JC Master Legal News Issue 813

Key Takeaways for This Issue
The China Securities Regulatory Commission has issued the “Decision on Amending the Regulations on the Procedures for Implementing Administrative Licenses of the China Securities Regulatory Commission.”
On March 23, the China Securities Regulatory Commission issued the “Decision on Amending the Regulations on the Procedures for Implementing Administrative Licenses of the China Securities Regulatory Commission.” This revision of the Regulations primarily addresses inconsistencies in policies regarding the temporary suspension of acceptance and the suspension of review by various securities intermediary service institutions, mitigates the impact of linkage‑based mechanisms on administrative license applicants who are not involved in the relevant cases, and introduces a mechanism for resuming reviews.
Trump imposes additional tariffs on $60 billion worth of Chinese imports.
At approximately 12:50 a.m. on March 23, U.S. President Donald Trump formally signed a trade memorandum targeting China at the White House. On the spot, Trump announced that he might impose additional tariffs on $60 billion worth of Chinese imports and impose restrictions on Chinese companies’ investments and mergers and acquisitions in the United States.
The Ministry of Finance and the State Taxation Administration have jointly issued the “Notice on Continuing to Support Relevant Stamp Duty Policies for the Restructuring and Reorganization of Enterprises and Public Institutions.”
Recently, the Ministry of Finance and the State Taxation Administration jointly issued the “Notice on Continuing to Support Relevant Stamp Tax Policies for the Restructuring and Reorganization of Enterprises and Public Institutions,” which reafoffices support for such restructuring and reorganization activities and clarifies the stamp tax policies applicable thereto.
The Ministry of Land and Resources has issued the Interim Measures for the Inquiry of Real Estate Registration Records.
On the 20th, the Ministry of Land and Resources issued the Interim Measures for the Inquiry of Real Estate Registration Records (hereinafter referred to as the “Measures”). The Measures further refine the categories of legally authorized inquiry subjects, clarifying who is entitled to make inquiries; they also, for the first time, define the concept of “interested parties,” specifying which interested parties may access the records and to what extent.
Lift restrictions on foreign investment access to payment institutions and promote the establishment of a new landscape of comprehensive opening-up in the payment services market.
The People’s Bank of China has issued Announcement No. 7 [2018], clarifying the access and regulatory framework for foreign-invested payment institutions, further opening up the financial sector to foreign participation, and fostering the sound development of the payment services market.

Table of Contents
Table of Contents

Finance & Capital Markets
The China Securities Regulatory Commission has issued the “Decision on Amending the Regulations on the Procedures for Implementing Administrative Licenses of the China Securities Regulatory Commission.”
The Shanghai Stock Exchange has issued the “Measures for the Implementation of Disciplinary Sanctions and Regulatory Measures (Revised in 2018)” and the “Detailed Rules for the Implementation of Self-Regulatory Hearings.”
The Shanghai Stock Exchange has issued the “Shanghai Stock Exchange Guidelines on Credit Risk Management During the Term of Asset-Backed Securities (Trial) (Draft for Comments).”
The China Banking Regulatory Commission has issued the “Guidelines on the Management of Conduct for Personnel of Banking Financial Institutions.”

Corporate & Commercial
Trump imposes additional tariffs on $60 billion worth of Chinese imports
The Ministry of Human Resources and Social Security and the Ministry of Finance have issued the “Notice on Adjusting the Basic Pensions for Retirees in 2018.”
PwC launches blockchain audit services.
The Ministry of Science and Technology has released the 2017 list of unicorns.

Taxation
The Ministry of Finance and the State Taxation Administration have jointly issued the “Notice on Continuing to Support Relevant Stamp Duty Policies for the Restructuring and Reorganization of Enterprises and Public Institutions.”
The Ministry of Finance, the State Taxation Administration, and the China Securities Regulatory Commission have jointly issued the “Notice on Tax Policies Supporting the Opening-Up of the Crude Oil and Other Commodity Futures Markets.”

