JC Master Legal News Issue 1106

Key Takeaways for This Issue

The National Administration of Financial Regulation has issued the “Measures for the Exercise of Discretionary Power in Administrative Penalties.”
The website of the National Administration of Financial Regulation has published the “Measures for the Exercise of Administrative Penalty Discretion,” which will take effect on May 1, 2024.
The Shanghai and Shenzhen stock exchanges have issued ABS business rules and supporting guidelines.
The Shanghai Stock Exchange and the Shenzhen Stock Exchange have issued the “Rules on Asset-Backed Securities Business” and accompanying business guidelines; all six documents shall take effect from the date of their publication.
The State Council: Establishing a “Single Gateway” for Sharing Credit Information with Financial Institutions to Facilitate Financing for Small, Medium, and Micro Enterprises.
On April 2, the Chinese Government Website published the “Notice on Issuing the Implementation Plan for Coordinating the Construction of Financing Credit Service Platforms to Enhance Financing Accessibility for Small and Micro Enterprises.”
The Supreme People’s Court has released typical cases of punishing crimes endangering public safety in accordance with the law.
On April 2, the Supreme People’s Court released five typical cases of crimes endangering public safety that were punished in accordance with the law, further clarifying adjudication standards and enhancing the effectiveness of case trials.
Finance & Capital Markets
“The New Vision for Investing in China—A-Share Listed Company Promotion Event” was successfully held in New York, USA.
Recently, the “New Perspectives on Investing in China – A-Share Listed Company Promotion Event” was successfully held in New York. Co-hosted by the Shanghai Stock Exchange and the Shenzhen Stock Exchange, the event brought together senior executives from 11 high-quality A-share companies spanning the consumer, healthcare, finance, manufacturing, and technology sectors. They presented their companies’ achievements to U.S. investment institutions, actively highlighting their investment appeal. The event garnered a strong response from U.S. investors, with nearly 100 participants from over 50 U.S. financial institutions registering to attend.

This event focused on listed companies as its key target for promotion. The Shanghai and Shenzhen Stock Exchanges brought together representatives from listed offices to engage in discussions around two overarching themes: “Investing in High-Quality Companies and Seizing Opportunities for China’s Future Development” and “Fostering Innovative Growth and Enhancing Quality‑Driven Returns,” sharing their perspectives on industry trends, internationalization, and the enhancement of corporate value. Following the sessions, company representatives held one‑on‑one meetings with U.S. investors, presenting their strategic roadmaps and corporate governance frameworks, and addressing investors’ key concerns.

This event marks the first-ever promotional activity hosted by the Shanghai Stock Exchange in the United States since 2020, and also the first joint U.S.-based roadshow for listed companies co-organized by the Shanghai and Shenzhen stock exchanges. It aims to fully showcase the dynamism and robust momentum of China’s economic development, while underscoring the Chinese capital market’s unwavering commitment to further deepening its opening-up. Moving forward, under the guidance of the China Securities Regulatory Commission, the Shanghai Stock Exchange will continue to strengthen communication and engagement with international investors, actively promote the SSE market and high-quality Shanghai‑listed companies, bolster foreign investors’ confidence, attract more long-term overseas capital, and advance the high‑quality opening-up of the capital market.

The National Administration of Financial Regulation has issued the “Measures for the Exercise of Discretionary Power in Administrative Penalties.”
On March 29, the website of the National Administration of Financial Regulation published the “Measures for the Exercise of Administrative Penalty Discretion,” which will take effect on May 1, 2024.
The Measures consist of four chapters and thirty-two articles, primarily elaborating on the gradations of discretionary penalties and their applicable circumstances, clarifying the fundamental meanings of mitigated, lenient, moderate, and aggravated penalties, further specifying the conditions under which no penalty, mitigated penalty, lenient penalty, or aggravated penalty shall be imposed, and delineating the factors to be considered in determining individual liability. The Measures also standardize the criteria for applying fines and confiscation of illegal gains, setting forth specific ranges for lenient, moderate, and aggravated fines in the banking and insurance sectors, as well as guidelines for identifying and calculating illegal gains. Moreover, when calculating illegal gains, if a party submits relevant receipts, accounting records, or other documents that can substantiate directly related taxes and other lawful, necessary expenses, such amounts may be deducted. The Measures further provide that, where the application of these Measures in a given locality results in manifest impropriety or substantial unfairness, or where the objective circumstances underlying the application of the discretionary penalty standards have changed, adjustments to their application may be made.

The Shanghai and Shenzhen stock exchanges have issued ABS business rules and supporting guidelines.
On March 29, the Shanghai Stock Exchange and the Shenzhen Stock Exchange issued the “Rules for Asset-Backed Securities Business” and accompanying business guidelines; all six documents took effect upon their publication.

Specifically, the Shenzhen Stock Exchange’s Rules on Asset-Backed Securities (ABS) set forth: first, clear requirements for the listing of ABS, including listing criteria, review procedures, and basic standards for underlying assets and key market participants; second, a well-defined ongoing management framework for ABS, comprehensively regulating issuance and listing processes as well as information disclosure; third, strengthened risk prevention and control measures, with a dedicated chapter on the protection of investors’ rights; and fourth, clearly defined self-regulatory enforcement measures.

The four accompanying guidelines include: “Guideline No. 1 on Ongoing Supervision of Asset-Backed Securities—Periodic Reports,” “Guideline No. 2 on Ongoing Supervision of Asset-Backed Securities—Ad Hoc Reports,” “Guideline No. 3 on Ongoing Supervision of Asset-Backed Securities—Credit Risk Management,” and “Shanghai Stock Exchange Bond Self-Regulatory Rules Application Guideline No. 5—Ongoing Information Disclosure for Asset-Backed Securities.”

Beijing plans to revise the “Opinions on Promoting the Development of the Private Equity Fund Industry.”
On March 31, the Beijing Municipal Government website published the “Notice on Public Solicitation of Comments on the Draft ‘Notice on Revising Certain Provisions of the Opinions on Promoting the Development of the Private Equity Fund Industry’ Issued by the Office of the Financial Committee of the CPC Beijing Municipal Committee, the Beijing Municipal Bureau of Finance, the Beijing Tax Service of the State Taxation Administration, and the Beijing Municipal Administration for Market Regulation,” with a deadline for submitting feedback set for April 8.

