This webpage is currently available in:

Insights

CW CPA Professional Insights on China and Cross-Border Business

Topics
China’s economic outlook for 2025 signals a year of transformation, marked by shifts towards high-tech production, consumption-driven growth, and sustainable development. With GDP expected to grow by at least 5%, government policies are focusing on stimulating domestic demand, stabilizing the property sector, and expanding green energy and healthcare industries. Key initiatives include consumer trade-in programs, fiscal stimulus, and monetary easing. While global trade tensions pose challenges, China’s strategic diversification and policy adaptability position it for resilience. As 2025 unfolds, China remains committed to innovation, high-quality growth, and economic stability.
On December 20, 2024, the State Administration for Market Regulation (SAMR) issued the Implementation Measures for the Administration of Company Registration (“SAMR Order No. 95”), effective February 10, 2025. As a departmental regulation issued under the State Council's authority, SAMR Order No. 95 standardizes how local registration authorities administer company registration, ensuring compliance with China’s broader corporate governance reforms.
On December 12, 2024, the Lin-gang Special Area of the Shanghai Free Trade Zone introduced new measures to promote high-quality financial leasing development. These policies aim to enhance competitiveness through optimized business environments, financial support, and industry-specific incentives. Key areas of focus include civil aviation, medical equipment, and green leasing, alongside fostering cross-border innovation and talent development. Effective from January 1, 2025, these measures will shape a dynamic financial leasing ecosystem. Companies should leverage these policies, strengthen financial partnerships, and expand internationally to maximize growth opportunities, especially under the Belt and Road Initiative.
The Catalogue of Encouraging Industries in Western China (2025 Version) is a policy document that outlines the industries that the Chinese government encourages for investment and development in its western regions. The 2025 version aims to further boost the economic growth in western China by providing attractive incentives for both domestic and foreign investors. The industries listed in this catalogue are considered essential for the region’s modernization and sustainable development. These industries encompass various sectors, including high-tech, clean energy, advanced manufacturing, and ecological protection.
German companies are intensifying their investments in China, signaling strong confidence in the market's long-term potential. Key sectors like automotive, chemicals, and fashion are leading this growth. Mercedes-Benz and Volkswagen are advancing electric vehicle (EV) innovations tailored for China, while BASF commits €10 billion to a new chemical production facility. Hugo Boss is expanding its retail footprint to capture China's demand for premium products. With €7.3 billion in Foreign Direct Investment in the first half of 2024, Germany’s "In China, for China" strategy emphasizes localization and sustainability. Despite geopolitical challenges, German firms remain focused on fostering strategic growth and partnerships.
The 2024 revision of China's Anti-Money Laundering (AML) Law brings significant updates to combat financial crimes. Effective January 1, 2025, the law introduces a risk-based approach, expands predicate offenses, and strengthens compliance obligations for financial institutions. Foreign-invested and outbound enterprises must adopt robust AML practices, including thorough due diligence and transparent financial transactions. Advanced technologies like AI and blockchain are encouraged for AML monitoring, reflecting the law's focus on evolving risks. The revision also emphasizes international cooperation, aligning China’s efforts with global AML standards and reinforcing compliance for enterprises with cross-border operations.