JC Master Legal News Issue 1064

Key Takeaways for This Issue
The Shanghai Stock Exchange and the Singapore Exchange have signed a Memorandum of Understanding on ETF Product Interconnectivity Cooperation.
The Shanghai Stock Exchange and the Singapore Exchange have formally signed a Memorandum of Understanding on ETF product mutual access, marking a new step forward in China–Singapore capital market cooperation and elevating cross-border product connectivity to a higher level.
The State Council has promulgated the newly revised Regulations on the Administration of Commercial Cryptography.
On May 24, the Chinese Government Website published the Regulations on the Administration of Commercial Cryptography, which will take effect on July 1, 2023.
The National Energy Administration plans to further standardize the licensing management of electricity business for renewable energy generation projects.
On May 25, the website of the National Energy Administration published the “Notice on Public Solicitation of Comments on the ‘Notice on Further Standardizing Matters Related to the Licensing Management of Power Operations for Renewable Energy Generation Projects (Draft for Comments)’,” with a deadline for submitting feedback set at 30 days from the date of the notice’s publication.
The Supreme People’s Court and the Supreme People’s Procuratorate have jointly issued a judicial interpretation concerning criminal cases of rape and indecent assault involving minors.
On May 25, the Supreme People’s Court website published the “Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases of Rape and Indecent Assault on Minors,” which will take effect on June 1, 2023.
Finance & Capital Markets
The China Securities Regulatory Commission and the Monetary Authority of Singapore held the 7th China–Singapore Securities and Futures Regulatory Roundtable.
The China Securities Regulatory Commission and the Monetary Authority of Singapore held the seventh China–Singapore Securities and Futures Regulatory Roundtable in Beijing.
Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission, and Ho Heng‑Kian, Deputy Managing Director of the Monetary Authority of Singapore, attended the meeting and delivered remarks. The two sides reviewed the consensus reached by the leaders of both countries to strengthen comprehensive, innovation‑driven cooperation in finance and other sectors, engaged in an in-depth exchange on their respective latest regulatory developments and practices, as well as on progress in the Shanghai–Singapore ETF mutual access initiative, and reached important agreements on practical cooperation in capital markets—covering the expansion of ETF mutual access, enhanced collaboration on futures and derivatives, and increased exchanges of regulatory personnel—to help the two countries build a forward‑looking, high‑quality, all‑round partnership. During the meeting, the two sides also witnessed the signing of a special memorandum of understanding between the Shanghai Stock Exchange and the Singapore Exchange on ETF mutual access. More than 40 participants attended, including Lim Tuan‑Li, Assistant Managing Director of the Monetary Authority of Singapore; heads of relevant departments from the China Securities Regulatory Commission and the Monetary Authority of Singapore; and representatives from both stock exchanges.
The China–New Zealand Securities and Futures Regulatory Roundtable serves as an important platform for implementing the outcomes of President Xi Jinping’s visit to New Zealand in November 2015, fostering dialogue between the regulatory authorities and industry representatives of both countries, and deepening practical cooperation in the capital markets.
The Shanghai Stock Exchange and the China Aerospace Science and Technology Corporation have signed a strategic cooperation memorandum.
On May 24, the Shanghai Stock Exchange and the China Aerospace Science and Technology Corporation (hereinafter referred to as the SSE and CASIC, respectively) signed a strategic cooperation memorandum. Wu Yansheng, Secretary of the Party Leadership Group and Chairman of CASIC, and Chief Engineer Li Zhongbao; along with Cai Jianchun, Deputy Secretary of the SSE Party Committee and General Manager, and Lü Hao, Member of the Party Committee and Deputy General Manager, attended the signing ceremony and held a symposium. Li Zhongbao and Lü Hao signed the memorandum on behalf of their respective organizations.
Wu Yansheng stated that, under the high attention and strong leadership of the CPC Central Committee, the State Council, and the Central Military Commission, the China Aerospace Science and Technology Corporation has steadfastly fulfilled its mission to strengthen the country and bolster the military, accelerated efforts to build a space power, and provided effective support for the development of a world-class armed force. In recent years, with the assistance of the Shanghai Stock Exchange, the Corporation has actively leveraged the capital market to promote high-quality corporate development, achieving notable results in areas such as its IPO and capital‑market financing. The signing of this strategic cooperation memorandum will further deepen the robust partnership already established between the two parties. Moving forward, the Corporation will thoroughly implement the spirit of the 20th National Congress of the CPC and the strategic plans for accelerating the building of a space power, strengthen strategic cooperation with the Shanghai Stock Exchange, establish a regular communication mechanism, make full use of the capital market, and continuously elevate the level of its high‑quality development. In doing so, it will deliver greater achievements and demonstrate stronger commitment in advancing the construction of a world‑class aerospace enterprise group and in carrying out reform in the new era, thus forging a new chapter in the development of China’s space sector.
Cai Jianchun stated that the report to the 20th National Congress of the Communist Party of China emphasized the need to accelerate China’s drive for high-level scientific and technological self-reliance and strength, and to expedite the building of a space power. In earnestly implementing the decisions and arrangements of the CPC Central Committee, the Shanghai Stock Exchange is committed to supporting the national innovation-driven development strategy and the reform-and‑innovation strategy for state-owned enterprises. By leveraging its institutional strengths, the Exchange provides comprehensive services across its entire product lineup, helping to strengthen, improve, and expand state capital. For a long time, the Shanghai Stock Exchange has maintained a solid cooperative relationship with the China Aerospace Science and Technology Corporation, enjoying a broad foundation and ample room for collaboration. As we enter a new era of historic opportunities, this partnership has reached a new stage. Taking this signing as an opportunity, the Shanghai Stock Exchange will engage in comprehensive and in-depth cooperation with the Corporation in areas such as increasing the asset securitization ratio, enhancing the quality of listed companies, strengthening corporate governance, improving investor relations, promoting specialized consolidation among listed offices, and issuing bonds and REITs. Through these efforts, the Exchange aims to advance high-level scientific and technological self-reliance and strength in the aerospace industry, thereby making new and greater contributions to the goal of fully building a modern socialist country.
Under the Memorandum of Strategic Cooperation, the two parties will, in accordance with the principle of “complementary strengths and win-win cooperation,” adhere to market‑oriented and law‑based approaches, and engage in comprehensive collaboration across areas including corporate restructuring and IPOs, enhancing the quality of listed companies, product innovation, and training and research. They will also strengthen information exchange and sharing, and establish a long-term, stable cooperative mechanism.
All relevant departments of the Shanghai Stock Exchange, as well as responsible personnel from the pertinent departments and units of the China Aerospace Science and Technology Corporation, attended the signing ceremony and symposium.

The Shanghai Stock Exchange and the Singapore Exchange have signed a Memorandum of Understanding on ETF product mutual access, helping to foster a new development paradigm for China–ASEAN capital market connectivity and cooperation.
Recently, the Shanghai Stock Exchange (hereinafter referred to as SSE) and the Singapore Exchange (hereinafter referred to as SGX) formally signed a Memorandum of Understanding on ETF product mutual access cooperation, marking a new step forward in China–Singapore capital market product collaboration and elevating cross-border product connectivity to a higher level. Under the terms of the MOU, the two exchanges will strengthen their close cooperation on ETF mutual access, support market institutions from both countries in jointly developing ETF products that enable cross‑border trading, and provide investors in both markets with diversified cross‑border investment options.
The Shanghai Stock Exchange and the Singapore Exchange have long maintained a strong and cooperative relationship. Since signing a Memorandum of Understanding on cooperation in 2004, the two exchanges have engaged in close exchanges and collaboration across multiple fronts, including high-level mutual visits, personnel exchanges, and information sharing. The recent signing of an MOU on ETF‑product mutual access represents a proactive exploration of a new model of product‑level cooperation, which will further deepen the ties between the two exchanges and drive higher‑quality, upgraded, and coordinated cross‑border collaboration in the capital markets of China and Singapore. Drawing on the proven experience of mature cross‑border ETF‑access frameworks, the Shanghai and Singapore exchanges will actively explore the launch of each other’s market‑leading ETF products, thereby enhancing their respective open‑market product offerings and meeting the growing cross‑border investment needs of investors in both countries. Moving forward, the Shanghai Stock Exchange will, in accordance with the unified deployment of the China Securities Regulatory Commission, steadfastly implement the strategic directives set forth at the 20th National Congress of the Communist Party of China to advance high‑level opening up and steadily expand institutional openness in areas such as rules, regulations, governance, and standards. It will continue to refine and improve the connectivity mechanisms, proactively support major national strategies like the Belt and Road Initiative, and deepen pragmatic cooperation with capital markets along the Belt and Road, including those in ASEAN, thus contributing to the establishment of a new development paradigm under the overarching “dual circulation” strategy, in which the capital markets of China and ASEAN mutually reinforce and integrate one another.

