JC Master Legal News Issue 1099

Key Takeaways for This Issue
The China Securities Regulatory Commission has released the list of the first batch of significant money market funds.
In February 2023, to strengthen the regulation of significant money market funds, the China Securities Regulatory Commission, in conjunction with the People’s Bank of China, jointly issued the Interim Provisions on the Regulation of Significant Money Market Funds. These Provisions entered into force on May 16, 2023.
The National Administration of Financial Regulation: It will fully meet the reasonable financing needs of “whitelist” real estate projects.
The China National Administration of Financial Regulation convened a special meeting to further advance the implementation of tasks related to the urban real estate financing coordination mechanism. The meeting noted that most cities have established such mechanisms, formulated “whitelists” of real estate projects, and shared them with commercial banks. In response, commercial banks have actively engaged, effectively matched these projects with available funding, and already extended credit lines and provided new financing, thereby meeting the reasonable financing needs of various real estate projects.
New requirements for data asset management have been issued.
The Ministry of Finance has issued the “Notice on Strengthening Data Asset Management in Administrative and Public Institutions,” outlining eleven specific work requirements.
The Supreme People’s Court has released typical cases of cross-border telecommunications and cyber fraud and related crimes.
The Supreme People’s Court has released a batch of typical cases involving cross-border telecommunications and cyber fraud, as well as related offenses.
Finance & Capital Markets
The China Securities Regulatory Commission has released the list of the first batch of significant money market funds.
In February 2023, to strengthen the regulation of significant money market funds, the China Securities Regulatory Commission (CSRC), in conjunction with the People’s Bank of China, jointly issued the Interim Provisions on the Regulation of Significant Money Market Funds (hereinafter referred to as the “Interim Provisions”), which entered into force on May 16, 2023. In accordance with the relevant requirements of the Interim Provisions, the CSRC recently conducted an assessment and has now designated 13 money market fund products as significant money market funds. At present, the respective fund managers and products have, in compliance with the Interim Provisions, completed the necessary adjustments and preparatory measures.
Going forward, the China Securities Regulatory Commission will continue to carry out the following tasks: first, guide relevant industry institutions to earnestly implement the regulatory requirements set forth in the Interim Provisions, thereby enhancing their capabilities in risk prevention and management as well as in handling crises involving significant money market funds; second, conduct regular assessments of money market funds submitted by fund managers, promptly update the list of significant money market funds, and make such lists publicly available in accordance with applicable regulations; and third, work in coordination with the People’s Bank of China to maintain ongoing risk monitoring and day-to-day supervision of significant money market funds, fostering their safer and more stable operation and effectively safeguarding the legitimate rights and interests of fund unit holders.

The China Securities Regulatory Commission maintains a “zero-tolerance” enforcement stance, focusing on investigating and prosecuting multiple market participants for illegal stock trading.
To thoroughly implement the spirit of the Central Financial Work Conference and comprehensively strengthen financial regulation, while upholding a stringent and robust regulatory approach, the China Securities Regulatory Commission recently mobilized its inspection‑enforcement and day‑to‑day supervisory teams to investigate and prosecute multiple violations—including stock trading—by several employees of China Merchants Securities. A multi‑pronged disciplinary framework has been put in place, drawing on criminal accountability, administrative penalties, administrative regulatory measures, and internal disciplinary actions. First, administrative penalties were imposed on 63 individuals, totaling RMB 81.73 million in fines and confiscations, and a lifetime ban from the securities market was issued to one person. Second, one individual suspected of insider trading was referred to the judicial authorities for prosecution. Third, administrative regulatory measures were applied to 46 persons: three are proposed to be designated as unsuitable candidates; five are subject to regulatory talks; and 38 have received warning letters. Fourth, with respect to China Merchants Securities, which bears responsibility for managing its personnel, the Commission ordered an increase in the frequency of compliance inspections. Additionally, a warning letter was issued to the company’s chairman, and regulatory talks were conducted with two former chief compliance officers. The Commission also urged China Merchants Securities to initiate internal accountability procedures, hold talks with the relevant individuals involved in the violations, and ensure full coverage of accountability measures.
It is a fundamental requirement of the Securities Law that securities practitioners are prohibited from trading stocks. In recent years, the China Securities Regulatory Commission (CSRC) has rigorously cracked down on illegal stock‑trading activities by securities professionals. From 2019 to 2023, a total of 67 cases involving unlawful stock trading by practitioners were investigated and prosecuted, resulting in administrative penalties against 139 individuals, with concerted efforts to establish a long‑term mechanism that deters, prevents, and discourages such violations. Going forward, the CSRC will adhere to systems thinking, draw broader lessons from individual cases, and continue to strengthen institutional oversight, behavioral supervision, functional regulation,穿透式监管 (penetrative supervision), and ongoing monitoring. In coordination with industry associations, it will intensify the following initiatives: First, refine institutional frameworks. The CSRC will formulate a special action plan to strictly enforce the law against illegal stock trading by securities practitioners, reinforce the principal responsibility of institutions, and urge securities offices to bolster internal monitoring, self‑inspection and self‑correction mechanisms, as well as accountability systems. It will also ensure comprehensive compliance management across all staff and implement integrated, vertically managed oversight of all branches and personnel. Meanwhile, each local CSRC bureau will conduct targeted on‑site inspections. Furthermore, rules governing practitioners’ investment activities will be improved, with institutions required to enhance internal controls over investment reporting, review, monitoring, and disciplinary measures, thereby closing existing gaps in both regulatory design and enforcement. Second, strengthen regulatory enforcement. Violations will be addressed promptly upon detection; institutions failing to exercise adequate oversight will face stringent accountability; and violators will be subject to a multi‑pronged disciplinary framework, establishing a “one violation, restricted everywhere” sanctioning regime. Public notifications and warnings regarding misconduct will be intensified, and dedicated remediation campaigns will be launched. Third, continuously purify the industry ecosystem. Adhering to the principle of “combining two approaches,” the CSRC will deepen comprehensive governance of industry culture, urging institutions to steadfastly uphold core values: never crossing red lines, eschewing short‑term profit at all costs, rejecting quick fixes, avoiding detachment from the real economy in favor of speculative practices, and refraining from reckless behavior. Institutions will be encouraged to act with honesty and integrity, pursue profits ethically, maintain prudence and sound judgment, uphold principles while innovating, and operate in full compliance with laws and regulations. Additionally, basic codes of professional conduct and ethical standards for practitioners will be refined, a categorized roster system will be established, and mechanisms for managing professional reputation will be put in place, accelerating the creation of a rigorous environment for regulating practitioners.

