State level:
(1) On July 16, 2014, the General Office of the Communist Party of China (“CPC”) Central Committee and the State Council jointly issued the Guiding Opinions on Comprehensively Promoting the Reform of Official Vehicles System and the Reform Scheme of the Official Vehicles System in Central and State Organs (collectively, the “Directives”) to restrict the use of official cars by government officials. According to the Directives, officials below the vice-ministerial level will not be provided with cars or drivers any more, and general official cars will be canceled except for special purpose vehicles and emergency vehicles. Instead, the central government will provide transportation subsidies to public servants at different levels ranging from RMB 500 (USD 81) to RMB 1300 (USD 210) per month. This reform at the level of the central and state organs is expected to be completed by the end of 2014 and then implemented with respect to local governments and state-owned enterprises (“SOEs”).
(2) On July 27, 2014, the Central Commission for Discipline Inspection (“CCDI”) of the CPC, the Organization Department of the CPC Committee, the State Commission Office of Public Sectors Reform, the Ministry of Supervision (“MOS”), the Ministry of Human Resources and Social Security, the National Audit Office and the National Development and Reform Commission jointly issued the Rules for Implementation of the Stipulations in Respect of the Auditing of Economic Liabilities of Leading Government and Party Cadres and Leaders of State Owned Enterprises (the “Implementation Rules”), which took effect the same day.