JC Master Legal News Issue 1104

Key Takeaways for This Issue

The first meeting of the China–EU Financial Working Group was held, with discussions on issues such as market access for financial institutions.
The first meeting of the China–EU Financial Working Group was held in Beijing on March 18–19.
The National Administration of Financial Regulation: Will incorporate ESG and other factors as positive scoring elements in the regulatory rating of life insurance companies.
On March 18, the website of the National Administration of Financial Regulation published the “Notice on Issuing the Measures for the Regulatory Rating of Life Insurance Companies.”
New regulatory rules for consumer finance companies have officially taken effect, raising entry thresholds and strengthening oversight of corporate governance.
The Measures for the Administration of Consumer Finance Companies have been reviewed and approved by the Financial Supervisory Authority and publicly announced on March 18, taking effect from April 18, 2024.
The Supreme People’s Court and the Ministry of Natural Resources have jointly launched a pilot program for online seizure registration of real estate.
Recently, the Supreme People’s Court and the Ministry of Natural Resources jointly issued the “Notice on Launching a Pilot Program for ‘General-to-General’ Online Seizure Registration of Real Estate.”
Finance & Capital Markets
The Shenzhen Stock Exchange and Zhejiang Province deepen their comprehensive strategic cooperation.
Continuously deepening and solidifying support for Zhejiang’s “88 Strategy”
On the afternoon of March 23, the Shenzhen Stock Exchange and the People’s Government of Zhejiang Province signed a comprehensive strategic cooperation agreement to support the continued deepening and effective implementation of Zhejiang’s “88 Strategy,” and to help the province vigorously advance its goals of being a pioneer in two key areas and building itself into an important window. This agreement represents a concrete step by both sides to thoroughly implement the spirit of General Secretary Xi Jinping’s important speeches and instructions during his inspection tour of Zhejiang, to put into practice the guiding principles of the Central Financial Work Conference, and to promote high-quality economic and social development through financial services.

The Shenzhen Stock Exchange has consistently attached great importance to fostering and serving Zhejiang’s capital market, maintaining close, long-term communication and cooperation with the province. First, it has actively aligned with the “Phoenix Action” initiative, tailoring the “Wutong Project” and the “Tonglin Project” to Zhejiang’s needs, thereby helping to ensure a healthy, virtuous cycle among the province’s industries, technology, and capital. Second, it established the jointly‑built Shenzhen Stock Exchange Zhejiang Service Base, focusing on key sectors such as the digital economy, high‑end manufacturing, new energy, and new materials, and has provided services to more than a thousand prospective listed companies within the province. Third, in collaboration, it developed the “Zhejiang Enterprise Listing Integrated Service System” (Phoenix Danxue), which, centered on objectives like nurturing companies for IPOs and enhancing the quality of listed offices, seamlessly integrates online information resources from government departments, industry associations, financial institutions, and intermediary agencies, offering a digital platform to support the cultivation of Zhejiang’s pre‑IPO enterprises and the high‑quality development of its listed companies. Fourth, it supports the high‑quality development of state‑owned assets and SOEs in Zhejiang by co‑hosting an annual collective earnings briefing for Zhejiang‑controlled listed companies, facilitating smooth communication between provincial SOE‑listed offices and capital‑market investors, and helping these enterprises continuously enhance their value. Fifth, together with Zhejiang, it is building an ecosystem for the commercialization of scientific and technological achievements, streamlining channels for connecting technology with capital, and boosting the region’s capacity to translate research into practical applications and industrialize innovations. Sixth, it is working with Zhejiang to establish a communication mechanism for preventing and resolving risks faced by listed companies, intervening early and coordinating closely to jointly improve the overall quality of Zhejiang’s listed offices.

The Shenzhen Stock Exchange will take this strategic cooperation as a new opportunity, focusing on the theme of “new‑type productive forces” and dedicating itself to supporting Zhejiang Province’s high‑quality development. First, it will jointly cultivate a cohort of high‑quality enterprises, support the in-depth implementation of the new round of the “Phoenix Action” plan, and optimize the “Phoenix Danxue System,” thereby helping Zhejiang develop new‑type productive forces tailored to local conditions and further improve its modern industrial system. Second, it will work together to strengthen and stabilize regional industrial chains, supporting Zhejiang’s efforts to build advanced manufacturing clusters under the “415X” initiative and the “315” innovation‑driven science and technology system, thus accelerating the cultivation of new growth drivers and competitive advantages. Third, it will jointly leverage the exchange’s bond market by promoting the issuance of innovative products such as science‑and‑technology bonds and intellectual‑property‑backed ABS, while bolstering the development of public REITs, thereby injecting more financial vitality into Zhejiang’s high‑quality development. Fourth, it will collaborate to deepen the next round of reforms in state‑owned assets and enterprises, unlocking the value of state‑owned assets, invigorating SOEs, and helping state‑controlled listed companies make better use of capital‑market tools to enhance their performance, strengthen their competitiveness, and improve overall quality. Fifth, it will jointly prevent and defuse local financial risks by strengthening information sharing and coordinated efforts in areas such as listed‑company supervision and risk prevention and resolution for financial products, reinforcing regulatory collaboration and optimizing the broader financial ecosystem.

Going forward, the Shenzhen Stock Exchange will thoroughly study and implement the spirit of the 20th National Congress of the Communist Party of China and the central government’s guidelines on financial work. In accordance with the unified deployment of the China Securities Regulatory Commission, it will officely uphold the overarching principles of strengthened regulation, risk prevention, and high‑quality development, focusing on key areas such as advanced manufacturing, the digital economy, and green, low‑carbon initiatives. The Exchange will enhance market functions, elevate service standards, and continue to deepen its multi‑tiered, all‑round cooperation with Zhejiang Province, supporting the province in accelerating the development of new‑type productive forces and helping Zhejiang play a leading and exemplary role in advancing Chinese‑style modernization.

