JC Master Legal News Issue 816

Key Takeaways for This Issue
The Shenzhen Stock Exchange has issued the “Guidelines on Information Disclosure for Listed Company Acquisitions and Changes in Shareholdings (Draft for Comments).”
To further standardize the information disclosure practices of investors and their concerted actors in listed-company acquisitions and related changes in shareholdings, the Shenzhen Stock Exchange recently drafted the “Guidelines on Information Disclosure for Listed-Company Acquisitions and Changes in Shareholdings (Draft for Public Comment)” and has made it available for public consultation. The Guidelines specify the particular circumstances, timing, and content required for disclosing preliminary announcements, reports on changes in equity interests, acquisition reports, and other relevant documents.
The Cyberspace Administration of China and the China Securities Regulatory Commission recently jointly issued the “Guiding Opinions on Promoting the Capital Market’s Role in Building a Cyberpower.”
Recently, the Cyberspace Administration of China and the China Securities Regulatory Commission jointly issued the “Guiding Opinions on Promoting the Capital Market’s Support for Building a Cyberpower” (hereinafter referred to as the “Opinions”). The overall requirements of the Opinions are to foster coordinated development between the cyberspace sector and the capital market, safeguard national cybersecurity and financial security, and enhance synergy between cyberspace governance and securities regulation.
Five departments have issued the “Notice on Launching a Pilot Program for Individually Funded, Tax-Deferred Commercial Pension Insurance.”
Recently, the Ministry of Finance, the State Taxation Administration, the Ministry of Human Resources and Social Security, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission jointly issued a notice on launching a pilot program for individually funded, tax-deferred commercial pension insurance. Under the pilot scheme, contributions made by individuals in designated regions to eligible commercial pension insurance products through their personal commercial pension accounts will be deductible from taxable income up to a specified limit; investment income credited to these personal commercial pension accounts will be temporarily exempt from individual income tax; and individual income tax will be levied only when the individual begins receiving commercial pension benefits.
The National Courts’ Information Network for Achieving a Decisive Victory in “Fundamentally Resolving Difficulties in Enforcement” Has Officially Launched and Is Now Operational.
Recently, the national court information network dedicated to achieving a decisive victory in “fundamentally resolving difficulties in enforcement” has officially gone live. Zhou Qiang emphasized the need to strengthen the website’s development and application, fully leveraging its role as a key platform to foster a favorable environment and provide robust support for courts nationwide in their efforts to decisively overcome these challenges.
The CPC Central Committee and the State Council have issued the “Guiding Opinions on Supporting Hainan’s Comprehensive Deepening of Reform and Opening-Up.”
On the 14th, the “Guiding Opinions of the CPC Central Committee and the State Council on Supporting Hainan’s Comprehensive Deepening of Reform and Opening-Up” were officially released. The document assigns the Hainan Economic Special Zone new, significant responsibilities and a mission in the cause of reform and opening-up, injecting strong momentum into Hainan’s efforts to deepen reform and opening-up, and helping the province become a new benchmark for comprehensively deepening reform and opening-up in the new era, thus forging a new pattern of higher‑level reform and opening-up.

Table of Contents
Table of Contents

Finance & Capital Markets
The Shenzhen Stock Exchange has issued the “Guidelines on Information Disclosure for Listed Company Acquisitions and Changes in Shareholdings (Draft for Comments).”
The Shanghai Stock Exchange has drafted the “Shanghai Stock Exchange Guidelines on Information Disclosure for Listed Company Acquisitions and Changes in Shareholdings (Draft for Comments).”
The General Office of the State Council has issued the “Opinions on Comprehensively Promoting Comprehensive Financial Statistics.”
The China Banking and Insurance Regulatory Commission has issued the “Notice on the Issuance of Four Supporting Regulations for the Regulations on the Supervision and Administration of Financing Guarantee Companies.”

