JC Master Legal News Issue 1075

Key Takeaways for This Issue

The Shanghai, Shenzhen, and Beijing stock exchanges have further reduced securities trading handling fees.
To implement the spirit of the July 24 meeting of the CPC Central Politburo and the relevant arrangements made at State Council meetings, further invigorate the capital market, bolster investor confidence, and forge a concerted effort to drive the economy’s sustained recovery and improvement, the China Securities Regulatory Commission has instructed the Shanghai Stock Exchange, the Shenzhen Stock Exchange, and the Beijing Stock Exchange to further reduce securities trading transaction fees, effective August 28.
The General Administration of Customs has introduced 23 reform measures for comprehensive bonded zones.
To further promote the high-quality development of comprehensive bonded zones, the General Administration of Customs recently unveiled 23 reform measures across five key areas: policy support, functional expansion, streamlined procedures, optimized workflows, and institutional improvement.
China’s first blue book on ecological protection red lines has been officially released.
At the main venue of the first National Ecological Day on August 15, the China Institute of Land Surveying and Planning unveiled its newly compiled “China Ecological Protection Red Line Blue Book (2023)” to the public for the first time.
The Supreme People’s Court and the Supreme People’s Procuratorate jointly released typical cases of public-interest litigation in ecological and environmental protection.
On August 15, the Supreme People’s Court website issued the “Notice on Printing and Distributing Typical Cases of Public Interest Litigation in Environmental Protection,” releasing ten exemplary cases.
Finance & Capital Markets
The Shanghai, Shenzhen, and Beijing stock exchanges have further reduced securities trading handling fees.
To implement the spirit of the July 24 meeting of the CPC Central Politburo and the relevant directives issued by the State Council, further invigorate the capital market, bolster investor confidence, and forge a concerted effort to drive the economy’s sustained recovery and improvement, the China Securities Regulatory Commission has instructed the Shanghai Stock Exchange, the Shenzhen Stock Exchange, and the Beijing Stock Exchange to further reduce securities transaction handling fees, effective August 28. Specifically, the Shanghai and Shenzhen stock exchanges will lower the handling fee for A‑share and B‑share transactions from 0.00487% of the transaction value—charged on both sides—to 0.00341% of the transaction value—also charged on both sides, representing a 30% reduction. Meanwhile, building on its December 2022 decision to cut such fees by 50%, the Beijing Stock Exchange has once again reduced its handling fee by another 50%, lowering it from 0.025% of the transaction value—charged on both sides—to 0.0125% of the transaction value—also charged on both sides. In addition, securities offices will be guided to prudently handle contract amendments with clients and adjust relevant trading parameters, while legally reducing brokerage commission rates, thereby ensuring that the benefits of this fee reduction are effectively passed on to the broader investing public.
Going forward, the China Securities Regulatory Commission will continue to guide all securities and futures trading and clearing institutions, as well as relevant associations, in earnestly implementing the CPC Central Committee and the State Council’s directives on tax and fee reductions. It will focus on enhancing services for investors and market participants, steadily strengthening the capital market’s capacity to support the high-quality development of the real economy, and building a capital market that is standardized, transparent, open, dynamic, and resilient.

