Sinobravo Policy Express (June, 2025)

2025-07-16

Editor's note:

Driven by the effective implementation of macroeconomic policy combinations and their continued effectiveness, major indicators maintained stable growth in May. The vitality of the consumer market has gradually increased, foreign trade has continued to grow despite the pressure, new kinetic energy has grown, and the pace of economic transformation and upgrading has accelerated. Overall, China's economy has demonstrated strong resilience and vitality, with stable overall operation and continued consolidation of high-quality development. Under the “national subsidy” policy, consumers are more willing to pay for new products, pay for demand upgrade and quality upgrade. An institutional research report mentioned that the current consumer sector shows a clear trend of quality upgrading, while consumers are also paying for spiritual satisfaction and emotional value, and technological advances and iterations have given rise to a new direction of consumption, which has boosted the activity and upgrading of the consumer market.

Looking ahead, boosting consumption not only requires policy support and guidance, but also quality consumer supply. This requires brand merchants and operating platforms to strengthen their R&D and supply chain capabilities with deeper and more detailed consumer insights, and to constantly push forward with new innovations to provide commodities that meet consumer needs and have a high quality-price ratio, easy-to-purchase channels, and hassle-free consumer services, so as to enhance the willingness to consume, and to form a virtuous cycle of sustainable development. Consumers are willing to consume, and the industrial chain will benefit from it. A favorable consumption ecology will promote the sustainable development of the national economy.

Economic operation

On June 16, the National Bureau of Statistics (NBS) released China's economic operation data for May, with a number of indicators continuing to improve, and the national economy is generally stable and progressing steadily:
Stable growth in industrial production: in May, the value-added of the nation's industries above designated size increased by 5.8% year-on-year, and 0.61% year-on-year, and the equipment manufacturing industry and the high-technology manufacturing industry grew faster;
Accelerated growth of the service industry: in May, the service industry Production Index increased by 6.2% year-on-year;
Market sales rebounded significantly: in May, total retail sales of consumer goods amounted to 4132.6 billion yuan, an increase of 6.4% year-on-year;
Fixed asset investment continued to expand, and investment in the manufacturing industry grew faster: from January to May, the national fixed assets increased by 3.7% year-on-year; investment in the high-technology service industry increased by 11.6% year-on-year, and private investment remained flat year-on-year;
The import and export of goods continued to grow , trade structure continues to optimize: in May, the total import and export of goods 3809.8 billion yuan, up 2.7% year-on-year. Among them, exports amounted to 227.67 billion yuan, an increase of 6.3%; imports amounted to 153.31 billion yuan, a decrease of 2.1%;
Consumer prices running low: in May, the national consumer price (CPI) fell by 0.1% year-on-year, the factory price of industrial producers fell by 3.3% year-on-year, and the purchase price fell by 3.6% year-on-year;
Employment situation is stable in general: from January to May The national urban survey unemployment rate averaged 5.2% in January-May. in May, the national urban survey unemployment rate stood at 5.0%, a decrease of 0.1 percentage points from the previous month.

