New Regulations in China and Their Impact on Global Competition

China is set to implement new VAT and Cybersecurity laws on January 1, 2026. These laws will significantly impact international trade and investments.
The new VAT Law will introduce the "place of consumption" principle for cross-border trade. This change will align China's VAT regulations more closely with international rules.
Changes in the Cybersecurity Law will enhance government support for the development of AI systems and tighten security compliance obligations for network operators.
How will these new regulations affect China's position in global competition? What do they mean for businesses and investors?
China's moves could reshape its trade relations with other countries. Especially with the European Union's carbon tax implementations, new dynamics in global trade may emerge.