Corporate & Commercial
The Cyberspace Administration of China and the China Securities Regulatory Commission recently jointly issued the “Guiding Opinions on Promoting Capital Market Services for Building a Cyberpower.”
Six departments jointly issued the “Opinions on Guiding the Healthy Development of Overseas Investment and Financing Funds.”
The State Council Executive Meeting approved measures to develop “Internet Plus Healthcare,” among other initiatives.
The Asset Management Association of China has issued an announcement stating that it will no longer accept legal opinions on private fund manager registration issued by Jiangsu Dongfang Zhiguang Law Office and two other law offices.

Taxation
Five departments have issued the “Notice on Launching a Pilot Program for Individually Funded, Tax-Deferred Commercial Pension Insurance.”
The State Taxation Administration has issued the “Regulations on the Collection and Administration of the Resource Tax.”

Litigation & Arbitration
The National Courts’ Information Network for Achieving a Decisive Victory in “Fundamentally Resolving Difficulties in Enforcement” Has Officially Launched and Is Now Operational.
The Supreme People’s Court and the All-China Federation of Returned Overseas Chinese have jointly issued the “Opinions on Launching a Pilot Program for the Diversified Resolution of Disputes Involving Overseas Chinese in Certain Regions.”

Other
The CPC Central Committee and the State Council have issued the “Guiding Opinions on Supporting Hainan’s Comprehensive Deepening of Reform and Opening-Up.”
Four ministries and commissions have jointly launched a special campaign to crack down on tax fraud and the issuance of false invoices.

Finance & Capital Markets
The Shenzhen Stock Exchange has issued the “Guidelines on Information Disclosure for Listed Company Acquisitions and Changes in Shareholdings (Draft for Comments).”
To further standardize the information disclosure practices of investors and their concerted actors in listed-company acquisitions and related changes in shareholdings, the Shenzhen Stock Exchange recently drafted the “Guidelines on Information Disclosure for Listed-Company Acquisitions and Changes in Shareholdings (Draft for Public Comment)” and has made it available for public consultation. The Guidelines specify the particular circumstances, timing, and content required for disclosing preliminary announcements, reports on changes in equity interests, acquisition reports, and other relevant documents.
穿透式 disclosure and deconstruction of leverage levels. The Guidelines stipulate that, for shareholders required to disclose information in documents such as reports on changes in equity interests and acquisition reports, two‑tiered穿透 disclosure is mandated: first, a detailed breakdown of the sources of funds, extending down to self‑funded capital, bank loans, or funds raised through public mutual funds; second, a comprehensive disclosure of the ownership structure, tracing back to individual natural persons, state‑owned asset management authorities, or any agreements or arrangements entered into among shareholders.
Continuous disclosure ensures the timely transmission of dynamic information. The Guidelines have strengthened continuous disclosure requirements from multiple perspectives and angles: first, while not triggering the reporting and announcement obligations under the Measures for the Administration of Takeovers of Listed Companies, they address key identities, critical milestones, and significant changes in acquisition and equity‑interest‑alteration activities, thereby standardizing ten categories of situations requiring indicative announcements; second, the equity interests held by the largest shareholder in a listed company’s periodic reports are disclosed on a consolidated basis, increasing the frequency with which the market can access the true shareholding structure of the largest shareholder; third, for entities that become the largest shareholder, controlling shareholder, or de facto controller of a listed company—or act in concert with such parties—through financial products, partnerships, or other vehicles, the Guidelines, taking into account characteristics such as leverage and maturity, mandate subsequent disclosures of any matters that may affect the stability of their shareholdings.
Commitment‑based disclosure to ensure accountability. To clarify market expectations, the Guidelines strengthen commitment‑based regulation, requiring investors to disclose the specific details of the aforementioned plans in the form of a written commitment. For instance, if an investor states that it has no plans to make adjustments to the listed company, it must commit not to alter the company’s assets or business within a specified future period and may not use vague terms such as “currently none” or “not ruled out.”

