Sinobravo Policy Express (February 2026)

High-Level Interaction

German Chancellor Merz Visits China

On the afternoon of February 25, President Xi Jinping met with German Chancellor Merz, who was in China on an official visit. Xi put forward three points regarding the future development of China-Germany relations. First, the two countries should be reliable partners who support one another, upholding mutual respect and trust, open cooperation, and mutual benefit. He expressed hope that the German side would view China’s development objectively and rationally and pursue a positive and pragmatic policy toward China. Second, the two sides should be open and mutually beneficial innovation partners. They should strengthen the alignment of their development strategies, support the two-way flow of talent, knowledge, and technology between the two countries, and promote dialogue and cooperation in cutting-edge fields such as artificial intelligence. Third, they should intensify people-to-people exchanges to consolidate the public foundation of Sino-German friendship. Mertz stated that Germany values its relations with China, firmly adheres to the One-China policy, upholds mutual respect and open cooperation, and is committed to continuously deepening the all-round strategic partnership between the two countries. The German business community attaches great importance to the Chinese market and hopes to further deepen cooperation with China to achieve mutual benefit and common development. On the same day, Premier Li Qiang of the State Council held talks with Mertz, and the two premiers jointly witnessed the signing of cooperation documents in areas such as green transition, customs, sports, and media.

First Trilateral Foreign Ministers' Meeting Between China, Germany, and France

On February 13, Foreign Minister Wang Yi held the first trilateral foreign ministers’ meeting with German Foreign Minister Waldvogel and French Foreign Minister Barrot in Munich, Germany. Wang Yi emphasized that 50 years of exchanges and cooperation between China and Europe have proven that the two sides are partners rather than adversaries; mutual dependence is not a risk; intertwined interests are not a threat; and open cooperation does not undermine security. Germany and France reaffirmed their firm adherence to the One-China policy and their commitment to developing long-term, stable relations with China; they expressed a willingness to consult with China to resolve trade frictions and promote the balanced development of EU-China economic and trade relations. The three sides exchanged views on key issues in China-EU relations and matters of common concern such as the Ukraine crisis, spoke highly of the significance of this meeting, and agreed to continue strategic communication.

Xi Jinping and Trump Hold Phone Conversation

On February 4, President Xi Jinping held a telephone conversation with U.S. President Donald Trump. Xi Jinping stated that he attaches great importance to China-U.S. relations, and that both sides should strengthen dialogue and communication, properly manage differences, and expand practical cooperation. He noted that the Taiwan issue is the most important issue in China-U.S. relations, and urged the U.S. side to handle the issue of arms sales to Taiwan with caution. Trump stated that China-U.S. relations are the most important bilateral relationship in the world. He expressed the U.S. willingness to strengthen cooperation with China and maintain sound and stable China-U.S. relations during his term in office.

Xi Jinping Holds Video Meeting with Putin

On February 4, President Xi Jinping held a video meeting with Russian President Vladimir Putin. Xi Jinping noted that the two sides had successively hosted the Shanghai Cooperation Organization (SCO) Tianjin Summit and the Moscow Prime Ministers’ Meeting, strengthened multilateral cooperation, and remained committed to building a more just and reasonable global governance system. This year marks the 30th anniversary of the establishment of the China-Russia Strategic Partnership of Coordination. Both sides should seize this historic opportunity to intensify high-level exchanges, strengthen cooperation across all fields, and ensure that bilateral relations continue to develop along the right track. Putin noted that cooperation between the two countries in areas such as trade, energy, science and technology, and agriculture has deepened and become more substantive, while people-to-people exchanges have grown increasingly close. Russia is willing to continue strengthening strategic cooperation with China on multilateral platforms such as the United Nations, the Shanghai Cooperation Organization, and the BRICS countries; Russia will actively support China in hosting the APEC Leaders’ Informal Meeting in Shenzhen.

Personnel Updates

On February 27, the State Council announced appointments and removals of state officials, appointing Wang Weidong as Deputy Director of the National Medical Products Administration. Public records indicate that Wang Weidong previously served as Director of the Personnel Department of the National Medical Products Administration, among other positions.

On February 26, official sources confirmed that Li Yanyi has assumed the roles of Member of the Standing Committee of the Zhejiang Provincial Party Committee and Minister of Publicity. Li Yanyi has long served in Zhejiang, holding various positions in Hangzhou, at Zhejiang University of Technology, and at the Zhejiang Provincial Development and Reform Commission. He has served as Vice Governor of Zhejiang Province since January 2023.

