Taihe Legal News, Issue 1217

Key Takeaways for This Issue

The China Securities Regulatory Commission convened an investor symposium in Beijing to solicit market feedback and suggestions.

On July 20, the China Securities Regulatory Commission convened an investor symposium to solicit views on promoting the stable and sound development of the capital market.

The State Administration for Market Regulation has issued a plan to empower individual business households through platform enterprises.

The General Office of the State Administration for Market Regulation has issued the “Notice on Printing and Distributing the Action Plan to Promote Platform Enterprises in Empowering the Development of Individual Industrial and Commercial Households.”

The State Administration for Market Regulation has released ten typical cases of illegal advertising in areas related to people’s livelihoods.

On July 21, the State Administration for Market Regulation released ten typical cases of illegal advertising in areas of public concern.

Finance and Capital Markets

FINANCE &CAPITAL MARKETS

The China Securities Regulatory Commission convened an investor symposium in Beijing to solicit market feedback and suggestions.

On July 20, the China Securities Regulatory Commission held a symposium with investors to solicit their views and suggestions.

On the morning of July 20, Wu Qing, Secretary of the CPC Committee and Chairman of the China Securities Regulatory Commission (CSRC), conducted a field visit to a securities brokerage branch in Beijing and chaired an investor symposium, where he engaged with eight investor representatives and heard their views on fostering the stable and healthy development of the capital market. Participants proposed measures such as strengthening counter-cyclical adjustments between the primary and secondary markets, guiding medium- and long-term funds into the market, standardizing the development of quantitative trading and AI applications, encouraging listed companies to increase dividend payouts, and raising the costs of securities‑related illegal and criminal activities. The CSRC stated that it will coordinate risk prevention, robust regulation, and high‑quality development, ensure the smooth functioning of the market, enhance the transparency and authenticity of listed companies, urge industry institutions to operate in compliance and improve investor services, and establish a sound, long‑term mechanism for investor protection.

The People’s Bank of China has released its report on financial market operations for June 2026.

On July 22, 2026, the People’s Bank of China released data on financial market performance for June 2026.

In June, the average daily turnover of interbank lending and bond repurchase declined year on year, while DR001, DR007, and R001 rose month on month. Net government bond financing reached RMB 768.33 billion, and net corporate bond financing stood at RMB 401.16 billion; the outstanding balance of bonds under custody totaled RMB 205 trillion, with cash‑bond trading volume up 19.9% year on year. Renminbi derivatives trading amounted to RMB 7.8 trillion, and treasury futures trading reached RMB 8.6 trillion. Acceptances of commercial bills totaled RMB 4 trillion, and discounting reached RMB 3.2 trillion, with a high share attributable to small, medium, and micro enterprises. At the end of June, the RMB/USD exchange rate closed at 6.7852, the Shanghai Composite Index stood at 4,094.4 points, and holdings and trading in corporate credit bonds in the interbank bond market continued to concentrate further.

Shanghai’s Jing’an District has issued a document to implement fiscal interest subsidies for financing loans to small and medium-sized enterprises.

On July 20, 2026, the Jing’an District Finance Bureau issued the “Implementation Opinions on Further Supporting SMEs through Fiscal Interest Subsidies for Financing Loans.”

The Implementation Opinions stipulate that small and medium-sized enterprises in this district that operate with integrity and in compliance with the law will receive interest subsidies on financing loans. The criteria for identifying such SMEs shall be in accordance with Document No. 300 [2011] issued by the Ministry of Industry and Information Technology. Special-purpose loans will be provided by banks operating within the district, with loan amounts centrally managed by the District Finance Bureau, and a maximum term of no more than three years. Within one year after the enterprise has duly fulfilled its obligations, the finance department will grant a subsidy of up to 20% of the Loan Prime Rate (LPR). The maximum subsidy for any single beneficiary is RMB 500,000, and the same loan may not simultaneously qualify for other fiscal interest-subsidy policies of this district. Banks shall submit lists and relevant information on loan‑eligible enterprises; following review by the District Finance Bureau, funds will be disbursed directly under the “no-application‑required, automatic‑enjoyment” mechanism. This document shall take effect on May 23, 2026, and remain valid until May 22, 2029.

Business and Corporations

COMMERCIAL & CORPORATE

The State Administration for Market Regulation has issued a plan to empower individual business households through platform enterprises.

On July 9, 2026, the General Office of the State Administration for Market Regulation issued the “Notice on the Issuance of the Action Plan to Promote Platform Enterprises in Empowering the Development of Individual Industrial and Commercial Households.”

