JC Master Legal News Issue 1073

Key Takeaways for This Issue

“Divorce‑style share reductions” draw attention—here’s the latest response from the China Securities Regulatory Commission!
Since the beginning of this year, several cases have emerged in the A-share market in which shareholders of listed companies have divided their equity holdings through divorce, drawing widespread market attention and raising concerns that such transactions may constitute “circumventing share‑sale restrictions.” On July 28, the China Securities Regulatory Commission stated that major shareholders and directors, supervisors, and senior executives—being part of the “key minority”—should voluntarily comply with regulations on share reductions and must not seek to evade these restrictions by means of divorce, dissolution and liquidation, corporate spin-offs, or any other methods.
Three ministries and commissions have issued a work plan to ensure stable growth in the light industry.
On July 28, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Commerce jointly issued the “Work Plan for Stabilizing Growth in the Light Industry (2023–2024).”
The full text of the draft Amendment (XII) to the Criminal Law has been officially released.
On July 26, the website of the National People’s Congress of China published the “Twelfth Amendment to the Criminal Law of the People’s Republic of China (Draft)” and invited public comments; the deadline for submitting feedback is August 24.
The Supreme People’s Court has issued the “Several Provisions on the Participation of People’s Assessors with Specialized Knowledge in the Adjudication of Environmental and Resource Cases.”
The “Several Provisions of the Supreme People’s Court on the Participation of People’s Assessors with Specialized Knowledge in the Adjudication of Environmental and Resource Cases” were reviewed and adopted at the 1885th meeting of the Judicial Committee of the Supreme People’s Court on April 17, 2023, and officially promulgated on July 27, 2023.
Finance & Capital Markets
The Shenzhen Stock Exchange’s “Chuangxianghui” hosted a special event on carbon management.
Supporting enterprises in their green and low-carbon transformation to achieve sustainable development.
On July 28, the Shenzhen Stock Exchange hosted a special session of its “Innovation & Sharing Forum” on carbon management, bringing together more than 20 participants, including executives from listed companies such as Shanxi Coking Coal, Rongsheng Petrochemical, SF Holding, and China Resources Sanjiu—each with extensive experience in promoting industrial restructuring and accelerating the green transformation of development models—as well as leaders from leading offices in energy‑saving and carbon‑reduction technology R&D and application, along with representatives from relevant listed companies, prospective IPO candidates, and experts from carbon‑finance service institutions. Together, they explored pathways for China’s green and sustainable development under the new circumstances and examined how capital markets can support the green and low‑carbon transformation of traditional enterprises. The event received active participation and unanimous recognition from all stakeholders.
The report to the 20th National Congress of the Communist Party of China stated, “Respecting nature, conforming to nature, and protecting nature are intrinsic requirements for comprehensively building a modern socialist country,” and that “promoting the green and low‑carbon transformation of economic and social development is a key component of achieving high‑quality development.” On July 11, the second meeting of the Central Commission for Comprehensively Deepening Reform emphasized that China’s ecological progress has entered a critical phase, with carbon reduction as the central strategic priority, and that the systems for regulating total energy consumption and energy intensity should be refined, gradually shifting toward a dual‑control framework for both total carbon emissions and emission intensity. Participants noted that achieving carbon peaking and carbon neutrality represents a broad and profound systemic transformation of the economy and society, and that it is essential to build on China’s endowment of energy resources, promote clean, low‑carbon, and efficient energy use, and advance the implementation of the “dual carbon” strategy in a proactive yet prudent manner. Against the backdrop of the full implementation of the registration‑based IPO system, exploring how to fully leverage the functions of the capital market and provide enterprises with high‑level services for carbon management is of significant practical importance.
Drawing on their own corporate development experiences, the guests shared representative case studies from diverse perspectives on the application of carbon technologies and carbon management practices. They engaged in in-depth discussions on topics including the “dual carbon” policy and its implementation pathways, trends in carbon‑management technology, persistent pain points and common challenges in carbon management, and the impact of green, low‑carbon technological innovation on various industries. Participants fully commended the Shenzhen Stock Exchange’s platform capabilities, agreeing that the “SZSE·Chuangxianghui” initiative—by facilitating face-to-face exchanges with corporate leaders possessing robust carbon‑management expertise and experts from carbon‑finance service institutions—has further strengthened awareness of ecological priority, resource conservation and intensive use, and green, low‑carbon development. Moreover, the insights, reflections, and practical case studies shared proved highly targeted and instructive.
Participants noted that the Shenzhen Stock Exchange remains committed to its mission of “pooling innovative capital and unleashing growth momentum,” proactively aligning itself with the national strategy for comprehensively building a modern socialist country. By fully leveraging its role as a market hub, the Exchange has worked to enhance resource allocation efficiency, focusing on three key areas—advanced manufacturing, the digital economy, and green, low‑carbon development—while continuously fostering an ecosystem that promotes high‑level integration among technology, capital, and the real economy. In doing so, it has played a constructive role in supporting China’s drive for independent and self‑reliant scientific and technological advancement and in advancing high‑quality economic development.
“Chuangxianghui” is a market‑service brand meticulously developed by the Shenzhen Stock Exchange, distinguished by its unique Shenzhen‑market characteristics. To date, it has organized numerous specialized events centered on trending topics, steadily enhancing its influence and appeal. Moving forward, “Chuangxianghui” will continue to focus on priority areas, key industries, and strategic regions, proactively launching a series of initiatives aimed at fostering corporate engagement, dialogue, and collaboration, thereby striving to build an open and dynamic platform for capital‑market services.

Expanding Scope, Deepening Coverage, Enhancing Accuracy — The National Equities Exchange and Quotations Company Hosts a Series of Training Sessions on the Preparation and Disclosure of 2023 Semi-Annual Reports for Listed Companies
To deepen the study and implementation of the thematic education campaign on Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, to earnestly deliver practical results and address public concerns, and to advance the “Three Services” initiative in a substantive and effective manner, the National Equities Exchange and Quotations Company has proactively responded to the needs voiced by market participants and continued to refine its training system for listed companies. As the preparation of 2023 interim reports gets underway, the company organized a series of training sessions on interim report disclosure from July 13 to 26. This training program focuses on resolving disclosure issues, reducing disclosure costs, and improving preparation efficiency, strengthening its impact through three dimensions: breadth, depth, and precision.
First, we innovated the course format to broaden the scope of training. The program was delivered in a blended “online + offline” model, with a fast-paced curriculum and rich content. Offline sessions were held in Suzhou and Guangzhou, meeting the on-site participation needs of some companies; more than 300 participants attended in person and engaged in face-to-face discussions with the instructors. To expand the reach of the training, three live‑streamed online sessions were simultaneously organized, allowing listed companies to choose their preferred session; cumulative attendance approached 4,500.
Second, the curriculum was enriched to deepen the training’s scope. This session introduced a “compulsory plus elective” course model. For the compulsory courses, drawing on revisions to the reporting templates, the focus was on clarifying the key differences in this period’s semi‑annual report disclosures and highlighting areas of particular concern for market participants. As for the electives, in response to suggestions raised by market entities during earlier thematic education surveys, the program added content related to public offerings and listings. Additionally, external accounting and tax experts were engaged to deliver specialized sessions on practical, forward‑looking topics such as internal financial controls and tax planning. Participants widely reported that the training was highly applicable and provided valuable guidance for their subsequent work.
Third, we focused on market needs to enhance the precision of our training. This session zeroed in on key issues and addressed existing gaps, building on feedback from the market regarding the preparation and disclosure of semi‑annual reports. During the training, we further clarified disclosure guidelines, clearly articulating the reporting requirements for material litigation, guarantees, risk warnings, and other matters, thereby resolving companies’ most challenging compliance questions. We also incorporated visual aids to provide a step‑by‑step explanation of specific procedures—such as upgrading reporting tools, editing, and validation—helping companies get up to speed quickly. In addition, we strengthened case‑based analysis, thoroughly outlining the essential elements of a high‑quality semi‑annual report and, by presenting both positive and negative examples, encouraging companies to benchmark against best practices.
Going forward, the National Equities Exchange and Quotations Company will further advance its regulatory transformation, continuously enhance its “butler‑style” services for listed companies, and focus on addressing their concrete needs. By issuing regulatory briefs and establishing dedicated consultation hotlines, it will do its utmost to help small and medium‑sized enterprises resolve critical issues, overcome challenges, and alleviate concerns, thereby supporting their high‑quality development.