The first meeting of the China–EU Financial Working Group was held, with discussions on issues such as market access for financial institutions.
On March 18–19, the first meeting of the China–EU Financial Working Group was held in Beijing. The Governor of the People’s Bank of China and leaders from other relevant departments attended, holding talks with representatives from the European Central Bank, the European Banking Authority, the European Securities and Markets Authority, the European Insurance and Occupational Pensions Authority, the Single Resolution Board, and the Delegation of the European Union to China, among other pertinent agencies.

The financial authorities of both sides briefed each other on the macroeconomic and financial stability outlook in China and the EU, as well as on their respective financial regulatory frameworks. They discussed issues such as the business operations and regulatory requirements of financial institutions, market access for banks, insurance companies, and financial leasing entities, anti‑money‑laundering cooperation, and other areas of financial regulatory collaboration. The two sides also exchanged views on capital market development, sustainable finance, cross‑border data transfers and cross‑border payments, and equivalence recognition for central counterparties. Both sides agreed to continue following up on several priority issues ahead of the second meeting of the China–EU Financial Working Group, with a view to achieving early results.

Shanghai has introduced special measures to promote the implementation of the Regulations on Preventing and Handling Illegal Fund-Raising.
On March 20, the Shanghai Municipal Government website published the “Measures of Shanghai Municipality for Implementing the Regulations on the Prevention and Handling of Illegal Fund-Raising.”
The Measures consist of five chapters and thirty-two articles, stipulating that the leading department responsible for handling illegal fundraising shall organize lawful investigations and evidence collection concerning entities or individuals suspected of engaging in illegal fundraising, with a particular focus on ascertaining their fundraising methods, amounts involved, business practices, contract‑based repayments, and tax compliance. The Measures further provide that persons engaged in illegal fundraising and those who assist in such activities must manage the repayment of raised funds through dedicated deposit accounts, ensuring that these funds are used exclusively to reimburse investors. They also require third‑party institutions to maintain the confidentiality of any information related to suspected illegal fundraising that they obtain in the course of providing services, as well as of the commercial secrets and personal privacy of relevant entities and individuals. Moreover, the Measures prohibit entities or individuals under investigation or subject to enforcement measures from disclosing case‑related information without authorization, or from fabricating or disseminating false or misleading information, and impose corresponding legal liabilities for violations of these prohibitions.

The National Administration of Financial Regulation: Will incorporate ESG and other factors as positive scoring elements in the regulatory rating of life insurance companies.
On March 18, the website of the National Administration of Financial Regulation published the “Notice on Issuing the Measures for the Regulatory Rating of Life Insurance Companies.”
The “Rating Measures” comprise six chapters and twenty-three articles, assessing insurers across six dimensions: corporate governance, business operations, asset‑liability management, solvency, and other factors. The overall risk rating is graded from 1 to 5, with higher numbers indicating greater risk. Corporate governance and asset‑liability management carry relatively higher weights, while aggressive business expansion and related‑party transaction risks trigger dynamic adjustments to the rating. Companies undergoing restructuring or under regulatory supervision, as well as those facing any of six specified material risk scenarios, are automatically assigned a rating of 5. The Measures also establish a risk information database and introduce ESG considerations as special bonus points, thereby enhancing the effectiveness of risk prevention and control in the life insurance sector and promoting differentiated business practices among life insurers.

The State Administration of Foreign Exchange has revised the statistical system for external financial assets, liabilities, and transactions.
Recently, the State Administration of Foreign Exchange revised and issued the “Statistical Business Guidelines for External Financial Assets, Liabilities, and Transactions (2024 Edition)” and the “Verification Rules for External Financial Assets, Liabilities, and Transactions (2024 Edition),” both of which took effect on March 11, 2024.
The “Business Guidelines (2024 Edition)” help applicants better understand the specific filing requirements. The “Verification Rules (2024 Edition)” facilitate necessary pre‑submission checks for applicants.
This revision, first, elaborates on the reporting requirements for newly added statistical forms—such as those for international transport and construction—in accordance with the “Statistical System for External Financial Assets, Liabilities, and Transactions.” Second, it clarifies the reporting obligations for newly introduced foreign‑related business activities arising from recent capital market opening measures, while revising and supplementing the verification rules for statistical data elements. Third, in response to routine reporting practices and common issues, it provides additional illustrative reporting cases.

The People’s Bank of China has officially released the revised “Procedures for Handling Credit Reporting Complaints.”
On March 15, the People’s Bank of China published on its official website the “Notice on Issuing the ‘Procedures for Handling Credit Reporting Complaints.’”
Following the revision, the Regulations comprise five chapters and twenty-six articles. Key changes include streamlining the identity verification requirements for complainants, introducing new procedures such as document review, suspension of proceedings, and consolidated handling, and standardizing the formats of relevant documents, including complaint applications, responses to complaints, and notices of termination. The Regulations also unify the authority and jurisdiction for accepting credit‑reporting complaints, clarify the criteria for admissibility—mandating acceptance of complaints that meet the requirements while strengthening the obligation to provide clear notice in cases that do not—and define the scope of admissible credit‑reporting complaints, thereby enhancing the precision of redress mechanisms. In addition, provisions have been added to terminate processing in instances of submitting false materials or filing complaints under another’s name, guiding complainants to protect their rights in accordance with the law and regulatory standards.

The China Securities Regulatory Commission has put forward 25 measures to strengthen the regulation of securities offices and public mutual funds.
On March 15, the website of the China Securities Regulatory Commission published the “Opinions on Strengthening the Regulation of Securities Offices and Publicly Offered Funds and Accelerating the Development of World-Class Investment Banks and Investment Institutions (Trial).”
The “Opinions” aim to foster, within approximately five years, a landscape in which around ten leading, high‑quality institutions spearhead the industry’s move toward high‑quality development, and by 2035 to establish two to three investment banks and investment institutions that possess international competitiveness and market‑leading capabilities. Comprising seven key areas and twenty-five specific measures, the document calls for strengthening the foundations of compliance and risk management, reinforcing the principal responsibility of institutions for equity governance, improving mechanisms to prevent conflicts of interest—including the management of related-party transactions—and rigorously cracking down on unlawful practices—such as improper interference by shareholders and de facto controllers, as well as the misappropriation of funds—that harm the interests of institutions and investors.

