JC Master Legal News Issue 1080

Key Takeaways for This Issue

China Securities Finance Corporation: Expanding and Increasing the Capacity of the Bond Financing Support Tool for Private Enterprises
On the 13th, China Securities Finance Corporation stated that, in the next phase, it will, in accordance with the unified arrangements of the China Securities Regulatory Commission, strengthen coordination with local securities regulatory authorities, stock exchanges, regional guarantee institutions, and market participants, further enhance credit protection measures, and more effectively leverage its support tools. The company will strive to provide guarantees wherever possible, facilitate the implementation of additional “central–local cooperation for credit enhancement” projects, and expand and increase the scale of bond financing support instruments for private enterprises.
The Ministry of Housing and Urban–Rural Development has strengthened the management of qualification approval for construction enterprises.
On September 13, the website of the Ministry of Housing and Urban–Rural Development published the “Notice on Further Strengthening the Administration of Qualification Approval for Construction Enterprises.”
The Fourth Belt and Road Tax Administration Cooperation Forum opened in Georgia.
On the afternoon of September 11, Beijing time, the Fourth Belt and Road Tax Administration Cooperation Forum opened in Tbilisi, the capital of Georgia. More than 300 participants attended, including heads of tax authorities from 32 countries and regions, representatives from 10 international organizations such as the United Nations and the International Monetary Fund, and delegates from several multinational enterprises.
The Supreme People’s Procuratorate has released the 48th batch of guiding cases.
The Supreme People’s Procuratorate recently released the 48th batch of guiding cases, themed “Comprehensive Prosecutorial Protection of Intellectual Property.”
Finance & Capital Markets
Director of China’s National Administration of Financial Regulation: Intensify Efforts to Crack Down on Illegal Financial Activities
On the 15th in Beijing, Li Yunze, Director of China’s National Administration of Financial Regulation, stated that efforts to crack down on illegal financial activities will be stepped up. He also revealed that, in the near future, a special “100-day campaign” will be launched in collaboration with relevant authorities to combat illegal fundraising.
On that day, the National Administration of Financial Regulation, the People’s Bank of China, the China Securities Regulatory Commission, and the Cyberspace Administration of China jointly launched the 2023 “Financial Consumer Rights Protection Education and Public Awareness Month” campaign, Li Yunze stated at the launch ceremony.
According to the Plan for Reform of Party and State Institutions, the National Administration of Financial Regulation, as an agency directly under the State Council, is responsible for the unified regulation of the financial sector, excluding the securities industry. Li Yunze stated that this round of reform places the protection of financial consumers’ rights and interests at the forefront, assigning the National Administration of Financial Regulation the crucial responsibility of coordinating and overseeing such protection, thereby fully demonstrating the CPC Central Committee’s high regard for consumer protection work.
With regard to how to effectively serve as a steadfast defender of financial consumers’ legitimate rights and interests, Li Yunze outlined work in five key areas. First, he emphasized the need to accelerate the improvement of the suitability management system—by refining the information disclosure framework and establishing standardized operating procedures for the suitability of various financial products and services—to ensure that appropriate products are sold through appropriate channels to suitable customers.
Second, we will implement tiered and categorized approaches to efficiently handle complaints. By applying the “Fengqiao Experience” and the “Pujiang Experience” of the new era, we will guide the financial sector to carry out consumer protection work with genuine care, officely hold financial institutions accountable for their primary responsibilities, and accelerate the development of a diversified dispute-resolution system, ensuring that the public’s legitimate concerns are promptly addressed and appropriately resolved.
Third, we will address both symptoms and root causes to resolve pressing conflicts. By focusing on key areas and weak links that have drawn strong public concern, we will rectify prominent problems, shore up institutional gaps, and establish and improve long-term mechanisms for consumer protection.
Fourth, we will adopt a multi-pronged approach to strengthen financial education and public awareness. We will organize a wide range of financial literacy campaigns, using methods that resonate with the public to help consumers learn about finance, understand financial products and services, develop trust in the financial system, and make informed financial decisions, thereby continuously enhancing their ability to safeguard their rights and interests.
Fifth, we will intensify efforts to crack down on illegal financial activities. In the near term, we will join forces with relevant authorities to launch a 100-day special campaign against illegal fundraising, rigorously investigate and prosecute a number of high-profile cases, and prudently address a range of potential risks, thereby effectively safeguarding the public’s financial well-being.

What benefits will the central bank’s reserve requirement ratio cut bring?
It is expected to release over RMB 500 billion in medium- and long-term liquidity.
On September 14, the People’s Bank of China announced that, effective September 15, it would lower the reserve requirement ratio for financial institutions by 0.25 percentage points (excluding those already subject to a 5% reserve requirement).
This marks the second reserve requirement ratio cut this year, following the one in March. The magnitude of this reduction is consistent with the previous cut. Following this adjustment, the weighted average reserve requirement ratio for financial institutions stands at approximately 7.4%.
So-called reserve requirement ratio cuts involve lowering the proportion of deposit reserves that financial institutions are required to hold with the central bank relative to their total deposits, thereby increasing the funds banks can freely deploy.
Dong Ximiao, chief researcher at China Merchants Bank Financial Services, told China News Finance that the reserve requirement ratio cut is expected to inject more than RMB 500 billion in medium- and long-term liquidity into the banking system.
At this juncture, the RRR cut has come earlier than expected.
The central bank stated that, at present, China’s economy continues to recover, with endogenous growth momentum strengthening and social expectations steadily improving.
Against this backdrop, some analysts had anticipated that, as a highly signal‑bearing policy tool, the second reserve requirement ratio cut of the year would likely occur in the fourth quarter. However, following the central bank’s announcement, this RRR cut was implemented earlier than expected.
“The RRR cut is both necessary and significant,” says Dong Ximiao. He notes that, at a critical juncture when China’s economy is transitioning into a phase of sustained recovery, the central bank’s decision to implement another across-the-board RRR cut—following two interest-rate cuts and comprehensive reforms to housing‑credit policies—underscores a prudent monetary policy that is more resolute and effective, carefully safeguarding market liquidity.
Yang Delong, chief economist at Qianhai Open Source Fund, emphasized that the RRR cut can further send a strong policy signal to the market, demonstrating the central bank’s determination and capability to deploy a wide array of policy tools to support the stabilization and recovery of the real economy, thereby bolstering market confidence and expectations and reversing the sentiment of market participants.
Positive for multiple sectors, including real estate and the stock market.
Beyond boosting confidence, experts believe this RRR cut will deliver tangible benefits across multiple sectors, including real estate, banking, and the stock market.
Chen Wenjing, Director of Market Research at the China Index Academy, stated that the reduction in the reserve requirement ratio has injected more long-term liquidity into the market, boosting overall liquidity, helping to lower funding costs, and supporting the recovery of the macroeconomy.
Regarding the real estate sector, Chen Wenjing believes that a stable and improving macroeconomic environment will help bolster market expectations, while also enabling more robust support for the reasonable funding needs of both homebuyers and developers.
For banks, Dong Ximiao stated that the RRR cut will lower banks’ capital costs, alleviate pressure on their net interest margins and profits stemming from declining interest rates on existing mortgage loans, and help sustain fee reductions and profit concessions to the real economy, thereby contributing to a steady decline in financing costs for businesses. It is estimated that this RRR cut will reduce banks’ funding costs by 7 to 8 billion yuan annually.
Moreover, historical data suggest that RRR cuts also help bolster the stock market. Yang Delong noted that the central bank’s RRR reduction is conducive to stabilizing and reviving equity markets. Overall, August’s financial data featured numerous bright spots and showed marked improvement compared with July, providing a crucial foundation for the gradual stabilization and recovery of the capital markets.

