JC Master Legal News Issue 1072

Key Takeaways for This Issue

The China Securities Regulatory Commission has guided the Securities Association of China in issuing the “Measures for Evaluating the Professional Quality of Bond Business at Securities Offices,” thereby strengthening categorized supervision of bond underwriting.
The China Securities Regulatory Commission has guided the Securities Association of China in revising and issuing the Measures for Evaluating the Professional Quality of Securities Offices’ Bond Business, further refining the evaluation indicator system for bond business and strengthening categorized supervision of bond underwriting.
The two-tiered branch institutions of the National Administration of Financial Regulation have been officially inaugurated.
On the morning of July 20, the National Administration of Financial Regulation officially unveiled its 31 provincial-level regulatory bureaus, five separately listed city regulatory bureaus, and 306 prefectural‑level branch offices, marking a significant step forward in the reform of the financial regulatory system and the achievement of interim results.
The National Development and Reform Commission has issued the Measures for the Administration of Demonstration Zones for Undertaking Industrial Relocation.
To further standardize the establishment, development, and evaluation of demonstration zones for undertaking industrial relocation, and to strengthen full‑cycle management, the National Development and Reform Commission has recently formulated and issued the Measures for the Administration of Demonstration Zones for Undertaking Industrial Relocation, in accordance with relevant requirements.
The first normative guideline on procuratorial investigation and evidence collection has been published.
Recently, the “Guidance on Investigation and Evidence Collection in Cases of Official Crimes Committed by Judicial Personnel in the New Era” (hereinafter referred to as the “Guidance”), compiled under the auspices of the Fifth Procuratorial Office of the Supreme People’s Procuratorate, has been published. This is the first normative guidance on the investigation and evidence collection related to official crimes committed by judicial personnel.
Finance & Capital Markets
The Exchange Has Revised the Provisional Measures for the Listing and Trading of GDRs.
On July 18, in order to further standardize the issuance of Global Depositary Receipts (GDRs) by domestic listed companies for trading on overseas markets—where such GDRs are convertible into underlying domestic shares—the Shanghai and Shenzhen Stock Exchanges revised the Provisional Measures for the Listing and Trading of Depositary Receipts Interconnected with Overseas Securities Exchanges (hereinafter referred to as the “Provisional Measures”), which took effect upon their promulgation.
The Provisional Measures are the fundamental business rules adopted by the Shanghai and Shenzhen Stock Exchanges to regulate the mutual market access business involving depositary receipts. Building on an assessment of the system’s initial operational experience and in light of revisions to the CSRC’s guidelines on the overseas issuance of depositary receipts by domestic listed companies, these measures further refine the specific institutional framework and operational mechanisms for GDRs.
This revision focuses on four key areas: first, aligning with the GDR product’s market positioning to clarify listing eligibility requirements; second, drawing on refinancing regulations to specify the detailed review procedures; third, strengthening regulatory oversight by bringing relevant market participants within the scope of the rules; and fourth, taking into account the cross-border issuance characteristics of GDRs to define clear information disclosure obligations for issuers.
Specifically, when companies listed on the Shanghai and Shenzhen stock exchanges issue global depository receipts overseas and seek to list newly issued domestic shares on the exchanges, they must meet the following conditions: first, they must satisfy the issuance requirements set forth in the Measures for the Registration Administration of Securities Issuance by Listed Companies (hereinafter referred to as the “Registration Measures”); second, they must have been listed for at least one year; if a company has undergone a backdoor listing, it must have completed such restructuring and maintained its listing status for at least one year thereafter; third, over the 120 trading days immediately preceding the date of the issuance application, the average market capitalization of the company’s A‑shares, calculated based on closing prices, must be no less than RMB 20 billion, among other criteria.
The issuance and listing review bodies of the Shanghai and Shenzhen Stock Exchanges review application documents for the issuance and listing of newly issued underlying shares within China. With respect to applications for the issuance and listing of underlying shares by listed companies, including their acceptance, review by the relevant review bodies, submission of review opinions to the China Securities Regulatory Commission, post‑meeting matters, re‑examination, suspension or termination of the review process, and other related procedures, the applicable rules governing the issuance of securities to specific investors shall apply.
In addition, when a listed company applies to issue and list global depositary receipts on an overseas stock exchange, it shall promptly disclose relevant progress at the following milestones: upon submission of the application documents for the issuance and listing of global depositary receipts to the competent overseas authorities, except where the application is made through a non‑public procedure in accordance with applicable overseas regulatory requirements; upon the issuance of an approval or rejection decision by the competent overseas authorities; upon the filing of the issuance and listing of global depositary receipts with the China Securities Regulatory Commission; upon the actual issuance and listing of the global depositary receipts on the overseas stock exchange; upon receipt of the proceeds from the offering; upon the suspension or termination of the issuance and listing of the global depositary receipts; and upon any other material developments.
The new regulations also stipulate that domestic listed companies issuing GDRs, together with their directors, supervisors, senior management, controlling shareholders, and actual controllers, as well as the sponsors and sponsor representatives for the issuance of the underlying shares corresponding to the GDRs, and the securities service institutions and their relevant personnel, shall comply with applicable provisions and submit to the self-regulatory oversight of the exchanges. In cases of violations, the Shanghai and Shenzhen Stock Exchanges may impose self-regulatory measures and disciplinary sanctions.
Earlier, from June 2 to 9, the Shanghai Stock Exchange publicly sought public comments on the Provisional Measures. The Exchange disclosed that during the consultation period, it received a total of 60 submissions. It incorporated suggestions to remove the requirement for information disclosure in the stages of overseas market review acceptance, inquiry, and response related to GDR issuance and listing, and accordingly refined the relevant provisions. At the same time, in light of these comments, the Exchange made appropriate refinements to the specific wording of several provisions from a legislative‑technical perspective, with the aim of enhancing the clarity and conciseness of the regulatory framework.
During the consultation period, the Shenzhen Stock Exchange received a total of 109 comments and suggestions from various market participants. After consolidating those with identical substantive content, 47 remained. Among these, 2 comments pertained to specific provisions of the Exchange’s rules; following thorough deliberation and in light of the actual conditions of overseas markets, the timing requirements for interim information disclosure in connection with the issuance and listing of GDRs abroad have been revised and refined. Another 17 comments concerned the interpretation of higher-level regulations or institutional mechanisms; these have been forwarded by the Exchange to the relevant competent authorities. Lastly, 28 comments addressed issues related to working procedures or the interpretation of the Exchange’s rules; the Exchange will engage with the relevant market participants, provide clear explanations during rule‑training sessions, and take these matters into account in its operational planning.