New regulatory rules for consumer finance companies have officially taken effect, raising entry thresholds and strengthening oversight of corporate governance.
The Measures for the Administration of Consumer Finance Companies have been reviewed and approved by the Financial Supervisory Authority and publicly announced on March 18, taking effect from April 18, 2024.
The Measures comprise ten chapters and 79 articles. First, they raise entry standards by increasing the thresholds for key investors’ assets, operating revenue, and other indicators, as well as the minimum shareholding ratio; they also raise the required shareholding proportion for investors with experience in consumer finance business management and risk control; and they increase the minimum registered capital requirement for consumer finance companies. Second, they strengthen category‑based supervision of business activities by eliminating non‑core and non‑essential lines of business and imposing strict tiered regulatory oversight. Third, they enhance corporate governance oversight by clarifying regulatory requirements related to related-party transactions, information disclosure, and other matters. Fourth, they reinforce risk management by specifying regulatory requirements for credit risk, operational risk, information technology risk, and other areas, while refining and adding certain supervisory indicators. Fifth, they bolster consumer rights protection.

New regulations on IPO on-site inspections have been introduced, adding a “surprise inspection” mechanism.
The China Securities Regulatory Commission has promulgated the revised Regulations on On-site Inspections of Companies Seeking an Initial Public Offering, which shall take effect from the date of their publication.
This revision consolidates internal operating procedures and comprises five chapters—General Provisions, Determination of Inspection Subjects, Organization and Implementation, Supervision and Management, and Supplementary Provisions—totaling 39 articles. The revised On-Site Inspection Regulations emphasize the principle of “accountability upon filing,” stipulating that, during the inspection process, enterprises that withdraw their listing applications will be subject to a thorough investigation from start to finish. Such withdrawals do not impede the conduct of the inspection nor affect the lawful and regulatory handling of issues identified during the inspection. Additionally, a “surprise inspection” mechanism has been introduced: in cases of significant emergencies or where there is clear evidence that prior notice to the inspected entity could compromise the effectiveness of the inspection, the inspection authority, upon approval by its head, may proceed directly with the inspection without prior notification.

Commercial & Corporate
Six departments strengthen food safety oversight of pre-made dishes: no preservatives added, with strict control over raw material quality.
On March 21, the State Administration for Market Regulation and five other departments jointly issued the “Notice on Strengthening Food Safety Supervision of Pre‑made Dishes and Promoting High‑Quality Industrial Development,” aiming to advance the establishment of a standardization system for pre‑made dishes and enhance food safety oversight in this sector.
The Notice defines the concept of “pre‑prepared dishes,” specifying that such products are pre‑packaged meals made from one or more edible agricultural products and their processed forms, without added preservatives, and intended for consumption only after heating or cooking; they do not include staple food items. It further clarifies that dishes prepared in central kitchens are excluded from the scope of pre‑prepared dishes. Additionally, minimally processed fresh produce—such as vegetables that have been washed, peeled, and cut but not yet cooked—is classified as an edible agricultural product, not a pre‑prepared dish. The Notice also stipulates the coordinated development of rigorous, unified standards covering all stages of pre‑prepared dish production and processing, refrigeration, freezing, and cold‑chain logistics, to regulate food safety requirements and establish quality benchmarks. Moreover, the Notice emphasizes that enterprises will be required to verify the certificates of conformity for the quality of edible agricultural raw materials used in pre‑prepared dishes, strictly control the use of food additives, refrain from adding preservatives, and ensure the food safety of these products. At the same time, oversight of production licensing will be strengthened, and inspection and supervision efforts will be intensified.

The State Administration for Market Regulation plans to revise the “Guidance on Antitrust Compliance for Operators.”
On March 21, the website of the State Administration for Market Regulation published the “Notice on Public Solicitation of Comments on the ‘Antitrust Compliance Guidelines for Operators (Draft for Comments)’,” with a deadline for submitting feedback set for April 3.
The draft of the “Guidelines” comprises six chapters and forty-two articles, accompanied by a “List of Laws, Regulations, Rules, and Other Normative Documents on the Anti-Monopoly Law.” It specifies that an anti-monopoly compliance management structure typically consists of a compliance governance body, a compliance management officer, and a lead compliance department, clearly delineating the responsibilities of each component. The document further recommends that operators, in light of varying compliance risks associated with different positions and levels, conduct periodic risk assessments; issue risk alerts to personnel categorized as high-, medium-, or low-risk; provide tailored risk warnings for common violations such as monopoly agreements, abuse of market dominance, and concentrations of undertakings; clarify legal liabilities; and offer guidance on establishing appropriate internal control systems within enterprises.

Deepening Reform of the Bankruptcy System to Optimize the Business Environment: Beijing’s Twenty-One Departments Jointly Issue 45 Measures
On March 21, the Beijing Municipal Government website published the “Notice on Issuing Several Measures to Deepen Bankruptcy System Reform and Optimize the Business Environment in Beijing.”
The “Several Measures” comprise nine sections and 45 policy provisions, covering areas such as the disposal of bankruptcy assets, credit restoration, tax-related services, and deregistration. Key measures include clarifying rules for the sealed‑and‑disposed handling of assets, streamlining procedures for the transfer of state‑allocated land, standardizing real estate registration processes, and improving workflows for equity changes and the release of pledges and seizures. These steps aim to refine the mechanism for disposing of bankrupt enterprises’ assets and promote the revitalization and efficient utilization of their existing resources. Additionally, the measures strengthen the coordinated credit‑restoration mechanism for restructured enterprises, facilitating a swift resumption of production and operations. Focusing on critical and challenging issues—such as delisting from abnormal taxpayer status, supplying invoices to bankrupt entities, and filing tax returns—the measures optimize processing procedures, specify required documentation, and strive to enhance the convenience of tax‑related administrative matters in bankruptcy proceedings.