The Shanghai Stock Exchange has drafted the “Shanghai Stock Exchange Guidelines on Information Disclosure for Listed Company Acquisitions and Changes in Shareholdings (Draft for Comments).”
Recently, the Shanghai Stock Exchange has drafted the “Shanghai Stock Exchange Guidelines on Information Disclosure for Listed Company Acquisitions and Changes in Shareholdings (Draft for Public Comment)” and has made it available to the market for public consultation.
According to the relevant officials at the Shanghai Stock Exchange, in response to the salient issues currently existing in the disclosure of information on share acquisitions and substantial changes in equity interests, regulatory measures have been introduced across seven key areas: First, the reporting threshold for disclosing changes in significant shareholdings has been lowered from every 5% to every 1%; second, the largest shareholder whose stake falls short of 5% has been brought within the scope of information‑disclosure obligations; third, disclosure requirements have been expanded to cover shareholding changes involving both parties in contests for control; fourth, a requirement for “look‑through” disclosure has been added; fifth, clear criteria for determining the attribution of equity interests in asset‑management products and principles for consolidation have been established; sixth, commitments related to share‑increase plans and restructuring plans, as well as their implementation, have been explicitly defined; and seventh, the signing and performance of agreements on concerted action and voting‑right delegation have been further standardized.
“The issuance of dedicated information-disclosure guidelines stems from four key considerations,” the official explained. First, to promptly address the most salient issues in the disclosure of information related to acquisitions and changes in shareholdings; second, to effectively mitigate market risks that may arise from acquisitions and substantial changes in equity interests; third, to align with the requirements of the Shanghai–Hong Kong Stock Connect trading mechanism; and fourth, to strengthen the exchange’s frontline oversight of disclosure practices for acquisitions and significant equity‑interest transactions.

The General Office of the State Council has issued the “Opinions on Comprehensively Promoting Comprehensive Financial Statistics.”
Recently, the General Office of the State Council officially issued the “Opinions of the General Office of the State Council on Comprehensively Promoting Comprehensive Financial Statistics” (hereinafter referred to as the “Opinions”). The document establishes a working mechanism characterized by “unified standards, simultaneous data collection, centralized validation, and aggregated sharing,” ensuring that comprehensive financial statistics not only achieve quantitative growth but also undergo a qualitative leap—this constitutes the key highlight of the Opinions.
“Unified standards” are the prerequisite for advancing all aspects of work. By establishing a comprehensive statistical standards framework for the financial sector, we will develop uniform standards for basic statistical elements, clearly define classification, definitions, and coding rules, and thereby form a foundational statistical standard set. When new statistical standards are introduced by various entities, they must be aligned with these foundational standards; existing standards should be reviewed, with those that can be harmonized directly integrated, while those that cannot yet be aligned will be granted a two-year transition period during which alignment is to be achieved, ensuring a smooth transition of statistical standards and related systems. “Synchronous data collection” marks the starting point of the production process for comprehensive financial statistics. For newly established statistics, the People’s Bank of China and other financial regulatory authorities will conduct direct, synchronized data collection; for existing statistics, the People’s Bank of China will coordinate and aggregate the relevant data. “Centralized validation” aims to establish logical correspondences among data from different sources. This is both a critical step in ensuring data quality and an important tool for monitoring the interconnections and nested relationships within financial activities. “Aggregated sharing” refers to the arrangements governing the generation and utilization of comprehensive financial statistics. Key components include the unified formulation and maintenance of data aggregation rules, the standardized development and management of a comprehensive statistical reporting system for the financial sector, and the establishment of a mechanism for full‑scale data sharing among national financial regulatory authorities, thereby reducing the costs of statistical monitoring.
To achieve this objective, comprehensive financial statistics must ensure “full coverage.” First, full coverage of entities—encompassing all financial institutions, financial infrastructures, and financial activities. Second, full coverage of business operations—spanning the entire chain of financial transactions, linking each transaction upstream to its ultimate funding source and downstream to its final user, while closely monitoring emerging financial models and new products and incorporating them into statistical surveillance as appropriate. Third, full coverage of content—distinguishing between aggregate totals and structural breakdowns, integrating both quantitative and price-based metrics, and giving equal weight to stock and flow data, thereby providing comprehensive and reliable information from multiple perspectives.