An official from the China Securities Regulatory Commission answered questions from reporters on measures to invigorate the capital market and boost investor confidence.
On July 24, the CPC Central Politburo meeting made important arrangements for capital market work, explicitly stating that “the capital market must be invigorated to boost investor confidence.” Recently, a responsible official from the China Securities Regulatory Commission gave a media interview on the implementation of these measures.
1. Could you please explain the CSRC’s considerations regarding the implementation of this decision and deployment? What policy measures will be taken in the next phase?
Answer: This Central Politburo meeting emphasized the need to “vitalize the capital market and boost investor confidence.” This represents a new strategic deployment and set of requirements from the CPC Central Committee for capital market work, fully reflecting its high regard for and earnest expectations regarding the capital market, as well as the critical importance of stabilizing market expectations in safeguarding overall economic and social stability. In response, the China Securities Regulatory Commission has thoroughly studied and implemented the spirit of the Central Politburo meeting, diligently carried out the arrangements made at the State Council Executive Meeting and the State Council Plenary Meeting, established a special task force, and, drawing on broad input, formulated a dedicated work plan that outlines a comprehensive package of policies and measures to invigorate the capital market and bolster investor confidence.
The overarching approach is to take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as our guiding principle, uphold the general tone of seeking progress while ensuring stability, adopt a systems‑based perspective, remain problem‑oriented, and stay committed to market‑based and law‑based reforms. Centered on the central task of building a modern capital market with Chinese characteristics, we will implement comprehensive measures and coordinate efforts to better leverage the functions of resource allocation, price discovery, and risk management; continuously optimize the market ecosystem; effectively enhance market vitality, efficiency, and attractiveness; maintain a steady and positive development trajectory for the capital market; and foster healthy interaction between the capital market and the real economy.
In our work, we should adhere to several key principles: First, address both symptoms and root causes. While focusing on the present by swiftly introducing a set of concrete, effective policies and measures to stabilize expectations and boost confidence, we must also look ahead, persist in advancing reform, coordinate the development of the stock, bond, and futures markets, and improve the fundamental systems of the capital market. Second, prioritize key areas. By liberating our thinking and identifying strategic leverage points, we aim to achieve breakthroughs in such issues as injecting fresh vitality into the market, reducing transaction costs, and enhancing trading efficiency. Third, put stability first. We must strike the right balance between stability and dynamism, coordinating efforts to maintain market stability, manage expectations, and safeguard policy red lines, while steadily boosting market activity within the framework of overall market stability. Fourth, harness synergies. We will strengthen inter‑ministerial communication and policy coordination, aligning our efforts to create a powerful combined force that invigorates the market and bolsters confidence. The main measures encompass the following aspects:
I. Accelerate investment‑side reforms and vigorously develop equity‑oriented funds. Expedite the formulation of an action plan for investment‑side reform in the capital market, laying out a comprehensive framework to promote high‑quality development of the public fund industry, continuously optimize the market’s investment ecosystem, and strengthen the attraction of medium- and long-term capital. Vigorously developing equity‑oriented funds is a key component of these reforms, with the following priority measures: First, relax registration requirements for index funds to enhance their development efficiency and encourage fund managers to intensify product innovation. Second, fully implement the public fund fee‑rate reform to lower management fee levels. Third, guide leading public fund companies to increase the proportion of equity‑oriented funds they issue, thereby boosting the overall scale of public funds and optimizing their structure. Fourth, encourage public fund managers to step up their own purchases of their own equity‑oriented funds. Fifth, establish an incentive‑and‑constraint mechanism for public fund managers to adopt “counter‑cyclical positioning,” mitigating pro‑cyclical resonance. Sixth, broaden the investment scope and strategies of public funds by easing restrictions on investments in stock index options, stock index futures, government bond futures, and other related instruments.
II. Enhancing the investment appeal of listed companies and delivering better returns to investors. First, formulate and implement an action plan to leverage the capital market in supporting high‑level scientific and technological self‑reliance and strength. Establish and refine a “green channel” for technology‑driven enterprises to access equity financing, bond issuance, and M&A restructuring, with a focus on breakthroughs in critical core technologies. Second, strengthen dividend‑oriented policies to enhance the stability, sustained growth, and predictability of dividends, particularly among large‑cap listed companies. Study and improve systematic, long‑term mechanisms to constrain dividend practices. By encouraging mid‑year dividends from companies with stable operating cash flows and tightening information‑disclosure requirements for low‑dividend issuers, enable investors to share more fully and earlier in the performance gains of listed offices. Third, revise regulations governing share repurchases, relax relevant conditions, and support listed companies in conducting buybacks. Fourth, deepen market‑based reforms of M&A and restructuring activities for listed companies. Optimize and refine the “small‑amount, fast‑track” review mechanism, appropriately increase valuation flexibility for asset‑light technology offices undergoing restructuring, and diversify payment and financing instruments used in such transactions. Fifth, further advance the development of a valuation framework with Chinese characteristics. Emphasize rewarding quality while curbing poor performance; for listed companies or sectors that have fallen below their IPO price or net asset value, consider imposing appropriate restrictions on their financing activities and require them to submit plans to improve their market capitalization. Sixth, strike a balanced approach between primary and secondary markets. Appropriately calibrate the pace of IPOs and secondary financings, and refine counter‑cyclical adjustments between the two markets. In addition, pragmatic measures will be introduced to support the high‑quality development of the Beijing Stock Exchange, launch “green‑light” cases for overseas listings, and further promote the regular issuance of REITs.
III. Optimize and refine trading mechanisms to enhance trading convenience. To date, measures have been announced to reduce the reserve‑requirement ratio for settlement, lower the minimum number of shares that can be submitted in stock and fund orders, explore introducing ETFs into the after‑hours fixed‑price trading system, and launch inquiry‑based transfer and allocation‑based reduction mechanisms for ChiNext securities. Looking ahead, the following steps will be taken: First, reduce securities transaction handling fees and concurrently lower brokerage commission rates. Second, further expand the scope of eligible securities for margin and short‑selling, lower related financing and borrowing rates, and include ETFs in the securities‑lending and borrowing program. Third, improve the share‑reduction regime, strengthen oversight of non‑compliant and “circumvention‑type” reductions, and impose strict penalties for violations. Fourth, enhance trading supervision to boost convenience and liquidity while increasing transparency; a systematic reporting regime for algorithmic trading will be introduced as appropriate. Fifth, study the possibility of appropriately extending trading hours in the A‑share market and the exchange‑traded bond market to better meet investment and trading needs.
IV. Stimulating the Vitality of Market Institutions and Promoting High-Quality Industry Development First, we will adhere to a development path characterized by intensification, differentiation, functional specialization, and internationalization, with the goal of building high‑quality investment banks. We will refine the calculation standards for securities offices’ risk‑control indicators, appropriately relax capital constraints on high‑quality securities offices, and enhance the efficiency of capital utilization. Second, we will implement counter‑cyclical adjustments to margin trading and short‑selling; while keeping overall leverage risks under control, we will explore moderately lowering the margin ratios for on‑exchange financing activities. Third, we will study the launch of a series of financial futures and options products, including Shenzhen 100 Index futures and options, as well as CSI 1000 ETF options, to better meet investors’ risk‑management needs. We will also permit a broader range of domestic and overseas investment institutions, subject to prudent oversight, to use derivatives for risk management. Fourth, we will put into practice differentiated regulatory policies, streamline registration and filing procedures for high‑quality private equity and venture capital funds, and further advance pilot programs allowing these funds to distribute shares in kind. Fifth, we will vigorously develop a Chinese‑style index system and index‑based investing, encouraging various types of capital to enter the market through indexed investment strategies.
V. Support the development of the Hong Kong market and coordinate efforts to enhance trading activity in both A‑shares and Hong Kong stocks. At present, a block‑trade mechanism has been introduced under the Shanghai–Shenzhen–Hong Kong Stock Connect. Going forward, we will roll out additional pragmatic measures to invigorate the Hong Kong market and foster synergistic development between the mainland and Hong Kong markets. First, we will continue to refine the mutual market access mechanisms, further broaden the scope of eligible securities, and establish RMB‑denominated stock trading counters under the Hong Kong Stock Connect. Second, we will launch government bond futures and related A‑share index options in Hong Kong. Third, we will support Chinese companies listed in the U.S. to pursue dual listings in Hong Kong.
VI. Strengthen inter‑ministerial coordination to forge a concerted effort in invigorating the capital market. Revitalizing the capital market and bolstering investor confidence is a systemic undertaking that cuts across multiple domains, requiring a comprehensive package of measures to generate policy synergy. In particular, coordinated support from relevant ministries is essential in areas such as channeling medium- and long-term funds into the market and refining capital market tax policies. Recently, we have intensified cross‑ministerial communication and coordination, expeditiously studying and advancing several key initiatives. For example, we are working to optimize capital market‑related tax arrangements, including the timing of personal income tax liability for equity‑based incentive plans of listed companies; establishing and improving long‑term performance‑evaluation mechanisms for equity investments by insurance funds, thereby encouraging them to increase their allocation to equities; guiding and supporting bank wealth‑management products to actively enter the market; and facilitating broader participation by banking institutions and other investors in the exchange‑traded bond market, among other measures.
It is important to emphasize that fostering a vibrant capital market and boosting investor confidence are mutually reinforcing and intrinsically aligned with the overarching principle of prioritizing stability while seeking progress within that stability. Without a relatively stable market environment, efforts to invigorate the market and restore confidence would be impossible. We will coordinate and effectively balance measures to energize the market with risk prevention and strengthened regulation, working closely with relevant parties to prudently identify and manage risks in key areas such as local government financing vehicle (LGFV) bonds and the real estate sector. We will resolutely safeguard the stable functioning of the market, stay true to our core regulatory responsibilities, and intensify efforts to combat fraud and misconduct in the capital markets. We will rigorously, swiftly, and severely investigate and prosecute typical violations—including fraudulent issuance, financial fraud, market manipulation, and insider trading—so as to provide investors with transparent and reliable listed companies and bolster long-term investment confidence.
2. Inflow of incremental capital is key to a vibrant market. Could you please elaborate on your considerations and specific measures for attracting more medium- and long-term investors?
A: In recent years, medium- and long-term funds such as the social security fund, insurance funds, and pension funds have adhered to market‑based, professional management, maintaining an overall net inflow. While preserving and enhancing their value, they have also fostered positive interactions with the capital markets. Nevertheless, the overall shortage of medium- and long-term capital remains a major constraint on the healthy development of the capital market. At present, the share of stocks held by such investors stands at less than 6%, far below the over 20% typically seen in mature overseas markets. With strong support from relevant authorities, we are currently formulating a reform plan for the investment side of the capital market. To attract more medium- and long-term capital, the focus is on creating a policy environment conducive to their entry into the market. Specific measures include: first, supporting the National Social Security Fund, the Basic Pension Insurance Fund, and pension funds in expanding their investment scope in the capital market; second, revising and improving the criteria for identifying strategic investors to enable these medium- and long-term funds to participate in non‑public offerings by listed companies; third, establishing rules governing institutional investors’ participation in corporate governance, thereby strengthening the disciplining role of professional buyers; fourth, refining investment and trading regulations, including optimizing disclosure requirements for large shareholdings, short‑term trading, and share‑reduction restrictions, to facilitate the investment and operational management of professional institutions; fifth, broadening the range of financial derivatives available both on‑ and off‑exchange, while easing usage restrictions on derivatives for various types of institutional investors to enhance risk‑management efficiency; and sixth, enriching the personal pension product lineup by incorporating equity‑type products such as index funds into the investment options.
At the same time, we will strengthen inter‑ministerial communication and coordination, intensify efforts to attract various medium- and long-term capital sources, and increase the proportion of equity investments. Specifically: we will advance the refinement of investment management frameworks for the National Social Security Fund and the Basic Pension Insurance Fund, further enhancing the market‑oriented operation of annuity funds; we will promote research to optimize the accounting treatment of equity investments by insurance funds, facilitate the launch of pilot programs for long‑term equity investments by insurance capital, and gradually expand both the scope of these pilots and the scale of allocated funds; we will accelerate the nationwide rollout of the individual pension system, broadening its coverage; we will support bank wealth‑management products in bolstering their equity‑investment capabilities; and we will actively encourage all types of medium- and long-term capital to adopt a long‑term performance‑oriented approach, comprehensively establishing multi‑year evaluation mechanisms with horizons of three years or more to enhance the stability of investment behavior.
3. At the 14th Lujiazui Forum, Chairman Yi Huiman stated that policy measures to further support high-level scientific and technological self-reliance and strength in the capital market will be introduced at an appropriate time. Could you please provide an update on progress in this area and outline any specific initiatives?
A: Since the beginning of this year, based on in-depth research and extensive consultation, the China Securities Regulatory Commission has accelerated its efforts to study and refine a comprehensive package of policies and measures to further support technological innovation. Relevant documents will be issued in due course. The overarching approach is to improve the capital market’s mechanisms for supporting technological innovation, channel resources toward this sector, invigorate market‑driven innovation, help technology offices enhance their competitiveness and scale, and foster a virtuous cycle among science and technology, industry, and finance.
Key policy measures: First, establish a “green channel” for technology‑based enterprises to access equity financing, issue bonds, and undertake mergers and acquisitions and restructuring, thereby accelerating review and registration processes and increasing the supply of high‑quality listed companies. Second, continuously refine the equity‑incentive framework for technology‑based offices, streamline implementation procedures, and exempt short‑term trading to help these companies attract and retain stable talent. Third, optimize the financing environment for technology‑listed companies by actively exploring additional financing instruments and modalities tailored to their needs, and by studying the establishment of shelf‑registration systems on the STAR Market and the ChiNext Board. Fourth, appropriately enhance valuation flexibility in restructuring transactions involving light‑asset technology offices, enabling them to leverage a diverse array of payment tools. Fifth, strengthen the bond market’s targeted support for technological innovation, with a particular focus on facilitating bond financing for high‑tech and strategic emerging‑industry enterprises; include high‑quality science‑and‑technology bonds in the benchmark market‑making lineup, and encourage the issuance of REITs in the fields of new infrastructure and science‑and‑technology industrial parks. In addition, proactively support the development of private equity and venture capital funds by implementing differentiated regulatory policies—streamlining registration and filing for high‑quality PE/VC funds—and guiding these funds to allocate more capital to technological innovation.
4. Recently, the market has been closely watching the pace of IPOs, and there have also been rumors that refinancing may be suspended. How does the CSRC view this?
A: Achieving sustainable development of the capital market requires carefully balancing supply and demand in both the primary and secondary markets. Without a well-functioning secondary market, the primary market’s financing function cannot be effectively realized. We remain committed to maintaining a steady and orderly IPO and refinancing process based on sound, evidence‑based principles, while also taking into account the secondary market’s capacity to absorb new issuances. By strengthening counter‑cyclical adjustments across both markets, we aim to foster more coordinated and balanced growth between the primary and secondary markets. The market will undoubtedly feel these changes.
5. Could you please elaborate on the specific considerations regarding the deepening of market-oriented reforms in mergers and acquisitions and restructuring?
A: Mergers and acquisitions (M&A) and corporate restructuring are vital mechanisms for optimizing resource allocation and invigorating market dynamism. Since 2019, the market has witnessed roughly 3,000 M&A and restructuring transactions annually, with aggregate deal values consistently exceeding RMB 1.5 trillion. Going forward, we will remain officely problem‑oriented, align with market needs, and deepen market‑based reforms in the M&A and restructuring space. First, we will appropriately enhance valuation flexibility for restructurings involving light‑asset, technology‑driven enterprises, thereby supporting high‑quality innovation offices in scaling up and strengthening through M&A and restructuring. Second, we will refine and improve review mechanisms such as the “small‑amount, fast‑track” process, extend the validity period of financial information required for equity‑issuance‑based restructurings, and further boost market efficiency. Third, we will introduce relevant rules governing listed companies’ targeted issuance of convertible bonds to acquire assets, thus diversifying payment methods in M&A and restructuring. Fourth, we will encourage central state‑owned enterprises to intensify their efforts to integrate listed companies through M&A and restructuring, channeling high‑quality assets into listed entities via these channels to further enhance the quality of listed companies.
6. Share repurchases play a crucial role in stabilizing stock prices and bolstering investor confidence. Could you please explain the CSRC’s considerations in supporting share repurchases?
A: Share repurchases are a widely adopted international practice that helps safeguard corporate investment value, enhance corporate governance, and diversify mechanisms for delivering returns to investors; they constitute a fundamental institutional arrangement in capital markets. In recent years, the China Securities Regulatory Commission has actively encouraged and supported listed companies in conducting share repurchases, leading to steady overall growth in the scale of buybacks in the A‑share market. Moving forward, we will work with relevant authorities to further refine the share‑repurchase framework, enabling more listed companies to use buybacks to stabilize and bolster stock prices, protect shareholder rights, and strengthen the foundation for stable market operations. To this end, we will accelerate revisions to the repurchase rules by relaxing eligibility criteria for companies facing sharp declines in share prices, easing restrictions on newly listed offices, and loosening constraints on the timing of repurchases, thereby enhancing the convenience of implementing such programs. At the same time, we will encourage eligible listed companies to proactively engage in share repurchases, and urge those that have already announced repurchase plans to expedite implementation, increase the scale of buybacks, and promptly send positive market signals.
7. Recently, the market has been closely watching major shareholders’ share reductions. What are your plans for further improving the share‑reduction regime and strengthening oversight of such activities?
Answer: Major shareholders, directors, supervisors, and senior executives constitute the “key minority” of listed companies and bear specific obligations and special responsibilities in the company’s operations, development, and governance. They are required to effectively safeguard the interests of the company and its minority shareholders. The Securities Law, the Company Law, and relevant regulatory rules set forth clear provisions regarding holding periods, sale quantities, and other aspects for major shareholders, directors, supervisors, and senior executives. These parties must strictly comply with such regulations and may not circumvent share‑reduction restrictions in any manner. Recently, we have clarified our regulatory stance on share reductions by major shareholders, directors, supervisors, and senior executives arising from divorce, dissolution, or corporate split, thereby closing potential regulatory loopholes.
Going forward, the China Securities Regulatory Commission will continue to strengthen oversight of share‑reduction activities. On the one hand, it will resolutely crack down on violations, promptly and rigorously addressing instances of over‑proportionate reductions, failure to disclose reductions, and circumvention of restriction‑based reduction rules. By comprehensively employing administrative regulatory measures, administrative penalties, self‑regulatory actions, and trading restrictions, the Commission will impose severe sanctions on violators, deter misconduct, and uphold order in the capital market. On the other hand, it will closely monitor market concerns regarding shareholder share reductions, conduct thorough analysis and in-depth assessments, and, as appropriate, explore ways to refine the reduction‑related rules, further standardizing the behavior of major shareholders, directors, supervisors, and other relevant parties, thereby enhancing the effectiveness of institutional constraints.
8. Recently, there has been considerable discussion in the market about implementing a T+0 trading regime for the stock market. What is the CSRC’s view on this, and is it planning to introduce such a system?
A: Whether China’s stock market should adopt T+0 trading has been the subject of extensive debate in recent years, with significant disagreements across various sectors. We believe that, objectively speaking, T+0 trading can play a positive role in diversifying trading strategies and boosting market activity. However, it is also important to recognize that listed companies’ stock price movements are fundamentally driven by their quality and operational performance, meaning that T+0 trading would have only limited medium- to long-term effects on market valuations. At present, the A-share market is dominated by retail investors, with small individual investors holding less than RMB 500,000 in equities accounting for 96% of the investor base. Introducing T+0 trading at this stage could amplify risks associated with speculative trading and market manipulation—particularly given the widespread use of algorithmic trading by institutional investors. Such a move would further disadvantage retail investors and undermine fair market practices. In our view, the timing is not yet right for implementing T+0 trading.
9. Recently, there have been numerous calls from investors to reduce the stamp duty rate on securities transactions. How does the China Securities Regulatory Commission view this?
A: We have noted the market’s calls and concerns regarding a reduction in the securities transaction stamp tax rate. Historically, adjustments to the securities transaction stamp tax have played a positive role in lowering transaction costs, boosting market activity, and delivering broad-based benefits. For specific details, we recommend consulting the relevant authorities.
10. In March this year, the new regulations on overseas listings officially came into effect, and the China Securities Regulatory Commission stated that it would introduce more “green-light” cases. Could you please update us on the progress in this area and outline your plans for the next steps?
A: Since the implementation of the new regulations on overseas listing filings, companies have been actively and enthusiastically submitting filing materials, resulting in a marked increase in the number of applicants. We have continuously refined the compliance standards and requirements for filings, strengthened regulatory communication and coordination between domestic and overseas authorities, and steadily advanced the filing process. To date, 19 enterprises across various sectors have completed their filings for overseas listings in Hong Kong and the United States. Going forward, we will continue to ensure smooth channels for companies seeking overseas listings and introduce more “green‑light” cases that meet the criteria, including those involving Variable Interest Entity (VIE) structures and platform‑based enterprises—areas of particular market interest. At the same time, we will work to establish a more transparent, efficient, and streamlined regulatory coordination mechanism for overseas listings, respect companies’ lawful, compliant, and autonomous choices regarding their overseas listing venues, and support eligible enterprises in leveraging both domestic and international markets and resources to achieve sound and sustainable development.
11. The bond market is an important component of the capital market. Could you please elaborate on the considerations for implementing the policy directive to “revitalize the market and bolster confidence”?
A: Since the beginning of this year, we have adhered to the principle of seeking progress while maintaining stability, and have made concerted efforts to ensure the bond market plays its role effectively, yielding positive results. In support of stable growth, we have promoted the coordinated development of corporate bonds, enterprise bonds, asset-backed securities (ABS), and real estate investment trusts (REITs). From January to July this year, the exchange‑traded bond market raised a total of RMB 7.32 trillion through various types of bond issuances, surpassing last year’s full‑year level. Notably, science and technology innovation bonds exceeded RMB 167 billion, and green bonds surpassed RMB 90 billion. As of the end of July, 32 REIT projects had been issued and listed, raising nearly RMB 100 billion in aggregate. On the front of institutional reforms, we have implemented the Party and State institutional reform plan, ensuring the efficient and smooth transfer of responsibilities for corporate bonds. We have also released and put into effect measures to reform the corporate bond registration system and guidelines to enhance the professional standards of intermediary institutions, thereby advancing the comprehensive implementation of the bond registration reform. With regard to managing key risks, we have strengthened risk‑prevention mechanisms in critical sectors such as local government financing vehicles and the real estate industry, resulting in an overall trend of declining default risks.
Going forward, we will introduce additional measures to stabilize market expectations and bolster investor confidence, thereby invigorating the bond market. First, we will comprehensively enhance the vitality and quality of bond market operations. This includes deepening reforms on the investment side, enabling banking institutions to participate fully in exchange‑traded bond markets; expanding the pool of bond market makers; steadily advancing reforms to the quote‑driven pricing system; and further opening up the bond market to international investors. Second, we will accelerate the regular issuance of REITs and their high‑quality expansion. We will launch REIT‑related indices and REIT index funds, refine the REIT valuation framework and issuance‑pricing mechanisms, cultivate a professional base of REIT investors, and expedite the interconnection between the domestic REIT market and the Hong Kong market. Third, adhering to a risk‑averse mindset, we will spare no effort to manage risks in key sectors such as real estate and local government financing vehicles (LGFVs). In response to the profound shifts in supply and demand in the real estate market, we will continue to ensure the effective implementation of capital‑market policies and measures designed to support the sector’s stable and sound development. We will maintain overall stability in equity and debt financing channels for property developers and support the reasonable financing needs of those operating normally. Following a case‑by‑case approach, we will prudently mitigate the risk of bond defaults among large real estate offices. At the same time, we will strengthen risk monitoring and early warning for LGFV bonds, prioritizing the prevention of defaults on publicly traded bonds and non‑standard debt instruments, and making every effort to safeguard the smooth functioning of the bond market.

