Sinobravo Policy Express (April, 2025)

2025-06-11

Editor's Note:
In the first quarter, as existing policies and a series of new policies continued to take effect, technological innovation and transformation and upgrading steadily advanced, production demand showed a steady increase, employment and prices remained generally stable, market confidence continuously strengthened, high-quality development achieved new results, and the national economy continued its upward trend, starting off well. According to the preliminary calculation of the National Bureau of Statistics, the GDP in the first quarter was 318758 billion yuan, a year-on-year increase of 5.4% at constant prices, exceeding market expectations. A number of international institutions have recently raised their forecasts for China's economic growth, including Morgan Stanley, an international investment bank, which raised its forecast by 50 basis points from its previous forecast, HSBC to 4.8%, and the Organisation for Economic Co-operation and Development (OECD) to raise China's growth forecast to 4.8% in 2025. It has strongly boosted market confidence and expectations, laying a solid foundation for the next phase of China's economic development.
The U.S. government arbitrarily abuses tariff measures, imposing additional so-called "reciprocal tariffs" on global trade partners, leading to strong dissatisfaction within the United States and the international community, as well as significant turmoil in the financial markets. The United States' unilateral actions have severely disrupted the global economy and trade order, including in the Middle East. Tariff policies may lead to the loss of control over the U.S. economy, the world economy, and international trade relations, and it will be very difficult to correct. Imposing tariffs not only impacts capital flows and international trade but could also trigger the most severe economic crisis since 2008.

Economic operation

On April 16, the National Bureau of Statistics released the "report card" for China's economy in the first quarter of 2025, showing a stable start and a good beginning for the national economy:

GDP growth rate exceeded expectations: In the first quarter, the gross domestic product was 31.8758 trillion yuan, calculated at constant prices, with a year-on-year growth of 5.4%;
Agricultural production is in good shape: In the first quarter, the value added of agriculture (planting industry) increased by 4.0% year-on-year;
Industrial production growth accelerated: In the first quarter, the value added of industrial enterprises above designated size nationwide increased by 6.5% year-on-year, an acceleration of 0.7 percentage points compared to the previous year; the equipment manufacturing industry and high-tech manufacturing industry grew rapidly.
Services sector grew rapidly: In the first quarter, the value added of the services sector increased by 5.3% year-on-year, accelerating by 0.3 percentage points compared to the entire previous year;
Market sales growth rebounds: In the first quarter, the total retail sales of consumer goods increased by 4.6% year-on-year, an acceleration of 1.1 percentage points compared to the previous year.
Fixed asset investment shows steady growth, with high-tech industry investment growing rapidly: In the first quarter, national fixed asset investment reached 10,317.4 billion yuan, a year-on-year increase of 4.2%, accelerating by 1.0 percentage points compared to the previous year; high-tech industry investment increased by 6.5% year-on-year; private investment grew by 6.0%.
Trade in goods continues to grow, and the trade structure continues to optimise: In the first quarter, the total value of goods imports and exports was 10,301.3 billion yuan, an increase of 1.3% year-on-year; among them, exports were 6,131.4 billion yuan, an increase of 6.9%; imports were 4,170.0 billion yuan, a decrease of 6.0%;
Consumer prices remained generally stable: In the first quarter, the national Consumer Price Index (CPI) decreased by 0.1% year-on-year; the Producer Price Index (PPI) decreased by 2.3% year-on-year, and the Purchase Price Index decreased by 2.3% year-on-year;
Employment situation is generally stable: In the first quarter, the national urban survey unemployment rate averaged 5.3%. In March, the national urban survey unemployment rate was 5.2%, down 0.2 percentage points from the previous month.
Residents' income grew steadily: In the first quarter, the per capita disposable income of residents nationwide was 12,179 yuan, a nominal year-on-year increase of 5.5%.