The Plan sets out to achieve five categories of outcomes by the end of 2027 and outlines five sets of measures: start-up support, targeted cultivation, capacity building, digital empowerment, and innovation demonstration. It encourages platforms to streamline onboarding procedures, urges individual online stores to register in accordance with the law, and expands the application of electronic business licenses. Platforms are guided to reduce commissions, service fees, membership charges, and technical service fees for newly registered self-employed individuals. Specialized support—tailored to “renowned, distinctive, high-quality, and innovative” self-employed businesses—is provided in areas such as traffic generation, cost reductions, and logistics. Training is strengthened in advertising, food safety, intellectual property, and tax filing. Low-cost digital tools are introduced, public‑interest showcases of quality products are organized, and measures are emphasized to standardize platform pricing and crack down on online infringement and counterfeiting.

The Ministry of Industry and Information Technology has outlined key tasks for establishing national demonstration zones for new‑type industrialization.

On July 22, the Ministry of Industry and Information Technology released details of the symposium on the establishment of national demonstration zones for new‑type industrialization.

The meeting reviewed the achievements of establishing national demonstration zones for new‑type industrialization and outlined tasks for the next phase, calling on participating cities to advance their work by focusing on industrial technological innovation, optimizing and upgrading industrial structures, fostering the integrated, intelligent, and green development of industry, and building high‑level industrial platforms. This includes strengthening enterprises’ role as innovation drivers, developing industrial innovation platforms, facilitating the commercialization of scientific and technological成果, upgrading traditional industries, and cultivating emerging and future‑oriented sectors; promoting smart manufacturing, green and low‑carbon transformation, service‑oriented manufacturing, and productive services; enhancing the competitiveness of advanced manufacturing clusters and the quality of science‑and‑technology industrial parks; and nurturing a cohort of high‑quality enterprises. At the same time, the meeting clarified the principal responsibilities of local governments, the guiding and supportive roles of provincial departments of industry and information technology, and the Ministry of Industry and Information Technology’s mechanism for regular coordination and collaboration.

Ministry of Commerce responds to questions regarding the European Commission’s imposition of penalties on AliExpress under the Digital Services Act.

Recently, a spokesperson for the Ministry of Commerce answered questions from reporters regarding the European Commission’s fine against AliExpress.

The Ministry of Commerce responded to the European Commission’s announcement on July 20 that it had imposed a €550 million fine on AliExpress under the EU’s Digital Services Act. In its reply, China expressed strong dissatisfaction and grave concern, opposing the EU’s use of platform‑regulation as a pretext to erect digital barriers and adopt discriminatory measures that restrict and suppress the normal operations of Chinese e‑commerce enterprises in Europe. China urged the EU to cease abusing its discretionary powers by exploiting ambiguities in legal provisions and to treat Chinese companies fairly and impartially. It also stated that it would firmly support Chinese enterprises in defending their rights through legal means and take robust measures to safeguard their interests.

 

 

Taxation

TAXATION

Three Shanghai departments have issued the Implementation Rules for Maintenance Services in Comprehensive Bonded Zones.

On July 21, 2026, the Shanghai Municipal Commission of Commerce, the Municipal Ecology and Environment Bureau, and Shanghai Customs jointly issued the “Shanghai Implementation Rules on Supporting Repair Services within Comprehensive Bonded Zones.”

The Detailed Rules stipulate that enterprises within the Comprehensive Bonded Zone may conduct business in accordance with the national bonded repair policy and the catalog of repairable products. Applications shall be accepted by the local commerce authorities or the Management Committee of the Lingang New Area, and must include operational guidelines, customs management systems, information‑technology platforms, safety procedures, and pollution‑prevention plans. Relevant departments will jointly review these submissions and formulate a regulatory plan; upon approval, the plan shall be filed with the municipal authorities. Enterprises are required to dispose of scrap, used parts, and defective components in compliance with the law, are prohibited from importing solid waste under the bonded repair regime, and must maintain records for managing solid waste. The handling of hazardous waste, pollutant emissions, and VOC usage must adhere to both national and local regulations. Non‑compliant enterprises will be subject to corrective measures and re‑verification procedures, and a quarterly reporting and dynamic management system will be established.

 

Litigation and Arbitration

LITIGATION & ARBITRATION

The State Administration for Market Regulation has released ten typical cases of illegal advertising in areas related to people’s livelihoods.

On July 21, 2026, the State Administration for Market Regulation released ten typical cases of illegal advertising in areas related to people’s livelihoods.

The cases involve live-stream marketing of food, pharmaceuticals, medical devices, health foods, real estate, and imitation antique porcelain. The primary violations include making health‑promoting or therapeutic claims for ordinary foods, publishing unreviewed advertisements for drugs and medical devices, promoting health foods with disease‑prevention or treatment claims, using false citation content in advertisements, placing prescription‑drug ads in non‑designated professional publications, fraudulently obtaining approval for medical‑device advertising, and making real‑estate promotional claims that do not match the actual delivered properties. The relevant cases have been subject to penalties including fines and confiscations, revocation of 839 advertising approval numbers with a three‑year ban on reapplying, and, in individual instances, referral to public security authorities.

