State Council’s 2025 legislative agenda focuses on taxes and economic security
On Wednesday, the State Council released its 2025 legislative agenda.
Some context: The document is a laundry list of the laws and regulations ministries and agencies are working on this year.
- Many items on the list are in the early stage of development and won't necessarily be completed this year.
The State Council is looking to make three tweaks to the tax system this year, with the legislative agenda covering the:
- Consumption Tax Law
- Revised Law on the Administration of Tax Collection
- Implementation Regulations for the Value-Added Tax Law
The legislative agenda also includes three regulations to strengthen China's economic security framework:
- Revised Regulations on the Administration of Technology Import and Export
- Regulations on the Classified Protection of Cybersecurity
- Revised Implementing Rules for the Counter-Espionage Law
Notably, the State Council also aims to produce a draft Finance Law this year.
Why the finance law is important: The 2024 Third Plenum called for a law that provides standardized, legal oversight of all financial activities in China.
- The proposed law was included in the legislature's 2025 annual work report.
- Given Xi Jinping has previously expressed anxiety about financial risks, we expect this law may be rushed through, leading to overly restrictive legislation that suppresses financial activity.
Get smart: While none of the above legislation will change the business environment overnight, new tax laws and economic security regulations will shape the operating environment over the medium term.
- Businesses should therefore follow the development of these laws and regulations closely.