supreme People’s Court website published the “Work Regulations on the Construction and Operation of the People’s Courts Case Database.”
The Regulations consist of six chapters and thirty articles, stipulating that the People’s Courts Case Database shall include both the guiding cases issued by the Supreme People’s Court and the reference cases reviewed and admitted to the database by the Supreme People’s Court. With respect to any specific issue of legal application, the number of reference cases included shall generally not exceed two. Guiding cases shall be directly entered into the database in their original text as published, retaining their original case numbers while being assigned additional entry numbers. The Regulations further provide that, when hearing cases, people’s courts at all levels shall consult the People’s Courts Case Database and render judgments strictly in accordance with laws, judicial interpretations, and normative documents, while also referring to similar cases already entered into the database. When citing such similar cases, people’s courts at all levels may incorporate the reasoning and key points of those cases as considerations and grounds for their own decisions, but they shall not serve as the basis for the judgment.

The Supreme People’s Procuratorate and the All-China Federation of Trade Unions jointly released typical cases on eradicating wage arrears.
On May 7, the website of the Supreme People’s Procuratorate published the “Notice on Issuing the ‘Typical Cases Demonstrating the Full Role of Administrative Prosecutorial Supervision in Eradicating Wage Arrears.’”
This batch of typical cases comprises four matters, all of which are administrative non-litigious enforcement supervision cases. They focus on sectors where wage arrears are particularly prevalent, such as the construction and service industries, addressing pressing issues like employers’ malicious deregistration that results in unpaid wages and difficulties in enforcement, thereby promoting root‑cause governance of wage‑arrear problems. In an administrative non‑litigious enforcement case involving wage arrears at a Shanghai‑based catering company, the procuratorial organ established an interdepartmental task force. By issuing prosecutorial recommendations, supporting lawsuits, and urging relevant authorities to refer clues of suspected crimes of refusing to pay labor remuneration to public security organs, it successfully recovered all outstanding wages owed to 35 workers. In response to the deeper‑level social governance issues uncovered during the investigation, the procuratorial organ took the lead in establishing mechanisms for information sharing and coordinated work with the district human resources and social security bureau and the district market regulation bureau. It also jointly issued, with the district federation of trade unions, a framework agreement on a collaborative working mechanism to safeguard employees’ labor rights, thus forging a concerted effort to address wage arrears and ensure timely payment.

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