Branches of the People’s Bank of China held unveiling ceremonies today, restoring the provincial branch system.
On August 18, the People’s Bank of China held unveiling ceremonies at its branches in all 31 provinces, autonomous regions, and municipalities directly under the central government, thereby reinstating the provincial branch system.
The People’s Bank of China formerly had nine regional branches, namely the Shanghai Branch, Tianjin Branch, Shenyang Branch, Nanjing Branch, Jinan Branch, Wuhan Branch, Guangzhou Branch, Chengdu Branch, and Xi’an Branch. In addition, the Head Office directly operated two business management departments, located in Beijing and Chongqing.
The institutional reform plan unveiled in March this year proposed a coordinated approach to restructuring the branches of the People’s Bank of China, including the abolishment of the PBC’s regional branches, branch business management departments, head office‑directly affiliated business management departments, and central sub‑branches in provincial capitals. It also called for the establishment of provincial‑level branches in 31 provinces, autonomous regions, and municipalities directly under the central government, as well as separately listed city branches in Shenzhen, Dalian, Ningbo, Qingdao, and Xiamen. Meanwhile, the Beijing Branch of the People’s Bank of China will retain the designation of the PBC Business Management Department, and the Shanghai Branch will share office space with the Shanghai Headquarters of the People’s Bank of China.
The unveiling of the provincial branch is only one component of this round of People’s Bank of China institutional reform. According to the reform plan, the restructuring also entails the devolution of certain supervisory functions at the head office level; county- and city-level branches of the People’s Bank of China will be abolished, with their respective responsibilities transferred to the prefecture- and city‑level central branches. In border regions or areas with substantial foreign‑trade settlement and exchange‑rate‑conversion activities, relevant administrative and service functions may, as required by operational needs, be performed through branch offices established under the prefecture- and city‑level central branches.
In addition, in accordance with the institutional reform plan, staff members of financial regulatory authorities will also be brought under unified and standardized management. The People’s Bank of China, the National Administration of Financial Regulation, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, as well as their branches and dispatched agencies, all operate on administrative staffing allocations, and their personnel are subject to the unified and standardized management of the national civil service, with salaries and benefits aligned with the national civil service standards.