Three departments plan to revise the “Statistical System for Outward Direct Investment.”
On March 21, the Ministry of Commerce’s website published the “Notice on Public Solicitation of Comments on the Revision of the Statistical System for Outward Direct Investment,” with a deadline for submitting feedback set for April 30.
In the “General Description” section of the Regulations, it is proposed to revise the “Quality Control” subsection by adding provisions on “Supervision and Inspection” and “Management of Statistical Data,” and to include requirements such as relative stability of statistical personnel and standardized classification criteria for the energy‑saving and environmental‑protection industries in the “Reporting Requirements” subsection. In the “Survey Forms” section, the annual report on “Key Areas of International Capacity Cooperation” will be replaced with a table on “Overseas Investment in the Power Sector”; additional annual reports will be introduced, including one on “Major Overseas Agricultural Product Output,” another on “Monthly Changes in Personnel of Overseas Enterprises,” and a third on “Monthly Investment in Overseas Energy‑Saving and Environmental‑Protection Industries.” Meanwhile, the “Monthly Report on Foreign Investment-Driven Imports and Exports of Goods” will be discontinued. Finally, in the “Explanation of Key Indicators and Definition of Concepts” section, the statistical definition of “Chinese‑national Employees of Overseas Enterprises” will be added, along with an expanded explanation of the indicator “Liabilities to Domestic Investors.”

The Ministry of Ecology and Environment plans to issue four national ecological and environmental standards.
On March 20, the website of the Ministry of Ecology and Environment issued a notice soliciting public comments on four national ecological and environmental standards, including the “Technical Specification for Continuous Monitoring of Carbon Monoxide and Hydrogen Chloride in Exhaust Gases from Stationary Pollution Sources (Draft for Comments).” The deadline for submitting feedback is April 22.
The national ecological and environmental standards currently open for public comment include: “Technical Specification for Continuous Monitoring of Carbon Monoxide and Hydrogen Chloride in Exhaust Gases from Stationary Pollution Sources (Draft for Public Comment)”; “Technical Specification for Continuous Automatic Monitoring of Gaseous Pollutants (Ammonia, Hydrogen Sulfide) in Ambient Air (Draft for Public Comment)”; “Technical Requirements and Test Methods for Continuous Automatic Monitoring Systems of Gaseous Pollutants (Ammonia, Hydrogen Sulfide) in Ambient Air (Draft for Public Comment)”; and “Determination of Water Temperature—Sensor Method (Draft for Public Comment).”

The Ministry of Ecology and Environment has issued implementation guidelines to accelerate the establishment of a modern ecological and environmental monitoring system.
On March 13, the website of the Ministry of Ecology and Environment published the “Notice on Issuing the ‘Implementation Opinions on Accelerating the Establishment of a Modern Ecological and Environmental Monitoring System.’”
The Implementation Opinions set forth the following key tasks: (1) to establish a comprehensive, integrated monitoring network spanning air, space, land, and sea; (2) to cultivate new competitive advantages in digital and intelligent monitoring technologies; (3) to strengthen high‑level support for monitoring operations; (4) to lay a solid foundation for high‑quality monitoring data; and (5) to advance efficient and effective monitoring management.

The National Energy Administration has issued a document to strengthen safety management of generator unit maintenance.
Recently, the website of the National Energy Administration published the “Notice on Strengthening Safety Management of Generator Unit Overhauls.”
The Notice stipulates that all power‑generation enterprises must earnestly fulfill their principal responsibility for workplace safety, with the chief executive fully assuming all duties of the primary person responsible for safety. Enterprises are required to scientifically plan maintenance schedules, reasonably determine maintenance durations, and rigorously prepare, review, and implement specialized plans for high‑risk sub‑projects such as work at height, edge‑exposed operations, hot work, live‑line work, confined space entry, and lifting operations, while strictly enforcing the “two permits and three systems.” They must also strengthen risk identification and hazard inspection, paying particular attention to potential risks and hidden dangers—including intermittent sticking or seizing of high‑ and intermediate‑pressure main steam valves in ultra‑supercritical units, inadequate sealing, excessive valve closing times, cracks leading to gas leakage, and coating delamination. Furthermore, outsourcing safety management should be reinforced by integrating outsourced maintenance teams into the enterprise’s own safety management system, ensuring unified management and standardized performance evaluation.

Shanghai has issued the 2024 Work Priorities for Regulating Direct Selling and Combating Pyramid Schemes.
On March 19, the Shanghai Administration for Market Regulation published on its website the “Notice on Issuing the ‘Key Work Priorities for Anti-Unfair Competition (Regulating Direct Sales and Cracking Down on Pyramid Schemes) in Shanghai for 2024.’”
The “Key Work Plan” comprises five areas and 16 specific measures, calling for strengthened regulatory enforcement in such domains as elderly and young‑child services, medical aesthetics, online unfair competition, and the protection of corporate commercial identifiers. It also aims to wage a decisive campaign against corruption in the pharmaceutical sector, refine the network‑based monitoring and analysis mechanism for unfair competition, and explore the development of rule‑based guidelines addressing issues such as commercial bribery, cashback for positive reviews, protection of trade secrets, and the interplay between Article 12 of the Anti-Unfair Competition Law and Article 35 of the E‑Commerce Law. Furthermore, it seeks to establish a system for safeguarding foreign‑related trade secret rights, conduct inspections and rectification of shell‑company practices in the direct‑selling industry, and place particular emphasis on pyramid‑scheme activities carried out under such banners as “social e‑commerce,” “education and training,” “health and wellness,” and “consumption rebates,” among others.

Beijing plans to introduce regulations on the management of the Intellectual Property Capacity‑Building Program for the International Science and Technology Innovation Center.
On March 21, the municipal government’s website published the “Notice on Soliciting Public Comments on the Draft Measures for the Administration of the Beijing International Science and Technology Innovation Center Intellectual Property Capacity‑Building Plan.”
》，The deadline for submitting feedback is April 20.
The Measures comprise seven chapters and twenty-five articles, covering general provisions, eligible entities and guiding principles, support content and standards, application and review procedures, fund disbursement, management and oversight, and supplementary provisions. They outline six specific areas of support: strengthening the intellectual property foundation of innovation entities; fostering foundational institutions with robust international IP capabilities; supporting key institutions in developing international IP capacity; backing benchmark institutions in international IP capacity; assisting innovation entities in strategically deploying Chinese and foreign geographical indications; and promoting innovation in IP service export.