The Notice proposes to amend Article 4 of the “Opinions on Promoting the Development of the Private Equity Fund Industry,” which currently states: “Income derived by individual partners in partnership‑type equity funds shall be subject to individual income tax under the ‘interest, dividends, and bonus income’ or ‘property transfer income’ categories, at a tax rate of 20%,” to read as follows: “Interest, dividends, or bonuses distributed to partnership‑type private equity funds from their external investments shall not be included in the enterprise’s income; instead, such amounts shall be treated separately as interest, dividends, and bonus income earned by the individual investor and taxed accordingly under the ‘interest, dividends, and bonus income’ taxable category, subject to a proportional tax rate of 20%.”

The State Council: Establishing a “Single Gateway” for Sharing Credit Information with Financial Institutions to Facilitate Financing for Small, Medium, and Micro Enterprises.
On April 2, the Chinese Government Website published the “Notice on Issuing the Implementation Plan for Coordinating the Construction of Financing Credit Service Platforms to Enhance Financing Accessibility for Small and Micro Enterprises.”
The Implementation Plan comprises five sections and twelve provisions, and is accompanied by an annex—the “List of Credit Information Collection and Sharing,” which outlines the content and methods for collecting and sharing 17 types of credit information. The Plan proposes establishing a national financing credit service platform based on the credit information platform, linking local financing credit service platforms to form a nationwide integrated platform network that will serve as the “single point of access” for providing public credit information services to financial institutions, with platform integration to be completed by the end of December 2024.
The Implementation Plan also specifies that information on key enterprise personnel, various qualification credentials, and import‑export data will be included in the list of credit information to be collected and shared; it will launch pilot programs for specialized “Xinyidai” products tailored to local conditions; and it will encourage local authorities to establish and refine a “policies find people” mechanism, ensuring that financial policies designed to facilitate business operations and benefit enterprises are delivered directly to small, medium, and micro‑enterprises and other market entities through relevant platforms.

Commercial & Corporate
The National Data Administration has put forward 18 recommendations to advance the comprehensive digital transformation of cities.
On April 2, the website of the National Data Administration published an announcement soliciting public comments on the “Guiding Opinions on Deepening Smart City Development and Promoting Comprehensive Digital Transformation of Cities,” with a deadline for feedback set for April 8.
The “Guiding Opinions” comprise five key areas and 18 specific measures, emphasizing the digitalization and intelligentization of urban management and services, and encouraging the use of artificial intelligence to empower digital governance. They call for fostering and expanding the urban digital economy, deepening the integration of digital technologies with the primary, secondary, and tertiary sectors, and urging platform enterprises to build multi-tiered industrial Internet service platforms. The document also seeks to accelerate the large-scale deployment of the industrial Internet, promote the digital transformation of productivity‑related service industries such as finance and logistics, and of lifestyle‑oriented sectors including commerce, culture and tourism, and health and wellness. Furthermore, it aims to cultivate and strengthen the data industry. In addition, it outlines plans to develop and improve digital infrastructure, integrate new‑energy vehicles into the next‑generation power system, and expedite institutional reforms in areas such as data property rights, circulation and trading, revenue distribution, and security governance, thereby optimizing the entire ecosystem for urban digital transformation.

Eight departments have issued the first set of regulations on fair competition review in the field of tendering and procurement.
On April 3, the National Development and Reform Commission’s website published the “Rules on Fair Competition Review in the Field of Tendering and Bidding,” which will take effect on May 1, 2024.
The Regulations represent the first departmental rules on sector‑specific and industry‑wide fair competition reviews, setting forth more than 40 review standards across seven key areas. They primarily refine and operationalize the review criteria, mechanisms, and oversight for fair competition in the field of tendering and bidding, clarifying that policy‑making authorities may not impose unreasonable conditions that restrict bidders’ autonomy; require business entities to establish branch offices in a given region, pay taxes and social security contributions there, or form consortia with local entities; mandate that businesses obtain regional performance records or awards; stipulate, through differential scoring or other means in relevant documents, provisions that exclude or restrict competition; limit bidders’ authority to select winning proposals by designating specific methods, entities, or personnel for award decisions; apply disparate credit‑rating standards to business entities based on their geographic location or ownership structure; or adopt differentiated credit‑supervision measures according to an entity’s place of registration or type of ownership, among other prohibitions.

The State Administration for Market Regulation plans to issue the “Detailed Rules for the Examination of Food Additive Production Licenses.”
On April 3, the website of the State Administration for Market Regulation published the “Notice on Public Solicitation of Comments on the ‘Detailed Rules for the Examination of Food Additive Production Licenses (Draft for Comments)’,” with a deadline for submitting feedback set for May 3.
The “Detailed Rules for Examination” comprise ten chapters and 56 articles, setting forth the basic requirements that production facilities—including factory premises, workshops, production areas, and warehouses—must meet, as well as the criteria for delineating operational zones. It also specifies the staffing and management requirements for food safety managers and specialized technical personnel; establishes and mandates the implementation of systems for raw material procurement and incoming inspection, production process control, cleaning and disinfection, testing and outgoing inspection record‑keeping, product transportation and delivery, food safety traceability, self‑inspection of food safety, management of nonconforming products and recall of unsafe food additive products, labeling and instruction manual management, and other relevant procedures.

Two departments have issued the 2024 Action Plan for Enhancing the Quality and Expanding the Scale of the Household Services Industry.
On April 3, the National Development and Reform Commission’s website published the “Notice on Issuing the 2024 Key Work Points for Promoting Quality Improvement and Capacity Expansion in the Household Services Industry.”
The “Key Work Plan” sets out that in 2024, the focus will be on enhancing the quality of domestic services, with priority given to advancing “Ten Initiatives”: First, building the “Jin Guo Jia Zheng” service brand. Second, developing the “Gong Yi Jia Zheng” service brand. Third, leveraging the exemplary role of leading domestic service providers. Fourth, launching a special campaign to promote industry–education integration in the domestic services sector. Fifth, implementing measures to elevate the professionalization of domestic service workers. Sixth, continuing to advance a special initiative to standardize elderly care and domestic services. Seventh, deepening the construction of a domestic services credit system. Eighth, improving the quality of labor‑market matching in the domestic services sector. Ninth, furthering the “Domestic Services Boost Rural Development” initiative. Tenth, disseminating best practices for bringing domestic services into communities.

