JC Master Legal News Issue 1107

Release Date:

2024-04-15 19:18

Key Takeaways for This Issue

Seven departments: Formulate guidelines for sustainable development information disclosure by listed companies and strengthen capital market support for green and low-carbon development.
Recently, the People’s Bank of China and six other departments jointly issued the “Guiding Opinions on Further Strengthening Financial Support for Green and Low-Carbon Development,” which sets out a plan to essentially establish an internationally leading financial framework for supporting green and low-carbon development within the next five years.
The State Administration of Foreign Exchange has streamlined the management of trade-related foreign exchange transactions.
The State Administration of Foreign Exchange has published on its website the “Notice of the State Administration of Foreign Exchange on Further Optimizing the Management of Trade Foreign‑Exchange Transactions,” which will take effect on June 1, 2024.
The State Council has promulgated the Regulations on Ecological Protection Compensation.
The Regulations on Ecological Protection Compensation were promulgated on April 10 and will take effect on June 1.
Supreme People’s Court: Will expedite the formulation of judicial interpretations on punitive damages in food and drug cases, in alignment with the Implementing Regulations of the Consumer Protection Law.
On April 9, the State Council Information Office held a regular policy briefing to introduce relevant details of the Regulations on the Implementation of the Consumer Rights Protection Law.
Finance & Capital Markets
The China Securities Regulatory Commission has released its 2023 report on the development of a law-based government.
The China Securities Regulatory Commission (CSRC) adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly studies and comprehends the spirit of the 20th National Congress of the Communist Party of China and the First and Second Plenary Sessions of the 20th CPC Central Committee, and comprehensively implements the guiding principles of the Central Financial Work Conference and the Central Economic Work Conference. It earnestly applies Xi Jinping’s Thought on the Rule of Law, upholds the Party’s unified leadership over the rule-of-law development of the capital market, and, in strict accordance with the requirements of the Outline for Building a Law-Based Government (2021–2025), maintains the overarching principle of seeking progress while ensuring stability, continuously strengthening the rule-of-law governance of the capital market.
I. Advance the stock issuance registration system in a substantive and effective manner, further strengthening the capital market’s foundational legal framework.
First, we have advanced the stock issuance registration system in a substantive and effective manner. On February 17, 2023, the institutional rules governing the full implementation of the stock issuance registration system were officially promulgated and put into effect. Since the launch of this comprehensive registration‑based reform, the relevant institutional arrangements have operated smoothly and in an orderly fashion, with strengthened regulatory oversight and enforcement across all stages—before, during, and after issuance—and with continuously improving quality and effectiveness in the capital market’s support for the real economy and technological innovation.
Second, we will strengthen the development of the capital market’s foundational legal framework. The Standing Committee of the National People’s Congress has reviewed and adopted the revised Company Law. The State Council has approved the Regulations on the Supervision and Administration of Private Investment Funds. We will continue to advance the formulation and revision of laws, regulations, and judicial interpretations, including the Enterprise Bankruptcy Law, the Financial Stability Law, the Regulations on the Supervision and Administration of Listed Companies, and the Regulations on the Supervision and Administration of Securities Companies.
Third, we have refined key institutional frameworks and rules in the capital market. Throughout the year, 20 regulations and 64 normative documents were issued. Notably, we formulated the Measures for the Administration of Independent Directors of Listed Companies, thereby fostering a more robust and scientifically sound system for independent directors; revised the Measures for the Issuance and Trading of Corporate Bonds, bringing corporate bonds fully within the regulatory framework for corporate bonds; amended the Measures for the Administration of Futures Exchanges, further strengthening the institutional foundation for exchange oversight; and revised the Measures for the Administration of Private Asset Management Business by Securities and Futures Operating Institutions, guiding these institutions to enhance the quality and effectiveness of their private asset management services in supporting the real economy.
II. Deepen the transformation of government functions and earnestly fulfill statutory duties.
First, we fulfilled our administrative licensing duties efficiently and in accordance with the law. Throughout the year, we received a total of 2,786 administrative licensing applications, including 794 registration applications. We issued a cumulative total of 5,386 procedural documents, such as requests for supplementary materials, notices of acceptance, responses, suspension of review (for registration), resumption of review (for registration), inquiry letters during the registration phase, and supplementary review notices. In addition, we served 2,924 decisions approving (or registering) administrative licenses and 109 decisions terminating the review (or registration).
Second, we will implement comprehensive list-based management of administrative licensing matters. In coordination with the General Office of the State Council, we will complete the revision of the “List of Administrative Licensing Matters Established by Laws, Administrative Regulations, and Decisions of the State Council (2023 Edition).” In line with reform initiatives such as the full implementation of the stock issuance registration system and the transfer of functions for reviewing corporate bond issuances, we will dynamically update and refine the relevant implementation standards and service guides for these administrative licensing matters. We will also ensure the effective implementation of the “Negative List for Market Access (2023 Edition).”
Third, we deepened market‑based product innovation in accordance with the law. We guided exchanges in revising the Rules on Asset‑Backed Securities Business, further standardizing review criteria, information disclosure requirements, and measures to protect the rights and interests of security holders. Over the course of the year, we approved the registration of 15 publicly offered REITs—both initial offerings and follow‑on offerings—and introduced 21 new futures and options contracts to the futures market.
III. Fully implement the “zero tolerance” requirement and uphold law-based, rigorous governance of the city.

