Sinobravo Policy Express (May, 2025)

2025-06-11

Editor's note:
The value-added of the intelligent unmanned aerial vehicle manufacturing industry grew by 74.2%, the production of new energy vehicles increased by 38.9%, and the retail sales growth rate of various household appliances and furniture products in enterprises above the designated size exceeded 20%...On May 19, the National Bureau of Statistics released the economic performance report for April 2025. Despite the increasing external shocks and the compounded internal difficulties and challenges, China's economy has withstood the pressure and maintained stable growth, continuing its trend of positive development.
A series of financial policies have been introduced, with the central bank and other departments working hard to stabilize the market and manage expectations through measures such as reserve requirement ratio cuts, interest rate reductions, and structural monetary policy tools. The State Council issued the "Opinions on Continuously Promoting Urban Renewal Actions," proposing to "innovate consumption scenarios, empower urban renewal through the cultural and tourism industry," and "promote the transformation and upgrading of consumption infrastructure." As the incremental and stock policies gradually take effect, they continuously invigorate market vitality.
Te international environment has undergone complex changes, and the United States has taken a series of unilateral measures to impose high tariffs on China, severely impacting Sino-U.S. economic and trade relations. In response, China has taken resolute and powerful countermeasures. From May 10 to 11, high-level Sino-U.S. economic and trade talks were held in Geneva, Switzerland, where both sides agreed to significantly reduce tariffs. Considering that the United States is still imposing a 30% tariff on Chinese products and adding the previous 301 tariffs, the pressure faced by export enterprises is obviously greater than before Trump took office. And from past experience, there may still be twists and turns during the negotiation process. Therefore, although the current situation has eased, it is still far from optimistic, and our country still needs to strengthen counter-cyclical adjustments.

Economic operation

On May 19, the National Bureau of Statistics released the economic operation data for China in April. Multiple indicators showed stable growth, and the national economy demonstrated resilience and stable operation:
Faster growth in industrial production: in April, the national value-added of industry above designated size increased by 6.1% year-on-year and by 0.22% year-on-year, with better growth in the equipment manufacturing industry and high-tech manufacturing industry;
Stable growth in the service sector: in April, the production index for the service sector grew by 6.0% year-on-year;
Stable growth in market sales: in April, total retail sales of consumer goods amounted to RMB 3,717.4 billion, up 5.1% year-on-year;
Investment in fixed assets continued to expand, with faster growth in manufacturing: from January to April, national fixed assets grew by 4.0% year-on-year; investment in high-tech services grew by 11.3% year-on-year, and private investment grew by 0.2% year-on-year;
The import and export of goods continued to grow, and the trade structure continued to be optimized: in April, the total import and export of goods amounted to 3839.1 billion yuan, up 5.6% year-on-year. Among them, exports were 226.45 billion yuan, up 9.3%; imports were 157.45 billion yuan, up 0.8%;
Consumer prices fell slightly year-on-year: in April, the country's consumer prices (CPI) fell 0.1% year-on-year, industrial producer factory prices fell 2.7% year-on-year, and purchasing prices fell 2.7% year-on-year;
The employment situation was generally stable: from January to April, the national urban survey unemployment rate averaged 5.2%. In April, the national urban survey unemployment rate was 5.1%, down 0.1 percentage point from the previous month.