The China Securities Regulatory Commission is soliciting public comments on the “No. 4 Rules for the Preparation and Disclosure of Information by Companies Issuing Securities to the Public—Special Provisions on Information Disclosure by Insurance Companies (Draft for Comments).”
To further implement the State Council’s “Opinions on Further Enhancing the Quality of Listed Companies” (Document No. 14 [2020]), and to refine industry-specific information disclosure standards, the China Securities Regulatory Commission has revised “Rule No. 4 on Information Disclosure by Companies Issuing Securities to the Public—Special Provisions on Information Disclosure by Insurance Companies,” and is now soliciting public comments.
This revision, in conjunction with relevant regulations such as “Accounting Standard for Business Enterprises No. 25—Insurance Contracts,” “Accounting Standard for Business Enterprises No. 22—Recognition and Measurement of Financial Instruments,” and the “Regulations on Solvency Supervision for Insurance Companies (II),” adjusts the disclosure requirements for pertinent accounting and operational indicators. Furthermore, drawing on the actual practices of insurance companies in information disclosure, it refines the content of disclosures to enhance their relevance and effectiveness.
The China Securities Regulatory Commission will, based on the feedback received from public consultation, further revise and refine the measures before issuing and implementing them.

The Shanghai Stock Exchange is soliciting public comments on the “Shanghai Stock Exchange Self-Regulatory Guidance No. 14 for Listed Companies—Sustainability Reporting (Trial) (Draft for Comments).”
Recently, under the unified deployment of the China Securities Regulatory Commission, the Shanghai Stock Exchange has finalized the “Shanghai Stock Exchange Self-Regulatory Guidance No. 14 for Listed Companies—Sustainability Reporting (Trial) (Draft for Comments)” (hereinafter referred to as the “Guidance”) and has publicly solicited feedback from the market. The formulation of this Guidance represents an important institutional measure for the SSE to thoroughly implement the strategic arrangements set forth at the 20th National Congress of the Communist Party of China—namely, promoting the transformation and low-carbon development of the economy and society—and to align with the overarching requirements of the Central Financial Work Conference to advance five key areas, including green finance. It also constitutes a concrete step in executing the China Securities Regulatory Commission’s Three-Year Action Plan for Enhancing the Quality of Listed Companies (2022–2025). The Guidance aims to better leverage the capital market’s pivotal role by strengthening sustainability‑related information disclosure, thereby enhancing the quality, investment appeal, and investor returns of listed companies, guiding the allocation of various resources toward sustainable development, and advancing the dual carbon goals while fostering sustainable economic, social, and environmental progress.
In recent years, with the active participation and strong support of all market stakeholders, the Shanghai Stock Exchange has consistently encouraged listed companies to disclose sustainability reports and has continuously explored ways to integrate sustainable development principles into both the investment and financing sides of the market. In 2023, a total of 1,023 listed companies on the Shanghai market disclosed their 2022 corporate social responsibility, ESG, or sustainability reports, achieving a disclosure rate of 47%—both the number of disclosures and the corresponding share reaching new record highs. Among the constituent stocks of the SSE 50 and STAR 50 indices, as well as companies listed simultaneously in China and overseas, the reporting rate approached 100%, while for the SSE 180 index constituents, it exceeded 90%. On the financing side, over the past three years, the Exchange has supported 68 new‑energy and energy‑saving, environmentally friendly enterprises in completing IPOs, raising RMB 116.9 billion; it has also facilitated RMB 97 billion in refinancing for companies operating in low‑carbon, sustainable emerging industries; and it has backed corporate issuances of environmental bonds, asset‑backed securities, low‑carbon transition‑linked bonds, and sustainability‑linked bonds totaling RMB 473.6 billion. On the investment side, the SSE and CSI indices have collectively launched 138 ESG and other sustainability‑focused indices, including 104 equity indices, 31 bond indices, and 3 multi‑asset indices. These indices are tracked by 86 mutual funds, with aggregate assets under management exceeding RMB 100 billion. Furthermore, there are now 43 ESG‑related sustainability ETFs listed on the Shanghai Stock Exchange, managing assets surpassing RMB 60 billion. The CSI ESG rating system has been adopted by more than 100 institutions—including pension funds, public mutual funds, bank wealth‑management products, insurance asset managers, and securities‑office asset managers—for portfolio management, thereby helping to steer investments toward sustainability, long-term value, and rational decision‑making. Collectively, these initiatives and efforts have fostered a robust market ecosystem for sustainable development and have accumulated valuable experience toward establishing a relatively standardized framework for sustainability reporting.
During the drafting of the Guidelines, the SSE adhered to the following overarching principles. First, to reflect Chinese characteristics: grounded in China’s national and local conditions and the realities of its capital market, the Guidelines draw on domestic and international disclosure regimes, listed companies’ disclosure practices, and best practices, while introducing key issues that embody China’s distinctive approach—such as rural revitalization, innovation-driven development, and equal treatment of small and medium-sized enterprises—thereby fully articulating China’s values and priorities in the field of sustainable development. Second, to uphold pragmatism: taking into account the varying stages of development and disclosure capacities of listed companies, the Guidelines strike a balance between mandatory and voluntary disclosure, combine qualitative and quantitative reporting, and establish transition periods and mitigating measures, thereby aligning costs with benefits. Third, to adopt systems thinking: the Guidelines aim to help listed companies establish robust governance mechanisms for sustainability, defining a disclosure framework centered on the core elements of “governance–strategy–management of impacts, risks, and opportunities–metrics and targets,” so as to enhance internal governance and drive high‑quality information disclosure through concrete actions.
Building on the existing regulatory framework, the Guidelines proactively incorporate valuable domestic and international experience and broad consensus, further enriching and refining the requirements for sustainability‑related disclosure. The document comprises six chapters and 58 articles, outlining 20 specific topics.
In terms of regulatory content, first, a framework for sustainability‑related information disclosure has been established. Listed companies are required to analyze and disclose material issues across four core areas—governance, strategy, impact, risk and opportunity management, and metrics and targets—so that investors and other stakeholders can gain a comprehensive understanding of the measures companies have taken to address and manage sustainability‑related impacts, risks, and opportunities. Second, specific topics for environmental, social, and corporate governance (ESG) disclosure have been defined. The environmental disclosure section covers key issues such as climate change mitigation, ecosystem and biodiversity protection, the circular economy, and energy use. The social disclosure section addresses critical matters including rural revitalization, innovation‑driven development, technological ethics, supply‑chain security, and equal treatment of small and medium‑sized enterprises. The corporate governance disclosure section specifically addresses anti‑corruption and anti‑bribery, as well as anti‑unfair competition, guiding listed companies to establish robust systems for managing these risks—including governance frameworks, training programs, and oversight mechanisms—and to mitigate commercial bribery risks through integrated disclosure and governance practices. Third, in light of practical considerations, disclosure standards have been appropriately relaxed. Recognizing that Chinese listed companies currently face relatively weak foundations in areas such as climate‑related disclosure, the Guidelines have moderately lowered the reporting requirements for certain topics—for example, they do not impose mandatory disclosure on upstream and downstream supply‑chain carbon emissions, carbon emissions from associates and joint ventures, or scenario analysis—focusing instead on fostering behavioral change rather than striving for perfect disclosure. This approach aims to ensure a steady start and promote gradual, incremental improvements in corporate disclosure.
In terms of rule implementation, first, a combination of mandatory and voluntary disclosure is adopted. With respect to reporting entities, companies that were continuously included in the SSE 180 Index and the STAR 50 Index during the reporting period, as well as those listed both domestically and internationally, are required to issue a Sustainability Report; other listed companies are encouraged to disclose voluntarily. Regarding disclosure topics, differentiated requirements are set for different issues, tiered according to mandatory, guided, and encouraged disclosure. Second, qualitative and quantitative disclosures are combined. For certain material issues, reporting entities must provide both qualitative and quantitative information to facilitate horizontal and vertical comparisons by investors and stakeholders. At the same time, the rules include mitigating measures for quantitative disclosure: in the first reporting period, if a company finds it difficult to meet quantitative disclosure standards for specific indicators, it may opt for qualitative disclosure and explain the rationale. Third, transitional arrangements and other mitigating measures are provided. To allow sufficient time for listed companies to build capacity and prepare for implementation, those subject to mandatory Sustainability Reporting may submit their first report—covering the 2025 fiscal year—in 2026. In the area of financial analysis, if a reporting entity finds it challenging to quantitatively disclose the impact of sustainability‑related risks and opportunities on its current financial position during the 2025 and 2026 reporting periods, it may limit itself to qualitative disclosure.
During the public consultation period, the Shanghai Stock Exchange will solicit opinions and suggestions from market participants through various channels and, under the guidance of the China Securities Regulatory Commission, further refine its rules based on the feedback received. Moving forward, the Shanghai Stock Exchange will continue to implement the spirit of the 20th National Congress of the Communist Party of China and the Central Financial Work Conference, steadily enhance the investment value of listed companies and improve investor returns, and strengthen and expand its institutional, product, and service frameworks for sustainable development, thereby promoting high-quality development of the capital market.