The Beijing Stock Exchange is currently undergoing rapid expansion, with the number of listed stocks poised to surpass 200.
On May 25, Meibang Technology officially listed on the Beijing Stock Exchange, followed closely by Ningxin New Materials, which debuted on May 26. With these listings, the number of companies listed on the Beijing Stock Exchange has reached 200—three of which, including Guandian Defense, have since transferred to other boards. In addition, four new stocks are currently in the issuance phase, bringing the total number of listed securities on the exchange close to surpassing 200.
As the Beijing Stock Exchange continues to expand, a wave of high-quality companies has listed on the exchange, emerging as “dark-horse stocks.” Several industry experts emphasize that high‑quality listed offices form the exchange’s core foundation, and that “high‑quality expansion requires coordinated, dynamically balanced development across both investment and financing, striking a balance between quality and quantity.”
200 companies have listed on the Beijing Stock Exchange.
Since last year, a number of leading companies in niche sectors have listed on the Beijing Stock Exchange. Shuguang Shuchuang is the only domestic supplier to have successfully commercialized immersion phase-change liquid cooling technology and deployed it at scale, effectively addressing thermal management challenges in medium-, high-, and ultra-high-density data centers. Kede Quartz is the first Chinese semiconductor quartz‑product manufacturer to obtain certification for SMIC’s 12‑inch quartz boat products. Meanwhile, Minshida has mastered key core technologies in aramid paper production, breaking DuPont’s more than 60‑year‑long technological monopoly.
Ningxin New Materials primarily engages in the research, development, production, and sales of specialty graphite materials and products. To date, it boasts an annual production capacity of over 16,000 metric tons of specialty graphite (calculated on the basis of secondary graphitization). According to statistics from the China Carbon Industry Association, the company consistently ranks among the top players in China’s fine-structured specialty graphite sector in terms of sales volume.
The “specialized, refined, distinctive, and innovative” characteristics of companies listed on the Beijing Stock Exchange have become even more pronounced. According to statistics, as of the end of April, 79 companies on the exchange had been included in the national-level list of “Little Giant” enterprises specializing in niche fields, accounting for 41.36% of the total number of listed companies.
Overall, listed companies on the Beijing Stock Exchange have continued to ramp up their R&D spending. According to statistical data, in 2022, these companies collectively invested 6.7 billion yuan in R&D, a year-on-year increase of 18.03%, with R&D expenditure rising year over year at 70% of the offices.
A wave of high-quality companies has been listing on the Beijing Stock Exchange, and the market has seen several dark-horse stocks emerge. Since the beginning of the year, Shuguang Shuchuang’s cumulative gain has exceeded fourfold, while Dingzhi Technology and Minshida have both posted cumulative gains of more than 100% since their listings.
Zhu Weiyi, a veteran of the Beijing Stock Exchange and general manager of Guangdong Liliang Private Fund Management Co., Ltd., believes that since June last year, the quality of companies listed on the BSE has improved markedly, with several exceptionally strong offices going public this year. “This is also a key reason why the BSE has enjoyed a robust recent rally,” he added.
Promote high-quality expansion of the Beijing Stock Exchange.
At present, the Beijing Stock Exchange is undergoing rapid expansion. As of May 25, a total of 218 companies have received approval from the review committee. In addition, nearly 60 more companies are currently in the review and inquiry stage.
The high-quality development of the Beijing Stock Exchange has drawn widespread attention from all market participants, and regulators have repeatedly signaled their commitment to fostering its robust expansion. Lu Songbin, Director of the Department for Supervision of Non‑Listed Public Companies at the China Securities Regulatory Commission, recently stated that the Commission will vigorously advance the reform and development of the Beijing Stock Exchange, including accelerating the supply of high‑quality listed companies in line with the principles of superior quality, appropriate scale, and steady progress, thereby ensuring the sustained, high‑quality expansion of the exchange and laying a solid foundation for sound market growth and improved liquidity.
Sui Qiang, General Manager of the Beijing Stock Exchange, has previously stated that the BSE represents a groundbreaking initiative in the capital market to support the innovative development of small and medium-sized enterprises. He emphasized that continuous reform and innovation are essential to progressively enhance the relevance and alignment of institutional frameworks, thereby better meeting the needs of SMEs’ innovation-driven growth. Moving forward, the BSE will intensify its reform efforts, focusing on key priorities such as high-quality market expansion and improved liquidity, while actively exploring and advancing critical institutional innovations.
Liu Jing, chief analyst at the Small and Mid-Cap Research Department of Sinolink Securities, stated that high-quality listed companies form the foundation of any stock exchange, and that scaling up with such high‑quality offices is the key to the exchange’s growth and strengthening. “This year’s dark-horse stocks—including Shuguang Shuchuang, Kangpu Chemical, and Dingzhi Technology—are all recently listed shares that debuted after November last year. This underscores the importance of expanding the market with high‑quality issuers.”
In the view of Cui Yanjun, a partner at Gongqingcheng Huimei Yingchuang Investment Management Co., Ltd., high-quality market expansion requires coordinated and dynamically balanced development on both the investment and financing sides, while simultaneously balancing quality and quantity.
Zhou Yunnan, a veteran commentator on the New Third Board and founder of Beijing Nanshan Investment, believes that since the beginning of this year, the pace of new listings on the Beijing Stock Exchange has largely aligned with market expectations. The orderly overall listing rhythm has also contributed to strong post‑listing performance for many newly listed stocks, fostering a pronounced profit‑making effect in the market.

