New Legislative Developments in China

Chinese President Xi Jinping has enacted three new laws targeting value-added tax (VAT), supervision, and the popularization of science and technology following a recent legislative session. The VAT law, to take effect on January 1, 2026, marks a significant move towards law-based taxation, formalizing 14 out of 18 tax categories and enhancing revenue transparency. This law also allows for tax exemptions and deductions to promote the growth of specific sectors, ultimately aiming for high-quality development in the economy. Additionally, amendments to the supervision law enhance anti-corruption efforts and improve international cooperation, while the revised science and technology law focuses on societal responsibilities in scientific outreach and innovation.