First, we have strengthened the institutional framework for a “zero-tolerance” approach in the capital markets. We have implemented the “Opinions on Severely Cracking Down on Securities‑Related Illegal Activities in Accordance with the Law,” and, in line with the decisions and arrangements made at the Central Financial Work Conference to comprehensively enhance financial regulation and effectively prevent and defuse financial risks, we have advanced the revision of the Inter‑Ministerial Opinions on Several Issues Concerning the Handling of Criminal and Administrative Cases Involving Securities and Futures Violations. As a result, our efforts to combat securities‑related illegal activities with a zero‑tolerance stance have yielded significant results.
Second, we strengthened the prosecution of major and high‑profile cases and enforcement in key areas. Throughout the year, a total of 717 cases were handled, including 186 major cases. A total of 539 administrative penalty decisions were issued, with fines and confiscations amounting to RMB 6.389 billion, and 103 individuals were barred from the market. We continued to intensify efforts to crack down on suspected criminal cases, referring 118 such cases to public security authorities and sharing relevant leads. In collaboration with the Ministry of Public Security and the Supreme People’s Procuratorate, we launched a special enforcement campaign targeting securities‑related crimes and violations in the listed‑company sector.
Third, we have implemented targeted improvements to strengthen day-to-day regulatory oversight. We have rigorously upheld registration thresholds and red lines, adopting measures such as focused inquiries, on-site inspections, and working-paper reviews for companies with weak financial foundations, questionable authenticity, or significant violations of laws and regulations. We have accelerated the institutionalization of delisting procedures, resulting in a total of 47 delistings throughout the year, including 44 mandatory delistings. Over the past three years since the launch of delisting reforms, the number of mandatory delistings has surpassed the cumulative total prior to the reforms. We have reinforced the filing‑based supervision of auditing and valuation offices, while intensifying oversight of annual report audits and the implementation of accounting standards. In collaboration with the Ministry of Justice, we issued the Measures for the Administration of Law Offices Engaging in Securities‑Related Legal Services, and continue to ensure robust filing management and targeted inspections of law offices providing securities‑related legal services.
IV. Uphold strict, standardized, impartial, civilized, and efficient law enforcement, and prevent and defuse risks in key areas of the capital market.
First, we have strengthened the institutional foundation of administrative law enforcement and refined inspection and enforcement procedures. We issued the “Rules on the Execution of Administrative Penalties and Confiscated Funds,” providing a comprehensive, standardized framework for the execution of such penalties and funds. We have also improved inspection and enforcement procedures, harmonizing the criteria for fact-finding, legal application, and penalty recommendations in similar cases, thereby further enhancing the standardization and transparency of investigative work. In addition, we have established uniform standards for administrative enforcement documents, specialized inspection equipment, and basic protocols for case communication and public reception, continuously elevating the level of standardized management.
Second, strengthen risk prevention and establish a sound risk monitoring and early-warning mechanism. Refine risk‑monitoring indicators, conduct on-site inspections on a regular basis, and implement the “double-random, one-public” regulatory approach to leverage on-site inspections in proactively identifying and mitigating risks of non‑compliance and violations. Continuously advance the resolution of risks among listed companies, enhance risk prevention and response measures in the futures market, and guard against the cumulative and cascading effects of cross‑market risks.
Third, we continued to refine and improve the institutional mechanisms for building integrity, advancing both punitive measures and incentive schemes in the capital market. We strengthened the development of the capital market’s integrity database and ensured effective collection and application of integrity‑related information. By the end of 2023, the database had recorded over 1.117 million entries on market participants and more than 143,000 entries of integrity information from the securities and futures regulatory system. We maintained robust public access to integrity‑related information in the securities and futures markets, with a total of 624,000 queries—71,000 of which were conducted in 2023. In addition, we innovatively launched early‑warning disclosures for seriously untrustworthy entities active in the capital market, identifying and publishing 244 instances of serious violations and breaches of trust throughout the year. Throughout the year, we submitted 50,262 records of illegal and untrustworthy conduct in the capital market to the National Public Credit Information Platform, with a particular focus on strengthening coordinated enforcement of penalties and credit‑based regulation against entities involved in fraudulent issuance, improper disclosure, and failure to exercise due diligence in securities services.
V. Continuously strengthen oversight and checks on the exercise of power, and promote the standardized and transparent operation of regulatory authority.
First, we have continuously advanced government transparency and strengthened public oversight. We have rigorously implemented the Regulations of the People’s Republic of China on Government Information Disclosure, promptly making public government information that falls within the scope of proactive disclosure. In response to requests for access to information, we processed 384 applications in strict accordance with the law throughout the year. We have also continued to enhance the transparency of standards, procedures, and outcomes, proactively welcoming public scrutiny.
Second, we have steadfastly strengthened legal review and actively promoted awareness of laws and policies. We have reinforced law-based regulation by rigorously scrutinizing the legality of draft regulatory documents, further harmonizing regulatory standards, standardizing regulatory procedures, and enhancing transparency and predictability in oversight. We promptly addressed public concerns on key issues of widespread interest, issuing 14 Q&A sessions throughout the year. On our official website, we published more than 180 news items; on our Sina Weibo account, we posted 732 updates; and on our WeChat platform, we released 640 issues.
Third, we proactively accepted oversight from the National People’s Congress and the Chinese People’s Political Consultative Conference, continuously enhancing our capacity for law-based administration. We effectively integrated the handling of proposals and motions submitted to the Two Sessions with efforts to advance the reform, development, and stability of the capital market, processing a total of 205 proposals and motions from NPC deputies and 184 proposals from CPPCC National Committee members throughout the year.
Fourth, we proactively accepted judicial oversight and strengthened administrative reconsideration supervision. By enhancing overall coordination and guidance, we pooled the strengths of the entire system to ensure effective implementation. Throughout the year, we handled 556 administrative litigation cases, resulting in the timely and effective resolution of administrative disputes. We also processed 440 administrative reconsideration cases, concluding 362 of them; among these, 324 upheld the original administrative actions or dismissed the applicants’ reconsideration requests, while 4 resulted in the revocation of the original administrative actions.
VI. Improve the diversified dispute-resolution mechanism and safeguard investors’ legitimate rights and interests.
First, we have remained officely committed to the people’s standpoint and actively safeguarded investors’ interests. The first representative‑class action involving a STAR Market‑listed company—the Zeda Yisheng case—was concluded through in‑process mediation, resulting in full compensation totaling over RMB 280 million for 7,195 investors. In the Zijing Storage case, intermediary institutions, under the advance‑compensation mechanism, compensated 17,000 investors with RMB 1.086 billion, marking the first instance of advance compensation following the revision of the new Securities Law. Furthermore, the CSRC applied the parties’ commitment system for the first time to protect investors’ legitimate rights and interests, signing commitment‑recognition agreements with four intermediary institutions involved in the Zijing Storage case.
Second, we fully leveraged the functions of the diversified dispute-resolution mechanism for securities and futures disputes. Throughout the year, 3,786 cases were successfully mediated, recovering approximately RMB 652 million in losses for investors. We deepened the development of the litigation‑mediation linkage mechanism, establishing cooperative arrangements with a total of 98 people’s courts nationwide, thereby fostering coordinated and synergistic financial judicial efforts. We accelerated information‑technology development, integrating the online mediation system with both the “Central‑to‑Local Platform” and the “12386 Hotline Platform.” Furthermore, we continued to implement the “Opinions on Piloting Arbitration in the Securities and Futures Industry in Accordance with the Law,” supporting the China (Shenzhen) Securities Arbitration Center in handling capital‑market arbitration cases to a high standard.
Third, we will continue to uphold high standards in safeguarding investors’ rights and interests. Focusing on the key concerns of small and medium-sized investors, we will carry out shareholder engagement activities in depth to help enhance the quality of listed companies. We guided the China Securities Regulatory Commission’s Small and Medium Investor Service Center to attend 500 A-share listed companies’ 2022 annual general meetings in person, exercising its right to ask questions 670 times and its right to make recommendations 33 times, with a 99.8% adoption rate by the listed companies. In addition, we organized specialized training on the proper conduct of shareholders’ meetings for directors, supervisors, and senior management of 1,577 listed companies, thereby effectively urging these companies to improve their corporate governance.
In line with the guiding principles of the Central Financial Work Conference and in accordance with the requirements to strengthen regulation, guard against risks, and promote development, the 2023 efforts to build a law-based government in the capital market still face certain shortcomings: the underlying institutional framework requires further refinement; the effectiveness of regulatory enforcement needs continuous enhancement; and investor protection must be steadily reinforced.
In 2024, the China Securities Regulatory Commission will remain guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, earnestly study and implement Xi Jinping’s Thought on the Rule of Law, and comprehensively carry out the spirit of the 20th National Congress of the Communist Party of China and the First and Second Plenary Sessions of the 20th CPC Central Committee. It will deepen its study and implementation of the guiding principles from the Central Financial Work Conference and the Central Economic Work Conference, uphold and strengthen the Party’s overall leadership, and focus squarely on the theme of high-quality development. Adhering to the principle of seeking progress while maintaining stability—promoting stability through progress and establishing new frameworks before dismantling old ones—the Commission will continue to advance the building of a law-based government in the capital market. With serving the real economy as its central focus, it will further deepen and solidify the stock issuance registration system, continuously improve the capital market’s foundational institutional framework, and strengthen legislation in key areas, thereby laying a robust legal foundation for governing the market in accordance with the law. Upholding an integrated approach that combines stringent regulation, risk prevention, and development promotion, the Commission will regard enhanced oversight and risk mitigation as crucial safeguards for high-quality growth, working to ensure the sustained reduction of risks in priority sectors of the capital market. It will fully implement the requirements for rigorously and lawfully cracking down on securities-related illegal activities, ensuring that regulatory measures are both office and effective, with clear boundaries and zero tolerance for violations in the capital market. Market misconduct such as fraudulent issuances and financial fraud will be severely punished, providing strong legal underpinnings for achieving high-quality development in the capital market.