China Securities Finance Corporation: Expanding and Increasing the Capacity of the Bond Financing Support Tool for Private Enterprises
China Securities Finance Corporation (hereinafter referred to as CSFC) stated on the 13th that, in the next phase, it will, in accordance with the unified arrangements of the China Securities Regulatory Commission, strengthen coordination with local securities regulatory authorities, stock exchanges, regional guarantee institutions, and market participants, further enhance credit‑protection measures, and more effectively leverage its support tools. It will strive to provide guarantees wherever possible, facilitate the implementation of additional “central‑local cooperation for credit enhancement” projects, expand and increase the scale of bond‑financing support instruments for private enterprises, and work in concert to foster a favorable market environment that promotes the growth and development of the private sector.
On the 13th, China Securities Finance Corporation convened a symposium on credit protection services for bond financing by private enterprises. The company disclosed relevant information on the same day.
At the meeting, China Securities Finance Corporation outlined its measures to enhance credit support for private‑enterprise bond financing and provided an update on the progress of its credit‑protection business. Since 2018, with the backing of the People’s Bank of China’s relending facilities, China Securities Finance has vigorously supported private enterprises in issuing bonds by establishing credit‑protection instruments, offering such protection for a total of 42 bonds issued by 34 private offices across diverse sectors, including construction machinery, new‑energy vehicles, and the platform economy, thereby facilitating bond financing exceeding RMB 33 billion.
Furthermore, since November last year, in order to send a strong policy signal of coordinated support from both central and local authorities for the financing of private real estate developers, China Securities Finance Corporation has actively brought in local guarantee institutions as co‑originators and proactively expanded the scale and proportion of its support tools. Through a “central‑local cooperation–credit enhancement” model, it has helped eligible private developers gradually restore their access to financing, providing a total of RMB 2.442 billion in credit protection to six property offices and facilitating bond financing totaling RMB 5.53 billion.
The meeting featured a thorough exchange of views on supporting bond financing for private enterprises and heard recommendations from representatives of participating private offices and market institutions. All participating private companies noted that the China Securities Finance Corporation’s credit enhancement services for private‑enterprise bond issuances constitute an important “credit endorsement,” helping to convey positive policy signals and bolster market confidence. The attending offices also put forward suggestions for further refining the credit protection mechanism.
An official from a relevant department of the China Securities Regulatory Commission stated that the private sector is an indispensable driving force behind China’s economic and social development and has played a vital role in advancing high-quality economic growth. It is imperative to unwaveringly support and facilitate bond financing for private enterprises, fully leverage the bond market’s strengths of openness, transparency, and strong expectation‑guidance, continuously deepen mechanisms for enhancing credit support for private‑enterprise bond issuance, ensure the sustained and systematic implementation of the “central–local cooperation” credit‑enhancement initiative for private‑enterprise bonds, and further strengthen support for private‑enterprise bond financing.

People’s Bank of China: At the end of the second quarter, the total assets of China’s financial institutions stood at RMB 449.21 trillion.
Preliminary statistics show that, as of the end of the second quarter of 2023, the total assets of China’s financial institutions amounted to RMB 449.21 trillion, up 10.3% year on year. Specifically, banking institutions held total assets of RMB 406.25 trillion, an increase of 10.5% year on year; securities offices reported total assets of RMB 13.76 trillion, up 5% year on year; and insurance companies recorded total assets of RMB 29.2 trillion, a rise of 9.6% year on year.
Financial institutions’ liabilities totaled RMB 410.48 trillion, up 10.6% year on year. Specifically, banking institutions’ liabilities stood at RMB 373.63 trillion, an increase of 10.8%; securities offices’ liabilities reached RMB 10.45 trillion, up 4.3%; and insurance companies’ liabilities amounted to RMB 26.39 trillion, a rise of 11.2%.

People’s Bank of China: In August, RMB loans increased by 1.36 trillion yuan, up 86.8 billion yuan year on year.
On the 11th, the People’s Bank of China released its financial statistics report for August 2023, with the following details:
I. Broad money grew by 10.6%
At the end of August, the broad money supply (M2) stood at RMB 286.93 trillion, up 10.6% year on year, with growth rates 0.1 and 1.6 percentage points lower than at the end of the previous month and the same period last year, respectively. The narrow money supply (M1) totaled RMB 67.96 trillion, up 2.2% year on year, with growth rates 0.1 and 3.9 percentage points lower than at the end of the previous month and the same period last year, respectively. Currency in circulation (M0) amounted to RMB 10.65 trillion, up 9.5% year on year. Net cash injected into the economy during the month was RMB 38.6 billion.
II. In the first eight months, RMB loans increased by 17.44 trillion yuan.
At the end of August, the outstanding balance of loans in both local and foreign currencies stood at RMB 237.23 trillion, up 10.5% year on year. The outstanding balance of RMB-denominated loans was RMB 232.28 trillion, an increase of 11.1% year on year; the growth rate was unchanged from the end of the previous month and 0.1 percentage point higher than the same period last year.
In the first eight months, RMB loans increased by 17.44 trillion yuan, up 1.76 trillion yuan year on year. In August, RMB loans rose by 1.36 trillion yuan, an increase of 86.8 billion yuan compared with the same period last year. By sector, household loans grew by 392.2 billion yuan, with short-term loans up 232.0 billion yuan and medium- and long-term loans up 160.2 billion yuan; corporate and institutional loans expanded by 948.8 billion yuan, of which short-term loans declined by 40.1 billion yuan, medium- and long-term loans increased by 644.4 billion yuan, and bill financing rose by 347.2 billion yuan; loans from non-bank financial institutions fell by 35.8 billion yuan.
At the end of August, the outstanding balance of foreign-currency loans stood at USD 689 billion, down 16.7% year on year. In the first eight months, foreign-currency loans declined by USD 52.6 billion, a smaller year-on-year decrease of USD 33.3 billion. In August alone, foreign-currency loans fell by USD 12.5 billion, with the year-on-year decline narrowing by USD 22.2 billion.
III. In the first eight months, RMB deposits increased by 20.24 trillion yuan.
At the end of August, the balance of deposits in both local and foreign currencies stood at RMB 284.47 trillion, up 10% year on year. The balance of RMB deposits was RMB 278.76 trillion, up 10.5% year on year; the growth rate was unchanged from the end of the previous month and 0.8 percentage points lower than the same period last year.
In the first eight months, RMB deposits increased by 20.24 trillion yuan, up 115.8 billion yuan year on year. In August, RMB deposits rose by 1.26 trillion yuan, a year-on-year increase that was 13.2 billion yuan smaller. Specifically, household deposits grew by 787.7 billion yuan, non-financial corporate deposits increased by 889 billion yuan, fiscal deposits declined by 8.8 billion yuan, and deposits held by non-bank financial institutions fell by 732.2 billion yuan.
At the end of August, foreign-currency deposits totaled USD 795.4 billion, down 12.7% year on year. Over the first eight months, foreign-currency deposits declined by USD 58.5 billion, a smaller year-on-year drop of USD 27.2 billion. In August alone, foreign-currency deposits fell by USD 26.4 billion, with the year-on-year decline narrowing by USD 16.1 billion.
IV. In August, the monthly weighted average rate for interbank RMB lending was 1.71%, and the monthly weighted average rate for repurchase agreements with collateral was 1.76%.
In August, the interbank RMB market recorded total transactions of 214 trillion yuan across lending, cash bond trading, and repos, with an average daily turnover of 9.3 trillion yuan—up 8% year on year. Specifically, average daily interbank lending fell 24.9% year on year, while average daily cash bond trading rose 8.4% and pledged repo turnover increased 11.7% year on year.
In August, the weighted average rate for interbank lending was 1.71%, up 0.22 and 0.48 percentage points from the previous month and the same period last year, respectively. The weighted average rate for repurchase agreements with collateral was 1.76%, up 0.23 and 0.52 percentage points from the previous month and the same period last year, respectively.
V. In August, the amount of cross-border RMB settlement under the current account totaled RMB 1.3517 trillion, while the amount of cross-border RMB settlement for direct investment reached RMB 714.1 billion.
In August, the amount of cross-border RMB settlement under the current account totaled RMB 1.3517 trillion, with RMB 1.0462 trillion in goods trade and RMB 305.5 billion in services trade and other current‑account items. Meanwhile, the amount of cross-border RMB settlement for direct investment reached RMB 714.1 billion, comprising RMB 275.9 billion in outbound direct investment and RMB 438.2 billion in inbound foreign direct investment.