The Ministry of Commerce plans to revise the statistical survey system for overseas contracted projects and labor cooperation.
On March 21, the Ministry of Commerce website published the “Notice on Public Solicitation of Comments on the Revisions to the Statistical Survey System for Foreign Contracting Projects and the Statistical Survey System for Foreign Labor Cooperation,” with a deadline for submitting feedback set for April 30.
Among these, the “Statistical Survey System for Foreign Contracting Projects” proposes to add “Detailed Breakdown of Overseas Design and Consulting Projects” and “Detailed Breakdown of Overseas Energy‑Saving, Environmental‑Protection, and Clean‑Energy Projects,” as well as to include additional quality‑control provisions and an appendix titled “Definition of Energy‑Saving, Environmental‑Protection, and Clean‑Energy Projects.” It also revises relevant sections on “Definition of Completed Turnover” and “Sources of Funding for Contracted Projects.” Meanwhile, the “Statistical Survey System for Foreign Labor Cooperation” plans to introduce new quality‑control measures, such as conducting statistical training on foreign labor cooperation and carrying out ad hoc data‑verification exercises.

The State Council: Industrial enterprises shall strengthen internal water-use management and establish water-saving management systems.
Premier Li Qiang of the State Council has signed a State Council decree promulgating the Regulations on Water Conservation, which will take effect on May 1, 2024.
The Regulations comprise six chapters and 52 articles, covering such areas as strengthening water-use management, improving water-saving measures, and enhancing safeguards and oversight. The Regulations stipulate that industrial enterprises shall strengthen internal water-management practices, establish water‑saving management systems, and adopt advanced, appropriate water‑saving technologies, processes, and equipment—such as differentiated water supply, high‑efficiency cooling and washing, water recycling, and wastewater treatment and reuse—to reduce water consumption per unit of product (or output value). Industrial enterprises with high water consumption that exceed the prescribed water‑use quotas must undertake water‑saving upgrades within a specified time limit. Cooling water from production equipment, air-conditioning cooling water, and boiler condensate in industrial enterprises shall be collected and reused. High‑water‑consumption industrial enterprises are required to progressively implement and promote advanced technologies for the deep treatment and reuse of wastewater.

The State Council plans to revise the catalog of industrial product production license management and refine the approval procedures.
On March 20, the website of the State Administration for Market Regulation published the “Notice on Public Solicitation of Comments on the ‘Decision of the State Council on Adjusting the Catalogue of Industrial Product Production License Management and Improving Approval Procedures (Draft for Comments)’,” with a deadline for submitting feedback set for April 3.
The Decision proposes to revise the catalog of industrial product production license management, adjusting the number of product categories and types subject to such licensing from 10 categories comprising 21 items to 14 categories comprising 27 items. It also envisages refining the approval process for fertilizer production licenses, shifting from a notification‑and‑commitment system to a pre‑examination‑then‑licensing approach. Furthermore, it will strengthen the administration of industrial product production license approvals, assigning responsibility to the competent authorities at the provincial level. Finally, it clarifies that the authority to approve production licenses for industrial products directly related to public safety and the safety of life and property shall not be delegated layer by layer.

The Ministry of Justice has issued the “Public Notarization: Reducing Documentation, Enhancing Convenience, and Accelerating Services” Action Plan.
On March 21, the Ministry of Justice website published the “Notice on Issuing the ‘Notarization: Reducing Documentation, Facilitating the Public, and Accelerating Services’ Action Plan.”
The “Action Plan” outlines seven key tasks: 1. Shorten the processing time for notarization. By categorizing and streamlining procedures, the time required to issue a notarial certificate will be reduced to no more than five or ten working days for matters involving simple legal relationships, clear facts, and sufficient supporting documentation. 2. Further streamline the list of required documents. When additional evidence is needed beyond what is listed, notaries shall proactively gather such materials based on leads provided by the parties involved. 3. Expand the “one‑document, one‑time service” model. 4. Promote the “one‑issue, one‑stop service” approach, advancing integrated handling of “notarization + real estate registration” as a single administrative matter. 5. Enhance the quality of services. 6. Strengthen digital empowerment. 7. Optimize resource allocation.

Shanghai has issued the 2024 edition of the “Guiding Opinions on Interest Subsidy Management for New Infrastructure Construction Projects.”
On March 19, the Shanghai Municipal Government website published the “Notice on Issuing the ‘Guiding Opinions on Interest Subsidy Management for New Infrastructure Projects in Shanghai (2024 Edition)’.”
The “Guiding Opinions” comprise five chapters and seventeen articles, explicitly encouraging partner banks to establish preferential‑rate credit funds for Shanghai’s new infrastructure development, with a total scale exceeding RMB 100 billion. Priority support will be given to the following areas: 1) Network infrastructure (new networks); 2) Computing power infrastructure (new computing power); 3) Data infrastructure (new data); 4) Innovation infrastructure (new facilities); and 5) Terminal infrastructure (new terminals). In addition to the preferential‑rate loans offered by partner banks, projects primarily financed through self‑funding by enterprises and public institutions—provided they can achieve substantial scale and significant economic and social impact—will receive interest subsidies in accordance with relevant regulations. Furthermore, data center projects that demonstrably stimulate related industrial chains will also be included within the scope of such subsidy programs.