Hong Kong’s new regulations on virtual assets will take effect on June 1, allowing retail investors to participate in the purchase of virtual assets.
On May 23, the Securities and Futures Commission of Hong Kong released the consultation conclusions on the “Guidance for Virtual Asset Trading Platform Operators,” thereby finalizing the regulatory framework for such operators. The guidance will take effect on June 1, 2023.
Cai Zhonghui, acting head of the Intermediaries Division at the Hong Kong Securities and Futures Commission, stated that, for now, no platform allows retail investors to trade virtual assets. He expects that, once the guidelines take effect, retail investors will be able to trade on licensed platforms as early as the second half of this year.
He emphasized that local virtual asset platforms that were not already in operation prior to the ordinance’s entry into force, as well as overseas platforms that remain unlicensed after the guidelines take effect, will be prohibited from conducting virtual asset trading activities in Hong Kong or engaging in any promotional activities within the territory; failure to comply will result in criminal liability. Meanwhile, currently operating platforms may apply for a license within nine months of the ordinance and its accompanying guidelines coming into effect. Licensed platforms must also verify whether their clients are circumventing regulatory restrictions to conduct transactions and ensure that IP addresses originate from jurisdictions where virtual asset trading is prohibited, underscoring the need to adhere to the applicable laws and regulations of those jurisdictions.
As investors have been keen to know, one key aspect of the guidance is whether retail participation will be permitted. The Securities and Futures Commission (SFC) stated that, during the consultation, the majority of respondents supported offering virtual asset trading services to retail investors. The SFC will put in place appropriate measures to safeguard traders’ rights and interests; among these is a requirement that non‑securities‑type tokens must have at least a 12‑month track record. Regulatory arrangements for stablecoins are expected to take effect in 2023/24, and stablecoins should not be included in retail trading until then. In addition, the SFC will allow third‑party market makers to engage in proprietary trading, though the restrictions on such activities will be relaxed.
In addition, the Securities and Futures Commission has explicitly stated that licensed virtual asset trading platforms may not offer other common services such as yield‑generating products, deposits, or lending. It further emphasized that the primary business of licensed virtual asset trading platforms is to act as agents and provide clients with a venue for order matching. As for other services in the virtual asset market, additional safeguards are required to prevent potential conflicts of interest.
The following are some key points from the CSRC’s response to the inquiry:
(1) With respect to the requirement that non‑security‑type tokens must have at least a 12‑month track record, this provision was specifically introduced to address the inherent challenges platform operators may face during due diligence. Although the 12‑month threshold may not necessarily prevent recent market collapses of certain tokens, its purpose is to mitigate the risk of fraud that is difficult to detect and to minimize the potential impact of pre‑launch marketing activities on token prices—particularly given that token offerings are typically unregulated and not subject to the safeguards currently in place in traditional securities markets.
(2) When offering security‑type tokens to retail investors, platform operators must not contravene the prospectus regime under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Chapter 32) (“the Companies Winding Up Ordinance”) or the investment offer regime under Part IV of the Securities and Futures Ordinance. Accordingly, we recommend that platform operators obtain and submit to the SFC a legal opinion conofficeing that each token available for trading by retail clients does not constitute a security‑type token. We are aware that obtaining such legal advice on the regulatory status of each virtual asset can be costly; therefore, we have removed the requirement to submit this legal opinion to the SFC from the Guidelines on Virtual Asset Trading Platforms. Nevertheless, platform operators should bear in mind that, pursuant to applicable laws, they have a duty and are required to take reasonable steps to ensure that any token they offer for retail trading does not breach Hong Kong’s public offering regime. That said, during the approval process, the SFC may, in light of developments in other jurisdictions, request legal advice on specific tokens.
(3) The risks posed by stablecoins have attracted international attention, prompting calls for their regulation to ensure, among other things, that stablecoin reserves are properly managed, thereby maintaining price stability and enabling investors to exercise their redemption rights. These risks fundamentally affect the stability of stablecoins; any stablecoin unable to maintain its peg or to return investors’ funds upon redemption cannot be considered stable. Consequently, the heightened risk of bank runs could severely undermine stablecoin liquidity, rendering them generally unsuitable for retail investors. In January 2023, the Hong Kong Monetary Authority (HKMA) published a summary of its discussion paper on crypto assets and stablecoins,7 and regulatory arrangements for stablecoins are expected to be implemented in 2023/24. Until stablecoins are regulated in Hong Kong, the Securities and Futures Commission (SFC) advises against their inclusion in retail trading.
(4) At present, the CSRC does not impose a post‑account‑opening cooling‑off period on retail clients of intermediaries engaging in other regulated activities, including the provision of automated trading services. Since platform operators are required to ensure suitability throughout the course of establishing a business relationship with their clients, any retail client with an established relationship should already have been assessed by the platform operator as suitable for trading virtual assets. A post‑transaction cooling‑off period is also impractical, as automated trading services involve matching trades between clients, and unwinding or canceling such transactions would adversely affect another client of the platform.
(5) With respect to proprietary trading, the SFC acknowledges that liquidity on trading platforms is of paramount importance to clients. Accordingly, the SFC permits third-party market makers to engage in market-making activities. However, the current prohibition on proprietary trading is comprehensive and, in practice, even bars group companies of licensed virtual asset trading platforms from holding any positions in virtual assets. Therefore, the SFC has revised the relevant provisions in the “Guidance on Virtual Asset Trading Platforms” to allow related parties to execute trades through channels other than licensed virtual asset trading platforms.
(6) With respect to other common services in the virtual asset market—such as yield‑generating products, deposits, and lending—the SFC does not permit licensed virtual asset trading platforms to offer these services; this is already addressed in paragraph 7.26 of the “Guidance on Virtual Asset Trading Platforms.” Ultimately, the primary business of a licensed virtual asset trading platform is to act as an agent and provide a matching mechanism for clients’ buy and sell orders. Any additional activities could give rise to potential conflicts of interest and necessitate further safeguards; accordingly, licensed virtual asset trading platforms are currently prohibited from engaging in such activities.
In addition, the Securities and Futures Commission of Hong Kong announced that on May 25, 2023, it will publish in the Gazette the “Guidance for Operators of Virtual Asset Trading Platforms,” the “Guidance on Anti-Money Laundering and Counter-Terrorist Financing (Applicable to Licensed Corporations and Virtual Asset Service Providers Licensed by the SFC),” the “SFC’s Guidance on Preventing Money Laundering and Terrorist Financing for Connected Entities of Licensed Corporations and SFC‑Licensed Virtual Asset Service Providers,” and the “SFC Guidelines on Disciplinary Fines.” On the same day, it will also publish the application forms for virtual asset trading platforms seeking the relevant licenses under the Securities and Futures Ordinance and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, and will begin accepting applications from June 1, 2023.