Policy environment
High-level Interaction

On May 23, President Xi Jinping had a phone conversation with German Chancellor Merz at the latter's request. Xi Jinping emphasized that China is willing to share the development opportunities brought by high-level opening-up with Germany. He hopes that Germany will provide more policy support and convenience for bilateral investment cooperation and offer a fair, transparent, and non-discriminatory business environment for Chinese enterprises.
On May 22, President Xi Jinping had a phone conversation with French President Macron at Macron's request. Xi Jinping pointed out that both sides should strengthen strategic communication and build consensus. Seize the opportunity to deepen cooperation in traditional fields such as investment, aerospace, and nuclear energy, and expand cooperation in emerging fields such as digital technology, green technology, biomedicine, and the silver economy.
On May 14, President Xi Jinping met with Chilean President Boric. Xi Jinping emphasized that both sides should effectively implement the cooperation plan for jointly building the "Belt and Road," deepen cooperation in areas such as agriculture, forestry, animal husbandry, fishery, industrial investment, infrastructure, and green minerals, and cultivate new growth points in fields like astronomy, polar research, artificial intelligence, biomedicine, and the digital economy.
On May 14, President Xi Jinping met with Colombian President Petro. Xi Jinping pointed out that China is willing to import more high-quality Colombian products, support Chinese enterprises in investing and starting businesses in Colombia, and participate in infrastructure construction. Both sides can further expand cooperation in emerging fields such as wind energy, new energy vehicles, digital economy, and artificial intelligence, jointly achieving a green and low-carbon transformation.
On May 13, President Xi Jinping held talks with Brazilian President Lula. Xi Jinping emphasized the need to deepen the effective alignment of the Belt and Road Initiative with Brazil's development strategy, leverage the roles of various cooperation mechanisms between the two countries, strengthen cooperation in traditional fields such as infrastructure, agriculture, and energy, expand cooperation into new areas such as energy transition, aerospace, digital economy, and artificial intelligence, and create more highlights for practical cooperation between the two countries.
On May 8, President Xi Jinping held talks with Russian President Putin. Xi Jinping pointed out that China and Russia should adhere to the general direction of cooperation, eliminate external interference, and make the foundation of cooperation more solid and the momentum of cooperation more sufficient. We should leverage the complementary advantages of the two countries' resource endowments and industrial systems, and expand high-quality mutually beneficial cooperation in areas such as economy and trade, energy, agriculture, aerospace, and artificial intelligence. Using the joint construction of the "Belt and Road" and the alignment with the Eurasian Economic Union as platforms, we should build a high-standard interconnected and integrated pattern.
On May 26, Premier Li Qiang met with Malaysian Prime Minister Anwar. Li Qiang pointed out that China is willing to implement the mutual visa exemption agreement with Malaysia, deepen cultural, educational, health, and sports exchanges and cooperation, and strengthen the emotional ties between the people of China and Malaysia in the community of shared future.
On May 26, Premier Li Qiang met with Sheikh Sabah, the Crown Prince of Kuwait and the rotating presidency of the Gulf Cooperation Council. Li Qiang pointed out that China is willing to strengthen the alignment of the Belt and Road Initiative with Kuwait's "2035 National Vision," continuously expand the areas of cooperation, accelerate the construction of major cooperative projects, deepen cooperation in the fields of energy, investment, green economy, digital economy, and artificial intelligence, create more new spaces for win-win cooperation, and