The CPC Inspection Team of the SASAC Party Committee has deployed to six centrally administered enterprises under SASAC’s supervision to carry out the first round of inspections for 2024.
From March 28 to 29, six inspection teams under the Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council were dispatched to conduct routine inspections of the Party committees of six centrally administered enterprises: China National Gold Group Corporation, China National Coal Group Corporation, China National Building Material Group Corporation, China Energy Conservation and Environmental Protection Group Corporation, China National Pharmaceutical Group Corporation, and China National Investment Holding Co., Ltd. The inspection teams will accept public complaints and petitions until May 29, 2024.
The heads of each inspection team were instructed to conduct an in-depth assessment of how the Party committees of the inspected enterprises have implemented the Party’s guidelines, policies, and the major decisions and deployments of the CPC Central Committee; how they have carried out the strategic plan for exercising full and rigorous Party self‑discipline; how they have upheld the Party’s organizational line for the new era; and how they have addressed issues identified during inspections and leveraged inspection outcomes. The focus should be on identifying and resolving existing political deviations and prominent problems, thereby providing robust political safeguards for strengthening, improving, and expanding state‑owned capital and state‑owned enterprises.

The National Medical Products Administration has announced four typical cases involving cosmetics.
On April 2, the National Medical Products Administration’s website released information on four typical cases involving cosmetics.
In Case One, the Changzhou Inspection Branch of the Jiangsu Provincial Drug Administration received public reports alleging quality issues with cosmetics purchased on the Douyin platform and suspecting them to be counterfeit. The Changzhou Inspection Branch promptly launched an investigation, and, under the leadership of the Jiangsu Provincial Drug Administration, established a joint task force together with the Food, Drug, and Environmental Crime Investigation Detachment of the Changzhou Municipal Public Security Bureau and the Jiangsu Provincial Institute for Food and Drug Supervision and Testing. The task force remained committed to tracing the source of the problem and advancing the case investigation. In September, the task force carried out a coordinated operation, arresting 14 suspects and dismantling five clandestine facilities used for manufacturing and storing counterfeit cosmetics. In November 2023, the People’s Court of Zhonglou District, Changzhou, convicted the principal offender, Qian Moumou, and the accomplice, Duan Mou, of counterfeiting a registered trademark, sentencing them to three years and six months and one year and six months in prison, respectively, and imposing substantial fines. The remaining suspects are currently undergoing public prosecution proceedings.

Two departments have launched a pilot program in cities to promote new‑type technological upgrades in the manufacturing sector.
Recently, the Ministry of Finance’s website published the “Notice on Launching Pilot Projects for New‑Type Technological Upgrading in Manufacturing Cities.”
The Notice clarifies that cities are encouraged to organize demonstration projects through an integrated “point–line–area” approach: at the “point” level, demonstrations of digital and intelligent transformation; along the “line,” demonstrations of digital and collaborative upgrades across industrial and supply chains; and at the “area” level, demonstrations of digital and green transformation for industrial clusters and science‑and‑technology industrial parks. This will accelerate the promotion and application of digital‑intelligence technologies, green technologies, and innovative products. The central government will provide fixed‑amount awards to selected cities, with funding allocated at no more than RMB 300 million per city. During the first year of the pilot program, 50% of the award and subsidy funds will be disbursed; the remaining 50% will be released upon successful completion of the evaluation at the end of the implementation period. Selected cities may use these funds to support enterprise technology‑upgrade projects, with the specific support mechanisms—such as investment subsidies, interest rate subsidies on loans, and guarantees fee subsidies—determined locally. For any single project, the maximum support shall not exceed 20% of the total investment.

The market supervision administrations of the four municipalities directly under the central government have jointly issued the “General Requirements for Product Quality Reliability Assessment.”
On April 1, the Shanghai Administration for Market Regulation published on its website the “Notice on Issuing the General Requirements for Product Quality Reliability Assessment and the Work Guide for Cultivating and Incubating Innovative ‘Best Practices’ in Product Quality Reliability.”
Among them, the Guidelines explicitly state that when selecting entities for cultivation and incubation, the following factors should be given primary consideration:
(1) Production enterprises operating within the administrative jurisdiction that are engaged in key industries such as new energy vehicles, electronic information, and high-end equipment may, where appropriate, also take into account other industries.
(2) Complies with national and local industrial policies as well as relevant laws, regulations, and policy requirements, and maintains a sound record of social creditworthiness;
(3) The product quality is stable, the management system is sound, and there is a willingness to conduct product quality reliability assessments.

The Beijing Municipal Bureau of Commerce has issued a document outlining four financial support policies to foster and boost the development of online consumption.
Recently, the Beijing Municipal Government website published the “Notice on Fostering and Promoting the Development of Online Consumption.”
The Notice clearly sets out the following four categories of support policies:
(1) For internet platform enterprises, a reward of up to RMB 500,000 will be granted per enterprise, based on the following criterion: for each enterprise nurtured that achieves annual transaction volume of no less than RMB 20 million and maintains a growth rate of no less than 50%, the support shall not exceed RMB 50,000. The maximum reward for a single platform enterprise shall not exceed RMB 5 million.
(2) For enterprises that expand their online direct-sales channels through self-built platforms or by joining third-party platforms, a reward of up to RMB 500,000 will be granted, based on the following criterion: for each new platform where the annual transaction volume reaches at least RMB 5 million, a subsidy of no more than RMB 50,000 will be provided.
(3) Enterprises whose annual livestream e-commerce or instant retail sales reach at least RMB 20 million and post year-on-year growth of no less than 30% (with the prior-year period also exceeding zero) will receive a one-time reward of up to RMB 100,000.
(4) E‑commerce service enterprises that facilitate cumulative transaction volumes of no less than RMB 20 million across 10 or more enterprises shall be awarded a subsidy of up to 1% of such cumulative transaction volume. The maximum award for any single enterprise under this measure shall not exceed RMB 2 million.