The State Council has unveiled a landmark package of 24 measures to further open up and attract foreign investment, explicitly calling for greater openness across multiple regions and sectors.
On March 19, the Chinese Government Website publicly released the “Notice of the General Office of the State Council on Issuing the Action Plan for Solidly Advancing High-Level Opening-Up and More Vigorously Attracting and Utilizing Foreign Investment,” calling for stronger policy measures to enhance China’s appeal to foreign investors.
The Plan comprises 24 measures across five key areas, proposing the comprehensive removal of foreign‑investment access restrictions in the manufacturing sector, the continued expansion of market openness in sectors such as telecommunications and healthcare, and the authorization of pilot programs in free trade zones—including those in Beijing, Shanghai, and Guangdong—allowing selected foreign‑invested enterprises to engage in expanded opening‑up initiatives in fields like the development and application of gene‑diagnosis and gene‑therapy technologies. It also calls for broadening market access for foreign financial institutions in the banking and insurance sectors, supporting eligible foreign financial institutions to participate, in accordance with regulations, in domestic bond underwriting, expanding the scope of the Qualified Foreign Limited Partner pilot program, facilitating data flows between foreign‑invested enterprises and their headquarters, and intensifying efforts to align with international high‑standard economic and trade rules through targeted pilot projects.

The National Development and Reform Commission plans to release the first batch of the “List of Demonstration Projects for Green and Low-Carbon Advanced Technologies.”
On March 19, the National Development and Reform Commission’s website published an announcement soliciting public comments on the “List of Demonstration Projects for Advanced Green and Low-Carbon Technologies (First Batch).” The deadline for submitting feedback is March 25.
The “List” comprises a total of 47 projects, primarily including the domestically developed and demonstrative application project for deep-sea floating wind power, the steam‑supply project at the Tianwan Nuclear Power Plant, the geothermal heating demonstration project in Caiyu Town, Daxing District, Beijing, the 100 MWh gravity‑based energy storage demonstration project, the Suzhou virtual integrated smart zero‑carbon power plant project, the advanced grid demonstration project in the Guangdong–Hong Kong–Macao Greater Bay Area, and the second phase of the large‑scale vehicle‑to‑grid interactive virtual power plant construction and operation project, among others.

The State Administration for Market Regulation has issued a document to promote the implementation of the new elevator inspection rules.
On March 18, the website of the State Administration for Market Regulation published the “Notice on Further Strengthening the Implementation of the ‘Rules for Supervisory Inspection and Periodic Inspection of Elevators’ and the ‘Rules for Self-Inspection of Elevators.’”
The Notice clarifies that inspection agencies meeting the requirements of Article 2.2 of the Inspection Rules may carry out self‑inspection of elevators, without imposing any additional restrictions or requiring prior approval; in regions or among entities exempt from special equipment inspection fees, elevator users may conduct self‑inspections provided they satisfy the conditions set forth in the Inspection Rules. For elevators found during inspections to have failed to undergo scheduled inspections upon expiration, a Special Equipment Safety Supervision Order shall be issued; failure to rectify within the prescribed time limit shall be subject to enforcement in accordance with Article 36 of the Measures for the Supervision and Inspection of Special Equipment Safety.

The Ministry of Industry and Information Technology has published a catalog of typical cybersecurity insurance service solutions.
On March 18, the website of the Ministry of Industry and Information Technology published the “Public Notice on the Catalogue of Typical Cybersecurity Insurance Service Solutions,” with the public notice period running until March 25.
This round of public announcements includes a total of 49 proposals, comprising 36 enterprise‑oriented solutions and 13 product‑and‑service‑based solutions. The enterprise‑focused proposals primarily encompass the “Cloud‑Based Worry‑Free” cybersecurity insurance service plan, an industrial supply‑chain cybersecurity insurance service plan, a cybersecurity insurance service plan tailored to emerging converged application scenarios, a cybersecurity insurance service plan for telecommunications and internet enterprises, a cybersecurity insurance service plan for manufacturing offices, and a cybersecurity insurance service plan for connected‑vehicle ecosystems, among others.

The State Administration for Market Regulation and the Directorate-General for Competition of the European Commission held a China–EU competition policy dialogue.
On March 18, the 2024 China–EU Dialogue on Competition Policy and the Dialogue on Fair Competition Review and State Aid Control were held in Beijing.
The two sides exchanged views on developments in antitrust legislation and enforcement, as well as on the latest progress in implementing fair‑competition reviews and state‑aid control regimes, and engaged in an in-depth exchange of opinions on issues of mutual concern, including China–EU cooperation in the field of competition. Meng Yang, Deputy Director‑General of the State Administration for Market Regulation, stated that China will continue to strengthen antitrust oversight and enforcement in key sectors, further advance the implementation of the fair‑competition review system, reinforce the foundational role of competition policy, proactively align with high‑standard international economic and trade rules, and actively foster a favorable environment that ensures fair competition and dynamic development for all market participants. China stands ready to continuously deepen China–EU exchanges and cooperation in the area of competition, promote the expansion of two‑way trade and investment between the two sides, and achieve mutually beneficial outcomes and shared development.

The Center for Medical Device Evaluation of the National Medical Products Administration has issued the Guiding Principles for Registration Review of Usability Engineering for Medical Devices.
Recently, the Center for Device Evaluation of the National Medical Products Administration published the “Notice on the Release of the Guiding Principles for the Registration Review of Usability Engineering for Medical Devices.”
The “Guiding Principles” are intended to guide registration applicants in establishing a medical device usability engineering process and preparing the corresponding registration submission materials, while also standardizing the technical review requirements for medical device usability engineering. These principles set out general requirements for medical device usability engineering and apply to the registration submissions of Class II and Class III medical devices; they do not apply to in vitro diagnostic reagents.

Beijing will provide financial incentives to used-car dealerships based on a percentage of their sales volume.
On March 19, the Beijing Municipal Government website published the “Notice on Implementing Support Policies for Used-Car Dealerships.”
The Notice clarifies that, for enterprises whose used‑car sales revenue exceeds RMB 5 million between November 1, 2023, and October 31, 2024, a financial incentive of 0.5% of their used‑car sales revenue will be granted. The maximum incentive per enterprise is capped at RMB 2 million. Subject to the overall funding budget, the incentive funds will be disbursed on a first‑come, first‑served basis. Eligible enterprises will be ranked according to their online submission time; if an application is not approved, ranking will be determined by the date of resubmission. The total amount of incentive funds will be based on the project’s allocated budget for 2024, and no additional funds will be provided should the total exceed the budgeted amount.