The China Securities Regulatory Commission plans to amend two documents to ensure the smooth and orderly implementation of the transfer of responsibilities related to corporate bonds.
The China Securities Regulatory Commission announced that, in order to ensure the smooth and orderly implementation of the transfer of responsibilities related to corporate bonds, it has recently revised the Measures for the Administration of the Issuance and Trading of Corporate Bonds (hereinafter referred to as the “Measures”) and the Guidelines on the Content and Format of Information Disclosure by Companies Issuing Securities Publicly No. 24—Application Documents for the Public Issuance of Corporate Bonds (hereinafter referred to as “Guideline No. 24”). The revised documents are now being made public for public comment.
According to the briefing, this revision adheres to market‑based and rule‑of‑law principles, prioritizing institutional and regulatory frameworks. It clarifies that corporate bonds are subject to higher‑level laws such as the Securities Law, and seeks to establish a unified regulatory framework for corporate bonds, guided by four key principles: first, placing stability at the forefront; second, strengthening the institutional foundation; third, enhancing the effective functioning of the market; and fourth, safeguarding the market ecosystem.
Among them, the revisions to the Administrative Measures cover five key areas: First, in line with relevant reform directives, corporate bonds have been brought within the scope of the Measures to promote coordinated development. Second, requirements for preventing and combating fraud have been strengthened, with issuers’ obligations as primary information-disclosure entities reinforced, and the mechanisms for on-site inspections conducted by the China Securities Regulatory Commission, its local branches, and stock exchanges further refined. Third, oversight of the use of raised funds has been tightened, with additional enhancements to the disclosure requirements pertaining to such funds. Fourth, regulatory requirements for non‑market‑based offerings have been strengthened, explicitly stipulating that controlling shareholders and actual controllers of issuers may not participate in such offerings. Fifth, in accordance with applicable provisions, cases in which lead underwriters, securities service institutions, or their relevant personnel are subject to formal investigations will no longer be grounds for suspending the review and registration process.
Guideline No. 24 draws on current practices in corporate bond management, with revisions focusing on three key areas: First, it strengthens compliance requirements for project‑financing initiatives; when bond proceeds are allocated to fixed‑asset investment projects, issuers must submit relevant legal and regulatory documents, including land use permits, environmental impact assessment approvals, and planning approvals. Second, for bonds whose proceeds are directed toward fixed‑asset investments, issuers are required to provide a special opinion issued by the development and reform authorities at or above the provincial level. Third, it reinforces the “gatekeeper” role of accountants by stipulating that certain bond issuers must furnish an asset inventory for the most recent year, along with supporting explanatory documentation, prepared by their auditors.

Effective today, the reserve requirement ratio for financial institutions will be lowered by 0.25 percentage points.
On September 14, the People’s Bank of China issued an announcement stating that it has decided to lower the reserve requirement ratio for financial institutions by 0.25 percentage points effective September 15, 2023, excluding those institutions already subject to a 5% reserve requirement ratio. Following this reduction, the weighted average reserve requirement ratio for financial institutions will be approximately 7.4%.
The market had anticipated this RRR cut. Wang Qing, Chief Macro Analyst at Orient Securities, noted that, driven by a significant acceleration in credit issuance and the ongoing peak in special bond issuance this year, market interest rates have risen sharply since September. In particular, the yield to maturity on one-year interbank certificates of deposit issued by AAA‑rated commercial banks has climbed close to the MLF (Medium-term Lending Facility) policy rate, while the DR007— the weighted average rate of 7‑day repurchase agreements among depository institutions in the interbank market—has remained persistently above the short‑term policy rate. This indicates tightening liquidity in the banking system, making it necessary to implement measures such as an RRR cut to replenish liquidity, ensure adequate but not excessive funding, and thereby support banks in continuing to expand credit lending.
Wang Qing believes that the RRR cut sends a strong signal of stepped-up counter-cyclical policy adjustments, helping to guide market expectations, bolster confidence, and further consolidate the foundations for the economy’s steady recovery and upward trajectory.
In the view of Wen Bin, Chief Economist at China Minsheng Bank, the second half of the year will see a substantial volume of MLF maturities—totaling RMB 2.8 trillion from August to December. To ensure reasonably ample market liquidity and reduce financial institutions’ funding costs, there is a need to replace MLF with RRR cuts. Moreover, against the backdrop of two interest-rate cuts this year, the reduction in the Loan Prime Rate (LPR), and the implementation of lower interest rates on existing mortgage loans, banks’ net interest margins are likely to face further pressure. Accordingly, RRR cuts are needed to optimize banks’ funding structures, lower funding costs, bolster operational resilience and risk‑resilience, and create room for them to continue reducing financing costs for the real economy.
“In addition, as local governments advance the implementation of a comprehensive plan to resolve their implicit debt, the short-term approach will focus on debt swaps, extending maturities, and lowering financing rates. As these debt‑resolution measures gain traction, implicit liabilities will become more transparent, necessitating a supportive, accommodative financial environment to reduce borrowing costs,” Wen Bin added.
The industry generally expects that, following this RRR cut, monetary and credit growth will remain steady and relatively robust. Wang Qing forecasts that, driven by the implementation of this RRR reduction, new loans and aggregate financing in September are likely to continue their strong rebound, while the upward trend in market interest rates will be effectively curbed and may even shift toward a moderate decline. This will help build momentum for a sustained strengthening of the macroeconomic recovery going forward and will also benefit the capital markets.
Chen Wenjing, Director of Market Research at the China Index Academy, believes that this RRR cut will have a positive impact on the real estate sector. The steady and improving macroeconomic outlook is expected to bolster market expectations, while also providing stronger support for the reasonable funding needs of both homebuyers and enterprises.
“Since September, the pace of policy adjustments aimed at boosting the real estate sector has accelerated across the country. According to data from China Index Academy, as of September 13, more than 30 provinces and cities have introduced over 40 policy measures. Core cities have intensified their city-specific approaches, with several second-tier cities fully lifting restrictions on home purchases and sales. Coupled with this recent reduction in the reserve requirement ratio, market expectations are expected to improve further,” said Chen Wenjing. She added that, in the short term, driven by a series of supportive policies, market activity in core first- and second-tier cities is likely to pick up, helping the national real estate market gradually bottom out and stabilize.

Commercial & Corporate
Spokesperson of the Ministry of Commerce answers questions from reporters regarding the announcement by EU leaders that they will soon launch an anti-subsidy investigation into China’s electric vehicles.
A reporter asked: Recently, the European Union announced that it will launch an anti-subsidy investigation into Chinese exports of electric vehicles. What is the spokesperson’s comment on this?
Answer: On September 13, EU leaders formally announced that they would soon launch an anti-subsidy investigation into Chinese electric vehicles. China has expressed grave concern and strong dissatisfaction over this decision.
China maintains that the investigative measures the European Union intends to adopt are, in reality, a thinly veiled attempt to protect its own industries under the guise of “fair competition,” constituting blatant protectionism. Such measures would severely disrupt and distort global automotive industry value chains and supply chains—including those within the EU—and would have adverse implications for China–EU economic and trade relations.
In recent years, China’s electric‑vehicle industry has grown rapidly, with its competitiveness steadily improving. This is the result of unwavering efforts to advance scientific and technological innovation and to build a complete industrial and supply chain. It reflects a competitive edge earned through hard work and solid capabilities, which has won widespread acclaim from consumers worldwide, including those in the European Union, while also making a substantial contribution to global efforts to tackle climate change and to the green transition underway across the EU and beyond.
The automotive industries of China and the European Union enjoy broad prospects for cooperation and share common interests. After years of development, they have long since evolved into a mutually interdependent relationship. EU automakers have been investing and operating in China for many years, and the Chinese market has become the largest overseas market for numerous EU car manufacturers. China remains committed to an open and cooperative approach, welcoming EU automakers to further expand their investments in China, including in the electric‑vehicle sector.
China urges the European Union, in the interest of safeguarding the stability of global industrial and supply chains and upholding the overall framework of the China–EU Comprehensive Strategic Partnership, to engage in dialogue and consultations with China, create a fair, non‑discriminatory, and predictable market environment for the joint development of the China–EU electric‑vehicle industry, jointly oppose trade protectionism, and work together to advance global efforts to address climate change and achieve carbon neutrality. China will closely monitor the EU’s protectionist tendencies and subsequent actions, and officely safeguard the legitimate rights and interests of Chinese enterprises.