Implementing requirements for tiered and categorized management, several banks have lowered account transaction limits.
Recently, several banks have issued announcements lowering transaction limits for non‑counter channels. In explaining the rationale behind these reductions, many banks stated that the measures are primarily aimed at safeguarding funds against fraud and complying with requirements for the categorized and tiered management of personal bank accounts.
Industry insiders say this move will help commercial banks better manage non‑counter service outlets and their own liquidity, but it will also require striking a balance between customer convenience and security.
The adjustment of the account scope is slightly different.
Recently, several banks—including the Inner Mongolia Branch of China Construction Bank, Qingdao Bank, the Tianjin Branch of Bank of China, Nanjing Bank, Zhangshu Rural Commercial Bank, and Liangshan Rural Commercial Bank—have issued announcements adjusting transaction limits for non‑counter channels.
Specifically, the accounts subject to limit adjustments vary across banks. For example, Qingdao Bank’s adjustments apply to corporate accounts, while the Tianjin Branch of the Bank of China, the Inner Mongolia Branch of the China Construction Bank, Zhangshu Rural Commercial Bank, and Liangshan Rural Commercial Bank target personal bank settlement accounts; in most cases, these adjustments are tailored on a case-by-case basis, taking into account each account’s historical usage patterns.
According to an announcement by Liangshan Rural Commercial Bank, the bank will adjust, on a case-by-case basis, the transaction limits for certain accounts on non-counter channels—including online banking, mobile banking, online payments, self-service devices, and POS terminals—based on the account holder’s age, identity, and account usage patterns.
Fujian Straits Bank has clarified that the scope of its adjustments covers existing individual RMB settlement bank accounts that have not been assigned non‑counter payment limits, including accounts that have not recorded any active transactions for the past six months or longer, accounts that do not have a mobile phone number registered with the bank and verified as the account holder’s real name, and accounts with incomplete personal identification information on file (including name, type of identification document, document number, expiration date of the document, gender, nationality, occupation, contact telephone number, residential or work address, and employer’s name).
The adjusted limits vary across banks. Fujian Straits Bank stated that, effective from the date of the adjustment, the non‑counter transfer limit for the aforementioned personal RMB settlement accounts will be no more than RMB 5,000 per day and no more than RMB 100,000 per month. Qingdao Bank indicated that the daily transaction limit for certain personal accounts will be revised to below RMB 5,000.
Preventing financial losses due to fraud
Regarding the adjustment to user account transaction limits, several banks stated that this measure is intended to strengthen efforts to combat telecom and online fraud and other illegal activities, thereby safeguarding funds from fraudulent losses. It also aims to implement the requirements for tiered and categorized management of personal bank accounts.
Wu Dan, a researcher at the Bank of China Research Institute, stated that adjusting account transaction limits is an important measure for banks to manage and mitigate risks. Large‑value transactions conducted through non‑counter channels are more difficult to verify in terms of the customer’s true intent, and once such transfers are completed, they are often hard to reverse; therefore, it is essential to strengthen real-time transaction monitoring. By leveraging technological tools to identify customers’ everyday transaction patterns, conducting timely risk assessments, and imposing account restrictions on suspicious activities, banks can effectively safeguard their customers’ funds.
The People’s Bank of China’s “Notice on Matters Concerning the Improvement of Classified Management of Personal Bank Accounts” stipulates that individuals should be effectively guided to safeguard the security of their account funds and information through the account classification management system. Banks are required to strengthen monitoring of the abnormal opening of Type II and Type III accounts and of suspicious transactions.
In fact, banks have long been adjusting transaction limits. Different institutions implement dynamic adjustments based on factors such as customer usage patterns, regulatory requirements, and risk‑mitigation measures. According to Bo Wenxi, Chief Economist at IPG China, setting reasonable transaction caps helps banks better manage non‑counter‑channel transactions and their liquidity; however, it is also essential to strike a balance between convenience and security for customers, while strengthening customer education and guiding excess demand toward in‑branch services.
Relevant banks advise that if your account’s transaction limits do not meet your settlement needs, corporate account holders may visit their account‑opening bank to request an increase in the limit, bringing along the company’s official seal, the bank‑registered chop, the original or a copy of the business license, and the original or a copy of the legal representative’s ID card. (If someone else is handling the application on your behalf, please also provide a power of attorney from the legal representative and the original identification document of the authorized representative.) For personal bank accounts, you may bring your own identification and debit card to a nearby branch to inquire about or process the matter; if you have large‑value transaction requirements, please also submit the relevant supporting documentation. If you have any questions, please contact the branch where your account was opened.

The China Development Bank plans to issue offshore U.S. dollar bonds to help boost onshore U.S. dollar liquidity.
On August 16, the China Development Bank announced that it plans to issue offshore U.S. dollar bonds in the near future to help bolster domestic U.S. dollar liquidity. The proceeds from these bonds will be primarily used to support the development and expansion of business within the Shanghai Free Trade Zone, facilitating its further alignment with high-standard international economic and trade rules and accelerating its integration into global markets and the international financial system.
It is reported that, since 2017 when it began conducting financial business related to the Shanghai Free Trade Zone, the China Development Bank has actively supported the zone’s trade‑innovation initiatives, proactively addressing the multi‑currency financing needs of enterprises within the zone. The bank has provided loan financing for projects in areas such as infrastructure development, international financial cooperation, and the overseas expansion of Chinese‑invested enterprises, thereby leveraging the Shanghai Free Trade Zone’s role as a pioneer in piloting new policies and contributing developmental finance to deepen financial reform and further opening up. At the same time, the China Development Bank has made effective use of both domestic and international capital markets to raise funds; since 2018, it has cumulatively raised over USD 1.2 billion equivalent to support the development of FTZ‑related businesses, helping the Shanghai Free Trade Zone deliver impressive results.
The backdrop to the China Development Bank’s planned issuance of offshore U.S. dollar bonds is that, on July 20, the People’s Bank of China and the State Administration of Foreign Exchange decided to raise the macroprudential adjustment parameter for cross-border financing by enterprises and financial institutions from 1.25 to 1.5. This marks the first time the parameter has been increased to 1.5.
Flexibly adjusting the macroprudential policy parameters for cross-border financing is one of the key measures for refining the macroprudential framework for cross-border financing across all sectors, safeguarding national financial security, and bolstering the resilience of economic recovery.
Du Yang, a researcher at the Bank of China Research Institute, stated that the macroprudential adjustment parameter for cross-border financing serves as a calculation factor in the “cap on the risk‑weighted balance of cross‑border financing.” When this parameter is increased, the cap rises accordingly, allowing domestic enterprises to access larger amounts of overseas funding. On the one hand, this can effectively attract foreign capital inflows and improve capital flows, particularly by broadening financing channels for small and medium-sized enterprises and private offices. On the other hand, it increases the supply of U.S. dollars within China, helps balance supply and demand in the foreign‑exchange market, and contributes to the stability of the renminbi exchange rate.
“The higher the macroprudential adjustment parameter for cross-border financing, the greater the upper limit on the amount that enterprises and financial institutions can raise through cross-border channels,” said Wang Qing, Chief Macro Analyst at Orient Golden Credit. He added that this measure will not only help small and medium-sized enterprises and private offices better tap a variety of domestic and international funding sources, but will also directly boost onshore U.S. dollar liquidity.
Against this backdrop, the China Development Bank’s recent issuance of offshore U.S. dollar bonds underscores its continued confidence in the medium- to long-term upward trajectory of the RMB exchange rate. Industry insiders note that financial institutions can apply to borrow overseas funds on an as-needed basis, thereby making fuller use of both domestic and international markets to diversify their financing channels and better meet the external‑debt financing needs of the domestic market.
In Du Yang’s view, following the upward adjustment of the macroprudential regulatory parameters for cross-border financing, domestic enterprises’ demand for U.S. dollar‑denominated funding has increased. By issuing offshore U.S. dollar bonds and raising U.S. dollar funds abroad for subsequent deployment within China, banks can effectively meet this growing financing demand, expand the domestic supply of U.S. dollars, enhance market liquidity, and fully realize the significance of adjusting these macroprudential parameters. At the same time, this measure provides robust support for maintaining the stability of the renminbi exchange rate.

The central bank: Make full use of all macroeconomic policy tools and resolutely guard against the risk of excessive exchange-rate volatility.
On the 17th, the People’s Bank of China released its Report on the Implementation of China’s Monetary Policy for the Second Quarter of 2023. The report stated that a prudent monetary policy should be both precise and effective, fully leveraging the dual functions—both aggregate and structural—of monetary policy tools to officely support the recovery and development of the real economy. It also emphasized making full use of various policy‑adjustment reserves to balance supply and demand in the foreign‑exchange market, correct pro‑cyclical and one‑sided market behaviors, and resolutely guard against the risk of excessive exchange‑rate volatility.
Create new tools when necessary.
“Macroeconomic conditions are expected to continue improving, and financial data will become more closely aligned with economic indicators going forward,” the report notes. It further observes that, at present, financial data generally lead economic data—a temporary phenomenon driven by proactive macroeconomic and monetary policies and the lagged recovery of the real economy. Economic recovery is a process characterized by wave-like dynamics and a tortuous path, with both consumption and broader economic activity requiring time to fully rebound.
The report states that the fundamental factors underpinning China’s long-term economic improvement remain unchanged. The momentum for high-quality development is steadily building, and ample policy room remains to address unexpected challenges and shifts. We should exercise patience and maintain confidence in the economy’s sustained, stable growth.
“The prudent monetary policy should be both precise and effective, better leveraging the dual functions of monetary policy tools—both in terms of overall quantity and structural adjustments—to officely support the recovery and development of the real economy,” the report stated. It further noted that a diversified array of monetary policy tools will be employed to ensure reasonably ample liquidity, with the growth rates of money supply and total social financing broadly aligned with nominal economic growth. Structural policy tools should continue to focus on priority areas, be appropriately calibrated, and be adjusted as needed in response to evolving economic and financial conditions, thereby sustaining efforts to encourage financial institutions to step up support for key sectors and weak links. When necessary, in accordance with the decisions and arrangements of the CPC Central Committee and the State Council, new instruments may be introduced to better serve high-quality economic development.
Dong Ximiao, chief researcher at China Merchants Bank, believes that China’s monetary policy has ample room for adjustment, with a rich array of policy tools and substantial policy reserves, creating favorable conditions to step up implementation. “At present, the weighted average reserve requirement ratio for financial institutions stands at around 7.6%, leaving some room for further reduction. At the same time, we need to deepen interest-rate marketization reforms to guide market rates lower,” Dong Ximiao said.
Adjusting supply and demand in the foreign exchange market
Recently, the RMB exchange rate has been drawing close attention from the market. Following the release of the report, the offshore RMB–USD exchange rate staged a short‑term rally, briefly regaining ground above the 7.3 level. The report noted that, overall, the current RMB exchange rate remains aligned with economic fundamentals, and the foreign‑exchange market is operating in an orderly manner.
“The RMB exchange rate reflects the relative value of the RMB against other currencies and is influenced by a variety of domestic and external factors, making it highly uncertain in the short term and difficult to predict. However, over the longer term, it fundamentally hinges on economic fundamentals,” the report notes. At present, whether viewed through the lens of external or internal factors, the RMB exchange rate is unlikely to depreciate unilaterally; instead, it will continue to exhibit two-way volatility. Externally, with the Federal Reserve’s rate‑hiking cycle nearing its end, the momentum for a sharp appreciation of the U.S. dollar is limited. Internally, China’s economy remains underpinned by long-term favorable fundamentals, and as economic cycles become smoother, the sustained overall improvement in economic performance will provide support for the RMB exchange rate.
Looking ahead, the report notes that, in the next phase, the People’s Bank of China and the State Administration of Foreign Exchange will resolutely implement the decisions and arrangements of the CPC Central Committee and the State Council. With the goal of keeping the RMB exchange rate broadly stable at an appropriate and balanced level, they will leverage the advantages of a managed floating exchange rate regime—underpinned by market supply and demand and adjusted with reference to a basket of currencies—while adopting a comprehensive set of policy measures to stabilize market expectations. They will make effective use of all available regulatory and reserve tools to balance supply and demand in the foreign-exchange market, correct pro-cyclical and one-sided market behaviors, and officely guard against the risk of exchange-rate overshooting.
Zhao Wei, Chief Economist at Guojin Securities, believes that the People’s Bank of China’s recent confidence‑boosting measures, coupled with shifts in corporate and banking behavior—such as a waning willingness to convert foreign currency into RMB—are likely to moderate the pace of the renminbi’s depreciation. In the medium term, the trajectory of the renminbi exchange rate will hinge on how economic fundamentals evolve amid further policy support.
Prices are expected to bottom out and rebound.
The report concludes that prices are expected to bottom out and begin to rebound.
In the first half of the year, China’s inflation rate fluctuated downward, with the CPI year-on-year falling to zero in June and briefly turning to –0.3% in July. The report attributes this primarily to a temporary phenomenon driven by lags in demand recovery and base‑effect factors. At present, China is not experiencing deflation; the macroeconomy is steadily recovering, and broad money supply continues to grow at a relatively rapid pace—clearly distinguishing the current situation from typical historical episodes of deflation. Nor is there any risk of deflation in the second half of the year. Favorable factors supporting an improvement in supply‑and‑demand conditions are continuing to accumulate, household incomes are steadily rebounding, consumer sentiment is gradually strengthening, and both durable‑goods and service consumption are picking up. Overall, inflation is likely already at its lowest level for the year.
The report emphasizes that, in recent months, pork prices have stabilized and begun to rebound, tourism‑related prices have risen markedly, and domestic refined oil prices have posted four consecutive increases. As a result, the CPI is expected to gradually pick up starting in August, following a U‑shaped trajectory for the year. Meanwhile, the PPI year‑on‑year rate bottomed out and turned upward in July, with the pace of decline likely to narrow going forward. Looking ahead over the medium to long term, China’s economy remains broadly balanced on the supply and demand side, monetary policy remains prudent, and household inflation expectations are stable, meaning there is no underlying basis for either prolonged deflation or persistent inflation.
Furthermore, in the real estate sector, the report states that, in response to the new circumstances marked by significant shifts in supply and demand, real estate policies will be adjusted and refined as appropriate to foster the stable and sound development of the housing market.
“The pace of adjustments to real estate policies is expected to accelerate,” said Wang Qing, Chief Macro Analyst at Orient Securities. He noted that potential measures could include guiding newly issued residential mortgage rates lower; on the basis of lowering deposit rates, swiftly reducing existing residential mortgage rates; and further easing purchase and loan restrictions in first-tier cities.