Policy environment
High-level Interaction

On April 24, President Xi Jinping held talks with Kenyan President Ruto. The two heads of state unanimously agreed to elevate the bilateral relationship to a new era of a China-Kenya community with a shared future.
On April 23, President Xi Jinping held talks with President Aliyev of Azerbaijan. The two heads of state announced the establishment of a comprehensive strategic partnership between China and Azerbaijan.
From April 14 to 18, President Xi Jinping paid a state visit to Vietnam, Malaysia, and Cambodia. During the visit, China signed a total of 108 cooperation documents with Vietnam, Malaysia, and Cambodia.
On April 17, He Lifeng, Vice Premier of the State Council, met with Huang Renxun, President and CEO of the American company NVIDIA. He Lifeng said that the Chinese market has great potential for investment and consumption. It is the best application scenario for a new round of technological revolution and industrial transformation, and has always been a fertile ground for foreign enterprises to invest and trade. Welcome more U.S. companies, including NVIDIA, to deepen their investment in the Chinese market.
On April 11, President Xi Jinping met with Spanish Prime Minister Sanchez. Xi Jinping emphasised that China is willing to work with Spain to make good use of their mutually beneficial and complementary cooperation advantages, effectively utilise the mechanisms for economic, trade, and technological cooperation, deeply explore the cooperation potential in fields such as new energy, high-tech manufacturing, and smart cities, and create more mutually beneficial cooperation outcomes.
On April 8, Premier Li Qiang of the State Council had a phone call with Ursula von der Leyen, President of the European Commission. Li Qiang pointed out that communication and coordination should be strengthened, mutual openness should be expanded, and the free and open trade and investment should be jointly maintained, as well as the stability and smoothness of the global industrial chain and supply chain, injecting more stability and certainty into both sides and the world economy.
On April 11, Wang Wentao, the Minister of Commerce, had a video call with WTO Director-General Iweala. Wang Wentao emphasised that the US "reciprocal tariffs" seriously violate the most basic and core rules of the WTO, such as most-favored-nation treatment, non-discrimination, and tariff bindings, undermining the international economic and trade order and shaking the foundation of the multilateral trading system. The two sides exchanged views on issues such as responding to the US's imposition of so-called "reciprocal tariffs," maintaining the multilateral trade system, and playing the role of the WTO.
On April 11, Wang Wentao, Minister of Commerce, had a video call with Alckmin, Vice President of Brazil and Minister of Development, Industry, Trade and Services, who is the rotating presidency of BRICS. The two sides exchanged views on issues such as strengthening China-Brazil economic and trade cooperation, responding to the so-called "counter-tariffs" imposed by the United States, and giving full play to the role of multilateral platforms such as BRICS and G20.
On April 9, Wang Wentao, Minister of Commerce, had a video call with Zafrul, Minister of Trade and Industry of Malaysia, which is the rotating presidency of ASEAN. Both sides had an in-depth and frank exchange of views on strengthening China-Malaysia and China-ASEAN economic and trade cooperation, and jointly responding to the so-called "reciprocal tariffs" imposed by the United States.
On April 8, Wang Wentao, Minister of Commerce, held a video conference with Valdis Dombrovskis, Executive Vice President of the European Commission and Commissioner for Trade and Economic Security. The two sides had an in-depth and candid exchange of views on strengthening China-EU economic and trade cooperation and responding to the so-called "reciprocal tariffs" imposed by the United States.
On April 1, Wang Wentao, Minister of Commerce, met with Ray Dalio, founder of Bridgewater Associates. Wang Wentao pointed out that trade war is detrimental to both sides. China and the United States should adhere to the correct way of getting along and seek solutions to economic and trade issues through equal dialogue. Both parties exchanged views on the global economic situation and China-US economic and trade relations.
On April 23, Ling Ji, Vice Minister of Commerce and Deputy Representative for International Trade Negotiations, presided over a roundtable meeting with foreign-funded enterprises. Ling Ji stated that the unilateralism and bullying actions of the United States in imposing tariffs have caused strong dissatisfaction in the international community, severely damaging the multilateral trade system and international economic and trade order based on rules, and impacting the stability of the global supply chain. Discuss the impact of the U.S. tariffs on foreign-invested enterprises in China on their investment and operations.
On April 6, Ling Ji, Vice Minister of Commerce and Deputy Representative for International Trade Negotiations, presided over a roundtable meeting for American-funded enterprises. Ling Ji said that the Chinese government will continue to provide protection for foreign-funded enterprises in China, including US-funded enterprises, protect the legitimate rights and interests of foreign-funded enterprises in accordance with the law, and actively promote the resolution of the problems and demands of foreign-funded enterprises.
On April 17, Ren Hongbin, President of the China Council for the Promotion of International Trade, held talks with Jensen Huang, CEO of NVIDIA. The two sides exchanged views on strengthening exchanges between the business communities of China and the United States, better serving the development of foreign-funded enterprises in China, and enhancing cooperation in the supply chain.