Policy environment
High-level Interaction

On June 24, President Xi Jinping met with Singaporean Prime Minister Wong Chor Chye. Xi emphasized that China welcomes Singapore's continued deep integration into China's development, and the two sides should deeply push forward cooperation in building the “Belt and Road”, create landmark achievements in the fields of digital economy, green development and artificial intelligence, and push forward the quality and upgrading of major projects, so as to continue to write a new chapter of high-quality cooperation.
On June 20, President Xi Jinping met with New Zealand Prime Minister Lacson. Xi emphasized that China and New Zealand should put cooperation in a more prominent position in bilateral relations, give full play to their complementary advantages, deepen trade and investment cooperation, tap the potential of cooperation in science and technology innovation, climate change response, infrastructure and other areas, and strengthen education, culture, youth, civil and local exchanges to enrich the connotation of bilateral relations.
On June 19, President Xi Jinping and Russian President Vladimir Putin had a phone call. Xi emphasized that China is willing to continue to strengthen communication and coordination with all parties, build up synergy, administer justice and play a constructive role in restoring peace in the Middle East. The two heads of state highly valued China-Russia political mutual trust and high-level strategic cooperation, and agreed to maintain close high-level exchanges, promote cooperation in various fields, and push forward the in-depth development of China-Russia comprehensive strategic cooperative partnership.
From June 16 to 18, President Xi Jinping attended the second China-Central Asia Summit in Astana, Kazakhstan. In his keynote speech titled “Carrying forward the ”China-Central Asia Spirit“ and Promoting High-Quality Development of Regional Cooperation”, Xi emphasized China's willingness to work with Central Asian countries to carry out higher-quality cooperation, deepen the integration of interests and realize common development. During the summit, Xi held bilateral meetings with leaders of five Central Asian countries.
On June 10, President Xi Jinping spoke by phone with South Korean President Lee Jae-myung. Xi emphasized the need to strengthen exchanges at all levels and in all fields to enhance strategic mutual trust; to closely cooperate bilaterally and coordinate multilaterally, jointly safeguard multilateralism and free trade, and ensure the stability and smooth flow of the global and regional industrial chain supply chain; and to deepen people-to-people exchanges, deepen mutual understanding, and strengthen the foundation of public opinion.
On June 5, President Xi Jinping and U.S. President Donald Trump had a phone call. Xi pointed out that the two sides should make good use of the economic and trade consultation mechanism that has been established, uphold an equal attitude, respect each other's concerns and strive for win-win results. The U.S. side should take a realistic view of the progress made and revoke the negative initiatives imposed on China. The two sides should enhance exchanges in various fields, including diplomacy, economic and trade, military affairs and law enforcement, so as to increase consensus, minimize misunderstanding and strengthen cooperation.
On June 25, Premier Li Qiang attended the opening ceremony of the 2025 Summer Davos Forum and delivered a speech. Li Qiang pointed out that the Chinese government will continue to build a first-class business environment that is market-oriented, rule of law-oriented and internationalized, and will always keep its arms open to warmly welcome enterprises from all over the world to invest in China, plough into China, and develop together with China to create a better future.
On June 12, Premier Li Qiang met with European Central Bank President Christine Lagarde. Li Qiang pointed out that this year, China has implemented more active and proactive macro policies, increased counter-cyclical adjustment, and taken various measures to expand domestic demand and boost consumption, which is fully capable of hedging against the impact of external unfavorable factors. China will firmly expand opening up and share development opportunities with other countries.
On June 3, Premier Li Qiang met with a delegation led by Yohei Kono, president of the Japan Association for the Promotion of International Trade. Li Qiang emphasized that China will firmly expand high-level opening up and welcome more foreign-funded enterprises, including Japanese enterprises, to develop in China. It is hoped that the Japan Association for the Promotion of International Trade will continue to play an active role in promoting the deepening of economic and trade cooperation between the two countries and enhancing friendship and mutual trust, and it is also welcomed to strengthen exchanges between all circles in Japan and China in the fields of culture, tourism, sports, youth, and ecological and environmental protection.