The Shenzhen Stock Exchange has launched a public consultation on its guidelines for sustainability reporting.
Promote the consolidation of the foundation for high-quality development of listed companies.
On February 8, the Shenzhen Stock Exchange formulated and issued the “Shenzhen Stock Exchange Self-Regulatory Guidance No. 17 for Listed Companies—Sustainability Reporting (Trial) (Draft for Comments)” (hereinafter referred to as the “Sustainability Reporting Guidance”), and opened it to public consultation. This measure is part of the Exchange’s efforts to implement the spirit of the 20th National Congress of the Communist Party of China, the Central Economic Work Conference, and the Central Financial Work Conference; to fully, accurately, and comprehensively apply the new development philosophy; to standardize information disclosure requirements on sustainability for listed companies; to guide listed companies in embracing sustainable development principles; and to enhance the overall quality of listed offices. It will help leverage the capital market’s pivotal role, channel various resources toward sustainable‑development sectors, further foster industrial clusters with strong sustainable investment appeal, and advance the strategic goals of peaking carbon emissions and achieving carbon neutrality. Moreover, it will strengthen listed companies’ governance, competitiveness, innovation capacity, risk resilience, medium‑ and long‑term sustainability, and ability to deliver stable, long‑term returns, thereby increasing their attractiveness to long‑term capital and solidifying the foundation for high‑quality development.
The report to the 20th National Congress of the Communist Party of China stated that high-quality development is the primary task in building a modern socialist country in all respects, and that advancing low-carbon transformation of economic and social development is a crucial step toward achieving this goal. The Central Economic Work Conference emphasized the need to proactively yet prudently advance carbon peaking and carbon neutrality, and to accelerate the development of low-carbon supply chains. Meanwhile, the Central Financial Work Conference underscored the importance of delivering on five major initiatives, including green finance. To better leverage financial services in supporting national strategies, fostering high-quality development, and fulfilling social responsibilities, and to further optimize resource allocation, the China Securities Regulatory Commission, in its Three-Year Action Plan for Enhancing the Quality of Listed Companies (2022–2025), calls for establishing and improving a sustainable‑development information‑disclosure system, formulating a set of disclosure rules tailored to China’s realities, aligned with international trends, and distinctive to China, and clearly defining implementation pathways for phased, systematic rollout.
Under the guidance of the China Securities Regulatory Commission, the Shenzhen Stock Exchange has adhered to a three‑pronged overarching approach and steadily advanced the drafting of the “Sustainability Reporting Guidelines.” First, it has remained grounded in reality, taking into account the developmental stage and disclosure capabilities of Chinese listed companies. By combining mandatory and voluntary disclosures, integrating qualitative and quantitative reporting, and establishing transition periods and mitigating measures, it seeks to align costs with benefits. Second, it has adopted systems thinking, helping listed companies establish robust governance mechanisms for sustainability and articulating a disclosure framework centered on the core elements of “governance—strategy—management of impacts, risks, and opportunities—metrics and targets,” thereby enhancing internal governance and driving high‑quality information disclosure through concrete actions. Third, it has drawn on best practices while reflecting China’s unique characteristics, summarizing existing domestic and international disclosure regimes and exemplary practices, referencing national standards and industry norms, and actively incorporating valuable international experience. Grounded in the realities of China’s capital market, it has introduced specific topics such as rural revitalization and innovation‑driven development, fully highlighting the distinctive features and strengths of Chinese listed companies in the field of sustainable development.
Following the aforementioned drafting approach, the “Sustainability Reporting Guidelines” further enrich and refine the information‑disclosure requirements related to sustainability, building on existing rules. The document comprises six chapters and 58 articles, covering 20 specific topics. It stipulates that listed companies shall analyze and disclose relevant issues across four core areas—governance, strategy, impact, risk and opportunity management, and metrics and targets—so as to enable investors and other stakeholders to gain a comprehensive understanding of the measures taken by the company to address and manage sustainability‑related impacts, risks, and opportunities. In addition, the guidelines set out multiple thematic areas—such as carbon emissions, pollutants, ecosystems and biodiversity, circular‑economy practices, rural revitalization, and supply‑chain security—covering environmental, social, and corporate governance dimensions. With regard to implementation, the guidelines specify that companies continuously included in the SZSE 100 Index or the ChiNext Index during the reporting period, as well as those listed both domestically and internationally, are required to issue a Sustainability Report; other listed companies are encouraged to disclose such reports on a voluntary basis. Furthermore, listed companies are mandated to disclose information on certain key issues using both qualitative and quantitative approaches, facilitating horizontal and vertical comparisons by investors and stakeholders. At the same time, mitigating measures are provided for quantitative disclosure requirements: in the first reporting period, if a company finds it particularly challenging to quantify certain indicators, it may opt for qualitative disclosure and provide an explanation of the rationale. To support listed companies in building capacity and preparing for implementation ahead of time, transitional arrangements and additional relief measures have been put in place. Specifically, companies subject to the mandatory requirement to issue a Sustainability Report may submit their first report for the 2025 fiscal year no later than April 30, 2026. Moreover, during the 2025 and 2026 reporting periods, if a company is unable to quantitatively assess the impact of sustainability‑related risks and opportunities on its current financial position, it may limit its disclosure to a qualitative description only.
For years, the Shenzhen Stock Exchange has adhered to the principle of sustainable development, actively engaging in related initiatives and guiding listed companies to fulfill their social responsibilities, with the aim of fostering a cohort of listed offices that meet low‑carbon, sustainable development standards. The Exchange has successively published the “White Paper on Environmental Information Disclosure by Shenzhen‑Listed Companies” and the “White Paper on Sustainable Development Information Disclosure by Shenzhen‑Listed Companies,” sharing best practices and exemplary cases to enhance listed companies’ awareness of sustainable‑development reporting and encourage them to proactively embrace this approach. In 2022, more than 2,700 Shenzhen‑listed companies disclosed their corporate social responsibility performance in their annual reports; over 1,100 reported on pollution prevention, resource conservation, and ecological protection; and more than 800 issued standalone CSR or ESG reports, further elevating the quality of ESG disclosure. According to United Nations statistics on the total carbon emissions of listed companies across G20 economies, Shenzhen‑listed offices recorded the lowest aggregate emissions, ranking first in low‑carbon performance.
Going forward, the Shenzhen Stock Exchange will continue to follow the unified deployment of the China Securities Regulatory Commission, solicit views and suggestions from market participants through various channels, thoroughly review and incorporate reasonable input, and promptly communicate implementation plans to the market. The Exchange will further refine its sustainable‑development regulatory framework, foster leading companies in the sustainability space, expand its suite of sustainability‑related products, and enhance its sustainability‑focused service offerings, striving to establish itself as a benchmark for sustainable exchanges and contributing to the development of a low‑carbon, sustainable market ecosystem.