“Divorce‑style share reductions” draw attention—here’s the latest response from the China Securities Regulatory Commission!
“Divorce‑style share reductions” have drawn the attention of the China Securities Regulatory Commission.
Since the beginning of this year, several cases have emerged in the A-share market in which shareholders of listed companies have divided their equity holdings through divorce, drawing widespread market attention and raising concerns that such transactions may constitute “circumventing share‑reduction restrictions.” On July 28, the China Securities Regulatory Commission stated that major shareholders and directors, supervisors, and senior executives—constituting the “key minority”—should voluntarily comply with regulations on share reductions and must not seek to evade these restrictions by means of divorce, dissolution and liquidation, spin-offs, or any other methods.
“Key individuals” may not circumvent share‑sale restrictions by filing for divorce.
Since the beginning of this year, A‑shares have set a record for the highest number of “divorce‑related share‑reduction” incidents among listed companies. According to incomplete statistics, at least eight cases involving shareholders’ divorce‑related share divisions have been disclosed by listed offices, along with nine instances in which shareholders planned or actually reduced their holdings following a divorce. Notably, in ten of these cases, the divorcing shareholders were either the controlling shareholders or persons acting in concert with them.
The China Securities Regulatory Commission stated that it has taken note of the relevant circumstances. Share reductions are a fundamental right enjoyed by shareholders; however, major shareholders of listed companies—namely controlling shareholders and shareholders holding 5% or more of the shares—as well as directors, supervisors, and senior management, as the “key minority,” bear specific obligations and special responsibilities in the company’s operations, development, and governance. They must earnestly safeguard the interests of listed companies and small and medium-sized shareholders, voluntarily regulate their share‑reduction activities, and may not circumvent share‑reduction restrictions through divorce, dissolution and liquidation, corporate spin-offs, or any other means. Where major shareholders or directors, supervisors, and senior managers distribute shares due to divorce, the termination of a legal person (or non‑legal entity), corporate spin‑offs, or similar circumstances, all parties shall continue to jointly comply with the relevant provisions on share reductions set forth in the “Several Provisions on Share Reductions by Shareholders, Directors, Supervisors, and Senior Management of Listed Companies,” the “Rules for the Administration of Shares Held by Directors, Supervisors, and Senior Management of Listed Companies and Their Changes,” as well as the exchange’s applicable business rules.
The China Securities Regulatory Commission stated that, in the next phase, it will urge major shareholders of listed companies, as well as directors, supervisors, and senior management, to strictly comply with regulatory requirements, and will impose strict legal and regulatory sanctions on any violations discovered.
“Sky-high divorce” cases are increasingly common in the A-share market.
In July this year, Tongcheng New Materials (603650) announced that its shareholder holding more than 5% of the company’s shares, Virgin Holdings, plans to reduce its stake by no more than 10 million shares—equivalent to no more than 1.68% of the company’s total share capital—due to its own funding needs. Tongcheng Investment and Virgin Holdings, the company’s two largest shareholders, are both controlled by Zhang Ning, the company’s actual controller and chairman.
In May this year, Tongcheng New Materials announced that Zhang Ning and Liu Dongsheng had divorced and terminated their concerted action agreement. The two parties agreed that all shares of the company held directly or indirectly, along with any associated proceeds, would vest exclusively in Zhang Ning. This “multi-billion‑yuan divorce case” drew widespread attention from the capital markets. Following this change, Liu Dongsheng no longer holds any equity in Tongcheng New Materials, is no longer a concerted actor of the controlling shareholder, and is no longer deemed the company’s de facto controller. At present, Zhang Ning directly and indirectly controls nearly 65% of the listed company’s shares.
In fact, “sky-high divorce settlements” are not uncommon in the A-share market. Prior to this, major shareholders and directors, supervisors, and senior executives of listed companies—including Fubang Shares (300387), Qihoo 360 (601360), Kexin Technology (300565), Tonghe Technology (300491), Huitian New Materials (300041), Saiteng Shares (603283), Zhuosheng Micro (300782), and Kunlun Wanwei (300418)—have all engaged in similar transactions.
On April 4, Qihoo 360 announced that its controlling shareholder, Zhou Hongyi, and his wife, Hu Huan, have, through amicable negotiations, completed the formalities for dissolving their marriage. Zhou Hongyi plans to transfer 6.25% of his shares to Hu Huan. Based on Qihoo 360’s closing price that day, the value of this share transfer is estimated at nearly RMB 9 billion. The sudden divorce, coupled with reports of an “astronomical breakup fee,” quickly sparked market speculation as to whether this move was a “sham divorce intended to facilitate share reductions.” Although company executives and the board secretary subsequently issued clarifications, these responses failed to allay investor concerns, and on the first trading day following the announcement, the company’s market capitalization shrank by nearly RMB 8 billion.
On June 20, Kunlun Wanwei, one of the leading stocks in the AI sector, announced that its major shareholder, Li Qiong, who holds more than 5% of the company’s shares, plans to reduce her stake by no more than 3% of the company’s total share capital. Li Qiong, the major shareholder undertaking this sale, is the former wife of Kunlun Wanwei’s founder, Zhou Yahui. At the time of their divorce in 2016, Li Qiong received a total of 298 million shares in Kunlun Wanwei, representing approximately 26.43% of the company’s outstanding shares, with a value exceeding RMB 7 billion based on the stock price at that time.
According to Kunlun Wanwei’s announcement, Li Qiong’s recent share reduction is intended to lend more than 50% of the after-tax proceeds from the sale back to the company, at an annual interest rate of 2.5% for a term of three years. Kunlun Wanwei stated that this move “will help the company secure funding at a lower cost and more quickly, reduce its financial expenses, and provide momentum for the development of its core businesses.” In the subsequent trading session, Kunlun Wanwei hit the daily limit down of 20% and promptly received a regulatory inquiry letter.
In the A-share market, “divorce‑related share reductions” take many forms, yet they invariably trigger stock‑price volatility. Some market observers note that the uncertainty surrounding such sales—stemming from marital changes—is a key source of concern, as investors worry that certain “divorce‑driven” sell‑offs are simply aimed at cashing out at higher prices. Moreover, the timing of these divorces often draws attention, given the potential for strategic profit‑taking behind them.

The capital market places equal emphasis on both financing and investment, and listed companies’ proactive efforts to reward investors have become a new market trend.
Cash dividends for the previous year have been nearly fully distributed by listed companies, with nearly RMB 2 trillion in actual cash payments having been credited to investors’ accounts. As of the last trading day of last week (July 21), a total of 3,234 listed companies had implemented their 2022 annual‑report profit distributions, amounting to RMB 1.73 trillion. When combined with dividends paid on quarterly and semi‑annual reports from the prior year, the total annual cash payouts approached RMB 2 trillion. Additionally, 192 listed companies have had their 2022 profit‑distribution plans approved but have yet to execute them, involving a further RMB 0.15 trillion.
The 20th National Congress of the Communist Party of China has outlined a grand blueprint for advancing the great rejuvenation of the Chinese nation through Chinese modernization, systematically expounding the theoretical essence of this model and emphasizing that Chinese modernization is one in which all people achieve common prosperity. In the capital markets, cash dividends, as an important means of delivering investment returns and sharing corporate performance, serve as a vital manifestation of respecting and safeguarding investors’ rights and contributing to the realization of common prosperity. In recent years, regulatory authorities have continuously refined the system governing cash dividends by listed companies, and the capital market has increasingly become a key channel for households to augment their property‑based income and meet their wealth‑management needs.
I. The total dividends paid by listed companies have repeatedly reached new highs, and the dividend payout ratio has been steadily increasing.
At the Third Members’ Congress of the China Association of Public Companies, CSRC Chairman Yi Huiman pointed out that improving the quality of listed companies ultimately hinges on their ability to create and distribute value, and that investors’ sense of gain should be enhanced. In recent years, listed companies have demonstrated a markedly stronger commitment to cash dividends, with dividend payouts steadily rising and dividend stability increasingly robust. Dividend distributions by listed companies are becoming a “new channel” for investors to share in the fruits of economic growth.
According to statistics for each reporting period in 2022, 3,446 listed companies on the domestic stock market either implemented or announced cash dividends (or proposed dividend plans), accounting for 67% of all listed companies. Data show that 68 companies maintained dividend payouts despite reporting operating losses in the year; the number of companies that have never paid a dividend since listing has steadily declined to 274; and 2,023, 1,687, and 750 companies, respectively, have achieved consecutive dividends over the past three, five, and ten years. Overall, listed companies’ commitment to returning value to investors has markedly strengthened.
In 2022, the total dividends paid by listed companies across all reporting periods reached RMB 2.13 trillion, surpassing RMB 2 trillion for the first time—a new milestone following the initial breakthrough of RMB 1 trillion in 2017. Industrial and Commercial Bank of China (601398) distributed RMB 108.2 billion in dividends, marking more than RMB 100 billion in cash dividends for two consecutive years—on par with U.S.-listed tech giant Apple, another industry leader.
In terms of dividend payout ratios, the average dividend payout ratio in 2022 stood at 34.12%, up nearly 2 and 3 percentage points, respectively, from three and five years earlier. Against a backdrop of a complex and volatile international environment and a slowdown in China’s economic growth, listed companies have defied the trend by posting record‑high total dividends while maintaining a steadily rising payout ratio.
II. Dividends from central and state-owned enterprises account for nearly half of the total, with state‑controlled companies contributing close to 70%; meanwhile, companies in the innovation‑and‑entrepreneurship sector are seeing a rapid increase in their dividend payout ratios.
In May this year, Wang Jianjun, Vice Chairman of the China Securities Regulatory Commission, emphasized that listed companies should prioritize delivering strong returns to shareholders, actively give back to society, and fulfill their social responsibilities, thereby becoming reputable, responsible, and value‑creating enterprises. By controlling shareholder type, state‑owned enterprise‑controlled listed companies distributed a total of RMB 1.06 trillion in dividends in 2022, accounting for 49.85% of the market’s overall dividend payout. Among state‑controlled listed companies, 927—less than 30% of all dividend‑paying offices—accounted for nearly 70% of the total dividend amount, or RMB 1.47 trillion. Several large SOE‑listed companies maintained high dividend payout ratios; for example, China Mobile, China Shenhua (601088), and Sinopec (600028) all posted payout ratios exceeding 60%. State‑owned enterprises have thus become benchmarks for sharing corporate performance and rewarding investors, playing a positive role as models in the capital markets.
By sector, in 2022, main‑board listed companies on the Shanghai and Shenzhen stock exchanges distributed a total of RMB 2 trillion in dividends, accounting for 94% of the overall amount. Main‑board offices are predominantly high‑quality enterprises with mature business models, stable operating performance, and strong industry representation, making them the primary drivers of dividend payouts in the capital market. Meanwhile, listed companies on the STAR Market and the ChiNext Board have also shown growing awareness of cash dividend distribution. In 2022, the dividend payout ratios of STAR Market and ChiNext‑listed companies increased by 2.7 and 1.7 percentage points, respectively, compared with the previous year.
III. The market-wide dividend‑to‑financing ratio has been rising year by year.
According to statistics, since its inception, the capital market has seen listed companies distribute a cumulative total of nearly RMB 16 trillion in cash dividends, approaching the overall equity‑financing proceeds—including IPOs and secondary offerings—of approximately RMB 18 trillion. In 2022, total dividend payouts already far exceeded that year’s equity‑financing amount of RMB 1.53 trillion. Since 2017, cumulative cash dividends have surpassed RMB 8 trillion, with the pace of dividend growth accelerating and the dividend‑to‑equity‑financing ratio rising year after year, underscoring the capital market’s increasingly prominent role in delivering returns to investors.
Across the entire market, a total of 626 companies have distributed cumulative cash dividends exceeding their total equity financing since listing. Kweichow Moutai (600519) has paid dividends amounting to 80 times its total fundraising, while Ningbo–Shanghai Expressway (600377), Yankuang Energy, and Shanxi Fenjiu (600809) each have dividend payouts that exceed their total fundraising by more than 50 times.
IV. With dividend yields higher than those in overseas markets, there is an urgent need to accelerate the development of a valuation framework with Chinese characteristics.
According to the latest data from Wind, the dividend yield of South Korea’s KOSPI stands at 1.90%, while Japan’s Nikkei 225 yields 1.85% and the Dow Jones Industrial Average 1.52%. Meanwhile, China’s CSI 300 index offers a dividend yield of 3.12%, and the SSE 50 index delivers 4.21%—all exceeding their respective overseas peers and reaching five-year highs.
In November 2022, Yi Huiman, Chairman of the China Securities Regulatory Commission, proposed “exploring the establishment of a valuation system with Chinese characteristics,” noting that “the level of valuations directly reflects the market’s degree of recognition for listed companies.” At the CSRC’s 2023 System Work Conference, he reiterated the need to progressively refine valuation and pricing frameworks tailored to different types of enterprises and to further develop a valuation system with Chinese characteristics, thereby enhancing the capital market’s role in allocating resources.
The ability to consistently and sustainably generate value is a key metric by which capital markets assess a company’s valuation. As the “China‑Specific Valuation” framework takes shape, the integration of China’s unique market characteristics with broader capital‑market principles will offer investors a fresh lens for identifying high‑potential stocks. Listed companies with low valuations and attractive dividend yields are likely to be rediscovered and re‑priced by the market.
V. Stock buybacks still have considerable room for growth compared to cash dividends.
Share repurchases and cash dividends both serve as mechanisms for returning value to shareholders, and they exhibit a degree of substitutability in terms of their underlying motivations and market effects. In 2022, a total of 1,155 listed companies engaged in share repurchases, an increase of 17.38% year over year, with the total amount reaching approximately RMB 102.917 billion. Such proactive repurchases reflect industrial investors’ recognition of corporate value, helping to stabilize stock prices, while also facilitating the establishment of robust, long-term incentive mechanisms that support the company’s sustainable growth.
At the same time, it should be recognized that, compared with developed capital markets, A‑share listed companies have a relatively low share repurchase and cancellation ratio, leaving considerable room to enhance investor returns through buybacks. For example, Apple’s stock repurchases in 2022 totaled RMB 642 billion, while Coca‑Cola’s repurchase amount was approximately RMB 9.5 billion.
Building a modern capital market with Chinese characteristics is an essential component of achieving Chinese‑style modernization. Upholding the people‑centered approach has been a valuable lesson in the development of China’s capital market and remains one of the key principles for fostering such a market. For years, the A‑share market was criticized by investors as prioritizing fundraising over returns. However, as the capital market has continued to evolve, regulatory authorities have consistently advocated for greater investor engagement, and investors’ desire to share in the fruits of economic growth has grown stronger, listed companies have increasingly embraced the practice of rewarding shareholders through cash dividends and other means. Investors and listed companies are mutually dependent partners, thriving together. Consistent, stable, and well‑designed dividend policies not only demonstrate a company’s solid performance and robust cash flow but also bolster investors’ confidence and sense of value, highlighting the office’s long‑term, steady growth and intrinsic investment appeal, thereby fostering a healthy ecosystem for the high‑quality development of the capital market.