MIIT: In the first four months, “specialized, refined, distinctive, and innovative” enterprises accounted for over 55% of newly listed A-share companies.
In response to the challenges faced by small and medium-sized enterprises (SMEs) in innovation and transformation, the Ministry of Industry and Information Technology recently joined forces with relevant departments to launch two special initiatives: one to leverage scientific and technological achievements to empower SMEs, and another to enhance SMEs through quality, standards, and branding.
Recently, the Ministry of Industry and Information Technology held a policy briefing to provide details on two “special campaigns.”
Xu Xiaolan, Vice Minister of the Ministry of Industry and Information Technology, stated that from January to April this year, specialized, refined, distinctive, and innovative small and medium-sized enterprises accounted for 55.3% of all new A-share listings; among the companies newly listed on the STAR Market, 67% were such SMEs.
Expectations for small and medium-sized enterprises are expected to improve further.
Xu Xiaolan stated that, in the past year alone, the national government introduced more than 40 policies to support the development of small, medium, and micro enterprises, prompting local authorities to issue over 270 complementary policy documents. With the backing of these business-friendly measures, in 2022, the operating revenue and total profits of industrial SMEs above designated size increased by 5.2% and 1.1%, respectively, year on year, demonstrating remarkable resilience and dynamism.
Since the beginning of this year, small and medium-sized enterprises (SMEs) have generally maintained a recovery trend in production and operations, with expectations for further improvement. Survey data show that in April, 35% of SMEs reported favorable operating conditions, up 3.2 percentage points from the previous month. Meanwhile, big‑data monitoring indicates that in March, the purchasing and sales indices for SMEs stood at 51.9% and 51.1%, respectively—both marking a second consecutive monthly increase.
SMEs that are specialized, refined, distinctive, and innovative have demonstrated particularly strong performance. In March, the revenue profit margins of “Little Giant” enterprises and other specialized, refined, distinctive, and innovative SMEs stood at 9.6% and 7.0%, respectively—5.5 and 2.9 percentage points higher than those of large-scale SMEs. From January to April this year, such specialized, refined, distinctive, and innovative SMEs accounted for 55.3% of all newly listed companies on the A-share market; among them, 67% of the new listings on the STAR Market were also specialized, refined, distinctive, and innovative SMEs.
“In response to the new circumstances and evolving landscape facing small and medium-sized enterprises, in January of this year we issued the ‘Several Measures to Help SMEs Stabilize Growth, Adjust Structure, and Strengthen Capabilities,’ which explicitly calls for empowering SMEs through ‘technology‑driven innovation,’ ‘quality‑standard‑brand value‑addition,’ and ‘digital transformation,’” said Xu Xiaolan.
The three targeted initiatives—the Special Action to Empower SMEs with Scientific and Technological Achievements, the Special Action to Enhance SMEs through Quality, Standards, and Branding, and the previously launched Digital Transformation Initiative for SMEs—constitute a comprehensive package of measures designed to bolster SMEs’ innovation capacity and core competitiveness, and represent key steps in advancing their high-quality development.
Promote the “continuous transfer” of scientific and technological achievements.
What specific measures and initiatives were proposed under the “Smart‑Empowerment Special Action”? How can we further unlock the potential of scientific and technological innovation to drive the development of small and medium-sized enterprises and help them quickly get on board the technology‑driven growth train?
Ren Aiguang, Deputy Director-General of the Science and Technology Department of the Ministry of Industry and Information Technology, stated that the “Special Action Plan for Empowering SMEs with Scientific and Technological Achievements (2023–2025)” was jointly issued by the Ministry of Industry and Information Technology together with the National Development and Reform Commission, the Ministry of Education, and eight other departments, integrating practical measures across these agencies to support SMEs in technological innovation and the transfer and commercialization of scientific and technological成果.
The document thoroughly implements the requirements set forth in the report of the 20th National Congress of the Communist Party of China—namely, “strengthening the deep integration of industry, academia, and research led by enterprises,” “raising the level of commercialization and industrialization of scientific and technological achievements,” and “supporting the development of small, medium, and micro-sized enterprises.” It emphasizes the deep integration of industrial and innovation chains, and, focusing on key stages such as the generation and aggregation of scientific and technological成果, the precise matching of supply and demand, and services for the commercialization of these成果, it lays out three major priority tasks and ten specific measures. The overarching goal is to ensure that “there are results, they are effectively transferred, and the transfer is sustained.”
First, we will promote the systematic and ongoing aggregation of research outcomes to ensure that tangible results are consistently delivered. We will broaden the sources of scientific and technological achievements by establishing tiered, sector-specific project databases and making them accessible to small and medium-sized enterprises (SMEs). We will strengthen alignment with industry needs, mobilize resources from government departments, trade associations, industrial parks, and other stakeholders, and thoroughly identify the diverse technological requirements of SMEs. Through collaborative development, pilot-scale testing, and technology maturation, we will accelerate the translation of research findings into practical applications.
Increase the supply of advanced, applicable technologies and support the transfer and commercialization of cutting-edge technologies from innovation entities—such as manufacturing innovation centers, key laboratories, and new types of R&D institutions—to small and medium-sized enterprises. Accelerate the promotion and application of digital and intelligent technologies to help SMEs undergo transformation and upgrading.
Second, we will implement “precision‑targeted” matching between supply and demand to ensure that scientific and technological achievements are effectively commercialized. We will refine the platform system for technology‑driven innovation matchmaking and establish a comprehensive service framework for translating scientific and technological成果 into practical applications, integrating vertical and horizontal linkages across industries and regions. We will strengthen industry–university–research collaboration and, through mechanisms such as central–local coordination, partnerships among large, medium, and small enterprises, and the combination of public‑interest and value‑added services, create a favorable environment for fostering the growth and competitiveness of SMEs.
Carry out no fewer than 30 “In-depth Outreach” initiatives to promote pairing between universities, research institutes, and small and medium-sized enterprises (SMEs), helping more specialized, refined, distinctive, and innovative SMEs become the ideal partners of large enterprises.
Third, we are accelerating the systematic deployment of services to ensure the sustained commercialization of scientific and technological achievements. We have organized patent‑navigation services, established a green channel for patent and trademark examination, and explored “one-to-many” licensing models for patents held by universities and research institutes, thereby continuously strengthening the effective utilization and robust protection of intellectual property.
Better leverage policy incentives—such as those for the demonstration and application of the first-of-its-kind major technological equipment—to empower small and medium-sized enterprises (SMEs), helping them adopt and commercialize more new technologies and products. Strengthen efforts to advance pilot-scale testing and technology maturation, and support upstream and downstream players in the industrial chain to jointly establish testing and validation platforms, thereby enhancing SMEs’ capacity and effectiveness in translating scientific and technological innovations into market‑ready solutions.

Commercial & Corporate
The State Council has promulgated the newly revised Regulations on the Administration of Commercial Cryptography.
On May 24, the Chinese Government Website published the Regulations on the Administration of Commercial Cryptography, which will take effect on July 1, 2023.
The revised Regulations primarily stipulate the following: First, they refine the management system for commercial cryptography. Second, they promote innovation and standardization in the field of commercial cryptography, establish and improve mechanisms to foster technological advancement, protect intellectual property rights in this area, and encourage and support the translation of scientific and technological achievements into practical applications and their industrial deployment. Third, they strengthen the testing and certification framework for commercial cryptography, specifying the qualification requirements, procedures, and professional standards for testing and certification bodies. Fourth, they enhance the regulation of cryptographic practices in electronic certification services and related e‑government activities, establishing an electronic certification trust mechanism to advance mutual recognition and interoperability among such services. Fifth, they standardize the import and export management of commercial cryptography, implementing a list‑based approach for import licensing and export controls, and setting out the corresponding approval procedures. Sixth, they promote the application of commercial cryptography by clearly defining the requirements for its use in critical information infrastructure and the associated national security review obligations.

