JC Master Legal News Issue 1115

Key Takeaways for This Issue

The China Securities Regulatory Commission is soliciting public comments on the “Regulations on the Mutual Recognition of Fund Management in Hong Kong (Draft Amendment for Public Comment).”

Recently, the China Securities Regulatory Commission (CSRC) has revised the Interim Provisions on the Mutual Recognition of Funds between Mainland China and Hong Kong (CSRC Announcement [2015] No. 12), further refining the mutual recognition framework for funds. The CSRC has also released the Draft Amendment to the Regulations on the Mutual Recognition of Funds between Mainland China and Hong Kong for public consultation.

The China Securities Regulatory Commission is soliciting public comments on the “Basic Rules on Discretion in Administrative Penalties of the China Securities Regulatory Commission (Draft for Comments).”

To further standardize the exercise of administrative penalty discretion by the China Securities Regulatory Commission and its local branches, to ensure uniformity in enforcement standards, to enhance transparency in discretionary decision-making, and to uphold fairness in such decisions, the CSRC has systematically reviewed recent administrative penalty practices, conducted extensive consultations to solicit views and suggestions from all stakeholders, and drawn extensively on proven domestic and international experience. On this basis, it has drafted the “Basic Rules on Administrative Penalty Discretion of the China Securities Regulatory Commission (Draft for Public Comment)” and is now seeking public input.

The Ministry of Public Security has introduced eight reform measures to make life easier for the public and businesses, enhancing transportation services.

On June 13, the Ministry of Public Security held a press conference to unveil eight new measures aimed at streamlining public security traffic management and benefiting both the public and businesses. These measures further expand the promotion and application of electronic credentials, reduce the need for paper documents to make life easier for citizens, optimize non-motorized vehicle traffic management at urban intersections, and innovate “Internet Plus” traffic management services.

The Supreme People’s Procuratorate has released typical cases of public-interest litigation in the field of cultural relics and cultural heritage protection.

The Supreme People’s Procuratorate website has published the “Notice on Issuing the ‘Typical Cases of Public Interest Litigation by the Procuratorial Organs for the Protection of Cultural Relics and Cultural Heritage.’”

Finance and Capital Markets

FINANCE &CAPITAL MARKETS

The China Securities Regulatory Commission is soliciting public comments on the “Regulations on the Mutual Recognition of Fund Management in Hong Kong (Draft Amendment for Public Comment).”

On April 19, 2024, the China Securities Regulatory Commission (CSRC) announced five measures to strengthen capital market cooperation with Hong Kong, helping the city consolidate and enhance its status as an international financial center. Recently, the CSRC revised the “Provisional Regulations on the Mutual Recognition of Funds between Mainland China and Hong Kong” (CSRC Announcement [2015] No. 12), further optimizing the mutual recognition arrangement for funds between the mainland and Hong Kong, and has now released the “Regulations on the Mutual Recognition of Funds between Mainland China and Hong Kong (Draft Amendment—Public Consultation)” for public comment.

Since the implementation of the Mainland–Hong Kong Mutual Recognition of Funds mechanism in July 2015, the mutual recognition process has progressed steadily and smoothly, with its systems and mechanisms functioning effectively. This has adequately met the cross-border wealth management needs of investors on both sides while providing strong support for the development of Hong Kong as an international financial center. To further enhance the positive impact of the mutual recognition mechanism, this revision of the rules proposes optimizations in two key areas: first, raising the cap on the proportion of sales of recognized funds in the host jurisdiction from 50% to 80%; and second, permitting Hong Kong‑recognized funds to delegate their investment management functions to overseas asset management entities within the same group as the fund manager.

We welcome valuable feedback from all sectors of society. The China Securities Regulatory Commission will, based on the results of the public consultation, further revise and refine the measures before issuing and implementing them.

The China Securities Regulatory Commission and the Brazilian Securities and Exchange Commission have renewed the Memorandum of Understanding on Cooperation in Securities and Futures Regulation.

The China Securities Regulatory Commission and the Brazilian Securities and Exchange Commission renewed and signed the Memorandum of Understanding on Cooperation in Securities and Futures Regulation in Beijing, marking a new phase in cooperation between the securities and futures regulators of China and Brazil.

Over the years, the China Securities Regulatory Commission and the Brazilian Securities and Exchange Commission have maintained a robust cooperative relationship, fostering a favorable regulatory environment for collaboration in the capital markets of both countries. In response to the needs of capital market development and cross-border regulatory cooperation, the two sides have updated the Memorandum of Understanding on Securities Regulatory Cooperation signed in 1997, a move of significant importance for further strengthening regulatory cooperation between the Chinese and Brazilian capital markets. At present, the China Securities Regulatory Commission has concluded bilateral memoranda of understanding on regulatory cooperation with securities and futures regulators from 67 countries and regions, establishing mechanisms for cross-border regulatory and enforcement cooperation.

The China Securities Regulatory Commission is soliciting public comments on the “Basic Rules on Discretion in Administrative Penalties of the China Securities Regulatory Commission (Draft for Comments).”