Filing entails accountability: The Shenzhen Stock Exchange enhances corporate quality at the source.
Recently, following on-site supervision of the ChiNext IPO project of Gumei Optoelectronics, the Shenzhen Stock Exchange imposed disciplinary sanctions in the form of public censure on the issuer and two signing sponsor representatives found to have engaged in violations. In addition, the Exchange issued written warnings as regulatory measures against Changjiang Underwriting, the sponsor, and two signing accountants from Asia-Pacific Accounting Office. These cases exemplify the Shenzhen Stock Exchange’s comprehensive efforts to fully implement the principle that “filing entails accountability.”
Fully implement the principle of accountability upon filing.
During its review and on-site supervision of the Gumei Optoelectronics IPO project on the ChiNext Board, the Shenzhen Stock Exchange identified multiple instances of information-disclosure violations, including failure to accurately disclose the business model between the issuer and its major customers, the accounting treatment applied, and weaknesses in internal controls. Furthermore, Changjiang Underwriting and its sponsor representatives, as well as the certified public accountants who signed off on the engagement, failed to exercise adequate oversight and due diligence regarding significant irregularities concerning the issuer’s business model with major customers, new business lines and new clients, internal controls, and the flow of funds related to equity transfer payments, resulting in inaccurate verification opinions.
During the on-site supervision process, Gumaiguangdian submitted a request to withdraw; in accordance with applicable laws and regulations, the Shenzhen Stock Exchange continued its on-site oversight and, based on the violations identified during the supervision, imposed regulatory sanctions on the relevant parties. The implementation of the registration-based system by no means implies a relaxation of quality standards. Following the full rollout of the registration system, higher requirements will be imposed on issuers and intermediary institutions regarding their compliance awareness, integrity, standardized operations, and professional practice quality.
Behind the aforementioned cases, the Shenzhen Stock Exchange has adhered to the principle of “accountability upon filing,” implementing a range of measures to rigorously enforce issuers’ information disclosure obligations and intermediary institutions’ due diligence and gatekeeping responsibilities, thereby enhancing the quality of listed companies at the source.
Data show that the Shenzhen Stock Exchange, in accordance with laws and regulations, has imposed self-regulatory measures or disciplinary sanctions on violations identified during review processes, on-site supervision, and on-site inspections, thereby encouraging market participants to fulfill their respective duties. Specifically, it issued 38 verbal warnings and 53 written warnings, and handed down 21 disciplinary sanctions, including public reprimands, public censure, and suspension of document acceptance for a specified period. Among these, for issuers, intermediary institutions, and relevant personnel found to have committed violations in 16 on-site supervisory inspection projects, the Exchange implemented 35 regulatory measures, such as written warnings, and imposed 12 disciplinary sanctions in the form of public reprimands.
Four “Continuous Enhancements”
Strictly control the entry point.
Since the beginning of this year, the Shenzhen Stock Exchange has seen 59 IPO applicants voluntarily withdraw their applications during the review process—6 from the Main Board and 53 from the ChiNext Board. In addition, 15 refinancing projects and 1 restructuring project have been withdrawn. The Exchange has urged issuers and intermediary institutions to provide clear explanations and conduct thorough verification, resulting in the “forced withdrawal” of certain companies that did not meet the required criteria. Leveraging on-site supervision, the Exchange has conducted checks and verifications—through reviewing working papers, on-site interviews, and other methods—on key areas of concern for issuers and on the quality of underwriters’ professional practices, thereby working alongside the review process to ensure rigorous oversight at the gateway to the capital market. With a steadfast focus on information disclosure, the Shenzhen Stock Exchange has tailored its inquiries to the specific requirements for issuance and listing, as well as to the relevant information‑disclosure standards, continuously enhancing the materiality, relevance, and effectiveness of its questioning. The Exchange has also convened symposiums with 10 representative sponsoring institutions and, in two rounds of meetings, held discussions with sponsors exhibiting relatively high rejection rates, highlighting practical issues in their performance of duties and responsibilities, promptly communicating regulatory expectations, and urging sponsors to strengthen internal governance and quality control, thus fully leveraging the role of their three lines of defense.
Behind a series of initiatives, the Shenzhen Stock Exchange has adopted a multi‑pronged approach to implement reform requirements and strengthen regulatory oversight, starting with four areas of “continuous enhancement.”
Continuously strengthen the binding force of review and inquiry oversight. In practice, the Shenzhen Stock Exchange places great emphasis on the authenticity of issuers’ financials and business operations, the soundness of their internal controls, and the compliance of their business practices, treating these as key review priorities and enhancing its ability to identify material issues through multiple rounds of inquiries.
Continuously strengthen the coordination of on-site supervision. The Shenzhen Stock Exchange’s on-site inspections have identified several key issues among issuers, including inaccurate or deliberately misleading information disclosure, inadequate internal controls and insufficient implementation effectiveness, as well as a lack of cooperation with supervisory efforts.
Continuously strengthen the effectiveness of intermediary institutions’ gatekeeping responsibilities. In stages such as review inquiries and on-site supervision, the Shenzhen Stock Exchange has intensified its scrutiny of instances where intermediaries fail to fulfill their duties, consistently communicating regulatory principles and requirements. Based on practical experience, the key issues in sponsor offices’ due diligence and performance of duties include: inadequate verification of the issuer’s core businesses and transactions; insufficient identification of material risks; and reliance solely on routine verification procedures even when the issuer exhibits operational irregularities or significant changes in its business model; incomplete implementation of due diligence measures such as conofficeation requests, field visits, interviews, and inventory sampling; discrepancies between the actual verification work conducted on critical matters and the information disclosed; and hasty filing without ensuring that the issuer has effectively addressed and rectified issues identified in previous submissions.
Continuously strengthen the deterrent effect of self-regulatory measures. To date, in response to review and regulatory needs, the Shenzhen Stock Exchange has conducted cautionary talks with the heads of sponsorship business, quality control, and internal review at 12 sponsor institutions that have exhibited high withdrawal‑and‑rejection rates and substandard professional standards.
According to a responsible official at the Shenzhen Stock Exchange, the Exchange will, in the next phase, uphold an examination philosophy centered on information disclosure, earnestly fulfill its principal responsibility for issuance reviews, and rigorously safeguard the gateway to listing. It will fully implement the “zero tolerance” requirement, maintain stringent regulatory oversight, and impose more severe disciplinary measures on issues identified through review processes and on-site supervision, officely sanctioning acts of dishonesty and negligence to enhance the deterrent effect of regulation. Furthermore, the Exchange will continue to strengthen transparency in service delivery, review procedures, and regulatory oversight by publicly disclosing supervisory and disciplinary cases through mechanisms such as real-time review updates, professional training, and symposiums and exchanges, thereby accurately conveying regulatory guidance to market participants, encouraging them to proactively improve the quality of their filings, fostering a healthy market environment, and ensuring the steady and sustainable implementation of the comprehensive registration-based system.

The first batch of hybrid science-and‑technology innovation notes is set to be issued, precisely channeling financial support toward technological innovation.
According to the National Association of Financial Market Institutional Investors (hereinafter referred to as the “Association”) on July 20, in order to implement the requirements of the “Action Plan for Strengthening Support for Financing of Technology‑Based Enterprises,” and to provide technology‑focused companies with diversified, relay‑style financial services across their entire life cycle, the Association has innovatively launched hybrid science‑and‑technology notes, with the first batch of products slated for issuance in the near future.
Market participants note that the Traders Association has launched hybrid science-and‑technology innovation bonds, which link equity and debt in both the use of proceeds and bond‑structure design. This provides technology‑focused enterprises with diversified, relay‑style financial services, fills a gap in the bond market for hybrid financing, and creates a spectrum‑shifting effect from debt to equity.
Creating a “dynamic” operational mechanism
Meet the equity capital needs of enterprises.
Since the Traders Association launched science-and‑technology innovation notes in May 2022, it has so far supported 144 enterprises in issuing a total of 398 such notes, with aggregate proceeds amounting to RMB 341.8 billion. Among these, 20 private enterprises—including Sany Group, Geely Holding, Hongdou Group, and Hengli Group—have issued 77 science-and‑technology innovation notes, totaling RMB 52.52 billion, or 15.37% of the overall issuance. This initiative has benefited hundreds of companies recognized for their technological innovation, core technologies, and competitive advantages, with the raised funds channeled precisely into strategic emerging sectors such as information technology, biopharmaceuticals, integrated circuits, and high-end equipment.
Recently, the Traders Association has introduced hybrid science-and‑technology innovation bonds, focusing on addressing the shortage of equity‑based financing for technology‑driven enterprises. By structuring the bond terms to attract a broader base of investors from the bond market, these instruments aim to support the growth of such companies.
In terms of its operational mechanism, hybrid science-and‑technology innovation notes are tailored to the specific stage of a company’s lifecycle, optimizing the product structure and incorporating both equity‑ and debt‑like features in their design. By aligning with the varying financing needs and growth trajectories of technology offices at different stages, these instruments can flexibly incorporate provisions such as floating interest rates, share‑conversion clauses, and collateral arrangements. For example, among the initial batch of issuers, Sichuan Development, Shaanxi Investment, Nanjing Transportation, Hefei Xingtai, and Yibin Development have linked floating interest rates to the issuers’ investment returns from the growth of technology enterprises, thereby safeguarding and diversifying investors’ income streams. Meanwhile, Shanghai Lingang Bond Investors may, during a designated window period, convert their bond holdings into fund units, transferring the fund’s future returns to the investors. Additionally, Hubei Road & Bridge has strengthened its debt‑repayment safeguards by pledging 135 patent rights.
Market participants note that the pilot rollout of the first batch of hybrid‑type projects will help guide market institutions to adopt an equity‑investment mindset and grow alongside technology‑focused enterprises, bolster financing support for startups at the seed, early‑stage, and growth phases, and ensure and diversify investors’ sources of returns.
The first batch of hybrid science-and‑technology innovation notes was issued by entities spanning Shanghai, Jiangsu, Anhui, Hubei, Sichuan, and other leading innovation hubs, channeling financial resources to nurture the growth of regional technology‑driven enterprises. According to market participants, the launch of these hybrid innovation notes is grounded in respect for market norms and the natural rhythms of industrial development, leveraging capital and equity linkages as entry points. By addressing the differentiated needs of technology offices at various stages of their lifecycle, this initiative seeks to forge synergies across the financial sector and strengthen the role of finance in driving regional innovation and development.
Respect the market’s autonomous choices.
Stimulate the enthusiasm of all parties to participate.
Under the new product framework, the Traders Association provides only a basic structural framework for issuance terms, allowing market participants to independently design offerings tailored to the risk profiles and specific needs of companies at different stages of development. Market participants are encouraged to leverage their investment banking expertise, taking into account the risk characteristics and bespoke requirements of offices at various growth phases, and to craft flexible, customized structural provisions on top of the baseline terms. At the same time, disclosure requirements for technology‑focused enterprises are being refined, with an emphasis on future growth prospects and enhanced disclosure of key issuance‑related information. While ensuring compliance with regulatory standards, efforts are being strengthened to improve the quality of market services, respect market‑driven choices, and promote the efficient allocation of financial resources.
The first batch of hybrid science-and‑technology innovation notes has attracted widespread attention from investors. Overseas investors, insurance funds, wealth‑management products, and other market participants have all actively engaged with the issuers, and the product has been well received and endorsed by both investors and financiers.
Several issuing companies have stated that the new model can provide funding for their investments in technology‑focused enterprises, addressing the challenge of insufficient equity‑based capital for such offices, while also enabling bond investors to share in the growth dividends of these tech companies through structured design.
Several lead underwriters have stated that hybrid science-and‑technology innovation bonds will effectively meet the “equity‑debt linkage” and diversified financing needs of technology‑focused enterprises.
The Traders Association stated that, going forward, it will continue to strengthen its support for financing of technology‑based enterprises, implement financial measures to bolster technological innovation in innovative ways, and adopt more robust and concrete initiatives to foster the growth of such offices. It will also guide greater capital flows toward the field of scientific and technological innovation, thereby creating a favorable environment conducive to the development of technology‑driven companies.

