Taihe Legal News, Issue 1220

Key Takeaways for This Issue

The State Council has promulgated the “Decision on Amending and Repealing Certain Administrative Regulations.”

On August 13, Premier Li Qiang of the State Council signed a State Council decree promulgating the “Decision of the State Council on Amending and Repealing Certain Administrative Regulations,” which revises or repeals numerous administrative regulations covering areas such as market regulation, finance, and taxation, thereby further advancing the “delegation, regulation, and service” reform and optimizing the business environment.

The People’s Bank of China has released the “Report on the Implementation of China’s Monetary Policy for the Second Quarter of 2026.”

On August 12, the People’s Bank of China released the “Report on the Implementation of China’s Monetary Policy for the Second Quarter of 2026,” disclosing measures such as the introduction of an overnight reverse repurchase facility in the open market, the narrowing of the temporary reverse and reverse repo rate bands, and reductions in the interest rates of structural monetary policy tools.

The Supreme People’s Court has released seven typical cases involving commercial franchise disputes.

On August 12, the Supreme People’s Court released seven typical cases involving commercial franchise disputes, covering civil, administrative, and criminal matters, with the aim of standardizing commercial adjudication rules and regulating franchise activities.

Finance and Capital Markets

FINANCE & CAPITAL MARKETS

The State Council has promulgated the “Decision on Amending and Repealing Certain Administrative Regulations.”

On August 13, Premier Li Qiang of the State Council signed a State Council decree promulgating the “Decision of the State Council on Amending and Repealing Certain Administrative Regulations.” The decision revises or repeals numerous administrative regulations across multiple sectors, including market regulation, finance, taxation, agriculture and rural affairs, and ecological environment. It aims to implement the decisions and arrangements of the CPC Central Committee and the State Council, advance the transformation of government functions and the “delegation, regulation, and service” reform, and continuously optimize the business environment. The amendments primarily involve abolishing a number of unreasonable approval requirements, streamlining administrative procedures, and ensuring consistency with higher-level laws and newly enacted legislation; the repealed provisions mainly consist of regulatory clauses that no longer meet current needs or have been superseded by new regulations. The promulgation of this decision will help uphold the unity of the legal system, reduce institutional transaction costs, provide a more stable and predictable institutional framework for all types of market entities, and lay the groundwork for a systematic review of administrative regulations in key areas going forward.

The People’s Bank of China has released the “Report on the Implementation of China’s Monetary Policy for the Second Quarter of 2026.”

On August 12, the People’s Bank of China released the “Report on the Implementation of China’s Monetary Policy for the Second Quarter of 2026.” The report noted that in the second quarter, the central bank expanded the range of overnight reverse repurchase operations in the open market, narrowed the spread between temporary reverse and regular repurchase operations from 70 basis points to 50 basis points, and lowered interest rates on structural monetary policy tools. It analyzed the first-half trends in money and credit, financial institutions’ lending rates, the RMB exchange rate, and financial market conditions, revealing that overall social financing costs have remained stable while trending downward. Looking ahead, the monetary policy framework emphasizes maintaining ample liquidity, further reducing overall social financing costs, and guiding adjustments and optimization in the credit structure to better support key areas such as technological innovation, green transformation, and the private sector, thereby consolidating the economy’s recovery and improvement.

Business and Corporations

COMMERCIAL & CORPORATE

The Ministry of Commerce has issued a preliminary ruling to impose deposit requirements on imports of pecans originating in the United States and Mexico.

On August 10, the Ministry of Commerce issued the “Preliminary Determination in the Anti-Dumping Investigation on Imported Pecans Originating in Mexico and the United States.” The investigating authorities preliminarily found that imported fresh or dried pecans originating in Mexico and the United States are being sold at dumped prices, that the domestic pecan industry has suffered material injury, and that a causal link exists between the dumping and such injury. Pursuant to this determination, effective August 11, importers shall, when importing the aforementioned products, deposit the corresponding保证金 (security deposits) with the Customs of the People’s Republic of China at the company‑specific rates set forth in the announcement. The Ministry of Commerce invites interested parties to submit written comments within the announcement period, after which a final ruling will be made in accordance with the law. This measure aims to safeguard a fair competitive environment for the domestic industry, and relevant import enterprises are urged to promptly assess compliance implications and cost impacts.

Beijing is seeking public input on measures to promote high-quality development in the cell and gene therapy sector.