China's Outward Direct Investment (ODI)

People's Bank of China: Jointly issued the "Action Plan for Further Enhancing the Facilitation of Cross-Border Financial Services in the Shanghai International Financial Centre," further enhancing the facilitation of cross-border investment and financing, continuously strengthening the competitiveness and influence of the Shanghai International Financial Centre, and promoting high-quality economic development and high-level opening up.
Shaanxi: The Provincial Department of Commerce jointly issued the "Measures to Strengthen Financial Support and Promote the Expansion and Quality Improvement of Foreign Trade," proposing fifteen measures such as "leveraging globalisation advantages to support enterprises in exploring international markets" and "continuously expanding the pilot scope of trade foreign exchange facilitation." These measures aim to solidly carry out related work to stabilise the existing foreign trade, increase its volume, and improve its quality, thereby constructing a new development pattern.
Shanghai: The Shanghai Municipal Financial Regulatory Bureau has issued the "Notice on Deepening the Financing Smoothness Project to Serve the High-Quality Development of the Private Economy," proposing a total of 20 measures to support the development and growth of the private economy. These measures include adhering to a problem-oriented approach to enhance the convenience of financing for private enterprises, highlighting key service areas to stimulate the vitality of private economic development, and promoting opening up to assist private enterprises in "going global."

Foreign Direct Investment (FDI)