The Ministry of Industry and Information Technology, together with thirteen other departments, has jointly issued the “Opinions on Further Deepening the Joint Construction and Sharing of Telecommunications Infrastructure to Promote the High-Quality Development of ‘Dual Gigabit’ Networks.”
Recently, fourteen departments—including the Ministry of Industry and Information Technology, the Ministry of Education, the Ministry of Public Security, the Ministry of Civil Affairs, the Ministry of Natural Resources, the Ministry of Housing and Urban–Rural Development, the Ministry of Transport, the Ministry of Culture and Tourism, the National Health Commission, the State-owned Assets Supervision and Administration Commission of the State Council, the State Administration for Market Regulation, the General Administration of Sport, the National Energy Administration, and China State Railway Group Co., Ltd.—jointly issued the “Opinions on Further Deepening the Joint Construction and Sharing of Telecommunications Infrastructure to Promote the High-Quality Development of ‘Dual Gigabit’ Networks” (hereinafter referred to as the “Opinions”), laying out plans to advance a new round of efforts to promote the joint construction and sharing of telecommunications infrastructure.
The Implementation Opinions emphasize the need to be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement the spirit of the 20th National Congress of the Communist Party of China, and, grounded in the new stage of development, fully, accurately, and comprehensively apply the new development philosophy. They call for accelerating the establishment of a new development pattern, implementing a comprehensive conservation strategy, and aiming to continuously enhance the level of co‑construction and shared benefits while promoting the high‑quality development of “dual‑gigabit” networks. With a focus on coordinated and intensive infrastructure deployment, ensuring fair access, and advancing cross‑industry sharing, the document seeks to proactively foster a green and low‑carbon construction environment, thereby more effectively leveraging the foundational support and integrative enabling roles of dual‑gigabit networks and laying a solid foundation for building a cyber power and a digital China.
The Implementation Opinions clearly state that it is necessary to further strengthen the strategic, foundational, and pioneering public‑infrastructure status of telecommunications infrastructure; to coordinate its systemic and localized development, as well as the interplay between new and existing assets and between sectors; to fully leverage market‑driven mechanisms; and to promote a rational and scientifically sound spatial layout. The document emphasizes accurately grasping the new characteristics of joint construction and sharing in the telecommunications sector, adhering to a combination of goal‑oriented and problem‑oriented approaches, implementing targeted policies and measures, and advancing the deepening and expansion of collaborative efforts. By 2025, the institutional framework for joint construction and sharing of telecommunications infrastructure will be continuously refined; the enabling environment for “dual‑gigabit” network deployment will be further improved; progress will have been made in streamlining rural poles and cabling; cross‑sectoral collaboration and resource sharing will be deepened and broadened; digital tools will provide robust support; and the overall level of joint construction and sharing of telecommunications infrastructure will steadily rise, effectively conserving societal resources.
The “Implementation Opinions” sets out six key areas of work for the new round of joint construction and sharing of telecommunications infrastructure, and proposes four specialized projects:
First, we will advance the coordinated and intensive development of “dual‑gigabit” networks. We will fully leverage the guiding role of planning, ensuring effective alignment between specialized telecommunications infrastructure plans and national strategic plans, territorial spatial plans, and regulatory detailed plans. We will strengthen the integrated planning of site locations for 5G base stations, as well as for equipment rooms and indoor distribution systems, and rigorously standardize the procedures for the joint construction and sharing of facilities such as pole routes, conduits, equipment rooms, optical cables, and base station access transmission lines. We will support the joint construction and sharing of 5G access networks and promote inter‑network roaming for 5G services.
Second, we will deepen the joint deployment of “dual‑gigabit” networks. We will strictly enforce construction standards for telecommunications infrastructure in newly developed residential areas, residential buildings, commercial office towers, and public facilities, and promote unified coordination and integrated implementation of 5G base station sites, equipment rooms, and indoor distribution systems in key locations, thereby ensuring equitable access to gigabit optical networks. We will launch a targeted initiative to advance the joint deployment of dual‑gigabit networks, establish a list of priority venues to facilitate the shared rollout of 5G, and compile an inventory of residential areas, residential buildings, and commercial office towers that currently lack broadband access or are served by only a single basic telecommunications operator, with the aim of promoting shared broadband deployment and significantly expanding gigabit optical network coverage.
Third, strengthen the maintenance and systematic review of rural telecommunications poles, routes, and cables. Establish and refine a mechanism for the joint construction, sharing, and maintenance of rural telecommunications infrastructure, encouraging basic telecom operators to promote the joint construction and sharing of rural poles, routes, and cables through approaches such as separate cable management within the same duct, separate cable routing on the same pole, individual fiber‑core allocation within a single cable, fiber‑core replacement, and leasing of fiber cores. At the same time, intensify the inventory and organization of existing poles and lines, promptly identify and rectify unauthorized installations of poles, routes, and cables, and remove and dismantle abandoned lines and towers. Launch a collaborative governance and maintenance initiative for rural poles and lines; by the end of 2025, each region will annually complete the remediation of unauthorized pole‑line installations in a number of administrative villages, establish model benchmarks for standardized construction, and generate a demonstrative effect.
Fourth, we will encourage cross-sectoral openness and resource sharing. We will compile and establish a list of cross-sectoral infrastructure‑resource‑sharing needs, and, in line with this list, strengthen coordination and communication among departments responsible for power, municipal services, expressways, railways, telecommunications, and other sectors. This will facilitate the proactive, market‑based, and equitable opening and sharing of facilities such as poles and towers, pipelines, utility tunnels, underground conduits, optical cables, and equipment rooms to support the development of “dual‑gigabit” networks, thereby fully leveraging the role of communication networks in empowering various industries. We will strive to integrate diverse pole and tower resources, build smart poles and related supporting infrastructure, and promote the “one pole, multiple uses” and “one tower, multiple uses” approaches. We will launch demonstration projects for cross‑sectoral sharing; by the end of 2025, local authorities will ensure that the shared‑infrastructure needs of key areas and critical routes across relevant sectors are effectively met, steadily increase the fulfillment rate of listed sharing requests year by year, and develop and publicly release a number of exemplary cases.
Fifth, strengthen digital‑technology support. Develop and promulgate standards for big‑data platforms on the joint construction and sharing of telecommunications infrastructure, and encourage localities to proactively advance the development or upgrade of their regional platforms in accordance with these standards. Enhance the integration of platform systems with facility‑resource information, bolster data‑driven applications, and conduct evaluations of platform usage. Launch a Digital Assurance Enhancement Initiative: by the end of 2025, all regions will have completed the construction or upgrading of their regional big‑data platforms for the joint construction and sharing of telecommunications infrastructure in line with the established standards, essentially achieving digitalized assurance of joint‑construction and sharing processes, and disseminating innovative best‑practice cases of standardized platform deployment and application.
Sixth, optimize the environment for “Dual Gigabit” network deployment. Taking into account a comprehensive set of factors—including local infrastructure planning, policy support, financial incentives, and performance‑based guidance—explore the development of evaluation standards and indicators for the “Dual Gigabit” network construction environment, organize relevant assessment activities, and strengthen the dissemination of assessment results to promote best practices and exemplary cases.
The Implementation Opinions emphasize the need to strengthen work safeguards. First, enhance inter‑agency coordination by establishing a cross‑sectoral mechanism for joint construction and resource sharing, formulating work plans, reinforcing organizational deployment, clarifying division of responsibilities, and ensuring effective implementation. Second, set up an advisory mechanism to conduct specialized analyses, provide expert recommendations, and refine dispute‑resolution protocols. Third, improve policy support by streamlining approval procedures, shortening processing timelines, and encouraging government agencies and public institutions at all levels to open their facilities and resources free of charge to the development of “dual‑gigabit” networks. Fourth, promote best practices by identifying and cultivating exemplary cases and intensifying publicity and outreach efforts. Fifth, ensure timely data reporting by regularly collating and summarizing progress in joint construction and resource‑sharing initiatives and providing prompt feedback. Sixth, implement rigorous oversight and performance assessment, strengthen overall coordination, enhance process management, and conduct unannounced inspections and spot checks to detect non‑compliant behavior. Furthermore, urge and guide the parent companies of basic telecommunications operators and China Tower Corporation to fulfill the requirements of the performance‑evaluation framework for telecommunications infrastructure co‑construction and sharing.

The Ministry of Industry and Information Technology has launched the selection process for typical next-generation information technology products for 2023.
On May 24, the website of the Ministry of Industry and Information Technology released the “Notice on Organizing the Selection of Typical Products, Applications, and Service Cases in the New Generation of Information Technology for 2023.”
The Notice clarifies that, with the theme of integrating next-generation information technology with manufacturing, a selection of outstanding exemplary cases will be made across such areas as representative products, typical applications, and innovative service models. It seeks to identify and promote product‑based cases that enjoy broad industry recognition and have been successfully implemented in real‑world enterprise settings, thereby providing practical guidance for more regions and enterprises to leverage next-generation information technologies and advance high‑quality development. Eligible applicants for submitting exemplary cases include manufacturing offices, information‑technology companies, Internet enterprises, research institutes, higher education institutions, or consortia thereof.

In 2023, the National Medical Products Administration plans to formulate or revise 15 mandatory industry standards for medical devices.
On May 24, the National Medical Products Administration (NMPA) website published the “Notice on Issuing the 2023 Work Plan for the Development and Revision of Medical Device Industry Standards.”
Among them, the “Project Plan for the Formulation and Revision of Mandatory Industry Standards” covers the development and revision of a total of 15 mandatory industry standards, primarily including “Medical Electrical Equipment – Part 2‑87: Particular Requirements for Basic Safety and Essential Performance of High‑Frequency Ventilators,” “Electric Gastric Lavage Machine,” “Blood Pressure Sensor,” and “Artificial Teeth for Prosthetic Dentistry,” among others.

The National Energy Administration plans to further standardize the licensing management of electricity business for renewable energy generation projects.
On May 25, the website of the National Energy Administration published the “Notice on Public Solicitation of Comments on the ‘Notice on Further Standardizing Matters Related to the Licensing Management of Power Operations for Renewable Energy Generation Projects (Draft for Comments)’,” with a deadline for submitting feedback set at 30 days from the date of the notice’s publication.
The Notice clarifies that distributed wind power projects connected to the grid at 35 kV and below nationwide will be exempt from licensing requirements. When applying for a power business license, the operating entities of renewable energy generation projects must ensure that the qualifications and work experience of their production‑operation manager, technical manager, safety manager, and financial manager comply with the provisions of the Regulations on the Administration of Power Business Licenses. If a project is uniformly managed by a specialized operation‑and‑maintenance company or an affiliated entity within the same corporate group, the aforementioned four categories of personnel may concurrently hold positions across different projects within the same province. The Notice also proposes to standardize the licensing and registration procedures for renewable energy generation projects, revise the policy on the renewal of licenses for renewable energy generation projects (units), clarify the responsibilities for managing power business licenses of enterprises registered in locations other than their principal place of business, and strengthen the management of licensing data and information for renewable energy generation projects.