The China Securities Regulatory Commission convened the 2023 Mid-Year Work Symposium for the System.
 On July 24–25, the China Securities Regulatory Commission (CSRC) convened its 2023 mid-year work symposium. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the meeting earnestly studied and implemented the spirit of the Central Politburo meeting, carried out the decisions and arrangements of the CPC Central Committee and the State Council, reviewed past work, analyzed the current situation, and outlined key priorities for the second half of the year. Yi Huiman, Secretary of the CSRC Party Committee and Chairman, delivered a work report titled “Strengthen Confidence, Seek Progress While Maintaining Stability, and Strive to Advance the Development of a Modern Capital Market with Chinese Characteristics.” Li Chao, Member of the CSRC Party Committee and Vice Chairman, presided over the meeting. Lu Xi, Deputy Head of the Third Supervisory Group for the CPC’s Mass Line Education Campaign; Fang Xinghai, Member of the CSRC Party Committee and Vice Chairman; Fan Dazhi, Member of the Party Committee and Head of the Discipline Inspection and Supervision Group stationed at the CSRC under the CPC Central Commission for Discipline Inspection and the National Supervisory Commission; and Wang Jianjun, Member of the Party Committee and Vice Chairman, also attended the meeting.
The meeting concluded that, since the beginning of this year, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China’s economy has continued to recover, showing an overall upward trend and making solid progress in high-quality development. The recently held meeting of the CPC Central Politburo provided clear guidance, conducted an in-depth analysis of the current economic situation, and laid out a comprehensive plan for the second half of the year, focusing on expanding domestic demand, boosting market confidence, and guarding against risks. It emphasized making full use of policy space, identifying the right priorities, strengthening counter-cyclical adjustments and building up policy reserves, vigorously advancing the construction of a modern industrial system, continuously deepening reform and opening-up, effectively preventing and defusing risks in key areas such as real estate and local government debt, and stepping up efforts to safeguard people’s livelihoods. In doing so, it delivered a well‑coordinated package of measures, sending a powerful policy signal. The meeting also proposed “revitalizing the capital markets and bolstering investor confidence,” underscoring the CPC Central Committee’s high regard for and earnest expectations regarding the capital markets. The CSRC system must ensure that its thinking and actions are fully aligned with the CPC Central Committee’s sound assessment of the situation and its strategic decisions, adopting a holistic approach across investment, financing, and trading channels, coordinating efforts, and ensuring that the Party’s major policies and guidelines are implemented faithfully and effectively in the capital markets.
The meeting noted that, since the beginning of this year, under the strong leadership of the CPC Central Committee and the State Council, the CSRC system has thoroughly implemented the spirit of the 20th National Congress of the CPC, carried out in-depth thematic education on studying and applying Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and earnestly fulfilled the tasks of the Party and state institutional reforms. Centering on the overarching goal of Chinese modernization, it has coordinated and advanced all efforts to reform, develop, and stabilize the capital market. In particular, the comprehensive implementation of the stock issuance registration system has been successfully put into practice; the transfer of responsibilities for corporate bonds has proceeded smoothly; and the capital market’s functions have been effectively brought into play. The Regulations on the Supervision and Administration of Private Investment Funds have been officially promulgated, the filing‑based management system for overseas listings has been put into effect, and the reform of the independent director system for listed companies has advanced steadily. Risks in key areas—including bond defaults, private equity funds, and local trading venues—have continued to recede. Law enforcement characterized by “zero tolerance” has grown increasingly deterrent, the market environment has been continuously improved, and a number of high‑profile, socially sensitive cases with severe negative impacts have been investigated and prosecuted in accordance with the law, while mandatory delisting has been enforced and multi‑dimensional accountability measures have been implemented. Meanwhile, Party building within the CSRC system has been deepened, with a strong emphasis on political leadership, solid progress made in comprehensively strengthening Party governance, combating corruption, and ensuring the sustained and institutionalized rectification of issues identified during central inspections. Efforts to strengthen the leadership teams and cadre corps have been comprehensively intensified, providing robust political safeguards for the reform, development, and stability of the capital market.
The meeting emphasized that, to ensure the successful implementation of work in the second half of the year, it is imperative to resolutely put into practice the spirit of the Central Politburo meeting. In light of the realities of the capital market, we must adhere to four guiding principles—bolstering confidence, maintaining composure, upholding prudence, and improving our working style—to further invigorate the capital market, enhance its functions, and better support high-quality development. Key priorities include the following tasks.
First, we will further prioritize stability while seeking progress within that stability. We will uphold stable markets, stable functions, and stable policies to foster stable expectations. We will ensure the steady and orderly conduct of IPOs and secondary financings, and strike an appropriate balance between primary and secondary markets. We will refine the system of risk prevention, early warning, response, and accountability in the capital market to effectively safeguard its stable operation. We will earnestly implement the CPC Central Committee and the State Council’s “Opinions on Promoting the Development and Growth of the Private Sector,” supporting private enterprises in achieving high-quality development through the capital market, elevating the level of routine regulation of platform enterprises, and fostering their standardized, healthy, and sustainable growth.
Second, we will further enhance the quality and effectiveness of our services in support of major national strategies. We will implement the Action Plan to Intensify Support for Financing of Science and Technology Enterprises, which was reviewed and approved at the State Council Executive Meeting, with a focus on improving the institutional mechanisms that underpin high‑quality science and technology offices. We will remain committed to the respective roles of the STAR Market and the ChiNext Board, and continue to refine the precision of our services. We will promote the coordinated development of corporate bonds and enterprise bonds, strengthen and elevate the quality of science‑and‑technology‑focused bonds, and expedite the launch of new public REITs projects, such as those involving consumer‑infrastructure assets. In addition, we will further enhance the functions of the futures market to better support the overall goal of ensuring stable economic performance.
Third, we will further deepen reform and opening-up in the capital market. We will advance the registration-based reform in a substantive and effective manner, and steadily push forward reforms on the investment side and the transformation of regulatory approaches. We will build the Beijing Stock Exchange to high standards, comprehensively strengthen the New Third Board’s role in nurturing market participants, and establish it as a key platform for serving innovative small and medium-sized enterprises. While balancing openness with security, we will refine the filing and management system for overseas listings and introduce more “green-light” cases.
Fourth, we will further strengthen efforts to prevent and combat fraud in the capital markets. We will enhance穿透监管 (penetrative supervision), explore the use of advanced technological tools, and improve our ability to identify red flags and potential misconduct. We will reinforce the gatekeeping responsibilities of intermediary institutions such as accounting offices and law offices, and impose stricter penalties on third parties that collude in fraudulent activities. We will also bolster inter‑ministerial coordination to pool resources and mount a concerted response against systemic, organized fraud, ensuring that egregious violations are investigated and prosecuted swiftly, rigorously, and with maximum severity, thereby fostering a sound market environment that upholds the rule of law.
Fifth, we will steadfastly uphold our core regulatory responsibilities. We will fully implement the Regulations on the Supervision and Administration of Private Investment Funds, refine supporting rules and mechanisms, adopt differentiated regulatory arrangements for venture capital funds, and optimize the industry’s development environment. We will deepen the implementation of the new three-year action plan to enhance the quality of listed companies, improve institutional frameworks that promote regular dividend payouts, and urge listed companies to operate in a compliant and integrity‑based manner. We will further完善 the regulatory framework for financial institutions, strengthen corporate culture, and advance robust long‑term incentive and constraint mechanisms to foster high‑quality development across the sector. In addition, we will enhance regulatory coordination, embed the “comprehensive investor protection” principle throughout all aspects of capital market operations, and safeguard investors’ legitimate rights and interests in accordance with the law.
Sixth, we will resolutely safeguard the risk bottom line. We will fully and faithfully implement the CPC Central Committee and the State Council’s directives on promoting the stable and sound development of the real estate market and effectively preventing and defusing local government debt risks. We will uphold the linkage between equity and debt markets and continue to ensure the stability of property developers’ access to capital market financing. We will also continue to advance, in an orderly manner, efforts to prevent and resolve risks associated with gold exchanges and “pseudo‑gold exchanges,” while intensifying crackdowns on illegal securities activities.
The meeting called on Party committees at all levels within the CSRC system to thoroughly study and implement General Secretary Xi Jinping’s important thought on Party building, uphold and strengthen the Party’s overall leadership over the capital market, and, with a sense of commitment from beginning to end, ensure the high-quality completion of all tasks in the thematic education campaign, achieving tangible results in forging political loyalty through study, enhancing intellectual capacity through learning, fostering sound conduct through study, and driving concrete action through learning. It also urged advancing the institutionalization and long-term effectiveness of rectifying issues identified during central inspections, deepening efforts to build systems, enforce regulations, and combat corruption, fortifying the safeguards for implementing the spirit of the CPC Central Committee’s Eight-Point Decision, strictly enforcing financial and economic discipline, and promoting the integrated approach of “not being able to be corrupt, not wanting to be corrupt, and not daring to be corrupt.” A high-pressure stance must be maintained against corruption, continuously consolidating an atmosphere of strict Party self‑discipline. Furthermore, the implementation of institutional reform tasks should be steadily advanced, with continued strengthening of leadership teams and cadre development at all levels, heightened awareness of responsibility, a stronger sense of urgency, and a genuine enhancement of the ability to creatively translate policies into concrete actions, thereby resolutely upholding the “two establishments” and practicing the “two safeguards” through more forceful measures and demonstrable results.
Comrades from the CPC Commission for Discipline Inspection and Supervision stationed at the China Securities Regulatory Commission, the Central Financial Work Committee, the Ministry of Public Security, the National Audit Office, and the Supreme People’s Procuratorate were invited to attend the meeting. Principal officials of all units within the system and of the Commission’s internal departments, as well as cadres at or above the deputy bureau level in the Commission’s headquarters, also attended.