On May 25, Premier Li Qiang of the State Council held talks with Indonesian President Prabowo. Li Qiang pointed out that both sides should strengthen market connectivity and industrial cooperation, enhance the level of trade and investment facilitation, and expand cooperation in fields such as finance, new energy, digital economy, artificial intelligence, aerospace, and maritime affairs. China is willing to expand cultural exchanges with Indonesia, promote the facilitation of personnel exchanges, deepen cooperation in the fields of agriculture, poverty alleviation, and health, and better benefit the people of both countries.
On May 25, Premier Li Qiang attended a symposium for Chinese-funded enterprises in Indonesia. Li Qiang stated that China is increasing the counter-cyclical adjustment of macro policies, implementing more proactive fiscal policies and moderately loose monetary policies, and gradually introducing measures to stabilize employment and the economy. At the same time, new policy tools are being researched and reserved, including some unconventional measures, to create a favorable environment for the overseas operations and development of Chinese-funded enterprises, providing more conditions and opportunities, and offering
On May 24, Premier Li Qiang attended the China-Indonesia business community dinner and delivered a speech. Li Qiang emphasized that China is vigorously promoting the high-end, intelligent, and green transformation of its manufacturing industry, orderly expanding overseas investment, and will work with other countries to jointly enhance the level and efficiency of the production and supply chain. We are willing to share incremental space and development opportunities with all countries, including Indonesia, and will unswervingly expand openness, creating a better environment for foreign enterprises to invest and develop in China.
On May 23, Vice Premier He Lifeng met separately with Citigroup Chairman Peter S. Cohen and Carlyle Group CEO Schwartz. He Lifeng said that the current operation of the Chinese economy continues to show a trend of recovery and improvement, demonstrating strong resilience and vitality. We welcome foreign financial institutions, including Citigroup and The Carlyle Group, to invest and start businesses in China, jointly participate in the construction of China's capital market, deepen cooperation with China, and share development opportunities.
On May 22, Vice Premier He Lifeng met with Jamie Dimon, Chairman and CEO of JPMorgan Chase & Co. He Lifeng said that the recent China-US economic and trade talks have made substantial progress, creating conditions for the two countries to continue to carry out economic and trade cooperation. We welcome US-funded enterprises, including JPMorgan Chase, to continue deepening mutually beneficial cooperation with China and continue to promote the healthy, stable and sustainable development of Sino-US economic and trade relations.
From May 10 to 11, the Chinese head of the China-U.S. economic and trade talks, Vice Premier He Lifeng, and the U.S. head of the China-U.S. economic and trade talks, U.S. Treasury Secretary Mnuchin and Trade Representative Lighthizer, held high-level China-U.S. economic and trade talks in Geneva, Switzerland. The two sides had candid, in-depth and constructive communication on implementing the important consensus reached in the phone call between the Chinese and U.S. heads of state on January 17, and reached a series of important consensuses. It was said that this high-level Sino-US economic and trade talks were frank, in-depth and constructive, and important consensus was reached, and substantive progress was made.