To further standardize the exercise of administrative penalty discretion by the China Securities Regulatory Commission and its branch institutions, to ensure uniformity in enforcement standards, to enhance the transparency of such discretion, and to uphold fairness in decision-making, the CSRC has systematically reviewed recent administrative penalty practices, conducted extensive consultations to solicit views and suggestions from all stakeholders, and drawn extensively on mature domestic and international experience. On this basis, it has drafted the “Basic Rules on Administrative Penalty Discretion of the China Securities Regulatory Commission (Draft for Public Comment)” (hereinafter referred to as the “Basic Rules on Discretion”) and is now seeking public input.

The “Basic Rules on Discretion” comprise twenty-six articles, clarifying the purpose and legal basis for formulating these rules, defining administrative penalty discretion, and setting out the guiding principles and discretionary policies that must be observed in exercising such discretion. The document also specifies the gradations of discretion and the relevant circumstances to be considered, and lays down provisions concerning penalties for joint offenders, for the directly responsible persons in charge of an organization and other persons directly liable, as well as rules on the application of old and new laws, multi‑dimensional accountability, and the coordination between administrative and criminal proceedings—issues all pertinent to the exercise of administrative penalty discretion.

We welcome valuable input from all sectors of society. The China Securities Regulatory Commission will carefully review the feedback received, further refine the measures, and issue and implement them in accordance with established procedures.

The Shanghai Stock Exchange has formulated detailed rules for the administration of algorithmic trading, aiming to ensure the effective implementation of algorithmic‑trading regulatory measures.

To implement the regulatory requirements set forth in the Provisional Regulations on the Administration of Algorithmic Trading in the Securities Market (hereinafter referred to as the “Regulations”), promote the orderly development of algorithmic trading, and safeguard the order of securities trading and market fairness, the Shanghai Stock Exchange (hereinafter referred to as the SSE), under the unified guidance of the China Securities Regulatory Commission, has drafted the Detailed Rules for the Administration of Algorithmic Trading of the Shanghai Stock Exchange (Draft for Comments) (hereinafter referred to as the “Detailed Rules”) and, effective June 7, 2024, is soliciting public comments.

In recent years, in order to implement the requirements of the Securities Law and under the unified deployment of the China Securities Regulatory Commission, the development of a regulatory framework for algorithmic trading has advanced steadily. In February 2021 and September 2023, the Shanghai Stock Exchange issued notices on reporting requirements for convertible corporate bonds and equity market algorithmic trading, thereby establishing a reporting system for algorithmic trading on the Shanghai market. On May 15, 2024, the China Securities Regulatory Commission formally promulgated the “Administrative Provisions,” setting out overarching, framework‑level institutional arrangements for the regulation of algorithmic trading in the securities market. To ensure the effective implementation of these Administrative Provisions, the Shanghai Stock Exchange has further refined specific provisions covering areas such as the management of algorithmic trading reports, trading conduct, information systems, high‑frequency trading, Shanghai‑Hong Kong Stock Connect, and oversight and inspection, and has formulated the “Detailed Implementation Rules.”

The Implementing Rules provide comprehensive support and orderly alignment with the relevant provisions of the Administrative Regulations. The main contents include: First, reporting management. This section sets out requirements regarding the content and deadlines for reports by algorithmic‑trading investors, as well as procedures for reporting changes, and delineates the reporting‑management responsibilities of members vis‑à‑vis their clients. Second, trading‑behavior management. It further specifies four key categories of algorithmically driven abnormal trading behaviors—abnormal instantaneous order‑submission rates, frequent instantaneous order cancellations, repeated price‑manipulation activities, and large‑volume trades executed within short time frames—and clarifies the compliance and risk‑control obligations of institutions and members. Third, information‑system management. It details the specific technical‑system requirements and testing protocols for algorithmic trading, establishes provisions on member‑level report monitoring, trading‑unit management, and host‑datacenter resource management, and sets forth requirements for the charging and administration of value‑added market data services; specific fee standards will be promulgated separately. Fourth, high‑frequency trading management. It defines the criteria for identifying high‑frequency trading, mandates stringent regulatory oversight of such activity, and introduces differentiated management measures, including additional reporting and higher transaction fees; for entities not engaged in high‑frequency trading, the general management rules applicable to algorithmic trading shall apply. Specific differentiated fee schedules will be issued separately. Fifth, Shanghai‑Hong Kong Stock Connect algorithmic‑trading management. It stipulates that Shanghai‑Hong Kong Stock Connect investors, in accordance with the principle of equal treatment between domestic and foreign capital, shall be subject to the relevant provisions of these Implementing Rules concerning reporting management, trading‑behavior management, and high‑frequency trading management. It also clarifies the reporting pathways for Shanghai‑Hong Kong Stock Connect investors and arrangements for regulatory cooperation. Sixth, supervision and inspection. The Exchange may, as necessary for self‑regulatory purposes, conduct on‑site or off‑site inspections of entities involved in algorithmic trading; for any entity found to have violated these Implementing Rules, the Exchange may, in accordance with applicable regulations, impose self‑regulatory measures or disciplinary sanctions.