The China Banking and Insurance Regulatory Commission has issued the “Notice on the Issuance of Four Supporting Regulations for the Regulations on the Supervision and Administration of Financing Guarantee Companies.”
China Securities News reports that the China Banking and Insurance Regulatory Commission recently issued Document No. 1—“Notice on the Issuance of Four Supporting Regulations to the Regulations on the Supervision and Administration of Financing Guarantee Companies” (hereinafter referred to as the “Notice”). In accordance with the relevant provisions of the Regulations on the Supervision and Administration of Financing Guarantee Companies (hereinafter referred to as the “Regulations”), the China Banking and Insurance Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Agriculture and Rural Affairs, the People’s Bank of China, the State Administration for Market Regulation, and other member units of the Inter-Ministerial Joint Conference on the Supervision of Financing Guarantee Business, has formulated the Measures for the Administration of Operating Licenses for Financing Guarantee Business, the Measures for the Calculation of the Outstanding Balance of Financing Guarantee Liabilities, the Measures for the Administration of Asset Ratios of Financing Guarantee Companies, and the Guidelines for Business Cooperation between Banking Financial Institutions and Financing Guarantee Companies (hereinafter collectively referred to as the “Four Supporting Regulations”).
Among these, the Measures for the Administration of Financing Guarantee Business Operating Licenses aim to standardize the supervision and administration of such licenses by regulatory authorities, promote law-based operations by financing guarantee companies, and uphold order in the financing guarantee market. The CBIRC stated that, with respect to the renewal of financing guarantee business operating licenses, localities may implement this process based on their specific circumstances, following the completion of unified centralized management of local financial activities. The Measures for the Calculation of Financing Guarantee Liability Balances seek to regulate the business operations of financing guarantee companies, mitigate risks associated with financing guarantee activities, and ensure accurate measurement of liability balances. According to the CBIRC, for guarantee‑fund‑backed guarantee business concluded prior to the entry into force of the Regulations, existing outstanding obligations need not be included in the financing guarantee liability balance; however, they must be separately disclosed and reported to the supervisory authorities. The Measures for the Administration of Asset Ratios of Financing Guarantee Companies are designed to guide financing guarantee companies to focus on their core business and operate prudently, ensuring adequate indemnification capacity while prioritizing asset liquidity and safety. The issuance of the Guidelines on Business Cooperation between Banking Financial Institutions and Financing Guarantee Companies aims to standardize the conduct of such cooperation—hereinafter referred to as “bank–guarantee cooperation”—safeguard the legitimate rights and interests of both parties, foster the sound development of bank–guarantee partnerships, and better support the growth of small and micro enterprises and the development of agriculture, rural areas, and farmers.

Commercial & Corporate
The Cyberspace Administration of China and the China Securities Regulatory Commission recently jointly issued the “Guiding Opinions on Promoting the Capital Market’s Role in Building a Cyberpower.”
Recently, the Cyberspace Administration of China and the China Securities Regulatory Commission jointly issued the “Guiding Opinions on Promoting the Capital Market’s Support for Building a Cyberpower” (hereinafter referred to as the “Opinions”). The overall objective of the Opinions is to foster synergistic development between cyberspace affairs and the capital market, safeguard national cybersecurity and financial security, and enhance coordination between cyberspace governance and securities regulation. With regard to specific measures, the Opinions propose:
First, strengthen policy guidance to promote the sound and compliant development of cyberspace‑related enterprises. Support these enterprises in serving national strategic priorities, and guide them to align their development paths with the goals of building a cyber power. Enhance their level of standardized operations and the quality of information disclosure, and ensure they comply with national laws and regulations, industry norms, and business standards, while establishing robust corporate governance frameworks and comprehensive internal control systems. Furthermore, guide these enterprises in raising their awareness of network and information security, putting in place sound safeguards, and safeguarding national sovereignty, security, and development interests in cyberspace, as well as ensuring the security of personal information and critical data.
Second, we will fully leverage the role of the capital markets to accelerate the growth of cyberspace and information technology enterprises. We will support eligible companies in these sectors to grow stronger and larger by tapping into a multi-tiered capital market system, including the Main Board, the SME Board, the ChiNext Board, the New Third Board, regional equity markets, and the bond market. We will encourage such enterprises to enhance their industrial value chains through mergers and acquisitions, introduce and assimilate advanced foreign technologies, participate in global resource integration, and bolster their technological innovation and competitive edge. We will foster a market environment that facilitates the participation of diverse investors and provide capital support to cyberspace and information technology offices at different stages of development. Moreover, we will maximize the positive contributions of sponsoring institutions, financial advisors, law offices, and accounting offices.
Third, strengthen organizational support. The Cyberspace Administration of China and the China Securities Regulatory Commission will establish and improve a coordination mechanism, enhance communication, and actively promote information sharing. They will fully leverage the roles of government bodies, industry associations, research institutions, and enterprises to build specialized platforms for investment and financing services. Furthermore, they will intensify policy research and public outreach, harness the expertise of cybersecurity and investment‑financing professionals, examine emerging trends and challenges in connecting cybersecurity offices with capital markets, and advance pilot initiatives to test capital market reform policies within the cybersecurity sector.