The Beijing Municipal Bureau of Commerce has introduced financial support policies for the catering industry.
Recently, the Beijing Municipal Government website released the “Notice on Policies Supporting the High-Quality Development of Beijing’s Catering Industry.”
The Notice clarifies that it will support the development of distinctive culinary‑focused commercial districts, providing a one-time reward of RMB 1 million to eligible district operators. It also supports the integrated development of catering with culture, tourism, and sports, offering a one-time reward of RMB 100,000 to qualifying restaurants. For the same enterprise with multiple eligible restaurants, the maximum total reward shall not exceed RMB 1 million. Furthermore, the Notice promotes restaurant renovation and quality upgrades by granting one-time rewards of RMB 50,000, RMB 100,000, RMB 200,000, and RMB 300,000, respectively, based on approved actual investment amounts falling within the following brackets: RMB 500,000–1 million, RMB 1 million–3 million, RMB 3 million–5 million, and over RMB 5 million. For the same enterprise with multiple eligible restaurants, the maximum total reward is capped at RMB 1 million.

The Cyberspace Administration of China has released information on registered generative AI services.
On April 2, China Internet Information Office published the “Announcement on the Release of Filing Information for Generative Artificial Intelligence Services.”
A total of 117 registered generative AI models have been announced this time. The Notice clarifies that providers of generative AI services with public opinion‑shaping or social mobilization capabilities may complete the registration procedure through their local cyberspace administration authorities, which are required to promptly make the registered information publicly available. Existing generative AI applications or features must conspicuously disclose, either in a prominent location or on the product’s detail page, the specific registered generative AI services they utilize, including the model name and registration number. Registration details will be continuously updated on the Cyberspace Administration of China’s official website; no further separate announcements will be issued going forward.

The State Administration for Market Regulation convened a national symposium on advertising regulation.
On April 2–3, the National Symposium on Advertising Regulation was held in Shijiazhuang, Hebei Province.
The meeting emphasized that, in carrying out advertising regulation in 2024, it is essential to give equal weight to regulatory oversight and the promotion of development, officely uphold the correct direction of advertising supervision, launch targeted enforcement campaigns, strengthen compliance oversight of advertisements on internet platforms, foster high-quality growth of the advertising industry, reinforce the institutional framework for advertising regulation, and make concerted efforts to enhance regulatory capacity and standards, thereby elevating both advertising oversight and industry development to a new level.

The Ministry of Ecology and Environment plans to impose strict controls on chemical production and construction projects involving hydrofluorocarbons.
On April 2, the website of the Ministry of Ecology and Environment published the “Notice on Public Solicitation of Comments on the Draft ‘Notice on Strictly Controlling Hydrofluorocarbon Chemical Production Projects,’” with a deadline for submitting feedback set for April 12.
The Notice stipulates that, effective from the date of its issuance, no entity shall construct new or expand existing production facilities for any of the 13 controlled‑use HFCs. It further clarifies that, for already‑operational production facilities producing controlled‑use HFCs—including all 18 substances—no increase in original capacity or addition of new controlled‑use HFC varieties shall be permitted when undertaking renovations or relocating to a different site. This ensures that enterprises’ implementation of production‑line technological upgrades or relocations will not undermine the achievement of their compliance targets. Additionally, it specifies that HFCs generated during trial production at production facilities for controlled‑use HFCs—including all 18 substances—must also be subject to quota management.

Four departments have launched a special rectification campaign to severely crack down on illegal and criminal activities involving meat products.
On April 1, the website of the State Administration for Market Regulation published the “Notice on Launching a Special Campaign to Severely Crack Down on Illegal and Criminal Activities Involving Meat Products.”
The Notice requires focusing on live pigs, beef cattle, meat sheep, broiler chickens, and their meat products, thoroughly investigating leads related to illegal and criminal activities in the meat‑product sector. It calls for a special rectification campaign covering the entire production and marketing chain—ranging from livestock and poultry breeding, slaughter, and harmless treatment to the production and sale of meat and meat products. The notice emphasizes closely monitoring key regions and venues, conducting inspections and undercover investigations, establishing a list of problem leads, strengthening oversight and inspection at the breeding stage, and rigorously cracking down on violations such as the use of banned substances like “lean meat powder,” as well as the sale or indiscriminate disposal of diseased or dead livestock and poultry. It also calls for enhanced supervision and enforcement in the slaughter and harmless‑treatment stages, with strict penalties for unauthorized slaughtering, water injection, drug injection or the introduction of other substances, the substitution of diseased or dead animals, and the use or sale of livestock and poultry products of unknown origin, lacking required inspection and quarantine, or failing inspection and quarantine, as well as the manufacture of counterfeit beef (mutton, donkey meat) products and other illegal activities.

In January–February 2024, the total profits of state-owned enterprises nationwide increased by 0.3% year on year.
On March 29, the Ministry of Finance website released data on the economic performance of state-owned and state-controlled enterprises nationwide for January–February 2024.
Data show that in January–February, state-owned and state-controlled enterprises nationwide maintained growth in both revenue and profits. Specifically, total operating revenue reached RMB 12,486.76 billion, up 1.9% year on year; total profits amounted to RMB 628.53 billion, up 0.3%; taxes and fees payable totaled RMB 1,104.72 billion, up 1.7%; and the asset‑liability ratio stood at 64.9%, an increase of 0.3 percentage points.

Two departments have issued the “Measures for Implementing the Division of Distribution Areas in Incremental Distribution Business.”
On April 2, the website of the National Development and Reform Commission published the “Notice on Issuing the Implementation Measures for the Division of Distribution Areas in Incremental Distribution Business.”
The Measures consist of five chapters and twenty-four articles, stipulating that within a given distribution network area, only one enterprise may hold the operating rights to that distribution network and, in accordance with relevant regulations, shall fulfill obligations to provide universal electricity services, guaranteed minimum‑level power supply, and non‑discriminatory distribution services. It is also clarified that no incremental distribution networks may be developed by relying on coal‑fired captive power plants, so as to prevent the creation of cost advantages at the expense of fulfilling social responsibilities. Enterprises holding distribution network operating rights are entitled, in accordance with the law, to invest in, construct, and operate the distribution network within their designated service area. Meanwhile, entities that own the assets of existing distribution networks may acquire equity stakes in enterprises holding operating rights for the same area—through methods such as asset contributions—to jointly operate the regional distribution network.