The National Development and Reform Commission and the Supreme People’s Procuratorate have issued the second batch of typical cases under the Law on Promoting the Private Economy.

On July 22, 2026, the National Development and Reform Commission and the Supreme People’s Procuratorate released the “Typical Cases of Implementing the Law on Promoting the Private Economy (Second Batch).”

This issue publishes ten typical procuratorial cases, covering offenses such as embezzlement by a public official, misappropriation of funds, bribery by non‑state functionaries, contract fraud, infringement of trade secrets, oversight of administrative penalties involving enterprises, supervision of enforcement proceedings related to enterprises, monitoring of long‑term asset freezes, and public interest litigation in the field of ecological environment. The cases address a range of issues, including prosecuting overlooked crimes and offenders, lodging protests against inadequate trial supervision, cracking down on livestream‑based contract fraud, rectifying property freezes exceeding the scope of guarantees and the improper application of measures for discrediting and sanctioning defaulters, overseeing the lifting of prolonged freezes on corporate accounts, ensuring that administrative penalties are proportionate to the violations, promoting the standardized management of hazardous waste in the auto‑repair sector, and determining the “identity” of technical information in cases involving infringement of trade secrets.

The Supreme People’s Procuratorate has issued the “15th Five-Year Plan” for the Development of the People’s Procuratorial Cause.

Recently, the Supreme People’s Procuratorate released the “15th Five-Year Plan for the Development of the People’s Procuratorial Cause.”

The Plan sets out to, by 2030, refine the institutional mechanisms governing the functions and organizational structure of the procuratorial organs, their performance of duties and handling of cases, prosecutorial management, personnel development, and support for prosecutorial work. Centered on the legal supervision system, it outlines 13 key tasks, covering review of arrest, review of prosecution, oversight of criminal proceedings, supervision of criminal execution, civil prosecution, administrative prosecution, public interest litigation, intellectual property prosecution, and foreign-related prosecution, among others. It also makes arrangements for prosecutorial operations, case management, quality control, the judicial accountability system, and the checks and balances on the exercise of prosecutorial power. The annex lists 21 priority tasks, including the coordinated establishment of a long-term mechanism for standardizing law enforcement involving enterprises, with measures to prevent and rectify unlawful cross‑jurisdictional enforcement and profit‑driven law enforcement and judicial practices.

The Zhejiang High People’s Court and the Provincial People’s Procuratorate have released typical cases of cracking down on telecom fraud and related crimes.

Recently, the Zhejiang Provincial Higher People’s Court and the Zhejiang Provincial People’s Procuratorate released typical cases of lawful crackdowns on telecom and online fraud and related crimes.

A total of ten typical cases were released this time, covering areas such as online dating and matchmaking, e‑store management services, contract manufacturing, academic credential upgrading, investment schemes masquerading as government agencies, live‑stream “gambling on gemstones,” “contract farming,” impersonation to deliver in‑game skins, illegal collection of elderly individuals’ mobile phone numbers, and money laundering through proxy payment of electricity bills. The charges involved include fraud, infringement of citizens’ personal information, and concealment or cover‑up of proceeds from crime. These cases highlight trends such as the networking, corporatization, and livestreaming‑driven nature of telecom and internet fraud, the use of contract‑based packaging, and the exploitation of everyday bill‑payment scenarios to transfer illicit funds, while also disclosing the convictions and sentencing outcomes for the defendants concerned.

The Shenzhen Intermediate People’s Court and two other entities jointly released typical cases on the protection of trade secrets.

Recently, the Shenzhen Intermediate People’s Court, the Shenzhen People’s Procuratorate, and the Shenzhen Administration for Market Regulation jointly released a set of typical cases on the protection of trade secrets.

This release comprises eight cases, covering criminal, civil, and administrative protection of trade secrets, as well as the coordination between administrative and criminal proceedings. The cases involve source code, algorithms, technical drawings, customer transaction information, hardware design schemes, and more, clarifying the criteria for determining when trade secrets have been obtained or disclosed through unlawful copying, electronic intrusion, unauthorized reproduction and storage, or disclosure and use. They also address issues such as the classification of algorithms as technical secrets, the limitation of the scope of technical‑secret protection to the physical drawings themselves, administrative penalties for competitors’ employees colluding internally and externally to obtain transaction information, and, following a decision not to prosecute by the procuratorial authorities, the referral of such matters to market‑regulation agencies for the imposition of administrative liability.

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