Commercial & Corporate
Minister of Housing and Urban-Rural Development: Ensure the effective implementation of policies such as lowering the down payment ratio for first-time home purchases and adopting a “recognize the house, not the loan” approach for personal housing loans.
At a recent symposium with real estate enterprises, Minister of Housing and Urban–Rural Development Ni Hong stated that it is essential to further consolidate the stabilization and recovery of the real estate market, vigorously support both first-time homebuyer and housing‑upgrade demand, and fully implement policies such as lowering down payment ratios and mortgage rates for first‑time home purchases, offering tax and fee reductions for trade‑up housing transactions, and adopting the “property‑based but not loan‑based” approach for personal housing loans. He also emphasized the need to continue ensuring timely delivery of pre‑sold homes, accelerate project construction and handover, and effectively safeguard the legitimate rights and interests of the public.
This is the Ministry of Housing and Urban–Rural Development’s latest statement, following the July 24 meeting of the CPC Central Politburo, which called for “timely adjustments and optimizations to real estate policies.”
The Ministry of Housing and Urban–Rural Development stated that stabilizing the construction and real estate sectors—two key pillars—will play a crucial role in boosting economic recovery and growth. Guided by industrialization, digitalization, and green development, it is essential to vigorously promote the sustained, sound development of the construction industry and fully leverage its positive contributions to investment, growth, and employment.
According to data from the China Index Academy, since 2022, restrictive real estate policies in ordinary second-tier and third- and fourth-tier cities have largely been relaxed. However, some core first- and second-tier cities still maintain relatively stringent measures, leaving considerable room for policy adjustments. Meanwhile, since the second quarter, downward pressure on the housing market has intensified in most cities; accordingly, the policies introduced during periods of overheating in these cities are all likely to be refined or eased.
Yan Yuejin, Research Director at the E-House Institute, pointed out that the Ministry of Housing and Urban–Rural Development’s recent explicit commitment to effectively implement policies such as lowering the down-payment ratio for first-time home purchases and adopting a “property‑based, not loan‑based” approach to personal housing loans fully reflects the relevant authorities’ orientation toward implementing the spirit of the CPC Central Politburo meeting and adjusting and optimizing housing‑purchase‑related policies. It also helps guide local governments to continue easing policies in these areas.
The China Index Academy notes that, at present, down-payment requirements in most cities have been reduced to the minimum levels mandated by regulators—20% for first-time homebuyers and 30% for second homes. Cities that apply both “property‑based” and “loan‑based” criteria are concentrated in Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, and others; moreover, some cities impose relatively high down-payment thresholds for second homes—for instance, in Beijing and Shanghai, the minimum down payment is 60% and 50% respectively for standard residential properties, while it rises to as much as 80% and 70% for non‑standard properties. Consequently, these “property‑and‑loan‑based” policies drive up the cost of purchasing a second home in such markets.
Yan Yuejin believes that the recent policy statement—“no loan‑based assessment for housing ownership”—will have the most significant impact on first‑tier cities. Taking Shanghai as an example, under the current “both property and loan” policy, many homebuyers face down payment ratios as high as 70% and mortgage rates of up to 5.25% when trading up. If this policy were repealed and replaced with a “property‑only, no‑loan” approach, down payment requirements could be reduced to 35%, and mortgage rates could fall to 4.55%. Beijing’s market is similarly affected: under the previous rules, down payments could reach 80% and mortgage rates as high as 5.25%. With the new policy, down payments could drop to 35%, and mortgage rates could decline to 4.75%. An analysis of both Beijing and Shanghai shows that adopting a “property‑only, no‑loan” framework would substantially lower both the down payment and interest‑rate costs for those seeking to upgrade their housing.
It is worth noting that on July 24 this year, the Political Bureau of the CPC Central Committee convened a meeting to analyze and assess the current economic situation and outline economic priorities for the second half of the year. The meeting emphasized the need to effectively prevent and defuse risks in key areas, adapt to the new realities arising from significant shifts in supply and demand in China’s real estate market, and timely adjust and optimize real estate policies. It called for tailoring policy measures to the specific conditions of each city, making full use of the available policy toolkit, better meeting residents’ needs for both essential and upgraded housing, and fostering the stable and sound development of the real estate market.
Chen Wenjing, Director of Market Research at the China Index Academy, pointed out that this meeting clearly highlighted a major shift in the supply-and-demand dynamics of China’s real estate market. In 2022, the country’s total population declined for the first time, urbanization has slowed, and per capita housing area has increased significantly, with households now averaging nearly 1.1 homes. As residents’ basic housing needs have largely been met, the real estate market has entered a phase of decline following the peak in new-home sales.
Chen Wenjing pointed out that, in the new stage of development, this conference emphasized “adjusting and optimizing real estate policies as appropriate and leveraging the policy toolkit on a city-by-city basis.” The refinement of real estate policies will continue to be advanced through a city-specific approach, with the overall intensity likely to increase.
The China Index Academy believes that, following the Politburo meeting’s clarification of policy direction, local governments will accelerate the pace of adjusting and refining their regulatory policies. The specific measures to be introduced will depend, on the one hand, on the current policy toolkit available in each region, and, on the other hand, on the performance of local housing markets.

Report: In the second quarter, the decline in domestic smartphone shipments narrowed, while high-end models posted growth against the trend.
According to the latest quarterly smartphone tracking report released by International Data Corporation (IDC), China’s smartphone market shipped approximately 65.7 million units in the second quarter of 2023, down 2.1% year over year—a significantly narrower decline. In the first half of the year, total shipments reached about 130 million units, a 7.4% year-over-year drop. OPPO maintained its position as the top player in the domestic smartphone market in the second quarter, with a 17.7% market share.
Notably, throughout the “618” mid-year shopping event, despite substantial dual‑channel incentives from manufacturers and e‑commerce platforms, smartphone sales still declined by more than 5% year over year.
Despite the continued slump in China’s overall smartphone market, the high-end segment above $600 has been relatively less affected. According to IDC data, in the second quarter, the share of high-end smartphones priced at $600 and above reached 23.1%, marking a counter‑trend increase of 3.1 percentage points compared with the same period in 2022. For instance, OPPO’s dual-flagship Find X6 series and the Find N2 and Flip series helped the company secure a place among the top three in the $600+ high-end market.
The report notes that, as domestic brands continue to pursue a high-end strategy, mainstream manufacturers have successively adopted a dual-flagship approach—combining “straight‑bar” and “foldable” models. The “straight‑bar” flagships boast top‑tier hardware specifications, while the “foldable” devices differentiate themselves through innovative form factors, capturing consumer attention. With the number of high‑end models steadily rising, the premium smartphone market has become a fiercely contested battleground for all players.
Guo Tianxiang, a senior analyst at IDC China, noted that the Chinese smartphone market in the first half of the year fell short of expectations. In particular, the performance during the “618” mid-year sales event indicated that consumer demand remains relatively weak. Looking ahead to the second half, with regard to new‑product planning and R&D, neither Apple nor Android manufacturers are likely to introduce truly disruptive innovations.
Guo Tianxiang believes that, as products from different brands become increasingly homogeneous, design differentiation, competitive pricing, and camera and video performance will emerge as the primary factors driving consumers’ purchasing decisions. With the next‑generation iPhone 15 set to launch soon, and Android flagships also expected to hit the market earlier thanks to the early release of their new flagship chips, there is hope that China’s smartphone market will begin a noticeable recovery in the fourth quarter—though the strength of this rebound may fall short of prior expectations. Overall, the Chinese smartphone market remains fraught with uncertainty.

New resources, new assets, new capital: Data elements empower SMEs to innovate.
“The process of turning data into a factor of production is also the process of unlocking data’s latent value and unleashing its ‘multiplier’ effect,” said Luo Junzhang, Deputy Director of the China Industrial Internet Research Institute, at the SME Service Innovation Forum of the 2023 National Conference on the Development of Specialized, Sophisticated, Distinctive, and Innovative Small and Medium‑Sized Enterprises held recently.
Luo Junzhang stated that small and medium-sized enterprises (SMEs), as the mainstay of national economic development, a crucial pillar for improving people’s livelihoods, and a foundational safeguard for stabilizing and strengthening industrial chains, are demonstrating robust momentum and broad prospects in their digital transformation. In recent years, localities have leveraged data as a key enabler to accelerate innovation in the industrial internet, launching distinctive pilot initiatives to advance the digital transformation of SMEs.
For example, Guangdong has steadfastly prioritized manufacturing as its core economic pillar, rolling out a series of policies on the digital transformation of manufacturing. These measures focus on innovative applications of the industrial internet to empower 20 key industrial clusters. Guangzhou is advancing the development of industry‑specific industrial internet platforms to enhance collaboration and resource sharing among cluster members. Meanwhile, Foshan has introduced 25 initiatives—such as guiding small and medium‑sized enterprises within industrial clusters to pursue collective growth—and established a 30-billion-yuan fund for the transformation and upgrading of the manufacturing sector.
“During the digitalization process, we can also foster a thriving ecosystem and empower small and medium-sized enterprises at scale,” said Luo Junzhang. He cited Jiangsu Province as an example: by attracting and nurturing industrial Internet platform providers, telecom operators, and specialized digital transformation service offices, the province has steadily expanded the reach of its “smart upgrading and digital transformation” initiatives. In 2022, Jiangsu organized more than 3,000 online and offline events for SMEs, serving over 20,000 enterprises and delivering total benefits exceeding RMB 280 million.
Luo Junzhang concluded that data is a new resource, a new asset, and a new form of capital. The vast amounts of data generated throughout enterprises’ production, operations, and management processes, when collected, organized, analyzed, and mined, acquire the attributes of controllability, quantifiability, and tradability, and have increasingly become critical corporate assets.
“Enterprises can also leverage innovative approaches to multiply the value of their data assets. For instance, last year, relevant companies in Beijing secured the nation’s first data‑asset‑backed financing loan, totaling RMB 10 million. Meanwhile, an increasingly robust ecosystem of financial‑product innovations—ranging from supply‑chain finance to corporate credit reporting—based on industrial‑Internet data is taking shape,” said Luo Junzhang.
An increasing number of enterprises are tapping into the value of data to drive innovation. According to available data, global data volumes are growing rapidly; industry analysts project that by 2035, they will reach 2,142 ZB—roughly 35 times the level in 2020. China boasts a vast and rapidly expanding data resource base with immense intrinsic value. Reports indicate that in 2022, China’s data output totaled 8.1 ZB, up 22.7% year over year.
However, Luo Junzhang also pointed out that, at present, the digital transformation of China’s small and medium-sized enterprises (SMEs) remains at a relatively early stage, with a noticeable gap compared to international best practices, meaning that substantial progress lies ahead. Moreover, the market‑based development of industrial data as a factor of production is still in its infancy, requiring further strengthening across key areas such as foundational institutions, infrastructure, circulation channels, and data applications.

Three ministries and commissions have issued a work plan to ensure stable growth in the light industry.
On July 28, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Commerce jointly issued the “Work Plan for Stabilizing Growth in the Light Industry (2023–2024).”
The Work Plan takes steady growth as its overarching goal, leverages key industries as its driving force, prioritizes the cultivation of market players, and places industrial chain upgrading at its core. It outlines six priority tasks: stabilizing key sectors, fostering and expanding new growth drivers, fully unlocking domestic demand potential, proactively safeguarding export competitiveness, promoting coordinated development of the industrial ecosystem, and elevating the modernization level of industrial chains. The Plan also explicitly calls for vigorously developing high‑safety lithium‑ion batteries, lead‑carbon batteries, sodium‑ion batteries, and other such products, while expanding their applications in areas including new‑energy vehicles, energy storage, and telecommunications.