Litigation & Arbitration
The Ministry of Land and Resources has issued the Interim Measures for the Inquiry of Real Estate Registration Records.
The Supreme People’s Court and the China Banking Regulatory Commission Strengthen Credit-Based Penalties

Other
Lift restrictions on foreign investment access to payment institutions and promote the establishment of a new landscape of comprehensive opening-up in the payment services market.
An official from the Department of Treaty and Law of the Ministry of Commerce issued a statement regarding the United States’ referral of China’s measures on technology licensing conditions to the WTO dispute settlement mechanism.

Finance & Capital Markets
The China Securities Regulatory Commission has issued the “Decision on Amending the Regulations on the Procedures for Implementing Administrative Licenses of the China Securities Regulatory Commission.”
On March 23, the China Securities Regulatory Commission issued the “Decision on Amending the Regulations on the Procedures for Implementing Administrative Licenses of the China Securities Regulatory Commission” (hereinafter referred to as the “Regulations on the Procedures for Implementing Administrative Licenses”), which took effect on April 23, 2018. The key amendments to these Regulations address inconsistencies in policies regarding the temporary suspension of acceptance and the suspension of review by various securities intermediary service institutions, mitigate the impact of linkage‑based mechanisms on administrative license applicants who are not involved in the relevant cases, and introduce a mechanism for resuming reviews.
From February 24 to March 26, 2017, the China Securities Regulatory Commission (CSRC) publicly sought comments on revisions to the Regulations on the Procedures for Implementing Administrative Licenses. These revisions primarily address inconsistencies in the policy of temporarily suspending acceptance or halting reviews for various securities intermediary service institutions, and they mitigate the impact of linkage‑based mechanisms on administrative license applicants who are not directly involved in the relevant cases. The key amendments fall into two main areas: First, when a securities intermediary service institution or its practitioners are under investigation for suspected violations of laws or regulations, or are being investigated by judicial authorities and the case remains pending, the CSRC will neither accept nor suspend the review of administrative license applications for similar services submitted by that institution. Second, a mechanism has been established to resume review once suspension is lifted. For projects whose review has been suspended, the securities intermediary service institution must assign personnel who have no connection to the matters under investigation to conduct a re‑examination. If, following such re‑examination, the application is found to meet the statutory requirements for an administrative license, the CSRC shall reinstate the review process.

The Shanghai Stock Exchange has issued the “Measures for the Implementation of Disciplinary Sanctions and Regulatory Measures (Revised in 2018)” and the “Detailed Rules for the Implementation of Self-Regulatory Hearings.”
Recently, the Shanghai Stock Exchange revised the 2013 “Measures for the Implementation of Disciplinary Actions and Regulatory Measures of the Shanghai Stock Exchange” (hereinafter referred to as the “Implementation Measures”) and concurrently formulated the “Detailed Rules for Hearings on Self-Regulatory Management of the Shanghai Stock Exchange” (hereinafter referred to as the “Hearing Rules”), which were promulgated and came into effect on March 23, 2018.
The main revisions to these Implementation Measures are as follows: First, in accordance with the provisions of the Measures for the Administration of Stock Exchanges and based on regulatory needs, the types of disciplinary sanctions and supervisory measures have been adjusted and refined, equipping the exchange’s frontline supervision with robust enforcement tools. For example, new disciplinary sanctions have been introduced, such as imposing punitive default penalties on securities issuers, relevant market participants, and members, and requiring members to refuse to accept investors’ Stock Connect trading mandates; additionally, new supervisory measures have been added, including issuing regulatory recommendation letters to the competent authorities. Second, the procedures for implementing trading‑restriction disciplinary sanctions have been streamlined, thereby enhancing the efficiency of oversight over serious abnormal trading activities. Third, the mechanisms, standards, and procedures for imposing disciplinary sanctions and supervisory measures have been further optimized, with the addition of circumstances under which such sanctions may be imposed leniently, mitigated, or aggravated. Fourth, the scope of disciplinary hearings has been expanded to include sanctions such as suspending or restricting trading permissions, revoking trading participant qualifications, disqualifying members, imposing punitive default penalties, and designating investors as unqualified—all of which are now subject to hearing.
The “Rules on Hearings” establish uniform standards for hearing procedures in self-regulatory oversight. On the one hand, it broadens the scope of hearings by bringing matters with significant implications for regulated entities—such as delisting decisions and review proceedings—within their purview, and by expanding the types of disciplinary sanctions for which a hearing may be requested, thereby strengthening protections for those subject to regulation. On the other hand, it refines and streamlines the hearing process: drawing on administrative hearing procedures while taking into account the specific characteristics of self-regulatory oversight, it sets out detailed provisions—guided by the principles of standardization, fairness, and efficiency—regarding the hearing format, procedural steps, the rights and obligations of participants, and the handling of special circumstances.