Commercial & Corporate
Relevant officials from the National Development and Reform Commission answered questions from reporters regarding the “Guiding Opinions on Promoting the Circular Utilization of Decommissioned Wind and Photovoltaic Equipment.”
Recently, the National Development and Reform Commission, in conjunction with the National Energy Administration, the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, the Ministry of Commerce, and the State-owned Assets Supervision and Administration Commission, issued the “Guiding Opinions on Promoting the Circular Utilization of Decommissioned Wind and Photovoltaic Equipment” (NDRC‑Huanzi [2023] No. 1030), hereinafter referred to as the “Guiding Opinions.” The “Guiding Opinions” represent China’s first policy document to systematically lay out measures for the circular utilization of decommissioned wind and photovoltaic equipment. To help all relevant parties accurately understand and implement the policy, responsible officials from the National Development and Reform Commission granted interviews and responded to questions from reporters.
Q: What is the background behind the issuance of the “Guiding Opinions”?
Answer: In recent years, China’s new‑energy industry has grown rapidly, with widespread deployment of wind‑power and photovoltaic equipment, and its installed capacity consistently ranking first worldwide. As the sector accelerates its upgrading and equipment undergoes replacement, a wave of decommissioned new‑energy assets is emerging. These retired units constitute a new category of solid waste; decommissioned wind‑power equipment is bulky and composed of complex materials, while decommissioned photovoltaic systems retain significant resource value. Recycling and reusing retired wind‑ and photovoltaic equipment is of great importance: it enables the efficient recovery of scrap steel, non‑ferrous metals, glass, and other recyclable resources, mitigates land occupation and environmental risks associated with improper disposal, and represents the final link in the green, low‑carbon, circular development of the wind‑ and photovoltaic industries. At present, some power‑generation companies, equipment manufacturers, and recycling offices in China have begun exploring technologies and application scenarios for the circular utilization of decommissioned wind‑ and photovoltaic assets, accumulating valuable experience. However, this work remains in its early stages: responsibilities for handling retired equipment are unclear, specialized recycling enterprises are few, business models are still immature, and practices such as the indiscriminate incineration or landfilling of discarded wind‑turbine blades and photovoltaic modules persist.
The report to the 20th National Congress of the Communist Party of China explicitly calls for accelerating the green transformation of development models, implementing a comprehensive conservation strategy, and speeding up the establishment of a circular economy for waste. In 2021, the State Council issued the Action Plan for Peaking Carbon Emissions Before 2030, which mandates “promoting the circular utilization of emerging‑industry waste, such as retired power batteries, photovoltaic modules, and wind turbine blades.”
To comprehensively implement the spirit of the 20th National Congress of the Communist Party of China and to fulfill the requirements set forth in the Action Plan for Peaking Carbon Emissions Before 2030, the National Development and Reform Commission, in collaboration with relevant departments, has jointly issued the “Guiding Opinions” based on in-depth research and extensive consultation. The document clarifies the overall requirements, key objectives, priority tasks, and supporting measures for the circular utilization of decommissioned wind and photovoltaic equipment, thereby accelerating the development of the resource‑circulation industry.
Q: What work objectives does the “Guiding Opinions” set forth?
A: Taking into account factors such as the stage of industrial development, equipment types, and decommissioning circumstances, the Guiding Opinions set out work objectives for the circular utilization of decommissioned wind and photovoltaic equipment in two phases—2025 and 2030—covering responsibility mechanisms, standard systems, technological innovation, and industrial cultivation. By 2025, a basic responsibility mechanism for handling decommissioned equipment from centralized wind farms and photovoltaic power stations will be established; relevant standards and specifications for the circular utilization of decommissioned wind and photovoltaic equipment will be further refined; and breakthroughs will be achieved in key technologies for resource circulation. By 2030, the full‑process circular utilization technology system for wind and photovoltaic equipment will be essentially mature; resource‑circulation models will be more robust; resource‑circulation capacity will be effectively aligned with the scale of decommissioning; standards and specifications will be further improved; the level of resource circulation in the wind and photovoltaic industries will see a significant enhancement; and a number of industrial clusters specializing in the circular utilization of decommissioned wind and photovoltaic equipment will have emerged.
Q: What tasks does the “Guiding Opinions” outline?
Answer: The “Guiding Opinions” propose actively establishing a circular‑economy system for wind and photovoltaic equipment that covers green design, standardized recycling, high‑value utilization, and harmless disposal, and set out six key tasks. First, vigorously promote green design by guiding manufacturers to adopt lightweight, easily disassembled, transportable, and recyclable designs during the product design and production phases. Second, establish and improve a responsibility mechanism for handling decommissioned equipment, requiring centralized wind‑power and photovoltaic‑power generation enterprises to assume legal obligations for managing such equipment, with power‑generation companies incorporating waste recycling and proper disposal as critical components of wind‑farm renovation and upgrading projects. It also calls for implementing relevant requirements on the trading and transfer of state‑owned assets, further optimizing the institutional framework for the treatment and disposal of retired state‑owned wind and photovoltaic equipment. Third, refine the equipment‑recycling system by supporting photovoltaic‑equipment manufacturers in setting up distributed PV‑equipment recycling networks, encouraging third‑party professional recycling and “one‑stop” service models, and promoting on‑site, nearby, or centralized dismantling of wind turbines after decommissioning. Fourth, strengthen resource‑recovery capabilities by encouraging recycling enterprises to carry out precision dismantling and high‑level recycling of retired wind and photovoltaic equipment, and supporting leading offices in accelerating the development of industrialized recycling capacities for complex materials. Fifth, advance equipment remanufacturing in a prudent manner, actively promoting the remanufacturing of high‑value components from wind‑power equipment and key parts such as photovoltaic inverters, while cautiously and systematically exploring the application of remanufactured components in the operation and maintenance of new‑energy systems. Sixth, standardize the environmentally sound disposal of solid waste by intensifying oversight of environmental pollution prevention and control throughout the entire process of recycling, utilization, and disposal of retired wind and photovoltaic equipment.
Q: What safeguard measures does the “Guiding Opinions” propose?
Answer: The “Guiding Opinions” clearly strengthen supporting measures by detailing relevant arrangements across several areas, including technological R&D, financial and policy support, standard‑setting frameworks, and industrial development. First, intensify efforts in technological R&D: research on the recycling and reuse of decommissioned wind and photovoltaic equipment will be incorporated into key special projects under the National Key R&D Program. Second, bolster financial and policy support: central budgetary investment will be leveraged to fund projects related to the recycling and reuse of decommissioned wind and photovoltaic equipment; relevant tax incentives will be implemented in accordance with the law; and the industry for recycling and reusing such equipment will be considered for inclusion in the Catalogue of Green Industries. In addition, green financial products and services will be expanded to provide financing conveniences for eligible projects in this field, while localities with the necessary conditions are encouraged to formulate targeted support policies for this emerging industry. Third, improve the standards and regulatory framework: develop standards and specifications for the green design and comprehensive utilization of wind and photovoltaic equipment, and establish technical guidelines for the prevention and control of environmental pollution caused by discarded wind and photovoltaic systems. Fourth, foster leading regions and enterprises: taking into account regional production and decommissioning patterns of wind and photovoltaic equipment, guidance and support will be provided to select key areas to establish industrial clusters dedicated to the recycling and reuse of retired new‑energy equipment. Central state‑owned enterprises will be encouraged to play a pioneering role, taking the lead in enhancing the recycling and reuse of decommissioned wind and photovoltaic equipment and launching a number of flagship projects.