On February 24, following a vote at the 25th session of the 14th Standing Committee of the Sichuan Provincial People’s Congress, Zhang Dongyun was appointed Vice Governor of the Sichuan Provincial People’s Government. Public records indicate that Zhang Dongyun previously served in the discipline inspection and supervision system, holding positions including Member of the Standing Committee of the Sichuan Provincial Commission for Discipline Inspection, Executive Deputy Secretary of the Provincial Commission for Discipline Inspection, and Deputy Director of the Provincial Supervisory Commission. In January 2024, Zhang Dongyun was transferred to serve as Secretary of the Nanchong Municipal Party Committee.

On February 13, the WeChat official account “Anhui Pioneer” of the Anhui Provincial Party Committee Organization Department announced that Wei Shengbin had been appointed as a member of the Standing Committee of the Anhui Provincial Party Committee and Minister of United Front Work. Prior to this appointment, he served as Vice Governor of Hubei, overseeing civil affairs, human resources and social security, public health, market regulation, and medical insurance.

On February 13, the State Council announced appointments and removals of state officials. Huang Ru was appointed as Deputy Director of the National Development and Reform Commission (part-time). Public records show that Huang Ru, a female of Hui ethnicity, holds a Ph.D. in Science, is a professor, and an academician of the Chinese Academy of Sciences. She has previously served as a member of the Standing Committee of the Party Committee and Vice President of Peking University, as well as President (at the vice-ministerial level) and Deputy Secretary of the Party Committee of Southeast University.

On February 6, the People’s Government of Guangdong Province announced appointments and removals of officials. Yao Lin was appointed Deputy Director of the Guangdong Provincial Department of Commerce; Sun Feng and Shang Ping were appointed Deputy Directors of the Guangdong Provincial Market Supervision Administration.

Macroeconomic Policies

Revised “Catalogue of Services Encouraged for Import” Released

On February 25, the Ministry of Commerce and six other departments jointly released the revised “Catalogue of Services Encouraged for Import.” In addition to adjusting and removing certain items, the catalogue added the categories “Other Professional Services” and “Medical and Health Services.” Other Professional Services include green building (engineering) and other low-carbon-related design, assessment, or certification services, as well as supply chain management services. Medical and health services include medical services for major diseases, as well as care, rehabilitation, and health promotion services. Additionally, low-carbon-related R&D and design services and integrated circuit R&D and design services have been added to the R&D and design services category.

PBOC Issues Document Supporting the Standardized Conduct of Cross-border RMB Interbank Financing

On February 24, the People’s Bank of China (PBOC) issued the “Notice on Matters Concerning Cross-border RMB Interbank Financing by Banking Financial Institutions,” supporting domestic banking financial institutions in conducting cross-border RMB interbank financing with overseas institutions in a standardized manner. The Notice takes effect upon issuance. It covers all types of cross-border RMB interbank financing business, linking the net outflow balance of such financing by banking financial institutions to their capital levels and financial strength to promote the reasonable conduct of business. Macroprudential management parameters have been established to enable countercyclical adjustments based on market conditions. The setting of these parameters fully considers market demand and the operational status of banking financial institutions, which is conducive to providing stable liquidity for the offshore RMB market and promoting the cross-border use of the RMB.

China Implements Unilateral Visa-Free Policy for Canada and the UK

Effective February 17, China has implemented a visa-free policy for holders of ordinary passports from Canada and the UK. Holders of ordinary passports from these two countries may enter China without a visa for business, tourism, family visits, cultural exchanges, or transit stays not exceeding 30 days. This visa-free policy will remain in effect until December 31, 2026.

State Administration for Market Regulation Issues Antitrust Guidelines for Online Platforms, Clarifying Risks Associated with Below-Cost Sales and “Lowest Price Guarantees”

On February 13, the State Administration for Market Regulation issued the “Anti-Monopoly Compliance Guidelines for Internet Platforms,” identifying eight scenarios involving new types of monopoly risks, including algorithmic collusion among platforms; organizing or assisting platform operators in reaching monopoly agreements; unfairly high pricing by platforms; selling below cost; blocking or filtering; “exclusive dealing” practices; “lowest price online” claims; and differential treatment by platforms.