The 2023 Shenzhen Stock Exchange Earnings Conference Call Theme Week is set to begin.
Promote the strengthening and solidification of the capital market around themes such as new‑type productive forces.
Investors are the lifeblood of the market, while listed companies form its foundation. Recently, the Shenzhen Stock Exchange has thoroughly implemented the spirit of the Central Financial Work Conference and earnestly carried out the China Securities Regulatory Commission’s “Two Strengths and Two Stricts” policy framework. Guided by the overarching theme of “Enhancing Quality and Efficiency to Drive Development, Strengthening Fundamentals to Usher in a New Chapter,” the Exchange has encouraged listed companies to actively host their 2023 annual earnings conferences, thereby promoting the core principles of value investing and long-term investment in the capital markets. The 2023 earnings conferences will be held from mid-April to early June, organized into seven thematic weeks—“State-Owned Enterprise Strength Builds a Solid Foundation,” “New‑Type Productive Forces as the Main Battlefield,” “Private Sector Ascending to a New Stage,” “Greater Bay Area Engine: ‘Guangdong’ Brings Robust Momentum,” “Digital Economy: ‘Smart’ Impetus,” “Energy Revolution: ‘Green’ Opportunities,” and “Advanced Manufacturing: ‘Innovation’ Shapes the Future”—to comprehensively and multi‑dimensionally present corporate performance, operational status, and strategic plans, while addressing investors’ most pressing concerns.
Starting April 16, the Shenzhen Stock Exchange will host a series of collective earnings briefings in its listing hall under the theme “The Strength of State-Owned Enterprises Builds a Solid Foundation.” Eleven listed subsidiaries of China National Building Material Group and four listed subsidiaries of China Merchants Group have been invited to participate, engaging with investors face-to-face through a hybrid online–offline format. On April 29, the Exchange will also convene a “sub‑venue” collective earnings briefing at its Western Base, inviting companies such as CETC Network Security, Jiuyuan YinHai, and China Construction Environmental Energy to take part. During the thematic week, state-owned enterprises including Hikvision, Changan Automobile, FAW Jiefang, and Longyuan Power will likewise hold online earnings presentations (specific details are subject to official announcements). At these briefings, key executives—including the chairman, general manager, chief financial officer, board secretary, and independent directors—will provide insights into the company’s performance, address investor questions, and solicit feedback, helping investors gain a deeper understanding of the company’s operations.
Following the launch of the “State-Owned Enterprise Strength Builds a Solid Foundation” themed week, the remaining six thematic weeks will also be rolled out in succession. The Shenzhen Stock Exchange will actively leverage the functions of its Interactive Easy platform, offering listed companies an interactive channel open to all investors through mechanisms such as soliciting investor questions, facilitating online text-and-image exchanges, screening videos and PPT presentations, and providing live video broadcasts. We welcome broad participation from investors, encouraging them to stay engaged and actively contribute to fostering a healthy market environment that enhances the quality of listed companies.

The Main Battlefield of New‑Type Productive Forces | Preview of the 2023 Annual Results Briefing Week for Shenzhen‑Listed Companies
In the 2024 Government Work Report, “vigorously advancing the development of a modern industrial system and accelerating the growth of new‑type productive forces” was placed at the top of this year’s ten key priorities. The report calls for proactively fostering emerging industries and future‑oriented sectors, and for promoting the integrated, cluster‑based development of strategic emerging industries.
The Shenzhen Stock Exchange has earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council, as well as the directives of the China Securities Regulatory Commission. With a focus on supporting high-level scientific and technological self-reliance and strength, it has concentrated on key areas such as advanced manufacturing, the digital economy, and green, low-carbon development, actively leveraging market functions, continuously enhancing service quality, and accelerating the cultivation and expansion of new‑type productive forces. In doing so, it is driving listed companies and industries to pursue innovation and achieve long-term, sustainable growth.
At present, the Shenzhen Stock Exchange boasts a pronounced cluster advantage in key sectors. The Main Board brings together more than 130 industry‑leading enterprises and nearly 50 technology‑sector champions, nurturing a cohort of benchmark market‑oriented blue chips and category‑specific industry leaders, including BYD, Midea Group, Hikvision, and Luxshare Precision. Meanwhile, the ChiNext Board is deeply aligned with the national innovation‑driven development strategy, with high‑tech offices accounting for nearly 90% of its constituents and strategic emerging industries comprising close to 70%, thereby supporting leading innovators such as CATL, Inovance Technology, and Zhifei Biological, as well as dynamic startups and growth‑oriented enterprises. Guided by these flagship companies, Shenzhen’s industries—ranging from new energy and artificial intelligence to high‑end equipment, information technology, and biopharmaceuticals—are advancing in clustered form, striving to become the primary battleground and strategic stronghold for cultivating a new quality of productivity.
On April 18, the Shenzhen Stock Exchange will host its second collective earnings briefing in the Listing Hall, themed “The Main Battlefield of New‑Type Productive Forces.” Companies including AVIC Optoelectronics, Hornding Dongci, Xiechuang Data, and Yunnan Baiyao have been invited to participate, engaging in face-to-face dialogue with investors through a hybrid online‑offline format. The Exchange will also provide online interactive Q&A, real-time text-and-image communication, and simultaneous video streaming via the Interactive Easy platform.
During the thematic week, a number of companies representing new‑type productive forces—including Jerry Shares, GDE Technology, Huatian Technology, Jinli Permanent Magnet, and Xinlita—will also hold online earnings briefings (specific meeting details are subject to official announcements). At these briefings, key executives such as chairpersons, general managers, chief financial officers, board secretaries, and independent directors will provide insights into their companies’ performance, address investor questions, and listen to investor feedback, helping investors gain a deeper understanding of each company’s operations and development. We look forward to continued attention and active participation from all investors.

The State Administration of Foreign Exchange has streamlined the management of trade-related foreign exchange transactions.
The State Administration of Foreign Exchange has published on its website the “Notice of the State Administration of Foreign Exchange on Further Optimizing the Management of Trade Foreign‑Exchange Transactions,” which will take effect on June 1, 2024.
The Notice comprises six policy measures across three key areas. First, it streamlines the registration and management of foreign trade enterprises by changing the processing procedure for inclusion in the “Directory of Enterprises Engaged in Foreign Exchange Settlement and Receipts” from approval by the State Administration of Foreign Exchange to direct handling by banks. Second, it facilitates cross-border foreign exchange settlement for enterprises by simplifying trade‑related settlement procedures for entities operating within special customs supervision zones, expanding banks’ authority to process special refunds for goods‑trade transactions (including cases where the refund is not returned via the original channel or occurs after more than 180 days), and optimizing the processing of deferred receipt and payment arrangements for Category B and Category C enterprises. Third, it undertakes a review and consolidation of regulations governing foreign‑exchange management for goods trade, abolishing certain documents, integrating provisions related to the registration and processing of goods‑trade foreign‑exchange transactions, and revising the formats of selected official forms.