Shanghai has issued guiding opinions to enhance the quality and efficiency of intellectual property finance in the city.
On February 6, the Shanghai Intellectual Property Bureau, the Shanghai Municipal Finance Bureau, and three other departments jointly issued the “Guiding Opinions on Enhancing the Quality and Efficiency of Intellectual Property‑Related Financial Services in Shanghai.”
The “Opinions” set forth 10 measures across three key areas, including expanding the supply of intellectual property‑related financial resources, strengthening policy support for IP‑based credit, and bolstering institutional safeguards for IP‑financing initiatives. The document encourages all districts to further enhance their policy support for IP‑financing, leveraging measures such as interest subsidies on IP‑pledge loans, insurance premium subsidies, and guarantee fee subsidies; in particular, interest subsidies for IP‑pledge loans should cover at least 50% of the loan’s interest rate. It also calls on banking institutions to make full use of structural monetary policy tools—such as re‑lending and rediscount facilities for small and micro enterprises, as well as inclusive small‑and‑micro loan support tools—to effectively reduce the funding costs of IP‑pledge loans for both banks and businesses.

The China Securities Regulatory Commission has issued accounting regulatory guidelines, clarifying eight issues, including infrastructure REITs.
On February 8, the China Securities Regulatory Commission issued the “Guidance on the Application of Regulatory Rules—Accounting Category No. 4,” providing clear guidance on accounting issues that have recently drawn significant market attention.
Accounting Standard No. 4 addresses eight specific issues, including financial instruments, revenue, research and development expenditures, and long-term equity investments. Each specific guideline comprises three components: the background of the transaction and the relevant accounting issue; the applicable provisions of the accounting standards; and the opinion on the application of the accounting standards or the regulatory interpretation for the particular issue.

The National Administration of Financial Regulation: It will fully meet the reasonable financing needs of “whitelist” real estate projects.
On the 6th, the China National Administration of Financial Regulation convened a special meeting to further advance the implementation of tasks related to the urban real estate financing coordination mechanism. The meeting noted that most cities have established such mechanisms, formulated “whitelists” of real estate projects and shared them with commercial banks. In response, commercial banks have actively engaged, effectively matched these projects with available funding, and already extended credit lines and provided new financing, thereby meeting the reasonable financing needs of various real estate projects.
The meeting called on all commercial banks to proactively engage with the coordination mechanism, promptly review the submitted list of real estate projects, expedite credit approval, and fully meet legitimate financing needs. Internally, each bank is required to establish dedicated working mechanisms, streamline loan‑approval procedures, refine due‑diligence and liability‑exemption provisions, and guide and urge its branches to strengthen research on real estate projects within their jurisdictions to gain a comprehensive understanding of the situation. For matters requiring coordinated resolution, banks should report them to the coordination mechanism without delay and actively facilitate their resolution.

CSRC: Adopting Multiple Measures to Revitalize the M&A and Restructuring Market
The Listing Department of the China Securities Regulatory Commission held a symposium. The department stated that it will adopt a multi-pronged approach to invigorate the M&A and restructuring market and support the successful implementation of exemplary cases.
Specific measures include: enhancing flexibility in the valuation of restructuring transactions and supporting both parties to determine transaction prices reasonably through market‑based negotiations; requiring performance‑based covenants for shareholder‑funded restructurings that rely on future‑earnings projections, while allowing the parties to other types of restructurings to decide independently whether to include such covenants; exploring a “fast‑track review” process for restructurings involving leading large‑cap companies to facilitate efficient M&A of high‑quality assets by industry leaders; encouraging companies listed on the ChiNext and STAR Markets to acquire high‑quality targets that are either within the same industry or upstream/downstream and exhibit synergies with their core businesses; and supporting absorption‑type mergers between listed companies, including those under different controlling shareholders. At the same time, we will resolutely investigate and prosecute illegal activities such as financial fraud in restructuring transactions and crack down on speculative practices involving “shell companies.”