Three Departments Issue Policy Document for Systematic Development of Low-Altitude Aviation Insurance

On February 12, the National Development and Reform Commission and two other departments released the “Implementation Opinions on Promoting the High-Quality Development of Low-Altitude Aviation Insurance,” proposing nine specific measures across four areas: policy framework, institutional development, product and service offerings, and foundational capabilities. The “Implementation Opinions” stipulate that by 2027, a mandatory insurance system for unmanned aerial vehicle (UAV) liability insurance will be preliminarily established, and low-altitude insurance products will continue to diversify; by 2030, the policy framework for low-altitude insurance will be basically formed, and its role in safeguarding the safe and healthy development of the low-altitude economy will continue to strengthen.

Beijing and 13 Other Provinces (Municipalities) Enhance Notarization Convenience for Hong Kong Investors

On February 10, the Ministry of Justice and the State Administration for Market Regulation jointly issued the “Notice on Further Improving Notarization Convenience for Hong Kong Investors.” Starting in February 2026, 14 provinces and municipalities—including Beijing, Tianjin, Hebei, Shanghai, Jiangsu, Zhejiang, Anhui, Fujian, Shandong, Hubei, Guangdong, Chongqing, Sichuan, and Hainan—will implement the electronic circulation of simplified notarized documents certifying the legal status of Hong Kong investors. When processing the establishment or change of registration for Hong Kong-funded enterprises, market regulation authorities in the relevant regions will access the electronic versions of the simplified notarized documents in accordance with the law and, in principle, will no longer accept paper copies.

Ministry of Civil Affairs and Other Departments Set Safety Management Goals for Elderly Care Institutions Over the Next Three Years

On February 11, the Ministry of Civil Affairs and nine other departments issued the “Opinions on Further Strengthening Safety Management in Elderly Care Institutions,” proposing that by the end of 2026, existing safety risks and hidden dangers in elderly care institutions will be thoroughly investigated and rectified, with the goal of dynamically eliminating all safety risks and hidden dangers. By the end of 2027, human, physical, and technological security measures will be strengthened in accordance with local conditions, and the intrinsic safety level of elderly care institutions will be significantly improved. By the end of 2028, the long-term mechanism for safety management in elderly care institutions will be further consolidated and improved.

Tax Preferential Policies for Returned Cross-Border E-Commerce Export Goods Extended for Two Years

On February 9, the Ministry of Finance issued the “Announcement on Tax Preferential Policies for Returned Cross-Border E-Commerce Export Goods,” extending the tax preferential policies for returned cross-border e-commerce export goods for two years, effective until the end of 2027. During the specified period, goods (excluding food) declared for export under the cross-border e-commerce customs supervision codes (1210, 9610, 9710, 9810) and re-imported in their original condition within six months of the export date due to unsold inventory or returns shall be exempt from import duties, import-stage value-added tax, and consumption tax; export duties already levied at the time of export shall be refunded.

Eight Government Departments Issue Document to Further Prevent and Address Risks Related to Virtual Currencies

On February 6, the People’s Bank of China and seven other government departments jointly issued the “Notice on Further Preventing and Addressing Risks Related to Virtual Currencies and Other Matters” to further prevent and address risks associated with virtual currencies and the tokenization of real-world assets. The notice includes a comprehensive ban on all virtual currency-related business activities within China, as well as a prohibition on overseas entities illegally providing such services to domestic residents; a comprehensive ban on the registration of related names, with specific terms such as “virtual currency,” “stablecoin,” and “RWA” prohibited from appearing in the names or business scopes of enterprises or individual businesses; and continued crackdowns on “mining” activities, along with severe measures against illegal and criminal activities such as fraud, money laundering, and illegal fundraising using virtual currencies as a pretext.

CSRC: Strict Regulation of Overseas Issuance of Asset-Backed Security Tokens for Domestic Assets

On February 6, the China Securities Regulatory Commission (CSRC) issued the “Regulatory Guidelines on the Overseas Issuance of Asset-Backed Security Tokens for Domestic Assets” to prevent risks associated with speculative trading. The guidelines took effect upon publication. The CSRC will strictly regulate the overseas issuance of asset-backed security tokens for domestic assets in accordance with laws and regulations. Prior to conducting related business, the domestic entity that actually controls the underlying assets shall file a report with the CSRC, submitting required materials such as the filing report and a complete set of overseas issuance documents, and providing a comprehensive explanation of the domestic filing entity’s information, the underlying assets, and the token issuance plan. The domestic filing entity, its controlling shareholders, actual controllers, directors, supervisors, senior management, and relevant intermediaries shall ensure that the filing materials submitted are true, accurate, and complete, and must not contain any false statements, misleading representations, or material omissions.