On June 5, Vice President Han Zheng met with the U.S. delegation to the U.S.-China High-Level Track II Dialogue. Han Zheng expressed his hope that the U.S.-China High-Level Track II Dialogue will continue to bring together the insights of knowledgeable people from both countries, enhance the understanding of China by all sectors in the U.S., and jointly promote the stable, healthy and sustainable development of U.S.-China relations.
On June 25, Vice Premier of the State Council He Lifeng met with Margrethe Ludwig, Chairman of the Board of Directors of the Dutch Ludwig Group. He said that China is striving to create a stable and open trade and business environment, and welcomes more foreign-funded enterprises, including the Ludwig Group, to deepen their pragmatic cooperation with China and to share the development opportunities.
On June 19, Vice Premier He Lifeng attended the opening ceremony of the 6th Qingdao Summit of MNC Leaders and delivered a speech. Mr. He pointed out that China has a large domestic market and the most complete industrial system in the world, and has demonstrated strong economic development resilience and growth potential, making it an ideal, safe and promising investment destination for multinational corporations.
From June 9 to 10, Vice Premier He Lifeng held the first meeting of the China-US Economic and Trade Consultation Mechanism with U.S. Secretary of the Treasury Ben Bessent and Secretary of Commerce Lutnick and Trade Representative Greer. The two sides reached an agreement in principle on the implementation of the important consensus of the June 5 call between the two heads of state and the framework of measures to consolidate the results of the Geneva economic and trade talks, and made new progress in resolving the mutual economic and trade concerns of the two sides.
On June 8, Vice Premier He Lifeng met with Chancellor of the Exchequer Reeves. He said that China and the UK should work together to implement the important consensus between President Xi Jinping and Prime Minister Starmer, promote the results of the Sino-British Economic and Financial Dialogue, further deepen exchanges and cooperation in various fields of economy and finance, promote mutual benefits and win-win results, and maintain the healthy and stable development of China-UK economic relations.
On June 19, Minister of Commerce Wang Wentao held video talks with Commissioner for Trade and Economic Security of the European Commission Shevchowicz. The two sides conducted consultations on trade remedy cases such as the countervailing duty case on electric vehicles, export control, market access and other economic and trade issues, and both sides agreed that they should make joint efforts, move in the opposite direction, make good economic and trade preparations for the important agenda of China and Europe this year, and push forward the healthy, stable and sustained development of China-EU economic and trade relations.
On June 9, Minister of Commerce Wang Wentao met with UK Secretary of State for Trade and Industry Reynolds. Wang Wentao said that China will further expand its opening up to the outside world at a high level, and welcomed British enterprises to continue to invest and prosper in China and share the opportunities of the Chinese market.
On June 3, Minister of Commerce Wang Wentao met with Canadian Minister of Trade and Industry Seydoux. The two sides had pragmatic and frank communication on China-Canada economic and trade relations, safeguarding the multilateral trading system and economic and trade issues of their respective concern.
On June 3, Minister of Commerce Wang Wentao met with WTO Director General Iweala. Wang Wentao said that China advocates focusing on the development dimension and pushing the 14th WTO Ministerial Conference to achieve results in agriculture, development and other areas. The two sides had an in-depth exchange of views on the critical situation of global trade and WTO reform.
On June 3, Minister of Commerce Wang Wentao met with Australian Trade Minister Farrell. Wang Wentao said, give full play to the potential of the China-Australia FTA, join hands to promote the bilateral economic and trade relations to achieve new development, and play the role of stabilizer and propeller for building a more mature, stable and fruitful China-Australia comprehensive strategic partnership. The two sides held pragmatic and constructive discussions on deepening China-Australia economic and trade relations and strengthening multilateral and regional economic and trade cooperation.
On June 23, Mr. Chen Jian'an, Vice Chairman of CCPIT, met with Richard Nash, Global Vice President and Head of Global Government Relations of PayPal. The two sides held in-depth exchanges on topics such as promoting exchanges between China and the US business community, jointly serving the internationalization and development of Chinese and foreign enterprises, and promoting international cooperation in the industrial chain and supply chain.