The deadline for soliciting public comments on the Implementation Rules is June 14, 2024. The Shanghai Stock Exchange welcomes valuable feedback from all sectors of society and will diligently collect, organize, and incorporate such input. Following further revisions and refinements, the Implementation Rules will be officially promulgated. Moving forward, in accordance with the unified deployment of the China Securities Regulatory Commission, the Shanghai Stock Exchange will strengthen its institutional framework, rigorously fulfill its duties, and continuously enhance oversight of algorithmic trading activities. This effort aims to promote the orderly and compliant development of algorithmic trading, safeguard an open, fair, and impartial market environment, and protect the legitimate rights and interests of investors. In addition, in line with the regulatory requirements set forth in the Administrative Provisions and the Implementation Rules, the Shanghai Stock Exchange will expedite the formulation of a differentiated fee structure for high-frequency trading, consolidate and revise the previously issued notices on algorithmic trading reporting, and, as appropriate, issue monitoring standards for abnormal algorithmic trading activities through suitable channels.

The Shenzhen and Hong Kong stock exchanges are collaborating to build a comprehensive fund platform in Hong Kong, enhancing financial infrastructure services in the Greater Bay Area.

On June 13, Shenzhen Securities Communication Co., Ltd. (hereinafter referred to as SZSE‑Comm), a subsidiary of the Shenzhen Stock Exchange (hereinafter referred to as SZSE), and Hong Kong Exchanges and Clearing Limited (hereinafter referred to as HKEX) held a signing ceremony in Hong Kong for technical cooperation, jointly participating in the development of Hong Kong’s Integrated Fund Platform. The two parties agreed that SZSE‑Comm will establish a financial data exchange platform in Hong Kong, serving as the foundational communication network hub for the Integrated Fund Platform, thereby providing Hong Kong‑based financial institutions with compliant, efficient, secure, reliable, and standardized fund market infrastructure services.

As a financial infrastructure for Hong Kong’s fund market, the Hong Kong Integrated Fund Platform connects various participants within the fund distribution ecosystem and offers functions such as subscription and redemption, payment and settlement, and a range of optional agency services to facilitate transactions. At the same time, the platform will provide investors with richer information, enhancing transparency in fund investment choices.

Upon completion, the Hong Kong Integrated Fund Platform is expected to provide tangible convenience for market participants in accessing the fund industry, effectively expand Hong Kong’s fund distribution network, broaden the range of available fund products, reduce investor costs, and help enhance the attractiveness and competitiveness of Hong Kong as an international financial center.

Going forward, the Shenzhen Stock Exchange will continue to thoroughly implement the spirit of the Central Financial Work Conference. Under the leadership of the China Securities Regulatory Commission, it will leverage the Shenzhen–Hong Kong region’s strategic advantages, strengthen ongoing communication and collaboration with the Hong Kong Exchanges and Clearing and other relevant stakeholders, enhance the level of capital market connectivity within the Greater Bay Area, help consolidate Hong Kong’s status as an international financial center, and actively inject new momentum into the high-quality development of the Guangdong–Hong Kong–Macao Greater Bay Area.

The National Administration of Financial Regulation: Strengthen internal control management of inclusive insurance to ensure the authenticity of business and financial data.

The website of the National Administration of Financial Regulation has released the “Guiding Opinions on Promoting the High-Quality Development of Inclusive Insurance,” outlining twenty specific measures across five key areas.

The “Guiding Opinions” stipulate that insurance companies shall establish a leadership framework for the development of inclusive insurance, incorporate the provision of inclusive insurance and the fulfillment of social responsibility into their performance appraisal systems, and assign an assessment weight of no less than 5%—in principle—to inclusive insurance within large insurers. They are also required to strengthen internal controls over inclusive insurance operations, ensuring that business practices comply with laws and regulations, that business and financial data are accurate, and that relevant risks are promptly identified and effectively managed. The “Guiding Opinions” further emphasize the need to reinforce regulatory oversight of inclusive insurance activities, proposing the inclusion of inclusive insurance in insurers’ regulatory evaluation frameworks and the implementation of differentiated regulatory approaches. Moreover, inspection and supervision of inclusive insurance operations will be intensified, with any violations of laws or regulations being rigorously addressed in accordance with the law.

Business and Corporations

COMMERCIAL & CORPORATE

The National Development and Reform Commission has issued the Special Management Measures for Central Budgetary Investment in Agriculture.

On June 13, the National Development and Reform Commission published on its website the “Notice on Issuing the Special Management Measures for Central Budgetary Investment in Agriculture,” which will be effective for a period of five years and aims to strengthen and standardize the management of central budgetary investment earmarked for agricultural projects.

The Notice stipulates that engineering projects supported under this special program shall, in accordance with applicable regulations, implement project‑legal‑person responsibility, tendering and bidding, construction supervision, contract management, and other construction‑management systems; strengthen quality, schedule, cost, and safety controls; and promptly carry out completion acceptance upon project completion. Project entities are required to establish and improve comprehensive rules and procedures for the management and use of funds, ensuring strict compliance with relevant provisions as well as with the approved project scope, scale, and standards; the misappropriation, embezzlement, or diversion of project funds is strictly prohibited.

The National Medical Products Administration has revised the List of Mandatory Standards Applicable to Medical Device Products.

On June 13, the Medical Device Technical Review Center of the National Medical Products Administration released the “List of Mandatory Standards Applicable to Medical Device Products (2024 Revision).”

The list is structured according to the secondary-level product catalog of the “Catalogue of Medical Device Classification” and presents, for each product category, the mandatory national standards and mandatory industry standards that apply to all or some of the products within that category. If, during the validity period of a medical device registration certificate, a mandatory standard listed in the catalogue is revised and subsequently promulgated and implemented, any modifications made to an already registered product to ensure compliance with the new mandatory standard shall be deemed subject to amendment registration as stipulated in the “Measures for the Registration and Filing of Medical Devices.” In such cases, the registrant shall first complete the procedures for amending the registration.

