JC Master Legal News Issue 1163

Key Takeaways for This Issue

The Work Guidelines for Audit Committees of Listed Companies Have Been Issued by the China Association of Public Companies.

On June 6, the China Association of Public Companies issued the “Guidelines for the Work of Audit Committees of Listed Companies,” which took effect on the same day. 
The State-owned Assets Supervision and Administration Commission of the State Council has issued the Measures for the Administration of Development Planning of Central Enterprises.

Recently, the State-owned Assets Supervision and Administration Commission of the State Council issued the Measures for the Administration of Development Plans of Central Enterprises, aiming to establish a comprehensive planning management system that covers the entire process, enables monitoring, and supports evaluation by strengthening top-level design, standardizing procedures, reinforcing implementation, and coordinating inter‑agency efforts. 
The Supreme People’s Procuratorate has released typical cases of public interest litigation in the field of ecological environment and resource protection.

On June 5, the Supreme People’s Procuratorate released a batch of typical cases involving public-interest litigation in the field of ecological environment and resource protection, aiming to guide procuratorial organs at all levels in implementing work requirements that prioritize litigability to ensure precision and standardization, thereby advancing a comprehensive green transformation of economic and social development.

Finance & Capital Markets 
Guidelines for the Work of Audit Committees of Listed Companies Issued

On June 6, the China Association of Public Companies announced that it has formulated and issued the “Guidelines for the Work of Audit Committees of Listed Companies,” which took effect on the same day. 
Following the implementation of the “Work Guidelines,” which are to be used in conjunction with the “Guidelines for the Performance of Duties by Independent Directors of Listed Companies,” this framework will more effectively translate the requirements of the independent director system reform at the self-regulatory level and facilitate closer alignment between listed companies’ practices and the latest statutory mandates governing audit committees.

Commercial & Corporate 
MIIT: Focus on fostering leading AI enterprises and strengthening fiscal and tax policy support.

According to a June 4 announcement on the website of the Ministry of Industry and Information Technology, Minister Li Lecheng chaired a meeting on June 3 to discuss strategies and measures for advancing the development of the artificial intelligence industry and leveraging it to drive a new wave of industrialization. 
The meeting emphasized the need to strengthen computing power supply, coordinate the development of general-purpose large models and industry-specific large models, accelerate the creation of high-quality industry‑specific datasets, and enhance the intelligence level of key products and equipment. It also called for promoting the deployment of large models across priority sectors of the manufacturing industry, fostering a cohort of AI‑enabled application service providers, and speeding up the practical implementation and iterative upgrades of industry‑specific large models. Furthermore, efforts should focus on cultivating leading AI enterprises and supporting the specialized, refined, distinctive, and innovative development of small and medium‑sized AI firms. In addition, fiscal and tax policies will be strengthened to encourage greater investment from social capital, and measures for managing AI‑related scientific and ethical issues will be expedited to guide the industry toward healthy, orderly growth.

The Ministry of Commerce has issued the “Statistical Survey System for Service Outsourcing.”

On June 6, the website of the Ministry of Commerce issued the “Notice on the Issuance of the Statistical Survey System for Service Outsourcing.” 
The notice specifies that the statistical subjects include service‑outsourcing demonstration cities recognized by the State Council, Chinese enterprises engaged in service‑outsourcing activities, and relevant training institutions. The scope of the statistics covers offshore, onshore, and overseas service outsourcing. The survey items encompass basic enterprise information, contract and agreement details and implementation status, changes in human resources, international certifications, and other relevant data. Enterprises are required to submit monthly and annual reports, while local commerce authorities are responsible for reviewing and forwarding the data. The Ministry of Commerce underscores the importance of data quality control, mandating the truthful, accurate, and complete provision of statistical information and firmly opposing any falsification of statistical data.

The State-owned Assets Supervision and Administration Commission of the State Council has issued the Measures for the Administration of Development Planning of Central Enterprises.

Recently, the State-owned Assets Supervision and Administration Commission of the State Council issued the Measures for the Administration of Development Plans of Central Enterprises, aiming to establish a comprehensive planning management system that covers the entire process, enables monitoring, and supports evaluation by strengthening top-level design, standardizing procedures, reinforcing implementation, and coordinating inter‑agency efforts. 
A development plan refers to the directional and comprehensive strategic blueprint that central enterprises formulate for their future development over a specified period, based on an analysis of the macro environment, their current internal conditions, and emerging trends. It emphasizes strategic and holistic arrangements aimed at optimizing industrial layout and restructuring, serving as the enterprise’s guiding framework for long-term growth.

Taxation TAXATATION

The State Taxation Administration has released the latest tax data related to the private sector.