China's Outward Direct Investment (ODI)

State Council: The State Council has issued the Opinions on Deepening Reform, Innovation and Opening Up of Shenzhen Comprehensive Reform Pilot Program, which aims at cracking the system and mechanism barriers in the field of education, science and technology talents, strengthening the in-depth integration of the innovation chain and the capital chain and the talent chain, expanding the new avenues of cooperation between Guangdong, Hong Kong and Macao in new scenarios and new carriers, and building a modernized, internationalized and innovative city. We will deepen reform and expand opening-up at a higher starting point, higher level and higher goal, create more fresh experiences that can be replicated and popularized, and give better play to Shenzhen's role as an important engine in the construction of the Guangdong-Hong Kong-Macao Greater Bay Area and its role as a radiator and driving force in the national chess game.
General Administration of Customs: Drafted the Announcement on the Implementation of China-Ecuador Customs Mutual Recognition of Accredited Operators (AEO) (Draft for Public Comments) and publicly solicited comments. The content of the mutual recognition facilitation measures and the way of filling in the AEO code will be publicly explained, and AEO enterprises will be guided to fully and accurately enjoy the mutual recognition facilitation.
State Administration of Financial Supervision and Administration: Jointly issued the Action Plan on Supporting the Construction of Shanghai International Financial Center to continuously optimize cross-border financial services and enhance the international operation level of financial institutions; adhere to the concept of inclusive and prudent supervision, support the organization and implementation of financial innovation pilots focusing on the service of the real economy and opening up to the outside world and other key areas, and explore the implementation of the due diligence exemption mechanism for financial innovation pilots.
Ministry of Commerce: From January to May 2025, China's foreign non-financial direct investment amounted to 61.6 billion U.S. dollars, a year-on-year increase of 5.6%. Among them, non-financial direct investment in countries along the “Belt and Road” amounted to 15.52 billion U.S. dollars, an increase of 20.8% year-on-year. The newly signed contract value of foreign contracted projects amounted to 98.68 billion U.S. dollars, an increase of 13% year-on-year.
State Administration of Foreign Exchange (SAFE): drafted the Circular on Matters Relating to the Reform of Foreign Exchange Management of Deepening Cross-border Investment and Financing (Draft for Public Comments) and publicly solicited comments. It further facilitates business entities to carry out cross-border investment and financing activities, deepens the reform of foreign exchange management of cross-border investment and financing, expands high-level opening up, and optimizes the business environment.
Guangdong: The Shenzhen Municipal Bureau of Commerce jointly issued the Implementation Plan for Promoting the High-Quality Development of Trade in Services and Digital Trade in Shenzhen, which mentions, among other things, to improve the policies for promoting the development of games going overseas, to establish a public service platform for games going overseas, to support enterprises to set up overseas research and development centers and distribution channels, and to enhance the international influence of game brands.
Shanghai: The Futures Exchange issued the Measures for the Administration of Overseas Special Participants (Public Consultation Version) and publicly solicited opinions. It will carry out systematic internationalization transformation of the existing business rules and comprehensively introduce the full-process participation of overseas participants in the domestic futures market. Serving the national strategy of opening up to the outside world at a high level, boosting the construction of Shanghai as an international financial center, and enhancing the influence of important commodity prices. The Stock Exchange drafted the Self-Regulatory Guidelines for Listed Companies on the Kechuang Board No. 5 - Kechuang Growth Layer (Draft for Public Comments) and the Guidelines for the Application of the Rules for Review and Examination of Issues and Listings No. 7 - Pre-vetting (Draft for Public Comments) and publicly solicited comments. To standardize the daily supervision of companies listed in the Sci-Tech Growth Layer of the Sci-Tech Board, to protect the legitimate rights and interests of investors, and to better serve scientific and technological innovation and the development of new-quality productivity. Support the issuance and listing of high-quality unprofitable science and technology enterprises, and enhance the inclusiveness and adaptability of the system.
Fujian: the Department of Commerce jointly issued “on further strengthening efforts to support the high-quality development of Customs advanced certified enterprises a number of measures”, put forward 24 initiatives aimed at the in-depth implementation of the national optimization of the business environment work requirements, and further support the high-quality development of Customs advanced certified enterprises to strengthen departmental synergy and linkage, the formation of synergies to enhance the level of precision services to enterprises, and to promote the quality of foreign trade in the stable.
Guangxi: the regional Department of Commerce jointly issued the “Guangxi to promote high-quality and innovative development of trade in services and digital trade a number of measures”, in line with the global trend of sustained and rapid growth of trade in services and digital trade, expanding the high level of opening up to the outside world, and promote the reform and innovative development of digital trade as an opportunity, focusing on perfecting the development of trade in services and digital trade platform carriers, cultivate and grow the characteristics of the field, and stimulate the growth of trade in services and digital trade. New Dynamic Energy.

Foreign Direct Investment (FDI)