On August 12, the Beijing Municipal Science & Technology Commission and the Zhongguancun Administrative Committee released the “Several Measures to Promote High-Quality Development in the Cell and Gene Therapy Sector (Draft for Public Comment),” inviting public feedback until August 18. The measures outline nine initiatives aimed at supporting enterprises and medical institutions in tackling key technological challenges in areas such as immune cell therapy, stem cell therapy, and gene-editing therapies, thereby advancing the R&D and clinical translation of cell and gene‑based therapeutics. They also propose establishing public service platforms, strengthening industry–university–research–clinical collaboration, improving ethical and regulatory frameworks, and encouraging eligible innovative products to be included in application‑demonstration programs in accordance with relevant regulations. This draft signals Beijing’s commitment to bolstering the bioeconomy and securing a leading position in cutting-edge healthcare, and relevant pharmaceutical companies are encouraged to closely monitor the application guidelines and submit their feedback during the consultation period.

Beijing’s Huairou District is publicly soliciting opinions on the High-End, Precision, and Cutting-Edge Industry Development Plan for the 15th Five-Year Plan period.

On August 12, Huairou District released the “Huairou District High‑End, Precision, and Cutting‑Edge Industry Development Plan for the 15th Five‑Year Period (Draft for Public Comment).” The plan proposes establishing a “4‑4‑10” industrial system—comprising four leading high‑end, precision, and cutting‑edge industries, four emerging industry tracks, and ten key sub‑sectors—and shaping a spatial layout of “one core, three axes, and four clusters.” It sets a target of RMB 160 billion in total output value for these industries by 2030, with priority given to areas such as scientific instruments and sensors, and new materials. Supporting measures are outlined around innovation platforms, resource guarantees, and open‑access application scenarios. Leveraging the innovative resources of Huairou Science City, the plan aims to accelerate the commercialization of scientific and technological achievements and foster industrial agglomeration, providing policy guidance for relevant technology‑based enterprises seeking to establish operations in northern Beijing.

The Cyberspace Administration of China has released a Q&A on personal information protection policies and regulations for August.

On August 12, the Cyberspace Administration of China released a Q&A on personal information protection policies and regulations (August 2026). The Q&A clarifies that the processing of personal information that individuals have voluntarily disclosed or that has been lawfully made public must be conducted within reasonable limits, unless the individual has explicitly objected. Where such processing activities have a significant impact on an individual’s rights and interests, consent must be obtained in accordance with the law. The Q&A also provides guidance on conducting compliance audits of personal information, emphasizing adherence to audit requirements under the Personal Information Protection Law and other relevant provisions. These rules offer direct guidance to enterprises regarding their compliance obligations in areas such as personal information processing, user profiling, and the external provision of data. Enterprises are advised to use this guidance to review their processing activities and to strengthen their consent‑obtaining and audit mechanisms.

Six departments have issued the “15th Five-Year Plan” for ecological protection.

On August 11, the Ministry of Ecology and Environment and five other departments released the “15th Five-Year Plan for Ecological Protection.” The plan sets targets to ensure that by 2030, terrestrial protected areas will cover at least 18% of the national land area, the ecological quality index will rise to 86.5, soil and water conservation rates will exceed 74%, and forest coverage will reach 25.8%. It also identifies key priorities for ecological protection oversight and outlines a series of flagship projects. The plan underscores integrated conservation and restoration of mountains, rivers, forests, farmland, lakes, grasslands, and deserts; strengthens management of ecological red lines and biodiversity protection; and enhances the diversity, stability, and sustainability of ecosystems. This plan provides high-level guidance for ecological protection efforts during the 15th Five-Year Period, and companies involved in forestry, mining, or ecological governance should pay close attention to red-line constraints and compliance requirements.

The Ministry of Industry and Information Technology has released its report on telecommunications service quality and complaint statistics for the second quarter.

On August 13, the Ministry of Industry and Information Technology issued the “Notice of the Ministry of Industry and Information Technology on Telecommunications Service Quality in the Second Quarter of 2026.” The notice revealed that online telecommunications service transactions accounted for over 91% of all transactions in the second quarter. In a technical sampling inspection of mobile apps, 27 batches were tested; 983 apps were ordered to make rectifications, 122 were publicly criticized, and 28 were removed from app stores, addressing serious issues such as unauthorized collection of personal information, forced bundling, and frequent pop-up ads. Relevant enterprises were required to implement these corrective measures. The notice also advised users to conduct transactions through official channels and exercise caution when granting permissions, while providing information on complaint‑handling mechanisms. This announcement underscores the regulatory authorities’ ongoing efforts to address app‑related irregularities and safeguard user rights, urging app operators to conduct self‑inspections in line with the prescribed remediation requirements.