Commercial & Corporate
National Medical Products Administration: Pilot Program to Optimize the Review and Approval Procedures for Supplementary Drug Applications
On February 7, the National Medical Products Administration issued the “Notice on Issuing the Pilot Work Plan for Reforming and Optimizing the Review and Approval Procedures for Supplementary Drug Applications.”
The Work Plan specifies that the National Medical Products Administration will conduct pilot programs in provincial drug regulatory authorities that are capable and qualified. At this stage, with a focus on chemical drugs, the pilot provincial drug regulatory authorities will, in accordance with the principles of “early intervention, tailored measures for each enterprise, end-to-end guidance, and coordinated review‑and‑approval processes,” provide pre‑submission guidance, verification, testing, and dossier‑preparation services for major drug change applications within their jurisdictions.

The Ministry of Education is soliciting public comments on the Regulations on the Administration of Off-Campus Training.
On February 8, China’s Ministry of Education issued a notice soliciting public comments on the “Regulations on the Administration of Off-Campus Training (Draft for Public Comment),” with the deadline for submitting feedback set for March 8.
The Draft for Public Comment stipulates that any off-campus training activities must obtain the requisite operating license in accordance with the law and meet the legal requirements for establishing a legal entity. Off-campus academic‑subject培训机构 targeting students in compulsory education must be registered as non‑profit legal entities. Kindergarten teachers, primary and secondary school teachers, and educational researchers may not engage in off-campus training activities. Furthermore, such institutions are prohibited from organizing academic‑subject training for compulsory‑education students during national statutory holidays, rest days, or winter and summer vacations. The Draft also specifies that off-campus training providers may not organize or participate in organizing graded examinations or competitions for primary and secondary school students, nor for preschool children aged 3 to 6, and they may not disclose trainees’ academic performance or rankings.

The State Administration for Market Regulation plans not to impose penalties for minor violations of food safety laws.
On February 8, the State Administration for Market Regulation issued the “List of First-Time Violations in Food Safety and Minor Violations Not Subject to Penalties (Draft for Public Comment),” inviting public feedback until March 9.
The State Administration for Market Regulation has summarized nationwide law enforcement practices in the field of food safety, adopting a policy of no penalty for first-time violations and refraining from imposing penalties for minor infractions. In addition, it has released two annexes: the “List of First-Time Food Safety Violations Not Subject to Penalty (Draft for Public Comment)” and the “List of Minor Food Safety Violations Not Subject to Penalty (Draft for Public Comment).”

Three departments: Local authorities must not divert, misappropriate, withhold, or delay subsidies intended for entitled beneficiaries.
To further standardize the management of subsidy funds for entitled beneficiaries, on February 9, the Ministry of Finance, the Ministry of Veterans Affairs, and two other departments revised and issued the Measures for the Administration of Subsidy Funds for Entitled Beneficiaries.
According to the newly revised Measures, subsidies for entitled beneficiaries refer to transfer payments under shared fiscal responsibilities, whereby the central government provides financial assistance to local governments for disbursing allowances and living subsidies to entitled beneficiaries and other eligible persons, as well as preferential allowances to families of conscripts and commendation payments for martyrs. The current implementation period is tentatively set to December 31, 2028. Local authorities are prohibited from using these subsidy funds for administrative expenses, and must not divert, misappropriate, withhold, or delay disbursement of such funds. Furthermore, no administrative fees may be charged to entitled beneficiaries.

The Ministry of Natural Resources has issued the “Overall Plan for Enhancing Digital Governance Capabilities in the Field of Natural Resources.”
The Ministry of Natural Resources has released the “Overall Plan for Enhancing Digital Governance Capabilities in the Field of Natural Resources.”
The “Overall Plan” comprises nine chapters, each focusing on specific measures to refine and implement initiatives related to enhancing digital governance capabilities in the natural resources sector—covering goal‑oriented pathways, the overall architecture, key tasks, and supporting measures. It prioritizes the development of compact, efficient digital infrastructure; the refinement of a comprehensive, full‑cycle data‑element system; the advancement of the intelligence level of the national land‑space basic information platform; the creation of multi‑dimensional digital application scenarios; the strengthening of an all‑round security framework; and the improvement and completion of a standardized regulatory system. The “Overall Plan” stipulates that the Ministry of Natural Resources will, in fulfilling its core responsibilities, emphasize the leveraging, empowering, and leading roles of digitalization, using the integration of information systems as a breakthrough to bolster infrastructure and network‑data security safeguards.

The National Energy Administration has issued the “Key Tasks for Power Safety Supervision in 2024.”
On February 7, the website of the National Energy Administration published the “Notice on Issuing the Key Tasks for Power Safety Supervision in 2024.”
The “Key Tasks” comprise four major areas and 23 specific items, calling for the enhancement of the safety risk management system for the large-scale power grid, the safety supervision system for power construction projects, the safety management system for power equipment, the power emergency response system, the dam safety oversight and management system, the cybersecurity risk management system, and the policy and regulatory framework for power safety oversight. It also proposes launching a three-year campaign to address the root causes of workplace safety issues in the energy and power sectors, conducting special safety inspections of distribution networks, continuing the targeted initiative to improve dam safety at hydropower stations, implementing specialized oversight of construction safety and quality in power‑related projects, and carrying out regional large‑scale blackout emergency drills as well as multi‑scenario integrated emergency response exercises in key areas, among other measures.

The National Development and Reform Commission has issued the Measures for the Administration of Central Cotton Reserves.
On February 7, the National Development and Reform Commission issued Order No. 12, the “Administrative Measures for Central Cotton Reserves,” which will take effect on April 1, 2024.
The Measures comprise nine chapters and 40 articles. The rotation, procurement, and release of central reserve cotton are subject to planned management; no entity or individual may, without authorization, arbitrarily use such cotton, nor may they encroach upon, damage, or misappropriate it. In principle, central reserve cotton that has been stored for approximately five years must be scheduled for rotation. The annual volume of central reserve cotton subject to rotation may be adjusted as appropriate in light of supply-and-demand conditions and market‑regulation needs.