Three departments have launched the “Thousand Towns and Ten Thousand Villages Wind Power Initiative” to advance the green and low-carbon transformation of the energy sector.
On April 1, the National Development and Reform Commission’s website published the “Notice on Organizing and Implementing the ‘Thousand Towns and Ten Thousand Villages Wind Power Initiative.’”
The Notice outlines a plan to, during the 14th Five-Year Plan period, develop a number of wind power projects in eligible rural counties, implemented at the village level and leveraging local resources for on-site and nearby utilization. In principle, each administrative village will host no more than 20 megawatts. The initiative seeks to pioneer a new model of wind power investment and construction based on “village–enterprise cooperation” and a novel mechanism for sharing benefits through “joint development and shared gains,” thereby fostering a new paradigm of wind energy development that ensures “wind power in every village, increased collective income, and tangible benefits for villagers.” The Notice further clarifies that for projects that do not encroach upon sensitive areas—such as those involving soil and water conservation, environmental protection, vegetation restoration, or overlying mineral resources—relevant authorities may expedite the necessary procedures in accordance with the law, provided that the investor, in coordination with the village collective, submits a commitment and the competent departments issue supporting opinions. Under the “Thousand Towns and Ten Thousand Villages Harnessing Wind” initiative, grid‑connected wind power projects will be guaranteed grid access by power‑grid enterprises, prioritizing local consumption; the feed-in tariff will be applied in line with the renewable energy feed-in tariff policy in effect in the year of connection.

The Ministry of Ecology and Environment has issued a document to promote the implementation of the Interim Regulations on the Administration of Carbon Emission Trading.
On March 29, the website of the Ministry of Ecology and Environment published the “Notice on Studying, Publicizing, and Implementing the Interim Regulations on the Administration of Carbon Emission Trading.”
The Notice clarifies that the Regulations provide explicit provisions on a wide range of issues, including the institutional framework for carbon‑emission‑rights trading, its scope of application, management procedures, data‑quality assurance, and penalties for violations. Under the framework of these Regulations, the Ministry of Ecology and Environment will, as appropriate, formulate or revise relevant supporting policy documents and technical guidelines; it will also revise the Measures for the Administration of Carbon‑Emission‑Rights Trading (Trial) and other ancillary systems, such as rules governing the registration, trading, and settlement of carbon‑emission rights. These measures will further strengthen the oversight and regulatory regime, rigorously prevent, investigate, and sanction unlawful conduct, and stipulate that no localities may establish new regional carbon‑emission‑rights trading markets. Moreover, enterprises in sectors already included in the national carbon‑emission‑rights trading market shall no longer participate in local trading markets for the same greenhouse gases or in the same industries.

Shanghai has issued the “2024 Work Plan for Peaking Carbon Emissions, Achieving Carbon Neutrality, and Promoting Energy Conservation and Emission Reduction.”
On March 29, the Shanghai Municipal Government website published the “Notice on Issuing the ‘Key Work Arrangements for Carbon Peaking and Carbon Neutrality and Energy Conservation and Emission Reduction in Shanghai for 2024.’”
The “Work Plan” comprises sixteen measures, calling for stronger alignment between green certificates and the dual-control policy on energy consumption, vigorous promotion of non‑fossil energy use, advancement of integrated management for peaking carbon emissions and achieving carbon neutrality, and accelerated transformation toward a green, low‑carbon energy system. It aims to add more than 600,000 kilowatts of new photovoltaic capacity, deepen efforts to peak carbon emissions in the industrial sector by implementing 450 adjustment projects, promote the establishment of energy management centers at enterprises with annual comprehensive energy consumption exceeding 2,000 tons of standard coal, and ensure that 100 key energy‑using entities complete energy audits, among other initiatives.

Four departments have jointly launched innovative initiatives to enhance product quality and reliability, thereby boosting the high-quality development of the manufacturing sector.
On March 29, the Shanghai Administration for Market Regulation published on its website the “Opinions on Jointly Launching Innovative Practices in Product Quality Reliability to Empower High-Quality Development of the Manufacturing Sector.”
The “Opinions” outline 13 tasks across four key areas, proposing the joint development and sharing of a high‑level reliability expert database; the establishment and improvement of a comprehensive technical standards system for reliability; intensified research and problem‑solving efforts to address critical technological bottlenecks; the construction of an innovative public service platform for reliability; the creation of a collaborative and coordinated working mechanism for reliability; the promotion of deep integration among industry, academia, research, and application; the enhancement of reliability across the entire industrial chain; the identification and dissemination of “best practices” in product quality and reliability innovation; the formulation of a list of technologies for the promotion and application of reliability innovations; the organization of a reliability‑innovation challenge competition; the convening of an innovation conference to strengthen cohesion; the pursuit of policy incentives to boost attractiveness; and the strengthening of publicity to expand social influence.

State Council: Steadily advance the four major initiatives to promote large-scale equipment upgrades and the trade-in of used consumer goods for new ones.
On March 28, the State Council convened a video conference to advance the large-scale upgrading of equipment and the trade-in program for consumer goods.
Premier Li Qiang of the State Council emphasized the need to steadily advance four major initiatives: equipment upgrading, trade‑in programs for consumer goods, recycling and circular utilization, and standards enhancement. He stressed respecting the preferences of both enterprises and consumers, strengthening policy support and implementation, and adopting a targeted, sector‑specific approach. Priority will be given to supporting equipment upgrades in industries with strong growth prospects and high investment‑multiplier effects; emphasis will be placed on trade‑in schemes for high‑value, durable consumer goods that are urgently needed, have significant demand‑stimulating impacts, yet carry relatively high purchase costs; and efforts will be accelerated to develop “trade‑in plus recycling” logistics systems and new business models.

The National Development and Reform Commission has issued the “Special Management Measures for Central Budgetary Investment in Comprehensive Water Environment Governance of Key River Basins.”
On April 1, the website of the National Development and Reform Commission published the “Notice on Issuing the Special Management Measures for Central Budgetary Investment in Comprehensive Water Environment Governance of Key River Basins.”
The Measures comprise six chapters and twenty-six articles, specifying that this special investment program will prioritize comprehensive remediation projects directly linked to the improvement of water environmental quality in river basins. These projects primarily include: integrated management of river and stream water environments; integrated management of lake and reservoir water environments; protection and source‑level control of centralized drinking water sources; endogenous pollution control; and other initiatives aimed at advancing water environmental protection and governance.