Two departments: Financial institutions may independently determine the maximum loan-to-value ratio for auto loans.
The People’s Bank of China and the National Administration of Financial Regulation have jointly issued the “Notice on Adjusting Relevant Policies for Auto Loans,” which will take effect as of March 28, 2024.
The Notice clarifies that, on the premise of compliance with laws and regulations and controllable risks, financial institutions may independently determine the maximum loan‑to‑value ratios for loans to purchase conventional‑fuel passenger vehicles and new‑energy passenger vehicles, based on the borrower’s creditworthiness and repayment capacity. For commercial conventional‑fuel vehicles, the maximum loan‑to‑value ratio is 70%; for commercial new‑energy vehicles, it is 75%; and for used cars, it is 70%. Financial institutions are encouraged to leverage specific scenarios such as trade‑in programs, strengthen innovation in financial products and services, and appropriately waive or reduce any default penalties arising from early loan repayment during such trade‑in transactions.

Commercial & Corporate
The State Council has promulgated the Regulations on Ecological Protection Compensation.
On April 10, the Regulations on Ecological Protection Compensation were promulgated.
The Regulations comprise six chapters and thirty-three articles, clearly establishing mechanisms such as vertical fiscal compensation, inter‑regional horizontal compensation, and market‑based compensation. With respect to market‑based compensation, the Regulations stipulate that the State shall establish and improve trading mechanisms for carbon emission rights, pollutant discharge rights, water use rights, and carbon sink rights, promote the development of trading markets, and refine trading rules. In advancing ecological industries, it is required to enhance the participation of rural collective economic organizations and rural residents and to put in place a mechanism for the sustained sharing of benefits. Furthermore, where ecological protection compensation funds are withheld, misappropriated, diverted, delayed, or used in violation of prescribed procedures, the government and relevant competent authorities shall order rectification; if rectification is not carried out within the prescribed time limit, disbursement may be deferred, reduced, suspended, or the funds may be recovered.

The Ministry of Industry and Information Technology has approved 454 industry standards, including the “Technical Specification for Servo Motors Used in Multi-Axis Robots.”
On April 10, the website of the Ministry of Industry and Information Technology published Announcement No. 4 of 2024, approving 454 industry standards, including the “Technical Specification for Servo Motors Used in Multi-Axis Robots,” as well as three amendment sheets to industry standards, such as the “Technical Requirements for Beidou Timing Equipment Supporting Communication Applications,” and six foreign-language versions of industry standards, including the “Round-Block-Channel Type Impermeable Graphite Heat Exchanger.”
Among them, this batch of industry standards comprises 65 items for the chemical industry, 30 for the petrochemical industry, 22 for the ferrous metallurgy industry, 25 for the nonferrous metals industry, 5 for the building materials industry, 1 for the rare earth industry, 130 for the machinery industry, 1 for the aerospace industry, 81 for the light industry, 7 for the electronics industry, and 87 for the telecommunications industry.

The Ministry of Industry and Information Technology has released 49 exemplary cybersecurity insurance service plans.
On April 9, the website of the Ministry of Industry and Information Technology released the “Notice on the Publication of the Catalogue of Typical Cybersecurity Insurance Service Solutions.”
The “Notice” comprises a total of 36 enterprise‑oriented solutions, including the “Cloud‑Based Worry‑Free” cybersecurity insurance service plan, cybersecurity insurance plans tailored to emerging integrated application scenarios, cybersecurity insurance plans for telecommunications and internet enterprises, industrial Internet cybersecurity insurance plans, connected‑vehicle cybersecurity insurance plans, auto insurance solutions for intelligent connected vehicles, and comprehensive e‑commerce cybersecurity insurance solutions. In addition, it includes 13 product‑and‑service‑oriented solutions, such as cybersecurity insurance plans for ransomware protection, security‑managed insurance solutions for small and medium‑sized enterprises, and data ransomware‑prevention insurance services.

The Center for Medical Device Evaluation of the National Medical Products Administration has released the 2024 Work Plan for Developing Guiding Principles on Medical Device Registration Review.
On April 11, the Center for Medical Device Evaluation of the National Medical Products Administration published the “Notice on the Release of the 2024 Plan for the Development of Medical Device Registration Review Guidance Principles (No. 17 of 2024).”
The Plan comprises 109 guidance documents for the registration review of medical devices, primarily including: “Guidance on MRI Safety Evaluation for Medical Devices,” “Guidance on the Registration Review of Single-Use Anesthesia Puncture Needles,” “Guidance on the Registration Review of Helicobacter pylori Resistance Gene Detection Reagents,” “Guidance on the Registration Review of Implantable Cardiac Pacemakers (2024 Revision),” “Guidance on Conditional Approval for Market Release of Medical Devices (2024 Revision),” “Guidance on the Registration Review of Central Medical Suction Systems,” “Guidance on the Registration Review of Single-Use Nasoscopes,” and “Guidance on the Registration Review of Infusion Pumps (2024 Revision).”

IDC, CDN, and several other telecommunications services will pilot the removal of foreign‑ownership caps in Beijing, Shanghai, Hainan, and Shenzhen.
On April 10, the website of the Ministry of Industry and Information Technology published the “Notice on Launching a Pilot Program to Expand Foreign Access in the Value-Added Telecommunications Services Sector.”
The Notice clarifies that pilot programs will be launched first in Beijing’s Comprehensive Demonstration Zone for the Expansion of Service Sector Opening-Up, the Lingang New Area of the Shanghai Pilot Free Trade Zone and its Leading Area for Socialist Modernization, the Hainan Free Trade Port, and Shenzhen’s Pilot Demonstration Zone for Socialism with Chinese Characteristics. Under these pilots, foreign‑ownership restrictions will be lifted for businesses involving Internet Data Centers (IDCs), Content Delivery Networks (CDNs), Internet Service Providers (ISPs), online data processing and transaction processing, as well as information services such as information publishing platforms and delivery services—excluding internet news information, online publishing, online audiovisual services, and internet cultural operations—and information protection and processing services.

The CPC Central Committee and the State Council have issued a document to strengthen the development of the community workforce.
On April 10, the Chinese Government Website released the “Opinions on Strengthening the Development of the Community Worker Team.”
The “Opinions” comprise 17 provisions across six key areas, mandating that localities staff community workers at a ratio of 18 per 10,000 urban residents. At the prefectural and county levels, total staffing quotas shall be implemented and regularly adjusted in a dynamic manner. The document calls for the establishment and improvement of systems for grid‑based service management, home visits, paired assistance, agency services, and first‑response accountability, while strictly enforcing routine attendance, leave‑approval, and reporting procedures. At the county level, annual performance‑evaluation guidelines for community workers are to be formulated, with assessment criteria focusing on political integrity, work achievements, and resident satisfaction. With regard to compensation and benefits, prefectural and county authorities, based on local economic development and fiscal capacity and referencing the average wage of urban employees across all sectors in the region, are to scientifically determine the salary structure and position‑grade pay scales for community workers, subject to regular, dynamic adjustments.

The State Administration for Market Regulation has approved the release of an amendment to the “Rules for Metrological Inspection of Net Content in Prepackaged Products.”
On April 10, the website of the State Administration for Market Regulation published the “Announcement on the Approval and Release of Amendment No. 1 to National Metrological Technical Specification JJF 1070—2023, ‘Metrological Inspection Rules for the Net Content of Prepackaged Products.’”
The Regulations primarily amend Paragraph 3 to read: “For the numerical portion of the net quantity marking, no more than three significant digits are recommended. For example, ‘Net Quantity: 5.55 kg’”; and revise the provision stating “The net quantity marking shall be displayed in a clear, visible, bold typeface” to read: “The net quantity marking shall be clearly visible.”

