From December, these new regulations will be implemented

Starting in December, a series of new regulations will take effect, covering real estate taxation, punishment for telecom fraud, public transportation, park management, and non-compliance with court rulings, among other areas.

For instance, regarding the punishment of telecom fraud crimes, multiple departments have jointly issued punishment measures that specify different types of punishment for different offenders, reflecting the principle of proportionality in penalties. In addressing the issue of non-compliance with court rulings, new judicial interpretations clarify that hiding or transferring assets before a judgment or ruling takes effect can constitute the crime of refusing to execute a judgment or ruling.

Joint Punishment for Telecom Fraud Crimes: Different Punishments for Different Offenders

From December 1st, the “Joint Punishment Measures for Telecom Network Fraud and Related Illegal and Criminal Activities,” jointly issued by four departments including the Ministry of Public Security, will officially take effect. The measures comprise 18 articles, mainly covering six aspects including punishment principles, punishment objects, punishment measures, graded punishment, punishment procedures, and appeal verification.

The “Punishment Measures” stipulate that individuals held criminally responsible for committing telecom network fraud and related crimes will be subject to financial punishment, telecom network punishment, and credit punishment measures for a period of three years. Units, individuals, or relevant organizers identified by municipal-level or higher public security agencies as illegally buying, selling, renting, or lending phone cards, IoT cards, fixed phones, telecom lines, SMS ports, bank accounts, payment accounts, digital RMB wallets, internet accounts, etc., will be subject to financial punishment, telecom network punishment, and inclusion in the basic financial credit information database for a period of two years. The measures clearly specify different types of punishment for different offenders, reflecting proportionality in penalties.

The “Punishment Measures” also propose to include individuals held criminally responsible for telecom network fraud and related crimes in the “seriously dishonest entities” list for telecom network fraud. Once included in this list, relevant information about the responsible entities will be shared on the national credit information sharing platform.

Cracking Down on Non-Compliance with Court Rulings: Hiding or Transferring Assets Can Constitute the Crime of Refusal to Execute

The “Interpretations of Several Issues Concerning the Application of Law in Handling Criminal Cases of Refusal to Execute Judgments and Rulings,” jointly issued by the Supreme People’s Court and the Supreme People’s Procuratorate, will take effect from December 1st.

The judicial interpretations clarify five scenarios where the crime of refusal to execute is considered “extremely serious” and further enumerate ten scenarios where it is considered “serious.”

The interpretations also clarify that if an individual, to evade execution obligations, hides or transfers assets after the commencement of litigation and before the ruling takes effect, and it is verified after the judgment or ruling takes effect that they refuse to execute despite being required to do so, they can be deemed as having the ability to execute but refusing to do so, with serious circumstances, and thus held criminally responsible for the crime of refusal to execute a judgment or ruling.

Meanwhile, if an outsider knowingly assists someone with execution obligations who refuses to execute a court judgment or ruling by conspiring with them and helping to hide or transfer assets, resulting in the inability to execute the judgment or ruling, they will be treated as an accomplice to the crime of refusal to execute a judgment or ruling. The judicial interpretations also clarify the aggravating and mitigating circumstances of the crime of refusal to execute, as well as procedures for recovering losses and other contents.

New Tax Policies for the Real Estate Market: Reducing Transaction Costs for Second-Hand Houses

The Ministry of Finance, the State Taxation Administration, and the Ministry of Housing and Urban-Rural Development have jointly issued the “Announcement on Tax Policies Related to Promoting the Stable and Healthy Development of the Real Estate Market,” clarifying multiple tax incentive policies that will be implemented from December 1, 2024.

For example, starting from December 1st, Beijing, Shanghai, Guangzhou, Shenzhen, Chongqing, and other cities will abolish the standards for ordinary and non-ordinary housing, clarifying the value-added tax and land value-added tax incentive policies after the abolition to reduce transaction costs for second-hand houses.

Regarding deed tax, the area threshold for enjoying the low tax rate of 1% has been increased from 90 square meters to 140 square meters, and it is clarified that Beijing, Shanghai, Guangzhou, and Shenzhen can apply the second-home deed tax incentive policy uniformly with other regions. After the adjustment, nationwide, for individuals purchasing their only home or a second home for their family, as long as the area does not exceed 140 square meters, the deed tax will be uniformly levied at a rate of 1%.