11 Government Departments Jointly Issue Document to Enhance the Convenience of Digital Services for Inbound Foreign Nationals

On February 5, the Cyberspace Administration of China and 10 other government departments jointly issued the “Implementation Opinions on Enhancing the Convenience of Digital Services for Inbound Foreign Nationals,” aimed at eliminating bottlenecks and obstacles in digital services for inbound foreign nationals and establishing an interconnected, inclusive, and mutually recognized digital service system. The Opinions propose that by 2027, the internationalization and convenience of digital entry services will be significantly enhanced, with basic digital services becoming more seamless and efficient, and bottlenecks in digital application services across sectors such as residence, healthcare, payments, tourism, and public services will be largely resolved.

Hainan Residents Enjoy “Zero Tariff” on Imported Goods for Personal Consumption

On February 5, the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration issued the “Notice on the ‘Zero Tariff’ Policy for Imported Goods Consumed by Residents on Hainan Free Trade Port.” The policy stipulates that for imported goods purchased by residents of Hainan Free Trade Port at designated retail outlets, import duties, as well as value-added tax and consumption tax at both the import and domestic stages, will be exempted within the prescribed duty-free quota and product list. “Island residents” include Chinese citizens holding a Hainan Province ID card, Hainan Province residence permit, or Hainan Province social security card, as well as foreign nationals working or living in Hainan Province who hold valid residence permits. The tax-free allowance is 10,000 yuan per person per year. Tax-exempt goods focus on daily necessities for island residents, primarily including certain food and beverages, daily chemical products, household goods, and maternal and infant products. According to regulations, “zero-tariff” goods purchased by island residents are final consumer goods intended for personal use and may not be resold.

General Administration of Customs Publishes List of Customs Commodity Codes for Non-Comprehensive Tax Category Goods Subject to a 9% Import-Stage VAT Rate

On February 2, the General Administration of Customs issued the “Announcement on the List of Customs Commodity Codes for Non-Comprehensive Tax Category Goods Subject to a 9% Import-Stage VAT Rate” to ensure the accurate application of import-stage VAT rates. Effective from the date of this announcement, the import and export of relevant goods must be declared using the customs commodity codes listed in the annex to this announcement. For goods imported between January 1, 2026, and the date of this announcement, if the customs commodity codes declared by the consignee or their agent do not comply with the above provisions, customs declaration amendment procedures must be carried out in accordance with relevant regulations.

Ministry of Finance and State Taxation Administration Issue Three New VAT Management Policies

• On February 2, the Ministry of Finance and the State Taxation Administration issued three new VAT management policies, all of which will take effect on January 1, 2026.

• The “Announcement on Matters Concerning Input VAT Deduction and Other Related Issues” clarifies the input VAT deduction standards for general taxpayers purchasing motor vehicles, domestic passenger transportation services, and road, bridge, and lock passage services; standardizes matters related to asset restructuring and the timing of tax liability; and unifies deduction vouchers and calculation rules.

• The “Measures for the Administration of Advance VAT Payments” defines five major scenarios for advance payments, including cross-regional construction services and real estate presales. It clarifies the locations for advance payments, advance collection rates, time limits, and offset rules, and stipulates that small-scale taxpayers may be exempt from advance payments if the advance payment location does not reach the tax threshold.

• The “Interim Measures for Input Tax Deduction on Long-Term Assets” sets a threshold of 5 million yuan: small-value mixed-use long-term assets are fully deductible, while large-value assets follow a “deduct first, adjust later” approach. This simplifies the input tax deduction process for long-term assets and reduces enterprises’ accounting costs.

Adjustment of the VAT Threshold

On February 1, the State Taxation Administration issued the “Announcement on VAT Administration Matters Including the Threshold Standard,” clarifying the VAT threshold: From January 1, 2026, to December 31, 2027, for small-scale taxpayers engaged in taxable transactions, the threshold is 100,000 yuan in monthly sales for those using a one-month tax period. For those using a quarterly tax period, the threshold is 300,000 yuan in quarterly sales. For taxpayers paying on a per-transaction basis, the threshold is 1,000 yuan in sales per transaction (or per day). For taxpayers engaging in multiple taxable transactions within a single day, the threshold applies on a daily basis. Additionally, the detailed rules for determining the VAT threshold for individual taxpayers have been adjusted and optimized. Effective this year, the threshold for taxpayers paying VAT on a per-transaction basis has been raised from 500 yuan to 1,000 yuan per transaction (per day).

Please click the following link to see more industry trends: 中富博睿政策月刊（2026年2月）

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