China

Global Times | English | News | Jan. 23, 2026 | Geopolitical Conflict and Disputes

Chinese Ambassador Sun Lei, Chargé d'Affaires a.i. to the UN, stated on January 21, 2026, that Japan is fundamentally unqualified to seek a permanent seat on the UN Security Council. He argued that Japan cannot shoulder the responsibility of maintaining international peace and security nor gain the trust of the global community.

Sun highlighted that the Security Council is central to upholding the postwar international order and that Japan's historical militarism has not been fully addressed. Despite the Tokyo trials punishing Japanese war criminals 80 years ago, right-wing forces in Japan have sought to whitewash wartime atrocities such as the Nanjing Massacre and forced labor, while revising history textbooks and honoring Class-A war criminals at the Yasukuni Shrine.

He also criticized Japanese leaders, including Prime Minister Sanae Takaichi, for provocative remarks on Taiwan, pro-nuclear positions, and efforts to revise security policies, which Sun viewed as a push toward remilitarization that threatens regional and global security.

Sun concluded that a country that denies its wartime crimes, challenges World War II outcomes, and disregards the postwar order cannot be trusted with the responsibilities of a permanent Security Council member. China, as a current permanent member, expressed its willingness to collaborate with peace-loving nations to uphold the postwar order and maintain the Security Council's authority and unity.

社交电商步入合规深水区：应对传销与税务风险的实战攻略

AnJie Broad Law Firm | Local Language | AcademicThink | Jan. 23, 2026 | Regulation

Social e-commerce in China has grown rapidly over the past decade, driven by models based on social networks and user trust, such as Pinduoduo's group-buying and Yunji’s membership platforms. This growth has created dynamic business forms but has also raised significant compliance concerns, particularly around pyramid selling and tax risks. In response, the State Council has prioritized revising regulations on pyramid selling and direct selling in 2025, signaling intensified enforcement and clearer regulatory standards. Concurrently, new tax regulations have redefined platform responsibilities, transitioning from voluntary assistance to statutory agency roles for tax reporting and collection.

The social e-commerce ecosystem primarily involves platform enterprises, individual promoters, and consumers, with some models including institutional service providers managing promoters. While multi-level marketing elements raise suspicions of pyramid selling, criminal law sets a high threshold for such liability, generally exempting compliant platforms that base compensation on actual sales without coercion or deception. However, administrative regulations have broader criteria and have become a key risk area, with penalties including hefty fines, operational suspensions, and potential license revocation. Legal debates focus on how to define hierarchical layers in the distribution chain and the compliance value of structuring intermediate tiers as independent legal entities, which is not a guaranteed safeguard.

Since 2025, enhanced tax regulations mandate internet platforms to act as statutory agents for tax collection related to flexible-employment income, requiring robust compliance systems. Individual promoters must provide truthful identity and income declarations and choose between platform agency tax declaration or self-declaration, while institutional service providers are required to maintain complete and transparent tax and accounting records to avoid risks.

To navigate the tightening regulatory environment, social e-commerce entities must adopt a comprehensive compliance framework. This includes defining platform roles strictly as compliant e-commerce operators, designing profit models aligned with legal standards for platforms, suppliers, promoters, and service providers, and implementing detailed internal controls over membership rules, compensation, and hierarchical structures. Firms are urged to standardize external marketing and user compliance management, coordinate legal and fiscal processes, and embed compliance into ongoing governance rather than one-off projects.

The industry faces a “double strengthening” regulatory approach with ongoing revision of anti-pyramid selling laws and the introduction of data-driven tax supervision systems. Success in this environment depends on firms’ ability to align business models with legal requirements, embrace transparent operations, actively engage with regulators, and promote self-discipline within the sector. The shift away from uncontrolled growth toward compliance-focused development is positioned not as a restriction but as an opportunity to restore social e-commerce to its core value of efficient consumer empowerment and sustainable market growth.

Xinhua | English | News | Jan. 23, 2026 | UndeterminedEconomic Growth

China's 2025 GDP growth demonstrated resilience amid global uncertainties, reflecting the early effects of a strategic economic rebalancing under the 15th Five-Year Plan (2026-2030). Policymakers are shifting focus from pursuing headline growth figures to enhancing economic stability and balance by expanding domestic demand, investing in human capital, and promoting innovation. This approach prioritizes long-term resilience through targeted support rather than broad stimulus measures.

The central bank's recent cautious monetary easing and planned increased fiscal spending for 2026 underscore the government's commitment to sustainable development. Fiscal resources will be directed towards consumption, human capital investment, and livelihood protection, balancing current needs with medium- and long-term financial sustainability. External observers see this as a sign of China's strategic transformation toward economic maturity.

Structural rebalancing is central to the new economic direction, with domestic consumption and technological advancement replacing traditional growth drivers like investment and exports. The government plans to release a domestic demand expansion strategy for 2026-2030, emphasizing sectors such as elderly care, green technology, and cultural tourism. Innovation, particularly in areas like artificial intelligence, is expected to enhance productivity and drive future growth.

A strong emphasis is placed on investing in people, viewing human capital as essential to sustainable growth and innovation. Policies aim to increase household incomes, stabilize and improve employment quality, and leverage China’s vast pool of STEM graduates to transition from a "population dividend" to a "talent dividend." This focus on intrinsic economic stability through rebalancing is poised to shape China's development trajectory amid global complexities in 2026 and beyond.