The Shanghai Stock Exchange has issued the “Shanghai Stock Exchange Guidelines on Credit Risk Management During the Term of Asset-Backed Securities (Trial) (Draft for Comments).”
Recently, the Shanghai Stock Exchange has drafted the “Shanghai Stock Exchange Guidelines on Credit Risk Management During the Term of Asset-Backed Securities (Trial) (Draft for Public Comment)” (hereinafter referred to as the “Guidelines”) and is now soliciting public feedback.
According to the introduction, the Guidelines establish a systematic and comprehensive credit risk management framework centered on the manager. The manager shall adopt a risk‑based approach, continuously conduct ongoing risk management activities—including credit risk monitoring and classification, identification and early warning, as well as mitigation and resolution—and fulfill corresponding obligations such as information disclosure. The original rights holders, asset service providers, credit enhancement institutions, custodians, credit rating agencies, and other participating entities shall each perform their respective duties and collaborate with the manager to ensure effective risk management.
The Guidelines place greater emphasis on monitoring, early warning, and mitigation of credit risk, while also highlighting the use of credit‑risk‑based classification management. It should be noted that, given that credit‑risk management is still in an exploratory phase and the exchange‑traded asset‑securitization market lacks established experience in risk‑classification management, the scientific soundness and practical applicability of the classification criteria remain to be tested in practice. Accordingly, drawing on existing experience, the Guidelines tentatively set out specific standards for risk classification. Asset managers may, in accordance with the Guidelines, apply these standards to classify asset‑backed special purpose plans; provided they can demonstrate reasonable grounds and sufficient justification, they may also independently determine the risk classification of such plans.
Meanwhile, to standardize the preparation and disclosure of periodic reports for asset-backed securities and to safeguard investors’ legitimate rights and interests, the Shanghai Stock Exchange has also drafted the “Shanghai Stock Exchange Guidelines on the Content and Format of Periodic Reports for Asset-Backed Securities (Draft for Public Comment)” (hereinafter referred to as the “Draft”), and is now soliciting public feedback.

