Authorities unveil policies to boost consumption and innovation

Chinese mainland authorities unveiled new policies on Wednesday to stimulate consumption and promote innovation-driven development.

Fourty-one new duty-free shops, each at one of the 41 listed ports of entry to the mainland, will be set up, including at Wuhan Tianhe International Airport,?said a joint announcement by the Ministry of Finance, the Ministry of Commerce, the Ministry of Culture and Tourism, and two other mainland government departments.

Notably, the announcement stated that the duty-free shop at Hengqin port in Guangdong province will allow residents entering from Macao to purchase duty-free goods worth up to 15,000 yuan ($2,100).

On the same day, the Ministry of Finance, the State Taxation Administration, and the China Securities Regulatory Commission jointly announced the extension of tax preferential policies for the pilot program supporting innovative companies issuing Chinese Depositary Receipts (CDRs) through the end of 2027.

According to a statement issued by the authorities, from January 1, 2026, to December 31, 2027, individual investors will be exempt from personal income tax on capital gains from the transfer of CDRs issued by innovative companies.

In addition, a differentiated personal income tax policy will remain in place for dividend income earned by individuals holding such CDRs, the statement said.