The National Intellectual Property Administration has issued the 2024 edition of the “Annual Work Guidelines for Promoting High-Quality Development of Intellectual Property.”
On April 10, the website of the National Intellectual Property Administration published the “Notice on Issuing the Annual Work Guidelines for Promoting High-Quality Development of Intellectual Property (2024).”
The “Work Guidelines” clearly outline 23 key tasks across seven areas: First, comprehensively strengthen macro-level coordination of intellectual property. Second, comprehensively enhance legal safeguards for intellectual property. This includes accelerating the next round of revisions to the Trademark Law and its Implementing Regulations, conducting research on specialized legislation for geographical indications, and carrying out feasibility studies for amending the Regulations on the Protection of Integrated Circuit Layout Designs; completing the revision of the Administrative Review Procedures of the National Intellectual Property Administration; studying and formulating policy documents related to data‑related intellectual property; and deepening pilot programs at the local level on data‑related intellectual property. Fourth, comprehensively improve the intellectual property protection system. Fifth, substantially enhance the effectiveness of public services in the field of intellectual property. Sixth, comprehensively elevate the level of international cooperation in intellectual property. Seventh, comprehensively consolidate the foundations for the development of the intellectual property sector.

Seven departments have issued an action plan to drive equipment upgrades and the trade-in of consumer goods through standard‑based improvements.
On April 10, the website of the State Administration for Market Regulation published the “Notice on Issuing the Action Plan for Promoting Equipment Upgrading and Consumer Goods Trade-In through Standards.”
The Action Plan comprises five key areas and seventeen specific measures, calling for the accelerated upgrading of energy‑consumption and emissions‑related technical standards to continuously drive equipment modernization; strengthening quality and safety standards to facilitate the trade‑in of used consumer goods for new ones; and expanding the availability of recycling and circular‑economy standards to effectively promote smooth industrial circulation.

Shanghai has approved and forwarded the “Administrative Measures for the Collection of State-owned Capital Income from Enterprises.”
On April 11, the Shanghai Municipal Government website published the “Notice on Approving and Transmitting the Revised ‘Administrative Measures for the Collection of State‑Owned Capital Returns of Enterprises in Shanghai’” jointly formulated by the Municipal Finance Bureau and the Municipal State‑owned Assets Supervision and Administration Commission.
The Measures comprise five chapters and eighteen articles, stipulating that the proportion of annual net profits remitted by wholly state‑owned enterprises shall be subject to categorized management, distinguishing among market‑competitive enterprises, financial service enterprises, functional‑guarantee enterprises, public‑interest enterprises, cultural enterprises, and small and micro enterprises. State‑controlled and equity‑participated companies shall, in accordance with the principles of market‑orientation and rule of law, establish and improve dividend‑distribution mechanisms. The investing entities shall, taking into account the overarching requirements for optimizing the layout and restructuring the state‑owned economy, as well as the industry characteristics, stage of development, financial condition, development plans of the enterprise, and the views of other shareholders, formulate recommendations on profit distribution for state‑controlled enterprises; such recommendations shall, in principle, ensure that the proposed profit‑distribution levels are no lower than those applicable to comparable wholly state‑owned enterprises and state‑owned companies. Proceeds from equity transfers, liquidation proceeds, and other revenues derived from state‑capital operations shall be remitted in full.

Seven departments have outlined 12 key tasks to promote equipment upgrades in the industrial sector.
On April 9, the website of the Ministry of Industry and Information Technology released the “Notice on Issuing the Implementation Plan for Promoting Equipment Upgrading in the Industrial Sector,” outlining 12 key tasks across four areas and specifying supporting measures in fiscal and tax policy, standardization, finance, and factor allocation.
The Implementation Plan aims to increase industrial equipment investment by more than 25% by 2027 compared with 2023, and to achieve full coverage of digital transformation among large-scale industrial enterprises in major industrial provinces, cities, and key industrial parks. It outlines four major initiatives—advanced equipment upgrading, digital transformation, promotion of green equipment, and enhancement of intrinsic safety—and calls for updating and upgrading high-end, cutting-edge equipment in sectors such as aerospace, photovoltaics, and power batteries; modernizing testing and inspection equipment in priority industries like pharmaceuticals, shipbuilding, and electronics; widely deploying smart manufacturing equipment; accelerating the construction of smart factories; and fostering the deep integration of emerging technologies—including artificial intelligence, 5G, and edge computing—into manufacturing processes. Additionally, it seeks to expedite the large-scale deployment of next-generation network infrastructures such as the industrial internet, the Internet of Things, 5G, and gigabit optical networks. The plan also proposes including eligible key projects for equipment renewal and technological upgrading in the industrial sector within the scope of central budgetary and other financial support, extending tax incentives to digital and intelligent transformation efforts, and establishing special re-lending programs for technological innovation and equipment upgrades.

The State Administration for Market Regulation has outlined the key legislative tasks for 2024.
On April 9, the website of the State Administration for Market Regulation published the list of key legislative tasks and projects for 2024.
The State Administration for Market Regulation has clarified that it will formulate or revise a series of regulations and rules, including the supporting regulations to the Company Law, the Provisional Measures for Spot Checks on Publicly Disclosed Enterprise Information, the Measures for the Administration of the List of Seriously Illegal and Dishonest Entities in Market Supervision, the Product Quality Law, the Regulations on Certification and Accreditation, the Measures for the Administration of Standard Reference Materials, the Measures for the Administration of the Adoption of International Standards, the Measures for the Supervision and Administration of Inspection and Testing Institutions, the Medical Device Administration Law, the Regulations on the Safety Supervision of Special Equipment, the Measures for the Supervision and Administration of Contract Manufacturing of Food, and the Provisions on the Supervision and Administration of Food Production and Operation Enterprises’ Fulfillment of Their Principal Responsibility for Food Safety. In addition, it will advance the revision of the Regulations Prohibiting Pyramid Schemes and continue to push for the early formulation and promulgation of laws and regulations—such as the Anti-Unfair Competition Law and the Regulations on Fair Competition Review—that have already been submitted for review.

Fitch downgrades the outlook for China’s sovereign credit rating; the Ministry of Finance deems local government bond risks generally manageable.
On April 10, Fitch Ratings released a report maintaining China’s sovereign credit rating unchanged while revising the outlook from “Stable” to “Negative.” Relevant officials from the Ministry of Finance granted interviews to reporters on related issues.
The Ministry of Finance stated that the report partially reflects China’s perspective; however, the findings indicate that Fitch’s sovereign credit rating methodology fails to adequately and proactively capture the positive effects of fiscal policy. With regard to Fitch’s concerns about rising risks—particularly in terms of fiscal deficits, local government debt, and financing‑platform liabilities—the Ministry emphasized that an appropriate level of fiscal deficit can help harness the constructive role of government borrowing and provide the necessary support for high‑quality economic and social development. In addressing and mitigating local government debt risks, the Ministry has issued a designated volume of refinancing government bonds, resulting in an overall easing of local debt pressures, effective assurance of timely principal and interest repayments on statutory local government debt, a gradual reduction in the scale of implicit debt, and a decline in the number of local financing platforms. Overall, efforts to resolve local government debt in China are progressing in an orderly manner, with risks remaining broadly under control.

In 2024, the State-owned Assets Supervision and Administration Commission plans to revise five regulations, including the Measures for the Administration of Development Planning of Central Enterprises.
On April 10, the website of the State-owned Assets Supervision and Administration Commission of the State Council released the 2024 regulatory drafting work plan.
According to the work plan, in 2024, the State-owned Assets Supervision and Administration Commission of the State Council plans to revise the Measures for the Administration of Development Planning of Central Enterprises, the Measures for the Conofficeation of Results in Preserving and Enhancing the Value of State-owned Capital in Enterprises, the Measures for the Administration of Asset Valuation of State-owned Assets in Enterprises, the Provisional Measures for Accountability for Irregular Operations and Investments by Central Enterprises, and the Measures for the Supervision and Administration of Work Safety in Central Enterprises.