The Ministry of Natural Resources has launched a pilot program for the redevelopment of inefficient land use.
On September 14, the website of the Ministry of Natural Resources issued the “Notice on Launching Pilot Projects for the Redevelopment of Inefficient Land,” announcing that a four-year pilot program will be carried out in 43 cities across 15 provinces and municipalities, including Beijing. The initiative will focus on revitalizing existing land reserves, exploring innovative policies and measures, and refining incentive and constraint mechanisms, with the aim of enhancing land-use efficiency and promoting high-quality urban–rural development.
The Notice focuses on revitalizing and making better use of existing land, with an emphasis on the redevelopment of underutilized land. It supports pilot cities in exploring innovative approaches across four key areas: In terms of integrated planning, it strengthens overarching planning guidance, underscores a commitment to high-quality development, and promotes orderly implementation; In the area of land acquisition and storage, it refines acquisition and storage mechanisms, expands funding channels for such activities, and improves compensation procedures; On the policy‑incentive front, it explores bundled supply of resources and assets, refines land‑supply methods, optimizes land‑price policy tools, enhances revenue‑sharing mechanisms, and establishes a sound framework for converting and utilizing existing land resources; And in terms of foundational safeguards, it mandates rigorous surveys, verification, mapping, and registration; ensures proper real estate property rights conofficeation and registration; and addresses legacy land‑use issues in a prudent and equitable manner.

The Ministry of Housing and Urban–Rural Development has strengthened the management of qualification approval for construction enterprises.
On September 13, the website of the Ministry of Housing and Urban–Rural Development published the “Notice on Further Strengthening the Administration of Qualification Approval for Construction Enterprises.”
The Notice comprises ten provisions, proposing to enhance the efficiency of qualification approval, standardize nationwide qualification‑approval authority, strengthen the verification of qualifications for corporate reorganizations, spin-offs, and mergers, refine methods for recognizing performance records, intensify ongoing audits of enterprise qualifications, tighten assessment requirements for registered personnel in construction‑industry enterprises, bolster credit‑management systems, establish a formal inquiry mechanism, reinforce accountability for platform‑data oversight, and strengthen efforts to promote integrity and clean governance.

Three departments have jointly issued a document to strengthen oversight of in-vehicle audio and video systems.
On September 14, the website of the State Administration for Market Regulation published the “Notice on Further Strengthening In-Vehicle Audio and Video Management,” aiming to continuously consolidate and strengthen mainstream ideological and public opinion in the new era, ensure that central directives and emergency information reach all vehicle spaces, and shape a new landscape for in-vehicle audio and video discourse.
The Notice stipulates that management of in-vehicle wireless radio reception terminals shall be standardized, efforts to promote their widespread adoption shall be intensified, and automakers shall be encouraged to equip vehicles with digital AM (DRM) and digital FM audio broadcasting (CDR) modules. It also calls for accelerating the development of a nationwide digital wireless broadcasting coverage network and strengthening oversight of in-vehicle wireless radio services. Furthermore, it mandates the standardization of in-vehicle network‑based audio and video service management, the enhancement of public‑service program content supply, and the reinforcement of regulatory scrutiny over such services. Finally, it requires the standardization of in-vehicle audio‑video operations and management, the expansion of high‑quality content production by mainstream media, the assurance of seamless dissemination of central government messages, and the regulation of in-vehicle audio‑video system platform management.

The Ministry of Industry and Information Technology has launched the 2023 initiative to solicit and appoint leaders for innovation tasks in emerging industries.
On September 13, the website of the Ministry of Industry and Information Technology published the “Notice on Organizing the 2023 Future Industries Innovation Task ‘Challenge-Based Recruitment’ Initiative.”
The Notice specifies that, focusing on four key areas—metaverse, humanoid robotics, brain–computer interfaces, and general artificial intelligence—it will prioritize innovation tasks spanning core foundational technologies, flagship products, public‑support infrastructure, and demonstration applications. The initiative aims to identify and nurture a cohort of leading entities that master critical core technologies and possess robust innovation capabilities, achieve breakthroughs in landmark technological products, and accelerate the deployment and application of new technologies and products. Enterprises, financial institutions, technology service providers, universities, research institutes, and emerging R&D organizations are encouraged to submit proposals as consortia, with a single lead entity and no more than four participating partners.

The Ministry of Commerce has launched the pilot evaluation of the first batch of 15-minute community convenience service circles nationwide.
On September 14, the Ministry of Commerce website published the “Notice on Conducting the Pilot Evaluation of the First Batch of National 15-Minute Community Life Circles.”
The Notice specifies that the assessment will cover the 30 pilot areas nationwide designated in the first batch of “15-minute community convenience living circles.” The evaluation will examine both the progress of work in these pilot areas and the development of the convenience living circles. Specifically, the performance of the pilot areas will be assessed across five dimensions: top-level design, organizational implementation, policy support, business environment, and construction outcomes. Scores of 85 or above will be rated as “Excellent,” 70–85 as “Good,” and 60–70 as “Satisfactory.”

Shenzhen has officially released the “Shenzhen Guidelines on Corporate Data Compliance.”
On September 11, the “Shenzhen Municipal Guidelines on Corporate Data Compliance” were officially released at the launch event of the “2023 Shenzhen Cybersecurity Public Awareness Week.”
The Guidelines comprise six chapters and 77 articles, covering general provisions, the establishment of an organizational framework for data security compliance management, the development of a data compliance management system, compliance throughout the entire data lifecycle, cross-border data transfer compliance, and supplementary provisions. They provide guidance to enterprises on implementing data compliance management, enhancing their awareness of data compliance and improving their data protection capabilities, and set out comprehensive and detailed regulatory guidelines for various data‑related scenarios. Notably, the Guidelines introduce, for the first time, grounds for exemption from liability and a fault‑tolerance mechanism in corporate data transactions, thereby facilitating the compliant and efficient circulation and trading of data as a factor of production and fostering the development of the data‑factor market.

Beijing: Companies designated as “unicorns” that go public may qualify for a phased‑payment tax policy on equity‑based incentives.
Recently, 11 departments, including the Beijing Municipal Science & Technology Commission and the Zhongguancun Science Park Administrative Committee, issued the “Several Measures for Further Fostering and Supporting Unicorn Enterprises,” which encompass ten key areas.
The Measures stipulate support for unicorn enterprises to accelerate their listings on domestic and international capital markets. They provide efficient, streamlined listing services, implementing dedicated point-of-contact arrangements, expedited review upon submission, and immediate issuance upon approval for unicorns seeking to list on the Beijing Stock Exchange. Eligible unicorn enterprises will be included in a pilot program to replace traditional inquiries into compliance records with credit reports, offering pre‑listing companies a “one‑click download” of government‑issued certificates of no violations and a “Compliance One‑Code” verification mechanism. Furthermore, unicorn enterprises registered within the Zhongguancun National Independent Innovation Demonstration Zone may, upon listing, avail themselves of the phased tax payment policy for equity‑based incentive plans in accordance with relevant regulations.

