Policy News for SMEs in China: December 2025

29 December 2025

Catalogue of Industries Encouraging Foreign Investment: 2025 Edition

Source: National Development and Reform Commission (NDRC) and Ministry of Commerce (MOFCOM)

Effective 1 February 2026, the new Catalogue will replace the 2022 edition and expand the number of encouraged industries for foreign investment with the aim of attracting global investors to certain regions and sectors such as green development, advanced manufacturing and services. See the full 2025 Catalogue >

Preliminary Ruling on the Anti-Dumping Investigation into EU Dairy

Source: Ministry of Commerce (MOFCOM)

In a preliminary ruling on the investigation launched by MOFCOM in August 2024 into milk, cheese and cream exports from the EU, China ruled that financial support under the EU’s Common Agricultural Policy, as well as additional subsidies from individual EU Member States, had distorted competition in the market for its domestic producers. Starting from 23 December 2025, duties ranging from 28,6% to 42,7% are imposed on a number of European dairy exports to China. Read the full announcement >

Hainan Free-Trade Port: Launch of Closed Customs Operations

Source: State Council

Starting from 18 December, Hainan operates as a closed customs zone, with zero-tariff advantages and domestic–offshore separation for goods and capital flows. A key change coming with the launch is the full rollout of multifunctional free trade accounts, or EF accounts, enabling easier cross-border payments and financing under relaxed quotas. Island-wide pilot reforms now apply, including new cross-border fund flows, while maintaining regulatory restrictions between the “first line” (the national border) and the “second line” (the customs boundary between the island and China’s mainland). Read full news item on the launch >

Final Ruling on the Investigation into Pork Products from the EU

Source: MOFCOM

Following an investigation launched in June 2024, China’s Ministry of Commerce has announced anti-dumping duties ranging from 4,9% to 19,8% on pork imports from the European Union, effective 17 December 2025. The tariffs included in the ruling are much lower than those from the preliminary ruling, which demanded deposit rates up to 62,4% from European pork exporters. Read the full text in Chinese >

Corporate Accounting Standards: Release of the Interpretation No. 19

Source: Ministry of Finance

The document clarifies accounting treatments under China’s Corporate Accounting Standards, including on the recognition and measurement of compensation assets in acquisitions under non-common control, restrictions on capital reserve transfers when disposing of subsidiaries, rules for liabilities settled via electronic payment systems, and enhanced classification and disclosure requirements for financial instruments. Retrospective adjustments are required from 1 January 2026. Read the full text in Chinese >

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