On June 3, the General Office of the State Taxation Administration released the latest tax data, showing that in the first four months of 2025, taxpayers in the private sector—including private enterprises and individual business households—benefited from major tax and fee reduction measures and tax refunds totaling RMB 351.88 billion, accounting for 64.6% of the total. This underscores that the private sector is the primary beneficiary of tax and fee preferential policies. 
First, the development trend remains stable and improving. According to VAT invoice data, in the first four months of 2025, sales revenue of the private sector increased by 3.6% year on year, 0.9 percentage points higher than that of enterprises nationwide, accounting for 71.3% of total national enterprise sales revenue. 
Second, employment absorption has been steadily increasing. According to tax data, as of the end of April 2025, the number of employees in the private sector contributing to pension insurance accounted for 79.4% of all enterprise employees making such contributions, up 0.2 percentage points from the same period last year. The number of contributors grew by 0.9% year on year, 0.2 percentage points higher than the average growth rate across all enterprises. 
Third, newly established business entities continue to grow. Tax data show that as of the end of April 2025, the number of tax‑paying private‑sector enterprises nationwide increased by 7.6% year on year, accounting for 97.6% of all tax‑paying business entities in the country.

The formulation of the Implementing Regulations of the Value-Added Tax Law has been included in the Ministry of Finance’s 2025 legislative plan.

On June 6, the Ministry of Finance announced its legislative work plan for 2025, which covers two main areas. 
First, we will advance the drafting of laws and administrative regulations, including the revised Law on Asset Evaluation, the revised Budget Law, the draft Regulations for the Implementation of the Value-Added Tax Law, and the revised Regulations on Penalties and Disciplinary Measures for Fiscal Violations.

Second, research and formulate or revise a series of fiscal regulations, including the Measures for the Administration of Domestic Investments by the National Social Security Fund, the General Provisions on Corporate Finance, the Interim Measures for the Supervision and Administration of State‑Owned Asset Appraisals in Financial Enterprises, the Measures for the Administration of the Transfer of State‑Owned Assets in Financial Enterprises, the Standards for Basic Accounting Work, the Measures for the Administration of Agency Bookkeeping, and the Measures for the Handling of Violations in the National Uniform Examination for Certified Public Accountants.

LITIGATION & ARBITRATION

The Supreme People’s Procuratorate has released typical cases of public interest litigation in the field of ecological environment and resource protection.

On June 5, the Supreme People’s Procuratorate released a batch of typical cases involving public-interest litigation in the field of ecological environment and resource protection, aiming to guide procuratorial organs at all levels in implementing work requirements that prioritize litigability to ensure precision and standardization, thereby advancing a comprehensive green transformation of economic and social development. 
The cases released this time comprise 10 representative instances, covering areas such as water pollution, solid and hazardous waste contamination, and soil pollution prevention and control. Among them, the procuratorial organs of Jiaxing, Zhejiang, pursued relevant liabilities through civil public-interest litigation in response to illegal cross‑regional dumping of hazardous waste in the Yangtze River Delta; meanwhile, the Xi’an Railway Transport Branch of the Shaanxi Provincial People’s Procuratorate held parties accountable for ecological and environmental damage by enforcing compensation obligations in cases involving unauthorized crossings of the Qinling Mountains’ core protection zone. The Supreme People’s Procuratorate emphasized that procuratorial organs will continue to intensify their efforts in handling such cases, support the building of a Beautiful China, and promote long-term, effective governance of the ecological environment.

The Supreme People’s Court has released the 2024 Annual Report on Environmental and Resource Adjudication in China and the Report on Judicial Development.

On June 5, the Supreme People’s Court released “China Environmental and Resource Adjudication (2024)” and “China Environmental Justice Development Report (2024).” 
In 2024, the Environmental and Resource Adjudication Tribunal of the Supreme People’s Court marked its 10th anniversary, having concluded 219,000 first-instance environmental and resource cases: 26,000 criminal cases, 151,000 civil cases, and 42,000 administrative cases. It also handled 4,168 public-interest litigation cases and 246 ecological‑environmental damage compensation cases, with awarded damages totaling RMB 9.6 billion. To advance the green transformation of the economy and society, the tribunal adjudicated 60,400 cases involving illegal mining and other related offenses. Strengthening judicial protection of ecosystems, it resolved 26,000 cases involving unauthorized logging and similar violations. Furthermore, 2,424 specialized environmental and resource tribunals have been established, bolstering the professionalization of environmental justice.

The Supreme People’s Court has released the 2024 National Maritime Adjudication Typical Cases.

On June 6, the Supreme People’s Court released six typical cases from the 2024 national maritime adjudication, highlighting the crucial role of maritime justice in resolving international maritime disputes, upholding maritime shipping order, and fostering the development of the marine economy. 
Among them, Case Four accurately delineates the rights and responsibilities of all parties involved in an incident where a vessel struck an undersea pipeline, thereby providing equal legal protection to the legitimate rights and interests of oil and gas companies, shipping enterprises, and the insurance industry, ensuring the safety and stability of energy transportation, and fully demonstrating maritime judicial support for the development of marine‑based pillar industries and emerging sectors. Case Five, in accordance with the law, upholds public interest litigation brought by the procuratorial organs concerning marine natural resources and the ecological environment, holding defendants who illegally mined, transported, and acquired sea sand liable for torts, thus serving as a warning and deterrent to unlawful conduct and providing robust judicial support for safeguarding the marine ecological environment and promoting the scientific exploration and sustainable utilization of marine resources.