The National Medical Products Administration plans to revise the inspection checklist and judgment criteria for clinical trial projects of medical devices.

On June 13, the Comprehensive Department of the National Medical Products Administration issued a notice soliciting public comments on the “Notice on the Release of Key Inspection Points and Judgment Criteria for Clinical Trial Projects of Medical Devices (Draft for Comments),” with the deadline for submitting feedback set for June 30.

The Notice sets forth three handling principles, covering the following scenarios: for registration applications under review, where inspection results indicate issues of authenticity; where inspection results indicate issues of authenticity; where inspection results indicate issues of compliance and meet the required standards; for projects that have already obtained administrative approval, where inspection results reveal issues of authenticity or serious non‑compliance; and where inspections uncover conduct that violates laws or regulations.

The State Administration for Market Regulation has issued the Plan for the Formulation, Revision, and Promotion of National Metrological Technical Specifications.

On June 13, the General Office of the State Administration for Market Regulation issued a notice promulgating the “2024 Plan for the Formulation, Revision, and Dissemination of National Metrological Technical Specifications.”

The notice specifies that projects involving formulation or revision must submit their materials for review and approval by May 31, 2026, while projects focused on publicity and implementation must be completed by December 31, 2024.

The “Industrial Product Quality and Safety Risk Control List” Has Been Released.

Recently, the General Office of the State Administration for Market Regulation issued the “Notice on Guiding and Supervising Industrial Product Manufacturers and Sellers to Strengthen Risk Management,” focusing on high-risk industrial products that pose threats to public life and property. The notice has developed risk‑management checklists covering 20 types of industrial products, 30 categories of consumer goods, and 13 types of food‑related products made from specific materials, as well as for wholesale, retail, and online sellers. These lists are intended to guide and urge manufacturers and sellers to accurately identify and mitigate potential risks and to fulfill their primary responsibilities for product quality and safety.

Based on the specific characteristics of each product, the checklist identifies critical control points and key risk factors, covering the entire production and sales process—from raw materials and manufacturing processes to finished‑product release; from product labeling and identification, to production and storage conditions and equipment operation; and from raw material procurement to the sale of finished goods—while establishing a comprehensive list of critical risk points and corresponding risk‑control measures.

The Ministry of Ecology and Environment is seeking public input on the “Action Plan for Source-Based Prevention and Control of Soil Pollution.”

On June 14, the General Office of the Ministry of Ecology and Environment released the “Action Plan for Source-Based Prevention and Control of Soil Pollution (Draft for Public Comment),” inviting public feedback until June 23.

The Action Plan is divided into six sections and sets out the following key tasks: improving the policy framework for source‑level prevention of soil pollution; implementing ecological and environmental zoning management; accelerating the green transformation of industries; promoting mandatory clean‑production audits in priority sectors; and strengthening the protection of uncontaminated soils. It also calls for the rigorous enforcement of pollution‑prevention measures, reinforcing accountability among key entities, and synergizing efforts to prevent seepage from wastewater and waste liquids, regulate emissions of heavy‑metal‑containing gases, and promote waste reduction and comprehensive utilization. Furthermore, it mandates the tracing and remediation of contaminated farmland, advances the treatment and restoration of priority areas, key industries, and high‑risk sites, and addresses longstanding, severe pollution problems. Finally, it seeks to refine institutional mechanisms by emphasizing legislative development, inter‑agency coordination, and the demonstration effect of model initiatives.

The Ministry of Public Security has introduced eight reform measures to make life easier for the public and businesses, enhancing transportation services.

On June 13, the Ministry of Public Security held a press conference to unveil eight new measures aimed at streamlining public security traffic management and benefiting both the public and businesses. These measures further expand the promotion and application of electronic credentials, reduce the need for paper documents to make life easier for citizens, optimize non-motorized vehicle traffic management at urban intersections, and innovate “Internet Plus” traffic management services.

These eight measures are: piloting the electronic issuance of motor vehicle registration certificates; implementing a “one‑document, one‑stop” service for motorcycle registration; streamlining online procedures for vehicle deregistration; providing door‑to‑door courier services to facilitate public transactions; optimizing the examination requirements for reissuing driver’s licenses; improving traffic management at urban intersections to better accommodate non‑motorized vehicles; launching an online, precision‑guided service for traffic‑management matters; and introducing a corporate‑user version of the “Traffic Management 12123” app.

The Ministry of Natural Resources has issued 19 industry standards, including the “Regulations on Real Estate Registration.”

Nineteen industry standards, including the “Procedures for Real Estate Registration,” have been reviewed and approved by the National Technical Committee for Standardization of Natural Resources and Territorial Spatial Planning, and were published on June 11, with effect from September 1, 2024.

The 19 industry standards released this time include: Procedures for Real Estate Registration, General Principles for Accounting of Natural Resource Assets Owned by All the People, Procedures for Valuing Orchard Land, Specifications for Building a Database to Evaluate the Economical and Intensive Use of Construction Land, Land‑Use Control Indicators for Oil and Natural Gas Engineering Projects, Guidelines for Preparing Ecological Restoration Plans at the Municipal and County Levels, Evaluation Standards for Advanced and Applicable Technologies in the Conservation and Comprehensive Utilization of Mineral Resources, and Specifications for Investigating and Evaluating Soil and Water Environmental Quality in the Reclamation of Abandoned Industrial and Mining Sites, among others.