The State Council has approved the Overall Plan for the Construction of the China–Shanghai Cooperation Organization Ice and Snow Sports Demonstration Zone.
On March 29, the Chinese Government Website published the “Reply on the Overall Plan for the Construction of the China–Shanghai Cooperation Organization Ice and Snow Sports Demonstration Zone.”
The Approval Document explicitly states that the State Council has, in principle, approved the “Overall Plan for the Construction of the China–Shanghai Cooperation Organization Ice and Snow Sports Demonstration Zone,” and calls for leveraging this zone as an important platform to promote exchanges and cooperation among SCO member states and countries participating in the Belt and Road Initiative in such fields as sports, culture, human resources, and industry. It also encourages pioneering trials, innovation in institutional mechanisms, and the enhancement of both domestic and international openness and cooperation.

Beijing plans to issue the 2024 edition of the Administrative Penalty Discretionary Standards for Combating Telecom and Online Fraud.
On March 28, the Beijing Municipal Government website published an announcement soliciting public comments on the “Beijing Public Security Bureau’s Administrative Penalty Discretionary Standards for Combating Telecommunications and Online Fraud (2024 Edition)” and the “Discretionary Penalty Standards Table for Violations of the Anti‑Telecommunications and Online Fraud Law of the People’s Republic of China (Draft for Comments).” The deadline for submitting feedback is April 7.
The draft “Beijing Municipal Public Security Bureau Administrative Penalty Discretionary Standards for Combating Telecommunications and Online Fraud (2024 Edition)” corresponds to the administrative penalty powers of public security organs under the Anti‑Telecommunications and Online Fraud Law. Taking into account the varying circumstances of unlawful conduct, Articles 38, 42, and 44 categorize discretionary penalties into three tiers—“general violations,” “serious violations,” and “acts involving minor criminal circumstances that are not prosecuted by the People’s Procuratorate or exempted from criminal punishment by the People’s Court”—while Articles 39, 41, and 43 adopt a two-tier structure, distinguishing between “minor violations” and “serious violations.” The “Penalty Discretionary Benchmark Table for Violations of the Anti‑Telecommunications and Online Fraud Law” provides a detailed breakdown of specific penalty scenarios.

The State-owned Assets Supervision and Administration Commission’s Leading Group for Comprehensively Deepening Reform held its first plenary meeting of 2024.
On March 29, the Leading Group for Comprehensively Deepening Reform of the State-owned Assets Supervision and Administration Commission of the State Council held its first plenary meeting of 2024, fully implementing the CPC Central Committee and the State Council’s directives on earnestly advancing the Action Plan for Deepening and Upgrading State-owned Enterprise Reform. The meeting heard reports on progress in related work and conducted an in-depth review of key and difficult issues that require stronger coordination and concerted efforts at this stage.
The meeting emphasized the need to proactively carry out disposal and clearance efforts related to “two non‑compliant activities” and “two types of assets,” promote the revitalization and efficient utilization of existing land holdings by central enterprises, and guide these enterprises in developing strategic emerging industries tailored to local conditions and their specific circumstances. It also called for officely assigning primary responsibility to enterprises, deepening the implementation of performance assessments based on a “one industry, one policy; one enterprise, one policy” approach, introducing medium- to long-term evaluation and incentive mechanisms for research on original and foundational technologies, advancing breakthroughs in critical core technologies in key areas, strengthening the development of the external director corps, and dynamically refining, by tier and category, the list of major business and management matters subject to prior Party committee (Party group) review and deliberation.

The National Development and Reform Commission has issued the 2024 Trial Outline for Preparing Concession Agreements for PPP Projects.
On March 29, the National Development and Reform Commission’s website published the “Notice on Issuing the Outline for Preparing Concession Agreements for Public-Private Partnership Projects (Trial Version, 2024).”
The Outline comprises five sections: an overview, a project feasibility analysis, a feasibility assessment of the franchising model, the key elements of the franchise arrangement, and conclusions and recommendations. In particular, the section on the key elements of the franchise arrangement should clearly specify the project’s construction scope, operational requirements, service coverage, and other pertinent details under the proposed franchising model, as well as the franchisee’s responsibilities at each stage of the project lifecycle. For projects aimed at revitalizing existing assets, this section should delineate the methods and procedures for disposing of project assets, along with provisions regarding the handling of outstanding liabilities and the resettlement of employees. Additionally, it should set forth policy safeguards governing revenue sources, pricing and price adjustments, cost monitoring and auditing, and other related matters under a user‑pay mechanism, while also establishing responsive mechanisms to address government‑specific requirements that may affect the project’s revenue streams.

The Cyberspace Administration of China has launched a special campaign to rigorously address enterprise-related infringing information.
Recently, the Cyberspace Administration of China issued a notice to launch a special campaign titled “Qinglang: Optimizing the Online Business Environment—Rectifying the Disorderly Spread of Information Infringing on Enterprises.”
This special campaign focuses on addressing the rampant online misinformation that infringes upon the legitimate rights and interests of enterprises and entrepreneurs. By holding website and platform operators fully accountable, it standardizes their procedures for receiving and handling reports of enterprise‑related content, with a particular emphasis on curbing practices such as baselessly smearing or damaging the reputation of businesses and entrepreneurs without factual basis, fabricating and disseminating false or misleading information, engaging in extortion to seek illegal gains, disrupting the normal order of business operations, and maliciously hyping publicly available enterprise‑related information. The Cyberspace Administration of China has mandated a thorough cleanup of existing infringing content targeting enterprises, strengthened oversight of key areas like trending search lists, and strictly prohibited relevant accounts and MCN agencies from exploiting and marketing such infringing information for promotional purposes.

