Sinobravo Policy Express (November 2025)

Editor's note:

In October, bolstered by the combined effects of existing and new policies, China's national economy maintained generally stable operation. The service sector grew steadily, with the production index increasing by 4.6% year-on-year; industrial production continued to expand, with value-added output up 4.9% year-on-year; total retail sales of consumer goods rose by 2.9% year-on-year; fixed-asset investment decreased by 1.7% year-on-year. Within high-tech industries, investment in information services, aviation, spacecraft and equipment manufacturing, and computer and office equipment manufacturing grew by 32.7%, 19.7%, and 4.1% year-on-year, respectively. The total value of goods imports and exports increased by .1% year-on-year, with continued optimization of the trade structure. The surveyed urban unemployment rate stood at 5.1%, indicating an overall stable employment situation. The consumer price index turned from decline to a slight increase, and the decline in producer prices for industrial goods narrowed. Overall, the economy sustained its trend of steady progress, with major indicators operating within a reasonable range. Against the backdrop of a sluggish global economic recovery, China's economy continues to demonstrate unique resilience and potential, laying a solid foundation for achieving the annual economic development goals.

The "Proposals of the Central Committee of the Communist Party of China for Formulating the 15th Five-Year Plan for National Economic and Social Development," adopted and published at the Fourth Plenary Session of the 20th Central Committee of the CPC, places strong emphasis on boosting consumption as a more prominent strategic priority. The essential needs and lifestyle consumption of its 1.4 billion people have become a crucial support for enhancing domestic circulation. Currently, with insufficient momentum for global economic growth, China's super-large market advantages serve as ballast and stabilizer to hedge against external uncertainties. The "Proposals" call for "building a strong domestic market and accelerating the creation of a new development pattern" and propose "adhering to the strategic basis of expanding domestic demand." Expanding domestic demand not only meets the people's growing needs for a better life but also serves as a significant driving force for advancing Chinese modernization.

Economic operation

On November 14, the National Bureau of Statistics released economic data for October, showing multiple indicators improving and the national economy maintaining generally stable operation with continued steady progress:

• Sustained growth in industrial production: In October, the value-added output of industrial enterprises above the designated size nationwide increased by 4.9% year-on-year and 0.17% month-on-month. Equipment manufacturing and high-tech manufacturing showed good growth momentum.

• Steady growth in the service sector: In October, the national service sector production index increased by 4.6% year-on-year.

• Expanded market sales scale: In October, total retail sales of consumer goods increased by 2.9% year-on-year.

• Year-on-year decrease in fixed-asset investment, sustained growth in manufacturing investment: From January to October, national fixed-asset investment reached 40.8914 trillion yuan, a decrease of 1.7% year-on-year. Investment in information services, aviation, spacecraft and equipment manufacturing, and computer and office equipment manufacturing within high-tech industries grew by 32.7%, 19.7%, and 4.1% year-on-year, respectively. Private investment grew by 0.2%.

• Growth in goods imports and exports with continued optimization of trade structure: In October, the total value of goods imports and exports was 3.7028 trillion yuan, an increase of 0.1% year-on-year. Exports were 2.1716 trillion yuan, down 0.8%; imports were 1.5311 trillion yuan, up 1.4%. The trade surplus was 640.5 billion yuan.

• Consumer prices turn from decline to increase: In October, the national Consumer Price Index (CPI) increased by 0.2% year-on-year. The Producer Price Index (PPI) for industrial goods decreased by 2.1% year-on-year; industrial producer purchase prices decreased by 2.7% year-on-year.

• Overall stable employment situation: From January to October, the average surveyed urban unemployment rate nationwide was 5.2%. In October, the rate was 5.1%, down 0.1 percentage points from the previous month.

Policy environment
High-level Interaction

• November 25: President Xi Jinping met with King Tupou VI of Tonga. Xi stated China's willingness to strengthen strategic alignment with Tonga, expand cooperation in trade, investment, agriculture, fisheries, infrastructure, clean energy, healthcare, tourism, climate change response, and broaden exchanges in education, sports, youth, media, and local affairs, continuing assistance for Tonga's socio-economic development within the South-South cooperation framework.

• November 24: President Xi Jinping spoke with US President Donald Trump. Xi noted both sides should maintain the momentum, adhere to the right direction, uphold equality, respect, and mutual benefit, lengthen the list of cooperation, shorten the list of issues, strive for more positive progress, open new spaces for US-China relations, and better benefit both peoples and the world.

• November 14: President Xi Jinping met with King Maha Vajiralongkorn of Thailand. Xi expressed China's willingness to strengthen strategic alignment with Thailand, steadily advance major projects like the China-Thailand railway, increase imports of high-quality Thai agricultural products, and expand cooperation in emerging areas like AI, digital economy, and aerospace.

• November 12: President Xi Jinping met with King Felipe VI of Spain. Xi emphasized China's willingness to import more high-quality Spanish products, explore cooperation potential in new areas like new energy, digital economy, and AI, expand mutual investment, and create more landmark projects.

• November 4: President Xi Jinping met with Russian Prime Minister Mishustin. Xi stressed the need to steadily expand mutual investment, cooperate well in traditional areas like energy, connectivity, agriculture, aerospace, and tap potential in new fields like AI, digital economy, and green development.

• November 23: Premier Li Qiang met with German Chancellor Merz. Li said China is willing to work with Germany to seize future development opportunities, engage in innovation cooperation with an open attitude, create highlights in new areas like new energy, smart manufacturing, biopharma, hydrogen technology, and autonomous driving.