In the first half of the year, China’s automobile exports surged by more than 75%, with new-energy vehicles ushering in a window of opportunity.
Following its rise to the top of global automobile production and sales, China is now poised to become the world’s leading automobile exporter.
From 20,000 vehicles in 2002 to surpassing the one-million‑unit mark in 2012, and then breaking the two-million‑vehicle threshold for the first time in 2021, China’s automobile exports have grown steadily in recent years. In 2022, auto exports experienced explosive growth, rising from two million to three million vehicles in just one year.
According to data from the China Association of Automobile Manufacturers, China exported 3.11 million vehicles in 2022, surpassing Germany to become the world’s second-largest auto exporter, behind only Japan. In the first half of 2023, vehicle exports reached 2.14 million units, up 75.7% year on year, and the association forecasts that this figure will exceed 4 million for the full year.
The changes extend beyond volume: the average price of exported automotive products has risen from US$10,000 to over US$20,000, while export destinations have expanded from Southeast Asia and other regions to developed European markets. Behind these trends lies not only the automotive industry’s leap from self-reliance to self‑strengthening, but also the window of opportunity created by the global transition to new energy.
However, it’s worth noting that this window of opportunity may not last very long. Recognizing this, Chinese automakers are increasingly vying to expand into overseas markets.
New-energy vehicles have opened a window of opportunity for Chinese automakers to expand overseas.
“Selling cars in Germany is like selling German-made porcelain to Jingdezhen, Jiangxi,” said Yuan Yingchen, General Manager of SAIC Germany, in a recent interview with The Paper. As the birthplace of the automobile, Germany boasts exceptionally strong domestic brands such as the BBA—Mercedes-Benz, BMW, and Audi—with these homegrown marques commanding as much as 70 percent of the German market share.
China’s “overtaking on the curve” in the new‑energy vehicle sector has given Chinese automakers a chance to enter the stronghold of traditional European manufacturers like Germany. Europe and North America are emerging as the two key growth markets for China’s auto exports, with new‑energy vehicles accounting for a significant share of this expansion.
“The entry point is precisely new‑energy vehicles.” Speaking about SAIC Group’s foray into the German market, Yuan Yingchen noted that the German automotive industry also has its conservative side—particularly in terms of internet‑based applications and electric‑vehicle R&D, where it tends to be more cautious and slower than China. As a result, electric vehicles have become the ideal foothold for Chinese automakers to break into the market. He added that more than 80 percent of SAIC Group’s sales in Germany are pure electric vehicles.
At the recently held China Automotive Forum, Fang Yinliang, a Global Managing Partner at McKinsey, stated that Chinese automakers currently enjoy a window of opportunity in overseas markets. In particular, demand in the new‑energy vehicle segment—led by the European market—is expected to accelerate markedly over the next two to three years.
The reasons are twofold: first, the overseas market suffers from a shortage of new‑energy vehicle supply; second, Chinese NEVs have leveraged their first‑mover advantage gained through strategic shifts in market positioning.
Taking the European market as an example, driven by decarbonization policies and growing consumer environmental awareness, demand for new‑energy vehicles in Europe is steadily increasing. However, statistics indicate that European automakers will be able to launch only a relatively limited number of models over the next two to three years, potentially leading to a situation where demand outstrips supply during this period.
He Xinfeng, President of Junpu Intelligent for China, told a reporter from The Paper that Junpu Intelligent is one of the few global suppliers of intelligent manufacturing equipment for new-energy vehicles with an international production footprint. Automotive OEMs are Junpu’s direct customers. Based on his understanding of multiple clients, he believes the outlook for China’s automotive industry going overseas is quite optimistic, with new‑energy vehicles being the most significant driver—evident when examining the timelines of both China’s auto export growth and the rise of new‑energy vehicles.
He Xinfeng believes that technological R&D in new-energy vehicles and economies of scale are two key strengths that set Chinese automakers apart.
He noted, “Over the past decade, China’s substantial R&D investment in new‑energy vehicles has propelled us into the global forefront of this technology and given us a market-leading position. Many top‑tier automakers have developed distinctive technological capabilities, and in many respects they can now rival Tesla.”
Regarding economies of scale, He Xinfeng noted that China’s domestic market is vast and, bolstered by supportive policies, has enabled rapid growth in the production and sales of new‑energy vehicles. This expansive market has allowed companies to expand their operations, generating significant scale effects and driving down costs substantially. Moreover, the size of the domestic market has provided fertile ground for the large‑scale deployment of Chinese NEVs; the safety, quality, and design of these products have all been rigorously tested and validated within this home base, further enhancing their competitive edge when entering international markets.
Enterprises Seize the Window of Opportunity: From “Selling Cars” to “Chinese Brands Going Global”
For a long time, many have argued that China’s auto exports were driven primarily by Tesla. In fact, by 2022, Tesla had already slipped to third place in export volume, trailing behind SAIC Motor and Chery Automobile.
In 2022, China’s total automobile exports reached 3.11 million vehicles, with Tesla accounting for 271,000 units—less than 10% of the total. Even excluding Tesla, Chinese car exports to Europe remain substantial; according to a KPMG research report, in 2022, Chinese automakers such as Geely and SAIC captured a 10% share of the European pure‑electric vehicle market.
Behind the sharp surge in export sales of Chinese brands lies the vigorous overseas expansion and strategic deployment of numerous automakers. This rare window of opportunity has opened up vast prospects for Chinese automakers, with leading brands such as SAIC, BYD, Changan, Chery, Geely, Great Wall, and NIO all vying to establish a foothold in international markets.
Take BYD, a leading new‑energy vehicle manufacturer, as an example: since announcing its strategy to expand into overseas markets for new‑energy passenger cars in May 2021, it has entered a phase of rapid growth. From January to June this year, its exports reached 81,000 vehicles, representing a year‑on‑year increase of 1,060%.
However, unlike the past when automotive trade was merely about selling vehicles, bolstered by the shift to new energy, Chinese automakers are increasingly expanding their brands overseas. As a result, numerous industry experts have introduced concepts such as “Huaxi cars” and “Zhongxi cars.”
Zhang Bin, Director of Overseas Operations at Great Wall Motor Co., Ltd., told a reporter from The Paper that it is precisely because China’s automotive market has become fiercely competitive in recent years that Chinese brands have been able to secure a foothold overseas—and even thrive in certain markets.
The shift from simple trade to brand‑driven overseas expansion marks a major transformation for automakers. According to Zhang Bin, two decades ago, Chinese car exporters like Great Wall began with “trade‑based nomadism”—purely engaging in commerce, partnering with distributors to capture market share at the retail level through low pricing, and even competing on price with used‑car dealers. Today, Chinese automakers are establishing subsidiaries and building overseas manufacturing facilities, moving from conventional trade toward deep local integration and cultivating their own brand recognition in target markets.
Compared with brand and technology, the selling price of automotive products better reflects automakers’ evolving strategies in overseas markets. According to data from the China Passenger Car Association, in the first quarter of 2023, the average export price of Chinese vehicles exceeded US$20,000, a significant increase from US$18,000 in 2022. Five years earlier, in 2018, this figure stood at just US$12,900.
Notably, new-energy vehicles have played a pivotal role. Taking 2022 as an example, the average price of battery electric vehicles reached US$25,800, significantly boosting both the volume and value of China’s auto exports. According to data from the Ministry of Commerce, in the first four months of this year, the share of new-energy vehicle exports in total export value rose to 42.9%, contributing 51.6% to the growth of automobile exports.
However, the window of opportunity for Chinese automakers to expand overseas is fleeting—this is a consensus among companies venturing abroad.
New‑energy vehicle startups are actively expanding overseas, often criticized for rushing into foreign markets before establishing a solid foothold. Yet their real motivation is to seize the opportune window of opportunity. Zeekr, founded just two years ago, has already entered the European market. According to Zeekr CEO An Conghui, “The global shift toward new energy among traditional automakers is accelerating, and the time window we have may be fleeting. Therefore, enabling Chinese NEVs to spread more rapidly across the world is not a vision—it’s an urgent necessity.”
He Xinfeng believes that China’s new‑energy vehicle industry, after more than a decade of steady accumulation, now enjoys certain competitive advantages in areas such as engineering talent. Meanwhile, foreign automakers—led by Volkswagen—tend to make decisions more slowly but remain financially and technologically robust. In recent years, companies like BMW have poured substantial resources into the NEV sector, and with new models slated for release in the coming years, they could well deliver a significant challenge to Chinese automakers.

The Ministry of Industry and Information Technology has publicly announced 155 industry standards and 3 recommended national standards.
On July 26, the website of the Ministry of Industry and Information Technology published draft versions of 155 industry standards and 3 recommended national standards for public comment, with the consultation period closing on August 26, 2023.
This batch of newly released industry standards and recommended national standards includes, among others: 32 chemical‑industry standards such as “Regenerated Antimony Pentachloride Catalyst”; 22 ferrous metallurgy standards such as “Water‑Sealed Sintering Ring Cooler”; 13 nonferrous metals standards such as “Aluminum Slag”; one gold‑industry standard titled “Determination of Gold Content in Chlorine‑Containing Gold Materials”; 10 building‑materials standards including “Guidelines for the Evaluation of Green Factories in the Stone Industry”; 14 rare‑earth industry standards such as “Technical Specification for the Evaluation of Green Design Products—Rare‑Earth Polishing Powder”; 45 machinery‑industry standards including “Mold Temperature Controllers for Die Casting—Energy‑Consumption Grading”; two shipbuilding‑industry standards such as “Implementation Guidelines for Energy Audits in Shipbuilding Enterprises”; 10 light‑industry standards such as “Technical Specification for Green Mines in the Salt‑Manufacturing Industry”; six textile‑industry standards including “Implementation Guide for Integrated Optimization of Water Systems in Textile Dyeing and Finishing Enterprises”; and three recommended national standards for the automotive sector, such as “Road Test Methods and Requirements for Automated Driving Functions of Intelligent Connected Vehicles.”