Six departments jointly issued the “Opinions on Guiding the Healthy Development of Overseas Investment and Financing Funds.”
On April 10, 2018, the National Development and Reform Commission, the Ministry of Finance, the Ministry of Commerce, the People’s Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission jointly issued the “Opinions on Guiding the Healthy Development of Outbound Investment and Financing Funds” (hereinafter referred to as the “Opinions”). The main contents of the Opinions are as follows:
With regard to optimizing fundraising mechanisms, the Opinions put forward specific recommendations on broadening channels for private‑sector participation, supporting domestic institutions in contributing capital, and strengthening cooperation with international financial institutions. In particular, adhering to the principle of tailored measures, the Opinions set out clear requirements for sovereign wealth funds, commercial financial institutions, and development‑oriented policy banks to participate in overseas investment‑financing funds, guiding domestic entities to conduct cross‑border investment and financing activities through such funds in compliance with laws and regulations. At the same time, the Opinions prohibit the use of credit funds or other improper means for capital contributions, and stipulate that local governments at all levels may not establish overseas investment‑financing funds using fiscal funds, thereby clarifying the sources of funding for these funds, better guiding the allocation and use of local fiscal resources, and enhancing the standardization of capital participation in such funds. To improve operational efficiency, the Opinions emphasize promoting innovation in fund‑related business, encouraging operations aligned with policy priorities, and elevating the level of professional management. With respect to refining the regulatory framework, the Opinions focus on strengthening overall coordination, improving regulatory systems, and establishing sound incentive and disciplinary mechanisms. Finally, to bolster service support, the Opinions underscore the importance of fully leveraging the role of third‑party institutions, vigorously cultivating management talent, and effectively implementing risk‑prevention measures.

The State Council Executive Meeting approved measures to develop “Internet Plus Healthcare,” among other initiatives.
On April 12, Premier Li Keqiang of the State Council presided over an executive meeting of the State Council, where measures to develop “Internet Plus Healthcare” were adopted to alleviate difficulties in accessing medical care and improve public health; it was also decided to impose zero tariffs on imported anti-cancer drugs and encourage the import of innovative medicines, thereby responding to public expectations and enabling more patients to benefit. In addition, plans were laid out to comprehensively strengthen the development of small rural schools and boarding schools in townships, ensuring that rural children have access to equitable, high-quality compulsory education.
The meeting noted that, in accordance with the arrangements of the CPC Central Committee and the State Council, accelerating the development of “Internet Plus Healthcare” can enhance the efficiency of medical services, reduce patients’ travel burdens, improve convenience, and enable more people to access high-quality healthcare resources. The meeting decided on the following measures: First, expedite the widespread provision of online services—such as appointment-based consultations and access to laboratory and examination results—at hospitals at or above the secondary level; and permit medical institutions to offer internet-based services for follow-up visits related to common and chronic conditions. Second, extend telemedicine coverage to all medical consortiums and county-level hospitals nationwide, and facilitate the alignment of high-quality medical resources from eastern regions with the needs of central and western areas. Support the deployment of high-speed broadband networks in both urban and rural medical institutions, and establish dedicated internet lines to ensure the requirements of telemedicine. Third, explore mechanisms for sharing prescription data between medical institutions and retail pharmacy information; implement intelligent medical insurance reviews and “one-stop” settlement; and refine the standards framework for “Internet Plus Healthcare,” accelerate information interoperability and sharing, and strengthen oversight of medical quality and cybersecurity safeguards.

