Sinobravo Policy Express (January 2026)

High-Level Interaction

Xi Jinping Meets with British Prime Minister Keir Starmer

On January 29, President Xi Jinping met with British Prime Minister Keir Starmer. Both sides agreed to develop a long-term, stable, and comprehensive strategic partnership. Xi Jinping noted that as permanent members of the UN Security Council and major economies, China and the UK should strengthen dialogue and cooperation in safeguarding world peace and stability, and promoting economic development and people's livelihoods in both countries. Both sides should expand mutually beneficial cooperation in education, healthcare, finance, and services, and conduct joint research and industrial transformation in fields such as artificial intelligence, bioscience, new energy, and low-carbon technologies. The UK should provide a fair, equitable, and non-discriminatory business environment for Chinese enterprises. China is willing to actively consider implementing unilateral visa-free access for the UK. Starmer stated that the UK's long-standing policy on the Taiwan issue remains unchanged. The UK is willing to maintain high-level exchanges with China, strengthen cooperation in trade, investment, finance, environmental protection, and other fields; jointly promote enhanced exchanges between the legislative bodies and other sectors of both countries; and strengthen cooperation in addressing global challenges such as climate change. This marks the first official visit to China by a British Prime Minister in eight years. The delegation included over 60 prominent representatives from British business, industry, and cultural sectors.

Vice Premier Ding Xuexiang Meets with Goldman Sachs Chairman and CEO

On January 28, Vice Premier Ding Xuexiang met with David Solomon, Chairman and CEO of Goldman Sachs Group. Ding stated that China will steadfastly pursue high-quality development, expand high-level opening-up, and continuously unleash the potential of its vast market to provide new opportunities for enterprises worldwide. He welcomed foreign companies to expand investment and cooperation in China. Solomon expressed that Goldman Sachs Group is optimistic about China's development prospects and economic growth potential, and will continue to deepen its engagement in the Chinese market while playing a positive role in the stable development of U.S.-China relations. On the same day, Li Yunze, Director of the National Financial Regulatory Administration, met with Solomon and his delegation. The two sides exchanged views on the international economic and financial situation, the development of China's financial markets, and Goldman Sachs Group's development in China.

Xi Jinping Meets with Finnish Prime Minister Orpo

On January 27, President Xi Jinping met with Finnish Prime Minister Orpo, who was in China for an official visit. Xi emphasized that China will continue to pursue high-quality development and expand high-level opening-up. Both sides should deepen mutually beneficial cooperation and achieve more collaborative outcomes in areas such as energy transition, circular economy, agriculture and forestry industries, and scientific and technological innovation. He welcomed Finnish enterprises to “swim freely” in the “ocean” of China's market and enhance their global competitiveness.

Vice Premier He Lifeng Attends and Delivers Speech at World Economic Forum Annual Meeting 2026

On January 20, He Lifeng stated at the World Economic Forum Annual Meeting 2026 that China firmly supports multilateralism and free trade, upholds win-win cooperation, mutual respect, and equal consultation, and effectively manages differences and resolves issues through dialogue. He Li-feng emphasized that China's development will bring significant opportunities to the world. During the event, he held talks with U.S. Treasury Secretary Steven Mnuchin and UK Chancellor of the Exchequer Jeremy Reeves, who were the co-chairs of the China-U.S. Economic and Trade Consultation Mechanism and the China-UK Economic and Financial Dialogue Mechanism respectively, to exchange views on relevant issues in the economic and trade fields between China and the U.S., as well as between China and the UK.

Xi Jinping Meets with Canadian Prime Minister Justin Trudeau; Joint Statement Issued Following Leaders' Meeting

On January 16, President Xi Jinping met with Canadian Prime Minister Justin Trudeau, who was in China for an official visit. Regarding bilateral relations, Xi proposed four principles: mutual respect, common development, mutual trust, and mutual cooperation. The Canadian side expressed willingness to build a new type of strategic partnership with China, reaffirmed its commitment to the One-China policy, and pledged to expand and strengthen cooperation in areas such as trade, energy, agriculture, finance, education, and climate change. Following the meeting, both sides released the Joint Statement of the China-Canada Leaders' Meeting, stating that the two leaders welcomed the recent progress in bilateral dialogue and agreed to enhance exchanges at all levels to advance outcomes in macroeconomics, trade and economy, energy, finance, public security, people-to-people exchanges, and multilateralism.