State Council:Issued the "Reply on the ", and in principle agreed to the "Accelerating the Comprehensive Pilot Work Plan for Expanding the Opening Up of the Service Industry." Actively align with international high-standard economic and trade rules, deeply carry out reform and innovation explorations, boldly experiment and venture, orderly expand autonomous opening-up, unleash the potential of a super-large-scale market, accumulate more replicable and scalable experiences, and make greater contributions to building a new system of higher-level open economy.Issuing the "Opinions on Implementing theStrategy for Enhancing Free Trade Zones," which points out the need to promote the liberalisation and facilitation of investment, enhance the level of market openness, and create a first-class business environment that is market-oriented, law-based, and internationalised. Greater efforts to attract and utilise foreign investment.Greater efforts to attract and utilise foreign investment.
Ministry of Commerce:Released "Several Measures to Support the Cultivation and Construction of International Consumer Centre Cities," which is of great significance for boosting consumption, promoting high-quality development, and better meeting the people's needs for a better life. To support Shanghai, Beijing, Guangzhou, Tianjin, and Chongqing in accelerating the cultivation and construction of international consumer centre cities, creating a globally attractive consumption environment, comprehensively expanding domestic demand, and enhancing high-level opening-up.Issued a notice on further optimising the departure tax refund policy to expand inbound consumption. Lower the threshold for departure tax refunds. Overseas travellers who purchase tax refund items at the same store on the same day amounting to 200 yuan and meet other relevant regulations can apply for a departure tax refund.
National Development and Reform Commission: Released the "Negative List for Market Access (2025 Edition)." The new version of the list, on the one hand, lowers the entry threshold and stimulates market vitality; on the other hand, it legally regulates access to key areas, ensuring a solid safety net. After four revisions, the number of items in the list has been reduced from 151 in the 2018 version to 106, a reduction of approximately 30%, and a large number of industry access restrictions have been relaxed.
People's Bank of China: Jointly draughted the "Notice on Issuing the (Draft for Comment)" and publicly solicited opinions, steadily advancing the pilot of integrated currency pools, better facilitating the coordinated use of cross-border funds by enterprises, and enhancing the role of cross-border operations in serving the real economy and promoting trade and investment facilitation.
General Administration of Customs:
Issued the "Announcement on Matters Related to the Declaration of Luggage and Goods by Inbound and Outbound Passengers." Passengers carrying items that need to be declared to customs should fill out the "Customs Declaration Form for Luggage and Goods of Inbound and Outbound Passengers of the People's Republic of China," declare them to customs in writing, and choose the "Red Channel" for customs clearance. Facilitate the baggage declaration procedures for inbound and outbound travellers.
Released the "Announcement on the Pilot Reform and Optimisation of 'Two-Step Declaration'," allowing for the declaration of all items in two steps within fourteen days from the date of declaration of entry by the means of transport. Imported goods that meet the requirements can be released after a summary declaration. Completing the declaration of all items and acceptance by customs is considered a complete declaration. Effectively maintaining national security while promoting trade facilitation.
State Administration for Market Regulation: Issued the "Measures for the Administration of the Adoption of International Standards," further standardising the work of adopting international standards, steadily expanding the institutionalised openness of standards, and accelerating the integrated development of domestic and foreign trade.
National Medical Products Administration:Released the "Announcement on Matters Related to the Import of Commercial-Scale Batch Products of Overseas Marketed Drugs Before Approval (Draft for Comments)" and publicly solicited opinions. It stipulates that for overseas marketed drugs, after obtaining the Chinese drug approval documentation, pre-commercial scale batch products that meet the requirements are allowed to be imported and marketed. Support the early clinical use of innovative drugs to benefit patients.Jointly issued the "Announcement on Allowing the Pilot Import of Bile for Use in the Production of Traditional Chinese Medicine," expanding the import of high-quality overseas medicinal materials, meeting clinical medication needs, and serving the high-quality development of the traditional Chinese medicine industry.
Shanghai:The Shanghai Municipal Commission of Economy and Information Technology issued the "Implementation Opinions on Promoting the Innovative Development of the Intelligent Computing Cloud Industry in Shanghai (2025-2027)," proposing that by 2027, the scale of Shanghai's intelligent computing cloud industry should strive to exceed 200 billion yuan, and an ecosystem with coordinated cloud-edge-end collaboration and a complete industrial chain should be basically formed. The scale of intelligent computing aims to reach 200 EFLOPS, with over 70% of the computing power being independently controllable; several comprehensive intelligent computing cloud platforms and a number of vertical intelligent computing cloud platforms will be developed, forming a series of benchmark intelligent computing cloud applications to attract leading domestic and international cloud service providers to expand their investments in Shanghai.The Shanghai Foreign Investment Association held an annual report briefing for the 2025 Foreign Investment Information Report, helping foreign investment enterprises better understand the reporting process, compliance requirements, and facilitation measures.
Fujian: The Provincial Taxation Bureau jointly issued the "Work Plan for Promoting the 'One-Stop' Tax and Fee Services Across the Taiwan Strait." This plan targets Taiwanese compatriots, Taiwanese-funded enterprises, and cross-border transaction entities from both sides of the Taiwan Strait. By establishing a cross-departmental coordination mechanism and deepening data sharing and business linkage, it relies on the provincial integrated processing platform to provide services such as "tax first service" for Taiwanese compatriots and Taiwanese-funded enterprises, one enterprise one policy (Pingtan), mutual recognition of two certificates in the
Hainan: The Office of the Leading Group for Optimising the Business Environment of the Provincial Party Committee has issued the "Key Measures for Optimising the Business Environment in Hainan Province (2025 Edition)," proposing 166 specific tasks and measures. These include accelerating the exploration and establishment of a coordinated model for the entry of domestic and foreign investments that aligns with the characteristics of Hainan's Free Trade Port, and strengthening the prevention and correction of issues such as "one-size-fits-all" policies and abrupt policy reversals. It mentions that by clearly aligning with high-level international economic and trade rules, promoting institutional openness in rules, regulations, management, and standards, and through measures such as improving the "single window" for international trade and investment, advancing the "one-stop" government services for foreign enterprises and foreigners, and upgrading the one-stop policy inquiry and interpretation platform for Hainan Free Trade Port, the internationalisation of Hainan Free Trade Port will be continuously enhanced.