Beijing has unveiled measures to further optimize the business environment for foreign investors.
The General Office of the People’s Government of Beijing Municipality has issued the “Several Measures to Further Optimize the Foreign Investment Environment and Strengthen Efforts to Attract Foreign Investment.”
The “Several Measures” constitute a comprehensive policy package to stabilize foreign investment, comprising eight sections and 26 provisions. The key elements include enhancing the quality of utilized foreign capital, ensuring national treatment for foreign-invested enterprises, further strengthening protection for foreign investors, improving the convenience of investment operations, increasing fiscal and tax support, and refining mechanisms for promoting foreign investment. The measures explicitly stipulate that foreign-invested enterprises shall be guaranteed lawful participation in government procurement activities and supported in equally and lawfully taking part in standard-setting processes. Additionally, pilot programs will explore secure management mechanisms to facilitate cross-border data flows, while providing, in accordance with laws and regulations, convenient cross-border fund‑flow arrangements for foreign-invested enterprises.

New requirements for data asset management have been issued.
The Ministry of Finance has issued the “Notice on Strengthening Data Asset Management in Administrative and Public Institutions,” outlining eleven specific work requirements.
Data assets of administrative and public institutions are data resources held or controlled by such entities at all levels in the course of performing their statutory duties or providing public services, which are expected to generate managerial and service‑related value or yield economic benefits. The Notice requires that all administrative and public institutions establish and improve management measures for data assets, refining management requirements and clarifying operational procedures for key aspects including data asset conofficeation of rights, allocation, utilization, disposal, revenue generation, security, and confidentiality. The Notice further stipulates that revenues derived from the use of data assets by administrative units shall be managed in accordance with relevant provisions on government non‑tax revenue and the centralized treasury collection system. As for revenues generated from the use of data assets by public institutions, specific management measures shall be prescribed by the fiscal authorities at the corresponding level.

Shanghai has issued the “Key Work Points for Strengthening the Development of a New-Era Highly Skilled Workforce in 2024.”
The Shanghai Municipal Human Resources and Social Security Bureau has published the “Notice on Issuing the Key Work Points for Strengthening the Development of a New-Era Highly Skilled Talent Pool in 2024.”
The “Key Work Points” comprise five areas and 18 specific measures, calling for strengthened forecasting of demand in urgently needed and scarce occupations (trades), streamlining and consolidating existing training subsidy policies to enhance the efficiency of subsidy fund utilization, intensifying policy support, implementing enterprise employee training subsidy policies, granting greater autonomy and empowerment to employers in conducting their own assessments, and advancing a system that incorporates skill factors into the distribution of benefits.

The new edition of “Advanced, Energy-Saving, and Entry-Level Energy Efficiency Standards for Key Energy-Consuming Products and Equipment” has been released.
The National Development and Reform Commission has published the “Notice on the Release of the ‘Advanced, Energy-Saving, and Entry-Level Energy Efficiency Standards for Key Energy-Consuming Products and Equipment (2024 Edition)’.”
The Notice clarifies that energy‑using products and equipment are broadly categorized into six major types: industrial equipment, information and communication equipment, transportation equipment, commercial equipment, household appliances, and lighting fixtures. The 2024 edition expands the scope of covered key energy‑using products and equipment by adding 23 new product categories or facilities, thereby achieving near‑universal coverage of such items. It also calls for accelerating the upgrading of energy‑efficiency standards, coordinating efforts to promote replacement, retrofitting, and recycling, vigorously encouraging green and low‑carbon consumption, strengthening implementation and oversight, and reinforcing comprehensive policy support.

The Ministry of Industry and Information Technology has revised the Measures for the Administration of Amateur Radio Stations.
Recently, the website of the Ministry of Industry and Information Technology published the revised Measures for the Administration of Amateur Radio Stations.
The Measures consist of seven chapters and fifty-eight articles, setting forth provisions on the licensing and administration of amateur radio stations, verification of operator technical competence, requirements for station establishment and operation, maintenance of radio wave order, and legal liabilities. The Measures expressly stipulate that amateur radio stations may be used solely for mutual communication, technical research, and self‑training, and may transmit and receive within the amateur service frequency range; they shall not be employed for commercial gain. In response to emergency situations, amateur radio stations may communicate with non‑amateur radio stations, provided that such communications are limited to urgent matters directly related to emergency response. Without prior approval, amateur radio stations shall not, by any means, broadcast or transmit signals intended for public dissemination.

The National Energy Administration has issued the “Basic Rules on Information Disclosure in the Electricity Market.”
The website of the National Energy Administration has published the “Notice on Issuing the Basic Rules for Information Disclosure in the Electricity Market.”
The “Basic Rules” comprise 52 articles, focusing on provisions related to principles and methods of information disclosure, the content of disclosed information, adjustments to disclosed information, confidentiality and archiving of information, as well as supervision and management. The main text specifies the items subject to disclosure, while an annex lists, by category, a total of 130 pieces of information that must be disclosed by six types of disclosing entities: power generation companies, retail electricity suppliers, electricity users, new‑type market participants, grid enterprises, and market‑operation institutions. The rules also introduce new elements such as the retail electricity market, the ancillary services market, agent‑based electricity procurement, and new‑type market participants (including novel energy storage), and further refine requirements regarding the scope, granularity, frequency, and other aspects of disclosure.

The National Intellectual Property Administration has released the third batch of guiding cases on administrative protection of intellectual property, along with interpretations and applications.
The website of the National Intellectual Property Administration has published “Interpretation and Application of the Third Batch of Guiding Cases on Administrative Protection of Intellectual Property (Cases Nos. 9–11).”
“Understanding and Application” analyzes the three guiding cases from two perspectives: the selection process and its guiding significance, as well as an interpretation and explanation of the key issues in each case. With respect to Guiding Case No. 9, “Understanding and Application” holds that administrative adjudication constitutes an important form and substantive component of patent administrative protection, and represents a mechanism for resolving patent infringement disputes that is well-suited to China’s national conditions. It further notes that a request for a declaration of patent invalidity may be accompanied by an application to suspend proceedings in the related patent infringement dispute; however, prolonged suspension of such proceedings may impose adverse consequences on the party against whom the claim is brought. In this case, the matter was concluded through a preliminary dismissal, thereby effectively circumventing the problem of excessively long adjudication periods caused by protracted suspension and achieving efficient administrative resolution of the patent infringement dispute.

The State Council has revised the Measures for the Administration of Emergency Response Plans for Sudden Events.
The Chinese Government Website has published the “Notice on Issuing the Measures for the Administration of Emergency Response Plans for Sudden Incidents.”
Following its revision, the Measures comprise eight chapters and forty-three articles, applying to the planning, drafting, approval, promulgation, filing, training, public awareness‑raising, drills, evaluation, and revision of emergency response plans. The Measures stipulate that organizers or implementing agencies of major events shall, in light of actual circumstances, develop emergency response plans for ensuring the safe conduct of such events, with particular emphasis on defining the organizational command structure, key tasks, safety risks and preventive measures, emergency coordination, monitoring and early warning, information reporting, emergency response procedures, as well as arrangements and routes for the evacuation and relocation of personnel.