China and Canada Reach Consensus on Economic and Trade Cooperation

On January 16, Premier Li Qiang of the State Council met with Canadian Prime Minister John Horgan. Premier Li stated that China is willing to deepen cooperation in clean energy, digital technology, modern agriculture, aerospace, advanced manufacturing, finance, and other fields to cultivate more new economic growth points. On the same day, Commerce Minister Wang Wentao met with Canadian Minister of International Trade Don Shido. Both sides reached positive consensus on further planning and expanding the roadmap for economic and trade cooperation, exploring new areas of collaboration in green and sustainable trade, e-commerce cooperation and trade facilitation, personnel exchanges, and multilateral and regional economic and trade affairs, to promote the continuous improvement and development of bilateral economic and trade relations.

Commerce Minister Wang Wentao Holds Phone Talks with Australian Trade Minister Farrell and Agriculture Minister Collins

On January 14, Minister of Commerce Wang Wentao held a video call with Australian Trade Minister Farrell and Agriculture Minister Collins at their request to exchange views on issues including the global safeguard investigation into beef. Wang stated that the investigation was initiated at the request of China's domestic industry, in compliance with WTO rules and Chinese law. The relevant measures aim to address the difficulties faced by the domestic industry on a phased basis, rather than restricting normal trade. China is willing to maintain close communication with all parties, including Australia.

Chinese Financial Institutions Meet with Former Canadian PM Chrétien

On January 8, Zhu Hesheng, Director of the State Administration of Foreign Exchange, met with former Canadian Prime Minister Jean Chrétien. The two sides exchanged views on the current international political and economic situation and promoting China-Canada financial cooperation. The previous day, Pan Gongsheng, Governor of the People's Bank of China, met with Chrétien. They discussed the global economic and financial situation, China-Canada economic and trade relations, and China-Canada financial cooperation.

Xi Jinping Holds Talks with South Korean President Lee Jae-myung

On January 5, Xi Jinping held talks with South Korean President Lee Jae-myung. Xi emphasized that China and South Korea have long upheld the principles of “prioritizing harmony” and “harmony without uniformity.” The two sides should continuously enhance mutual trust and resolve differences through dialogue and consultation. China and South Korea have close economic ties with deeply integrated industrial and supply chains. Both sides should achieve more cooperation outcomes in fields such as artificial intelligence, green industries, and the silver economy. They should also enhance people-to-people exchanges and promote interactions among youth, media, sports, think tanks, and local governments. Lee Jae-myung stated that South Korea attaches great importance to its relations with China and is willing to take this meeting as an opportunity to consolidate the momentum of the full recovery and development of bilateral relations, seek common ground while reserving differences, and deepen the China-South Korea strategic partnership. South Korea respects China's core interests and major concerns and upholds the One-China principle. Following the talks, the two heads of state witnessed the signing of 15 cooperation documents in fields including science and technology innovation, ecological environment, transportation, and economic and trade cooperation. Lee Jae-myung conducted a state visit to China from January 4 to 7, marking the first visit by a South Korean president in eight years. He was accompanied by a large business delegation of over 200 members.

Personnel Updates

On January 12, the State Council appointed and removed state officials, naming Jiang Chenghua as Deputy Representative for International Trade Negotiations at the Ministry of Commerce (vice ministerial level). Public records indicate Jiang previously served as Deputy Director-General of the Treaty and Law Department and Director-General of the Industrial Security and Import-Export Control Bureau at the Ministry of Commerce.

On January 7, the State Council appointed Zhang Jianmin as Deputy Director of the National Data Bureau. Public records indicate Zhang previously served as Director of the Investment Department and Director of the Rural Economy Department at the National Development and Reform Commission.

On January 12, the 27th Session of the Standing Committee of the 16th Shanghai Municipal People's Congress reviewed and approved personnel appointments, appointing Shen Weihua as Director of the Shanghai Municipal Commission of Commerce. Public records indicate Shen Weihua previously served as Director of the Fair Trade Division (Legal Affairs Division) and Director of the Foreign Trade Development Division at the Shanghai Municipal Commission of Commerce, as well as Deputy Director of the Shanghai Municipal Commission of Commerce.

On January 8, the Sichuan Provincial Government issued a notice on cadre appointments and removals, appointing Zheng Ge as Deputy Director of the Sichuan Provincial Department of Commerce. Public records indicate Zheng Ge previously served as Director of the Office and Director of the Market Operations and Consumption Promotion Division at the Sichuan Provincial Department of Commerce.