The General Office of the State Council has approved the forest harvesting quotas for key forest areas for the 15th Five-Year Plan period.

On August 11, the General Office of the State Council issued its reply regarding the annual forest harvesting quota for key forest areas during the 15th Five-Year Plan period, in principle approving the quota proposed by the National Forestry and Grassland Administration. This quota represents the maximum allowable annual harvest of forest resources on forest land and the maximum volume of timber consumption in key forest areas, serving as an important legal basis for strengthening the protection and management of forest resources and implementing the harvesting‑quota system. The reply stipulates that the quota must be strictly enforced without exceeding it and that it is to be progressively allocated and implemented at each administrative level in accordance with regulations. Relevant state‑owned forest areas and forestry enterprises are required to base their harvesting plans on this quota and to ensure compliance with requirements for licensed harvesting, quota‑based management, and resource monitoring.

Litigation and Arbitration

LITIGATION & ARBITRATION

The Supreme People’s Court has released typical cases involving disputes over property service contracts.

On August 13, the Supreme People’s Court released five typical cases involving disputes over property service contracts, aiming to set a benchmark for guidance, standardize adjudicative rules, and effectively prevent and resolve property‑related conflicts. The cases clarify that: property service providers must pursue payment of property fees through reasonable and lawful means and may not impose measures—such as restricting owners’ access to the community’s entry‑control system—that exceed reasonable limits; owners may not refuse to pay property fees on the grounds of unreasonable building design or other matters that fall outside the scope of the property service provider’s obligations; if, after the termination of a property service contract, the former service provider refuses to vacate, the court will not uphold their claim for payment of post‑termination fees; and decisions made by the owners’ assembly are binding on all owners, but property service providers lack standing to seek judicial determination of the validity of such decisions.

The Supreme People’s Court has released typical cases on the ascertainment of technical facts in plant variety rights disputes.

On August 10, the Supreme People’s Court released three typical cases involving the ascertainment of technical facts in plant variety protection matters, providing guidance for standardizing such fact-finding and ensuring uniformity in judicial rulings. The cases clarify that molecular marker analysis and field‑based observation are parallel methods of identification; field observation is neither mandatory nor necessarily given priority. The evidentiary weight of inspection reports must be subject to substantive review, with particular attention paid to whether the testing institution possesses the requisite technical expertise. Where a party unilaterally commissions testing and the sample origin remains unclear, the court should, as a general rule, provide clarification, and any request by the party to commission an expert appraisal should be granted. Furthermore, when the approving authority has not retained standard samples, the court may accept, as control material, the reproductive material of the parent plant that was physically inspected by experts during the authorization process. These rules will help enhance the level of judicial protection for new plant varieties.

The Supreme People’s Court has released seven typical cases involving commercial franchise disputes.

On August 12, the Supreme People’s Court released seven typical cases involving commercial franchise disputes, covering civil, administrative, and criminal matters. The cases clarify that, in determining a franchising relationship, courts must examine the contract as a whole—assessing its rights and obligations, as well as such substantive features as operational resources, standardized practices, and payment arrangements—rather than relying solely on the contract’s title. Moreover, the franchisee may exercise the right to terminate the agreement within a reasonable period during which it has not yet actually utilized the franchisor’s operational resources. If the franchisor engages in exaggerated advertising or reckless expansion that harms the franchisee’s interests, it shall bear corresponding legal liability. These landmark cases have harmonized rules governing commercial adjudication, providing guidance for regulating franchise activities and safeguarding the interests of small and medium-sized investors and market order. Relevant franchisors and franchisees can use these precedents to evaluate their contracts and identify appropriate avenues for protecting their rights.

The Supreme People’s Court Case Database has recently added numerous new reference cases.

On August 10 and 11, the Supreme People’s Court Case Database added a number of new reference cases, covering civil and administrative adjudication principles such as the determination of consumer fraud, invalidation of design patents, declaration of trademark invalidity, and the validity of administrative agreements, thereby further clarifying the standards for handling related cases. Once included in the database, courts at all levels are required to refer to these cases when adjudicating similar matters, which helps ensure uniform application of the law and reduce inconsistent rulings in identical cases. The newly added cases focus on high‑frequency areas such as consumer protection, intellectual property, and administrative disputes, providing benchmark judicial guidance for corporate compliance and rights redress. Relevant market entities are encouraged to closely follow the key points of these cases to refine their evidence‑gathering and litigation strategies.

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