The latest from China & Hong Kong

For international groups operating across Hong Kong and Mainland China, getting the structure and reporting right is fundamental. While the two jurisdictions are closely connected commercially, they remain distinct from a legal, tax and regulatory perspective. Misunderstanding that distinction is where many compliance and operational issues arise. This article sets out how cross border operations are commonly structured, how activities should be reported, and what companies s

For foreign companies operating in China, tax compliance is not limited to filing returns and paying liabilities on time. Chinese tax authorities increasingly assess businesses on their overall “tax health”, a broad view that looks at accuracy, consistency, internal controls, and behaviour over time. This guide explains what tax health means in the Chinese context, how it is assessed, and how foreign companies can build a stable, defensible position that supports growth, audi

Choosing where to establish a Foreign Invested Enterprise in China is a strategic decision with long term consequences. While cost savings often dominate early discussions, the city of registration directly affects tax treatment, regulatory exposure, labour risk, operational efficiency, and the ability to scale or exit cleanly. China should not be viewed as a single, uniform market. National laws are implemented locally, and the same business model can face very different out

For many international businesses, Shenzhen has become a preferred gateway into the Chinese market. Its proximity to Hong Kong, strong regulatory infrastructure and concentration of innovation driven industries make it well suited to phased entry and controlled expansion. Choosing Shenzhen as a starting point allows investors to test the market while maintaining flexibility on structure, staffing and capital commitment. This article outlines how businesses can use Shenzhen as

From 18 December 2025, China’s trade and customs framework will enter a new phase with the full implementation of the import tax exemption regime at the Hainan Free Trade Port. Under this framework, goods imported directly from overseas into Hainan — crossing the so-called “first line” — will, in most cases, be exempt from import tariffs, import-stage VAT, and consumption tax. This is not a pilot or a limited incentive. It represents a structural shift in how China facilitate

China’s compliance environment is shifting at a pace that requires foreign-invested enterprises to rethink how they manage regulatory risk. The theme for 2026 is clear: compliance is no longer a checklist of obligations. It is a strategic capability — one that can either support sustainable growth or expose an organisation to operational delays, penalties or reputational damage. For companies already operating in China, the next year brings sharper enforcement, more data-driv

Operating a business in China comes with tremendous opportunities—but it also comes with strict legal obligations. One of the most important responsibilities for any company is completing the annual compliance procedure, which is mandatory for all registered entities. Missing deadlines or submitting incorrect filings can lead to fines, restrictions, or even suspension of your business license. What Is China’s Annual Compliance Procedure? China’s annual compliance process typi

As 2026 unfolds, incorporating in China remains a compelling—but complex—move for many foreign companies seeking growth in the world’s second-largest economy. Recent regulatory reforms, technological advances and evolving legal frameworks have changed the path to incorporation. Below is a guide to the “blueprint” investors should follow and the key strategic decisions they need to make when setting up a company in China in 2026. What’s Changed and What’s New by 2026 The Forei

Hainan is no longer simply a regional development zone. From December 2025, it becomes a strategic platform for foreign businesses looking to enter, expand, or restructure their presence in China. Used properly, Hainan can act as a controlled interface between international markets and mainland China — reducing friction while preserving compliance. This article focuses on how businesses are using Hainan in practice. Hainan’s strategic positioning Hainan’s model deliberately s

Over the past year, both Mainland China and Hong Kong Special Administrative Region (Hong Kong SAR) have significantly updated their visa and talent‑mobility regimes. For global firms looking to expand or deepen their presence in Asia, these changes sharpen the business case for using China/Hong Kong as hubs — but also demand careful strategy. What’s new: Key Visa & Talent‑Mobility Updates China’s expanded cross‑border talent endorsement & transit policies In November 2025, C

Year-end close in China is often viewed as a technical requirement — a box-checking exercise that sits with finance and compliance teams. But as China’s regulatory landscape becomes more integrated, data-driven and enforcement-focused, year-end procedures have taken on a different strategic role. They now act as an annual stress-test of whether a company’s China operations are aligned with its global governance, risk and growth ambitions. For foreign-invested enterprises, thi

We’re almost at the end of 2025, and one thing has become clear: business in China is constantly evolving, and the pace of change doesn’t seem to be slowing. Over the past few months, I’ve had the chance to speak with a wide range of clients, from startups entering the market to multinational corporations managing complex operations, and the conversations all come back to one question: what’s actually important right now? Businesses are asking this because the environment is

For companies entering or expanding within China, securing trademark protection is one of the most important early steps. China’s “first-to-file” system means that the first party to register a trademark—rather than the first to use it—typically gains legal ownership. This creates both an opportunity and a risk: well-prepared businesses can protect their brand quickly and effectively, while those who delay may face disputes, costly buybacks, or brand restrictions. Trademark r

Finding and retaining the right people in China has always required a tailored approach. As the country’s workforce continues to evolve, the traditional hiring landscape is shifting in ways that foreign-invested companies must understand to remain competitive. In 2026, the emphasis is on digital recruitment, skills-based hiring, rising compliance expectations, and a more mobile workforce. These changes bring both opportunities and challenges for organisations looking to secur

Client Background A mid-sized international company operating in China had been managing its compliance internally for several years. While the company was growing steadily, it had not allocated sufficient time or resources to prepare for the annual compliance requirements. The Challenge As the 2025 fiscal year-end approached, the client realized that critical documents were missing, financial records were incomplete, and deadlines for audit coordination and tax reporting wer

China’s regulatory environment continues to reshape the expectations placed on boards, shareholders and senior leaders. While the core principles of governance have remained stable for years, the 2026 cycle marks a moment where China is signalling a clear shift: businesses will be judged not only on operational success, but on the quality, transparency and consistency of their decision-making. For foreign-invested enterprises, this is more than regulatory housekeeping. It inf

Expanding into Hong Kong and mainland China offers enormous potential for global firms—but it also brings a maze of regulatory, tax, and HR complexities. Many businesses hesitate to commit to setting up a full legal entity before validating their market strategy or building a local team. That’s where an Employer of Record (EOR) model can transform how you scale. What Is an EOR Model? An Employer of Record acts as the legal employer for your local staff while you retain full c

As we move into 2026, global investors are once again rethinking their China strategies. After several years of global economic volatility, policy evolution, and shifting trade relations, the landscape for foreign investment in China has transformed. China remains one of the world’s most significant markets—but success now depends on precision, compliance, and strategic alignment. For many businesses, this is the year to reassess, realign, and reinforce their China presence.

For years, foreign enterprises have treated China’s year-end financial and tax processes as technical events — predictable, cyclical, and largely contained within finance and compliance teams. That era has ended. As China’s regulatory systems become more integrated, more data-driven and more assertive, year-end reviews now carry strategic weight. They reveal not only the accuracy of financial reporting, but the integrity of governance, the maturity of internal controls and th

China’s visa environment continues to evolve as the country focuses on economic revitalisation, foreign investment, and controlled cross-border movement. For individuals and companies operating in China, keeping up with the latest visa requirements is essential to avoid delays, compliance issues, or unexpected disruptions to business activities. By 2026, visa processes are increasingly digital, more regulated, and structured to encourage long-term, skilled foreign engagement