Dispel clouds, sail ahead: An overview of China’s tax policies from 2025 to 2026 and tax guides to 17 popular investment destinations for Chinese enterprises going global

April 2026

In 2025, China’s economy forged ahead steadily at a critical stage of in-depth restructuring and transformation towards high-quality development. Faced with the intense competition and market saturation in the domestic market, a growing number of Chinese enterprises have set their sights overseas to seek new growth drivers and market space. Waves of reshaping the global industrial and supply chains, coupled with the continuous release of consumption capacity in emerging economies, has presented unprecedented global opportunities for Chinese enterprises. In this historical process, Chinese enterprises are more determined in “going global”, and their global layout is evolving from “going global” to “integrating in”. Data from the Ministry of Commerce shows that China’s outbound direct investment across all industries maintained steady growth in 2025, demonstrating the determination and capability of Chinese enterprises to embed themselves in the global value chain. Chinese enterprises are increasingly becoming an indispensable force in the development of the global economy.

When enterprises enter the global market, they are confronted with vastly different tax systems, collection and administration practices, and compliance requirements across the world. From the rapidly developing emerging markets in Southeast Asia to the mature European and American economies with well-established regulatory systems, there are tremendous variations in tax structure, tax rates, the scale of tax incentives, and the complexity of filing compliance. In addition, the global tax governance landscape is undergoing profound changes. Only by deeply understanding and proactively adapting to the changes in the domestic and international tax policy environment can enterprises navigate the complex global tax landscape steadily.

Dispel Clouds, Sail Ahead: An Overview of China’s Tax Policies from 2025 to 2026 and Tax Guides to 17 Popular Investment Destinations for Chinese Enterprises Going Global is the second issue of the annual tax series of publications for Chinese outbound enterprises.

This publication aims to review the major annual tax policy changes in China and analyse policy development trends from a forward-looking perspective. Meanwhile, building on the first issue, it updates the latest tax hot topics in existing investment destinations and expands coverage of popular overseas investment destinations, offering detailed guidance to support enterprises in their tax decision-making as they go global.

We anticipate that, through the analytical insights and strategic guidance in this publication, enterprises will well understand the evolving tax trends and confidently navigate the complex tax landscapes. Simultaneously, businesses will well perform in the global markets and achieve greater success in their international development.