The State Administration for Market Regulation has launched a special campaign to regulate advertising in areas of public concern.
Recently, the State Administration for Market Regulation issued a work plan to launch a special campaign nationwide from April to November 2024 to strengthen advertising oversight in areas of public concern.
The work plan makes clear that a stringent, zero‑tolerance approach will be maintained against illegal practices in medical‑aesthetic advertising. It calls for strict regulation of the publication of such advertisements, with vigorous crackdowns on unauthorized posting without prior review, as well as on practices that stoke appearance‑related anxiety or exaggerate the efficacy of medical‑aesthetic procedures. Authorities will rigorously investigate and penalize platforms, live‑streaming channels, and beauty‑focused livestreamers and influencers who disseminate unlawful medical‑aesthetic ads during live‑commerce activities. Advertisements touting “miracle doctors” or “miracle cures” will be subject to rigorous scrutiny, and any disguised promotion of medical, pharmaceutical, medical‑device, or health‑food products under the guise of health education will be severely punished. Oversight of food advertising will be strengthened to prevent claims that health foods possess therapeutic effects or that ordinary foods can deliver specific health benefits. False or illegal advertisements for myopia‑prevention products will be investigated and prosecuted in accordance with the law, and efforts will continue to address the confusion between true and pseudomyopia by cracking down on misleading claims—such as “recovery,” “restoration,” “reduction of degree,” “cure for myopia,” “myopia buster,” or “degree correction”—that mislead consumers. Regulation of advertisements for cosmetics, disinfectants, and other daily‑use consumer products will be tightened, with decisive action taken to curb violations that explicitly or implicitly suggest these items have medical functions.

The State Administration for Market Regulation has issued implementation guidelines to carry out the Action Plan for the Green, Low-Carbon, and High-Quality Development of Boilers.
Recently, the State Administration for Market Regulation issued the “Implementation Opinions on Carrying Out the Action Plan for the Green, Low-Carbon, and High-Quality Development of Boilers.”
The Implementation Opinions stipulate strict control over the approval of new boiler installations, support technological innovation and the upgrading and retrofitting of existing boilers, continuously enhance boiler operation and management standards, and further refine the system of standards and specifications. They also specify that work will be accelerated to develop and revise relevant national standards, including the “Technical Specification for Comprehensive Energy Efficiency Evaluation of Industrial Boilers,” the “Methods for Testing and Calculating Boiler Carbon Emissions,” and the “Technical Specification for Biomass Boilers.” In addition, the “Technical Regulations on Boiler Energy Conservation and Environmental Protection” and the “Technical Regulations on Boiler Safety” will be revised to further strengthen the integrated regulatory framework that ensures boiler safety, energy efficiency, and environmental protection.

The National Development and Reform Commission has issued the “Special Management Measures for Central Budgetary Investment in Pollution Control.”
On April 8, the website of the National Development and Reform Commission published the “Notice on Issuing the Special Management Measures for Central Budgetary Investment in Pollution Control.”
The Measures comprise six chapters and thirty-three articles, clearly stipulating that this special program will prioritize support for urban environmental infrastructure development, clean‑production upgrades in key industries, environmental governance in priority sectors, water‑pollution control, and water conservation. The key areas of support include: (1) urban environmental infrastructure development; (2) clean‑production upgrades in key industries; (3) environmental governance in priority sectors; and (4) water‑pollution control and water conservation, among others.

The National Development and Reform Commission has issued the “Special Management Measures for Central Budgetary Investment in Energy Conservation and Carbon Reduction.”
On April 8, the website of the National Development and Reform Commission published the “Notice on Issuing the Special Management Measures for Central Budgetary Investment in Energy Conservation and Carbon Reduction.”
The Measures comprise six chapters and thirty-three articles. This special program prioritizes support for energy conservation and carbon reduction in key industries and priority sectors, as well as for circular‑economy initiatives that contribute to decarbonization. Specific areas of focus include: (1) demonstration and application projects for advanced technologies related to peaking carbon emissions and achieving carbon neutrality; (2) energy‑saving and carbon‑reduction projects in key industries and priority sectors; (3) circular‑economy‑driven projects that help reduce carbon emissions; and others.

Beijing plans to issue discretionary guidelines for administrative penalties in the transportation sector, as well as a list of minor and first-time violations exempt from penalty.
On April 8, the Beijing Municipal Government website published the “Notice on Public Solicitation of Comments on the ‘Beijing Municipal Transportation Administrative Penalty Discretionary Standards’ (Draft for Comments), the ‘Beijing Municipal Transportation Administrative Penalty Discretionary Standard Table’ (Draft for Comments), and the ‘List of Minor and First-Time Violations Exempt from Penalties in the Field of Transportation’ (Draft for Comments).” The deadline for submitting feedback is May 8.
Among these, the “Beijing Municipal Standards for Discretion in Administrative Penalties for Transportation” has been revised to align with amendments to the “Regulations on Road Freight Transport and Terminal Management,” while also reviewing relevant provisions of the “Work Safety Law” and other statutes. It introduces new categories of administrative penalties and corresponding discretionary standards, and further refines and clarifies aspects such as unlawful conduct that is difficult to enforce, overly general descriptions of violations, legal bases, and the scope of discretion. The revision of the “List of Exemptions from Penalties for Minor and First-Time Violations” primarily involves consolidating two items from the original 48 exempted cases into a single entry, followed by the addition of 54 new exempted cases.

Beijing has issued the Detailed Rules for the Administration of Qualifications of Construction Project Quality Inspection Agencies.
On April 9, the Beijing Municipal Government website published the “Notice on Public Solicitation of Comments on the ‘Detailed Rules for the Administration of Qualifications of Construction Project Quality Inspection Agencies in Beijing (Draft for Comments)’,” with the deadline for submitting feedback set for April 16.
The Implementing Rules consist of eight chapters, specifying the eligibility criteria for entities applying for testing‑agency accreditation and the required experience in quality testing; setting forth the requirements for key personnel, instruments and equipment, testing capabilities, testing facilities, the testing management system, and the use of information technology in testing; and delineating the procedures for obtaining testing‑agency accreditation, the conditions for applying for comprehensive accreditation or for adding additional testing items, as well as the requirements for the testing‑agency accreditation certificate.

Shenzhen plans to revise and issue the 2024 edition of the Administrative Penalty Discretionary Standards for Emergency Management.
On April 8, the Shenzhen Emergency Management Bureau published on its website a notice soliciting public comments on the “Shenzhen Municipal Emergency Management Administrative Penalty Discretionary Standards (2024 Edition) (Draft for Comments).” The deadline for submitting feedback is May 9.
This revision of the “Benchmark” primarily covers discretionary standards in the areas of general administration and accident-related penalties. Following the update, the total number of discretionary standards stands at 190, broken down as follows: 84 for general administration, 11 for accident-related penalties, 61 for hazardous chemicals, 26 for intermediary services, 2 for civil defense work, and 6 for earthquake prevention and disaster reduction.