Taxation
While conducting a field inspection of tax administration in Fujian, Wang Jun emphasized that…
Strengthen the building of political organs and deepen the outcomes of thematic education.
Increase support for the private sector to better serve high-quality development.
From July 24 to 26, Wang Jun, Secretary of the Party Committee and Director of the State Taxation Administration, conducted field research in Xiamen, Fuzhou, and other locations, focusing on strengthening the political character of tax authorities and fostering the growth of the private sector. He visited enterprises and grassroots units to gain first-hand insights, and convened three symposiums with private‑sector representatives as well as a tri‑level symposium bringing together tax officials from provincial, municipal, and county tax bureaus, thereby soliciting extensive feedback and suggestions. He emphasized the need to steadfastly use Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era to forge unity and strengthen ideological cohesion, continuously deepen and solidify thematic education within the tax system, and earnestly implement the “Opinions of the CPC Central Committee and the State Council on Promoting the Development and Growth of the Private Sector” (hereinafter referred to as the “Opinions”). He called for even stronger support to help the private sector expand, improve, and become more robust, leveraging concrete achievements in building a politically strong tax administration to further consolidate the outcomes of thematic education, and demonstrating the tax authorities’ commitment to serving high‑quality development through tangible actions that bolster the private sector.
Wang Jun visited Kehua Data Co., Ltd. and Fujian Fuguang Co., Ltd., touring their exhibition halls, machining facilities, and testing laboratories to conduct on-site research. He engaged in in-depth discussions with company executives, carefully inquiring about their business development, product market prospects, technological upgrades, the application of the policy for additional tax deductions on R&D expenses, and the tax authorities’ support for private enterprises. Following these field visits, Wang Jun and the research team convened three symposiums with private enterprises in Xiamen, Jinjiang, and Fuzhou, interacting with representatives from 22 companies spanning advanced manufacturing, traditional manufacturing, and emerging industries. They gained a thorough understanding of these enterprises’ production and operations, the implementation of various tax and fee preferential policies, and the effectiveness of the series of tax‑related service measures introduced by the tax authorities as part of the thematic education campaign. In addition, they sought opinions and suggestions on further refining the “Spring Breeze Action” to facilitate tax compliance, with a focus on supporting the development of small, medium, and micro enterprises and individual business households, which are predominantly driven by the private sector.
Wang Jun stated that the tax authorities will resolutely implement the decisions and arrangements of the CPC Central Committee and the State Council, treating the earnest execution of the “Opinions” as a key component of strengthening the political character of the tax system. They will further leverage, expand, and enhance the role of taxation, while continuing to refine, optimize, and effectively deliver tax and fee reduction policies. In line with the ongoing call to innovate and advance the “Jinjiang Experience,” they will continually enrich and improve the tax authorities’ practices for serving the private sector, steadily upgrade tax filing and payment services, and consistently foster a favorable tax‑related business environment. They will provide robust support for technological innovation, the real economy, and the development of small, medium, and micro enterprises as well as individual business households, always upholding an attitude of “sincere engagement,” a pace of “immediate action,” and standards of “standardization and fairness.” By doing so, they will serve as attentive mentors and dedicated service providers, helping private enterprises grow stronger and more prosperous, and vigorously promote the high‑quality development of the private sector.
On the 26th, Wang Jun visited the tax service hall of the Minhou County Tax Bureau to assess the implementation of measures designed to benefit the public and businesses in tax filing and payment services. He extended his greetings and condolences to grassroots tax officials, engaged in cordial conversations with taxpayers and payers handling their affairs at the service windows, and carefully solicited their views and suggestions on further improving tax‑filing and payment services. Expressing heartfelt gratitude for the understanding and support of the broad taxpayer and payer community, Wang Jun also extended warm regards to tax officials working on the front lines of tax‑filing and payment services, urging them to persevere with unwavering dedication and resilience, deliver concrete results that serve the people, and provide tangible support for the growth and development of enterprises, particularly private businesses.
Subsequently, Wang Jun chaired a symposium at the Minhou County Tax Service Bureau, where he heard the views and suggestions of eight principal officials from city- and county-level tax bureaus in Fujian, Zhejiang, Anhui, and Jiangxi, focusing on the implementation of the “Guiding Opinions on Strengthening the Political Construction of County-Level Tax Bureaus,” issued by the CPC Leadership Group of the State Taxation Administration during the thematic education campaign. Wang Jun emphasized that the foundation for tax services supporting high-quality development lies at the grassroots level, and its vitality is also rooted there. He urged the Party committees of tax bureaus at all levels to thoroughly study and grasp the spirit of General Secretary Xi Jinping’s important speech delivered on July 9, to place the strengthening of political construction at the forefront, ensuring it permeates every level of the tax system, all aspects of tax work, and the entire process of the thematic education. Furthermore, he called for closely integrating this effort with upholding and developing the “Fengqiao Experience” for the new era and vigorously supporting the growth and expansion of the private sector, so as to further consolidate the grassroots foundation and make new strides and contributions to advancing high-quality tax services.
During his field visit, Wang Jun also chaired symposiums at the Xiamen Municipal Tax Service Bureau and the Fujian Provincial Tax Service Bureau, gaining an in-depth understanding of the implementation of thematic education and efforts to advance tax reform and development. He commended both units for their achievements in supporting high-quality local economic and social development, stressing the need to continuously strengthen political leadership, foster unity and progress, promote pioneering innovation, uphold a pragmatic and responsible work ethic, and maintain integrity and clean governance. He further emphasized the importance of steadily advancing the first phase of thematic education within the tax system while proactively planning the key tasks and objectives for the second phase, ensuring seamless coordination and organic integration between the two phases so that the tax system’s thematic education is deepened and made more effective, yielding tangible results.
At the Fujian Provincial Tax Service Bureau, Wang Jun viewed a planning presentation for the Fujian Red Tax History Museum and an exhibition showcasing the Fujian tax system’s achievements in strengthening grassroots political institutions. He also engaged in cordial discussions with 14 tax officials who had recently been honored as “Advanced Workers of Fujian Province.” He emphasized that all tax officials should carry forward the red tax‑related cultural heritage, vigorously promote the spirit of model workers, the spirit of labor, and the spirit of craftsmanship, and translate learning from, admiring, and striving to emulate excellence into concrete actions to advance thematic education. They should strive to become a loyal, clean, responsible, and capable tax force—bold in action, skilled in execution, and victorious in results—thus demonstrating new accomplishments and making fresh contributions as they advance high-quality development and embark on a new journey toward Chinese‑style modernization.
Leading officials from the General Office, the Taxpayer Services Department, the Personnel Department, and the Party Building Bureau of the State Taxation Administration accompanied the inspection. Officials from the State Taxation Administration’s Seventh Touring Guidance Group for the Thematic Education Campaign and the Third Inspection Group of the Party Committee also participated in the inspection.

Enhancing the quality and efficiency of tax and fee services, ensuring that tax and fee benefits are fully and meticulously implemented.
— The tax authorities have translated the outcomes of thematic education into tangible improvements in tax and fee services.
Since the beginning of this year, the state has extended, refined, and innovatively implemented a series of temporary tax and fee preferential policies, further boosting market vitality, stabilizing market expectations, and bolstering business confidence. The tax authorities have thoroughly carried out the decisions and arrangements of the CPC Central Committee and the State Council, treating the implementation of these preferential policies as a major political task. Taking the thematic education campaign as an opportunity, they have intensified efforts to interpret and provide guidance on these policies, delivering tailored support directly to businesses, while also streamlining administrative procedures and accelerating their effective implementation. This ensures that the benefits of these policies more fully reach market entities, injecting new energy and momentum into enterprises.
Categorize and organize, provide comprehensive interpretations, and continuously expand the impact of policy communication.
“Faced with constantly updated tax and fee preferential policies, some taxpayers fail to learn about them in a timely manner, others are unsure whether they qualify, and still others apply the wrong measures and must file anew…” In their day-to-day work, grassroots tax officials frequently hear such feedback from taxpayers and payers.
To better coordinate the implementation of tax and fee policies across all levels of the system, the State Taxation Administration has adopted a checklist‑based management approach for key policy‑implementation tasks, defining 82 overarching tasks and 156 phased tasks, and advancing them through visualized project management and benchmark‑driven progress. Focusing on high‑profile issues of greatest concern to taxpayers and payers, the Administration promptly compiled and issued new policy guidelines, such as the pre‑tax additional deduction for R&D expenses, and launched a “Q&A” section addressing 20 frequently asked policy questions, thereby enhancing the certainty of tax and fee policies and ensuring consistent enforcement. In addition, the Administration has produced policy‑explanation videos, including the “Tax Lecture Series,” and established a dedicated “2023 Tax and Fee Preferential Policies” column on its website and social media platforms, providing a centralized showcase of relevant policies and accompanying interpretations to help taxpayers and payers easily and clearly understand the policies, master the procedures, and readily benefit from them.
The Inner Mongolia Autonomous Region Tax Service Bureau has rigorously reviewed the issues in implementing tax and fee preferential policies. Drawing on practical experience, conducting extensive research, and engaging in repeated deliberations, it has systematically collated and consolidated all existing tax and fee incentives. By categorizing taxpayers and payers according to their type and scale, the bureau has identified 21 major industry sectors and developed the “One-Form Access” guide to tax and fee preferential policies, comprising a total of 63 forms, thereby enabling taxpayers and payers to access information more promptly and comprehensively, master the relevant procedures, and fully benefit from these measures.
“In recent years, the state has introduced a series of tax and fee preferential policies that benefit both businesses and the public. Tax‑related knowledge is evolving rapidly, and relying on our own efforts to keep abreast of new policies often leaves us worried about overlooking something. This time, with the tax authorities’ ‘One‑Stop Guide’ to tax and fee preferential policies, we can promptly learn about and master the latest measures. At the same time, they provide guidance on our tax filings, giving us greater confidence in applying these benefits,” said Wang Zhen, a deputy to the National People’s Congress, chairman and general manager of Inner Mongolia Erdos Resources Co., Ltd.
Precise Targeting and Enhanced Services: Continuously Unlocking the Benefits of Tax and Fee Policies
System filing is a critical step for taxpayers and payers to access tax and fee preferential policies. To enhance the convenience of filing and paying taxes, the State Taxation Administration has coordinated and guided provincial tax authorities to upgrade and improve their tax administration information systems, with a focus on optimizing system functionality, streamlining procedures, and accelerating processing times. The electronic tax bureau has been refined to offer more automated services, such as automatic calculation of tax reductions and exemptions, pre‑filled returns, and proactive reminders for pending matters, making it easier and more hassle‑free for taxpayers to benefit from these policies. Adhering to the “data + rules” approach, a mechanism for precise policy delivery—“scenario‑based push notifications for all matters”—has been established, further advancing the level of intelligent and scenario‑driven applications. This continuously strengthens the targeted, accurate, and timely provision of guidance on tax and fee policies and measures, ensuring that policy advice is delivered precisely and effectively, and helping every eligible taxpayer and payer fully enjoy the benefits of the relevant policies.
The Shandong Provincial Tax Service Bureau has fully leveraged the value of tax and fee service hotline data—often referred to as a “gold mine”—by conducting in-depth, “penetrative” analyses based on taxpayers’ and payers’ most authentic and diverse concerns and needs. By creating precise profiles grounded in their legitimate requirements, the bureau has curated differentiated policy‑delivery lists from a granular repository of 170 policy tags and 330 visualized tax‑related labels, thereby continuously enhancing the professionalism and personalization of its services. At the same time, through channels such as the electronic tax bureau, it delivers tailored policy information and service offerings, providing taxpayers and payers with ready‑made, direct‑access services that meet their needs precisely when they arise.
Shen Xinguo, Director-General of the Taxpayer Services Department of the State Taxation Administration, stated that, in conjunction with this year’s “Spring Breeze Action for Convenient Tax Services,” the Administration has built on its previous initiatives by introducing a series of targeted service measures aimed at further accelerating the implementation of tax policies. For instance, in response to taxpayers’ and payers’ needs for more thorough answers to pressing issues and more precise case‑based guidance, the Administration has launched a campaign titled “Tax Q&A,” providing public outreach and explanatory materials. Additionally, addressing taxpayers’ demand for greater efficiency and effectiveness in handling tax refund procedures, it has introduced measures such as streamlining refund processing workflows and leveraging the electronic tax bureau to automatically issue refund‑related notifications and reminders, gradually enabling taxpayers to complete conofficeation, application, and refund processing entirely online. These steps are designed to ensure that tax and fee preferential policies are implemented accurately and reliably, thereby enhancing taxpayers’ and payers’ tangible sense of gain and advancing the thematic education campaign within the tax system in a substantive and effective manner.
Streamline channels and track outcomes, proactively enhancing the quality and efficiency of responding to public requests.
Taxpayer and payer satisfaction is the “gold standard” for assessing the effectiveness of tax and fee policies. Fully listening to stakeholders’ concerns and promptly addressing their challenges are key to enhancing satisfaction.
The State Taxation Administration will closely integrate rigorous monitoring and performance evaluation with the effective implementation of tax and fee policies, proactively solicit feedback on needs and challenges, and ensure smooth information‑feedback channels with grassroots tax authorities. By making full use of the 12366 taxpayer service hotline and direct liaison points for taxpayers, it will identify and compile bottlenecks and difficulties in the execution of tax and fee preferential policies, maintain a dynamic ledger for ongoing tracking, and promptly devise measures to address them, thereby ensuring continuous improvement. During the thematic education campaign, a total of 4,410 “process‑walks and suggestion‑listening” events were held, during which taxpayer and payer feedback was collected, organized, and acted upon, striving to unblock the “capillaries” and “nerve endings” of policy implementation.
The Anhui Provincial Tax Service Bureau has identified key bottlenecks in addressing tax and fee-related appeals—such as fragmented channels, inconsistent processing procedures, and varied feedback mechanisms—and has developed specific measures to ensure rapid response, precise categorization, and efficient handling at every stage. The bureau is exploring the establishment of a “one-stop” mechanism for handling tax and fee service requests and has launched pilot programs in five cities: Hefei, Fuyang, Xuancheng, Anqing, and Huangshan.
“When we encounter challenges, we can always count on a prompt response and resolution—tax services are getting better and better!” said Cheng Hongwei, the financial director of Huangshan Fangping Copper Industry Co., Ltd. Recently, the company discovered that it had failed to apply for an immediate VAT refund in 2022. It promptly reported the issue through the “Anhui Tax” WeChat mini‑program. The Huizhou District Tax Bureau of Huangshan City promptly received the request via its “One‑Stop Service” platform, responded swiftly, and assigned experienced specialists to provide remote guidance, helping the company complete the online application. As a result, the refund of RMB 59,000 was quickly credited to the company’s account.
The Anhui Provincial Tax Service Bureau has comprehensively integrated online, offline, and external channels for collecting taxpayer feedback, consolidating all submissions in real time into a “Feedback Data Warehouse” to ensure that tax-related concerns are handled through a single point of contact. It has established 46 rapid-response teams at the provincial, municipal, and county levels to guarantee timely resolution of taxpayer requests. By implementing a closed-loop management system covering the entire process—collection, response, handling, feedback, analysis, and continuous improvement—the bureau ensures that all legitimate requests are fully addressed, processes are standardized, and data is unified. This integrated, streamlined, and standardized approach enables clear accountability for every issue and consistent, uniform feedback, thereby enhancing the certainty of tax policies and the consistency of their implementation.
Going forward, the tax authorities will continue to implement the decisions and arrangements of the CPC Central Committee and the State Council, further refine working mechanisms, conduct in-depth investigations and research, strengthen performance assessment and evaluation, and optimize implementation measures. They will integrate the delivery of tax and fee preferential policies with thematic education, ensuring that all such policies are fully and effectively implemented with high quality and efficiency, thereby making a positive contribution to sustaining the economic recovery and achieving both qualitative improvements and reasonable quantitative growth.