The Beijing Stock Exchange and the National Equities Exchange and Quotations Company have released the results of their second-quarter evaluation of securities offices’ professional practice quality.
On the evening of July 20, the Beijing Stock Exchange and the National Equities Exchange and Quotations Company released the second-quarter 2023 practice-quality evaluation results for securities offices, in accordance with the “Detailed Rules for the Evaluation of Securities Offices’ Practice Quality on the Beijing Stock Exchange and the National SME Share Transfer System.”
According to reports, a total of 101 securities offices participated in this evaluation. Overall, the professional‑practice quality assessment system comprises two components: a professional‑quality score and compliance‑related deductions. The professional‑quality score primarily covers three key business areas: investment banking, brokerage, and research.
Among the 101 securities offices, 99 scored above 100 points. Shenwan Hongyuan, Kaiyuan Securities, and Zhongtai Securities ranked first, second, and third, with scores of 147.03, 146.38, and 139.35, respectively. Dongwu Securities and CITIC Securities followed closely, both posting scores exceeding 130 points. Only Hualin Securities and Shouchuang Securities fell below 100, with scores of 99.55 and 98.62, respectively.
Based on the professional quality scores, Shenwan Hongyuan and Kaiyuan Securities both scored above 50 points, significantly outpacing other brokerage offices; Zhongtai Securities, Dongwu Securities, CITIC Securities, GF Securities, Changjiang Securities, and Jinyuan Securities all posted scores exceeding 20 points. Notably, Kaiyuan Securities earned the highest scores in both Beijing Stock Exchange sponsorship and issuance‑M&A services, while Shenwan Hongyuan secured the top mark in National Equities Exchange and Quotation system listing‑recommendation services. Meanwhile, Kaiyuan Securities’ research division achieved a perfect score of 10, ranking first.
Based on compliance‑related quality‑penalty points, only 13 securities offices incurred deductions. Among them, First Capital Securities had 8 points deducted for its ongoing supervision duties in the National Equities Exchange and Quotations system. Caida Securities, Hualin Securities, CITIC Securities Investment, Kaiyuan Securities, and Sinolink Securities each received 4 or more penalty points as well.

The Beijing Stock Exchange and the New Third Board help private enterprises deepen their expertise in niche markets.
On July 19, 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”) were officially released. The Opinions explicitly state: “Improve policies and systems for financing support” and “Support eligible private enterprises in raising capital through initial public offerings and subsequent financings.”
As key platforms within China’s multi-tiered capital market for serving small and medium-sized enterprises, the Beijing Stock Exchange and the New Third Board have consistently seen a high proportion of private offices among their listed and挂牌 companies. A number of private enterprises have leveraged capital market financing to fuel their innovation and growth by listing on the Beijing Stock Exchange or gaining a public listing on the New Third Board.
Data show that as of July 20, the Beijing Stock Exchange had 210 listed companies, with a combined market capitalization exceeding RMB 270 billion. Among them, 185 were private enterprises, accounting for 88.10%. Collectively, these listed companies have raised RMB 48.613 billion through public offerings, averaging RMB 200 million per company. Of this amount, private enterprises accounted for RMB 37.915 billion, or 71.82%.
As of July 20, the New Third Board listed a total of 6,455 companies, with a combined market capitalization of RMB 2.17 trillion. Among them, 5,911 were private enterprises, accounting for 91.57%. Since 2013, 7,100 private offices have conducted 12,200 targeted issuances on the New Third Board, raising a cumulative RMB 461.687 billion. Year-to-date, 347 private companies have carried out 351 targeted offerings, raising a total of RMB 8.498 billion.
A group of innovative, fast-growing private enterprises listed on the Beijing Stock Exchange have been deeply engaged in niche markets, playing a proactive role in strengthening, supplementing, and stabilizing industrial chains. For example, Dingzhi Technology is a leading domestic manufacturer of micro‑special motors and a frontrunner in the voice‑coil motor segment for ventilators. Kaid Stone Quartz is the first domestic semiconductor quartz‑product company to obtain certification from SMIC for its 12‑inch quartz crystal boat products. KangLe Weishi has independently developed a nine‑valent HPV vaccine (with indications for males) that has successfully entered Phase III clinical trials. Tianma New Materials’ project, “Key Technologies and Industrialization of Zirconia‑Toughened Alumina Ceramic Substrates for IGBT Packaging,” was awarded the Second Prize of the 2022 Henan Provincial Science and Technology Progress Award. Betray is China’s leading enterprise in lithium‑ion battery anode materials, ranking first globally in anode material shipments for ten consecutive years, with customers including industry leaders such as CATL and BYD.
According to a responsible official at the Beijing Stock Exchange, private‑sector listed companies on the exchange generally exhibit the following characteristics: First, they are home to a high concentration of “Little Giant” enterprises specializing in niche, specialized, and innovative fields. Among private‑sector listed offices, 74 are national-level “Little Giants,” accounting for 40% of the total. Second, they demonstrate strong innovation. Their business sectors are heavily concentrated in emerging, innovation‑driven industries such as new energy and new materials, with advanced manufacturing and modern services together comprising more than 80% of their operations. Third, their financial performance and operations are stable and sound.
Zhang Ke, head of the New Third Board investment business at Bohai Securities, stated that the establishment of the Beijing Stock Exchange has made China’s capital market structure more rational and its functions more comprehensive, addressing longstanding gaps in supporting small and medium-sized private enterprises. Creating an exchange dedicated to fostering the development of innovative SMEs not only provides practical assistance to these companies but also helps bolster market confidence.

The two-tiered branch institutions of the National Administration of Financial Regulation have been officially inaugurated.
On the morning of July 20, the National Administration of Financial Regulation officially unveiled its 31 provincial-level regulatory bureaus, five separately listed city regulatory bureaus, and 306 prefectural‑level branch offices, marking a significant step forward in the reform of the financial regulatory system and the achievement of interim results.
An official from the National Administration of Financial Regulation stated that since its establishment, the Administration has resolutely implemented the major decisions and arrangements of the CPC Central Committee and the State Council, fully upheld the political nature and people-centered ethos of financial work, striven to enhance the quality and effectiveness of services to the real economy, officely safeguarded the bottom line against systemic financial risks, and vigorously advanced financial reform and development. The Administration has conscientiously fulfilled its new responsibilities and missions in financial regulation, focusing on strengthening and improving modern financial oversight by comprehensively reinforcing institutional supervision, conduct‑based supervision, functional supervision,穿透式监管 (penetrative supervision), and ongoing supervision. It continues to refine a financial regulatory framework that reflects China’s distinctive characteristics and the spirit of our times, striving to make fresh contributions to the comprehensive advancement of Chinese‑style modernization.
At the unveiling ceremony, the principal officials of the provincial and municipal branches of the National Administration of Financial Regulation unanimously stated that they officely support the CPC Central Committee and the State Council’s decisions and arrangements on institutional reform, earnestly implement the work requirements of the Party Committee of the National Administration of Financial Regulation, elevate their political awareness, strengthen their sense of responsibility and commitment, and continuously enhance the forward-looking nature, precision, effectiveness, and coordination of regulatory efforts. They pledged to project a fresh image through the new institution, demonstrate new achievements with renewed dedication, unswervingly follow the path of financial development with Chinese characteristics, and strive to open up a new chapter in financial regulation.
Regarding the unified unveiling of the provincial and municipal branches of the National Administration of Financial Regulation, Dong Ximiao, chief researcher at China Merchants Bank, stated that this marks the orderly advancement of financial regulatory reform and significant progress. Under the State Council’s institutional reform plan, China has established the National Administration of Financial Regulation, which assumes unified responsibility for financial supervision across all sectors except the securities industry. This move helps to reduce regulatory gaps and overlaps, while strengthening both conduct‑based and functional regulation. The standardized public unveiling of local branch offices signifies an accelerated pace of internal reforms within the National Administration of Financial Regulation.
Industry insiders expect that the National Administration of Financial Regulation will, in response to new developments and emerging needs, further refine its internal organizational structure and continuously enhance regulatory effectiveness. At the same time, this initiative will serve as an opportunity to advance the improvement of local financial regulatory frameworks.

The China Securities Regulatory Commission has guided the Securities Association of China in issuing the “Measures for Evaluating the Professional Quality of Bond Business at Securities Offices.”
Strengthen classified supervision of bond underwriting.
To thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the Central Economic Work Conference, and to carry out the major decisions and arrangements on institutional reform adopted by the Party and the state, in accordance with the requirements of the “Guiding Opinions on Deepening the Reform of the Bond Registration System” and the “Guiding Opinions on Enhancing the Professional Quality of Intermediary Institutions in Bond Business under the Registration System,” the China Securities Regulatory Commission has guided the Securities Association of China in revising and issuing the “Measures for Evaluating the Professional Quality of Securities Offices’ Bond Business” (hereinafter referred to as the “Evaluation Measures”). These measures further strengthen the accountability of intermediary institutions and guide them toward high‑quality practice, while also optimizing the evaluation indicator system for securities offices’ bond business and reinforcing categorized supervision of bond underwriting.
In 2020, the Securities Association of China revised and issued the “Measures for Evaluating the Professional Competence of Securities Offices in Corporate Bond Business (Trial),” which assesses securities offices across five dimensions: institutional and personnel safeguards, business capabilities, compliance in conducting business, effectiveness of risk control, and support for national strategies. This framework has played a positive role in promoting standardized bond‑related practices among securities offices. The latest revision further focuses on enhancing the quality and requirements of bond‑related professional conduct under the registration‑based system, comprehensively optimizing the evaluation indicator system and enabling all‑round, end-to‑end regulatory assessment of securities offices’ bond‑related activities. Adhering to a problem‑oriented approach and emphasizing both regulatory oversight and market guidance, the Measures aim to encourage securities offices to strengthen standardized management across the entire bond‑related process, thereby reinforcing their responsibility as gatekeepers under the registration‑based regime.
Meanwhile, in line with the approach of unifying corporate bonds and enterprise bonds to promote coordinated development, this revision of the “Evaluation Measures” incorporates the classified evaluation of intermediaries for enterprise bonds, thereby achieving unified standards and regulations. Under the transitional arrangements for the transfer of responsibilities related to enterprise bonds, the 2023 evaluation criteria, work procedures, and mechanisms for enterprise bond intermediaries will remain unchanged, and relevant work is currently underway. Starting next year, all intermediaries involved in enterprise bond issuance will be brought under a unified evaluation framework.
Going forward, the China Securities Regulatory Commission will guide the Securities Association and other relevant entities to conduct, in a prudent and orderly manner, the evaluation of securities offices’ bond‑related practice quality in accordance with the requirements set forth in the Evaluation Measures. At the same time, it will strengthen the application of classification‑based evaluation results, encouraging securities offices to continuously enhance the quality of their bond‑related services and further bolster the bond market’s capacity to support the high‑quality development of the real economy.