The CNIPA plans to revise the “Administrative Review Procedures of the National Intellectual Property Administration.”
The National Intellectual Property Administration has issued a notice soliciting public comments on the “Administrative Review Procedures of the National Intellectual Property Administration (Draft for Comments),” with the deadline for submitting feedback set for March 9.
The Draft Amendment introduces the following key revisions: First, it implements the requirements of institutional reform by refining the scope of cases accepted for administrative reconsideration, ensuring alignment with the adjusted functions resulting from the reform. Second, in light of the latest amendments to the Administrative Reconsideration Law, it makes corresponding adjustments to the Regulations’ provisions on acceptance, adjudication, and decision‑making. Third, in coordination with revisions to intellectual property laws and regulations, it clarifies in the Regulations whether administrative actions taken by our Bureau during the implementation of newly introduced systems are subject to reconsideration. Fourth, drawing on the distinctive features of the National Intellectual Property Administration’s administrative reconsideration work and practical needs, it adds relevant supplementary content.

The State Post Bureau plans to issue the Measures for the Administration of Personal Information Security in Postal and Delivery Services.
The State Post Bureau has published on its website the “Notice on Public Solicitation of Comments on the Measures for the Security Management of Personal Information of Express Delivery Service Users (Draft for Comments),” with a deadline for submitting feedback set for March 2.
The Measures comprise 32 articles, stipulating that, except with the user’s explicit consent, delivery enterprises may retain users’ personal information for no longer than three years from the date of collection; furthermore, when a delivery service user requests access to their personal information related to the use of the delivery service, the enterprise shall promptly provide such information. Delivery enterprises are required to establish internal security management systems, grant frontline staff access to users’ personal information only on a need‑to‑know basis, and conduct information security audits of employees who have left their posts.

The State Council plans to establish a three-year transition period for existing companies to adjust their capital contribution requirements and fully pay up their share capital.
The website of the State Administration for Market Regulation has published the “Regulations of the State Council on Implementing the Registered Capital Registration System under the Company Law of the People’s Republic of China (Draft for Comments),” with a deadline for submitting feedback set for March 5.
The Regulations comprise fifteen articles and set forth provisions governing the registration and management of corporate registered capital, including the explicit implementation of a “3+5” adjustment framework for existing companies, the handling of cases where contribution deadlines or amounts are abnormal, requirements for public disclosure of information, and the standardization of intermediary agencies. The Regulations establish a three-year transition period for existing companies, prescribe the applicable rules for contribution deadlines in newly established companies, mandate that registration authorities enhance the convenience of their services, clarify the criteria and procedures for identifying and addressing significantly abnormal contribution deadlines or amounts, and specify exceptions for certain types of companies, while also setting out detailed requirements for information disclosure.

The State Administration for Market Regulation has called for the improvement of the antitrust compliance risk‑alert mechanism for concentrations of undertakings.
The website of the State Administration for Market Regulation has published the “Notice on Improving the Anti-Monopoly Compliance Risk-Alert Mechanism for Concentrations of Undertakings.”
The Notice outlines three key measures—enriching notification scenarios, strengthening policy guidance, and enhancing data integration—and proposes, building on existing notifications during equity‑change registration and new joint‑venture registration within the business entity registration system, to further expand the scope of such notifications. Specifically, it will provide pop‑up reminders via the National Enterprise Credit Information Publicity System—covering annual report filing—as well as through mobile applications for business establishment and government services—informing operators of their obligation to file notifications of concentrations and of the potential legal liabilities arising from failure to comply with statutory requirements.

The National Health Commission has issued two notices to standardize the filing and management of local and enterprise food safety standards.
The Chinese Government Website has published the “Notice on Further Standardizing the Filing of Local Food Safety Standards” and the “Notice on Further Optimizing the Management of Filing for Food Enterprise Standards.”
The “Work on Filing Local Standards” clarifies that the scope of filing for local food safety standards encompasses product standards for regionally distinctive foods, production and operation specifications for such foods, and test‑method standards for indicators in regionally distinctive food standards that cannot be assessed using existing national food safety standards. It explicitly excludes standards for special‑purpose foods, standards governing the use and quality specifications of food additives, standards for food‑related products, standards on maximum residue limits and testing methods for pesticides and veterinary drugs, as well as methods for identifying illegal additives and detecting adulteration or falsification. The “Work on Filing Enterprise Standards” calls for improving institutional mechanisms, streamlining filing procedures and workflows, strengthening post‑filing guidance, and reinforcing the role of enterprise standards in ensuring food safety and promoting development.

The Ministry of Industry and Information Technology has announced the list of 2023 industrial internet pilot demonstration projects.
The website of the Ministry of Industry and Information Technology has published the “Public Notice on the List of 2023 Industrial Internet Pilot Demonstration Projects,” with the public notice period running until February 18.
The “List” comprises a total of 24 pilot and demonstration projects across seven categories: new technologies, factories, carriers, industrial parks, networks, platforms, and security. Among these, the Industrial Internet + Large Models category includes seven projects, primarily encompassing enterprise knowledge management systems and intelligent production‑operation management systems based on industrial large models, the COSMOPlat Tianzhi industrial large‑scale innovation application, an intelligent efficiency center powered by industrial large models, and AI‑driven inspection and identification production lines.

The Ministry of Natural Resources has issued the “Measures for the Survey and Assessment of the Level of Mineral Resource Development and Utilization.”
The website of the Ministry of Natural Resources has published the “Notice on Issuing the Measures for the Survey and Assessment of the Level of Mineral Resource Development and Utilization (Trial).”
The Measures consist of fifteen articles, stipulating that the survey and assessment shall be conducted annually, based on the previous year’s data in the mineral rights holder’s exploration and mining information management system. The improvement in a mine’s “three rates” is assessed using the range‑standardization method, with the increase in these three rates serving as the baseline data. A weighted average is then calculated according to assigned weights to produce an assessment score, which accounts for 80% of the total survey‑assessment score.