The State Taxation Administration convened a symposium on on-site research, guidance, and exchange for young officials within the agency.
The State Taxation Administration recently convened a symposium on on-site research and guidance for young officials, during which participants exchanged views on how young cadres can more effectively engage at the grassroots level and apply the Party’s innovative theories to analyze new developments and address emerging challenges. The meeting also outlined key tasks and strategic directions for the next phase, aiming to advance thematic education in a more substantive and effective manner through higher‑standard, higher‑quality research. Wang Daoshu, a member of the Party Committee and Deputy Director of the State Taxation Administration, attended the meeting and delivered a guiding speech.
At the exchange meeting, the Taxpayer Services Department, the Goods and Services Tax Department, and the Income Tax Department of the State Taxation Administration—acting as the principal lead departments—each outlined the specific arrangements and distinctive practices for organizing on-site research initiatives under the “Tax and Fee Services” and “Tax Source Management” programs. Following this, four young officials from the Property and Behavioral Tax Department, the Non-Tax Revenue Department, the Large Enterprise Department, and the International Department—who participated in these on-site investigations—shared their impressions and exchanged insights gained from the fieldwork.
After carefully listening to the remarks of all participants, Wang Daoshu emphasized that conducting in‑depth, on‑the‑ground research activities among young officials is a crucial step for deepening and solidifying thematic education, ensuring tangible results, and opening up new prospects for the development of tax administration while advancing tax modernization. It is also an important measure by the Party Committee of the State Taxation Administration to nurture young cadres with dedication and build a high‑caliber contingent of young professionals. We must further cultivate a strong sense of service to the people, truly “go down to the grassroots” and keep the people at heart, ensuring that the decisions and arrangements of the CPC Central Committee and the specific plans of the State Taxation Administration are effectively communicated to the front lines. Moreover, we should translate the concerns, aspirations, and expectations of taxpayers, payers, and frontline tax officials into concrete measures that address problems and improve our work. We must also adopt a systems‑thinking approach, carrying out thorough and meticulous investigations and systematic, in‑depth analyses to gain a clear understanding of the situation, accurately identify key issues, and formulate practical, well‑grounded solutions, thereby turning the outcomes of our research into real, measurable progress in advancing tax modernization. Finally, we need to refine our work style, continuously enhance our capacity to fulfill our duties, strengthen our sense of responsibility and commitment, and deliver new achievements on the new journey toward tax modernization.
Leading officials from relevant departments and bureaus of the State Taxation Administration, all young cadres participating in the on-site research program, and the heads of the youth theoretical study groups within the SAT headquarters attended the meeting.

Tax policies continue to be refined, further unlocking consumption potential.
The Central Politburo meeting held on July 24 emphasized the need to proactively expand domestic demand, leverage consumption as the fundamental driver of economic growth, boost consumption by increasing household incomes, and use end‑demand to stimulate effective supply, thereby seamlessly integrating the strategy of expanding domestic demand with the deepening of supply-side structural reform. It also called for reviving major‑item consumption—such as automobiles, electronic products, and home furnishings—and promoting service‑sector consumption in areas like sports and leisure, as well as cultural tourism.
In recent years, as living standards have risen, consumers’ expectations for the quality of goods and services have continued to grow. In this context, tax policies—serving as a key instrument for fostering innovation and upgrading industrial structures—can not only alleviate the burden on businesses and boost their dynamism but also facilitate their transformation and upgrading, drive technological progress, and enhance the quality of product offerings. Ultimately, these measures help meet consumers’ aspirations for a better life and stimulate consumption growth.
In June this year, the Ministry of Finance, the State Taxation Administration, and the Ministry of Industry and Information Technology issued the “Notice on Extending and Optimizing the Vehicle Purchase Tax Exemption Policy for New Energy Vehicles,” which clarifies the vehicle purchase tax exemption policy for new energy vehicles from 2024 to 2027.
Effective September 1, 2014, China has exempted the purchase of new-energy vehicles from vehicle acquisition tax, and this policy has since been extended three times, most recently through the end of this year. At a critical juncture in the high-quality development of the new‑energy vehicle industry, these policy incentives have once again been sustained. Notably, the latest round of measures incorporates a series of refinements, placing greater emphasis on enhancing the precision and effectiveness of the policy.
Based on past experience, the policy of reducing or exempting the vehicle acquisition tax for new-energy vehicles has played a crucial role in boosting consumer demand and unlocking the sector’s growth potential. Industry experts note that this latest measure sets out specific arrangements for the next phase of the tax‑exemption policy, spanning four years, while ensuring policy continuity—both of which will help stabilize public expectations and bolster market confidence.
“At present, the new‑energy vehicle market is booming, a trend that would not have been possible without robust fiscal and tax support. The preferential policy on vehicle acquisition tax has been a key factor in encouraging many car owners to make purchasing decisions,” said Liao Chunguang, head of Hefei Luqi Automobile Sales Co., Ltd.
Under the blazing sun, the home appliance sales market has also entered a “boom.” “Even before the peak sales season kicked off, tax officials came to our door to provide guidance,” said Jiao Shoufeng, the financial director of Shandong Fuqun Electrical Appliances Co., Ltd. “The tax officials gave us a detailed briefing on the tax and fee reduction policies for small and micro enterprises, helping us successfully secure tax and fee concessions totaling RMB 128,000. This has given us greater confidence in expanding our market.”
This summer, indoor skiing has become a popular choice for many consumers. “In the first half of this year, our company benefited from tax and fee reductions totaling over 100,000 yuan, allowing us to devote more energy to innovating our business model,” said a representative from Chongqing Rongchuang Yuxue Sports Development Co., Ltd., the operator of the Hot Snow Miracle Ski Resort in Chongqing.
Industry experts believe that leveraging tax and fee‑relief policies to boost consumption will help optimize and improve China’s current macroeconomic performance, thereby supporting steady yet progressive economic growth in the second half of the year.
“During China’s drive to achieve high-quality development, effectively boosting consumption’s contribution to economic growth is of paramount importance. At the same time, stimulating consumption stands as a key measure in both counter-cyclical and cross‑cycle policy adjustments,” said Li Xuhong, Director of the Institute for Fiscal and Tax Policies and Applications at the National Accounting Institute in Beijing. She noted that tax policies play a pivotal role in enhancing consumption through two main channels: first, by expanding domestic demand and thereby increasing the overall scale of consumption—for example, the fiscal and tax authorities have issued the “Guidance on Tax Preferential Policies Supporting Employment and Entrepreneurship among College Graduates and Other Young People” and the “Guidance on Tax and Fee Preferential Policies Supporting Shared Development,” along with a series of measures aimed at small, medium, and micro enterprises as well as private offices. These initiatives seek to raise households’ disposable incomes by promoting employment, thus expanding consumption; second, by facilitating consumption upgrading and raising total spending—for instance, the exemption or reduction of vehicle purchase taxes on new‑energy vehicles helps spur higher‑end automotive purchases and boost overall auto‑related consumption. In addition, tax authorities have vigorously improved the tax‑related business environment, further driving consumption upgrades and supporting major‑ticket items such as electronics and home furnishings, as well as service‑oriented spending on sports, leisure, and cultural tourism.

LITIGATION & ARBITRATION
The Supreme People’s Procuratorate has released nine typical cases of punishing crimes that harm national defense interests in accordance with the law.
On July 28, the Supreme People’s Procuratorate released nine typical cases of crimes that, in accordance with the law, punish offenses endangering national defense interests and infringing upon the legitimate rights and interests of military personnel and their families.
This is the third batch of typical cases released by the Supreme People’s Procuratorate in recent years, involving the lawful prosecution of crimes that harm national defense interests and infringe upon the legitimate rights and interests of military personnel and their families. These cases cover various aspects of safeguarding national defense interests and protecting the lawful rights and interests of military personnel and their families, including the lawful punishment of offenses such as impersonating military personnel to commit fraud, damaging military facilities, trading in documents issued by the armed forces, illegally buying or selling standard-issue uniforms of the armed forces, and disrupting military marriages.