The China Banking Regulatory Commission has issued the “Guidelines on the Management of Conduct for Personnel of Banking Financial Institutions.”
To further standardize the conduct of employees at banking financial institutions and strengthen their behavioral oversight, the China Banking Regulatory Commission recently issued the “Guidelines on the Management of Employee Conduct at Banking Financial Institutions” (hereinafter referred to as the “Guidelines”).
The Guidelines comprise five chapters—General Provisions, the Governance Framework for Managing Staff Conduct, Institutional Framework for Managing Staff Conduct, Supervision of Staff Conduct Management, and Supplementary Provisions—totaling 28 articles. First, the Guidelines clarify the governance framework for managing staff conduct. They define the organizational structure for such management, delineate the responsibilities of the board of directors, the supervisory board, and senior management, and require banking financial institutions to designate a lead department and assign dedicated personnel to oversee staff conduct management. In addition, the Guidelines mandate that banking financial institutions establish a staff‑management information system to continuously collect relevant data on staff behavior. Second, the Guidelines standardize the institutional framework for managing staff conduct. They stipulate that staff‑conduct management must be risk‑based, with the institution adopting bank‑wide codes of conduct and business‑line‑specific behavioral guidelines. Staff are required to comply with laws and regulations, uphold professional discipline, and undergo training and education programs covering all employees. Furthermore, banking financial institutions are expected to conduct regular assessments of staff conduct, establish long-term monitoring mechanisms and ad hoc review procedures, promptly address any identified issues, evaluate candidates’ behavior relevant to their roles during recruitment, and use the results of these assessments as a key factor in determining compensation and career advancement. The Guidelines also call for the establishment of whistleblowing channels for reporting misconduct, thereby strengthening oversight and accountability. Third, the Guidelines reinforce regulatory oversight of staff conduct management. Banking financial institutions are required to submit their codes of conduct and assessment reports to the banking regulatory authority, which, in turn, is tasked with intensifying its evaluation, supervision, and information‑gathering efforts regarding staff‑conduct management at these institutions. For institutions that fail to meet the relevant requirements, the banking regulator may demand the formulation of remediation plans, impose deadlines for corrective action, and, depending on the circumstances, implement appropriate regulatory measures.

Commercial & Corporate
Trump imposes additional tariffs on $60 billion worth of Chinese imports.
At approximately 12:50 a.m. on March 23, U.S. President Donald Trump formally signed the trade memorandum on China at the White House. On the spot, Trump announced that he might impose additional tariffs on $60 billion worth of goods imported from China and impose restrictions on Chinese companies’ investments and mergers and acquisitions in the United States. Those attending the signing ceremony included U.S. Secretary of Commerce Wilbur Ross, U.S. Trade Representative Robert Lighthizer, Presidential Trade Advisor Peter Navarro, and others.
According to a White House press release, the United States will impose an additional 25% tariff on products in sectors such as aerospace, information and communication technology, and machinery. Earlier, China’s Ministry of Commerce stated that China would never stand by while its legitimate rights and interests are infringed upon and would take all necessary measures to officely safeguard its lawful rights and interests. Under the memorandum signed that day, the Office of the United States Trade Representative will, within 15 days, formulate a specific plan for imposing additional tariffs on Chinese goods. At the same time, the Office of the United States Trade Representative will also file a complaint with the World Trade Organization against China on the relevant issues. Furthermore, the U.S. Treasury Department will, within 60 days, introduce measures to restrict Chinese companies’ investments in and acquisitions of U.S. offices.

The Ministry of Human Resources and Social Security and the Ministry of Finance have issued the “Notice on Adjusting the Basic Pensions for Retirees in 2018.”
Recently, the Ministry of Human Resources and Social Security and the Ministry of Finance issued the “Notice on Adjusting Basic Pensions for Retirees in 2018.” The main contents of this adjustment are as follows:
Scope of adjustment: Retirees who had completed the prescribed retirement procedures and have been receiving their basic monthly pensions as of December 31, 2017.
Adjustment level. The overall adjustment level is set at approximately 5% of the average monthly basic pension per retiree in 2017.
Adjustment Measures. In this round of adjustments to basic pensions for retirees, the approach will continue to combine fixed‑amount adjustments, indexed adjustments, and appropriate targeted increases, thereby achieving broad consistency in the adjustment methods across enterprises, government agencies, and public institutions. Fixed‑amount adjustments shall reflect the principle of equity; indexed adjustments shall embody incentive mechanisms that reward longer contribution periods and higher contributions, and may be linked to factors such as an individual retiree’s years of contributions (or years of service) and their current basic pension level. For older retirees and those who retired from arduous and remote areas, the adjustment levels may be appropriately raised, while ensuring that the basic pensions of enterprise retirees who are former military personnel remain no lower than the local average for enterprise retirees. It is essential to balance equity with incentives by rationally determining the relative weights of the fixed‑amount component, the indexed component, and the targeted increase.