The Ministry of Finance has, for the first time, issued 50-year ultra-long-term special government bonds totaling RMB 35 billion.

On June 14, the Ministry of Finance issued, for the first time, a 50-year ultra-long-term special government bond with a total issuance of RMB 35 billion. The coupon rate was determined through a competitive bidding process conducted by the underwriting syndicate.

This issue of government bonds will be issued through the Ministry of Finance’s Beijing Stock Exchange Government Bond Issuance System via a tender process. It is a 50-year, fixed‑rate, coupon‑bearing bond with a total issuance size of RMB 35 billion. Interest accrual will commence on June 15, 2024, with interest payments made semiannually, and principal repayment together with the final interest payment due on June 15, 2074.

The CNIPA has revised the “Guidance on Administrative Services for Intellectual Property (Second Edition).”

On June 13, the National Intellectual Property Administration issued an announcement revising and releasing the “Guidance on Administrative Services for Intellectual Property Matters (Second Edition).” The “Guidance on Administrative Services for Intellectual Property Matters,” originally published on March 3, 2023, is hereby repealed.

The Guide comprises five major sections—patent‑related, trademark‑related, geographical indication‑related, integrated circuit layout‑design‑related, and intellectual property‑related—covering the channels for accessing each service, the application procedures, processing time limits, oversight and evaluation mechanisms, and the outcomes of applications.

The General Office of the CPC Central Committee has issued the Outline for the National Plan on Building Party and Government Leadership Teams.

Recently, the General Office of the CPC Central Committee issued the Outline for the National Plan on Building Party and Government Leadership Teams (2024–2028).

The Outline proposes focusing on upholding the “Two Upholds” to strengthen the Party’s political development, deeply understanding the decisive significance of the “Two Establishments,” forging political loyalty, enhancing political competence, and strictly implementing democratic centralism. It calls for unremittingly using Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era to unify minds and fortify souls, reinforcing the Party’s ideological armament through innovation, and ensuring the integration of study, thinking, and application, as well as the unity of knowledge, belief, and action. Efforts should be made to select and appoint strong leadership teams, giving priority to choosing capable principal leaders, optimizing age structures, improving professional compositions, and refining the sources and career paths of personnel. A sound, regular mechanism for cultivating and selecting outstanding young cadres should be established, with appropriate representation of female cadres, ethnic minority cadres, and non-Party members. Leadership capacity for modernization must be significantly enhanced through rigorous training in performing duties, intensified practical experience, and the cultivation of a fighting spirit and combat capabilities. We must encourage taking responsibility and delivering benefits to the people, foster and practice a correct view of official achievements, and improve mechanisms for incentivizing and protecting those who dare to take on responsibilities and deliver results. With an uncompromising tone, we will strengthen efforts to promote integrity and enforce discipline, vigorously uphold a style of seeking truth from facts and being pragmatic, and deepen the drive to build a clean and honest Party.

The People’s Bank of China convened a meeting to advance the implementation of the affordable housing refinancing program.

On June 12, the People’s Bank of China convened a meeting to advance the implementation of the affordable housing refinancing program, reviewed and promoted the pilot experience of the earlier rental housing loan support scheme, and outlined plans for rolling out the affordable housing refinancing initiative.

The meeting emphasized that establishing a refinancing program for affordable housing will help accelerate the destocking of existing commercial housing through market‑based mechanisms, increase the supply of affordable housing, and support timely project delivery and the “whitelist” system. Following the principle of “government guidance and market‑oriented operations,” and drawing on the experience gained from earlier pilot programs, efforts should be focused on ensuring the effective implementation of this refinancing policy to expedite the reduction of inventory in the existing commercial housing stock. At the same time, institutional safeguards and both internal and external oversight must be strengthened; participation should remain voluntary, procurement should be demand‑driven, and pricing should be reasonable, so as to ensure commercial sustainability, strictly prevent the accumulation of new local implicit debt, and effectively mitigate moral hazard.

The State Administration for Market Regulation has approved the release of a batch of important national standards, covering areas such as electric vehicles.

Recently, the State Administration for Market Regulation (Standardization Administration of China) approved and released a batch of important national standards covering such fields as energy use and storage, electric vehicles, sports and leisure, and children’s products.

In the areas of energy use and storage, a series of standards for electrochemical energy storage has further clarified technical requirements for grid connection, power‑control strategies, and operational management protocols. These standards comprehensively regulate the testing of model parameters across different time scales at electrochemical energy‑storage stations, providing both theoretical foundations and empirical data to support the safe and stable operation of such facilities when integrated into the grid. In the field of electric vehicles, the post‑collision safety standard for fuel‑cell electric vehicles specifies requirements for whole‑vehicle hydrogen leakage, occupant‑compartment hydrogen leakage rates, and the installation strength and test methods for hydrogen storage tanks. Meanwhile, the information‑exchange standard for electric‑vehicle charging and battery‑swapping services enables data sharing among networked service platforms, fostering data interoperability and seamless business integration across the charging/battery‑swapping sector and its upstream and downstream industries. Finally, the standard on the recycling and reuse of automotive power batteries sets out management and technical specifications for the recovery and utilization of end‑of‑life power batteries from new‑energy vehicles, placing particular emphasis on safety and environmental protection throughout all stages of the recycling process.

