China

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

China's economy showed strong resilience and vitality in 2025, achieving a 5-percent growth despite a complex domestic and international environment, according to Asif Cheema, Asian Development Bank's (ADB) country director for China. The ADB revised its 2025 growth forecast upward in December, reflecting confidence in China's economic trajectory. The growth was driven by robust export performance and active industrial sectors, notably in high-tech and new energy industries.

In 2025, China ranked among the top 10 of the Global Innovation Index and surpassed the OECD average with an R&D spending intensity of 2.8 percent. Cheema highlighted "resilience" and "innovation" as key attributes of China's economy, citing rapid progress in artificial intelligence (AI) research and patenting. AI's integration with traditional industries is boosting productivity and fueling significant corporate revenue growth, positioning AI as a strong engine of economic expansion.

Cheema also praised China's macroeconomic policies aimed at improving productivity, enhancing social security to stimulate domestic consumption, and further opening the economy. Foreign investor confidence increased sharply, with offshore inflows into Chinese stocks reaching 50.6 billion U.S. dollars in the first ten months of 2025, up significantly from 11.4 billion dollars for all of 2024.

Looking ahead, Cheema expressed optimism about China's economic outlook, emphasizing stability and sustainable growth through continued efforts to boost domestic consumption and high-tech sectors. As the world’s second-largest economy and largest exporter, China plays a vital role in the global economy by fostering job creation, economic opportunities, and technology transfers through both trade and overseas investments.

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.