Macroeconomic Policies

State Council Issues 12 Policy Measures to Accelerate Cultivation of New Growth Points in Service Consumption

On January 29, the General Office of the State Council released the “Work Plan for Accelerating the Cultivation of New Growth Points in Service Consumption,” proposing 12 measures across three areas: stimulating development vitality in key sectors, fostering growth momentum in potential sectors, and strengthening support and safeguards. The measures cover invigorating six key sectors: transportation services, domestic services, online audio-visual services, travel accommodation services, automotive aftermarket services, and inbound tourism consumption. They also aim to cultivate momentum in three potential sectors: performance services, sports event services, and emotional and experiential services. The plan further outlines safeguards in three areas—standardization systems, credit system development, and fiscal-financial support—to guide financial institutions in increasing credit support for business entities in these emerging service consumption sectors.

Nationwide Cross-Provincial Reimbursement for Fiscal E-Receipts by Year-End

On January 21, the Ministry of Finance issued the “Notice on Fully Implementing Cross-Provincial Reimbursement for Fiscal E-Receipts,” requiring all provinces to adopt unified standards and develop common functionalities to ensure the formal launch of cross-provincial reimbursement services by year-end. This initiative aims to achieve mutual recognition and convenient reimbursement of fiscal e-receipts across provinces. Key measures include: standardizing all fiscal electronic invoices into a unified format and integrating them into a national public service platform for nationwide data sharing; developing cross-province reimbursement modules to provide end-to-end online services including invoice collection, inquiry, verification, and reimbursement locking; and establishing a nationally unified digital account system for individual and corporate fiscal electronic invoices. All regions must complete system construction and integration by September 30.

Ministry of Finance Issues Personal Income Tax Preferential Policies for Innovative Enterprises

On January 21, the Ministry of Finance issued the Announcement on Continuing the Implementation of Relevant Tax Policies for the Pilot Phase of Domestic Depositary Receipt Issuance by Innovative Enterprises. It proposes that from January 1, 2026, to December 31, 2027, capital gains derived by individual investors from the transfer of innovative enterprise CDRs shall be temporarily exempt from individual income tax. Differential personal income tax policies will apply to dividend income earned by individual investors holding innovative enterprise CDRs, continuing support for the innovation-driven development strategy.

Five Ministries, Including Ministry of Finance, Optimize Layout of Port Duty-Free Shops, Add 41 New Locations to Boost Consumption

On January 21, five ministries including the Ministry of Finance jointly issued the “Notice on Matters Related to Port Duty-Free Shops for Inbound Travelers” to further leverage duty-free shops in supporting consumption growth. Adjustments have been made to the nationwide layout of port duty-free shops for inbound travelers: Duty-free shops will now be established at 52 ports nationwide, with 41 new shops added at ports including Wuhan Tianhe International Airport, while 11 existing shops at ports such as Haikou Meilan International Airport will be retained. Following the establishment of a new duty-free shop at Hengqin Port, eligible residents of Macao entering mainland China will be permitted to make purchases there. Concurrently, duty-free shops at certain ports where passenger traffic no longer warrants their operation, such as Qingdao Liuting International Airport, will be discontinued. The Notice requires local governments to assume primary responsibility, strengthen oversight to prevent illegal resale and smuggling of duty-free goods, and specifies the bidding process along with the six qualified bidders holding duty-free goods operating licenses.

Tax and Fee Preferential Policies for Community-Based Family Services Including Elder Care, Childcare, and Home Services Extended Through End of 2027

On January 20, the Ministry of Finance issued the “Announcement on Extending Tax Preferential Policies for Community-Based Family Services Including Elderly Care, Childcare, and Home Services.” Tax incentives—including VAT exemptions, corporate income tax reductions, and exemptions/reductions on deed tax, property tax, and urban land use tax—will be extended through the end of 2027. This directly lowers operational and asset costs for community-based elderly care, childcare, and home service providers, expands public service offerings, and reduces service prices.

Ministry of Finance Launches Special Guarantee Program for Private Investment

On January 20, the Ministry of Finance and multiple departments jointly issued the “Notice on Implementing the Special Guarantee Program for Private Investment.” This initiative aims to leverage the government-backed financing guarantee system to precisely channel financial resources toward private investment. The program has a total quota of 500 billion yuan, to be implemented over two years. Its core features include establishing a risk-sharing mechanism (where the government guarantee system bears no more than 80% of the risk and banks bear no less than 20%), raising the compensation rate cap from 4% to 5%, and implementing a package of cost-reduction measures such as fiscal capital injections and lowering guarantee fees (direct guarantee fees not exceeding 1%). The plan focuses on supporting eligible small and medium-sized enterprises in obtaining medium- to long-term loans for equipment procurement, technological upgrades, and consumption upgrades.