Commercial & Corporate
The State Administration for Market Regulation has launched a pilot program for the voluntary registration of enterprise metrology professionals.
To continuously strengthen the development of a skilled metrology workforce, the State Administration for Market Regulation recently issued a notice launching a pilot program in Chongqing and Sichuan Province to provide voluntary registration services for enterprise‑registered metrologists, thereby leveraging metrology functions and technical expertise to help enterprises overcome difficulties and alleviate their burdens.
The notice states that enterprises are encouraged to allow personnel who have obtained the Certified Metrologist professional qualification to voluntarily apply for registration as Certified Metrologists, thereby supporting efforts to enhance metrology talent capabilities. It also aims to guide enterprises in cultivating a pool of high‑level Certified Metrologists with deep specialized knowledge and strong technical expertise, thus helping to address challenging metrological and testing issues and ensuring the delivery of “high‑quality” projects through precise measurement. Registration‑implementing agencies will strengthen guidance and support for enterprises’ metrology systems and capacity‑building by establishing mechanisms such as a “diagnostic” service for enterprise‑based Certified Metrologists, an expert liaison system, and dedicated expert service teams.
The notice requires the Market Supervision Administrations of Chongqing Municipality and Sichuan Province to ensure that registration‑implementation bodies strictly comply with relevant laws and regulations on metrology, human resource management, finance, auditing, and other areas. In accordance with the “Regulations on the Professional Qualification System for Registered Metrologists” and the “Regulations on the Registration Management of Registered Metrologists,” among other pertinent provisions, they are to safeguard the legality, compliance, and sustainable development of the pilot program. Unscheduled supervisory spot checks and both overt and covert inspections will be conducted on registration‑implementation bodies, employing methods such as document review, on-site verification, telephone inquiries, and anonymous questionnaire surveys to strengthen oversight and regulation of metrology‑related projects, thereby ensuring the smooth implementation of the pilot initiative.

Serving the Real Economy: Law Offices and Enterprises Join Forces; the Ministry of Justice and the Ministry of Industry and Information Technology Jointly Launch a Special Campaign.
Recently, the Ministry of Justice and the Ministry of Industry and Information Technology jointly issued the “Special Action Plan for Serving the Real Economy: Lawyers and Enterprises Working Hand in Hand” (hereinafter referred to as the “Plan”), making arrangements and deployments for a nationwide special campaign to mobilize the legal profession in supporting the development of the real economy.
The Plan specifies that the special campaign will be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the spirit of the 20th National Congress of the Communist Party of China, and deepen the study and application of Xi Jinping’s Economic Thought and Xi Jinping’s Thought on the Rule of Law. With a focus on serving the real economy and advancing new‑type industrialization, the campaign will establish platforms for collaboration between lawyers and enterprises, integrate legal services into all sectors and stages of the modern industrial system, and give full play to the functions and roles of legal services. This will help strengthen and extend industrial and supply chains, bolster the real economy in terms of its strength, quality, and scale, and provide robust legal safeguards for accelerating the establishment of a new development pattern featuring domestic circulation as the mainstay and mutual promotion between domestic and international circulations.
The Plan requires that judicial administrative departments, departments in charge of industry and information technology, telecommunications administrations, and bar associations at all levels jointly organize leading law offices and lawyers to provide comprehensive, anytime‑anywhere, efficient, and convenient legal services to enterprises operating in the industrial and information‑technology sectors. During these activities, it is essential to thoroughly assess the legal service needs of various types of enterprises, strengthen the legal service workforce, and innovate legal service delivery models. By conducting briefings on laws and policies and deepening “rule‑of‑law health checks,” among other initiatives, the plan aims to continuously expand both the scope and depth of the legal profession’s support for the real economy, while enhancing the professionalism, precision, convenience, and effectiveness of such services. This will help enterprises mitigate legal risks, resolve legal issues, safeguard their legitimate rights and interests, and improve their capacity for law‑based, compliant business management.
The Plan stipulates that, under the unified coordination and guidance of the Ministry of Justice and the Ministry of Industry and Information Technology, the special campaign will be jointly organized and implemented by local judicial administrative departments, industrial and information technology authorities, telecommunications administrations, and bar associations. The campaign will run from July 2023 to December 2024. Local authorities are required to carefully plan and arrange activities, ensure close collaboration and coordination, strengthen targeted guidance, and promote the orderly implementation of the campaign. Emphasis should be placed on setting exemplary models to lead the way, promptly identifying and highlighting effective practices, and scaling up successful approaches to elevate the overall level of work. Furthermore, proactive publicity efforts should be intensified to broaden public awareness, participation, and influence, thereby fostering a favorable public opinion environment for the campaign.

The State Administration for Market Regulation has promulgated the Measures for the Administration of Food Business Licensing and Filing.
Recently, the State Administration for Market Regulation promulgated the Measures for the Administration of Food Business Licensing and Filing (Order No. 78 of the State Administration for Market Regulation), which will take effect on December 1, 2023.
To thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council on deepening the reform of food business licensing, fully comply with legal and regulatory requirements, and balance development with safety, the State Administration for Market Regulation has undertaken a revision of the Measures for the Administration of Food Business Licensing. Based on extensive consultation, in-depth investigations and studies, and thorough deliberation, it has formulated the Measures for the Administration of Food Business Licensing and Filing (hereinafter referred to as the “Measures”), which further standardize the administration of food business licensing and filing, strengthen the supervision and management of food safety, and ensure that food business operators fulfill their principal responsibilities. The Measures comprise 9 chapters and 66 articles, with key contents including:
Implement the decisions and arrangements of the CPC Central Committee and the State Council, and adapt to the needs of reform and development. In accordance with the requirements set forth in the CPC Central Committee and the State Council’s “Opinions on Deepening Reform and Strengthening Food Safety Work,” the Measures incorporate the relevant provisions of the newly revised Food Safety Law, adding a dedicated chapter that specifies the detailed requirements for filing solely for the sale of prepackaged foods. Building on the advancement of information‑based management of food business licensing and filing, the Measures further streamline the food business licensing process, shorten the processing time for licenses, and reclassify certain circumstances previously subject to licensing as reporting requirements, thereby unlocking the benefits of reform.
Focusing on the implementation of the “four strictest” requirements, the measures reinforce the principal responsibility of enterprises. In light of industry development and the prevailing food safety risk landscape, the Measures further clarify the scope of food business licensing and specify the circumstances under which a license is not required. They also bring into the licensing regime entities—such as chain headquarters and catering service management—that, in practice, are prone to creating gaps in accountability yet urgently warrant regulatory oversight. Moreover, from a risk‑management perspective, the Measures expand and refine the food safety responsibilities of operators of institutional canteens, organizers of food expos, and other relevant parties.
Adhering to a problem‑oriented approach, the Measures respond to the concerns and expectations of the grassroots level. They have reorganized the categories of food business license items and business types, clearly defining the specific classification criteria and the corresponding licensing and regulatory requirements for each category, thereby enhancing their practical applicability. In accordance with the provisions of the Administrative Penalty Law, penalty levels are set according to the facts, nature, circumstances, and degree of social harm associated with the violation; moreover, for violations that can be rectified, flexible measures such as an order to make corrections within a specified time limit are provided.

