The latest from China & Hong Kong

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

Shenzhen has positioned itself as China’s leading centre for innovation, research and advanced manufacturing. For foreign companies, the city offers a wide range of incentives, funding schemes and policy support aimed at encouraging genuine R&D activity and long term investment. Accessing these benefits, however, requires careful structuring and close alignment with local regulatory expectations. This article explains what innovation and R&D incentives are available in Shenzh

In China, tax compliance is not a once-a-year exercise. It runs on a tight monthly, quarterly and annual rhythm, with limited tolerance for late or incomplete filings. For foreign-invested enterprises, missed deadlines can quickly lead to penalties, increased scrutiny or operational friction. As businesses plan for 2026, clarity on China’s tax calendar is a practical necessity, not an administrative detail. The Structure of China’s Tax Filing Cycle China’s tax system is built

China’s tax authorities have entered a new phase of enforcement. What began as participation in international information exchange has evolved into targeted domestic action. Across multiple regions, local tax bureaus are requesting that certain individuals conduct a self-inspection of overseas income for the previous three tax years, typically 2022 to 2024. This development signals a clear policy direction. China is moving beyond passive data collection under the Common Repor

China remains one of the most commercially significant markets in the world. In 2026, it continues to offer scale, depth of supply chains, advanced manufacturing capability, and access to a vast consumer base. At the same time, the operating environment has become more structured, more regulated, and more deliberate in how foreign participation is managed. For international businesses, success in China now depends less on speed of entry and more on clarity, preparation, and a

For international businesses, Shenzhen is often the first operational foothold in Southern China. The next stage of growth frequently involves expanding across the Greater Bay Area, a region designed to function as an integrated economic zone rather than a collection of separate cities. Scaling successfully requires thoughtful structuring across jurisdictions, employment models and compliance frameworks. This article explains how businesses can scale from Shenzhen into the Gr

Public holidays in Mainland China are never just diary dates. They affect factory output, logistics timelines, tax filing windows, banking access and senior decision-maker availability. For international businesses operating in or with China, understanding the 2026 holiday calendar early helps prevent avoidable disruption. While the final holiday arrangements are formally confirmed by the State Council closer to year-end, the core holiday structure is well established. Planni

China’s Value Added Tax framework is governed by the VAT Law and its supporting Implementation Regulations, which together define how VAT applies across sectors, transaction types and taxpayer categories. For Foreign Invested Enterprises operating in the People’s Republic of China, these regulations shape day to day compliance, cash flow management and cross border structuring decisions. While the VAT Law establishes the statutory foundation, the Implementation Regulations pr

Each year, companies operating in China are required to complete an annual filing of stamp tax on their business account books. While the obligation is well established, it is often overlooked because no physical stamps are involved and no payment may be due. Even so, the filing itself remains mandatory. Missing it can expose businesses to unnecessary compliance risk. This article sets out what the annual filing covers, who must submit it, and how to approach the process befo

Value Added Tax remains one of the most technical and closely scrutinised areas of China’s tax system. Day to day compliance issues often arise not from headline rules, but from practical questions around invoice timing, deemed sales, mixed transactions and cross border activities. Below we address a series of frequently asked questions that commonly arise for foreign invested enterprises and multinational groups operating in China. The answers reflect current regulatory inte

For foreign non-governmental organisations, operating in China brings both opportunity and responsibility. Annual compliance is not just a regulatory formality; it is the mechanism through which authorities assess whether an organisation can continue its activities, maintain funding channels, and preserve trust with local partners. This guide focuses on what foreign NGOs need to get right each year, why these requirements matter in practice, and how to approach them in a way

As companies enter 2026, the tax and audit environment in China continues to move in a clear direction: greater transparency, deeper data integration, and closer alignment between commercial activity and reported tax outcomes. For foreign-invested enterprises, this shift does not necessarily mean higher tax burdens, but it does mean higher expectations. Authorities are paying closer attention to consistency, documentation quality, and behavioural patterns over time. This arti

China remains a priority market for international businesses seeking scale, advanced manufacturing capability, and access to a large domestic customer base. Achieving sustainable success depends on three closely connected factors: protecting intellectual property, selecting the right investment structure, and understanding the incentives available for innovation and growth. Considered together, these elements shape both commercial opportunity and long term risk. Intellectual

For international companies entering or expanding in China, the structure chosen at the outset shapes tax exposure, compliance burden, speed to market, and long-term flexibility. The three most common entry routes are: Establishing operations in the Hainan Free Trade Port Using bonded zones or bonded logistics parks Entering the mainland market directly Each serves a different commercial purpose. This comparison is designed to help decision-makers understand where each model

For employers operating in China, performance appraisals are often seen as a practical way to manage pay increases, bonuses, and underperformance. In practice, however, linking performance outcomes to pay is one of the most legally sensitive areas of employment management. Handled well, it can support accountability and fairness. Handled poorly, it can expose an employer to disputes, back pay claims, or findings of unlawful wage reduction. This article explains how performanc

Setting up a company in China remains a viable route for international businesses seeking access to the domestic market, supply chains, or regional operations. At the same time, the registration process in 2026 places greater emphasis on accuracy, transparency, and alignment between what a company says it will do and what it actually does. This guide walks through the registration process step by step, highlights recent regulatory developments, and explains where foreign inve