The People's Bank of China (PBOC) has jointly issued the “Several Measures on Financial Support for Fujian's Exploration of a New Road of Cross-Strait Integrated Development and Construction of a Cross-Strait Integrated Development Demonstration Zone”, which puts forward 12 policies and measures to support the pilot project of opening up a high level of cross-border trade in Fuzhou, Xiamen, and Quanzhou, to support the facilitation of cross-border investment and financing under the capital account, and to comprehensively strengthen the financial supervision and effectively prevent and defuse the financial risks. It is of great significance to deepen the construction of cross-strait integrated development demonstration zone and promote high-level opening up of finance.
SFC: Issued the Announcement on the Participation of Qualified Foreign Institutional Investors and Renminbi Qualified Foreign Institutional Investors in Stock Option Transactions, which stipulates that qualified foreign investors are permitted to participate in the trading of exchange-traded open-ended index fund options (ETF options) listed and traded on trading venues approved and established by the State Council or the Securities and Futures Commission (SFC). Qualified foreign investors participating in ETF options trading shall comply with the trading rules of the SEC and the relevant trading venues, and the purpose of trading is limited to hedging transactions.
National Development and Reform Commission (NDRC): jointly issued the “Notice on Issues Related to Fees for Mainland Travel Permits for Taiwan Residents”, from July 1, 2025 to December 31, 2027, exempting Taiwan's “first-come-first-someone” from the fee for the Mainland Travel Permit for Taiwan Residents. Further expand cross-strait exchanges and cooperation to attract Taiwan compatriots to the mainland.
Ministry of Foreign Affairs (MFA): decided to expand the scope of visa-free countries, from June 9, 2025 to June 8, 2026, Saudi Arabia, Oman, Kuwait, Bahrain holders of ordinary passports on a trial basis visa-free policy. 4 countries holders of ordinary passports to come to China for doing business, travel and tourism, visiting relatives and friends, exchanges and visits, and transit of not more than 30 days, can enter without a visa.
National Immigration Administration: Announcement on the Addition of Indonesia as an Applicable Country for China's 240-Hour Transit Visa Waiver Policy was issued, starting from June 12, 2025, Indonesian citizens can apply the 240-hour transit visa waiver policy to come to China conveniently, and the scope of applicable countries for China's 240-hour transit visa waiver policy increased to 55 countries.

Taxation

State Council: published the Provisions on Reporting Tax-Related Information of Internet Platform Enterprises, aiming to standardize the reporting of tax-related information of operators and practitioners within the platform by Internet platform enterprises to tax authorities, enhance the effectiveness of tax service and management, protect the legitimate rights and interests of taxpayers, and create a fair and uniform tax environment.
Ministry of Finance (MOF): issued the Circular on Matters Concerning the Formulation of the List of Advanced Manufacturing Enterprises Enjoying the VAT Credit Policy for the Year 2025, to support scientific and technological innovation and the development of the manufacturing industry, and to do a good job in formulating the list of advanced manufacturing enterprises enjoying the VAT credit policy for the year 2025.
State Administration of Taxation (SAT): issued the Measures for the Administration of Tax and Fee Payment Credit to standardize the management of tax and fee payment credit, promote honesty and self-discipline of taxpayers and fee payers, improve tax law compliance, and promote the construction of a social credit system. Issued the Guide to Departure Tax Refund for Overseas Travelers, which introduces the tax refund items, conditions for tax refund, tax refund currencies, and the tax refund processing procedures for departure tax refund. It further facilitates overseas travelers to apply for tax refund.
Tianjin: The municipal government issued the Circular of the General Office of the Tianjin Municipal People's Government on the Issuance of Several Measures for Tianjin Municipality to Continuously Build a Pro-Business and Ancillary Quality Service Environment, proposing to improve the convenience of tax payment. Comprehensively promote the new mode of digital tax counseling service. Deepening the brand construction of “Tax Road Pass - e-Enterprise Jin Cai” to facilitate cross-border tax payment services. Promoting the application of fully digitized electronic invoices. When enterprises' demand for invoices exceeds the amount automatically assigned by the system due to changes in actual business conditions, enterprises with low tax risk, high tax credit rating and good actual business conditions will be given a higher amount of immediate processing response. Promoting the implementation of the policy of authorized collection of enterprise income tax for cross-border e-commerce retail exports.
Guangdong: The Shenzhen Municipal Finance Bureau jointly issued the Implementation Measures for Preferential Policies on Individual Income Tax in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, proposing to exempt Hong Kong residents working in the zone from the portion of their individual income tax liabilities that exceeds Hong Kong's tax liabilities. The amount of individual income tax exemption is calculated on the basis of one tax year. The tax year starts from January 1 and ends on December 31 of the Gregorian calendar.
USA: President Trump announced an increase in tariffs on imported steel and aluminum and their derivatives from 25% to 50%.

Please click the following link to see more industry trends: 中富博睿政策速递（2025年6月刊）

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