Taxation
Focusing on “efficiently getting one thing done” to enhance convenience and improve efficiency.
The State Taxation Administration is vigorously implementing the 2024 “Spring Breeze Action for Convenient Tax Services.”
To thoroughly implement the spirit of the 20th National Congress of the Communist Party of China, earnestly carry out the arrangements set forth at the Central Economic Work Conference and the Two Sessions, consolidate and expand the achievements of thematic education within the tax system, and better serve the overall cause of economic and social development, the State Taxation Administration today released the “Opinions on Launching the 2024 ‘Spring Breeze Action for Convenient Tax Services’” (hereinafter referred to as the “Opinions”). With the theme of “Continuously Enhancing Efficiency and Delivering Practical Benefits to the People,” the initiative will remain officely focused on “efficiently completing one task,” continuing to advance the Spring Breeze Action for Convenient Tax Services. It will integrate and roll out service measures in four key areas that benefit both the public and businesses, further enhancing taxpayers’ and payers’ sense of gain and satisfaction.
According to reports, since 2023, the tax authorities have optimized and upgraded their mechanism for addressing taxpayer and payer service requests. They have established joint offices at both the national and provincial levels to analyze and handle such requests, thereby establishing a working framework characterized by “national-level overall coordination, provincial-level primary responsibility, vertical linkage, and tiered accountability.” By comprehensively leveraging data resources from channels such as “Internet Plus Supervision” and the 12366 tax and fee service hotline, the authorities ensure thorough collection, in-depth analysis, timely resolution, and rigorous evaluation of these requests. Grounded in the perspectives of taxpayers and payers, this approach further strengthens the foundation for innovating and upgrading the service measures under the “Spring Breeze Action” to make tax administration more convenient.
The 2024 “Spring Breeze Action for Convenient Tax Services,” guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, seeks to officely establish a proactive service mindset toward taxpayers and payers, strengthen technological support and digital empowerment, and strive to enhance the efficiency of tax administration, thereby further improving the accessibility, equity, and precision of tax and fee services. The Opinions, focusing on four key areas—“further consolidating the foundation of tax and fee service provision,” “further enhancing responsiveness to tax and fee service demands,” “further strengthening digital empowerment in tax and fee services,” and “further advancing innovation in tax and fee service delivery”—introduce a series of integrated service measures.
Under the initiative to “further strengthen the foundation of tax and fee‑service provision,” the focus is on enriching the diversity of tax and fee services. By optimizing channels for handling tax and fee matters, refining taxpayer credit assessments, and improving the management of tax‑related professional services, measures have been introduced, including the full nationwide rollout of a standardized, unified electronic tax bureau; enhancements to the individual‑user electronic tax bureau; support for newly established business entities to promptly improve their credit ratings; and an increase in the annual baseline score for taxpayers rated as Credit Grade A. These steps are designed to solidify the service‑delivery infrastructure and comprehensively elevate the user experience for key administrative processes.
In the area of “further enhancing responsiveness to tax and fee‑related service requests,” the focus is on high‑frequency, priority issues. While ensuring efficient handling of taxpayer and payer concerns through a robust grievance‑resolution mechanism, the emphasis is placed on “strengthening the practical effectiveness of problem‑solving.” By closely aligning with the real needs of businesses and the public, tailored, targeted measures are being implemented to address bottlenecks in tax filing and payment. These include expanding the scope of priority tax refunds for individual income tax final settlement, issuing guidance on tax and fee preferential policies supporting the development of the manufacturing sector, and launching a “First Lesson Upon Business Start-up” program for newly registered taxpayers—efforts that collectively aim to improve the efficiency of addressing tax and fee‑related requests.
In the area of “further strengthening digital empowerment of tax and fee services,” the focus is on deepening the application of tax and fee‑related big data. By “promoting data interoperability and sharing” and “enhancing the use of digital technologies,” efforts are being made to streamline tax filing and payment processes, simplify documentation requirements, and reduce costs. Measures include leveraging inter‑agency data sharing to improve the pre‑filling function for special additional deductions related to major illness medical expenses; optimizing the one‑stop mobile‑app reporting feature for pre‑tax deductions on individual pension contributions in the Individual Online Tax Service; and accelerating the electronic transformation of railway and civil aviation invoices, thereby effectively elevating the quality of tax and fee services.
In terms of “further advancing innovation in tax and fee service delivery,” we are upgrading and innovating integrated service models such as “cross‑jurisdictional processing,” “cross‑border processing,” “batch processing,” and “one‑stop window processing.” We are also facilitating online handling of out-of‑jurisdiction tax‑related reporting, expanding the knowledge‑based offerings under the “Shuilutong” cross‑border service brand, optimizing the tax‑agency functions for tax‑professional service institutions and their practitioners within the electronic tax bureau, and continuously refining the one‑stop tax‑registration process for real estate, thereby driving an overall upgrade in the quality of tax and fee services.
The Opinions call on tax authorities at all levels to further elevate their political awareness, while urging the vast majority of tax officials to proactively strengthen their sense of service—“taking a step forward”—fully discharge their duties, and serve taxpayers and payers with dedication. They are expected to strive for new breakthroughs in delivering high‑quality tax and fee services, thereby contributing to the high‑quality advancement of tax administration in the context of Chinese‑style modernization.
An official from the Taxpayer Services Department of the State Taxation Administration stated that this year marks the 75th anniversary of the founding of the People’s Republic of China and is a pivotal year for achieving the goals and tasks set forth in the 14th Five-Year Plan. The tax authorities will thoroughly study and implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, earnestly carry out the major decisions and arrangements of the CPC Central Committee and the State Council, and, with “efficiently getting one thing done” as the guiding principle, continue to advance the “Spring Breeze Action for Convenient Tax Services.” Taking it as their mission to be dedicated service providers for taxpayers and payers, they will focus on high-frequency tax‑related matters and the most pressing issues raised by taxpayers and payers, deepen and expand internal and external coordination, leverage the power of tax‑related big data, and effectively remove bottlenecks and obstacles. Through a more pragmatic work style, stronger efforts, and improved measures, they aim to enhance both the convenience of handling tax matters and the efficiency of completing them.