A new plan has been unveiled! Strong intellectual property protection is boosting high-quality economic development.
Protecting intellectual property is tantamount to protecting innovation. At present, as China’s economy enters a new stage of development and both domestic and international environments undergo profound changes, intellectual property protection efforts, while achieving remarkable results, also face numerous new demands and challenges.
On September 14, the National Intellectual Property Administration held a press conference to highlight the recently issued “Implementation Plan for the Universal Public Service Project on Intellectual Property (2023–2025)” (hereinafter referred to as the “Implementation Plan”).
At the press conference, Wang Peizhang, Director-General of the Public Service Department of the National Intellectual Property Administration, stated that the Implementation Plan is closely aligned with the needs of national strategic priorities, focusing on achieving high-level scientific and technological self-reliance and innovation-driven development. It proposes strengthening public service support for China’s national strategic science and technology forces, emerging fields and business models, key regional industries, rural revitalization, and the western region.
Enhancing the reach of public services through “one-stop” service delivery.
Wang Peizhang stated that the Plan calls for actively promoting the integration of more administrative powers and public services in the intellectual property field—both those handled upon application—into local government service centers, thereby providing one-stop services such as acceptance of applications, fee payment, inquiry, retrieval, and consultation.
Meanwhile, in areas where small, medium, and micro enterprises are densely concentrated—such as industrial parks, pilot demonstration zones, and service‑industry clusters—public service institutions or workstations have been established to provide enterprises with a range of intellectual property‑related public services, including policy advice, information support, operational guidance, and capacity‑building training. These efforts help SMEs optimize their IP strategies, mitigate IP risks, and strengthen IP protection.
He stated that efforts will continue to enrich innovative “helpful tools” and expand the supply of public service offerings. Leveraging the Intellectual Property Public Service Network, the government will promote and publicize information‑based public services such as the patent search and analysis system, the design‑patent search public service system, and the intellectual property data‑resource public service system. By continuously developing more free, authoritative IP information services, it aims to create additional public‑service use cases, thereby effectively lowering the barriers for small, medium, and micro enterprises to access and utilize IP information.
We will continuously optimize online services and promote the digitalization of more administrative processes, enabling citizens to handle an increasing number of matters online or via mobile devices. We will accelerate the development of a nationwide integrated digital public service platform for intellectual property, facilitate the online “one-stop” processing of more IP-related services, and expedite the mobile‑app development of systems for patent, trademark, and other procedures. By making high‑frequency services accessible on mobile devices, we will further expand both the scope and depth of “one‑stop online services,” ensuring that “data travels more while people travel less” and reducing the administrative costs for innovators.
In addition, efforts to provide business guidance have been intensified to enhance intellectual property awareness and capabilities. Targeting innovation-driven entities such as small, medium, and micro enterprises, as well as the general public, on the one hand, we are leveraging the “IP Services Across the Country” campaign to establish a team of public‑service experts in intellectual property, thereby strengthening training and service delivery. On the other hand, through platforms like the National Intellectual Property Public Service Network, the China Intellectual Property Distance Education Platform, and the Patent Documentation Center’s public lectures, we offer free courses on relevant subject matter, comprehensively bolstering the IP awareness and competencies of small, medium, and micro enterprises.
The “IP Services Across the Country” campaign has, to date, benefited more than 500,000 enterprises.
When undertaking innovative research and development, how should intellectual property be strategically positioned? And as companies expand internationally, how can they effectively safeguard their intellectual property? At the forefront of R&D and production, these IP‑related questions require expert guidance to address.
The 2023 “IP Services Across the Country” campaign, themed “Promoting High-Quality Development of the Intellectual Property Service Sector and Building a Supportive Ecosystem for Comprehensive Innovation,” was launched in April. Over the past several months, localities have tailored their approaches to key regions, priority industries, and major innovation players, thoroughly assessed enterprises’ intellectual property needs, and worked diligently to deliver high‑quality IP services, thereby addressing the most pressing challenges faced by businesses in their pursuit of innovative development.
At the press conference, Peng Wen, Deputy Director-General of the Department of Promotion of Intellectual Property Utilization at the National Intellectual Property Administration, stated that since its launch, the “Intellectual Property Services Across the Country” initiative has benefited more than 500,000 enterprises, providing robust IP‑related support for the innovation and development of small and medium-sized enterprises.
Peng Wen stated that since 2019, the National Intellectual Property Administration has integrated and upgraded two initiatives—the “IP Services to the Grassroots: A Ten-Thousand-Li Journey for Economic Development” program and the “National IP Service Brand Institutions Join Hands with Regional Economic Development” initiative—into a flagship campaign called “A Ten-Thousand-Li Journey of IP Services.” This effort leverages the Administration’s high-quality internal resources in examination, information, and talent, while also drawing on expertise from the IP service sector, to help innovation entities enhance the quality of IP creation, the effectiveness of IP utilization, the level of IP protection, and their overall management capabilities.
Peng Wen stated that this year, the National Intellectual Property Administration, under the theme of “promoting high-quality development of the intellectual property services sector and establishing a service system that supports comprehensive innovation,” will continue to organize the nationwide “IP Services Across the Country” campaign. The initiative focuses on five key actions: advancing high-quality development of the IP services industry; leveraging IP services to drive innovative development; supporting industrial chain security through IP services; facilitating technology transfer and commercialization; and enhancing brand value via IP services. These efforts will be systematically implemented across five phases: conducting enterprise‑needs surveys, matching service resources, organizing and carrying out activities, selecting and recognizing exemplary cases, and summarizing the campaign’s outcomes. In addition, localities, drawing on their specific circumstances, have supplemented the core tasks with other thematic activities, thereby broadening the scope of services and expanding the campaign’s reach.
It is reported that, at present, the phase of conducting enterprise needs assessments and matching service resources has been completed. Localities have made full use of both online and offline channels to foster a culture of thorough investigation and research, carrying out targeted surveys in enterprises and public institutions and broadly soliciting demands for intellectual property services. Across the country, 29 localities have formulated action plans tailored to their specific circumstances. Based on 229 service requests submitted by these localities, the National Intellectual Property Administration has coordinated its 31 internal departments and units to precisely match 358 service offerings.
Peng Wen stated that, in the next phase, the National Intellectual Property Administration will further strengthen the organization and implementation of related activities, intensify publicity efforts, and provide guidance to local authorities to effectively enhance the practical impact of these initiatives—ensuring they reach the grassroots level, support innovation, and deliver tangible benefits to enterprises.
Strengthen intellectual property protection in new fields and emerging business models with greater vigor.
In recent years, new technologies and business models—such as the Internet, big data, and artificial intelligence—have flourished, reshaping global factor endowments, reconfiguring the global economic structure, and transforming the global competitive landscape.
At the press conference, Wu Hongxiu, Deputy Director of the Review Business Management Department of the Patent Office of the National Intellectual Property Administration, stated that in recent years, the NIPA has focused on critical core technologies and key industrial sectors, optimized its review‑policy framework, reallocated review resources to address emerging fields and business models, expanded the scale of expedited examination, and pursued innovative review approaches such as centralized examination. These efforts have further enhanced the quality and efficiency of examinations in relevant areas, thereby meeting the diverse needs of innovation entities.
Focusing on cutting-edge technological fields, the National Intellectual Property Administration has organized in-depth mining and analysis of patent information. Leveraging the National Key Industry Patent Information Service Platform, it has launched seven new specialized databases, including those for artificial intelligence and database management systems. With the total number of patent‑related thematic databases now reaching 18, the initiative provides robust support for technological innovation and intellectual property protection in emerging sectors and business models.
Wang Peizhang’s analysis points out that, as the innovation-driven development strategy is implemented in depth, China’s overall innovation capacity continues to strengthen, with a rapid proliferation of diverse innovation actors and models, leading to higher expectations for public intellectual property services and the continuous emergence of new demands.
“This calls for continuously exploring new approaches and introducing innovative measures,” said Wang Peizhang. “We are shifting our focus from building systems and laying foundations to enhancing efficiency and promoting inclusive access, thereby better optimizing the allocation of public service resources. We will further identify key areas and entry points for integrating into the national innovation system, concentrating on the needs of high‑level scientific and technological self‑reliance and innovative development. We will continue to improve the public service system, steadily strengthen public service capabilities, foster deep integration among the service chain, the innovation chain, and the talent chain, and drive a comprehensive, inclusive upgrade in the overall effectiveness of intellectual property‑related public services.”
At the same time, it is necessary to refine the examination model to better support the sound development of new sectors and business models. “New fields and emerging business models are characterized by cutting-edge technologies and rapid iteration, posing new demands and expectations for patent and trademark examination,” said Wang Peizhang.
“With the rapid advancement of new technologies and their deep integration into industrial applications, innovation actors are seeking to further strengthen patent protection in these fields,” said Wu Hongxiu. She added that the National Intellectual Property Administration will continue to monitor technological developments across industries, intensify research and exploration in emerging areas such as big data, refine examination standards and procedures, bolster public‑service support, and reinforce intellectual property protection in relevant sectors.