PwC launches blockchain audit services.
According to a report by The Wall Street Journal, PwC has officially launched blockchain audit services aimed at further encouraging the adoption of these emerging technologies. The office reportedly unveiled this new offering this Friday, March 16, enabling companies to conduct independent third-party reviews of their blockchain implementations, ensuring proper use of the technology and allowing employees to monitor the company’s blockchain transactions.
At present, some companies and organizations have concerns about the compliance, risk management, and internal controls associated with blockchain technology. Vicki Huff, head of PwC’s Global Innovation Practice, notes that many corporate compliance teams are unsure how to address blockchain technologies. PwC believes its newly launched services will help users adopt blockchain more confidently. Currently, two of PwC’s clients include a digital wallet office that is leveraging the service to validate transaction processing, and a major trading company that requires verification of blockchain‑based payments; PwC has declined to disclose further details about these clients.
A. Michael Smith is a partner at PwC, primarily responsible for internal audit solutions. In an interview with The Wall Street Journal, he stated that blockchain‑based auditing provides the necessary independent verification to ensure the technology functions as intended. Blockchain technology employs a decentralized digital ledger to maintain immutable transaction records. Although it has thus far been associated with cryptocurrencies, it can also be applied to online identity verification, supply chain management, and the auditing of financial transactions—particularly in the latter, where it can assume some of the auditor’s responsibilities.

The Ministry of Science and Technology has released the 2017 list of unicorns.
Recently, the Ministry of Science and Technology held a press conference in Conference Hall No. 5 of the Beijing International Convention Center, officially releasing the “2017 China Unicorn Enterprise Development Report” and the “2017 Zhongguancun Unicorn Enterprise Development Report.”
Ant Financial tops the list with a valuation of $75 billion, while Didi and Xiaomi rank second and third, respectively, at $56 billion and $46 billion. The other companies in the top ten are Alibaba Cloud, Meituan-Dianping, CATL, Toutiao, Cainiao Network, Lufax, and Jiedaibao.

Taxation TAXATATION
The Ministry of Finance and the State Taxation Administration have jointly issued the “Notice on Continuing to Support Relevant Stamp Duty Policies for the Restructuring and Reorganization of Enterprises and Public Institutions.”
Recently, the Ministry of Finance and the State Taxation Administration jointly issued the “Notice on Continuing to Support Relevant Stamp Tax Policies for the Restructuring and Reorganization of Enterprises and Public Institutions,” which continues to provide support for such restructuring and reorganization. The stamp tax policies applicable to these transactions will be implemented from January 1, 2018, through December 31, 2020.
Where an enterprise undergoes a comprehensive restructuring in accordance with the relevant provisions of the Company Law of the People’s Republic of China—such as converting a non‑corporate entity into a limited liability company or a joint-stock company, transforming a limited liability company into a joint-stock company, or converting a joint-stock company into a limited liability company—and provided that the original investors remain in place and hold more than 75% of the equity (shares) in the restructured (or altered) company, and that the restructured (or altered) company succeeds to the rights and obligations of the original enterprise, then the transfer of land and housing ownership from the original enterprise to the restructured (or altered) company shall be exempt from deed tax.
Where a public institution is restructured into an enterprise in accordance with relevant state regulations, and the original investor remains in existence and holds an equity or shareholding ratio exceeding 50% in the restructured enterprise, the transfer of land and housing ownership from the original public institution to the restructured enterprise shall be exempt from deed tax.
Where two or more companies merge into a single company in accordance with statutory provisions and contractual agreements, and the original investors remain in existence, the acquiring company shall be exempt from deed tax on the land and housing rights it assumes from the merging parties.
Where a company is split, in accordance with applicable laws and contractual provisions, into two or more companies that share the same investors as the original company, the transfer of land and housing ownership to the newly formed companies shall be exempt from deed tax.
Where an enterprise is subject to bankruptcy in accordance with applicable laws and regulations, the transfer of land and housing rights to creditors (including employees of the bankrupt enterprise) in satisfaction of debts shall be exempt from deed tax. For non‑creditors acquiring land and housing rights of a bankrupt enterprise, if they comply with the provisions of the Labor Law of the People’s Republic of China and other relevant national laws, regulations, and policies regarding the proper placement of all former employees of the enterprise, and enter into labor contracts with such employees for a term of no less than three years, the acquisition of the corresponding land and housing rights shall be exempt from deed tax. If such contracts are concluded with more than 30% of the former employees for a term of no less than three years, the deed tax shall be levied at half the standard rate.
Units that receive administrative adjustments or transfers of state‑owned land and property rights in accordance with the regulations of people’s governments at or above the county level or state‑asset management authorities are exempt from deed tax. Transfers of land and property rights among enterprises within the same investment entity— including between a parent company and its wholly owned subsidiary, between wholly owned subsidiaries of the same company, and between an individual and the sole proprietorship or single‑member limited liability company established by that individual—are also exempt from deed tax. When a parent company increases capital in its wholly owned subsidiary by transferring land and property rights, such transfer is treated as a transfer and is likewise exempt from deed tax.
For enterprises that have implemented debt-to-equity swaps with the approval of the State Council, the transfer of land and housing ownership from the original enterprise to the newly established company following the debt-to-equity conversion is exempt from deed tax.
Where land originally allocated to restructured or reorganized enterprises and public institutions is acquired through assignment or by way of state‑funded capital contribution (equity participation), such acquisition does not fall within the tax‑exempt scope set forth above, and the acquiring party shall be subject to deed tax in accordance with applicable regulations.
In equity (share) transfers, when entities or individuals acquire corporate equity (shares), the ownership of the company’s land and buildings remains unchanged, and no deed tax is levied.