The State-owned Assets Supervision and Administration Commission has released the key priorities for government information disclosure in 2024.

On June 11, the website of the State-owned Assets Supervision and Administration Commission of the State Council published the “Key Work Priorities for Government Information Disclosure in 2024.”

The “Key Work Points” comprise five major areas and fifteen specific measures, clearly focusing on the following priorities: upholding and strengthening the CPC’s overall leadership; fully, accurately, and comprehensively implementing the new development philosophy; serving the establishment of a new development paradigm and promoting high-quality development; optimizing the layout and restructuring the state‑owned economy to better leverage its strategic supporting role; achieving both qualitative improvements and reasonable quantitative growth in the economy; adhering to the laws of the market economy and enterprise development; continuously deepening reform of state‑owned assets and state‑owned enterprises; enhancing enterprises’ core functions and competitiveness; further strengthening their roles in technological innovation, industrial control, and security support; accelerating the building of world‑class enterprises and a modern industrial system; innovating and developing a Chinese‑style state‑asset supervision system; deepening the separation of government from enterprises and government from state‑owned assets; reinforcing professional, systematic, law‑based, and efficient regulatory mechanisms; better enabling enterprises to prevent and defuse major risks; and, in areas such as departmental budget management, government procurement, civil service recruitment, and the handling of proposals from the National People’s Congress and the Chinese People’s Political Consultative Conference, further advancing government transparency.

The Cyberspace Administration of China has released the sixth batch of filing information for deep synthesis service algorithms.

On June 12, China Internet Information Office published the “Announcement on the Release of Filing Information for the Sixth Batch of Deep Synthesis Service Algorithms.”

The Announcement published 492 registered domestic deep synthesis service algorithms, including Tencent Hunyuan’s multimodal large‑model algorithm, Haidian Culture and Tourism’s Ruru large‑model algorithm, Himalaya’s speech‑recognition algorithm, Tencent Music’s Weiban virtual‑human synthesis algorithm, Alipay’s image‑generation algorithm, Li Auto’s MindDiffusion image‑generation algorithm, Himalaya’s speech‑synthesis algorithm, Insta360’s AI‑generated synthetic algorithm, Youdao Cloud Note’s content‑generation algorithm, Beijing Kuaishou Technology Co., Ltd.’s Kuaiyi large‑model generation and synthesis algorithm, and Alibaba Cloud’s AI portrait‑creation algorithm, among others.

The Ministry of Natural Resources has issued a document to strengthen the protection and restoration of coral reefs.

Recently, the website of the Ministry of Natural Resources published the “Notice on Strengthening the Protection and Restoration of Coral Reefs.”

The Notice comprises ten provisions across five key areas, stipulating the establishment and improvement of an investigation, assessment, and early-warning monitoring system; the strengthening of coral reef ecosystem protection and management; the scientific implementation of coral reef ecosystem conservation and restoration; the exploration of mechanisms to realize the value of coral reef ecological products; and the enhancement of science and technology support capabilities.

The State Administration for Market Regulation has vigorously cracked down on false advertising in the filing of enterprise standards, handling 17 related cases.

Recently, the State Administration for Market Regulation has intensified its efforts to crack down on false advertising related to enterprise standard filing. As of May 2024, a total of 17 cases of misconduct—suspected of engaging in deceptive advertising under such labels as “enterprise with standards filed with the National Standardization Administration Committee”—have been identified and addressed, effectively curbing these practices.

To address the rampant issue of false advertising, strengthen the management of enterprise standards, and uphold the integrity of the public disclosure system for self‑declared enterprise standards, the State Administration for Market Regulation has coordinated with the National Organization Code Data Service Center to swiftly implement a comprehensive set of measures: conducting thorough reviews and investigations, systematically examining each enterprise on the enterprise‑standard platform suspected of engaging in false advertising and maintaining detailed records; issuing timely warnings by publishing alert notices on the platform to remind enterprises and the public to take preventive measures; ensuring smooth reporting channels and clearly defining procedures and methods for filing complaints, thereby encouraging active oversight and reporting by both enterprises and the public; and taking stringent enforcement actions, ordering implicated enterprises to make rectifications within a specified timeframe and publicly disclosing such actions on the enterprise‑standard platform.

The Ministry of Ecology and Environment plans to strengthen environmental impact assessment and pollutant discharge permitting for construction projects in key industries involving emerging pollutants.

On June 12, the website of the Ministry of Ecology and Environment published the “Notice on Public Solicitation of Comments on the Draft ‘Notice on Strengthening Environmental Impact Assessment and Pollutant Discharge Permitting for Construction Projects Involving Emerging Pollutants in Key Industries,’” with a deadline for submitting feedback set for June 26.