Shanghai Lingang has issued the Ten Key Tasks for Optimizing the Business Environment in 2023.
On May 18, the website of the Shanghai Lingang Administration Committee published the “Notice on Issuing the ‘Top Ten Priority Tasks for Optimizing the Business Environment in the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone for 2023.’”
The “Key Tasks” primarily encompass the following specific measures: 1. Deepen reforms to streamline market access and business operations. 2. Further advance reforms in the construction sector. 3. Enhance labor employment and talent services. 4. Continuously deepen financial services. 5. Improve the convenience of cross-border trade. 6. Strengthen legal services and rule-of-law safeguards. 7. Promote fair competition in the market. 8. Ongoing optimization of business services. 9. Explore expanding pilot programs for the notification-and-commitment system. 10. Broaden the application of credit mechanisms in administrative procedures.

The Ministry of Industry and Information Technology plans to issue the 2023 Edition of the Guidelines for Building an Intelligent Manufacturing Standards System for the Steel Industry.
On the 25th, the Ministry of Commerce held its regular press conference. Spokesperson Shu Juting stated that China’s automobile exports are currently experiencing a phase of rapid growth; however, there remains considerable room for improvement in terms of quality and efficiency, and challenges persist in areas such as logistics support, financial services, and overseas after-sales service.
Going forward, the Ministry of Commerce, in coordination with relevant departments, will focus on the following three areas: First, strengthen transport logistics by promoting medium- and long-term strategic cooperation between automobile manufacturers and shipping companies, and encouraging shipping lines to accelerate the development of Ro‑Ro fleets to expand capacity for automobile exports. Second, encourage automakers to collaborate with domestic and international financial institutions to design innovative financial products and services—while ensuring compliance with laws and regulations and maintaining controllable risks—to better meet their needs. Third, support automobile enterprises in enhancing their international marketing and after-sales service networks, bolstering their capabilities in overseas brand promotion, product showcases, sales, and after-sales support, and thereby building a strong and reputable brand image.
Ju Ting Shu stated that in recent years, China’s automobile exports have maintained steady growth while improving in quality, with the product mix continuing to optimize. First, the scale of trade has expanded steadily: in 2021 and 2022, annual increases in automobile exports exceeded one million units for two consecutive years. From January to April this year, China exported 1.494 million vehicles, up 76.5% year on year. Second, markets have become increasingly diversified: during the first four months, Chinese automobiles were shipped to 204 countries and regions worldwide, with exports to Belt and Road partner countries reaching US$13.64 billion—a 120% increase, accounting for 45.9% of total exports—and exports to developed economies totaling US$12.41 billion—also up 120%, representing 41.8% of the total. Third, new-energy vehicles have made a significant contribution to export growth: from January to April, their share of total automobile export value rose to 42.9%, and they accounted for 51.6% of the overall increase in automobile exports.

Ministry of Commerce: Supports automotive enterprises in enhancing their international marketing and after-sales service systems.
On May 23, the website of the Ministry of Industry and Information Technology published the “Notice on Soliciting Public Comments on the ‘Guidance for Building an Intelligent Manufacturing Standards System for the Iron and Steel Industry (2023 Edition)’ (Draft for Comments),” with a deadline for submitting feedback set for June 23.
On the 25th, the Ministry of Commerce held its regular press conference. Spokesperson Shu Juting stated that China’s automobile exports are currently experiencing a phase of rapid growth; however, there remains considerable room for improvement in terms of quality and efficiency, and challenges persist in areas such as logistics support, financial services, and overseas after-sales service.
Going forward, the Ministry of Commerce, in coordination with relevant departments, will focus on the following three areas: First, strengthen transport logistics by promoting medium- and long-term strategic cooperation between automobile manufacturers and shipping companies, and encouraging shipping lines to accelerate the development of Ro‑Ro fleets to expand capacity for automobile exports. Second, encourage automakers to collaborate with domestic and international financial institutions to design innovative financial products and services—while ensuring compliance with laws and regulations and maintaining controllable risks—to better meet their needs. Third, support automobile enterprises in enhancing their international marketing and after-sales service networks, bolstering their capabilities in overseas brand promotion, product showcases, sales, and after-sales support, and thereby building a strong and reputable brand image.
Ju Ting Shu stated that in recent years, China’s automobile exports have maintained steady growth while improving in quality, with the product mix continuing to optimize. First, the scale of trade has expanded steadily: in 2021 and 2022, annual increases in automobile exports exceeded one million units for two consecutive years. From January to April this year, China exported 1.494 million vehicles, up 76.5% year on year. Second, markets have become increasingly diversified: during the first four months, Chinese automobiles were shipped to 204 countries and regions worldwide, with exports to Belt and Road partner countries reaching US$13.64 billion—a 120% increase, accounting for 45.9% of total exports—and exports to developed economies totaling US$12.41 billion—also up 120%, representing 41.8% of the total. Third, new-energy vehicles have made a significant contribution to export growth: from January to April, their share of total automobile export value rose to 42.9%, and they accounted for 51.6% of the overall increase in automobile exports.

Boosting the Technological Innovation Capacity of SMEs: Ten Ministries Issue a Directive to Launch a Special Campaign
On the 26th, the Ministry of Industry and Information Technology (MIIT) announced that, together with nine other departments, it has recently jointly issued the “Special Action Plan for Empowering Small and Medium-sized Enterprises with Scientific and Technological Achievements (2023–2025).” The plan sets out to, by 2025, establish robust databases of technological achievements and enterprise needs, facilitate the transfer and commercialization of a batch of advanced, practical scientific and technological results within SMEs, encourage SMEs to generate more high-quality innovations, and guide an increasing number of SMEs toward a development path characterized by specialization, refinement, uniqueness, and innovation.
The special campaign specifies that, with a focus on enhancing the core technological capabilities of small and medium-sized enterprises (SMEs), it will prioritize the effective dissemination and application of scientific and technological achievements, accelerate the concentration of such innovations within SMEs, and strengthen the coordinated implementation of industrial, science-and‑technology, and SME‑development policies. This will foster integrated innovation among industry, academia, and research institutions, as well as across the upstream and downstream segments of industrial chains and among large, medium, and small enterprises.
The special campaign focuses on three key tasks: institutionalizing the outcomes of its deployment and implementation; achieving precision in matching supply with demand; and accelerating the systematic development of service frameworks. Notably, it specifies that, in response to the innovation needs of small and medium-sized enterprises (SMEs), a tiered, sector‑specific repository of scientific and technological achievements will be established, providing SMEs with access to cutting‑edge technologies that are affordable, readily applicable, and highly effective. Furthermore, the initiative will strengthen industry‑driven demand and expand the supply of advanced, practical technologies.
In addition, the special campaign proposes encouraging large enterprises to open up their instruments, equipment, and laboratories to small and medium-sized enterprises. It also supports SMEs in publicly posting challenges related to technological bottlenecks and specialized technical problems, while universities and research institutes take on these challenges, thereby establishing new collaborative, order‑driven models for technology R&D.

Taxation
Tax and fee service experience officers help further enhance service quality.
To earnestly implement the “Spring Breeze Action for Convenient Tax Services,” the Xianghe County Tax Service Bureau of the State Taxation Administration recently invited more than 20 taxpayer and payer representatives to serve as “Tax and Fee Service Experience Officers.” The officers toured key service areas, including the consultation and tax‑guidance zone, the self‑service tax‑processing area, and the self‑service tax‑processing terminals, gaining insight into the innovative and convenient measures the tax authorities have adopted to deliver preferential tax and fee policies.
The “experience officers” evaluated tax administration across six key areas: enhancing the responsiveness to taxpayer needs, improving the efficiency of policy implementation, elevating the quality of tailored services, accelerating smart tax processing, streamlining procedures, and strengthening standardized enforcement. The bureau diligently collected feedback and suggestions from these officers, further refining taxpayer and payer services, effectively boosting satisfaction among taxpayers and payers, and optimizing the local tax‑related business environment.