The Ministry of Finance, the State Taxation Administration, and the China Securities Regulatory Commission have jointly issued the “Notice on Tax Policies Supporting the Opening-Up of the Crude Oil and Other Commodity Futures Markets.”
Recently, the Ministry of Finance, the State Taxation Administration, and the China Securities Regulatory Commission jointly issued the “Notice on Tax Policies Supporting the Opening-Up of the Crude Oil and Other Commodity Futures Markets.” The key provisions are as follows: First, for overseas institutional investors—including overseas brokerage offices—that have neither established any institutions or places of business within China, nor, even if they have such institutions or places of business, have income that is not effectively connected with those entities, income derived from engaging in crude oil futures trading within China (excluding income from physical delivery) shall be temporarily exempt from corporate income tax. Second, commission income earned by overseas brokerage offices for providing brokerage services related to Chinese‑domestic crude oil futures to overseas investors outside China does not constitute labor income sourced within China and is therefore not subject to corporate income tax.
II. Effective from the date on which crude oil futures are opened to foreign investors, income derived by overseas individual investors from investing in China‑domestic crude oil futures shall be exempt from personal income tax for a period of three years.

LITIGATION & ARBITRATION
The Ministry of Land and Resources has issued the Interim Measures for the Inquiry of Real Estate Registration Records.
On the 20th, the Ministry of Land and Resources issued the Interim Measures for the Inquiry of Real Estate Registration Records (hereinafter referred to as the “Measures”). The Measures further refine the categories of legally authorized inquiry subjects, clarifying who is entitled to make inquiries; they also, for the first time, define the concept of “interested parties,” specifying which interested parties may access the records and to what extent.
According to the Measures, real estate right holders and interested parties may inquire into the specific location of the real estate; the real estate ownership certificate number; and the real estate unit number. The Measures are primarily intended to regulate individual citizens’ inquiry activities and to provide public access to such information. She added that procedures for state organs to access and copy real estate registration records, as well as mechanisms for sharing real estate registration information among state organs, shall be governed by separate regulations. Real estate right holders and other relevant parties may make inquiries in accordance with the Property Law and the Provisional Regulations on Real Estate Registration; right holders and interested parties may apply to access and copy real estate registration records, and the registration authority is required to provide such access.
According to the Measures, real estate right holders, interested parties, and their authorized lawyers or other agents may access and copy real estate registration records. Additionally, entities legally empowered to manage and dispose of real estate rights—such as liquidation committees, bankruptcy administrators, property custodians, and guardians—may likewise access such records by analogy with the provisions governing access by right holders.