The Notice identifies the new pollutants of primary concern in environmental impact assessments (EIAs) for construction projects as those listed in the New Pollutant Inventory, the Catalogue of Toxic and Harmful Pollutants, and the Priority Control Chemicals Catalogue—specifically, substances for which environmental quality standards, pollutant discharge standards, or environmental monitoring standards have been promulgated, or for which standardized monitoring methods or pollution‑control technologies exist—as well as chemical substances included in the annexes to the Stockholm Convention on Persistent Organic Pollutants. The industries designated as priority sectors in EIA procedures are those specified in the Action Plan, namely petrochemicals, coatings, textile dyeing and printing, rubber, pesticides, and pharmaceuticals; additionally, the tanning and electroplating industries are also brought within the scope of focused attention. Based on documents such as the “List of Key Controlled New Pollutants (2023 Edition),” the Notice establishes a list of project types that will not be approved, clarifies the requirements for assessing new pollutants in EIAs, and strengthens the management of pollutant discharge permits and ongoing and post‑approval oversight.

The Ministry of Ecology and Environment plans to revise the Measures for the Administration of the Import and Export of Ozone-Depleting Substances.

On June 12, the website of the Ministry of Ecology and Environment published the “Letter on Public Solicitation of Comments on the Draft Amendment to the Measures for the Administration of the Import and Export of Ozone-Depleting Substances,” with a deadline for submitting feedback set for July 12.

The Measures clearly specify the circumstances under which an import‑export quota is not required and delineate the scope of import‑export enterprises that must apply for a quota; they also stipulate that certain enterprises exempt from the requirement to obtain an import‑export quota may directly apply for an import‑export approval certificate.

Beijing plans to issue the 2024 edition of the discretionary standards for administrative penalties in population management.

On June 12, the Beijing Municipal Government website published the “Notice on Public Solicitation of Comments on the ‘Beijing Municipal Population Management Administrative Penalty Discretionary Standards (2024 Edition) (Draft for Comments),’” with a deadline for submitting feedback set for June 18.

The “Discretionary Standards” cover administrative penalties related to resident identity cards, residence permits, border passes, public security management of rented housing, and management of building and door‑plate numbering, encompassing a total of six legal bases. Notably, the discretionary standards for administrative penalties under the Beijing Municipal Housing Rental Regulations and the Beijing Municipal Regulations on the Administration of Building and Door‑Plate Numbers are newly added in this revision.

Shanghai Launches the Second “Enterprise Commercial Secret Protection Capacity‑Building Service Month” Initiative.

On June 11, the Shanghai Municipal Administration for Market Regulation published on its website the “Notice on Launching the Second Shanghai ‘Enterprise Commercial Secret Protection Capability Enhancement Service Month’ Campaign.”

The Notice clarifies that Shanghai’s second “Enterprise Commercial Secret Protection Capacity‑Enhancement Service Month” will be held in June under the theme “Protecting Commercial Secrets, Strengthening Enterprises and Safeguarding Supply Chains.” All relevant entities will organize Service Month activities centered on five key areas: conducting visits and surveys of enterprises, intensifying public awareness campaigns, enhancing administrative guidance, reinforcing law enforcement and case handling, and organizing region‑wide initiatives.

Taxation

TAXATION  

The Regulations on Military Auditing Have Been Revised and Issued, Further Standardizing Matters, Authorities, and Procedural Mechanisms, among other aspects.

Recently, the newly revised Regulations on Military Auditing were promulgated and will take effect on July 1, 2024.

The Regulations comprise eight chapters and 75 articles, clearly defining the military audit’s role as economic oversight, strengthening its political character and functions, and upholding the principles of strict adherence to law, seeking truth from facts, comprehensive coverage, problem‑oriented approaches, and integrated investigation and rectification. They focus on establishing and refining an all‑encompassing audit‑supervision framework, further specifying audit‑related matters, and optimizing audit methods for major construction projects and other areas. To enhance audit quality and effectiveness, the Regulations improve end‑to‑end procedural requirements—from planning to the application of audit findings—and establish sound mechanisms for seamless coordination with other supervisory bodies, including systems for reporting, accountability, and follow‑up. These measures are designed to foster synergistic oversight. Moreover, the Regulations emphasize internal capacity building by articulating stricter audit discipline and promoting the development of a high‑caliber, professional audit workforce that is firmly committed to its mission, highly competent, pragmatic in conduct, and upright and incorruptible.

2024 “Spring Rain Nourishes Seedlings” Initiative: Strengthening Policy Guidance for Small and Micro Enterprises in the Fields of Technological Innovation and Manufacturing

The website of the State Taxation Administration has released the “2024 Special Action Plan ‘Spring Rain Nurtures Seedlings’ to Support the Development of Small and Micro Business Entities,” which outlines 12 key service measures to be rolled out in 2024.

Among these measures, the Plan proposes focusing on key industries and providing end-to-end support. It calls for intensifying comprehensive, full‑cycle policy guidance for small and micro enterprises in the fields of technological innovation and manufacturing, ensuring the thorough and meticulous implementation of structural tax and fee reduction policies, and continuously enhancing their core competitiveness. With a particular emphasis on cross‑border small and micro businesses, the Plan identifies critical milestones such as tax filing, changes in business type, modifications to operating models, and alterations in trade modes. Based on the distinct needs of enterprises at different stages of growth, it formulates targeted service measures—covering policy implementation, system operation, risk prevention, and problem‑solving—and ensures ongoing monitoring and effective execution of these initiatives.

Litigation and Arbitration

LITIGATION & ARBITRATION

The Supreme People’s Court has released the sixth batch of selected Q&A entries from the Legal Answers Website.

On June 13, the Supreme People’s Court published a selection of Q&A from the Legal Answers Website (the sixth batch).