On May 19, Wang Wentao, the Minister of Commerce, met with Danish Foreign Minister Rasmussen. Wang Wentao stated that China is willing to work together with Denmark and Europe, uphold the original intention of establishing diplomatic relations, strengthen policy communication, deepen practical cooperation, and jointly maintain the multilateral trade system with the World Trade Organization at its core. Both parties had an in-depth exchange of views on China-Denmark and China-EU economic and trade relations, as well as the maintenance of the multilateral trade system.
On May 12, Wang Wentao, the Minister of Commerce, held a roundtable meeting with foreign trade enterprises to discuss the current foreign trade situation and support the development of foreign trade enterprises. Wang Wentao stated that he would do his utmost to help foreign trade enterprises overcome difficulties, provide more support, assist them in expanding their markets, and promote the stable development of foreign trade.
On May 8, Wang Wentao, the Minister of Commerce, met with Maxim Oreshkin, the Minister of Economic Development of Russia. Wang Wentao stated that both sides should fully leverage the upgraded "Sino-Russian Agreement on Promoting and Protecting Investments" to provide a more transparent and fair investment and business environment for enterprises of both countries, continuously promoting the high-quality development of Sino-Russian economic and trade cooperation. In-depth exchanges were held on issues such as implementing the upgraded investment protection agreement between China and Russia, strengthening economic and trade investment cooperation, and responding to the so-called "reciprocal tariffs" imposed by the United States.
On May 27, Ling Ji, Vice Minister of Commerce and Deputy Representative for International Trade Negotiations, met with a delegation of German small and medium-sized enterprises. Ling Ji expressed hope that both China and Germany would jointly uphold free trade and the stability of global industrial and supply chains, and adhere to mutually beneficial cooperation.
On May 15, Li Chenggang, Vice Minister of Commerce and Chief Negotiator for International Trade, attended the ministerial meeting between China and the members of the Digital Economy Partnership Agreement (DEPA). Li Chenggang stated that China is unwavering in promoting high-level opening-up, actively aligning with international high-standard economic and trade rules, and maintaining the international economic and trade order based on rules.
On May 9, Li Chenggang, Vice Minister of Commerce and Chief Negotiator for International Trade, met with State Secretary and Director-General of the Federal Department of Economic Affairs, Education and Research of Switzerland, Budliger. Li Chenggang stated that a more pragmatic approach should be taken to promote the upgrading of the free trade agreement and achieve substantive results as soon as possible. This should be used as an opportunity to further deepen mutually beneficial cooperation in the economic and trade fields between the two countries. The two sides exchanged views on topics such as the upgrading of the China-Switzerland Free Trade Agreement.
On May 22, Ren Hongbin, the president of the China Council for the Promotion of International Trade, met with Jamie Dimon, the chairman and CEO of JPMorgan Chase & Co. The two sides exchanged views on promoting exchanges between the business communities of China and the United States and deepening cooperation in the financial investment sector.
On May 9, Ren Hongbin, the president of the China Council for the Promotion of International Trade, met with Wei Jiekai, the global senior vice president of ExxonMobil, to engage in in-depth discussions on topics such as optimizing the business environment for foreign-funded enterprises in China, jointly promoting green and low-carbon development, and strengthening cooperation in industrial and supply chains.