Multiple ministries and commissions are taking proactive measures to fully fulfill their responsibilities, thereby supporting the development of a unified national market.
Recently, the State Administration for Market Regulation, the National Development and Reform Commission, the Ministry of Finance, and the Ministry of Commerce jointly issued a notice to comprehensively review and eliminate all regulations and practices that impede the establishment of a unified market and fair competition.
This cleanup covers regulations, normative documents, and other policy measures—both those formulated and currently in force as of December 31, 2022—issued by all departments of the State Council and by people’s governments at or above the county level and their subordinate departments, which pertain to the economic activities of market entities. The focus is on eliminating provisions and practices that impede market access and exit, restrict the free flow of goods and production factors, increase production and operating costs, or distort business conduct—thereby undermining the development of a unified national market and fair competition.
It is clear that four categories of matters need to be addressed.
This cleanup initiative, launched by four ministries and commissions, adheres to the principles of “the drafter shall conduct the review” and “the implementer shall conduct the review,” as well as tiered review. Policy measures whose main provisions conflict with the requirements of a unified market and fair competition shall be repealed in accordance with the relevant procedures; those whose partial provisions are inconsistent with these requirements shall be revised following the prescribed procedures, thereby ensuring that all measures that should be cleared are fully cleared.
With regard to the scope of rectification, the notice issued by the four ministries and commissions clearly lists four categories of matters that must be addressed: obstacles to market entry and exit, specifically the imposition of unreasonable or discriminatory conditions for entry and exit—such as requiring enterprises to register in a particular location without explicit legal or regulatory provisions, or erecting barriers to cross‑regional operations or relocation; the unlawful establishment of qualification, technical, or commercial requirements that are inconsistent with the specific characteristics and actual needs of tendering and government procurement projects; the illegal granting of franchise rights or the awarding of such rights to operators without fair competition; and the restriction of the operation, purchase, or use of goods and services provided by specific operators—for example, unlawfully limiting or designating particular patents, trademarks, brands, components, origins, or suppliers.
Obstructing the free flow of goods and production factors, specifically including the imposition of discriminatory pricing and subsidy policies on out-of‑region and imported goods and services—such as discriminating against out‑of‑region enterprises and foreign‑invested enterprises, or enacting various preferential policies that amount to local protectionism; restricting the entry of out‑of‑region and imported goods and services into the local market or impeding the outbound shipment of local goods and the export of local services—for example, by adopting inconsistent technical requirements and inspection standards for goods and services, thereby erecting barriers between domestic and non‑domestic markets; and excluding or restricting out‑of‑region operators from participating in local tendering and government procurement processes—such as unlawfully stipulating requirements regarding the supplier’s place of registration, form of ownership, or organizational structure, or imposing other unreasonable conditions designed to exclude or limit operators’ participation in tendering and government procurement activities.
These practices affect production and operating costs, specifically including: unlawfully granting preferential policies to particular operators—such as illegal tax breaks or, by illegally altering an operator’s organizational structure, avoiding or reducing tax payments; improperly linking fiscal expenditures to taxes or non‑tax revenues paid by enterprises; unlawfully exempting specific operators from social insurance contributions; and, beyond what is prescribed by law, requiring operators to provide or withholding various types of security deposits.
It affects production and business operations, including compelling operators to engage in monopolistic practices prohibited by the Anti-Monopoly Law; unlawfully disclosing or requiring operators to disclose sensitive production and operational information, thereby facilitating their monopolistic conduct; setting government‑determined prices beyond the authorized pricing authority; and illegally interfering with the price levels of goods and services subject to market‑based pricing, among other acts.
Individual business households must receive enhanced support.
Professor Liu Jianwen of Peking University Law School has argued that the private sector is a key driver of high-quality development and a vital pillar in building a modernized economic system. In China, the private sector contributes more than 50% of tax revenues and accounts for over 60% of the country’s total economic output. At the same time, private enterprises are a major source of employment, creating a substantial number of jobs for society. Moreover, their proactive pursuit of innovation and their ability to respond swiftly to market demands have endowed them with a pivotal role in emerging industries and high‑tech sectors, making them an important engine for China’s economic transformation and upgrading.
The number and quality of development of private enterprises have become key indicators for gauging market vitality. Meanwhile, the individual economy constitutes an important component of the private sector.
Recent data released by the State Administration for Market Regulation show that in the first half of 2023, the number of newly established individual business households in China grew significantly, with a net increase of 11.365 million, up 11.3% year on year. As of the end of June, the total number of registered individual business households nationwide reached 119 million, accounting for 67.4% of all market entities. Among them, nearly 90% operate in the tertiary sector, and individual business households in the “four new” economic sectors numbered 33.982 million, representing 28.5% of the total—up 15.9 percentage points from the same period in 2022.
According to a responsible official from the State Administration for Market Regulation, in the first half of 2023, China’s individual business sector demonstrated a clear recovery trend and maintained overall stable development. However, these businesses continue to face numerous challenges in production and operations, and awareness of and the precision of various support policies and measures remain insufficient, necessitating further intensified assistance.
According to the results of an online survey conducted by the State Administration for Market Regulation in late June, the proportion of surveyed individual business households operating normally has risen from 77% at the beginning of the year to 90.2%, while the share reporting operating losses has fallen from 59.1% to 43.4%. However, since April, certain economic indicators have once again weakened more sharply than expected, and economic recovery and structural transformation continue to face headwinds—particularly the lack of sufficiently robust endogenous momentum to drive high-quality development. With their small scale, limited risk resilience, and weak market competitiveness, individual business households still confront numerous challenges in ensuring their survival and growth.
Specifically, this manifests as insufficient consumer demand and weak revenue performance. Many surveyed self-employed business owners report that a lack of orders, low customer traffic, and inadequate consumption are their most pressing challenges. While financing constraints have eased somewhat, bottlenecks persist. The survey shows that the share of self-employed businesses obtaining loans through bank channels has risen from 46% at the beginning of the year to 49.7%, and the proportion of those whose financing needs remain unmet has declined from 52.9% to 49.6%. Nevertheless, many still cite high barriers to accessing credit and low approval rates. Intense competition driven by product homogeneity remains a significant issue. Forty-two point three percent of respondents reported fierce intra‑industry competition, up three percentage points from the start of the year, making it the second-largest challenge—after insufficient consumer demand—surpassing even rising raw material costs. Moreover, further efforts are needed to enhance both awareness of and the precision of policies aimed at supporting self‑employed businesses. Forty-three point eight percent of such enterprises remain unaware of relevant support measures. Business owners increasingly call for more targeted policy outreach and diverse, practical interpretations that resonate with their realities.
Multiple ministries are focusing on resolving issues facing private enterprises.
Recently, central government departments—including the National Development and Reform Commission, the Ministry of Commerce, and the Ministry of Finance—have taken concerted action, either proactively strengthening communication and dialogue with private enterprises or promptly issuing relevant policy documents to further address the specific challenges and difficulties faced by private offices in key sectors.
On July 17, National Development and Reform Commission Director Zheng Zhajie convened a symposium, engaging in in-depth discussions with leaders of private enterprises including Transfar Group, Fangda Group, Feihe Dairy, and Zhuoli Hangguang. He carefully listened to their firsthand accounts of business operations and development, the challenges they face, and their policy recommendations.
On July 7, the National Development and Reform Commission convened a kickoff meeting for the pilot cooperation mechanism on investment‑loan linkage, bringing together the China Development Bank, the Agricultural Development Bank of China, the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, the China Construction Bank, and CITIC Bank. The meeting focused on exploring the establishment of this pilot cooperation mechanism to boost private investment and expand effective investment, thereby fully leveraging its positive impact.
While increasing fiscal investment and allocating employment subsidy funds, the finance authorities are supporting the development of market‑driven, socially inclusive employment channels through measures such as providing interest subsidies on entrepreneurship guarantee loans, offering tax and fee concessions to key groups engaged in employment and entrepreneurship, and granting tax reductions or exemptions to individual business households. For example, for industries like manufacturing, the incremental input VAT credit is fully refunded on a monthly basis, and the existing input VAT credit is refunded in a lump sum; small-scale taxpayers with monthly sales below RMB 100,000 are exempt from VAT. Meanwhile, eligible business entities involved in youth employment and entrepreneurship may, in accordance with regulations, enjoy relevant tax preferential policies.
On July 5, Minister of Commerce Wang Wentao chaired a roundtable meeting with foreign-invested enterprises, during which he carefully listened to their reports on business operations in China, as well as their concerns, demands, and policy recommendations. Representatives from 12 companies—including GE Healthcare, Novo Nordisk, Bayer, Merck, Roche, AstraZeneca, Sanofi, Takeda, and Pfizer—attended the meeting.
In 2023, the Ministry of Commerce launched the “Invest in China Year” series of investment promotion events to enhance foreign-invested enterprises’ understanding of China’s investment climate and foreign‑investment policies. Local governments have worked to optimize the business environment, facilitate the flow of production factors, and more vigorously stabilize existing foreign investment while expanding new inflows. An open China continues to create new opportunities for the world through its own development, steadily remaining a highly attractive destination for foreign investors. In the first five months of this year, the nationwide actual utilization of foreign capital reached RMB 574.81 billion, and 18,532 new foreign‑invested enterprises were established, up 38.3% year on year.
In this regard, Wang Xianlin, an expert on the State Council Anti-Monopoly Committee’s Advisory Group and a professor at Shanghai Jiao Tong University, argues that the key to restoring and enhancing the vitality of the private sector lies in bolstering business confidence. For the government, the crucial step in boosting private‑enterprise confidence is to strike an appropriate balance between market forces and state intervention, ensuring that the market plays a central role in resource allocation. The most pivotal tool for achieving this is the implementation of a fair‑competition review system. “This is an important measure to further advance the ‘delegation, regulation, and service’ reform; it can effectively standardize government conduct, reduce inappropriate government interference in microeconomic activities, and encourage the government to fully and properly fulfill its duties, thereby better performing its functions of macro‑regulation, market oversight, public‑service improvement, and safeguarding fair competition.”