Individual income tax final settlement must uphold the bottom line of integrity.
As the deadline of June 30 for filing the annual individual income tax settlement approaches, the tax authorities have recently publicized five cases of failure to comply with the prescribed procedures for completing the individual income tax settlement, once again emphasizing the importance of conducting such filings in good faith.
In 2019, the new Individual Income Tax Law came into effect, requiring taxpayers to file an annual tax reconciliation. This year marks the fourth annual reconciliation since the new tax system was implemented, and for many individual income tax payers, this routine annual procedure has become second nature.
Meanwhile, cases of failing to file individual income tax final settlement as required occur from time to time and warrant close attention. The specific circumstances of “failure to comply with the regulations” are highly varied. For example, some individuals purchase so‑called annual individual income tax refund‑application services through online shopping platforms and submit false app‑generated query results provided by the platform’s merchants as supporting documentation to claim refunds; others, misled by fraudulent online “secrets” for tax refunds, incorrectly report their special additional deductions; still others fabricate evidence to claim such deductions, thereby fraudulently obtaining state tax funds; and some even falsely declare tax‑exempt income in an attempt to secure a refund. In addition, certain employers have been known to misuse taxpayers’ identity information to file withholding and remittance returns.
The common feature of these behaviors is that they violate the principle of paying taxes in good faith and in accordance with the law. Paying taxes honestly is a responsibility and obligation that every citizen and enterprise must fulfill. Before the new Individual Income Tax Law came into effect, most individuals had their taxes withheld and remitted by their employers, and were not required to file an annual tax reconciliation. Under the new system, many people are now obliged to interact directly with the tax authorities to complete their annual tax settlement. Which deductions they can claim and whether they will receive a refund or owe additional tax have become matters of widespread concern. Throughout the filing process, the concept of “integrity” serves as a test for everyone.
As the reported cases demonstrate, some instances involve deliberate misconduct, while others stem from credulity toward false information. Regardless of the circumstances, such conduct cannot escape tax oversight and will inevitably be subject to rigorous investigation and enforcement.
It is worth noting that some individuals readily believe false claims circulating online—particularly so‑called “secret guides” to tax refunds—which is a fairly common occurrence. Taxpayers must remain vigilant, familiarize themselves with tax laws and regulations, and thoroughly understand their tax obligations. They should accurately complete all required tax information and refrain from taking chances or crossing the legal line. Only by conducting annual tax reconciliation in full compliance with the law and with integrity can taxpayers fully reap the benefits of personal income tax reform.

Shanghai has completed the first innovative cross-border tax‑filing scenario for non‑residents.
“It’s truly very convenient for us non-resident enterprises—cross-border tax filing and payment can now be completed with just a single mobile phone,” said Shi Xiaojie, Tax Manager at DSM (China) Co., Ltd.
As the first non-resident taxpayer in Shanghai to pilot an innovative cross-border tax‑filing scenario, the company successfully completed a corporate equity transfer through the State Taxation Administration of China’s Shanghai Electronic Tax Bureau (hereinafter referred to as the Shanghai Electronic Tax Bureau) and filed its corporate income tax return for an amount exceeding RMB 5 million.
Recently, the Shanghai Municipal Electronic Tax Bureau launched the “Non-Resident Cross-Border Tax Filing” module. This module is designed for non-resident enterprises that have not established any institutions or premises within China and that derive income from the transfer of equity interests in non‑listed companies—excluding shares subject to sale restrictions—where no withholding agent is required. Under such circumstances, these entities must file their corporate income tax and stamp tax returns on a per‑transaction basis.
According to Shi Xiaojie, prior to the module’s launch, a single transaction involving the simultaneous transfer of equity in three domestic enterprises required taxpayers to file corporate income tax returns separately across multiple jurisdictions within China. With the module in place, such transactions can now be processed remotely and completed in one go through the Shanghai Municipal Electronic Tax Bureau, significantly streamlining cross-border tax‑filing procedures and delivering tangible cost reductions and efficiency gains for businesses.
An official from the Shanghai Municipal Tax Service of the State Taxation Administration stated that this module offers services such as online code assignment, information collection, intelligent tax and fee calculation, one-click comprehensive filing for multiple tax types, and cross-border tax payment, enabling non-resident taxpayers to complete the entire process of cross-border tax filing and payment online. In addition, to help non-resident individuals and non-resident enterprises familiarize themselves with the newly launched procedures, a bilingual version of the “Cross-Border Tax Filing Guide for Non-Resident Enterprises” has been specially prepared.

Implementing tax incentive policies to boost confidence.
Data show that in the first quarter, nationwide tax and fee reductions, refunds, and deferrals totaled RMB 367.98 billion. By phase, the first batch of policies implemented at the beginning of this year generated additional tax and fee cuts amounting to RMB 179.69 billion. Specifically, the policy exempting small-scale taxpayers with monthly sales below RMB 100,000 from value-added tax resulted in an additional tax reduction of RMB 102.43 billion, while the policy reducing the VAT collection rate for small-scale taxpayers from 3% to 1% led to an additional tax cut of RMB 38.99 billion.
Sustaining economic improvement and achieving high-quality development hinges on the vitality and resilience of hundreds of millions of market entities. In April, China’s manufacturing Purchasing Managers’ Index indicated that business operations continued to recover and expand. The index for expectations regarding future production and business activity stood at 54.7%, remaining at a relatively high level, reflecting stable confidence among enterprises in near-term market prospects. By using tax and fee reductions to generate greater corporate profitability and boost market dynamism—this approach lies at the heart of supply-side structural reform and serves as a crucial pathway for advancing China’s high-quality economic development.
Since the beginning of this year, as China’s economy has steadily recovered, and while balancing fiscal sustainability with the need to support businesses and alleviate their difficulties, the country has refined and adjusted its tax and fee‑support policies. These adjustments do not signify a policy retreat; rather, they reflect an adaptive response to evolving circumstances, underscoring the alignment between tax incentives and economic development and the precision of policy implementation.
For example, on March 24, the State Council Executive Meeting decided to raise the pre‑tax additional deduction rate for R&D expenses of eligible industries and enterprises from 75% to 100%, making this a permanent, institutionalized measure. This aligns other eligible sectors with the existing policy that grants manufacturing offices and technology‑focused small and medium‑sized enterprises an enhanced R&D expense deduction, thereby strengthening support for scientific and technological innovation and helping to sustain the innovative vitality of market entities. As a long‑term, institutionalized policy without a fixed expiration date, it helps stabilize business expectations and bolster confidence in corporate innovation and development.
Going forward, we will prioritize stability, ensure the continuity and consistency of tax and fee policies, and support the preservation of market entities and employment for residents.
Although the tax and fee burden on enterprises has been somewhat alleviated, overall costs remain high. It is essential to implement tax and fee support policies with precision and to continuously refine and improve them. Building on the effective implementation of previously introduced measures, we should further enhance these preferential policies in light of actual conditions, stepping up support for small and micro‑enterprises and individual business households to stabilize market expectations, bolster confidence, and sustain the dynamism of market entities.
Good policies must be implemented thoroughly and with meticulous attention to detail, and high-quality services are equally important. To continuously enhance the effectiveness of tax refund, tax reduction, and fee‑cutting measures, we must also keep improving the precision, timeliness, and practical impact of policy implementation, while further streamlining tax filing and payment services, ensuring that all eligible reductions are fully applied, all deferrals are properly granted, and all refunds are promptly processed.
By examining market conditions through tax data and assessing the macroeconomic landscape from the perspective of individual business entities, we can see that policies are delivering results, businesses are gaining confidence, and China’s economic resilience is becoming increasingly evident. We are confident that, with the positive synergy between a proactive government and an efficient market, the timely introduction of targeted policies and the effective implementation of measures to support enterprises will further unleash their endogenous momentum and innovative vitality.