The Asset Management Association of China has issued an announcement stating that it will no longer accept legal opinions on private fund manager registration issued by Jiangsu Dongfang Zhiguang Law Office and two other law offices.
Recently, the Asset Management Association of China issued the “Announcement on No Longer Accepting Legal Opinions on Private Fund Manager Registration Issued by Jiangsu Dongfang Zhiguang Law Office and Two Other Law Offices” (hereinafter referred to as the “Announcement”). The Announcement states: On June 21, 2016, Jiangsu Dongfang Zhiguang Law Office issued a legal opinion for Zhongyuan Chengxin (Beijing) Asset Management Co., Ltd., with lawyers Fan Qiaoyun and Liu Dongxia signing it. On November 6, 2017, Zhongyuan Chengxin was delisted from the private fund manager registry by our association due to being unreachable. On July 12, 2016, Beijing Tongshuo Law Office issued a legal opinion for Kanghan Investment Management (Beijing) Co., Ltd., signed by lawyers Lin Hualeng and Sun Qinliang. On January 29, 2018, Kanghan Investment was delisted from the private fund manager registry by our association for allegedly illegally absorbing public deposits and remaining out of contact. On June 14, 2016, Guangdong Jiadexin Law Office issued a legal opinion for Shenzhen Enli Jichang Fund Management Co., Ltd., signed by lawyers Min Qishuang and Liu Zhongliang. Enli Jichang had previously been accused of submitting false materials during its private fund manager registration process.
To further verify the authenticity, accuracy, and completeness of the registration and filing information for the aforementioned private fund managers, as well as to assess whether the law offices exercised due diligence in preparing their legal opinions, our Commission has obtained the working papers underlying the legal opinions issued by Jiangsu Dongfang Zhiguang Law Office, Beijing Tongshuo Law Office, and Guangdong Jiadexin Law Office. Upon review, it was found that these law offices failed to exercise due diligence, with instances of false records, misleading statements, or material omissions (see attachment). In accordance with the relevant provisions of our Commission’s “Announcement on Further Standardizing Certain Matters Related to the Registration of Private Fund Managers” and “Decision on Further Strengthening Self-Regulatory Management in the Private Fund Industry,” we have decided, effective April 12, 2018, to prohibit, for a period of three years, the acceptance of legal opinions on private fund manager registration issued by Jiangsu Dongfang Zhiguang Law Office, Beijing Tongshuo Law Office, and Guangdong Jiadexin Law Office.

Taxation TAXATATION
Five departments have issued the “Notice on Launching a Pilot Program for Individually Funded, Tax-Deferred Commercial Pension Insurance.”
Recently, the Ministry of Finance, the State Taxation Administration, the Ministry of Human Resources and Social Security, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission jointly issued a notice on launching a pilot program for individually funded deferred‑tax commercial pension insurance. Under the pilot, contributions made by individuals in the designated regions—through their personal commercial pension accounts—to purchase eligible commercial pension insurance products will be deductible from taxable income up to a specified limit; investment income credited to these personal commercial pension accounts will be temporarily exempt from individual income tax; and individual income tax will be levied only when the individual begins receiving commercial pension benefits. The specific provisions are as follows:
1. Standards for pre‑tax deduction of individual contributions. For individuals who receive wages, salaries, or income from continuous labor services, the premiums they pay may be deducted on a factual basis, subject to a limit, when calculating taxable income for the month in which the deduction is claimed. The deduction limit is determined by whichever is lower: 6% of the monthly wage, salary, or continuous labor service income, or RMB 1,000. For individual business operators, sole proprietorship investors, natural person partners in partnerships, and contractors or lessees who derive income from operating a business or undertaking contracted or leased operations with enterprises or public institutions, the premiums they pay may be deducted on a factual basis, subject to a limit, when calculating taxable income for the year in which the deduction is claimed. The deduction limit is determined by whichever is lower: 6% of the annual taxable income, or RMB 12,000.
2. Income generated from account funds is currently exempt from taxation. Investment income credited to an individual’s commercial pension savings account will not be subject to personal income tax during the contribution period.
3. Personal receipt of commercial pension benefits is subject to taxation. Upon reaching the nationally prescribed retirement age, individuals may receive commercial pension payments on a monthly or annual basis, with the payment period generally extending for life or for no less than 15 years. In the event of death, total disability as defined in the insurance contract, or diagnosis of a critical illness, the commercial pension may be paid out in a lump sum.
For commercial pension income received by an individual upon meeting the prescribed conditions, 25% is exempt from tax, while the remaining 75% is subject to personal income tax at a rate of 10%, with the tax liability recorded under the “Other Income” category.