This batch of responses comprises four questions, addressing issues such as the criteria for conviction and sentencing in firearm‑related crimes, the employer’s right to choose whether to renew an open‑ended labor contract, the standards for reviewing the “lawful source” defense raised by defendants in trademark disputes, and the validity of marine cargo insurance contracts that prohibit the insurer from exercising subrogation rights. In Question 3, the Supreme People’s Court clarified that, in judicial practice, determining whether the lawful source defense is established requires, on the objective level, examining whether the allegedly infringing goods were lawfully acquired by the seller or user, and, on the subjective level, assessing whether the seller or user was unaware of, or should not have been aware of, the fact that the goods constituted infringement. The subjective and objective elements are interconnected and inseparable, with the examination of the objective requirements playing a crucial role in establishing whether the subjective requirements are met.

The Ministry of Justice has launched the “Legal Aid to Protect Minors” campaign.

Recently, the General Office of the Ministry of Justice issued the “Notice on Launching the ‘Legal Aid to Protect Minors’ Campaign.”

The Notice states that, with the goal of safeguarding the legitimate rights and interests of minors, it will focus on their legal aid needs, establish and improve collaborative mechanisms, ensure adequate staffing and strengthen professional capacity, and build a highly competent and expert team. It aims to effectively enhance the quality of legal aid services for minors, proactively provide end-to‑to‑end optimized and comprehensively inclusive legal assistance, and strive to create a favorable environment for the healthy growth of minors.

The Supreme People’s Procuratorate has released the 53rd batch of guiding cases, focusing on supervision over criminal case filing and investigative activities.

The Supreme People’s Procuratorate website has published the “Notice on Issuing the Fifty-Third Batch of Guiding Cases of the Supreme People’s Procuratorate.”

This batch of guiding cases comprises five instances, primarily focusing on the supervision of criminal case filing and investigative activities. In Case No. 3, the Supreme People’s Procuratorate clarified that it is necessary to strengthen the review and oversight of the legality of investigative actions conducted during the period when a suspect is placed under residential surveillance at a designated location. Where, after excluding illegally obtained evidence, there is sufficient proof that the suspect is suspected of committing a crime but the evidence remains insufficiently solid and comprehensive, or where the evidentiary chain is incomplete, the procuratorial organ may return the case to the public security authorities for supplementary investigation; where necessary, it may also conduct its own investigations and gather evidence. In Case No. 4, the Supreme People’s Procuratorate stipulated that, in handling minor criminal cases involving suspects who have pleaded guilty and accepted punishment, enhanced scrutiny and oversight must be applied to the legality of investigative activities as well as to the authenticity, voluntariness, and lawfulness of the plea and acceptance of punishment, so as to prevent situations in which a plea is entered into against the suspect’s will.

The Supreme People’s Procuratorate has released typical cases of public-interest litigation in the field of cultural relics and cultural heritage protection.

The Supreme People’s Procuratorate website has published the “Notice on Issuing the ‘Typical Cases of Public Interest Litigation by the Procuratorial Organs for the Protection of Cultural Relics and Cultural Heritage.’”

This batch of typical cases comprises eight instances, with protected objects ranging from historic buildings and revolutionary sites to ancient cultural relic sites and overseas‑Chinese‑related cultural relics, all of which possess significant social, cultural, scientific, and economic value. The matters subject to oversight in these cases broadly cover common violations such as damage to the appearance of cultural relics and unlawful occupation of cultural heritage. Where, following the issuance of prosecutorial recommendations by the procuratorial organs, administrative authorities fail to implement corrective measures by the prescribed deadline or carry out only partial remediation, leaving cultural relics continuously vulnerable, the procuratorial organs have instituted legal proceedings in accordance with the law to ensure that damaged cultural relics receive timely and effective protection.

A national deployment meeting for the special campaign by public security organs to combat property-related crimes targeting legal entities has been held.

Recently, a national deployment meeting for the special campaign to combat property‑related crimes targeting public entities was held in Beijing, outlining plans to launch a nationwide initiative to crack down on such offenses.

The meeting noted that in recent years, public‑sector property‑related crimes involving special funds such as medical insurance, maternity insurance, pension insurance, and unemployment insurance, as well as fiscal subsidies for investment promotion, agriculture and agricultural machinery, and vocational skills, have occurred with alarming frequency. These offenses undermine a fair market environment, erode public trust in the government, and harm the legitimate interests of the general public. The meeting emphasized that, in accordance with the principle of “investigating those behind the scenes, dismantling criminal gangs, and destroying their networks,” priority should be given to targeting masterminds, controlling managers, venue operators, and protective forces operating behind the scenes, thereby advancing comprehensive, end‑to‑end crackdowns and industry‑wide rectification efforts. It is essential to strengthen coordination between administrative and criminal enforcement, conduct joint case analyses with relevant departments, make full use of all investigative tools, thoroughly probe regulatory gaps and irregularities in each case, and enhance procedures for transferring cases and sharing information to drive targeted remediation of key issues. Efforts must also be intensified to recover stolen assets and mitigate losses, making every effort to retrieve funds that have been defrauded, misappropriated, or embezzled, so as to minimize damage to national special funds and fiscal subsidies. Finally, public awareness campaigns should be strengthened to expose criminal methods and sustain a strong deterrent effect in the media.