Regarding value-added tax, after the abolition of the ordinary housing standard in cities, individuals selling houses they have owned for more than two years (including two years) will be exempt from value-added tax. In cities that have abolished the ordinary and non-ordinary housing standards, ordinary standard residential buildings with a value-added amount not exceeding 20% of the deducted project amount will continue to be exempt from land value-added tax.

Tax Legislation Takes Another Step Forward: Improving Existing Systems and Related Policies

The “Customs Tariff Law of the People’s Republic of China” will take effect from December 1st. As a specialized law on customs tariffs formulated by China, the Customs Tariff Law maintains the basic stability of the existing customs tariff system and keeps the overall tax burden unchanged, improves existing systems and related policies, and elevates them to legal status.

Customs tariffs are taxes imposed by customs on imported and exported goods and items entering the country. The Customs Tariff Law consists of seven chapters, including general provisions, tax items and rates, taxable amounts, tax incentives and special customs tariff collection, collection management, legal responsibilities, and supplementary provisions. With the formulation and promulgation of the Customs Tariff Law, 13 out of the 18 current tax categories in China have been legislated, marking another step forward in tax legislation.

It is worth mentioning that the “Import and Export Tariff of the People’s Republic of China” will be implemented synchronously with the Customs Tariff Law. As an annex to the Customs Tariff Law, the “Tariff” includes three parts: rules and explanations, import tariff, and export tariff.

Urban Public Transportation Upgrade: No Unauthorized Changes to Operating Routes or Interruption of Services

The “Regulations on Urban Public Transportation” will take effect from December 1, 2024. The “Regulations” fill the legal gap in the field of urban rail transit and usher in a new legal framework for prioritizing the development of urban public transportation in China.

The state encourages and guides the public to prioritize public transportation as a mode of motorized travel. Urban public transportation companies must not transfer, lease, or indirectly transfer or lease their operating urban public transportation lines to others for operation; they must not unauthorizedly change operating routes, stops, operating times, or interrupt services.

In response to the current inadequate investment in public transportation in some cities, the “Regulations” clarify that city people’s governments should allocate funds needed for the development of public transportation based on the actual situation of urban public transportation and fiscal affordability, and incorporate them into the budget at the corresponding level.

Regarding public concerns such as ticket prices and diversified demands for customized buses, the “Regulations” also provide clear provisions: urban public transportation fares shall be subject to government pricing or government-guided pricing in accordance with the law; a dynamic adjustment mechanism shall be established; and a multi-level and differentiated urban public transportation fare system shall be established.

Lower Threshold for Foreign Investment: Facilitating Strategic Investment in Listed Companies

The newly revised “Measures for the Administration of Strategic Investments by Foreign Investors in Listed Companies” will take effect from December 2, 2024. This revision facilitates strategic investments by foreign investors in listed companies and will further broaden the channels for foreign investment in the securities market, unleashing the potential for attracting investment through strategic investment channels.

The revised “Measures” mainly lower the investment threshold in five aspects. First, foreign natural persons are allowed to make strategic investments. Second, the asset requirements for foreign investors are relaxed. Third, tender offers are added as a method of strategic investment. Fourth, for strategic investments made through private placements or tender offers, foreign non-listed company shares are allowed as payment. Fifth, the shareholding ratio and lock-up period requirements are appropriately reduced.

Export Control Regulations for Dual-Use Items: Abolishing the Operator Registration System and Improving Full-Chain Control

The “Regulations of the People’s Republic of China on Export Control of Dual-Use Items” will take effect from December 1, 2024. Dual-use items refer to goods, technologies, and services, including related technical data, that have both civilian and military uses or contribute to enhancing military potential, especially those that can be used for the design, development, production, or use of weapons of mass destruction and their delivery systems.

The transit, transshipment, through transportation, and re-export of dual-use items fall under the scope of export control. However, due to the specificity of their export forms, the entities applying for export licenses differ from those for general dual-use item exports. Therefore, the “Regulations” stipulate that the transit, transshipment, through transportation, and re-export of dual-use items shall be implemented in accordance with the relevant provisions of the Export Control Law and these Regulations.

The “Regulations” consist of six chapters and