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Key Takeaways from China’s Two Sessions 2025: Economic Policy Priorities and What They Mean for Foreign Investors

On 11 March 2025, China wrapped up its yearly Two Sessions on a promising note, signalling encouraging prospects ahead. The Two Sessions refer to the annual meetings of the national legislature, the National People’s Congress, and the political advisory body, the National Committee of the Chinese People’s Political Consultative Conference. They bring together policymakers to deliberate on the country’s key economic and social policy direction for the year. Marking the last year of the 14th Five-Year Plan, 2025 prioritises stability while concurrently building on forward momentum for growth and development.

Latest Insights

Exploring Hong Kong’s Patent Box Regime

On July 5th, 2024, the Hong Kong SAR Government enacted the Inland Revenue (Amendment) (Tax Concessions for Intellectual Property Income) Ordinance 2024, introducing a “patent box” tax incentive regime (“Patent Box Regime”). This regime offers tax concessions on qualifying profits derived from eligible intellectual property (IP) developed through research and development (R&D) activities within Hong Kong. By implementing this regime, Hong Kong seeks to stimulate the growth of IP trading, encourage companies to engage in IP-related activities, and solidify its position as a leading regional hub for intellectual property.

This article delves into the intricacies of the Patent Box Regime, highlighting its objectives, key features, eligibility criteria, and implications for businesses.

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How to Conduct a Successful Sustainability Report

Effective sustainability reporting is crucial for demonstrating an organization’s commitment to sustainable development. This article guides you through essential considerations and structured steps for a successful sustainability report. Begin by securing top-level commitment to ensure resource allocation and understand the regulatory landscape early on. Start small, focusing on core sustainability metrics, and gradually expand your scope. Develop in-house expertise and engage stakeholders to create a comprehensive sustainability narrative. A five-step process—from assessing readiness to continuous improvement—helps organizations draft meaningful reports that resonate with stakeholders and enhance sustainability efforts. With the right approach, sustainability reporting can drive significant environmental and social benefits while aligning with business objectives.

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Regulatory Updates

Dong Business in China

Our China Guides comprise a series of informative articles that provide insights on efficiently handling the compliance responsibilities and administrative formalities associated with establishing and scaling up your business in Mainland China.

Dong Business in Hong Kong

Are you looking to setting up a company in Hong Kong? Checkout our a series of comprehensive guides on how to set up and operate a business in Hong Kong.

Expanding your business into

Greater Bay Area

The Greater Bay Area (GBA) of China presents vast opportunities for businesses seeking to expand their operations in the region. The GBA comprises nine cities in Guangdong Province, Hong Kong, and Macau, with a combined population of over 70 million and a GDP of approximately USD 1.6 trillion. It is a critical part of China’s economic development strategy, aimed at creating a world-class metropolis and driving economic growth in the region.

We have a series of informative articles that delve into the various business opportunities available in the GBA. These articles cover a wide range of industries, including finance, technology, logistics, and tourism, among others. We provide insights on the GBA’s market potential, investment incentives, regulatory environment, and emerging trends that businesses can capitalize on.

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China Pushes for Nationwide Adoption of Fully Digitalised E-Invoices

Effective 1 December 2024, China’s State Administration of Taxation (SAT) has implemented fully digitalised e-invoices, or e-fapiao, nationwide. This initiative simplifies invoicing processes, replacing traditional paper-based invoices with a streamlined digital format featuring 17 key elements, including a unique 20-digit identification code. Legally equivalent to paper invoices, the e-invoice reduces administrative burden and enhances tax compliance. The move underscores China’s commitment to modernizing tax administration while promoting efficiency and standardization for businesses and consumers. By eliminating the need for duplicate copies, the digital system improves usability and supports the broader digital transformation of the country’s financial ecosystem.

Market Entry, Industry Updates and More...

China’s Ambitious 2025 Action Plan to Spur Foreign Investment

On 19 February 2025, China’s Ministry of Commerce (“MOFCOM”) and National Development and Reform Commission jointly issued the 2025 Action Plan for Stabilising Foreign Investment (“Action Plan”). Policymakers have repeatedly affirmed the pivotal role played by foreign investment in the pursuit of high-quality opening-up. The Action Plan, therefore, serves as the logical and natural continuation of these long-standing efforts to nurture innovative productive forces. The 20 measures under 4 aspects specified in the Action Plan are to be implemented nationwide by the end of 2025. Details regarding ancillary measures to facilitate their effective and efficient implementation will be released in due course.

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