Tax

The Tariff Commission of the State Council: Issued the "Announcement on Adjusting the Tariff Measures on Imports Originating from the United States," stipulating that the additional tariff rate be increased from 84% to 125%. Given the current tariff levels, there is no market acceptance possibility for U.S. goods exported to China. If the U.S. continues to impose tariffs on Chinese goods exported to the U.S., China will not respond.
Ministry of Finance: Jointly issued the "Notice on Continuing the Implementation of Preferential Policies for Offshore Trade Stamp Duty," stipulating that for enterprises registered in the China (Shanghai) Pilot Free Trade Zone and Lingang New Area, China (Jiangsu) Pilot Free Trade Zone Suzhou Area, China (Zhejiang) Pilot Free Trade Zone, China (Fujian) Pilot Free Trade Zone Xiamen Area, China (Shandong) Pilot Free Trade Zone Qingdao Area, China (Guangdong) Pilot Free Trade Zone, Further support the development of offshore trade in free trade zones.
State Administration of Taxation:Jointly issued the "Tax Collection and Administration Law of the People's Republic of China (Revised Draft for Comments)" and publicly solicited opinions. Optimise and improve clauses that protect taxpayers' rights, reduce tax burdens, and further enhance the business environment.Published the "Interim Measures for the Administration of Tax-Related Product Testing of Refined Oil," which includes unannounced sampling inspections for units involved in the production, distribution, storage, and use of tax-related refined oil products. If necessary, the inspection may also include the verification of the company's production facilities and processes. Strengthen the management of consumption tax on refined oil products and standardise the testing of tax-related products.Released the "Opinions on Carrying Out the 2025 'Spring Breeze Action for Convenient Taxation' ", integrating and launching a series of enterprise-friendly and convenient service measures, further enhancing the efficiency of tax and fee services, improving taxpayers' and payers' sense of gain and satisfaction, and guiding and promoting tax compliance.Released the "Announcement on Promoting the 'Immediate Refund' Service Measures for Tax Refunds on Purchases by Overseas Travellers," which clearly stipulates the main content, processing procedures, and implementation timeline of the "Immediate Refund" service for tax refunds on purchases made by travellers leaving the country. Aimed at providing overseas travellers with more convenient and diverse tax refund options.
Zhejiang: The Provincial Taxation Bureau has issued the "2025 'Convenient Tax Payment Spring Breeze Action' Implementation Plan," deeply advancing a series of measures that benefit enterprises and the public, comprehensively consolidating the foundation of tax and fee services, further enhancing taxpayers' and payers' sense of gain and satisfaction, and effectively stimulating market vitality.
Hunan: The Provincial Taxation Bureau issued the "Several Measures for Further Supporting and Serving the High-Quality Development of the Private Economy," proposing to implement tax and fee preferential policies without compromise. Resolutely do not collect "excessive taxes and fees," treat private enterprises that meet the conditions for enjoying preferential policies equally, and ensure that preferential policies are implemented effectively. Accurately implement tax reduction policies such as phased VAT reductions for small-scale taxpayers, preferential income tax rates for small and micro enterprises, halved collection of "six taxes and two fees," and halved collection of individual income tax for individual industrial and commercial households, effectively reducing the tax burden on small and medium-sized enterprises and individual industrial and commercial households.
Fujian: The Xiamen Municipal Taxation Bureau issued the "Notice on Conducting the Annual Settlement and Payment of Non-Resident Corporate Income Tax for the Year 2024," clarifying that non-resident enterprises established under foreign (regional) laws and whose actual management institutions are not within China's territory, but have established institutions or places within China's territory, regardless of whether they are profitable or not, must participate in the annual settlement and payment of corporate income tax in accordance with the Corporate Income Tax Law.
Guangdong Provincial Taxation Bureau, Shenzhen Municipal Taxation Bureau, Hong Kong Government Taxation Bureau, and Macau Government Finance Bureau: Jointly released 22 tax service measures, focussing on the alignment of tax rules and mechanisms in the Guangdong-Hong Kong-Macao Greater Bay Area, promoting the "connection, integration, and seamless flow" of tax services in the Greater Bay Area.

Please click the following link to see more industry trends:中富博睿政策速递（2025年4月刊）

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