China’s Ministry of Industry and Information Technology has introduced updated measures governing the certification and review of technology contracts. The new framework, effective from 1 March 2026, reshapes how agreements relating to technology development, transfer, licensing, consulting and technical services are examined and recognised. For businesses operating in China’s technology sector or engaging in cross-border technology cooperation, the revised rules bring greate

China’s 2026 Value-Added Tax (VAT) Law introduces a more structured framework for determining when VAT obligations arise. One of the most notable changes is the clarification and adjustment of VAT thresholds, including new rules governing monthly and quarterly reporting as well as specific per-transaction thresholds. For foreign enterprises operating in China, trading with Chinese counterparties, or managing China-related supply chains, these changes affect how and when VAT l

Hong Kong’s network of Comprehensive Avoidance of Double Taxation Agreements (DTAs) continues to expand, reinforcing the city’s position as a leading international business and financial centre. As of 2026, Hong Kong has reached a new milestone in the development of its treaty network, with additional agreements signed, several entering into force, and further negotiations underway. For international businesses using Hong Kong as a regional headquarters, holding structure, or

Shenzhen has introduced stricter enforcement of age thresholds for foreign work permit renewals, with new measures taking effect in 2026. Under the updated approach, applicants aged 60 and above applying under Category B or Category C work permits are now significantly more likely to face rejection when seeking renewals. The development reflects a broader effort by Chinese authorities to standardise employment policies for foreign nationals while reinforcing workforce managem

China has intensified enforcement of salary-based requirements for foreign work permits, affecting both new applications and permit renewals. The updated enforcement approach places greater emphasis on salary thresholds as a key factor in determining eligibility for foreign employment. For companies employing foreign professionals in China, the development signals increased scrutiny of compensation levels and documentation, alongside broader compliance obligations linked to w

Chinese New Year remains the most significant holiday period in Mainland China, with material impact on workforce availability, supply chains and regulatory processing timelines. For 2026, businesses operating in or trading with China should begin preparation well in advance to mitigate disruption and protect operational continuity. For foreign-invested enterprises, regional headquarters and trading companies, proactive planning is essential to manage workforce absence, produ

For foreign-invested enterprises and domestic companies operating in China, geographic expansion often raises a fundamental question: should a new legal entity be established in each city, or is a branch office the more efficient structure? Once a Limited Liability Company has been incorporated in China, establishing branch offices is typically the most straightforward and cost-effective method of expanding operations across different cities. Compared to setting up a new comp

China’s economy recorded 5.0% GDP growth in 2025, meeting official policy targets despite continued structural pressures and a complex global backdrop. The result reflects a combination of fiscal support, industrial policy direction and targeted stabilisation measures, rather than broad-based cyclical acceleration. For international investors and foreign-invested enterprises operating in China, the headline growth figure is less important than understanding the composition an

Shenzhen’s rapid commercial pace brings opportunity alongside close regulatory attention. For foreign invested enterprises, day to day operations must align with tax rules, VAT administration and local compliance standards that are actively enforced. Businesses that treat compliance as a background task often face disruption during audits, banking reviews or corporate changes. This article explains how to manage tax, VAT and ongoing compliance when operating in Shenzhen, with

Shenzhen has developed one of the most active employment markets in Mainland China, driven by technology, manufacturing, professional services and international trade. For foreign invested enterprises, managing people in Shenzhen requires a clear understanding of local labour rules, payroll mechanics and mandatory social insurance. Missteps in these areas often lead to disputes, penalties or operational disruption. This article outlines the practical human resources and payro

The 2026 Individual Income Tax subsidy programme under the Greater Bay Area framework has formally commenced in Shenzhen. The initiative remains one of the most commercially relevant talent incentives available to foreign professionals and high-end domestic talent working in southern China. For employers and internationally mobile executives, understanding the operational mechanics of the subsidy is essential. While often referenced as a headline policy, the practical applica

Hainan ist längst nicht mehr lediglich eine regionale Entwicklungszone. Ab Dezember 2025 entwickelt sich die Insel zu einer strategischen Plattform für ausländische Unternehmen, die ihren Markteintritt in China planen, ihre Präsenz ausbauen oder bestehende Strukturen neu ausrichten möchten. Bei sachgerechter Nutzung kann Hainan als kontrollierte Schnittstelle zwischen internationalen Märkten und dem chinesischen Festland dienen und dabei Reibungsverluste reduzieren, ohne die

Despite shifting global supply chains, tighter regulation in certain sectors, and wider geopolitical scrutiny, China continues to attract international capital. For many overseas groups, the country remains commercially compelling not because conditions are simple, but because the underlying fundamentals continue to support scale, margin, and long-term market access. This article outlines the structural reasons China retains its position as a globally competitive investment d

When expanding into China, foreign companies typically face a fundamental structural decision: operate without a local entity and risk creating a Permanent Establishment (PE), or proactively set up a legal entity in China. While both approaches enable market access, they differ significantly in terms of tax exposure, compliance burden, operational flexibility, and long-term risk. Understanding the distinction is critical to avoid unexpected tax liabilities and regulatory chal

For companies operating in Hong Kong, compliance is not a once-a-year formality. It is an ongoing framework that underpins banking relationships, tax certainty, director protection and long-term commercial credibility. As regulatory expectations continue to tighten, 2026 is an appropriate point for directors and shareholders to step back and review whether their Hong Kong entities remain fully aligned with current requirements. This article sets out the core areas that should

Expanding into Mainland China remains a significant strategic decision for international businesses. While the opportunity is substantial, the incorporation process is highly regulated and requires careful planning from the outset. Structure, compliance, tax positioning, governance, and operational readiness must all be addressed before a company can trade effectively. With more than four decades of experience supporting inbound investment into China and Hong Kong, Woodburn A

Shenzhen continues to set the pace for regulatory reform in Mainland China. As a pilot city for digital governance, tax administration reform and cross border data oversight, compliance expectations in Shenzhen are tightening faster than in many other regions. For businesses operating locally, 2026 brings a set of emerging obligations that require early preparation rather than reactive adjustment. This article outlines the main compliance developments expected to affect compa

Trademark registration in China is only the starting point. Ongoing, compliant use of a registered trademark is essential to preserve rights, defend against challenges, and reduce regulatory exposure. Many overseas companies assume that registration alone is sufficient. Under Chinese law, this assumption creates risk. This article outlines what constitutes standard trademark use in China, the compliance requirements that follow registration, and the legal risks that arise whe

China’s import and export performance in 2025 reflects a year shaped by global economic adjustment, supply chain recalibration and evolving trade relationships. Despite external pressures, China remains the world’s leading trading nation, with total trade volumes demonstrating structural resilience across manufacturing, technology and energy sectors. For international businesses engaged in sourcing, distribution or investment in China, understanding full-year trade data and f

China’s regulatory environment continues to evolve at pace. For international groups operating in, or trading with, the PRC, compliance is no longer limited to tax filings and annual reporting. Authorities are increasingly focused on economic substance, data governance, ESG accountability and cross-border transparency. For 2026 and beyond, businesses should prepare for a more structured, statute-driven compliance framework supported by active enforcement. 1. Indirect Tax Refo