How do the “31 Measures for the Private Economy” boost private enterprises’ confidence? An expert analysis.
On July 19, the CPC Central Committee and the State Council issued the “Opinions on Promoting the Development and Growth of the Private Sector.” The document’s significance is underscored by both the high-level leadership it represents—embodied in the joint endorsement by the CPC Central Committee and the State Council—and the private sector’s own importance and widespread attention. To help the private sector grow bigger, better, and stronger, bolster its expectations and confidence, and further unleash its dynamism, what key provisions in the document deserve close scrutiny, and how do they address pressing concerns? Tonight, News 1+1 has invited Xu Hongcai, Deputy Director of the Economic Policy Committee of the China Institute for Policy Science, to join us in exploring: How can we restore and strengthen confidence among private enterprises?
A landmark document has been released, addressing issues related to the private sector.
On July 19, the CPC Central Committee and the State Council issued the “Opinions on Promoting the Development and Growth of the Private Sector,” drawing widespread public attention. From the NDRC official’s responses to reporters’ questions, to analyses and interpretations by various media outlets, and to the press conference held by the State Council Information Office, what noteworthy details and perspectives have emerged amid the flood of information?
How should we view the background behind the release of the “31 Measures for the Private Economy”?
Xu Hongcai, Deputy Director of the Economic Policy Committee of the China Institute for Policy and Scientific Research, stated: “I believe the issuance of these new measures to promote the development and growth of the private sector is rooted in a specific set of real‑world circumstances. With the first‑half economic data now available, China’s economy is experiencing a steady recovery, yet its endogenous growth momentum remains weak. In particular, we have observed negative growth in private investment as well as in investment from Hong Kong, Macao, and Taiwan—indicating insufficient aggregate demand and a still‑pronounced overcapacity situation. This calls for a fresh reassessment of our medium‑ and long‑term development trajectory. For the first time, the ‘31 Measures for the Private Sector’ directly links the development of the private sector with the overarching priority of high‑quality development and ties it to the realization of the Second Centenary Goal, thereby elevating the private sector to a highly strategic position. The assertion that ‘the private sector is a vital force driving Chinese‑style modernization and an important foundation for high‑quality development’ has provided private enterprises with much‑needed reassurance and bolstered market confidence. At the same time, it is worth noting that over the past two decades, China has issued numerous policy documents aimed at encouraging the development of the private sector. These include the ‘36 Measures for the Non‑Public Sector’ in 2005, the ‘36 Measures on Private Investment’ in 2010, and the ‘28 Measures for Private Enterprises’ in 2019. Coupled with the current ‘31 Measures for the Private Sector,’ the total number of such policies now stands at 131—extremely comprehensive in scope. However, each set of measures has its own distinct emphasis and reflects the specific realities of its respective period. By contrast, this latest package adopts a more problem‑oriented approach while also looking ahead to long‑term development. I believe it seeks not only to address the immediate concerns of many private enterprises but also to lay a solid institutional foundation for their sustainable growth over the years to come.”
How do the “31 Measures for the Private Economy” address the concerns of private enterprises and bolster their confidence?
Xu Hongcai, Deputy Director of the Economic Policy Committee of the China Institute for Policy Science: The Opinions on Promoting the Development and Growth of the Private Sector are problem‑oriented and include many concrete operational details that, in my view, address key issues effectively. For example, in fostering a world‑class business environment, it calls for enhancing the fairness, standardization, and simplicity of regulation, while eliminating selective enforcement and “self‑proof”‑style oversight that requires enterprises to demonstrate their own innocence. In areas such as market access and project bidding, it further urges the continued dismantling of barriers to entry. All regions and departments are prohibited from imposing, or indirectly creating, entry obstacles through measures like filing requirements, registration, annual inspections, certifications, designations, or mandates to establish branch offices. These are specific, practical measures grounded in real‑world conditions. Moreover, I believe the most significant highlight this time is the explicit emphasis on the foundational role of competition policy. While the principle of equality before the law—treating private, state‑owned, and foreign‑invested enterprises equally—is often reiterated, in practice private offices frequently encounter varying degrees of unfair or discriminatory treatment during implementation. This document accordingly proposes to improve the institutional framework and policy‑implementation mechanisms for fair competition, ensuring that all types of ownership are treated equally and without discrimination.
How should we view the Opinions on Promoting the Development and Growth of the Private Sector? Private Enterprises Speak Out.
As of the end of May, the number of registered individual business households nationwide exceeded 118 million, and the number of private enterprises surpassed 50 million, accounting for over 92% of all enterprises. What impacts will the recently released “31 Measures” on the private sector have on businesses? And which aspects have left a lasting impression on entrepreneurs?
For businesses and entrepreneurs to operate with agility, a favorable public opinion environment is essential.
Xu Hongcai, Deputy Director of the Economic Policy Committee of the China Institute for Policy Science: Further improving the public‑opinion environment is a practical necessity. In the past, certain negative voices did indeed create unnecessary disruptions for private enterprises, and some successful entrepreneurs were subjected to unfair criticism, which took a toll on their mental and physical well‑being and dampened their enthusiasm for innovation and entrepreneurship. Moving forward, we must vigorously promote the exemplary deeds of outstanding entrepreneurs, guide the whole society to view fairly the wealth earned by private‑sector figures through lawful and compliant business practices, and at the same time encourage entrepreneurs to fulfill their social responsibilities. We should also extend understanding, tolerance, and support to those in the private sector who encounter setbacks or failures in their legitimate operations, enabling everyone to embark on innovation and entrepreneurship with confidence and a clear conscience.
How can we ensure effective implementation and enable policies to fully deliver their intended impact?
Xu Hongcai, Deputy Director of the Economic Policy Committee of the China Institute for Policy and Scientific Research, stated: “I believe it is crucial to ensure that the 31 measures are effectively communicated and deeply understood by every private-sector entrepreneur. Even more important, however, is for Party and government leaders at all levels, as well as relevant staff, to intensify their study and learning. This is because these measures address the need to clarify and streamline the relationship between the government and the market. In the past, certain shortcomings in the business environment often stemmed from inadequate or even absent, or overreaching, government support for enterprises and economic activities—meaning the ‘visible hand’ was not functioning as effectively as it should. In the southeastern coastal regions, which have long been at the forefront of reform and opening-up, the business environment tends to be better, and government officials generally demonstrate higher service standards and a deeper understanding. Moving forward, different regions can learn from one another and draw on each other’s experiences.”

To promote the development of the private sector, the CPC Central Committee and the State Council have jointly issued 31 policy measures.
On July 14, the CPC Central Committee and the State Council jointly issued the “Opinions on Promoting the Development and Growth of the Private Sector.”
The “Opinions” comprise eight key areas and 31 specific measures, calling for the continued dismantling of market access barriers and the full implementation of fair‑competition policies and institutional frameworks. They prohibit the establishment or disguised imposition of entry barriers through procedures such as filing, registration, annual inspections, designation, certification, mandatory branch‑establishment requirements, and others; they also forbid the conversion of government‑provided services into intermediary‑type services, and stipulate that no operator may be granted exclusive operating rights without undergoing a fair‑competition review. Furthermore, the document specifies the need to improve financing support policies and mechanisms, promote service models like “Xinyidai,” support eligible private small and micro enterprises in raising capital in the bond market, and refine systems for the regular prevention and timely settlement of overdue payments. It underscores the importance of further standardizing compulsory measures involving property rights, ensuring that seizures, detentions, and freezes of assets are conducted strictly within statutory authority, scope, limits, and timeframes. In addition, judicial interpretations will be issued to strengthen, in accordance with the law, penalties for corruption offenses such as embezzlement, misappropriation of funds, and bribery committed by employees of private enterprises, while continuing to enhance the intellectual‑property protection system, among other measures.

The Ministry of Industry and Information Technology plans to strengthen end-to-end network coordination to support the large-scale deployment of 5G messaging technology.
On July 19, the website of the Ministry of Industry and Information Technology published the “Notice on Public Solicitation of Comments on the ‘Notice on Strengthening End‑Network Coordination to Support the Large‑Scale Development of 5G Messaging’ (Draft for Comments),” with the deadline for submitting feedback set for August 19.
The Notice clarifies that a six-month transition period will commence from the date of its issuance. During this period, mobile phone manufacturers shall complete the system design and functional upgrades of their planned 5G‑enabled devices in accordance with relevant industry standards for 5G messaging and network access testing specifications. Upon expiration of the transition period, any newly submitted applications for network access approval for 5G phones must support 5G messaging and be accompanied by the corresponding network access test reports. The Notice further requires basic telecommunications operators to establish and refine management and technical assurance measures and mechanisms for 5G messaging services, and mandates that mobile phone manufacturers implement a dedicated switch for enabling 5G messaging, standardize the user interface display of 5G messages, and clearly distinguish 5G messages from other types of communications such as conventional SMS or MMS.