The Supreme People’s Court and the China Banking Regulatory Commission Strengthen Credit-Based Penalties
The Supreme People’s Court and the China Banking Regulatory Commission recently issued the “Notice on Further Advancing Online Enforcement Inquiry and Control Work” (hereinafter referred to as the “Notice”), requiring 21 banks to launch online bank‑deposit freezing and online deduction functions by the end of this month, with other local institutions mandated to implement these capabilities by the end of April. In addition, the Notice stipulates that commercial banks must also roll out online freezing of financial wealth‑management products within the prescribed timeframe.
The Notice requires that banking financial institutions shall support both full and partial deductions of bank deposits that are under online freezing. Following the launch of the online deduction function, funds subject to online freezing should, in principle, be deducted online. When a people’s court conducts an online deduction of the judgment debtor’s bank deposits, it must first impose an online freeze; the funds deducted online shall be remitted to the people’s court’s special account for enforcement funds or to the case‑specific funds account. After imposing an online freeze on the judgment debtor’s funds, the people’s court shall promptly notify the judgment debtor.

Other
Lift restrictions on foreign investment access to payment institutions and promote the establishment of a new landscape of comprehensive opening-up in the payment services market.
To thoroughly implement the spirit of the 19th National Congress of the Communist Party of China and the Fifth National Financial Work Conference, to expand financial opening-up, and to promote the sound development of the payment services market, with the approval of the State Council, the People’s Bank of China has issued the “People’s Bank of China Announcement [2018] No. 7” (hereinafter referred to as the “Announcement”), which clarifies the access and regulatory policies for foreign-invested payment institutions.
The Announcement has lifted restrictions on foreign investment in payment institutions, clarified the admission criteria and regulatory requirements, and will help foster new competitive advantages driven by innovation, further optimize the industrial structure, and enhance the level of competition in China’s payment services market, thereby contributing to the establishment of a new pattern of comprehensive opening-up. Adhering to the principles of encouraging fair competition, promoting market openness, mitigating business risks, and safeguarding information security, the Announcement sets forth requirements for foreign‑invested payment institutions in areas such as commercial presence, business systems, and information protection, while granting them full national treatment, thus further improving the regulatory framework for non‑bank payment institutions. Together with the Measures for the Administration of Payment Services Provided by Non‑Financial Institutions (Order No. 2 of 2010 issued by the People’s Bank of China), the Announcement will form the regulatory framework governing both domestic and foreign‑invested payment institutions.

An official from the Department of Treaty and Law of the Ministry of Commerce issued a statement regarding the United States’ referral of China’s measures on technology licensing conditions to the WTO dispute settlement mechanism.
On March 23, the United States submitted a request for consultations to China under the WTO Dispute Settlement Mechanism, alleging that certain Chinese government measures concerning technology licensing conditions are inconsistent with the relevant provisions of the Agreement on Trade-Related Aspects of Intellectual Property Rights. A spokesperson from the Department of Treaty and Law of the Ministry of Commerce issued a statement on this matter.
The Chinese side has received the United States’ request for consultations. The Chinese government has consistently attached great importance to intellectual property protection and has implemented numerous robust measures to safeguard the legitimate rights and interests of both domestic and foreign IP holders, with achievements that are widely recognized. China has always respected WTO rules and upheld the multilateral trading system. China expresses regret over the U.S. request for consultations on this matter and will handle it appropriately in accordance with the WTO’s dispute settlement procedures.

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