China's Outward Direct Investment (ODI)

People's Bank of China:Jointly issued the "Opinions on Financial Support for Deepening Comprehensive Cooperation between Guangdong, Hong Kong, and Macau in Nansha, Guangzhou, with a Global Perspective," proposing 30 key measures to expand financial openness. This aims to better position Nansha, Guangzhou, as a "strategic pivot in the new development pattern, a demonstration area for high-quality development, and a leading area for Chinese-style modernisation" within the Guangdong-Hong Kong-Macao Greater Bay Area.Draughted the "Notice on Issues Related to the Management of Funds for Domestic Enterprises Listing Overseas (Draft for Solicitation of Comments)" and publicly solicited opinions. Improve and unify the cross-border fund management related to the direct overseas listing of domestic enterprises, enhance the facilitation level of cross-border financing for domestic enterprises, and solidly advance high-level opening-up.
Ministry of Commerce:From January to April 2025, China's non-financial direct investment abroad amounted to $51.04 billion, an increase of 5.6% year-on-year. Among them, non-financial direct investment in countries along the "Belt and Road" amounted to $12.78 billion, an increase of 16.4% year-on-year. The amount of newly signed contracts for foreign contracted projects was $64.54 billion, a year-on-year increase of 17.4%.
Issued the "Work Plan for Deepening the Reform and Innovation of National-Level Economic and Technological Development Zones to Lead High-Quality Development through High-Level Opening-Up," further improving the system and mechanism for high-level opening-up, actively participating in the high-quality joint construction of the "Belt and Road," expanding international cooperation, promoting the upgrading, greening, and digitalisation of industries, developing new types of productive forces according to local conditions, and striving to create a new situation for the work of national-level economic and technological development zones.Jointly issued the "Special Action Plan for Accelerating the Development of Intelligent Supply Chains," which mentions accelerating the opening-up and cooperation of intelligent supply chains, supporting the coordinated development with cross-border e-commerce and overseas warehousing logistics; building intelligent supply chain control towers to achieve real-time insights, operational analysis, and intelligent responses for supply chain activities; innovating the underlying technologies of intelligent supply chains to promote the commercial application of intelligent technologies.
State Administration for Market Regulation: Issued the "Notice on Providing Support Measures for Foreign Trade Enterprises," proposing the optimisation of the mandatory product certification (CCC certification) process. For products that meet mandatory national standards and are included in the CCC certification scope, under the international multilateral and bilateral mutual recognition mechanisms that China has joined, designated CCC certification agencies and laboratories should proactively establish working mechanisms, reasonably accept foreign review and evaluation results, open green and fast access channels for enterprises, shorten certification time, and accelerate the speed at which products obtain CCC certification qualifications to enter the domestic market.
State Administration of Foreign Exchange: Issued the "Notice on the Statistical System for Foreign Financial Assets, Liabilities, and Transactions," further improving the statistics on foreign financial assets, liabilities, and transactions. This aims to continuously enhance the comprehensiveness, timeliness, and accuracy of international balance of payments statistics, better meet the requirements of macroeconomic analysis and the latest international standards.
Hunan: The Provincial Department of Commerce jointly issued the "Several Policy Measures on Financial Support for the Development of Foreign Trade Enterprises in Hunan Province," focussing on eight major areas to increase financing support for foreign trade enterprises, promote enterprise exchange rate risk management, enhance the level of foreign trade facilitation, and vigorously promote the development of new trade formats. Increase financial support to stabilise foreign trade and improve the quality and efficiency of financial services for foreign trade enterprises.
Yunnan: The Provincial Department of Commerce has issued the "2025 Policy for Promoting Stable and Quality Growth of Foreign Trade (First Batch)," proposing 35 pragmatic measures to complete the external-oriented industrial chain, improve the policy service chain, and optimise the trade method chain, thereby promoting the development of an open economy.
Jiangxi: The Provincial Leading Group for Optimising the Business Environment has issued the "2025 Jiangxi Province Business Environment Optimisation Benchmarking and Enhancement Action Plan," which mentions accelerating the creation of a higher-level open environment. At the same time, it fully integrates into the Belt and Road Initiative, supporting more enterprises to "go global" in advantageous fields such as contracted projects, energy resources, and agriculture.
Beijing:The municipal government has issued the "Implementation Plan for Promoting High-Quality Development of Service Trade and Digital Trade through High-Level Opening-Up," which mentions promoting the facilitation of cross-border capital flows. Carry out pilot programs for high-level opening-up policies in cross-border trade and investment, expand the cross-border use of the renminbi in the service trade sector, and support domestic banks in providing renminbi trade financing services to foreign enterprises. Deepen the pilot program for the integrated settlement account system for domestic and foreign currencies in banks.The Beijing Municipal Bureau of Industry and Information Technology has issued the "Action Plan for Promoting High-Level Opening Up of High-Precision and High-Tech Industries in Beijing (2025)" to implement the city's "Two Zones" policy, promote the opening up of the entire biopharmaceutical industry chain, build an international pharmaceutical innovation park to high standards and levels, and advance the landing and commencement of a number of key projects. Accelerate the pilot program for expanding the opening up of value-added telecommunications services, assisting eligible foreign-funded enterprises in obtaining operating licenses in areas such as internet data centres, content delivery networks, online data processing and transaction processing, and app stores.