Taxation
Strengthening Policy Implementation and Further Upgrading Tax and Fee Services
The tax authorities are steadily advancing thematic education to help businesses overcome difficulties and resolve challenges.
Focus on the issues and address them head-on. Throughout the in-depth implementation of thematic education, the Party Committee of the State Taxation Administration has remained officely problem‑oriented, organizing a nationwide survey to solicit the needs of taxpayers and payers. By identifying the most pressing, difficult, and concerning issues they face and pinpointing the pain points, bottlenecks, and challenges in tax filing and payment, the Administration has continuously refined and enhanced its tax and fee‑related services, ensuring that the thematic education campaign within the tax system delivers tangible results.
Identify the pain points and deliver timely, targeted support.
Limited access to financing and high borrowing costs have long been persistent challenges for small and micro enterprises. The State Taxation Administration has continued to roll out the “Tax‑Bank Collaboration” initiative nationwide, turning taxpayers’ intangible creditworthiness into tangible financial support to foster the growth of these businesses. According to statistics, in the first quarter of 2023, small and micro enterprises across the country secured 2.5573 million bank loans through this program, totaling RMB 698.71 billion—up 56.41% year on year.
During the thematic education campaign, the tax authorities deepened their pilot program for direct data connectivity with the banking and insurance regulatory authorities. By jointly establishing a dedicated, secure network link between the tax system and the banking and insurance regulatory financial network, they provided specialized lines to small and medium-sized banks engaged in “tax‑bank collaboration” initiatives. Meanwhile, in some regions, the banking and insurance regulatory authorities have taken the lead in building purely public‑interest “tax‑bank collaboration” platforms tailored to micro and small enterprises. Through online self‑authorization by businesses and real‑time online access by banks, these platforms enable mutual recognition of tax credit and financial credit, thereby more securely and efficiently helping micro and small enterprises alleviate the challenges of difficult and costly financing.
At present, tax authorities have achieved interconnectedness between tax‑related information at the national and provincial levels and the National Integrated Financing Credit Service Platform. Localities are continuously expanding application scenarios and innovatively launching “tax‑bank collaboration” financial products, thereby injecting much‑needed capital into a growing number of struggling enterprises.
To enable agricultural enterprises to access loans with high credit limits, low costs, rapid approval processes, and extended repayment terms, the Sichuan Provincial Tax Service Bureau, building on its earlier experience with the “Tax‑Electricity Index Loan,” has collaborated with the Chengdu Branch of the People’s Bank of China, the Provincial Banking and Insurance Regulatory Commission, and other relevant authorities. Tailoring the new model to the operational characteristics of cooperatives and other agribusinesses, it has recalibrated the weighting of production, expectations, and sales indices, thereby launching an updated cooperative‑specific “Tax‑Electricity Index” framework. This initiative helps banks upgrade and develop a dedicated “Tax‑Electricity Index Loan” product for small and micro agricultural enterprises, providing robust support for asset‑light businesses such as cooperatives to secure financing smoothly.
“Agricultural production requires substantial capital to purchase farm equipment, seeds, fertilizers, and other inputs, yet the pace of capital recovery is often too slow, leaving ‘cash‑flow constraints’ a widespread issue,” said Wang Yuanwei of the Yixin Agricultural Machinery Professional Cooperative in Meishan City, after swiftly securing credit under the “Tax‑Electricity Index Loan.” “We are extremely grateful for this initiative jointly launched by the tax authorities and relevant departments. With a high credit limit of RMB 2 million and low costs, this unsecured loan has come like a timely rain, helping us address our most pressing funding needs.”
Since the launch of the thematic education campaign, Sichuan’s “Tax‑Electricity Index Loan” has established a financial service model featuring “pre‑loan precision assessment, intelligent credit underwriting during the loan process, and real‑time post‑loan early warning.” Since April, it has extended total credit lines of RMB 1.511 billion and disbursed loans totaling RMB 1.446 billion, serving sectors such as manufacturing, services, and agriculture, thereby effectively alleviating financing challenges faced by small, medium, and micro enterprises.
Unblocking bottlenecks—both “completing the supply chain” and “strengthening it”
The smooth and stable operation of industrial and supply chains is the foundation for maintaining a healthy economic cycle. The State Taxation Administration has included “strengthening supply chains and supporting enterprises” among the first batch of measures under the 2023 “Spring Breeze Action for Convenient Tax Services.” Tax authorities across the country have launched in-depth initiatives to bolster supply chains and assist businesses, leveraging tax‑related big data to help companies expand their sources of upstream raw materials and open up downstream sales channels.
How effective has the “Strengthening Supply Chains to Support Enterprises” initiative been, and what bottlenecks remain to be addressed? Since the launch of the thematic education campaign, the State Taxation Administration has conducted in-depth field surveys at the grassroots level, soliciting needs, unblocking obstacles, and resolving challenges, thereby continuously consolidating the outcomes of this initiative. During these surveys, some frontline tax officials noted that the “National Taxpayer Supply Chain Inquiry” platform currently only allows users to access basic information such as company names and tax credit ratings, while lacking detailed data like product specifications, making matching efforts considerably more difficult. Moreover, when dealing with cross-provincial supply chain coordination, communication costs tend to be high.
Focusing on issues raised at the grassroots level, the State Taxation Administration has optimized the “National Taxpayer Supply Chain Inquiry” feature to align with the working habits of tax officials, further enriching and refining enterprise data to enhance demand‑supply matching. This enables the creation of tailored, case‑by‑case “exclusive lists” for each enterprise, facilitating targeted support. Meanwhile, the Taxpayer Services Department and the Big Data Risk Management Bureau of the State Taxation Administration are coordinating across the board, strengthening information sharing and inter‑provincial collaboration among special task forces, and leveraging the communication and coordination roles of provincial liaison officers. These efforts aim to dismantle inter‑provincial barriers in “supply‑chain supplementation and enterprise assistance,” thereby further bolstering supply‑chain reinforcement in weak links and strengthening value chains in areas of comparative advantage.
Yantai Hengyuanlong Auto Parts Co., Ltd. is a manufacturer specializing in automotive components such as engine bearing shells, bearing sleeves, and brakes and related parts. With copper prices soaring this year, the company has faced an acute shortage of specialty copper raw materials and risks of supply disruptions, leaving it unable to fulfill customer orders on schedule. During a field visit, the local tax authorities learned of the company’s operational challenges and promptly assigned dedicated personnel to use the “National Taxpayer Supply Chain Inquiry” platform to identify suitable raw material suppliers.
Through precise information matching and cross-provincial communication and coordination, we successfully connected the company with a copper‑material supplier, facilitating the procurement of raw materials and enabling orderly production on a voluntary basis. Recently, the two companies signed a copper‑material purchase contract worth RMB 877,300 and established a long-term cooperation agreement, ensuring the enterprise’s continued stable operations.
Data show that in the first half of this year, tax authorities nationwide collected information on 4,262 enterprises facing raw-material shortages, used the “National Taxpayer Supply Chain Inquiry” function to match them with 15,626 suppliers, and helped 3,670 enterprises facilitate purchases and sales totaling RMB 10.502 billion, thereby effectively linking upstream and downstream players in the industrial chain.
Overcoming Difficulties: Alleviating Concerns and Providing Relief with “New Policies”
“The survey findings indicate that, in light of evolving economic and social conditions—particularly the impact of the COVID‑19 pandemic on business entities—the scope of circumstances previously defined in Yunnan Province for applying for hardship‑based tax relief no longer aligns with the new realities and requirements of economic and social development. Moreover, the original eligibility criteria do not correspond to the actual difficulties faced by certain enterprises today, leaving many struggling businesses unable to benefit from the policy incentives,” said a responsible official from the Yunnan Provincial Tax Service Bureau’s research team.
The “old policy” has failed to resolve the “new predicament.” To effectively address this issue, the Yunnan Provincial Tax Service, after conducting preliminary research and extensive consultations, and in accordance with relevant laws, regulations, and normative documents—including the Interim Regulations of the People’s Republic of China on Urban Land Use Tax, the Implementation Measures for Urban Land Use Tax of Yunnan Province, and the State Administration of Taxation’s Announcement on Delegating Approval Authority for Difficult‑to‑Pay Tax Reductions and Exemptions—has issued the “Announcement of the Yunnan Provincial Tax Service of the State Administration of Taxation on Matters Relating to Difficult‑to‑Pay Reductions and Exemptions of Urban Land Use Tax,” together with an accompanying explanatory note. These measures adjust and refine the circumstances under which applications for such reductions and exemptions may be submitted, aligning them more closely with actual conditions.
Compared with the previous policy, the new measures further broaden the scope of circumstances eligible for hardship-based reductions or exemptions from urban land use tax. They now include cases where taxpayers have suffered substantial losses or experienced significant disruptions to their normal production and business operations due to sudden public health emergencies or public safety incidents. The approval criteria for such relief have been relaxed: the threshold for calculating asset loss has been lowered from 30% to 20%, the threshold for calculating the loss rate for the relevant year has been reduced from 25% to 15%, and the period of complete suspension of production or business operations has been shortened from one year to six months.
“The newly introduced tax relief policy for urban land use tax has added new circumstances under which taxpayers can apply for reductions or exemptions, which is a genuine boon for our hotel industry,” said the accountant at Kunming Guandu Grand Hotel during a follow-up visit by the research team. “With these reductions and exemptions, the company will reinvest the savings into hotel operations and employee payroll, bolstering our confidence and giving us greater assurance as we move forward with business development.”
Policies are being further strengthened, and services are being upgraded. Officials from relevant departments of the State Taxation Administration stated that delivering tangible benefits to the people and addressing their most pressing concerns are key components of the thematic education campaign on studying and implementing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. The tax authorities will continue to focus on the issues that matter most to the public—those that cause the greatest urgency, worry, and aspiration—working to eliminate the “pain points” strongly voiced by taxpayers and payers, unblock the “bottlenecks” hindering the high-quality development of market entities, and overcome the “difficulties” that impede the improvement of the tax‑related business environment. They will also introduce a series of new measures to streamline tax filing and payment services, striving to ensure that “we respond to every call from the people and deliver on every expectation they hold.”

Ministry of Finance: In the first half of 2023, domestic value-added tax increased by 96% year-on-year, driven by a substantial carryforward VAT refund in the same period last year and a low base.
On July 19, the Ministry of Finance released data on fiscal revenue and expenditure for the first half of 2023. In the first six months, national tax revenue totaled RMB 9.9661 trillion, up 16.5% year on year.
The Ministry of Finance reported that in the first half of the year, national general public budget revenue totaled RMB 11.9203 trillion, up 13.3% year on year. The relatively strong growth in fiscal revenue was driven not only by the economy’s recovery but also, to a large extent, by the large-scale value-added tax credit refund policy implemented starting in April last year, which resulted in a substantial volume of refunds and lowered the base for comparison. This year, such refunds have returned to normal levels, with refunds in the first half of the year down by RMB 1.5236 trillion compared with the same period last year. As a result, tax revenues—particularly domestic value-added tax—increased sharply, thereby boosting the overall growth rate of fiscal revenue.
The main tax revenue items are as follows:
Domestic value-added tax totaled RMB 3.7503 trillion, up 96% year on year, primarily due to the relatively large carryforward tax refunds in the same period last year, which resulted in a low base.
Corporate income tax totaled RMB 2.6859 trillion, down 5.4% year on year, primarily due to factors such as a decline in corporate profits.
Individual income tax revenue totaled RMB 780 billion, down 0.6% year on year, primarily due to the continued impact of the special additional deductions policy and a larger year-on-year increase in tax refunds resulting from the annual individual income tax settlement, which offset the growth rate.
Stamp duty totaled RMB 211.5 billion, down 14.6% year on year. Of this amount, stamp duty on securities transactions amounted to RMB 110.8 billion, a decrease of 30.7% compared with the same period last year.
Among real estate-related taxes, deed tax increased by 5.1%, and property tax rose by 3.9%; urban land use tax declined by 4.9%, the land value-added tax fell by 18.2%, and the farmland occupation tax decreased by 20.4%.

