Key Economic Indicators Reflect Stabilization in October, Reports National Bureau of Statistics

On December 16, the National Bureau of Statistics released data indicating a steady rebound in key economic indicators for October, signaling improvements across consumption, services, and trade.

• Industrial Output: The added value of industrial enterprises above the designated size increased by 5.4% year-on-year in November. Cumulatively, from January to November, growth remained stable at 5.8%, consistent with the January-October period.
• Retail Sales: Consumer goods retail sales in November reached CNY 4.38 trillion, marking a 3.0% year-on-year increase, albeit a deceleration of 1.8 percentage points from October. Month-on-month, retail sales rose 0.16%. From January to November, total retail sales reached CNY 44.27 trillion, growing 3.5% year-on-year, maintaining the same pace as the January-October period.
• Fixed Asset Investment: Fixed asset investment (excluding rural households) totaled CNY 46.58 trillion from January to November, reflecting a 3.3% year-on-year increase. Excluding real estate development, fixed asset investment posted a robust growth of 7.4%.

China Extends Visa-Free Transit Policy to 240 Hours, Expands Accessibility

On December 17, China’s National Immigration Administration (NIA) announced a major update to its visa-free transit policy, extending the permitted stay for eligible foreign nationals from the original 72 or 144 hours to 240 hours (10 days). The updated policy, effective immediately, aims to further relax and optimize entry procedures for international travelers.

Key Features of the Extended Policy:

• Eligible Travelers: Citizens from 54 countries, including Russia, Brazil, the United Kingdom, the United States, and Canada, can now benefit from the policy.
• Expanded Entry Points: The number of ports eligible for visa-free transit has increased from 39 to 60, adding major hubs such as Chengdu Tianfu International Airport in Sichuan and Sanya Phoenix International Airport in Hainan.
• Broader Geographic Access: The visa-free activity zones have expanded from 19 to 24 provinces, autonomous regions, and municipalities, including Shanxi, Anhui, Jiangxi, Hainan, and Guizhou.

Enhanced Travel Flexibility:

Under the new policy, foreign nationals can make cross-province travels within the designated visa-free areas. This is a significant improvement over previous restrictions, which limited travelers to the province of their port of entry. For example, under the old policy, travelers entering through Beijing were restricted from visiting Shanghai. The updated rules now allow seamless travel between cities such as Beijing, Shanghai, and Hong Kong within the 240-hour window.

Broader Implications:

This policy update reflects China’s commitment to enhancing international travel convenience and fostering cultural and economic exchanges. By providing greater flexibility for foreign nationals, the extended visa-free policy is expected to boost tourism, business visits, and international transit through China, making the country a more attractive destination for global travelers.

Data Source: https://www.nia.gov.cn/n897453/c1688948/content.html

Trump Signals Softened Stance on TikTok, Invites Xi Jinping to Inauguration

On December 22, President-elect Donald Trump suggested he may allow TikTok to continue operating in the United States, citing the platform’s significant role in his presidential campaign’s digital outreach. Speaking to supporters in Phoenix, Arizona, Trump acknowledged TikTok’s impact, calling it a key driver of campaign engagement, and hinted at postponing any potential ban on the app.

Trump’s remarks come in the wake of an April Senate-approved law mandating ByteDance, TikTok’s Chinese parent company, to divest its ownership over national security concerns. ByteDance has since challenged the legislation, and the Supreme Court is set to deliberate on the matter. Should the court rule unfavorably for ByteDance, TikTok faces an effective ban as early as January 19, the day before Trump’s inauguration.

The Justice Department continues to assert that TikTok’s Chinese ties pose ongoing security risks, while TikTok defends its data practices, emphasizing that all U.S. user data is stored on Oracle’s domestic cloud servers, with moderation decisions handled by American staff.

Trump’s TikTok remarks coincide with an unexpected diplomatic overture: an invitation extended to Chinese President Xi Jinping to attend the inauguration. While the details remain unclear, analysts interpret this move, paired with Trump’s softer tone on TikTok, as an attempt to recalibrate U.S.-China relations.

Tensions over technology, security, and trade have dominated the bilateral agenda, but Trump’s acknowledgment of TikTok’s utility and his invitation to Xi may signal an opening for dialogue.

China Proposes New Tax Reporting Regulations for Internet Platforms to Strengthen Market Fairness

The State Taxation Administration, in collaboration with the State Administration for Market Regulation, has unveiled a draft of the Regulations on Tax-Related Information Reporting by Internet Platform Enterprises for public consultation. The consultation period runs from December 20, 2024, to January 19, 2025.

The draft regulations aim to create a standardized system for internet platforms to report tax-related information, promoting fair market competition and transparency. Pilot programs have been conducted in five provinces—Tianjin, Jiangxi, Hubei, Hunan, and Guangdong—since 2022, targeting online sales and live-streaming platforms.

Key Features: The “Three No Changes” Principle

1. No Additional Tax Burden or Operational Disruptions: Platform companies will not face increased tax obligations or changes to operational processes.
2. No Tax Increases for Compliant Entities: Businesses and workers who already comply with tax regulations will not see tax hikes.
3. Protection for Small Businesses: Most small businesses will remain unaffected, as they continue to benefit from existing VAT and income tax exemptions, such as the ¥100,000 monthly VAT threshold.

The proposed regulations aim to reduce tax evasion and fraudulent activities, particularly targeting high-income, non-compliant entities. Experts highlight that over 90% of platform operators, consisting mainly of small businesses, will still enjoy existing tax benefits.

The draft exempts platforms from reporting income data for workers in essential sectors, such as delivery, transportation, and domestic services. This safeguard ensures these workers’ livelihoods remain unaffected.

By deterring tax evasion and fake transactions, the regulations are expected to strengthen platform service quality, ensure fair competition, and uphold consumer rights. Transparent reporting practices will foster innovation and build trust between businesses, users, and regulators, contributing to a healthier digital economy.

This initiative represents a significant step forward in balancing regulatory oversight with the need to protect small businesses and platform workers, ensuring sustainable growth for the internet economy.

Data Source: https://www.chinatax.gov.cn/chinatax/c102916/c5237294/content.html

Rapid Response Restores Shanghai Metro Line 11 in Record Time After Crane Accident

At approximately 8 a.m. on Sunday, December 22, a tower crane from a nearby construction site fell onto Shanghai Metro Line 11, causing damage to trains and line infrastructure. Fortunately, no injuries were reported.

Chenxiang Highway Station, one of the affected stations, accommodates over 30,000 passengers daily during weekday morning rush hours. In response, more than 1,000 specialists were mobilized to repair the damage. By 9:30 p.m., services to Disney Station resumed, and full operations toward Jiading were restored by 10:50 p.m.—a remarkable recovery completed within just 15 hours.

This swift restoration highlights the operational efficiency often described as “China Speed,” demonstrating robust crisis management capabilities. It also serves as a critical reminder of the importance of stringent adherence to safety protocols to safeguard workers and the public.