China’s first blue book on ecological protection red lines has been officially released.
At the main venue of the first National Ecological Day on August 15, the China Institute of Land Surveying and Planning unveiled its newly compiled “China Ecological Protection Red Line Blue Book (2023)” (hereinafter referred to as the “Blue Book”) to the public for the first time. This is China’s first blue book on ecological protection red lines, systematically summarizing the process, methodologies, outcomes, and practical case studies of fully delineating these red lines, while also putting forward ideas and recommendations for strengthening oversight of the ecological protection red lines and further improving the institutional framework governing them.
The ecological protection red line is a landmark achievement and a major institutional innovation in the building of an ecological civilization. In conjunction with the preparation of the National Territorial Spatial Planning Outline (2021–2035), the Ministry of Natural Resources, working together with the Ministry of Ecology and Environment, the National Forestry and Grassland Administration, and other relevant departments, has for the first time comprehensively delineated the national terrestrial and marine ecological protection red lines, ensuring that a single red line governs critical ecological spaces and offering a Chinese solution to global ecological conservation and governance. Clear waters and lush mountains are not only natural resources and ecological assets but also social, economic, and cultural wealth. The ultimate goal of establishing ecological protection red lines is to promote high-quality development, turning a sound ecological environment into a source of well-being for the people, a pillar of sustained and healthy economic and social progress, and a platform for showcasing China’s positive image.
This plan designates ecological protection red lines covering a total area of approximately 3.19 million square kilometers, of which about 3.04 million square kilometers are on land—accounting for more than 30 percent of China’s terrestrial territory—and roughly 150,000 square kilometers are in marine areas. By establishing these ecological protection red lines, the most critical natural ecosystems, the most distinctive landscapes, the finest natural heritage sites, and the regions with the highest biodiversity in China have been comprehensively safeguarded. This approach ensures large-scale, holistic conservation of vital natural resources, ecological spaces, and rare and endangered species and their habitats, thereby leaving future generations a precious natural legacy and a beautiful homeland characterized by lush mountains and clear waters.
According to reports, the delineation and management of ecological protection redlines have consistently been guided by Xi Jinping’s Thought on Ecological Civilization, deeply understanding and applying the worldview and methodology of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. Overall, the work has adhered to “six principles”: First, upholding a systems‑based approach, viewing development and security from the perspective of harmonious coexistence between humanity and nature, and using territorial spatial planning as the basis. Ecological, agricultural, and urban spaces—along with ecological protection redlines, permanent basic farmland protection redlines, and urban development boundaries—are treated as inviolable redlines for adjusting the economic structure, guiding industrial development, and advancing urbanization, thereby promoting a green and low‑carbon transformation of development models and accelerating the establishment of green production and lifestyle patterns. Second, maintaining a bottom‑line mindset, officely embracing the concept that mountains, rivers, forests, farmland, lakes, grasslands, and deserts constitute a community of life. Based on assessments of resource and environmental carrying capacity and the suitability of territorial space for development, areas of extremely important ecological functions, extreme ecological vulnerability, or potential high ecological value are designated as ecological protection redlines, including integrated and optimized nature reserves. This safeguards the national ecological security baseline, fortifies the national ecological security barrier, and helps shape a spatial pattern that conserves resources and protects the environment. Third, putting people first, emphasizing the organic integration of production, living, and ecology; strengthening ecological functions in densely populated urban agglomerations and metropolitan areas; creating more urban “green hearts” and “green lungs”; ensuring that the general public can readily enjoy beautiful ecosystems such as clear waters and lush mountains; and permitting limited human activities within the ecological protection redlines, provided they do not undermine ecological functions, thus turning a sound ecological environment into universally shared well‑being. Fourth, fostering self‑confidence and independence, fully leveraging China’s regional and diverse endowments of land and resources, guiding localities to capitalize on their unique resource endowments, and incorporating precious natural heritage and rich landscape resources—key symbols of a beautiful homeland and vital strategic assets for high‑quality development—into the ecological protection redlines, transforming redlines into strengths and paving the way for the “Two Mountains” theory. Fifth, pursuing global ecological civilization in concert, with the scope of ecological protection redlines encompassing all of China’s globally significant biodiversity hotspots and over 90 percent of its typical ecosystem types, while also comprehensively including internationally important wetlands, thereby establishing a global biodiversity conservation network. Sixth, implementing full‑life‑cycle management: integrating ecological protection redlines into the unified territorial spatial planning framework, ensuring consistency among data, lines, and maps, and translating these plans into physical space; establishing a monitoring network for the implementation of territorial spatial plans; conducting regular monitoring and evaluations of conservation outcomes; and strengthening comprehensive, full‑life‑cycle oversight to put the strictest ecological protection regime into practice, guaranteeing that the redlines are effectively delineated, rigorously enforced, and deliver tangible results.
It is reported that China will further optimize the spatial development pattern of its territory, using ecological protection redlines as the green foundation for building a Beautiful China. By leveraging initiatives such as establishing a nature reserve system centered on national parks and implementing ecological conservation and restoration projects, the country will refine the functional spatial structure of agriculture, ecology, and urban areas, thereby providing high‑quality territorial space to underpin high‑quality development and fostering new momentum and competitive advantages for both urban and rural areas. Furthermore, China will strengthen the system of functional zones, deepen reforms of the property rights regime for natural resource assets, improve the system of land‑use control, and broaden pathways for realizing the value of ecological products and translating the “Two Mountains” concept into practice. By creating and enhancing spatial value through diversified ecological products and regionally distinctive offerings, China will facilitate the transformation of natural resources into assets, capital, and financial resources, turning ecological strengths into developmental advantages. In addition, China will advance the establishment of a digital governance framework for a Beautiful China, adhering to the principles of unified base maps, unified standards, unified planning, and a unified platform, and accelerating the development of digital and smart land management. Ecological protection redline oversight will be integrated into this digital governance system, with efforts focused on becoming a contributor to and leader in the construction of a digital ecological civilization.
In addition, the Blue Book has compiled a selection of exemplary local cases to help the public better understand the practical experiences gained in delineating and managing ecological protection red lines across different regions. This effort seeks to strengthen the sense of identity and belonging among all citizens toward a beautiful homeland and a thriving environment, while fostering a collective awareness and intrinsic motivation throughout society to safeguard the ecosystem and advance green development. Ultimately, it aims to create a favorable landscape of co‑construction, co‑governance, and shared benefits in ecological civilization, paving the way for a new path of high‑quality development that prioritizes ecology and is guided by green growth.

The General Administration of Customs has introduced 23 reform measures for comprehensive bonded zones.
To further promote the high-quality development of comprehensive bonded zones, the General Administration of Customs recently unveiled 23 reform measures across five key areas: policy support, functional expansion, streamlined procedures, optimized workflows, and institutional improvement.
Specifically, the aforementioned reform measures primarily include adjusting and optimizing inspection and quarantine procedures, streamlining the release‑from‑supervision formalities for production‑use equipment, implementing classified and tiered management at checkpoints, enhancing supervision of goods returned from abroad, supporting the quality improvement and upgrading of bonded repair services, and revising management measures for key commodities.
In terms of streamlining process oversight, relevant reform measures include optimizing the release‑verification logic for goods entering and exiting comprehensive bonded zones to support the consolidation and deconsolidation of multiple types of cargo; refining the “one manifest, multiple vehicles” procedure for inbound and outbound cargo, allowing certain categories of goods to be declared as a whole and delivered in separate shipments, with each vehicle entering or leaving the zone individually; and enhancing supervision of returned goods from abroad by reducing the proportion of on‑site and documentary inspections.
In terms of expanding functional business formats, relevant reform measures include dynamically adjusting the bonded repair catalog to incorporate more low‑risk products that are high‑tech, high‑value‑added, and environmentally compliant; supporting comprehensive bonded zones in offering bonded training services for aviation flight simulators and large medical equipment, thereby meeting domestic market demand and scaling up bonded training operations; and permitting duty‑free shop goods to be imported from abroad via comprehensive bonded zones, enabling enterprises to flexibly adjust their business strategies, broaden sales channels, and promote the integrated development of duty‑free and bonded trade.
According to incomplete statistics, the number of employees in customs special regulatory zones has exceeded 2.4 million, with nearly 9,000 employees per square kilometer. In this reform, the General Administration of Customs has also proposed supporting unified planning within comprehensive bonded zones and establishing, as needed, essential production‑related support facilities such as canteens, charging stations, and parking lots, thereby providing greater convenience for workers in these zones.
At the meeting, Chen Zhenchong, Director-General of the Department of Free Trade Zone and Special Area Development at the General Administration of Customs, stated that, going forward, the General Administration will, in accordance with the principle of advancing one measure as it matures, organize and carry out supporting implementation tasks such as drafting public notices, adjusting relevant systems, and conducting publicity and interpretation, so as to ensure the swift and effective rollout and tangible results of all reform initiatives.
Customs special regulatory zones, with comprehensive bonded zones as their core, serve as key platforms for opening up to the outside world, playing a vital role in expanding foreign trade, attracting foreign investment, and promoting industrial transformation and upgrading. As of now, there are 171 such special zones nationwide, including 161 comprehensive bonded zones, distributed across all 31 provinces, autonomous regions, and municipalities directly under the central government.