The full text of the draft Amendment (XII) to the Criminal Law has been officially released.
On July 26, the website of the National People’s Congress of China published the “Twelfth Amendment to the Criminal Law of the People’s Republic of China (Draft)” and invited public comments; the deadline for submitting feedback is August 24.
The Draft Amendment (XII) to the Criminal Law comprises eight articles, amending and supplementing seven existing provisions, with a primary focus on further refining the legal framework governing bribery and corruption offenses committed by insiders of private enterprises. The draft revises the threshold for initiating criminal proceedings and the sentencing brackets for the crime of bribery, aligning them with those for the crime of accepting bribes, and specifies six categories of circumstances—such as repeated bribery, bribery of multiple individuals, or bribery involving state functionaries—for which enhanced penalties shall apply. Additionally, the draft strengthens the punishment for corporate acceptance of bribes and corporate bribery, replacing the previous single sentencing bracket of up to five years’ imprisonment with two tiers: “imprisonment of no more than three years or criminal detention,” and “imprisonment of more than three but no more than ten years.” For corporate bribery, the draft introduces an additional tier: “imprisonment of more than three but no more than seven years, together with a fine.” Furthermore, three categories of offenses—illegally engaging in similar business activities by personnel of state‑owned companies and enterprises, illegally profiting for relatives and friends, and abusing power to sell shares at undervalued prices or dispose of state assets at below‑market rates—will now also be extended to apply to private enterprises.

The Supreme People’s Court has issued the “Several Provisions on the Participation of People’s Assessors with Specialized Knowledge in the Adjudication of Environmental and Resource Cases.”
The “Several Provisions of the Supreme People’s Court on the Participation of People’s Jurors with Specialized Knowledge in the Adjudication of Environmental and Resource Cases” (hereinafter referred to as the “Provisions”) were reviewed and adopted at the 1,885th meeting of the Judicial Committee of the Supreme People’s Court on April 17, 2023, and officially promulgated on July 27, 2023. The following provides a brief overview of the drafting process and the main contents of the Provisions.
I. Background and Significance of the Drafting of the Regulations
A sound ecological environment is the most equitable public good and the most universally beneficial form of well-being. The report to the 20th National Congress of the Communist Party of China comprehensively summarizes the remarkable achievements in ecological progress since the 18th National Congress, noting that environmental protection has undergone historic, transformative, and systemic changes. It profoundly underscores that harmonious coexistence between humanity and nature is a defining feature of Chinese modernization, lays out major strategic plans for advancing green development and fostering such harmony, and charts a clear course for strengthening environmental and resource adjudication in the new era.
The ascertainment of specialized factual issues is a central and challenging aspect of adjudicating environmental and resource cases. On the one hand, ecological and environmental torts are characterized by their long-term nature, concealment, delayed effects, and the uncertainty of damage outcomes; thus, establishing the amount of damages and the causal link between the conduct and the resulting harm requires expertise from the environmental sciences. On the other hand, in the field of ecological restoration, determining restoration objectives, selecting appropriate remediation plans, overseeing the restoration process, and evaluating its effectiveness all involve numerous technically complex issues. Furthermore, as an essential technical support for contemporary environmental and resource litigation, forensic environmental‑damage assessments still face challenges such as insufficient capacity among appraisal institutions and personnel to meet practical needs, lengthy appraisal timelines, and high costs. Owing to limitations in specialized knowledge, people’s courts also encounter certain difficulties in reviewing and admitting expert opinions.
In response to the specialized factual findings required in environmental and resource-related adjudication, the Supreme People’s Court, in accordance with the Law of the People’s Republic of China on People’s Assessors and the Interpretation of the Supreme People’s Court on Several Issues Concerning the Application of the Law of the People’s Republic of China on People’s Assessors (hereinafter referred to as the “Judicial Interpretation of the Law on People’s Assessors”), has, on the basis of a careful review of practical experience from courts across the country and after repeated research, deliberation, and extensive consultation, established clear rules governing the scope of cases in which people’s assessors with specialized knowledge may participate, the criteria for their appointment in specific cases, as well as the composition of collegial panels and the performance of their duties. Accordingly, this Regulation has been formulated to refine the procedures for the participation of people’s assessors with specialized knowledge in the adjudication of environmental and resource cases and to ensure uniform application of the law.
II. Guiding Principles and Principles Behind the Drafting of the Regulations
The Regulations adhere to Xi Jinping’s Thought on Ecological Civilization and Xi Jinping’s Thought on the Rule of Law, thoroughly implement the spirit of the 20th National Congress of the Communist Party of China, and are guided by the following principles:
First, strictly comply with the provisions of the legal framework governing people’s jurors. In accordance with the Law of the People’s Republic of China on People’s Jurors, the Judicial Interpretation of the Law on People’s Jurors, and the Measures for the Selection and Appointment of People’s Jurors, and in adherence to the procedural rules and substantive requirements for their selection, we shall standardize the system under which people’s jurors possessing specialized expertise participate in the adjudication of environmental and resource cases, all within the existing framework of the people’s juror system.
Second, respect the inherent principles governing environmental and resource adjudication. By upholding the philosophy of environmental justice and adhering to the distinctive characteristics of environmental and resource cases as well as the procedural rules of environmental litigation, the provisions are crafted with due regard for specialized institutional arrangements—such as the establishment of dedicated environmental and resource tribunals—and for reform measures like the mechanism of centralized jurisdiction across administrative regions, thereby ensuring that they meet the practical needs of environmental and resource adjudication. For instance, to accommodate the mechanism of cross‑administrative‑region centralized jurisdiction in environmental and resource cases, the Regulations stipulate that intermediate people’s courts implementing such a mechanism shall hear first‑instance environmental and resource cases; where the participation of people’s jurors with specialized expertise is required in collegial panels, these jurors may be randomly selected from the roster of specially qualified people’s jurors maintained by the basic-level people’s courts within the jurisdiction of the case.
Third, we must uphold the organic unity of judicial democracy and professional adjudication. Grounded in the dual roles of people’s jurors as both adjudicators and social supervisors, we should fully leverage the specialized expertise of jurors with relevant professional knowledge, thereby enhancing the specialization of environmental and resource-related adjudication while strengthening the supervisory function of people’s jurors over judicial proceedings. The Regulations explicitly stipulate that jurors with specialized knowledge may participate in the supervision of ecological and environmental restoration, acceptance inspections, and assessments of restoration outcomes.
III. Main Provisions of the Regulations
The Regulations comprise 16 articles, covering such matters as the scope of cases in which people’s jurors with specialized knowledge may participate; the procedures for appointing such jurors and the composition of collegial panels that include them in case adjudication; the sources from which these jurors are drawn in courts with jurisdiction over specific types of cases or in specialized courts; and the performance of their duties.
(1) Clearly define the scope of cases in which people’s jurors with specialized knowledge may participate in adjudication.
Article 15 of the Law of the People’s Republic of China on People’s Assessors stipulates the types of cases that must be tried by a collegial panel with the participation of people’s assessors. Building on this, Article 1 of the Regulations clarifies that, in first-instance criminal, civil, and administrative environmental‑resource cases heard by the people’s courts, where the circumstances fall within the scope set forth in Article 15 of the Law of the People’s Republic of China on People’s Assessors and the facts of the case involve complex, specialized issues, the collegial panel shall include at least one people’s assessor possessing relevant specialized knowledge.
(2) Clarifying the qualifications of people’s jurors with specialized knowledge
Article 2 of the Regulations explicitly stipulates that people’s jurors who possess specialized knowledge in the field of environmental resources and have worked for at least three years in administrative departments responsible for environmental and resource management, research institutes, higher education institutions, enterprises, social organizations, or other relevant entities, shall be deemed to be people’s jurors with specialized expertise. This provision both underscores the professional nature of such jurors and, while taking into account local circumstances, appropriately sets forth criteria for determining specialization, thereby ensuring that, in practice, only those who meet the requisite qualifications can be appointed as people’s jurors.
(3) Clarify the composition of the collegial panel in which people’s jurors with specialized knowledge participate in the adjudication of cases.
Article 16 of the Law of the People’s Republic of China on People’s Assessors stipulates that cases of “major social significance” shall be tried by a seven-member collegial panel composed of people’s assessors and judges. In line with the spirit of this provision, Articles 7 and 8 of the Regulations set forth the composition of collegial panels for first-instance environmental and resource cases heard by basic-level and intermediate people’s courts, respectively. Article 7 provides that, in environmental and resource cases heard by basic-level people’s courts, where the participation of people’s assessors with specialized knowledge is required, a three-member collegial panel shall be formed, including at least one such assessor. For criminal environmental and resource cases that may result in a sentence of ten years’ imprisonment or more and that have significant social implications, as well as for environmental administrative public-interest litigation cases, a seven-member collegial panel shall be constituted, with at least one assessor possessing specialized knowledge. Article 8 stipulates that, in intermediate people’s courts, for environmental civil public-interest litigation cases, environmental administrative public-interest litigation cases, ecological and environmental damage compensation litigation cases, and other environmental and resource cases of major social significance, where the participation of people’s assessors with specialized knowledge is required, a seven-member collegial panel shall be formed, including at least one such assessor.
(4) Clarify the sources of people’s jurors with specialized expertise in courts exercising centralized jurisdiction and specialized courts.
Articles 9 and 10 of the Regulations respectively set forth provisions regarding the sources of people’s jurors with specialized expertise in courts exercising centralized jurisdiction and in specialized courts. Article 9 provides that intermediate people’s courts implementing centralized jurisdiction across administrative regions may randomly select and designate such jurors from the lists of people’s jurors with specialized expertise maintained by the basic-level people’s courts within the centralized jurisdictional area. Article 10 stipulates that specialized courts may randomly select and designate such jurors from the lists of people’s jurors with specialized expertise maintained by the basic-level people’s courts within the jurisdictional area of the prefecture-level city where the court is located or within the area over which the court has jurisdiction.
(5) Clarify the performance of duties by people’s jurors with specialized knowledge.
Article 12 of the Regulations stipulates that when people’s jurors with specialized knowledge participate in investigations involving specialized factual issues, offer opinions on matters related to evidence preservation and interim measures, as well as forensic examinations, attend pre-trial conferences, evidence‑exchange proceedings, and site inspections, and take part in reviewing restoration plans and mediation or settlement agreements, the presiding judge shall provide focused guidance and reminders. Article 14 provides that people’s jurors with specialized knowledge may also engage in overseeing ecological and environmental restoration, conducting acceptance inspections, and assessing the effectiveness of restoration efforts, thereby embodying the principle of public participation in environmental justice.
People’s jurors with specialized expertise who participate in the adjudication of environmental and resource cases align with the requirements for building a specialized judicial system in this field, and are of great significance for enriching methods of fact-finding in such cases and ensuring their proper and lawful handling. Going forward, people’s courts at all levels will continue to be guided by Xi Jinping Thought on Ecological Civilization and Xi Jinping Thought on the Rule of Law, implement the spirit of General Secretary Xi Jinping’s important speech at the National Conference on Ecological and Environmental Protection, and fully leverage the functions of environmental and resource adjudication, thereby making greater contributions to the comprehensive advancement of building a Beautiful China.

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