Taxation
The Fourth Belt and Road Tax Administration Cooperation Forum opened in Georgia.
On the afternoon of September 11, Beijing time, the Fourth Belt and Road Tax Administration Cooperation Forum opened in Tbilisi, the capital of Georgia. More than 300 participants attended, including heads of tax authorities from 32 countries and regions, representatives from 10 international organizations such as the United Nations and the International Monetary Fund, and delegates from several multinational enterprises. Focusing on the theme “Inclusiveness and Openness: Moving Forward Together to Foster an Optimal Tax Environment,” the attendees discussed a shared vision for the future of tax cooperation under the Belt and Road Initiative. Wang Jun, Director of China’s State Taxation Administration, attended the opening ceremony and delivered a keynote address. Lasha Khutsishvili, Minister of Finance of Georgia, and Amel Abdellatif, President of the Algerian Tax Authority and chair of the previous forum, also addressed the gathering.
In his keynote address, Wang Jun stated that the joint development of the Belt and Road Initiative has now entered its tenth year, yielding a series of concrete and substantial achievements. Under the guidance of the Belt and Road Initiative and through the concerted efforts of tax authorities from various countries, relevant international organizations, and the academic and business communities, the Belt and Road Tax Administration Cooperation Mechanism, established in 2019, has also achieved remarkable results. The successive hosting of the Belt and Road Tax Administration Cooperation Forums and a series of high-level meetings have effectively facilitated deeper exchanges and mutual learning among national tax administrations, continuously enhancing a tax cooperation framework that is transparent, efficient, stable, and predictable. Five Belt and Road Tax Academies—located in Yangzhou, Beijing, Macao, Astana, and Riyadh—have been successively established, while the English-language website of the Belt and Road Tax Administration Cooperation Mechanism has become a public platform for tax authorities and industry stakeholders to share insights and showcase their expertise. Guided by practicality, utility, and tangible outcomes, countries and regions have jointly advanced the development of knowledge‑based products and built a curriculum system for the Belt and Road Tax Administration Capacity‑Building Alliance, thereby providing a widely recognized new public good in the field of international taxation.
Wang Jun stated that in recent years, China’s tax authorities have continuously optimized the tax‑related business environment, adhering to a people‑centered approach and vigorously promoting measures that benefit both taxpayers and businesses; embracing technology‑driven innovation to harness digital empowerment; adopting a problem‑oriented mindset to advance reform and innovation; upholding the rule of law to ensure fairness and impartiality; and applying a systems‑thinking framework to foster collaborative development and shared benefits. In particular, for ten consecutive years, the “Spring Breeze Action” has been launched to make tax services more convenient, introducing a total of 620 tax‑and‑fee service measures. As a result, 96% of tax‑and‑fee matters and 99% of tax returns can now be handled online or via mobile apps. Moreover, a series of tax and fee preferential policies have been implemented fully and meticulously; from 2018 to 2022 alone, cumulative tax and fee reductions, refunds, and deferrals exceeded RMB 11 trillion, making these measures among the most impactful and tangible tools for supporting enterprises and alleviating their difficulties. Meanwhile, a new tax‑supervision system based on “credit + risk” has been steadily refined, with efforts focused on maximizing regulatory effectiveness, minimizing regulatory costs, and reducing interference with market entities. China has also actively participated in the formulation and adjustment of international tax rules, continuously improving diversified cross‑border tax‑filing channels, thereby creating a more convenient, open, and streamlined tax environment for multinational investment and trade.
Wang Jun put forward three initiatives to further optimize the tax‑related business environment and advance the joint development of the Belt and Road Initiative: First, steadfastly embrace the digital trend and enhance the capacity for precision tax administration. We will continue to accelerate the deep integration of digital technologies with tax‑related operations, vigorously promote the aggregation and interconnection of domestic and international tax‑related data, and ensure seamless online–offline coordination, thereby continuously improving our ability to deliver precise tax administration and further optimizing the tax‑related business environment. Second, officely pursue the path of innovation and strengthen endogenous drivers of development. By fully leveraging and expanding the role of taxation, we will provide comprehensive, full‑cycle, and end‑to‑end tax support for scientific and technological innovation, while also fostering a tax‑friendly business environment that nurtures the growth of new business forms and models, thus further energizing internal momentum for development. Third, resolutely deepen open cooperation and pool collective efforts for shared benefits. We will give full play to the “bridging” role of the Belt and Road Tax Administration Cooperation Mechanism and the “intellectual hub” function of the Belt and Road Tax Administration Capacity‑Building Alliance, working together to build an international tax‑related business environment that better facilitates the free flow of production factors and ensures fair and orderly competition, thereby contributing to the recovery and steady improvement of the global economy.
In his address, Lasha Khutsishvili, Minister of Finance of Georgia, stated that Georgia actively participates in international cooperation in the tax field and was among the first members to join the Belt and Road Initiative’s Tax Administration Cooperation Mechanism. He pledged to advance the mechanism toward greater pragmatism, mutual trust, and win-win outcomes, expressing confidence that it will continue to play a unique and vital role in future international tax cooperation. Meanwhile, Amel Abdellatif, Director-General of the Algerian Tax Authority, noted that the parties to the cooperation mechanism have steadily deepened exchanges and collaboration in areas such as tax digitalization and capacity-building for tax administration, thereby effectively fostering economic and social development across countries and regions.
Wang Daoshu, Secretary-General of the Secretariat of the Belt and Road Tax Administration Cooperation Mechanism and Deputy Director‑General of the State Taxation Administration of China, presented the latest progress of the Mechanism. Rong Guangliang, Chairman of the Belt and Road Tax Administration Capacity‑Building Alliance and Director‑General of the Financial Services Bureau of the Government of the Macao Special Administrative Region of China, outlined the Alliance’s most recent developments. Tax authorities from Indonesia, Uruguay, Hungary, Singapore, and other countries and regions, as well as international organizations including the International Chamber of Commerce’s Tax Commission, the International Centre for Tax and Investment, the West African Tax Administration Forum, and the Inter‑American Center for Tax Administration, expressed their deep endorsement of the Belt and Road Initiative, heartfelt congratulations on the achievements of the Belt and Road Tax Administration Cooperation Mechanism, and confidence in its future prospects.
Prior to the opening of the forum, Wang Daoshu chaired a meeting of the Council of the Belt and Road Tax Administration Cooperation Mechanism, announcing that Levan Kakava, Director-General of the Georgian Tax Service, would serve as Chair of the Fourth Forum and Chair of the Cooperation Mechanism’s Council, while Davlatzoda Nasataro Muhim, Director-General of the Tajikistan Tax Service, was appointed as Vice-Chair of the Council.
It is reported that the Belt and Road Tax Administration Cooperation Mechanism, first proposed by China, was established in April 2019. With 36 members and 30 observers to date, it has become a highly influential multilateral platform for tax cooperation under the Belt and Road Initiative. The first three sessions of the Belt and Road Tax Administration Cooperation Forum were held in China, Kazakhstan, and Algeria, respectively. The fourth forum, hosted by the Revenue Service of Georgia, will feature a three-day agenda during which senior tax officials from various countries and regions—including 25 tax administration heads and deputy heads—along with officials and experts from international organizations such as the International Monetary Fund, the International Centre for Tax and Investment, the International Chamber of Commerce, the Netherlands Bureau for International Fiscal Documentation, the Asian-Oceanian Tax Administrators Association, and the African Tax Administration Forum, as well as representatives from several multinational enterprises, will engage in in-depth discussions on topics including the overall planning for optimizing the tax business environment, tax rule of law and administrative transparency, reducing tax and fee burdens, simplifying tax compliance, and establishing dispute‑resolution mechanisms, thereby advancing the continuous improvement of the tax business environment in countries participating in the joint construction of the Belt and Road.