The State Council has issued the “Opinions on Further Optimizing the Foreign Investment Environment and Intensifying Efforts to Attract Foreign Investment.”
The State Council recently issued the “Opinions on Further Optimizing the Foreign Investment Environment and Intensifying Efforts to Attract Foreign Investment” (hereinafter referred to as the “Opinions”), calling for better coordination of both domestic and international priorities, the creation of a world-class business environment characterized by market‑orientation, rule of law, and internationalization, and the full leveraging of China’s ultra‑large‑scale market advantages. The document aims to attract and utilize foreign investment more vigorously and effectively, thereby contributing to the advancement of high‑level opening-up and the comprehensive building of a modern socialist country.
The “Opinions” set forth 24 policy measures across six key areas. First, enhance the quality of foreign investment utilization by intensifying efforts to attract foreign capital in priority sectors, leveraging the leading and catalytic role of comprehensive pilot programs for opening up the service sector, broadening channels for drawing in foreign investment, supporting the phased relocation of foreign-invested enterprises, and improving mechanisms for advancing foreign‑invested project implementation. Second, ensure national treatment for foreign‑invested enterprises by guaranteeing their lawful participation in government procurement, supporting their equal and lawful involvement in standard‑setting, and ensuring they equally benefit from relevant support policies. Third, continuously strengthen protection for foreign investors by refining mechanisms for safeguarding their rights and interests, reinforcing administrative protection of intellectual property, stepping up administrative enforcement in IP matters, and standardizing the formulation of foreign‑related economic and trade policies and regulations. Fourth, raise the level of convenience in investment and operations by optimizing policies on the residence and stay of foreign employees of foreign‑invested enterprises, exploring streamlined mechanisms for the secure cross‑border flow of data, coordinating and streamlining law‑enforcement and inspection activities involving foreign‑invested enterprises, and enhancing services and safeguards for such enterprises. Fifth, increase fiscal and tax support by bolstering funding for foreign‑investment promotion, encouraging reinvestment within China by foreign‑invested enterprises, implementing preferential tax policies applicable to these enterprises, and supporting their investments in sectors that the state encourages development. Sixth, improve methods for promoting foreign investment by refining mechanisms for attracting investment, facilitating overseas investment promotion, expanding channels for foreign‑investment outreach, and optimizing evaluation frameworks for foreign‑investment promotion.
The Opinions call on all regions, departments, and relevant entities to earnestly advance efforts to further optimize the business environment for foreign investment and intensify measures to attract foreign capital. Regions are encouraged to formulate tailored supporting measures in light of local conditions, thereby enhancing the synergy of policies. The Ministry of Commerce, in coordination with relevant departments and agencies, will strengthen guidance and coordination, effectively communicate policy initiatives, and ensure timely implementation of these measures, so as to create an even more favorable investment climate for foreign investors and bolster their confidence in investing in China.

Taxation
Multi-tax governance, a combination of multiple policy measures, and coordinated interagency collaboration.
Building a Beautiful China: Taxation Goes Hand in Hand
August 15 this year marked the first National Ecological Day. At the recently convened National Conference on Ecological and Environmental Protection, it was emphasized that the next five years will be a crucial period for building a Beautiful China. In recent years, guided by Xi Jinping’s Thought on Ecological Civilization, China has witnessed historic, transformative, and systemic changes in ecological civilization—both in theory and in practice—marking significant progress in the endeavor to build a Beautiful China.
Behind the drive to build a Beautiful China, tax‑related support has been ever‑present. The national tax system has thoroughly implemented the new development philosophy, actively integrated into the broader agenda of ecological progress, and continuously advanced the establishment of a tax framework characterized by multi‑tax governance, a policy mix tailored to diverse needs, and a coordinated, inter‑agency administration system. As a result, China’s green tax system—its “four pillars and eight beams”—has largely taken shape, covering the entire lifecycle of enterprises: from development and production to consumption and emissions. This green tax regime continues to provide robust support for transforming the economic growth model, upgrading and restructuring the industrial landscape, optimizing the energy mix, fostering innovation in energy‑saving and environmental‑protection technologies, and cultivating sustainable, eco‑friendly consumption patterns.
Multi‑tax governance: advancing ecological civilization through integrated planning at a higher strategic level.
In recent years, with the active participation and guidance of the tax authorities, green taxes—including the environmental protection tax, the resource tax, the farmland occupation tax, and the vehicle and vessel tax—have all been enacted into law, establishing a multi‑tax governance framework that has made a significant contribution to advancing ecological civilization and building a beautiful China.
In December 2016, the Environmental Protection Tax Law of the People’s Republic of China was reviewed and adopted by the Standing Committee of the National People’s Congress and officially came into effect on January 1, 2018, becoming China’s first standalone tax law specifically designed to promote green taxation and advance ecological civilization. On December 1, 2017, building on the pilot program in Hebei Province, the water resources tax was further extended to Beijing and eight other provinces, autonomous regions, and municipalities directly under the central government, thereby playing a pivotal role in regulating water conservation and curbing excessive extraction. On September 1, 2019, the Farmland Occupation Tax Law of the People’s Republic of China entered into force, reinforcing at a higher level and with greater intensity the strictest system for farmland protection and promoting the rational allocation of land resources. On September 1, 2020, the Resource Tax Law of the People’s Republic of China was formally implemented, codifying the outcomes of the ad valorem taxation reform into legal provisions and leveraging the resource tax to foster the efficient and intensive use of resources while safeguarding the ecological environment…
Green taxes, exemplified by the environmental protection tax, have been successively enacted and implemented through legislation, ensuring the effective application of the principle of tax legality and steadily strengthening the fiscal rigidity of the tax system. This has strongly encouraged enterprises to increase their investments in environmental protection, accelerated the shift from “passive emission reduction” to “proactive pollution control,” and supported a comprehensive green transformation of economic and social development.
Two sets of environmental monitoring data from Qinghai Province are particularly noteworthy: since 2018, the province has recorded average annual declines of 60% in sulfur dioxide emissions and 30% in nitrogen oxide emissions; meanwhile, chemical oxygen demand and ammonia‑nitrogen discharges have fallen by 27% and 34%, respectively. Throughout the steady improvement of Qinghai’s overall environmental conditions, the environmental protection tax—operating on the principle of “more emissions, more charges; less emissions, less charges; no emissions, no charges”—has served as a powerful incentive mechanism, effectively leveraging policy to drive progress.
“Since the introduction of the environmental protection tax, we have shifted our development philosophy and undertaken green‑development‑oriented upgrades and transformations,” said Zhang Junmin, CFO of Qinghai Huanghe Xinye Co., Ltd. As a large‑scale nonferrous metal smelting enterprise, the company has, guided by the environmental protection tax and other green taxes, proactively modernized its production equipment. It has successively commissioned new environmentally friendly facilities—including electrolytic purification, roasting purification, calcination desulfurization systems, and a wastewater treatment plant—thereby effectively reducing pollutant emissions from its premises.
As the “western gateway” of the Ningxia Hui Autonomous Region, Zhongwei City is situated at the head of the Yellow River’s front bend and serves as a vital ecological barrier for Ningxia and the broader northwest. In recent years, the Zhongwei tax authorities have, from four key perspectives—supporting environmental protection, promoting energy conservation and environmental friendliness, encouraging the comprehensive utilization of resources, and fostering the development of low‑carbon industries—fully implemented a total of 56 tax and fee preferential policies aimed at green development, thereby providing robust support for ecological protection and high‑quality development in the Yellow River Basin.
“Building a beautiful China where humanity and nature coexist in harmony cannot be achieved without effective pollution control, and taxation, as an important tool of macroeconomic regulation, plays a pivotal role in this process,” said Li Xuhong, Director of the Institute of Fiscal and Tax Policies and Applications at the National Accounting Institute, Beijing, and a professor.
A multi-pronged policy mix: more concrete measures to provide positive incentives for enterprises to upgrade and transform.
From the perspective of China’s green tax system, it encompasses not only the environmental protection tax levied directly on pollutant emissions, but also other green taxes—such as resource taxes, consumption taxes, and vehicle and vessel taxes—that are either directly or indirectly related to ecological and environmental protection. In addition, tax policies under value-added tax and corporate income tax address areas such as the comprehensive utilization of resources and environmental protection.
It is understood that the state has implemented a series of preferential policies to promote contract energy management projects, ensure residential heating supply, advance green transformation in industries such as battery manufacturing and building materials, and support the use of new‑energy vehicles and vessels—measures aimed at improving air and water quality and effectively controlling soil pollution. In encouraging the comprehensive utilization of resources, tax incentives have been extended to areas including waste recycling, wastewater and solid‑waste treatment, and the efficient use of mineral resources, with a strong focus on enhancing resource‑use efficiency. Meanwhile, to foster the development of low‑carbon industries, tax‑benefit policies have been introduced to bolster the development and deployment of clean energy sources such as solar, wind, hydro, and nuclear power, thereby providing robust support for the orderly and scientifically sound achievement of the carbon‑peak and carbon‑neutral goals and for building a modernized economic system.
A multi‑pronged package of tax incentives is encouraging an increasing number of traditional enterprises to upgrade their production processes and ramp up investment in environmental protection equipment, shifting from a mindset of “being required to transform” to one of “choosing to transform” and proactively embarking on a green development path characterized by pollution reduction, waste utilization, and carbon mitigation.
Shanxi Yangmei Jiuzhou Energy‑Saving and Environmental Protection Technology Co., Ltd. is a high‑tech enterprise that integrates the development, consulting, promotion, and testing of environmental protection and energy‑saving technologies. “In the past, the company consistently faced the challenge of excessively high energy consumption when undertaking environmental projects. Investing in new projects and equipment entailed substantial costs, creating an urgent need for additional working capital to expand production; at the same time, construction activities resulted in a large volume of input VAT invoices that could not be offset in the current period, tying up significant funds,” explained Zhao Xiangrong, the company’s head. With the support of policies such as the value‑added tax credit refund and the additional deduction for R&D expenses under corporate income tax, the company increased its investment in environmental protection facilities and independently developed nationally leading energy‑saving technologies.
“Turning mine waste into scenic attractions—tax incentives have played an indispensable role,” said Yan Jingen, the legal representative of the Jiulong Huaqiao Ore‑Processing Plant in Xinyu City, Jiangxi Province, giving a thumbs‑up during a visit by tax officials. He explained that the company has benefited this year from environmental protection tax reductions and exemptions totaling more than RMB 100,000. “We are accelerating our ‘waste‑to‑value’ initiative, vigorously promoting the comprehensive utilization of tailings: some are used as backfill material for underground mined-out areas, while others are processed into building materials such as cement, refractory products, and concrete, truly turning waste into treasure!”
Since 2022, Jidong Cement Heilongjiang Co., Ltd. has invested nearly ten million yuan to build a wastewater treatment plant equipped with state-of-the-art technology, significantly enhancing the company’s capacity for pollution reduction and resource utilization. The plant achieves a 100% wastewater recycling rate and ensures that more than 90% of waste materials are rendered harmless and repurposed. “Our investments aimed at reducing pollution and maximizing the value of waste have enabled us to benefit from a VAT refund‑on‑collection incentive totaling 10.5 million yuan—essentially equivalent to the government having built a wastewater treatment facility for us at no cost. With such tax‑policy support, we will continue to pursue a win‑win path that balances environmental protection with economic development,” said Wang Junhua, the company’s head.
Policy outreach: Ensuring that all eligible tax benefits are fully realized through enhanced service.
Good policies must also be effectively implemented. In recent years, the tax authorities have made significant efforts to advance and refine the green tax system, adopting measures such as proactively reaching out to taxpayers, providing tailored guidance, and streamlining filing procedures. These initiatives have been continuously optimized to ensure that all eligible tax incentives are fully utilized, thereby encouraging enterprises to embrace sustainable, environmentally friendly practices.
Take the environmental protection tax as an example: as long as the conditions for tax relief or exemption are met, taxpayers can simply enjoy the preferential treatment by completing the tax return form, with supporting documentation retained only for record‑keeping purposes. Another example is the consolidated filing of nine property and behavioral taxes, which significantly reduces the number of tax return forms and the number of fields taxpayers need to fill out. In addition, the tax authorities’ services—such as tax law publicity, training and guidance, on‑site visits and surveys, and efforts to identify needs and resolve difficulties—encourage more business entities to proactively engage in ecological and environmental protection.
Recently, construction is underway on Phase IV of the Jiguanshi Wastewater Treatment Plant in Nan’an District, Chongqing. Upon learning of the group’s expansion plans, the Chongqing tax authorities dispatched a team of “tax advisors” to proactively identify and streamline applicable tax incentives—such as environmental protection tax benefits—based on the project’s scope. The team then visited the enterprise to provide detailed explanations and assist with calculating the tax breaks the company will receive once the fourth-phase expansion is completed. According to estimates, upon completion, the plant will see annual reductions in environmental protection tax exceeding RMB 20 million.
At the Ruomaoshan Mining Area in Wuhu City, Anhui Province, driverless smart mining trucks operated by Conch Cement Company shuttle back and forth between mine sites, each laden with ore. To ensure that tax and fee preferential policies are swiftly and fully implemented, delivering tangible benefits to businesses, the local tax authorities have adopted measures such as remote guidance, dedicated hotline connections, and the establishment of a “Chief Tax Liaison Officer” service mechanism. These efforts have enabled Conch Cement to promptly benefit from environmental protection tax reductions and exemptions totaling RMB 22.9839 million. “The real‑money tax incentives have given us greater confidence to introduce more advanced dispatching systems, helping our company advance on the path of green development,” said a company official. Currently, the mine area boasts 100% vegetation coverage on all suitable land, 100% dust‑control coverage, and a 100% resource utilization rate, while dust emissions have been cut by 86.4%, making the mine increasingly verdant.
“Encouraging enterprises to increase their investment in environmental protection and pursue a low-carbon, green development path would not have been possible without the high-quality services provided by the tax authorities over the years,” said Xu Kun, Deputy Secretary of the CPC HuaiShang District Committee and District Mayor of Bengbu City, Anhui Province, when discussing the region’s green industrial development. He added that advancing green industrial development is currently the top priority for the entire district. The tax authorities have proactively aligned themselves with the broader goals of economic and social development, continuously rolling out the “Spring Breeze Action” to facilitate tax compliance, and leveraging premium tax and fee services to help businesses establish a virtuous cycle of “increased investment—tax relief—reinvestment.”
Interdepartmental Collaboration: Pooling Greater Synergy to Paint a Beautiful Picture of China
The building of a Beautiful China is for the people and relies on the people. A sound ecological environment requires the concerted efforts of all sectors and the broad consensus of society. In recent years, the tax authorities have established and strengthened cooperation with departments such as ecology and environment, and natural resources, fully leveraging the specialized expertise and management capabilities of these agencies to implement collaborative tax‑administration measures—including joint oversight, joint incentives, and joint sanctions—thus jointly fostering a green and harmonious ecological home.
“The administration and collection of the environmental protection tax are relatively complex, making inter‑agency information sharing and coordinated cooperation crucial. Pollutant monitoring and management, as well as the development of monitoring standards, all rely on the professional expertise of the ecological and environmental authorities,” said He Dong, Director of the Resource and Environmental Tax Division of the Sichuan Provincial Tax Service. To further deepen inter‑agency collaboration, the Sichuan tax authorities, in partnership with the provincial ecological and environmental department, have established an information‑sharing platform for environmental protection tax matters, enabling the exchange of tax‑related data such as pollutant emission records and environmental violation penalties, thereby strengthening the foundation for the effective administration and collection of the environmental protection tax.
In Liaocheng City, Shandong Province, the local government has established a dedicated green‑tax task force comprising 13 functional departments—including taxation, ecological environment, natural resources, agriculture and rural affairs, and water conservancy—to foster a collaborative governance framework characterized by “enterprise filing, tax collection, environmental monitoring, and information sharing.” “We must treat the implementation of green‑tax policies as a key measure for balancing ecological sustainability with economic development, ensuring their rigorous and effective execution, and working in concert to make green taxation a powerful driver of green growth,” said Liu Wenqiang, Member of the Standing Committee of the Liaocheng Municipal Party Committee and Executive Vice Mayor.
Under the guidance of a collaborative green tax governance mechanism, local enterprises in Liaocheng have actively engaged in supporting ecological conservation. Pan Hongchao, a finance professional at China Metallurgical Paper Industry Yinhe Co., Ltd., explained: “With the guidance and assistance of tax authorities, water‑resource management agencies, and other departments, we have proactively aligned with the direction of tax policies, gradually adjusted our water‑use structure—switching from groundwater to surface water—and achieved annual savings of over RMB 8 million in water‑resource taxes.”
In Nan’an City, Fujian Province, under the guidance of the Fujian Provincial Tax Service, the local tax authorities have joined forces with the Municipal Bureau of Industry and Information Technology, the Bureau of Finance, the Bureau of Ecology and Environment, the Bureau of Natural Resources, the Bureau of Water Resources, and the Bureau of Agriculture and Rural Affairs to establish a Green Tax and Ecological Protection Alliance. Through joint efforts in water‑ecology management, public awareness campaigns, and coordinated enforcement measures in the Shanmei Reservoir area, the alliance has effectively reduced the total volume of pollutants entering the reservoir, fostered a healthy reservoir ecosystem, and built a robust tax‑and‑judicial safeguard to enhance water‑environment quality and improve the ecological conditions of the watershed.
In Lianyungang City, Jiangsu Province, the tax authorities, in collaboration with the Finance Bureau, the Development and Reform Commission, and four other departments, jointly issued the “Notice on Establishing a Coordination Mechanism for Resource Tax Administration,” thereby establishing and improving a citywide collaborative framework for resource tax administration. This mechanism ensures timely analysis and resolution of issues arising during policy implementation and tax collection and management, enhances the efficiency of resource tax administration, safeguards taxpayers’ legitimate rights and interests, and promotes the economical and intensive use of resources.
The environment is people’s livelihood; green mountains are beauty, and blue skies bring happiness. On this new journey, the tax authorities will continue to fully, accurately, and comprehensively implement the new development philosophy, redoubling their efforts in policy implementation, enhanced macro‑regulation, and service optimization. By strengthening inter‑departmental coordination and joint governance, they will strive to deepen the “green foundation” for China’s high‑quality development and contribute even greater strength to building a Beautiful China.

