Trade Tensions Escalate

1.  China to Impose Tariffs on U.S. Products and Launches Anti-Monopoly Probe into Google

China has unveiled retaliatory measures against the United States as both countries prepare for a renewed trade war. However, observers suggest that Beijing negotiate. On Tuesday, Beijing announced it would impose punitive tariffs ranging from 10% to 15% on certain U.S. products, effective February 10. This decision responds to the recently announced 10% tariffs imposed by the U.S. on Chinese goods, citing concerns over fentanyl controls.

2.  President Trump signs an order to delay tariffs on de minimis imports from China

US President Donald Trump signed an executive order on Friday, delaying tariffs on lower-value packages from China. The exemption for packages valued under US$800 was removed on February 1, as part of an executive order that raised tariffs on Chinese imports by 10% across the board. This exemption had played a significant role in driving the growth of China’s cross-border e-commerce industry, allowing vendors to avoid US import duties and customs checks. Removing the exemption means that goods from Shein, Temu, and other Chinese e-commerce players will now be subject to US duties, which already exceed 20% in some industries.

Taxation

1. STA Clarifies Matters Relating to Certificate of Chinese Fiscal Resident

The State Taxation Administration (STA) has released the Announcement on Relevant Matters Concerning the Certificate of Chinese Fiscal Resident, effective from April 1, 2025. The announcement proposes the following optimizations:

- Expanding Applicable Scenarios: Applicants can now select the purpose of their application based on actual circumstances, whether to claim treaty benefits or not. This covers various overseas scenarios taxpayers have encountered in recent years.

- Full-Process Online Handling: Enterprises and individuals can apply for the Certificate of Chinese Fiscal Resident entirely online via the e-tax website, streamlining the application process.

- Adjusting Certificate Content: The certificate now includes additional information such as the taxpayer identification number, removes the signature of the responsible official from the tax authority, and allows for notes on partnerships or other relevant details as needed by applicants.

- Reducing Processing Time: If the competent tax authority can independently determine fiscal residency status, the processing time will be reduced from ten working days to seven working days.

Business and Economy

1. Global Powerhouses Awarded for their Role in Jing'an's Success

L'Oréal, Louis Vuitton, and Hermès—major international brands with regional headquarters in Shanghai's Jing'an District—are among the leading economic drivers in this vibrant business hub, as announced this week. These global powerhouses were recognized at the Jing'an Business Environment Service and High-Quality Development Award Ceremony, where over 230 firms were honored for their contributions to the district's economic growth. Other notable awardees included global giants such as SAP, KPMG, Gucci, TUV Rheinland, and Pfizer, alongside prominent domestic players like Guotai Junan Securities, Ping An Asset Management, and SAIC Finance, all of whom play crucial roles in shaping Jing'an's thriving economy.

At PHC Advisory, we can offer you full support on matters regarding doing business in China, or any other issues your business may face. If you would like to know more about policies relevant to your business in Italy or Asia, please contact us at info@phcadvisory.com.  

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