In the first seven months, new tax and fee reductions, along with tax refunds and deferrals, totaled 1.05 trillion yuan—
A package of tax and fee policies is being deployed to help businesses overcome difficulties.
According to the latest data, from January to July, nationwide tax and fee reductions, refunds, and deferrals totaled 1.05 trillion yuan. Since the beginning of this year, China has rolled out a comprehensive package of tax and fee policies aimed at bolstering the real economy, boosting incomes and expanding consumption, advancing high‑level scientific and technological self‑reliance, and supporting the development of strategic emerging industries, thereby providing concrete support to help businesses overcome difficulties and achieve sustainable growth.
It is understood that, in support of the real economy, and on the basis of ongoing optimization and refinement, the expiring tax and fee preferential policies applicable to small and micro enterprises and individual business households will be uniformly extended through the end of 2027. In terms of promoting scientific and technological innovation, the pre‑tax additional deduction rate for R&D expenses of enterprises in relevant sectors will be increased, and this policy will be institutionalized and implemented on a long-term basis.
In support of the development of strategic emerging industries and the capital market, policies such as the extension and optimization of the vehicle purchase tax exemption for new-energy vehicles, the introduction of an additional VAT credit policy for advanced manufacturing, the continuation of the Shanghai–Hong Kong Stock Connect, the Shenzhen–Hong Kong Stock Connect, and mutual recognition of funds, measures to open up the commodity futures market to foreign investors, initiatives related to innovative enterprise depositary receipts, and equity incentive schemes for listed companies have been implemented. In addition, the stamp duty on securities transactions has been reduced by half.
In support of small and micro enterprises, a number of tax and fee preferential policies have been extended. These include reducing or exempting value-added tax for small-scale taxpayers and income tax for small and micro enterprises; expanding the scope of individual business households eligible for a 50% reduction in personal income tax; applying a uniform 50% reduction to six taxes and two fees for small and micro enterprises and individual business households; and raising the tax‑credit limits for key groups such as college graduates engaged in self‑employment.
“According to 2022 data, roughly 70 percent of small and micro enterprises and individual business households are exempt from paying taxes. Building on this, we have further strengthened tax and fee relief measures, while also layering in other fiscal policies to support small and medium-sized enterprises,” said Wang Dongwei, Vice Minister of Finance. He added that among all active tax‑paying entities nationwide, there are approximately 73 million small and micro enterprises and individual business households, and the relevant tax and fee policies are broadly inclusive, allowing eligible entities to benefit.
The State Council has decided to raise the special additional deductions for childcare of infants and young children under three, children’s education, and eldercare, effective January 1, 2023. “Following these increases, taxpayers’ tax burden will be further reduced, with particularly significant tax relief for the middle-income group,” said Wang Dongwei.
Good policies must be effectively implemented. “Starting in September, for taxpayers who have already reported these three special additional deductions this year, no action is required on their part; the new system will automatically update the original deduction amounts to the revised standards. At the same time, the tax information system will recalculate based on the new standards, ensuring that taxpayers can benefit from the preferential policies,” explained Luo Tianshu, Chief Accountant of the State Taxation Administration.
The tax authorities have specifically developed a targeted “one policy, one plan” delivery system, providing end-to-end, progressive, and tailored outreach to legal representatives, financial officers, and tax-handling personnel. Since August this year, the tax authorities have carried out phased, precision‑targeted communications to more than 275 million individual and entity instances, striving to ensure that “policies find the people.”
According to Chen Zhijiang, head of the Price Supervision and Inspection and Anti-Unfair Competition Bureau of the State Administration for Market Regulation, the agency has made addressing illegal fees imposed on enterprises a key priority this year. It is continuously refining and effectively implementing tax and fee reduction policies to help businesses cut costs and boost efficiency. To date, more than 1,600 cases involving unlawful charges levied on enterprises have been filed and investigated, resulting in nearly RMB 500 million in direct cost reductions for businesses—funds that were fully refunded to the affected companies after the investigations were concluded.

Simplifying tax services hinges on soliciting the needs of the people.
Recently, the newly unified national electronic tax bureau was launched nationwide, with Sichuan taking the lead in achieving full-scale operation. Its most notable feature is the intelligent upgrade of tax services, which better meets taxpayers’ personalized needs. Taxation bears on the overall picture; facilitating tax administration not only makes life easier for taxpayers but also helps deepen reforms in tax collection and management, uphold a fair tax environment, and provide momentum for sustained economic improvement.
Since the beginning of this year, China has continued to refine and implement a series of tax and fee preferential policies. To ensure these benefits reach taxpayers precisely, the tax authorities have introduced practical measures such as pre‑filled returns, streamlined documentation requirements, and optimized procedures—making technology work harder while reducing the need for taxpayers to make in-person visits. These taxpayer‑friendly initiatives address the most pressing concerns, challenges, and expectations of taxpayers, leveraging stable, user‑friendly technologies. Through proactive and effective exploration and implementation, they inevitably foster rigorous research and public consultation, drive technological innovation and system deployment, and, in turn, strengthen our commitment to serving the people, hone organizational capabilities, and solidify our technical foundation. All of these efforts will provide greater momentum and support for advancing tax administration reform in a systematic and comprehensive manner.
Tax administration reform encompasses enforcement, service, and oversight, among other areas. In each of these domains, the overarching goals of supporting businesses and facilitating public convenience remain paramount, underpinned by digital and intelligent technologies. At its surface, taxpayer‑friendly tax services reflect changes in operational procedures and technological applications; at its core, they embody a transformation in tax governance principles. Cutting‑edge concepts will guide reform to deepen and take root, sparking greater innovation and inspiration.
At the same time, taxpayer‑friendly tax services signify a continuous enhancement of the tax system’s capabilities in data collection, analysis, management, and application, providing robust support for precisely cracking down on tax‑related violations and safeguarding a fair tax environment. Combating tax‑related crimes and ensuring that the benefits of tax cuts and fee reductions are fully realized are two sides of the same coin, both aimed at protecting taxpayers’ legitimate rights and interests. The upgrading of taxpayer‑friendly services will inevitably make tax enforcement more precise and efficient, enabling timely detection and prosecution of criminal activities while sparing compliant taxpayers from unnecessary interference, thus fostering a fairer and more transparent tax environment.
Confidence is often built through the accumulation of small, concrete details. Even well‑intentioned policies will fail to win public support if they are not implemented effectively. Convenient tax services deliver tangible benefits to both businesses and individuals: some save time by reducing unnecessary visits, others cut down on paperwork, and still others effortlessly receive the “tax‑cut bonus,” among other advantages. Though these may seem like minor, isolated measures, sustained effort over the long term fosters a heart‑warming sense of warmth and deepens trust. At this critical juncture of economic recovery, confidence is the source of momentum and expectations—more vital than anything else. Tax‑service reforms that engage a wide range of stakeholders, stay close to the front lines, and deliver real, people‑centered gains are a key strategy for bolstering market confidence.
Building on this foundation, China has continuously upgraded its taxpayer‑friendly tax administration, not only making routine tax‑filing processes smoother and more efficient, but also leveraging tax‑related big data to facilitate supply‑demand matching and implementing innovative measures such as “bank‑tax collaboration” to enhance credit support for enterprise financing, thereby enabling market entities to enjoy greater benefits and conveniences.
New circumstances and challenges are constantly emerging, and business needs are evolving, meaning that taxpayer‑friendly services have no end point. We must continue to conduct in‑depth surveys to promptly and comprehensively identify common needs, strengthen our capacity to develop and apply new technologies, and ensure that these taxpayer‑oriented measures deliver sustained benefits. Of course, tax‑related economic activities are diverse and complex, and they cannot do without coordinated governance. All relevant departments and agencies should further break down information silos, enhance communication and collaboration, and work together to bring taxpayer‑friendly services even closer to the people’s expectations.