Ministry of Finance Releases Policy Documents on Comprehensive Interest Subsidy Measures

On January 20, the Ministry of Finance published four policy documents on fiscal interest subsidies on its official website. These include three policy refinements and one inaugural implementation document, covering personal consumption loans, equipment renewal loans, service industry entity loans, and SME loans. The interest subsidy policy for SME loans is newly implemented, applying to all fixed-asset loans extended to private SMEs investing in key industrial chains and their upstream/downstream sectors, as well as funds from new policy-based financial instruments used by private SMEs participating in projects.

Central Ministries Release Three Housing-Related Policies

• On January 17, the People's Bank of China and the National Financial Regulatory Administration jointly issued the “Notice on Adjusting the Minimum Down Payment Ratio Policy for Commercial Property Purchase Loans,” setting the minimum down payment ratio for commercial property purchases (including “commercial-residential dual-use properties”) at no less than 30%.

• On January 16, the Ministry of Finance issued the Announcement on Continuing the Implementation of Tax Preferential Policies for Public Rental Housing, extending tax reductions, fee exemptions, and subsidy tax exemptions related to public rental housing construction and operation until the end of 2027. This aims to ensure housing supply while alleviating the housing and tax burdens on low- and middle-income families.

• On January 14, the Ministry of Finance issued the Announcement on Continuing the Implementation of Individual Income Tax Policies Supporting Home Replacement Purchases. It clarified that from January 1, 2026, to December 31, 2027, taxpayers who sell their existing homes and repurchase housing within one year of the sale will receive a tax refund on the individual income tax paid on the sale of their existing home. This measure aims to reduce replacement costs for improvement-driven housing needs.

Tax Policies Encouraging Overseas Institutions to Invest in Domestic Bonds Extended

On January 13, the State Taxation Administration issued the “Announcement on Continuing the Implementation of Corporate Income Tax and Value-Added Tax Policies for Overseas Institutions Investing in the Domestic Bond Market.” From January 1, 2026, to December 31, 2027, corporate income tax and value-added tax on bond interest income earned by overseas institutions investing in the domestic bond market will be temporarily exempted.

Eight Ministries Jointly Regulate Special Anti-Money Laundering Precautionary Measures

On January 13, the People's Bank of China jointly issued the “Administrative Measures for Special Anti-Money Laundering Preventive Measures” to prevent money laundering, terrorist financing, and financing activities related to the proliferation of weapons of mass destruction. This establishes a financial sanctions and asset freezing mechanism targeting specific high-risk entities. The measures will take effect on February 16, 2026.

Tax Policies Clarified for Hetao Cooperation Zone: Self-Used Research Goods Exempt at First Line

On January 9, The Ministry of Finance issued the “Notice on Tax Policies for Goods Import and Export in the Shenzhen Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone.” Through a “first-line tax exemption, second-line tax payment, and flexible management within the zone” mechanism, it exempts eligible entities within the zone from customs duties and import-related VAT and consumption taxes on self-use research goods imported via the Shenzhen-Hong Kong “first line.” It also standardizes second-line tax collection and management as well as rules for goods circulation within the zone, reducing cross-border tax burdens and compliance costs for research activities.

VAT Export Rebates for Photovoltaic Products to Be Eliminated Starting April 1

On January 8, the State Taxation Administration issued the “Announcement on Adjusting Export Rebate Policies for Photovoltaic and Other Products.” Effective April 1, 2026, VAT export rebates for photovoltaic and other products will be abolished. From April 1, 2026, to December 31, 2026, the VAT export rebate rate for battery products will be reduced from 9% to 6%. Effective January 1, 2027, VAT export tax rebates for battery products will be abolished.

Comprehensive Pilot Tasks for Expanding Service Sector Opening in 9 Cities Including Dalian

On January 6, the Ministry of Commerce issued the “Comprehensive Pilot Tasks for Expanding Service Sector Opening in 9 Cities Including Dalian,” supporting Dalian, Ningbo, Xiamen, Qingdao, Shenzhen, Hefei, Fuzhou, Xi'an, and Suzhou in conducting comprehensive pilot programs for expanding service sector opening. The pilot tasks focus on 15 key areas, including opening up telecommunications services and related digital industries, enhancing openness and service guarantees in healthcare and wellness sectors, advancing international cooperation in finance, and boosting innovation in commerce, tourism, and culture. A total of 159 pilot tasks are proposed. The cities are encouraged to pursue differentiated explorations tailored to local conditions, creating complementary approaches in pilot fields, task content, and implementation pathways to foster mutual learning from innovative outcomes.