Nine departments have put forward 18 measures to support the development of trade cooperation in the new-energy vehicle sector.
The Ministry of Commerce website has released the “Opinions on Supporting the Healthy Development of Trade Cooperation in New Energy Vehicles,” which sets forth a total of 18 measures across seven key areas.
The Opinions propose streamlining procedures for export‑related processes involving new‑energy vehicles and power batteries, formulating and issuing technical standards for the containerized transport of passenger cars, and promptly advancing technical solutions for the rail transport of power batteries. They also encourage banking institutions to provide domestic and international supply‑chain financing services tailored to both upstream and downstream sectors of the new‑energy vehicle industry; to offer export credit insurance with appropriately calibrated risk‑tolerance thresholds for industries such as new‑energy vehicles and power batteries; and to support new‑energy vehicle manufacturers and related enterprises in participating in higher‑level pilot programs for trade and investment facilitation. Furthermore, the document calls for promoting the harmonization and alignment of domestic and international standards in areas including new‑energy vehicles, charging infrastructure, and power batteries, thereby helping enterprises proactively address foreign trade‑restriction measures.

Taxation
The Hengqin Cooperation Zone will enter closed‑border operation at 00:00 on March 1, with a number of tax policies coming into effect simultaneously.
The Executive Committee of the Hengqin Guangdong–Macao In-Depth Cooperation Zone and the Hengqin Guangdong–Macao In-Depth Cooperation Zone Working Office of the People’s Government of Guangdong Province have jointly issued the “Notice on the Commencement of Closed-Port Operations in the Hengqin Guangdong–Macao In-Depth Cooperation Zone,” outlining arrangements for the zone’s closure.
The Notice clarifies that, effective 00:00 on March 1, 2024, the Hengqin Guangdong–Macao In-Depth Cooperation Zone will officially commence sealed‑off operations. A series of documents, including Cai Guan Shui [2024] No. 1, Cai Guan Shui [2024] No. 2, Cai Shui [2024] No. 1, General Administration of Customs Announcement No. 202 of 2023, General Administration of Customs Announcement No. 4 of 2024, General Administration of Customs Announcement No. 10 of 2024, and General Administration of Customs Announcement No. 18 of 2024, shall take effect from the date of the commencement of sealed‑off operations.

Implement tax incentives for energy conservation and environmental protection to advance the Xiongan New Area’s development as a model green city.
On February 8, the National Development and Reform Commission’s website published the “Opinions of the National Development and Reform Commission and the People’s Government of Hebei Province on Promoting the Construction of Xiongan New Area as a Model for Green Development,” which sets forth twenty-two specific requirements.
The Opinions support Xiongan New Area in taking on research institutes and innovation platforms that have been relocated from Beijing and are conducive to green development. They encourage key enterprises and research institutions to collaborate on tackling critical technologies and developing priority equipment in key areas of green city construction, such as aerospace information, vehicle–infrastructure coordination, and green buildings. The Opinions also call for the refinement of the policy framework, focusing on environmental infrastructure development, the growth of green and low‑carbon industries, and the efficient and intensive use of resources, while closely aligning with the realities of Xiongan New Area to strengthen policies that support green development. This includes implementing tax incentives related to energy conservation and environmental protection, as well as tiered pricing mechanisms for residential electricity, gas, and water, and a dynamic adjustment mechanism for sewage treatment fees.

NDRC: Actively yet prudently advance reforms in key areas such as fiscal and tax systems, and study ways to improve the local tax system.
The State Council Information Office held a regular policy briefing on fostering a first-class business environment that is market-oriented, law-based, and internationally competitive. Xiao Weiming, Deputy Secretary-General of the National Development and Reform Commission, provided an interpretation on how to advance the implementation of measures to accelerate the development of a unified national market.
Xiao Weiming stated that, going forward, the National Development and Reform Commission will work with relevant parties to fully implement the spirit of the Central Economic Work Conference and the State Council Executive Meeting. On the one hand, it will further refine the institutional frameworks and rules that support the development of a unified national market, and proactively yet prudently advance reforms in key areas such as fiscal and tax systems and statistical mechanisms, including studying ways to improve the local tax system and clarify the division of powers and expenditure responsibilities. On the other hand, it will carry out in-depth rectification of prominent issues in priority sectors, continuously publicize typical cases, and leverage their deterrent effect. By achieving new progress in building a unified national market, it will foster a favorable business environment for all types of market entities to invest and thrive.

LITIGATION & ARBITRATION
The Supreme People’s Court has released typical cases of cross-border telecommunications and cyber fraud and related crimes.
The Supreme People’s Court has released a batch of typical cases involving cross-border telecommunications and cyber fraud, as well as related offenses.
This batch of typical cases comprises eight instances. It demonstrates a resolute and stringent legal crackdown on ringleaders and core members of criminal groups, as well as on those who provide payment‑settlement assistance and facilitate the transfer of illicit proceeds for such groups. Moreover, it undertakes end‑to‑end prosecution of upstream offenses—such as organizing or recruiting individuals to smuggle across borders for overseas criminal syndicates, or recklessly selling citizens’ personal information—to create conditions that enable telecom and online fraud, thereby severing the channels through which overseas fraud rings are supplied with funds and resources. At the same time, the Supreme People’s Court has used the cases of defendants Lin Moucheng and Jiang Moujian for illegally crossing national (border) lines, and defendant Gao Mou for fraud, to warn the public to remain vigilant against false recruitment offers promising “high salaries” abroad.

Supreme People’s Procuratorate: Conduct Public Interest Litigation in the Field of Work Safety with Precision and Standardization
Recently, the Eighth Procuratorial Office of the Supreme People’s Procuratorate issued the “Notice on Fully Leveraging the Public Interest Litigation Functions of the Procuratorial Organs to Urge the Prevention and Resolution of Occupational Safety Risks and Hazards.”
The Notice clarifies the key areas of oversight, calling for a thorough assessment—tailored to local conditions—of priority sectors and domains, including gas safety, fire safety, hazardous chemicals, flammable and explosive materials, construction, transportation, mining, and special‑purpose equipment. It directs attention to “nine small venues” such as small shops, as well as mixed‑use facilities that integrate multiple functions like catering, lodging, and entertainment; and to high‑occupancy venues—including hotels, restaurants, public entertainment spaces, and large commercial complexes—where potential risks to production safety may arise from equipment malfunctions, illegal or non‑compliant practices, and deficiencies in safety management. The notice mandates focused rectification of prominent issues, such as unauthorized or non‑compliant construction and operations, inadequate emergency evacuation conditions, and the unlawful installation of security grilles and advertising signs. It also specifies key supervisory priorities and criteria for identifying major accident hazards, establishes an inventory of production‑safety risk factors, and requires systematic, benchmark‑based inspections and investigations to effectively prevent and mitigate safety risks.

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