The Hong Kong Legislative Council passed the National Security Legislation Bill by a unanimous vote at its third reading.
On March 19, the Legislative Council of the Hong Kong Special Administrative Region unanimously passed, on third reading, the National Security Legislation Bill, thereby fulfilling the constitutional obligation set forth in Article 23 of the Basic Law.
The main text of the Ordinance consists of nine parts, namely: “Preamble,” “Treason, etc.,” “Rebellion, Incitement to Rebellion and Desertion, as well as Acts with Intent to Incite,” “Offences Relating to State Secrets and Espionage,” “Sabotage Activities Endangering National Security, etc.,” “Foreign Interference Endangering National Security and Organizations Engaged in Activities Endangering National Security,” “Law Enforcement Powers and Legal Procedures Related to the Safeguarding of National Security, etc.,” “Mechanisms for Safeguarding National Security and Relevant Guarantees,” and “Related Amendments.”

The Ministry of Industry and Information Technology plans to issue 14 mandatory national standards.
On March 12, the website of the Ministry of Industry and Information Technology published the “Public Notice Soliciting Comments on 14 Mandatory National Standards, Including ‘Safety Technical Requirements for Special‑Purpose Machine Tools.’”
This batch of mandatory national standards currently under public consultation primarily includes: “Steel Wire Ropes for Mine Hoisting,” “Steel Wire Ropes for Cableways,” “Steel Wire Ropes for Elevators,” “Steel for Reinforced Concrete—Part 1: Hot-Rolled Plain Bars,” “Steel for Reinforced Concrete—Part 2: Hot-Rolled Deformed Bars,” “Cold-Rolled Deformed Bars,” “Single-Phase Plugs and Sockets for Household and Similar Uses—Types, Basic Parameters, and Dimensions,” “Safety Technical Specifications for Extension Socket Outlets for Household and Similar Uses,” and “Explosive Atmospheres—Part 15: Rules for the Design, Selection, and Installation of Electrical Installations.”

The Regulations for the Implementation of the Consumer Rights Protection Law have been officially promulgated, strengthening regulations on online consumption and prepaid‑type transactions.
On March 19, the Chinese Government Website published the Regulations for the Implementation of the Consumer Rights Protection Law of the People’s Republic of China, which will take effect on July 1, 2024.
The Regulations comprise 7 chapters and 53 articles, primarily elaborating on the obligations set forth in the Consumer Rights Protection Law, including safeguarding consumers’ personal and property safety, handling defective products, prohibiting false advertising, requiring clearly marked prices, regulating the use of standard terms, fulfilling quality‑guarantee responsibilities, and protecting consumers’ personal information. With respect to online consumption, the Regulations stipulate that business operators may not employ technical means to compel or indirectly compel consumers to purchase goods or accept services, nor may they, without the consumer’s knowledge, impose different prices or fee structures for the same goods or services under identical transaction conditions. In the context of prepaid consumption, in addition to explicitly addressing guarantees of product quality and refund policies, the Regulations emphasize that when a business operator faces significant operational risks, it must cease accepting further prepayments. Regarding consumer claims, the Regulations clarify that defects in labels, instructions, promotional materials, and the like—provided they do not affect the quality of the goods or services and do not mislead consumers—are not subject to punitive damages.

Taxation
The Ministry of Finance’s latest interpretation: How to strategically plan the next round of fiscal and tax system reform.
On March 16, the journal Qiushi published a signed article by Minister of Finance Lan Fo’an titled “Officely Uphold Confidence, Pursue Practical Action, and Solidly Implement an Active Fiscal Policy.”
Lan Fo’an explained how to strategically plan the next round of fiscal and tax system reform. On the premise of maintaining macro‑level tax burdens and basic tax systems, he outlined efforts to optimize the tax structure, strengthen the local tax system, improve the green taxation framework, and advance reforms of non‑tax revenues. He also proposed refining the fiscal transfer payment system and exploring the establishment of incentive‑and‑constraint mechanisms for transfer payments that promote high‑quality development.
At the same time, efforts to strengthen financial and accounting oversight must be intensified. We will thoroughly implement the “Opinions on Further Strengthening Financial and Accounting Oversight,” advance revisions to the Regulations on Penalties and Disciplinary Measures for Fiscal Violations, the Accounting Law, the Certified Public Accountant Law, and other relevant laws, and raise the cost of violations. We will organize and carry out special campaigns to enhance financial and accounting oversight, impose stricter penalties on illegal and non-compliant conduct, and further uphold fiscal and economic discipline.

Shanghai: Establishing a Risk Management and Control Mechanism for Tax and Fee Collection
The Measures of Shanghai Municipality on the Service and Guarantee of Tax and Fee Collection were publicly released on March 20 and will take effect on April 1, 2024.
The Measures comprise five chapters and thirty-three articles, covering general provisions, tax and fee collection services, safeguards for tax and fee collection, and supervision and administration. The Measures stipulate that tax authorities shall establish a risk‑control mechanism for tax and fee collection, leveraging big‑data analytics to assess taxpayer and payer risks based on information such as tax registration, tax returns, financial accounting, and record‑filing. In response to different types and levels of collection risks, appropriate measures—including reminders, assessments, and inspections—shall be implemented to mitigate such risks. Furthermore, the Measures provide that archives, finance, commerce, taxation, and other relevant departments shall, in accordance with applicable national regulations, promote the electronic aggregation, reimbursement, accounting, and archiving of VAT electronic invoices.