Foreign Direct Investment (FDI)

Ministry of Foreign Affairs: It has been decided to expand the scope of visa-free countries. From June 1, 2025, to May 31, 2026, a visa-free policy will be trialled for holders of ordinary passports from Brazil, Argentina, Chile, Peru, and Uruguay. Holders of ordinary passports from the five countries can enter China without a visa for business, tourism, family visits, exchanges, and transit for up to 30 days.
The National Film Administration: Issued the "Regulations on the Administration of Investment in Film Production Business by Service Providers from Hong Kong and Macao," encouraging service providers from Hong Kong and Macao to invest in establishing film production companies in the mainland and engage in film production activities. Further deepen the cooperation and exchange of films between the mainland and the Hong Kong Special Administrative Region and the Macao Special Administrative Region, and promote the prosperity of film creation and production.

Taxation

China and the United States released the "Joint Statement of the Sino-U.S. Geneva Economic and Trade Talks." The U.S. side promised to cancel a total of 91% of the tariffs imposed on Chinese goods under Executive Orders No. 14259 on April 8, 2025, and No. 14266 on April 9, 2025, and to modify the 34% reciprocal tariffs imposed on Chinese goods under Executive Order No. 14257 on April 2, 2025, with 24% of these tariffs being suspended for 90 days, while the remaining 10% would be retained. Correspondingly, China will cancel a total of 91% of the counter-tariffs imposed on U.S. goods; for the 34% counter-tariffs corresponding to the U.S. tariffs, 24% of these tariffs will be suspended for 90 days, while the remaining 10% will be retained. China also correspondingly suspended or cancelled non-tariff countermeasures against the United States.
The Tariff Commission of the State Council: Issued the "Announcement on Adjusting Tariff Measures on Imports Originating from the United States," stipulating that the additional tariff rate, originally set at 34%, will be adjusted to 10%, and the 24% additional tariff rate on imports from the United States will be suspended for 90 days.
General Administration of Customs:Jointly issued Announcement No. 83 of 2025 - Regarding the adjustment of management measures related to customs special supervision areas, bonded supervision places, and processing trade outside the zones, to strengthen the management of goods involving the implementation of tariff quota management, trade remedy measures, suspension of tariff concession obligations, additional tariff measures, and additional tariff measures implemented in response to retaliatory tariffs in customs special supervision areas, bonded supervision places, and processing trade outside the zones.Release 2025 No. 90 - Announcement on Strengthening the Management of Relevant Commodities in the Yangshan Special Comprehensive Bonded Zone, strengthening the management of commodities in the Yangshan Special Comprehensive Bonded Zone involving the implementation of tariff quota management, trade remedy measures, suspension of tariff concession obligations, additional tariff measures, and additional tariff measures implemented for the collection of retaliatory tariffs.Draft the "Announcement of the General Administration of Customs on Issues Related to the Tax Administration of Export Goods Re-imported Under Foreign Contracted Projects (Draft for Soliciting Opinions)" and publicly solicit opinions. Clarify the tax collection and management issues related to the re-importation of exported goods under foreign contracted projects.
Ministry of Finance: Jointly issued the "Notice on Promoting the Application of Electronic Voucher Accounting Data Standards," which is beneficial for enhancing the authenticity and reliability of accounting information, achieving efficient supervision of various economic activities, preventing financial fraud from the source, and maintaining economic and social order. It is also beneficial for addressing key and difficult issues such as the lack of uniform standards for various electronic vouchers, meeting the needs of grassroots units, and improving the sense of gain for the public.
State Administration of Taxation:Revise and issue the "Administrative Measures for VAT Refunds on International Transport Vessels," implementing VAT refund policies for qualified vessels sold by domestic shipbuilding enterprises to transport enterprises. The transport enterprises that purchase the vessels can apply for VAT refunds according to the provisions of these measures. Regulate the management of VAT refunds for international transport vessels.Revise and issue the "Management Measures for Tax Refunds for Overseas Tourists Shopping and Leaving the Country (Trial) (2025 Revision)," further optimising tax services, simplifying tax refund operations, and helping overseas tourists enjoy the departure tax refund policy more conveniently. For example, optimising information systems to achieve full-process electronic handling of departure tax refunds, allowing stores to automatically input shopping invoice information when issuing refund receipts, thereby improving the efficiency of receipt issuance and verification, and reducing passenger waiting times.
Guangdong: The Shenzhen Municipal Finance Bureau jointly issued the "Announcement on the Pilot Implementation of the 'One Order, One Package' Facilitation Model for Departure Tax Refunds for Foreign Tourists" with the Shenzhen Municipal Bureau of Commerce, the Shenzhen Customs of the People's Republic of China, and the Shenzhen Municipal Taxation Bureau of the State Administration of Taxation. This aims to further enhance the convenience and satisfaction level of departure tax refunds for foreign tourists, improve customs verification efficiency, and reduce waiting time for travellers.
Anhui: The Provincial Taxation Bureau issued a notice on "Implementing 'Immediate Refund' Service Measures for Overseas Tourists' Shopping Departure Tax Refunds," further enhancing the facilitation level of departure tax refund processing for overseas tourists' shopping.
Hebei: The Provincial Taxation Bureau draughted the "Announcement on the Determination of Input VAT for Agricultural Products" and publicly solicited opinions. Further improve the pilot work of the input VAT credit deduction for agricultural products in our province.

Please click the following link to see more industry trends: 中富博睿政策速递（2025年5月刊）

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