Six departments have jointly formulated regulatory provisions governing the infrastructure and public‑utility concession sector.
Recently, the National Development and Reform Commission and five other departments jointly issued the Measures for the Administration of Infrastructure and Public Utility Concessions, which will take effect on May 1, 2024.
The Measures comprise eight chapters and sixty-seven articles, clarifying that infrastructure and public‑utility concessions are to be implemented under the PPP model, without establishing any new administrative permits. Concessionaires shall be granted exclusive rights to invest in, construct, operate, and derive revenues from designated infrastructure and public‑utility projects for the term specified in the agreement. It is prohibited to impose additional administrative permit requirements without statutory or regulatory basis, or to levy fees on concessionaires through such unauthorized measures. For concession periods proposed to exceed 40 years, thorough justification must be provided in the concession plan and submitted together with the plan for approval. The Measures further stipulate that government payments may only subsidize operations as prescribed; they may not cover construction costs. Moreover, no fiscal funds may be used—whether through viability gap funding, guarantees of minimum returns, availability payments, or any other mechanism—to offset project construction investments or operating expenses.

The State Administration for Market Regulation plans to revise the antitrust review application form and public notice form for simplified cases of operator concentration.
On April 8, the website of the State Administration for Market Regulation published the “Announcement on Public Solicitation of Comments on the ‘Antitrust Review Application Form for Simplified Cases of Concentrations of Undertakings (Revised Edition)’ and the ‘Public Notice Form for Simplified Cases of Concentrations of Undertakings (Revised Edition),” with a deadline for submitting feedback set for April 22.
Among these, the “Review Application Form” has added two explanatory notes to its header, emphasizing that when a concentration of undertakings meets the reporting thresholds stipulated by the State Council, the undertakings must file in advance with the State Administration for Market Regulation; no such concentration may be implemented without prior filing or before obtaining approval following filing. Furthermore, if an undertaking has already carried out a concentration prior to filing, it is required to proactively report this to the State Administration for Market Regulation. In the main text, under the “Basis for Filing” section, corresponding revisions have been made in light of previous adjustments to the turnover threshold; the item “5.1.10 Historical Background on Establishment and Material Changes,” along with other filing items, has been deleted, and a new section on the letter of commitment has been added.

The Ministry of Industry and Information Technology plans to issue industry standard requirements and administrative measures for the electric bicycle sector.
On April 7, the website of the Ministry of Industry and Information Technology published the “Public Notice Soliciting Comments on the Standardized Conditions for the Electric Bicycle Industry and the Administrative Measures for Public Announcements (Draft for Comments),” with a deadline for submitting feedback set for April 12.
The “Conditions” comprise nine sections and thirty-one articles, serving as a guiding document that is neither a prerequisite nor mandatory for administrative approval. It primarily sets forth requirements regarding enterprise site planning, process equipment, product quality and management, intelligent manufacturing and green manufacturing, workplace safety, protection of workers’ rights and interests, and safeguarding consumer rights. The “Measures” consist of five chapters and seventeen articles, stipulating that the provincial-level competent authority for the electric bicycle industry is responsible for receiving, verifying, and submitting applications for the public announcement of compliance by electric bicycle enterprises within its jurisdiction, as well as for supervising and inspecting these enterprises’ implementation of the “Compliance Conditions.” Meanwhile, the Ministry of Industry and Information Technology undertakes review and on-site inspections, and manages the list of enterprises on an ongoing basis. For electric bicycle enterprises not included on the public announcement list, the application process—including submission, acceptance, review, and public announcement—shall be conducted once annually.

The Ministry of Industry and Information Technology has issued a document calling for effective implementation of quality-related work in the industrial and information technology sectors in 2024.
On April 8, the website of the Ministry of Industry and Information Technology released the “Notice on Doing a Good Job in Industrial and Information Technology Quality Work in 2024.”
The Notice outlines 20 key tasks across five priority areas: (1) Implementing the Manufacturing Excellence Quality Initiative; (2) Enhancing product quality with reliability at its core; (3) Strengthening the foundations for quality development; (4) Promoting pilot‑scale innovation in manufacturing; and (5) Building the “Made in China” brand. The Notice specifies that it will organize the release of the “100 Questions and Answers on the Manufacturing Excellence Quality Initiative” to guide enterprises in establishing advanced quality management systems; conduct quality‑management capability assessments in more than 1,000 companies; focus on key sectors such as machinery, electronics, and automobiles to expand the application of intelligent inspection equipment; and develop or revise a set of product quality standards covering raw materials, machinery, electronics, automobiles, software, and other fields, among other measures.

The Ministry of Industry and Information Technology plans to approve four projects for the development and revision of mandatory national standards.
On April 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 “Limits of Harmful Substances in Coatings — Part 1: Architectural Coatings.” The deadline for submitting feedback is April 14.
The mandatory national standard development and revision projects announced in this batch include “Limit on Hazardous Substances in Coatings — Part 1: Architectural Coatings,” “Limit on Hazardous Substances in Coatings — Part 2: Industrial Coatings,” “Energy Consumption Limits for Electric Vehicles — Part 1: Passenger Cars,” and “Structural Safety Requirements for Buses.”

Taxation
The State Taxation Administration convened a meeting to promote large-scale equipment upgrades and…
Symposium on the Consumer Goods Trade-In Program with Industry Associations and Enterprises
On April 9, Hu Jinglin, Secretary of the Party Committee and Director of the State Taxation Administration, chaired a symposium with relevant industry associations and enterprises to advance large-scale equipment upgrades and the trade-in of used consumer goods for new ones. The meeting aimed to further implement the spirit of General Secretary Xi Jinping’s important speeches at the Central Economic Work Conference and the Fourth Meeting of the Central Financial and Economic Affairs Commission, in accordance with the deployment and requirements of the CPC Central Committee and the State Council. Focusing on how the tax authorities can better support these initiatives, the symposium brought together leaders from relevant industry associations and enterprises to exchange views, gain an in-depth understanding of developments in the resource recycling and utilization sector, and carefully listen to opinions and suggestions from all stakeholders. Participants also engaged in discussions on how to further leverage the functions and roles of the tax authorities to more effectively promote large-scale equipment upgrades and the trade-in of used consumer goods for new ones.
At the symposium, leaders from the China Resource Recycling Association, the China Renewable Resources Recycling and Utilization Association, and six resource‑recycling enterprises each put forward suggestions and recommendations on advancing tax policies for equipment upgrades and trade‑in programs for consumer goods, as well as on tax‑related services and measures to ensure effective administration. After carefully listening to the participants’ remarks, Hu Jinglin emphasized that promoting large‑scale equipment upgrades and consumer‑goods trade‑ins is a major decision and deployment made by the CPC Central Committee with a view to high‑quality development; it represents a significant benefit that supports businesses, improves people’s livelihoods, serves the national interest, and yields long‑term dividends. The State Taxation Administration and tax authorities at all levels will further deepen their study and implementation of the spirit of General Secretary Xi Jinping’s series of important instructions, earnestly carry out the relevant directives of the CPC Central Committee and the State Council, and, in light of the tax authorities’ functions and responsibilities, work to ensure smoother policy implementation, more convenient tax‑and‑fee services, and a more standardized industry order, thereby bolstering efforts, enhancing efficiency, and creating a better business environment for the steady advancement of large‑scale equipment upgrades and consumer‑goods trade‑ins.
Hu Jinglin emphasized that the CPC Central Committee and the State Council attach great importance to the development of the resource recycling industry. In recent years, they have introduced and implemented a series of tax and fee‑support policies, which have effectively boosted the growth and expansion of enterprises in this sector. This year, policy support has been further strengthened, with specific tax measures explicitly requiring resource‑recycling companies to adopt “reverse invoicing” for sales to individuals who scrap their used products. The tax authorities have moved swiftly to ensure effective implementation, actively working to refine relevant business regulations, upgrade information systems, and carry out related reforms. By the end of April, reverse invoicing by resource‑recycling enterprises will be fully operational, thereby further smoothing the VAT credit chain, providing these enterprises with legitimate, compliant pre‑tax deduction vouchers for corporate income tax, and enabling individuals who regularly sell scrapped goods to benefit from existing VAT exemption or reduction policies under current tax laws. Building on this foundation, the tax authorities will also leverage tax‑related big data to precisely identify taxpayers eligible for preferential policies, intensify outreach and guidance, and ensure that taxpayers fully understand the policies and know how to apply them. By ensuring the smooth operation of tax policies, continuously optimizing service measures, and maintaining nationwide uniformity in enforcement standards, a favorable tax environment will be created to accelerate the development of the entire resource‑recycling value chain, helping to significantly enhance the quality and efficiency of the national economic circulation. At the same time, regarding illegal activities such as fraudulent tax evasion through the misuse of reverse invoicing and the creation of “policy loopholes” due to unlawful local investment promotion, the authorities will further strengthen the regular joint mechanism involving eight departments—including taxation and public security—to crack down on tax‑related crimes and violations, maintaining a high‑pressure deterrent against any emerging misconduct. For taxpayers engaged in the recycling of renewable resources who receive fiscal rebates or subsidies in violation of laws and regulations, the tax authorities will work closely with relevant agencies to impose stricter legal penalties and hold responsible parties accountable, thereby safeguarding a fair and law‑based market competition environment, fostering a virtuous cycle in which “good money drives out bad,” and resolutely advancing the construction of a unified national market, thus making an even greater contribution to accelerating the establishment of a new development paradigm and promoting high‑quality development.
Leaders of participating industry enterprises unanimously stated that the CPC Central Committee’s major decision to promote large-scale equipment upgrades and a trade-in program for consumer goods is a timely boost that will undoubtedly open up vast market opportunities. They emphasized the importance of seizing the window of opportunity for industry development, making full use of favorable policies, and striving to achieve faster, better, and higher‑quality growth.
State Taxation Administration leaders Wang Daoshu, Rao Lixin, Cai Zili, and Luo Tianshu attended the symposium and engaged in discussions with representatives from industry associations and business leaders. Officials from relevant departments and bureaus of the State Taxation Administration also took part in the event.

