In the world of cross-border business, many Foreign-Invested Enterprises (FIEs) in China find themselves in a sudden "squeeze." The foreign tax authorities might knock on the parent company's door asking: "You’ve provided technology and branding to your China subsidia...

Starting April 1, 2026, China will introduce a major revision of its VAT export rebate policy, the mechanism that allows exporters to recover value-added tax paid during the production process when goods are sold abroad.

The reference framework for 2026 is, first and foremost, Law No. 199 of 30 December 2025 (“State budget for the 2026 financial year and multi-year budget 2026–2028”), in force since 1 January 2026.