Litigation & Arbitration
The Supreme People’s Court and the Supreme People’s Procuratorate jointly released typical cases of public-interest litigation in ecological and environmental protection.
On August 15, the Supreme People’s Court website issued the “Notice on Printing and Distributing Typical Cases of Public Interest Litigation in Environmental Protection,” releasing ten exemplary cases.
The cases released this time comprise five administrative public-interest litigation cases, four civil public-interest litigation cases, and one criminal case with an accompanying civil public-interest claim. In Case 3, in May 2007, Chen Mougao and Chen Moudao, after their marine-use rights and aquaculture permits for tidal flats had expired, continued to occupy the sea area for aquaculture without authorization; the occupied zone falls within the Class I nearshore ecological red-line area. Subsequently, Chen Mougao established a cooperative named Haomou to carry on the operation. In January 2019, the relevant authorities of Danzhou City imposed an administrative penalty, ordering them to dismantle their aquaculture facilities and restore the sea area to its original state; however, these authorities failed to effectively fulfill their supervisory and administrative duties. Accordingly, the Danzhou City People’s Procuratorate filed an administrative public-interest lawsuit with the Haikou Maritime Court, urging the competent authorities to perform their statutory obligations. Following a second-instance review, the court ruled that the relevant authorities must, within two months from the date the judgment takes effect, lawfully discharge their supervisory and administrative responsibilities. All the illegal aquaculture facilities involved in the case have now been completely demolished.

The “Provisions on Evidence in Civil Litigation for Environmental and Ecological Infringement” Have Been Issued.
On August 15, the Supreme People’s Court website published the “Several Provisions of the Supreme People’s Court on Evidence in Civil Litigation for Environmental Tort Cases,” which will take effect on September 1.
The “Several Provisions” comprise 34 articles and primarily address such matters as the scope of application, the burden of proof, the investigation, collection, and preservation of evidence, the principle of evidentiary commonality, expert evidence, orders to produce documentary evidence, and the discretionary determination of damages and costs, thereby promoting standardization in civil litigation involving ecological and environmental torts with respect to parties’ presentation of evidence, the investigation and collection of evidence, its authentication, and its admissibility. The “Several Provisions” expressly stipulate that the defendant bears the burden of proving that no causal relationship exists between its conduct and the damage; if the defendant demonstrates that the pollutants it discharged, the ecological factors it released, or the ecological impacts it caused did not reach the place where the damage occurred, or that its conduct was undertaken only after the damage had already occurred and did not exacerbate its consequences, or that there exist other circumstances under which its conduct could not have given rise to the damage, the people’s court shall determine that no causal relationship exists between the defendant’s conduct and the damage.

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