The State Taxation Administration has issued the “Regulations on the Collection and Administration of the Resource Tax.”
The State Taxation Administration recently issued an announcement on the “Regulations on the Collection and Administration of the Resource Tax” (hereinafter referred to as the “Regulations”), which will take effect on July 1, 2018.
The Regulations clarify the scope of deemed sales in resource tax collection, the conditions for deducting transportation expenses, the principles governing withholding and remittance, the methods for determining the taxable price of taxable products, and procedures for standardized filing. An official from the State Taxation Administration stated that the formulation of these Regulations adhered to three key principles: first, consolidating the achievements of the ad valorem resource tax reform; second, thoroughly implementing the State Council’s requirements to deepen the “delegation, regulation, and service” reform and optimizing taxpayer services; and third, strengthening risk awareness and mitigating risks associated with resource tax payment and collection. The Regulations also standardize the implementation of resource tax exemption and reduction policies, stipulating that oil and gas field enterprises may use their self‑prepared tax returns and accompanying schedules as the sole documentation for registering such exemptions or reductions; other taxpayers are required to file the relevant documentation in accordance with applicable rules. Furthermore, in line with the spirit of the State Council’s “delegation, regulation, and service” reform, the Regulations explicitly provide that, by the end of October 2018, the submission of resource tax preferential‑treatment documents to the tax authorities will be replaced by a requirement for taxpayers to retain such materials on record for inspection, thereby further reducing the administrative burden on taxpayers.

Litigation & Arbitration
The National Courts’ Information Network for Achieving a Decisive Victory in “Fundamentally Resolving Difficulties in Enforcement” Has Officially Launched and Is Now Operational.
Recently, the National Courts’ Information Network for Securing a Decisive Victory in “Fundamentally Resolving Difficulties in Enforcement” has officially gone live. Zhou Qiang, Secretary of the Party Group and President of the Supreme People’s Court, attended a symposium and emphasized that it is essential to be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly study and implement the spirit of the 19th National Congress of the Communist Party of China, strengthen the construction and application of the website, and fully leverage its role as a platform to create a favorable atmosphere and provide robust support for courts nationwide in their decisive battle to fundamentally resolve difficulties in enforcement.
To comprehensively showcase the nationwide courts’ efforts to achieve the goal of “fundamentally resolving difficulties in enforcement,” to voluntarily accept public oversight, to better meet the public’s right to know, and to further advance this initiative, the Supreme People’s Court has established and launched the National Courts Information Network for Winning the Battle to Fundamentally Resolve Enforcement Difficulties. The website centrally aggregates judicial policies and operational information on this issue from courts across the country, providing an integrated platform for courts at all levels to promote their enforcement work and offering one-stop services to the general public for understanding and monitoring enforcement. It serves as a vital window for presenting a comprehensive picture of these efforts and as an important platform for soliciting public oversight and advancing enforcement work.