Ministry of Commerce Issues Notice Strengthening Export Controls on Dual-Use Items to Japan

On January 6, the Ministry of Commerce released the “Notice on Strengthening Export Controls of Dual-Use Items to Japan,” prohibiting all exports of dual-use items to Japanese military users, for military purposes, or to any other end-users that could enhance Japan's military capabilities.

State Taxation Administration Updates Investment Tax Guides for 85 Countries (Regions) with Significant Tax System Changes

On January 5, the State Taxation Administration released the “Country (Region) Investment Tax Guide,” updating tax systems for 85 countries and regions with significant recent tax reforms. New tax guides were added for Portugal, Chile, the Democratic Republic of the Congo, Zimbabwe, and Colombia. This helps “going global” enterprises promptly and comprehensively understand host country tax systems.

General Taxpayer Registration Management Updated; Tax Guidance Period System Abolished

On January 1, the State Taxation Administration issued the Announcement on Matters Concerning the Registration Management of General VAT Taxpayers. This clarifies the scope, sales threshold, timeframe, effective date, and procedures for general taxpayer registration, allowing taxpayers with sound accounting systems but below the threshold to voluntarily apply for registration. It also abolishes the long-standing “VAT General Taxpayer Tax Guidance Period Management” system. These measures ensure the smooth implementation of the VAT system and enhance the effectiveness of data-driven taxation.

Lottery-Style Invoice Pilot Program Launches

On January 1, the Ministry of Finance, Ministry of Commerce, and State Taxation Administration jointly issued the “Notice on Launching the Lottery-Style Invoice Pilot Program.” The six-month pilot will be conducted in approximately 50 prefecture-level and above cities. The program will organize prize draws for individual consumers who spend a specified amount on invoices across eight sectors: retail, catering, accommodation, cultural tourism, sports, and residential services. Each pilot city may independently set the minimum invoice value for eligibility (not less than 100 yuan), the winning rate, and the prize categories, with a single invoice reward capped at 800 yuan.

Shanghai Releases New Measures to Link Service Industry and Consumption

On January 13, the Shanghai Municipal Government issued the “Several Measures for Promoting the Coordinated Development of Service Industry Quality Enhancement and Consumption Expansion in Shanghai.” Focusing on key areas for linking service industry and consumption development, the measures target high-quality supply, growth sectors, and weak links to strengthen service industry reform, innovation, and supply quality. This aims to further leverage the service industry's positive role in boosting consumption.

Shanghai Releases New Measures to Encourage Foreign Investment and Optimize Business Environment

• On January 6, multiple Shanghai municipal departments jointly issued the “Several Measures of Shanghai Municipality to Encourage Domestic Reinvestment by Foreign-Invested Enterprises.” The document proposes 20 measures to reduce the cost and threshold for foreign enterprises to reinvest in Shanghai, thereby enhancing investment willingness and implementation efficiency. These include strengthening factor support and upgrading incentives, implementing tax policies for profit reinvestment, guiding foreign investors to reinvest in encouraged industries, simplifying foreign exchange registration and fund utilization procedures, broadening financing channels, and implementing requirements for building a unified national market. Special mention was made of accelerating the national comprehensive pilot program for expanding service sector opening-up, supporting reinvestment in areas such as value-added telecommunications, healthcare, biotechnology, cultural education, and finance.

• On January 1, the Shanghai Municipal Government issued the Action Plan for Accelerating the Creation of a World-Class Business Environment in Shanghai (2026). The plan proposes to promote the upgrading of regional headquarters of multinational corporations and foreign-funded R&D centers, encourage foreign investors to reinvest domestically, expand the service functions of the “Entry Pass” platform to enhance the convenience of work, life, and consumption for foreign nationals in Shanghai, include more enterprises and new products in the “white list” for the first-to-market economy of imported consumer goods, and continuously expand the scale of applying inspection facilitation measures for first-to-market imported consumer goods.

Huairou District, Beijing Releases 20 Measures to Optimize the Business Environment

On January 4, the Huairou District Government of Beijing released the “Measures for Further Optimizing the Business Environment in Huairou District.” These 20 measures aim to reduce the cost, shorten the cycle, and enhance the certainty of foreign (including foreign-funded) investment by streamlining approvals, delivering policies directly, facilitating financing and technology matching, and strengthening legal and service safeguards. This will increase the district's appeal for foreign investment and cross-regional investment.

Please click the following link to see more industry trends: 中富博睿政策月刊（2026年1月）

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