State Taxation Administration: Maintains stringent oversight of illegal activities in which unscrupulous actors use “reverse invoicing” to issue false invoices and defraud taxes.
At a symposium held on April 9 to promote large-scale equipment upgrades and the trade-in of used consumer goods for new ones, Director-General Hu Jinglin of the State Taxation Administration stated that the regularized joint working mechanism among eight departments to combat tax-related illegal and criminal activities will be further strengthened.
Hu Jinglin emphasized that, at the same time, with regard to illegal activities such as fraudulent invoicing and tax evasion perpetrated by unscrupulous actors who exploit “reverse invoicing” and “policy loopholes” created by unlawful local investment‑attraction practices, the established joint mechanism involving eight departments—including taxation and public security—will be further leveraged to maintain a high‑pressure deterrent, ensuring that any such violations are swiftly and decisively addressed. Moreover, in cases where taxpayers engaged in the recycling of renewable resources have been granted fiscal rebates or incentive subsidies in violation of laws and regulations, the relevant authorities will work closely with pertinent agencies to impose stricter legal penalties and hold responsible parties accountable, thereby safeguarding a fair and law‑based competitive market environment.

Three departments have issued the List of Imported and Exported Goods Not Eligible for Duty-Free Treatment in Border Resident Barter Trade.
On April 9, the Ministry of Finance published on its website the “Notice on the List of Import and Export Goods Not Eligible for Duty Exemption in Border Resident Barter Trade.” The notice takes effect as of April 8, 2024, and simultaneously repeals Cai Guan Shui [2010] No. 18.
The Notice clarifies that, except for the goods listed in the Negative List of Imported Goods under Border Trade, all border residents may import goods through border trade. The list of imported goods exempt from customs duties under border trade comprises 21 items, including tobacco, alcohol, and certain agricultural products such as wheat exceeding the prescribed quantity. The duty‑free import quota is calculated and applied on an individual basis. Meanwhile, the list of exported goods not eligible for duty exemption under border trade includes items prohibited from export by the state, goods subject to export tariffs, and products for which export tax rebates have been revoked.

State Taxation Administration: In 2024, it will formulate the “Administrative Measures for the Annual Settlement and Final Tax Payment of Comprehensive Income under the Individual Income Tax.”
The Policy and Regulations Department of the State Taxation Administration has released the “2024 Regulatory Drafting Plan for the Tax Authorities,” which comprises a total of four regulations.
The Plan comprises one Category I legislative item and three Category II legislative items, including the formulation of the Measures for the Administration of Tax‑Related Professional Services (Trial); the amendment of the Rules on Tax Administrative Review; the amendment of the Measures for the Public Announcement of Tax Arrears (Trial); and the formulation of the Measures for the Administration of the Final Settlement and Clearance of Comprehensive Income under the Individual Income Tax.

LITIGATION & ARBITRATION
The Supreme People’s Court has released the fourth batch of selected Q&A entries from the Legal Answers Network.
On April 11, the Supreme People’s Court released the fourth batch of selected Q&A entries from its Legal Answers Website. This batch comprises five questions, addressing issues such as the determination of the number of instances of concealing or disguising criminal proceeds and proceeds derived therefrom; the relationship between derivative heirs and maintenance obligations; the validity of loan contracts when the actual borrower is suspected of loan fraud; and the interplay between creditors’ right of subrogation and arbitration agreements.
In Question 4, the Supreme People’s Court clarified that where an arbitration agreement exists between the debtor and the counterparty, or between the creditor and the debtor, such an agreement does not preclude the creditor from bringing a subrogation action; however, it may affect the conduct of that action. The Supreme People’s Court stated that, under the Civil Code, the right of subrogation may be exercised only by filing a lawsuit with the people’s court. If subrogation proceedings were subject to an arbitration agreement, the debtor could, to the detriment of the creditor’s interests, maliciously enter into an arbitration agreement with the counterparty in advance to prevent the creditor from exercising its right of subrogation, thereby effectively undermining the subrogation regime. Moreover, the right of subrogation is a statutory right and cannot be excluded through contractual arrangements.

Supreme People’s Court: Will expedite the formulation of judicial interpretations on punitive damages in food and drug cases, in alignment with the Implementing Regulations of the Consumer Protection Law.
On April 9, the State Council Information Office held a regular policy briefing to introduce relevant details of the Regulations on the Implementation of the Consumer Rights Protection Law.
The Regulations have comprehensively strengthened protections for consumers’ rights to safety, information, autonomous choice, fair trading, peace and quiet, and personal information. They also introduce specific provisions addressing emerging issues and new areas, such as prepaid consumption, livestream shopping, services for the elderly and children, “unfair standard terms,” fabricated order‑boosting and fake‑review practices, big‑data price discrimination against repeat customers, automatic renewals, and mandatory bundling. Furthermore, the mechanisms for pre‑emptive mediation of consumer disputes, administrative mediation, and diversified dispute resolution have been refined. At the meeting, a spokesperson from the Supreme People’s Court stated that the Court will expedite the drafting of the “Interpretation on Several Issues Concerning the Application of Law in Adjudicating Cases Involving Punitive Damages for Food and Drug Safety Violations,” and plans to further clarify adjudicatory rules on matters such as the liable parties in prepaid‑consumption cases, the validity of contracts, contract termination, refund with interest, and consumer fraud.

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