The State Taxation Administration and four other departments have clarified the implementation guidelines for tax policies supporting entrepreneurship and employment.
According to a notice posted on the website of the State Taxation Administration on April 3, the Administration and four other departments recently issued the “Announcement on Issues Related to the Implementation of Tax Policies for Entrepreneurship and Employment among Key Groups and Self-Employed Retired Soldiers,” which will take effect on January 1, 2024.
The Notice comprises six sections. First, it clarifies the procedures for eligible individuals from priority groups to avail themselves of the relevant policies when engaging in self‑employment. Second, it sets out the procedures for enterprises that hire such priority‑group members to benefit from the policies, detailing specific steps such as applying to the human resources and social security authorities and filing with the tax authorities; it also specifies the information required at the time of application and the documentation to be retained for record‑keeping, as well as the limits and order of tax and fee deductions. Third, it outlines the procedures for demobilized soldiers who are self‑employed to access the policies supporting their entrepreneurship and employment. Fourth, it clarifies certain operational guidelines for tax collection and administration. Fifth, it streamlines the policy‑management approach. Sixth, it defines the effective date and arrangements for ensuring smooth policy transitions.

Litigation & Arbitration
The Supreme People’s Court has released typical cases of punishing crimes endangering public safety in accordance with the law.
On April 2, the Supreme People’s Court released five typical cases of crimes endangering public safety that were punished in accordance with the law, further clarifying adjudication standards and enhancing the effectiveness of case trials.
This batch of typical cases addresses issues such as the criteria for determining whether high‑altitude object‑dropping constitutes the crime of endangering public safety by dangerous methods; the characterization of theft of oil and gas from operating oil and gas facilities that results in a fire; the standards for adjudicating criminal cases involving firearms powered by compressed gas; the punishment of the principal person responsible for production safety accidents; and the criteria for establishing the crime of hazardous operations. In Case No. 1, the Supreme People’s Court clarified that, with respect to high‑altitude object‑dropping, the social harm caused must be assessed comprehensively—taking into account the perpetrator’s subjective intent, the location from which the objects were thrown, the specific circumstances of the act, and the resulting consequences—so as to accurately determine the nature of the conduct. In certain instances, where an individual deliberately and repeatedly hurls heavy objects, knives, or other items from buildings or other elevated locations onto public spaces such as roads, plazas, or residential areas, thereby endangering public safety and causing serious injury, death, or substantial damage to public or private property, such conduct has already inflicted actual harm on public safety and should be prosecuted and punished as the crime of endangering public safety by dangerous methods.

The Supreme People’s Procuratorate has outlined work in seven key areas to punish, in accordance with the law, organized crime and gang-related offenses in priority sectors such as finance and engineering.
Recently, the Leading Group of the Supreme People’s Procuratorate for the Campaign Against Organized Crime and Evil Forces has issued specific directives across seven key areas to ensure the sustained and regular implementation of this campaign by procuratorial organs in 2024, while setting forth clear requirements for continuously elevating the rule-of-law, standardization, and professionalization of anti‑organized crime and anti‑evil‑forces efforts.
An official from the Office of the Leading Group for the Campaign Against Organized Crime and Evil Forces under the Supreme People’s Procuratorate emphasized the need to strengthen the handling of key areas and priority cases, coordinate participation in the special campaign “Procuratorial Protection of Enterprises,” and focus on economic sectors such as financial lending, engineering construction, and market circulation. Efforts should be concentrated on cracking down on illegal usury, malicious obstruction of construction projects, and interference in corporate economic disputes—activities involving organized crime and evil forces that infringe upon the legitimate rights and interests of private enterprises. Such crimes that seriously undermine the business environment and economic‑financial order must be punished in accordance with the law. Furthermore, thorough investigations into money‑laundering offenses linked to organized crime are required to safeguard a fair and just economic order. Priority should be given to resolving issues of accurate identification in enterprise‑related organized‑crime cases, conducting research on how such crimes harm the business environment, and continuously consolidating and deepening the achievements of rectification efforts in key areas including land expropriation and relocation, mineral resources, information networks, financial lending, market circulation, transportation, engineering construction, and education and healthcare.

The national procuratorial organs’ special training conference on “Procuratorial Protection of Enterprises” called for the in-depth advancement of compliance reform involving enterprises.
On March 29, the national procuratorial organs held a special training session on “Prosecutorial Protection of Enterprises,” outlining the priorities and specific measures for the next phase of work.
The meeting emphasized that the “Prosecutorial Protection of Enterprises” special campaign is the first initiative to coordinate the four major areas of procuratorial work in advancing judicial protection for the private sector. Procuratorial organs at all levels must earnestly address law‑enforcement and judicial practices driven by profit, vigorously advance the governance of internal corruption within private enterprises, foster a fair and competitive business environment, handle criminal–civil intersection cases with precision, deepen compliance reforms for enterprises involved in legal proceedings, strengthen lawful oversight of fraudulent arbitration and false notarization, ensure the full and accurate enforcement of criminal judgments involving enterprises in accordance with the law, and enhance supervision over administrative litigation and administrative violations affecting businesses. All these efforts should be carried out through integrated, comprehensive, and proactive performance of duties in line with the law. Grassroots procuratorates are encouraged to draw on local conditions, demonstrate pioneering spirit, innovate as they implement, and develop as they move forward, continuously creating vivid models of “prosecutorial protection of enterprises” and establishing replicable, scalable best practices.

The Supreme People’s Procuratorate has released typical cases of civil prosecution that promote the development and growth of the private sector.
On April 1, the Supreme People’s Procuratorate website published the “Notice on Issuing the ‘Typical Cases of Civil Prosecutorial Work Promoting the Development and Growth of the Private Sector.’”
This batch of typical cases comprises ten matters, encompassing both supervisory and enforcement‑related cases involving private enterprises, as well as cases in which the procuratorial organs, in accordance with the law, supervised false litigation that infringed upon the legitimate rights and interests of private enterprises. In Case No. 1, Company A, a small, medium, or micro private enterprise, had obtained a favorable judgment from the court; however, despite the existence of assets belonging to the judgment debtor, Company B Construction, the executing court concluded the proceedings by terminating the current enforcement phase. As a result, Company A was unable to promptly recover its funds due to inadequate enforcement of the judgment, thereby suffering harm to its lawful rights and interests and experiencing a significant adverse impact on its business operations and development. In response, the procuratorial organ conducted investigations and verifications into whether Company B Construction possessed enforceable assets and whether the executing court had exhausted all available measures for asset investigation. It then exercised legal supervision over enforcement cases—particularly those where the execution procedure was terminated despite the presence of assets—aimed at safeguarding the lawful rights and interests of the applying party, thereby addressing the issue of the abusive use of the termination of the current enforcement procedure.

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