Litigation & Arbitration
The Supreme People’s Court and the Supreme People’s Procuratorate have jointly issued a judicial interpretation concerning criminal cases of rape and indecent assault involving minors.
On May 25, the Supreme People’s Court website published the “Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases of Rape and Indecent Assault on Minors,” which will take effect on June 1, 2023.
The Interpretation consists of sixteen articles and covers six main areas: First, it specifies six circumstances in which a more severe or enhanced penalty shall apply to offenses involving the sexual abuse of young girls, and clarifies that, for adult defendants convicted of rape or indecent assault against minors who plead guilty and accept punishment, the extent to which leniency may be granted—and the degree of such leniency—must be strictly determined. Second, it sets forth the criteria for determining “particularly egregious circumstances” in cases of raping minor females and engaging in sexual intercourse with young girls. Third, it delineates aggravating factors for imposing heavier penalties on individuals entrusted with caregiving duties who commit sexual offenses. Fourth, it identifies aggravating circumstances warranting increased penalties for the crime of indecent assault on children. Fifth, it establishes legal standards for applying the law to specific situations, such as luring minors into online nude chats or soliciting nude photographs from them. Sixth, it clarifies the scope of medical expenses that may be reimbursed in cases of rape or indecent assault against minors.

The Supreme People’s Procuratorate, the Ministry of Public Security, and the China Coast Guard have jointly issued a notice to crack down on illegal and criminal activities involving sand and safeguard marine ecological security.
Recently, the Supreme People’s Procuratorate, the Ministry of Public Security, and the China Coast Guard jointly issued a notice directing people’s procuratorates, public security organs, and coast guard agencies at all coastal levels to launch, starting May 20, a six-month special campaign to crack down on and rectify illegal and criminal activities involving the unauthorized extraction of sea sand. The initiative aims to punish sand-related offenses, safeguard marine ecological security, uphold maritime safety and stability, and provide robust support for the development of the marine economy and the building of a marine ecological civilization.
The three departments will focus on illegal and criminal activities involving sand, emphasizing a combination of crackdowns and prevention, as well as comprehensive remediation. They will strengthen routine maritime patrols and oversight, intensify surveillance and inspections in key areas to promptly identify leads and emerging risks related to unauthorized sand extraction, and conduct thorough investigations of priority targets and critical links, systematically collecting and compiling information on key vessels and relevant locations. In accordance with the investigative mandate of “covering all stages, all elements, and the entire chain,” they will rigorously crack down on illegal and criminal acts associated with sand mining and transportation. Furthermore, they will enhance coordination with relevant industry regulators, comprehensively address and rectify “three‑no” vessels and all types of unauthorized sand‑extraction craft, and work with pertinent authorities to reinforce end-to-end oversight of marine‑related construction projects, thereby advancing integrated governance of marine sand resources.
During the operation, the three departments will strictly standardize law enforcement, balancing the dual priorities of cracking down on cases and ensuring lawful conduct, as well as punishing illegal and criminal activities while safeguarding legitimate rights and interests, thereby striving to achieve an organic unity of political, legal, and social outcomes. They will strengthen coordination and collaboration by establishing mechanisms for information sharing, case referrals, and joint control measures, and by enhancing the seamless integration of law enforcement oversight with investigative supervision. Furthermore, they will adopt a comprehensive approach, leveraging information technology and multi‑dimensional inspection methods to improve the efficiency of identifying and addressing unlawful acts. Finally, they will intensify public awareness and education efforts, amplifying publicity for the special campaign through various channels, conducting regular rule-of-law education and outreach, and disseminating knowledge on marine ecological and environmental protection from multiple angles, thus fostering a positive social climate.

The Supreme People’s Court, the Supreme People’s Procuratorate, and two other departments have jointly issued guidelines to punish crimes of sexual abuse against minors.
On May 25, the Supreme People’s Court website published the “Opinions on Handling Criminal Cases Involving Sexual Assault of Minors.”
The “Opinions” comprise forty provisions, mandating strict and lawful punishment for crimes of sexual abuse against minors, upholding the principle of acting in the best interests of the child, and emphasizing mutual protection. The document sets forth standardized procedures and methods for handling cases of sexual abuse of minors, imposes stringent time limits on case processing, improves mechanisms for interagency cooperation, standardizes approaches to case management, strengthens safeguards for litigation rights, and subjects offenders to rigorous oversight and control. Additionally, the “Opinions” clarify requirements for investigative evidence collection, establish criteria for examining and evaluating evidence, outline guiding principles to be observed, and detail measures for protecting and assisting victims.

The Supreme People’s Court has released typical cases on source-based dispute resolution in the real estate and construction sectors.
Recently, the Sixth Circuit Court of the Supreme People’s Court released typical cases on source‑level dispute resolution in the real estate and construction engineering sectors within its circuit jurisdiction.
This batch of typical cases comprises ten examples, covering areas such as monitoring and safeguarding key projects, addressing the difficulty of obtaining certificates, revitalizing stalled projects, involving notarization in judicial assistance, conducting pre-litigation appraisals, issuing judicial recommendations, and providing compliance‑management advice. In Case No. 5, the Xingqing District People’s Court of Ningxia and a notary office in Yinchuan signed a Cooperation Agreement on the Pilot Program for Notarization’s Participation in Judicial Assistance Matters. The agreement stipulates that, for disputes brought before the court, the case filing division shall assign notary‑led mediators to guide parties with similar types of disputes first into the notarization‑mediation stage; the notary office will employ notarization to secure evidence that is likely to give rise to disputes, ascertain the parties’ genuine needs, and clarify the law to encourage the disputing parties to voluntarily resolve their differences through settlement; on the same day, any mediation agreement reached will be notarized, while if mediation fails, the case will promptly proceed to litigation.

The Supreme People’s Procuratorate and two other departments have jointly released typical cases of family education guidance in cases involving minors.
On May 24, the Supreme People’s Procuratorate, the All-China Women’s Federation, and the China Care for the Next Generation Working Committee jointly released the second batch of typical cases demonstrating the comprehensive implementation of family education guidance in handling cases involving minors.
This batch of typical cases comprises six matters, including criminal cases involving minors, cases of harm to minors, civil enforcement supervision cases concerning minors, and protection cases for minors in difficult circumstances. The cases collectively highlight a range of valuable practices and approaches, such as procuratorial organs transforming guardians’ educational methods to rebuild family support systems; upholding the principle of acting in the best interests of the child when handling guardianship‑related abuse cases and addressing “problematic parents”; integrating rehabilitation and guidance for juvenile offenders with family education counseling for their guardians to enhance the effectiveness of correction; leveraging family education guidance to resolve challenges in visitation arrangements; and conducting dynamic assessments of the outcomes of family education guidance while promptly adjusting intervention plans, thereby fostering the development of family education guidance teams in areas where social support is lacking, among other initiatives.

The Supreme People’s Court has issued a judicial interpretation on the statute of limitations for claims for state compensation.
On May 24, the Supreme People’s Court issued the “Interpretation of the Supreme People’s Court on Several Issues Concerning the Application of the Statute of Limitations in Judicial Compensation Cases,” which will take effect on June 1, 2023.
The Interpretation consists of thirteen articles, with its main provisions covering the rules for calculating the commencement of the limitation period for claims for criminal compensation, the rules for calculating the commencement of the limitation period for non‑criminal judicial compensation claims, the rules for deducting special periods from the limitation period, the suspension of the limitation period, and the legal consequences of the expiration of the limitation period. The Interpretation clarifies that the limitation period for a claimant to file a claim for compensation with the compensation‑obligated authority is two years; upon the expiration of this period, the compensation‑obligated authority may raise a defense of non‑compensation. Periods during which the claimant is detained or otherwise deprived of personal liberty shall not be counted within the limitation period. Furthermore, the Compensation Committee of the People’s Courts may not, on its own initiative, apply the limitation period when hearing state compensation cases.

JC Master Law Office
Address: 9th Floor, National Water Resources Building, No. 70 Qingjiang South Road, Nanjing City
Postal code: 210036
Phone: 025-84503333
Fax: 025-84505533
Website: www.jcmaster.com
This legal notice is provided solely for informational purposes and does not constitute legal advice or a legal analysis of any specific case. The transmission of this legal notice does not establish an attorney–client relationship between JC Master Law Office and the user or reader. JC Master Law Office assumes no responsibility for any third-party content accessible via the internet. If you do not wish to receive this legal notice, please notify us by email at jcm@jcmaster.com.
The copyright in this legal information is owned by JC Master Law Office ©. Without written permission, no organization or individual may reproduce, publish, or cite it in any form.