Policy News for SMEs in China: January 2026

30 January 2026

China’s New Value-Added Tax Law Enters into Effect

State Council

The new VAT Law introduces significant changes to the previous regime, redefining taxable transactions based on place of consumption, streamlining deemed taxable sales, tightening rules on taxpayer status conversion, and reinstating time limits for export VAT refunds. The law also formalises small-scale taxpayer exemptions, clarifies individual VAT withholding, and introduces a general anti-avoidance rule. Read the full text in Chinese >

China’s Revised Cybersecurity Law Enters into Effect

National People’s Congress

The amendments, in effect since 1 January 2026, are the most significant changes brought to date to the country’s Cybersecurity Law. They include extensive regulatory additions on AI, and reinforce personal-information obligations for network operators, in alignment with the Personal Information Protection Law. They also increase penalties for data breaches and improper disclosure of information related to cybersecurity. Read the China IP SME Helpdesk’s article on the text >

Announcement of Safeguard Measures on Beef Imports

General Administration of Customs

On 31 December 2025, China announced safeguard measures set for a duration of 3 years, with additional tariffs at a 55% rate on beef imports exceeding country-specific quotas. The safeguard measures are set for a duration of 3 years. Read the announcement here >

Drug Administration Law Revision

State Council

The revised regulations on the implementation of China’ Drug Administration Law aim to promote pharmaceutical innovation and strengthen oversight. Effective from 15 May, the changes focus on a clinical value-oriented drug registration system, faster review pathways and incentives for paediatric and rare disease medicines. The rules will tighten controls on manufacturing, online drug sales and safety supervision. Read more on the changes >

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EU SME Centre: China Market Research, Training, Advice | Get Ready for China
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