Guangdong Releases Guidelines on Tax and Fee Preferential Policies for the Manufacturing Sector
On July 18, the Guangdong Provincial Tax Service Bureau published on its website the “Guidance on Tax and Fee Preferential Policies for Supporting the High-Quality Development of the Manufacturing Sector,” which is intended for reference by eligible taxpayers.
The Guidelines comprise six sections—covering universal policies to reduce the tax and fee burden on the manufacturing sector, tax incentives to foster innovation in manufacturing, tax and fee measures to support the green transformation of manufacturing, tax incentives to stimulate investment, tax policies designed to attract and retain talent in the manufacturing industry, and measures to bolster the development of ancillary services for manufacturing—totaling 63 specific policies. These are systematically organized and presented according to categories such as “eligible entities,” “details of the preferential treatment,” “relevant explanatory notes,” and “legal and regulatory basis.”

The tax-related business environment requires concerted efforts to safeguard.
According to the latest data from the tax authorities, since the establishment in October 2021 of a regular, multi‑agency joint mechanism to combat fraudulent invoicing and tax fraud, as of the end of May this year, cumulative inspections have been conducted on 270,000 enterprises suspected of such activities, and 10.4815 million fictitious invoices have been identified, yielding significant results. The concerted efforts of multiple departments to safeguard tax fairness once again underscore the vital effectiveness of collaborative tax governance.
As China’s tax administration reform continues to deepen and the functions of taxation are expanded and enhanced, tax work has become more extensively integrated into all sectors of economic and social development. At the same time, the emergence of new business forms and models presents growing challenges for tax administration. Consequently, safeguarding a favorable tax‑related business environment cannot rely solely on the tax authorities acting alone; it requires coordinated efforts and mutual cooperation among relevant departments, intermediary agencies, taxpayers, and other stakeholders.
First, inter‑departmental cooperation must be deepened and expanded. The Opinions of the CPC Central Committee and the State Council on Further Deepening Tax Collection and Administration Reform explicitly call for advancing “collaborative governance based on integrity and mutual trust” and continuously strengthening and broadening the framework of tax‑related joint governance. All relevant departments should further enhance information sharing and coordinated management, break down information silos, refine coordination mechanisms, and actively promote cross‑departmental collaborative oversight, working together to deliver more efficient, precise, and high‑quality services to taxpayers. Moreover, they should strengthen communication, pool collective wisdom, and proactively explore new avenues and modalities for inter‑departmental cooperation in the tax field, striving not only to improve basic services but also to provide a wider range of value‑added offerings. Inter‑departmental collaboration must prioritize tangible results; once mechanisms are streamlined, stability and continuity should be maintained, avoiding superficial engagement. Only in this way can we continually unlock the potential of cooperation, uphold policy expectations, and create greater opportunities.
Secondly, tax‑related intermediary agencies must uphold self‑discipline and strengthen their own capabilities. In recent years, such agencies in China have grown rapidly, providing taxpayers with tailored, professional services and effectively supporting enterprise development. However, some of these agencies have engaged in illegal practices—such as disseminating false tax‑related advertising and using shell companies to issue fraudulent invoices in order to evade taxes—thereby undermining the tax‑related business environment. All intermediary institutions should reinforce self‑regulation, fully recognize that China is continuously tightening oversight of both professional conduct and industry standards, abandon any reliance on luck or speculative behavior, seize market opportunities, and build core competencies. By fostering a standardized, professional industry climate, they can further enhance the overall tax‑related business environment.
Thirdly, business entities should act with integrity and abide by the law. In recent years, China has steadily strengthened its tax‑credit system, leveraging joint incentives and penalties to ensure that “those who honor their commitments enjoy unimpeded access, while those who lose trust face increasing obstacles.” At the same time, through value‑added applications of tax‑credit ratings—such as the “bank‑tax collaboration” initiative—compliant enterprises can also benefit from greater convenience in areas like financing and tendering. Accordingly, all business entities should regard tax credit as an integral part of their corporate brand: they must remain vigilant about potential risks, strictly adhere to legal and regulatory standards, and conduct business in a responsible and lawful manner; at the same time, they should proactively seize the advantages and opportunities afforded by strong tax credit, acting as astute and forward‑thinking managers.
The tax-related business environment is a rich and diversified “ecosystem” that depends on the concerted efforts of all stakeholders. Only by aligning their actions and working in unison can we elevate collaborative tax governance to a new level, continuously injecting fresh momentum into the creation of an even better tax business climate. At the same time, only with the sustained optimization of this business environment can taxation more effectively fulfill its fundamental, pivotal, and safeguarding roles in national governance—empowering government agencies to enhance their governance capabilities and refine macro‑regulation, while also fostering a more stable and equitable environment for the long-term, healthy development of industries and enterprises.

Litigation & Arbitration
The Guangdong High People’s Court has released the 2022 White Paper on Administrative Litigation and ten landmark cases.
On July 17, the Guangdong High People’s Court released its 2022 White Paper on Administrative Litigation and published ten landmark cases.
The ten typical cases released in this batch cover a range of issues, including accurately determining the validity of administrative agreements, urging administrative agencies to fulfill their statutory duties, standardizing compulsory administrative measures, supporting administrative agencies in performing their duties in accordance with the law, revoking unlawful administrative decisions, and appropriately mitigating the severity of administrative penalties. Among them, Case No. 1 clarifies that the registered operator of a vessel bears management obligations toward vessels operating under its name and must assume legal liability for any unlawful acts that harm the marine ecological environment. This helps guide shipping enterprises to regulate their practice of “affiliation‑based” operations and to proactively fulfill their principal responsibility for protecting the marine ecosystem.

The high people’s courts of Beijing, Tianjin, and Hebei signed the “Framework Agreement on Strengthening Judicial Protection of Intellectual Property” in the Xiongan New Area.
On July 18, the Beijing Higher People’s Court, the Tianjin Higher People’s Court, and the Hebei Provincial Higher People’s Court signed the Framework Agreement on Strengthening Judicial Protection of Intellectual Property in the Xiongan New Area.
The agreement proposes the establishment of nine mechanisms: a mechanism for enhancing the quality and efficiency of intellectual property adjudication; a joint research mechanism for intellectual property protection; an information-sharing mechanism for judicial resources related to intellectual property; a coordinated, synergistic mechanism for comprehensive intellectual property protection; a regional collaborative mechanism for judicial publicity on intellectual property protection; a mechanism for regularizing traveling court sessions on intellectual property matters; a mechanism for talent cultivation and exchange in intellectual property adjudication; a consultative and coordinated mechanism for intellectual property protection; and a mechanism for providing services to support scientific and technological innovation.

Guangzhou is positioning itself as the global preferred destination for online arbitration.
Deepening expertise in international arbitration and accelerating dispute mediation.
Recently, the Guangzhou Arbitration Commission received an investment dispute case submitted by a company from a Southeast Asian country. Leveraging its “Online Dispute Resolution Platform,” which was the first of its kind to be launched on the APEC website, the arbitral tribunal conducted joint online mediation, resulting in the swift settlement of this cross-border commercial dispute.
This is a concrete example of how Guangzhou’s Internet Arbitration Platform provides a “one-stop” online solution for efficiently resolving cross-border commercial disputes. In 2022, the Guangzhou Arbitration Commission handled over 8,500 online arbitration cases, with a total value of RMB 1.59 billion, involving parties from 58 different nationalities, thereby further enhancing its international credibility.
In recent years, Guangzhou has been committed to becoming the global preferred destination for online arbitration. To further transcend geographical constraints, the Guangzhou Arbitration Commission has actively implemented international and digital practices such as cross-border remote hearings, and in 2020 issued the “Guangzhou Standard,” a set of recommended guidelines for online arbitration that lays out specific requirements for remote‑hearing hardware and software, identity verification, and electronic service of documents. In 2022, the Commission addressed key challenges in online arbitration proceedings by further clarifying technical standards for remote hearings.
To date, the “Guangzhou Standard” has been recognized and jointly promoted by 46 overseas arbitration institutions and more than 150 domestic ones. Building on this foundation, the Guangzhou Arbitration Commission has further advanced the digitalization of arbitration, continuously adapting to new internet technologies and emerging business models. At the end of last year, the Metaverse Arbitration Court enabled virtual courtrooms to present electronic evidence; meanwhile, the first intelligent arbitration robot, “Yun Xiaozhong,” integrates services such as case filing, consultation, and public outreach, and has repeatedly conducted legal‑education campaigns in communities and enterprises. To date, it has provided over 14,000 intelligent consultations and processed nearly 300 cases.
A responsible official from the Guangzhou Arbitration Commission stated that the Nansha Consensus on Arbitral Cooperation, jointly issued with leading arbitration institutions from the BRICS countries, has so far been signed and mutually recognized by more than ten countries and regions. “Not a single one of the international cases we have handled has been set aside or refused enforcement abroad, and our arbitral awards are increasingly being recognized and enforced by foreign courts,” the official added.

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