LITIGATION & ARBITRATION
The Supreme People’s Procuratorate has released the 48th batch of guiding cases.
Recently, the Supreme People’s Procuratorate released its 48th batch of guiding cases, themed “Comprehensive Prosecutorial Protection of Intellectual Property.” This batch comprises four cases: a supervisory case concerning an administrative dispute over trademark matters between Guangzhou Mona Lisa Building Materials Co., Ltd. and Guangzhou Mona Lisa Sanitary Ware Co., Ltd. on one hand, and the National Intellectual Property Administration on the other; a series of supervisory cases involving false litigation related to copyright ownership and infringement disputes between Zhou et al. and Xiang et al. and Li et al.; a case of copyright infringement involving Liang Yongping, Wang Zhenghang, and thirteen others; and a case of copyright infringement involving a Shanghai-based company, Xu Lin, and Tao Wei.
According to reports, this batch of guiding cases underwent multiple stages, including preliminary review, case file examination, drafting, solicitation of opinions, and deliberation by the Case Guidance Committee. They were carefully selected and prepared by the Supreme People’s Procuratorate from over 200 cases submitted by local procuratorial organs. This marks the first time the Supreme People’s Procuratorate has issued a special set of guiding cases on the comprehensive protection of intellectual property rights since establishing the Intellectual Property Prosecution Office and implementing integrated prosecutorial functions. The aim is to promote the procuratorial organs’ full‑scale exercise of their criminal, civil, administrative, and public interest litigation duties in the field of intellectual property, address key and difficult issues in such cases, uphold a fair and competitive market order, optimize the rule-of-law business environment, and support innovation‑driven development.
The guiding cases released this time cover a wide range of prosecutorial functions, including criminal, civil, and administrative matters related to intellectual property. They include criminal cases that punish intellectual property infringements in accordance with the law, supervisory cases aimed at correcting erroneous administrative adjudications, and civil‑judicial‑supervision cases addressing frivolous litigation involving intellectual property. The cases span both traditional sectors—such as bathroom fixtures—and cutting‑edge fields—including chip manufacturing, encompassing computer software copyright disputes and novel online infringement cases involving the dissemination of audiovisual works. In performing their duties, the procuratorial organs place equal emphasis on the quality of case handling and on addressing the root causes of disputes, exercising their powers in an integrated, comprehensive, and proactive manner to advance the modernization of the national governance system and governance capacity. For example, in a series of supervisory cases concerning false litigation over copyright ownership and infringement involving Zhou, Xiang, and Li, the procuratorial organs leveraged big data to innovate legal supervision models, breaking through bottlenecks in overseeing such fraudulent proceedings. By supervising final civil judgments, referring clues to criminal investigations, and putting forward recommendations for social governance, they have promoted a holistic approach to protecting intellectual property.
Liu Taizong, Director of the Intellectual Property Prosecution Office of the Supreme People’s Procuratorate, stated that the next step will be to further deepen the comprehensive exercise of prosecutorial functions in the field of intellectual property, continuously strengthen case-handling efforts, and reinforce professional capacity building. By leveraging digital prosecution to enhance legal oversight, the office will ensure that each intellectual property case is handled with high quality and efficiency, achieving an organic integration of case quality, efficiency, and effectiveness with fairness and justice. Through concrete actions and robust measures, the procuratorial organs will foster innovation, safeguard market order, and promote high-quality economic and social development.

The Supreme People’s Court has released the 2023 typical cases of antitrust and anti-unfair competition adjudication by the people’s courts.
From September 11 to 15, China observed the 2023 Fair Competition Policy Public Awareness Week, with this year’s theme being “A Unified National Market, Fair Competition for the Future.” On September 14, the Supreme People’s Court released its 2023 list of typical cases in antitrust and anti-unfair competition matters. A total of 10 such cases were published, comprising five antitrust cases and five anti-unfair competition cases.
Among the five landmark antitrust cases, three involve abuse of a dominant market position and encompass four types of abusive conduct: charging unfairly high prices, imposing exclusive dealing requirements, attaching unreasonable transaction conditions, and refusing to transact. The remaining two cases concern restrictive agreements, involving both vertical and horizontal arrangements. These cases span sectors such as pharmaceuticals, funeral services, automobile sales, and building materials—industries that are closely tied to people’s daily lives. Collectively, the five landmark cases highlight the following three key characteristics:
First, in response to public concerns, we have resolutely curbed monopolistic practices that infringe upon the legitimate rights and interests of businesses and the general public. In cases such as the refusal-to‑trade dispute involving “basic funeral services,” the vertical monopoly agreement dispute concerning “General Motors,” and the antitrust administrative penalty case involving “commercial concrete joint operations,” we have, in accordance with the law, officely put an end to abuses of market dominance by public utilities in the funeral industry, as well as to monopolistic agreements and other anticompetitive conduct entered into and implemented by operators in the automobile sales and building materials sectors, ordering full compensation where appropriate and effectively safeguarding the interests of both the public and small and medium-sized enterprises. These cases demonstrate that antitrust adjudication plays a vital role in supporting social welfare, upholding fair competition in the market, and advancing the development of a unified national market.
Second, by strengthening rule‑based guidance, we have advanced the lawful, impartial, and efficient adjudication of monopoly cases. The dispute over the abuse of a dominant market position in the “desloratadine” active pharmaceutical ingredient case was the first to clarify the relationship between the market‑locking effects of the challenged exclusive dealing conduct and the exercise of patent rights, as well as the criteria for assessing such conduct; it also set out the fundamental considerations underlying the determination and regulation of unfairly high pricing. In the “basic funeral services” refusal‑to‑transact dispute, the court sought to impose on a public utility holding a monopolistic position an obligation to resume transactions under lawful and reasonable conditions. Meanwhile, in the jurisdictional challenge concerning the “batroxobin” API refusal‑to‑transact dispute, the court further refined the standards for identifying the jurisdictional nexus in refusal‑to‑transact cases. The rulings in these cases provide valuable guidance for the accurate application of antitrust law.
Third, by improving coordination mechanisms, these cases underscore the importance of collaborative efforts to uphold a fair competitive order. In the “General Motors” case involving vertical monopoly agreements, the court clarified the burden of proof in subsequent civil damages actions following an antitrust administrative penalty, thereby effectively reducing the evidentiary burden on plaintiffs. Similarly, in the “Commercial Concrete Joint Venture” antitrust administrative penalty case, the court refined the criteria for identifying horizontal monopoly agreements and, in accordance with the law, supported the administrative enforcement activities of the antitrust authorities. Collectively, these cases have played a positive role in promoting the harmonization and consistency between antitrust administrative and judicial standards, and in fostering synergy between antitrust enforcement and judicial proceedings.
The five typical cases of unfair competition cover a range of issues, including the application of general provisions on unfair competition, confusion, false advertising, infringement of trade secrets, and online unfair competition. The cases span both everyday consumer sectors—such as household appliances, short videos, online games, and restaurant reviews—and high‑tech fields like diagnostic reagents. These cases primarily highlight the following three characteristics:
First, it has effectively safeguarded a fair and competitive market order and fully protected the legitimate rights and interests of both business operators and consumers. In the Siemens trademark infringement and confusion case, the people’s courts, guided by the principle of encouraging honest business practices, strengthened the protection of well-known brands and rigorously cracked down on dishonest acts such as trademark parasitism and unauthorized imitation. Where the available evidence was insufficient to establish the exact amount of the defendant’s profits or the plaintiff’s losses, yet sufficient to demonstrate that the defendant’s illicit gains clearly exceeded the statutory cap on damages, the courts, taking into account factors such as brand recognition and the use of unfair means, fully upheld the plaintiff’s claims, thereby ensuring equal protection of the lawful rights and interests of both domestic and foreign parties. In the trade secret infringement case involving the “Optical Excitation Chemiluminescence Analyzer Universal Reagent,” the people’s courts clarified the relationship between the trade secret information and its carrier files, setting an important precedent for the proper allocation of the burden of proof and for enhancing the protection of trade secrets.
Second, we will continue to explore and refine data protection rules to support the high-quality development of the digital economy. In recent years, the people’s courts have balanced regulation with development, fully leveraged their judicial functions, properly adjudicated cases involving unfair competition over data rights, and actively explored statutory frameworks for big data protection, thereby reasonably delineating the ownership and boundaries of data rights. In the unfair competition dispute involving the “Shuobao APP,” the people’s courts clarified the legal nature and independent economic value of non‑original data collections, safeguarding the legitimate rights and interests of short‑video platform operators in the collection, storage, processing, and transmission of data. These efforts have continuously addressed the judicial needs arising from new business forms and models, thereby fostering the healthy and orderly development of the digital economy.
Third, we will proactively foster a market environment characterized by honesty and trustworthiness, and guide the healthy development of the internet in a standardized manner. People’s courts have taken the initiative to adapt to the new circumstances and requirements arising from the evolution of the internet industry. By leveraging the normative, exemplary, and guiding role of judicial rulings, they ensure that new internet technologies, business models, and operational paradigms develop soundly within the framework of the rule of law, thereby enabling the benefits of internet development to better serve the public. In the unfair competition dispute involving the “Dailianbang APP,” the people’s courts held that commercial account‑leveling services that circumvent minors’ anti‑addiction mechanisms and undermine game‑operation systems constitute unfair competition as defined in Article 2 of the Anti-Unfair Competition Law, a ruling that carries significant positive implications for safeguarding fair competition in the internet sector, promoting the healthy development of the gaming industry, and protecting the broader public interest. In another unfair competition case concerning “order‑boosting and reputation‑manipulation” practices, the people’s courts promptly and effectively curbed false advertising that undermines the healthy and orderly development of the platform economy, thereby protecting consumers’ legitimate rights and interests and ensuring the regulated, orderly growth of the platform economy.

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