The Supreme People’s Court and the All-China Federation of Returned Overseas Chinese have jointly issued the “Opinions on Launching a Pilot Program for the Diversified Resolution of Disputes Involving Overseas Chinese in Certain Regions.”
Recently, the Supreme People’s Court and the All-China Federation of Returned Overseas Chinese jointly issued the “Opinions on Piloting Multi‑Channel Dispute Resolution for Cases Involving Overseas Chinese in Certain Regions,” deciding to launch pilot programs in 11 provinces, autonomous regions, and municipalities, including Jilin, Shanghai, and Jiangsu. The document also sets forth 13 measures to strengthen the development of mediation mechanisms for overseas‑Chinese‑related disputes, encourage the participation of lawyers, promote horizontal cooperation, enhance the application of technology, and reinforce judicial safeguards.
According to reports, launching a pilot program for the diversified resolution of disputes involving overseas Chinese can effectively leverage the unique strengths of overseas Chinese federations at all levels, returned overseas Chinese and their families, as well as overseas Chinese nationals in dispute‑resolution efforts. This initiative is of great significance for advancing diversified approaches to resolving conflicts in the field of overseas Chinese affairs and safeguarding the legitimate rights and interests of returned overseas Chinese, their families, and overseas Chinese nationals. At the same time, the pilot program represents an important measure to expand mechanisms that serve the public through the judiciary, enhance China’s international judicial influence, and strengthen the systemic nature of reforms to diversified dispute‑resolution mechanisms.

Other
The CPC Central Committee and the State Council have issued the “Guiding Opinions on Supporting Hainan’s Comprehensive Deepening of Reform and Opening-Up.”
On the 14th, the “Guiding Opinions of the CPC Central Committee and the State Council on Supporting Hainan’s Comprehensive Deepening of Reform and Opening-Up” were officially released. The document assigns the Hainan Economic Special Zone new, significant responsibilities and a mission in the cause of reform and opening-up, injecting strong momentum into Hainan’s efforts to deepen reform and opening-up, and helping the province become a new benchmark for comprehensively deepening reform and opening-up in the new era, thus forging a new pattern of higher‑level reform and opening-up.
The document outlines four new strategic roles for Hainan: a pilot zone for comprehensively deepening reform and opening-up, tasked with pioneering a new open‑economy framework and establishing Hainan as a key gateway for China’s engagement with the Pacific and Indian Oceans; a national pilot zone for ecological civilization, aimed at fostering a new model of modern development that harmonizes humanity with nature and exploring innovative approaches to advancing ecological progress nationwide; an international tourism and consumption hub, vigorously promoting greater openness in the tourism and consumer sectors to create a world‑class destination characterized by diverse offerings, strong brand clustering, a pleasant environment, and distinctive local features; and a service and support zone for major national strategies, deeply integrated into initiatives such as building China into a maritime power, advancing the Belt and Road Initiative, and promoting military‑civilian integration, thereby elevating Hainan’s standing and role within the broader national strategic landscape.

Four ministries and commissions have jointly launched a special campaign to crack down on tax fraud and the issuance of false invoices.
On April 11, the State Taxation Administration, the Ministry of Public Security, the General Administration of Customs, and the People’s Bank of China convened a joint meeting in Beijing to launch a special campaign to combat fraudulently obtained export tax rebates and the fraudulent issuance of special value-added tax invoices, and to outline the tasks for the 2018 campaign.
Sun Ruibiao, head of the Leading Group of the Four Ministries and Commissions for Combating Tax Fraud and Fictitious Invoicing, a member of the Party Leadership Group of the State Taxation Administration, and Deputy Director, emphasized during his work deployment that, at present, certain illegal elements are engaging in tax fraud and fictitious invoicing—criminal activities that seriously undermine the smooth implementation of business‑environment‑optimizing measures such as the “delegation, regulation, and service” reform and the “Spring Breeze Action” to facilitate tax compliance. These practices gravely disrupt the normal economic and tax order, necessitating resolute and unwavering enforcement. The four ministries and commissions must launch sustained, cross‑departmental and cross‑regional special operations nationwide, jointly investigate and prosecute major cases of tax fraud and fictitious invoicing, carry out targeted rectification campaigns in regions and industries where such offenses are particularly prevalent, impose severe penalties on organized gangs engaged in professional tax fraud and fictitious invoicing, promptly recover losses of state tax revenue, restore order to the economy and the tax system, foster a stable, fair, and transparent business environment, and promote high‑quality development of foreign trade and the broader economy.

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