• November 22: Premier Li Qiang met with Italian Prime Minister Meloni. Li stated China welcomes more Italian companies to enter the Chinese market using platforms like the CIIE, CSFTE, Hainan Expo, and CICPE, and hopes Italy provides a fair, transparent, non-discriminatory, predictable business environment for Chinese companies.

• November 21: Premier Li Qiang met with South African President Ramaphosa. Li pointed out China's willingness to strengthen strategic alignment with South Africa, promote the early implementation of zero-tariff measures, leverage complementary advantages, deepen mining and infrastructure cooperation, create new highlights like automotive industry cooperation, explore potential in new energy and AI, and expand sci-tech innovation cooperation like satellite navigation and joint labs.

• November 18: Premier Li Qiang met with Russian President Putin. They exchanged views on bilateral trade, energy, people-to-people exchanges, and international/regional hotspots, promoting practical cooperation upgrade and safeguarding common interests.

• November 21: Vice Premier He Lifeng met with former US National Security Advisor and Atlantic Council Executive Vice Chairman Stephen Hadley. He said the leaders' successful meeting in Busan charted the course for bilateral economic relations, hoping the Atlantic Council plays a positive role.

• November 12: Vice Premier He Lifeng met with National Committee on US-China Relations Vice Chairman Greenberg and President Orlins. He said there is broad space for US-China economic cooperation; both sides should move towards each other, maintain and implement the important consensuses from the Busan meeting.

• November 4: Vice Premier He Lifeng met with Goldman Sachs Chairman and CEO David Solomon. He said both sides should jointly implement the leaders' important consensuses, which benefit business expectations and stable, healthy, sustainable US-China economic relations.

• November 20: Minister of Commerce Wang Wentao met with US Ambassador to China Nicholas Burns. Wang expressed concerns regarding US unilateral tariffs, export controls, two-way investment restrictions, visa reviews, and restrictive clauses in US-third party agreements, stated China's position on issues like Nexperia, and discussed implementation of previous economic and trade consultations.

• November 20: Minister Wang Wentao held a video call with UK Secretary of State for Business and Trade Kemi Badenoch, exchanging views on the Nexperia issue.

• November 11: Minister Wang Wentao met with Spanish Minister of Economy, Trade and Enterprise Quilpo, exchanging views on China-Spain and China-EU economic relations.

• November 4: Minister Wang Wentao met with Australian Trade Minister Farrell. Wang said while consolidating traditional cooperation in energy, minerals, agriculture, both sides should further expand new growth areas like services trade and green development, actively fostering a good business environment.

• November 1: Minister Wang Wentao met with South Korean Minister of Trade, Industry and Energy. Wang suggested strengthening communication via supply chain hotlines, export control dialogues, and trade remedy mechanisms to ensure stable supply chains; enhance cooperation within WTO and RCEP frameworks.

• November 10: Vice Minister of Commerce Li Chenggang met with Cohen Group Senior Advisor and Illumina CEO. They exchanged views on US-China economic relations and Illumina's development in China.

China's Outward Direct Investment (ODI)

• People's Bank of China: Jointly released the "Measures for the Administration of Overseas Loans by Domestic Enterprises (Draft for Comment)" to better meet corporate cross-border operational funding needs and unify/improve cross-border fund management for such loans.

• National Immigration Administration: Announced 10 innovative measures to support opening up and high-quality development, including expanding the pilot for talent visas to Hong Kong and Macao, supporting efficient cross-border flow of production factors in the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone, and expanding the port scope for transit visa exemptions, facilitating cross-border movement for business personnel.

• Chongqing: The Municipal Intellectual Property Office drafted implementation rules for predicting and warning overseas IP risks for enterprises, supporting risk assessment and dispute response for companies expanding overseas.

• Guangxi: The Regional Market Supervision Bureau issued measures for implementing the business registration confirmation system in the China (Guangxi) Pilot Free Trade Zone, further stimulating market vitality and optimizing the investment facilitation environment.

Foreign Direct Investment (FDI)

• Ministry of Finance: Issued a notice on improving duty-free shop policies to boost consumption, guiding overseas consumption back, attracting foreign nationals to consume in China, and promoting healthy development of duty-free retail.

• Beijing: The Municipal Financial Regulatory Bureau jointly issued opinions on facilitating M&A to promote high-quality development of listed companies, aiming to activate capital market vitality, accelerate industrial integration/upgrading, and improve listed company quality.

Taxation

• State Council Tariff Commission: Announced adjustments to additional tariffs on imports originating from the US. Effective November 10, 2025, the 24% additional tariff rate will remain suspended for one year, while the 10% rate is retained. Another announcement halted additional tariffs on some US imports.

• Ministry of Finance: Drafted the "Enterprise Financial Rules (Public Comment Draft)" to standardize financial behavior, control risks, and guide corporate financial management. Jointly announced tax policies related to gold, proposing VAT exemptions until end-2027 for standard gold transactions on SGE and SHFE.

• State Taxation Administration: Jointly clarified implementation details for resource tax policies and collection from nine aspects, avoiding tax loss, maintaining order, and promoting precise implementation to support economic regulation and resource efficiency.

• Guangdong: The Provincial Tax Bureau issued an announcement strengthening water resource tax collection management, clarifying advanced water efficiency standards, tax standards for rural domestic water supply, payment periods for industrial water, and verification methods for water usage.

• Shanghai: The Municipal Tax Bureau issued a notice on tax-exempt qualification recognition for non-profit organizations in Shanghai, improving procedures to ensure tax reduction policies are implemented, reducing burden on NPOs, and supporting their public welfare functions.

Please click the following link to see more industry trends: 中富博睿政策速递（2025年11月刊）

-END-