The Supreme People’s Court and the Supreme People’s Procuratorate jointly released eight typical criminal cases involving the lawful punishment of offenses that undermine tax collection and administration.
On March 18, the Supreme People’s Court, together with the Supreme People’s Procuratorate, the Ministry of Public Security, and the State Taxation Administration, held a joint press conference to release typical criminal cases in which the “Two High Courts” imposed lawful penalties for offenses endangering tax collection and administration, thereby strengthening the effective implementation of the “Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases Involving Endangerment of Tax Collection and Administration.”
In Case No. 5, the Supreme People’s Court and the Supreme People’s Procuratorate clarified that where parties issue special VAT invoices to one another or engage in circular invoicing, resulting in a situation where the output tax and input tax cannot be offset against each other and thereby causing losses to state tax revenues, criminal liability shall be pursued under the crime of issuing false special VAT invoices. However, where such practices—such as issuing cross‑invoices or circular invoices—are undertaken for purposes like inflating performance metrics but do not result in any loss of state tax revenue, they shall not be prosecuted as the crime of issuing false special VAT invoices.

LITIGATION & ARBITRATION
The Supreme People’s Court has released the third batch of selected Q&A entries from the Legal Answers Network.
On March 21, the Supreme People’s Court website published a selection of Q&A from the Legal Answers Network (third batch).
This batch of responses to inquiries comprises five cases, addressing issues such as the calculation of interest in private lending, the relationship between underlying claims and the transfer of negotiable instruments, the independent right of action of estate administrators, the criminal liability for operating refined gasoline without a license, and whether the only residential property registered under the judgment debtor’s name may be subject to enforcement. In Question 1, the Supreme People’s Court clarified that where a private loan contract is silent on the terms governing interest and no supplementary agreement can be reached, interest shall be determined by reference to local practices, the parties’ customary trading practices, prevailing market rates, and other relevant factors—covering both the determination of whether interest is payable and the specific rate. If no interest is stipulated but a loan term is agreed upon, claims for interest accrued during the loan period will not be upheld; however, liability for default arising from late repayment, calculated based on the then‑applicable one-year Loan Market Quote Rate, shall be recognized.

The Shanghai Financial Court has released its Top Ten Typical Cases for 2023.
On March 20, the official WeChat account of the Shanghai Financial Court released its list of the Top Ten Typical Cases for 2023.
This batch of typical cases includes the nation’s first settlement in a securities class-action lawsuit, the nation’s first instance in which an insurance institution pursued subrogation against directors, supervisors, and senior executives of a listed company, and the nation’s first dispute over liability for false statements in securities transactions involving market-making on the New Third Board, among others. These cases address issues such as the criteria for determining civil liability arising from material discrepancies in forward-looking information, the attribution of liability to acquiring institutions for improperly establishing settlement accounts for designated merchants, the guarantee function of transfers of equity‑benefit rights, and atypical actively managed trusts.

The Supreme People’s Court has released the fourth batch of typical cases on judicial protection of intellectual property in the seed industry.
Recently, the Supreme People’s Court website published the fourth batch of typical cases on judicial protection of intellectual property in the seed industry.
The 15 typical cases released this time cover civil, administrative, and criminal matters in the field of intellectual property protection for the seed industry. Specifically, there are 13 civil cases involving infringement and contract disputes, one administrative case concerning the grant of plant variety rights, and one criminal case. The varieties at issue command substantial economic value: in eight of these cases, the amount in controversy exceeds one million yuan, with some individual cases reaching several hundred million yuan. In the infringement case involving the maize plant variety “Danyu No. 405,” the court held that when the base for punitive damages is difficult to calculate precisely, it may be determined discretionarily on the basis of the evidence on record. In the infringement case concerning the pepper plant variety “Audrey,” the court relied on a prior agreement between the infringer and the holder of the plant variety right as an important reference for determining the amount of compensation, thereby addressing the challenge of proving damages in infringement actions.

The Beijing Financial Court has released a white paper on its judicial work.
On March 18, the Beijing Financial Court held a press conference titled “Providing High-Quality Financial Judicial Services to Support High-Quality Financial Development,” at which it released the “White Paper on the Trial Work of the Beijing Financial Court.”
The White Paper covers developments in financial adjudication and enforcement, institutional and systemic innovations, and the cultivation of landmark cases. According to the data, from its establishment on March 18, 2021, to the end of February 2024, the Beijing Financial Court has accepted a total of 21,925 financial cases, concluded and enforced 20,228 cases, with a combined value exceeding RMB 800 billion. Concurrently, the White Paper releases eight representative cases, addressing financial‑related legal issues in areas such as insurance company bankruptcy reorganization, false statements in securities by listed companies, disputes over life insurance contracts, disputes over property‑loss insurance contracts, conofficeation of the validity of arbitration agreements, and administrative litigation involving administrative penalties imposed by the China Securities Regulatory Commission and the State Administration of Foreign Exchange.

The Supreme People’s Court and the Ministry of Natural Resources have jointly launched a pilot program for online seizure registration of real estate.
Recently, the Supreme People’s Court and the Ministry of Natural Resources jointly issued the “Notice on Launching a Pilot Program for ‘General-to-General’ Online Seizure Registration of Real Estate.”
The Notice sets out three key tasks: First, to establish an interfacing system that links the Ministry of Natural Resources’ online real estate registration seizure‑registration subsystem with the Supreme People’s Court’s online enforcement information‑query system, thereby creating a “top‑to‑top” online channel for real estate seizure registration; provincial‑level competent authorities are to develop provincial‑level online seizure‑registration systems. Second, to enable online information inquiries: people’s courts at all levels may, through the “top‑to‑top” system, conduct online queries—across provincial boundaries or throughout their own province—of the executed party’s real estate registration information, eliminating the need to visit real estate registration agencies in person and reducing the burden of handling such matters offline in other jurisdictions. Third, to facilitate online seizure registration: people’s courts at all levels shall use identifiers such as the real estate unit code and the judgment document number as linking fields; via the “top‑to‑top” system, they may submit online requests for assistance in carrying out seizure (extension or release) registrations and queued‑seizure registrations. Upon receiving these push‑based requests, the real estate registration authorities shall, in accordance with the law, process the relevant seizure (extension or release) and queued‑seizure registrations and provide feedback on the outcomes through the “top‑to‑top” system.

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