China

事关个人所得税！财政部、税务总局、证监会等三部门发布

STCN | Local Language | News | Jan. 23, 2026 | Regulation

On January 21, 2026, the Ministry of Finance, State Taxation Administration, and China Securities Regulatory Commission jointly announced the continuation of tax policies for the pilot domestic issuance of depositary receipts (CDRs) by innovative enterprises. From January 1, 2026, to December 31, 2027, individual investors will be temporarily exempt from personal income tax on price-differential gains from transferring CDRs of innovative enterprises.

During the same period, a differentiated personal income tax policy will apply to dividend income received by individual investors holding CDRs. Tax withholding and payment responsibilities fall on the domestic depositary institution, which must also file detailed reports with the tax authorities. Foreign tax credits may be granted for dividends already taxed abroad, according to relevant laws and bilateral tax treaties.

For corporate investors, price-differential gains and dividend income related to CDRs of innovative enterprises will follow existing enterprise income tax policies for share transfers and dividends. Public securities investment funds are temporarily exempt from enterprise income tax on these gains and dividends. Qualified foreign institutional investors (QFII) and renminbi qualified foreign institutional investors (RQFII) will treat such gains and dividends as income related to the transfer or holding of the underlying shares of the CDRs for enterprise income tax purposes.

The announcement defines "CDR of innovative enterprises" as securities issued domestically by a depositary based on overseas shares, meeting the pilot enterprise criteria set by the State Council and CSRC guidelines. These CDRs represent rights in the underlying overseas securities.

China Daily | English | News | Jan. 23, 2026 | UndeterminedTech Development/Adoption

Chinese biometric technology firm Saint Deem has launched its first dedicated vein-recognition manufacturing line in Huainan, Anhui province. The production line, covering more than 10,000 square meters, is designed to produce up to 2 million vein-recognition modules and authentication devices annually. This marks a step toward large-scale commercialization of vein recognition technology, targeting applications across consumer electronics, payments, vehicles, and smart infrastructure.

Saint Deem's new factory is the first specialized manufacturing line in China focused solely on vein-recognition products, addressing a gap in the country's biometric supply chain. Vein recognition identifies individuals by analyzing patterns of veins beneath the skin, offering a more secure alternative to passwords, fingerprints, and facial recognition, which are increasingly vulnerable to spoofing and AI-generated forgeries. Co-CEO Qian Haomin highlighted the shift from an R&D-driven model to one combining R&D and manufacturing, aiming to establish vein recognition as a trusted, universal key connecting people securely to both digital and physical worlds.

The technology has already been deployed in applications such as palm-vein payment systems, smart locks, public transport, and high-security environments. For example, Chengde Public Transport Group in Hebei province has implemented palm-vein payments to reduce reliance on cards and QR codes. Industry experts noted the potential for consumer markets to drive growth, given the relatively low penetration of smart locks in China despite significant sales.

Experts emphasized the importance of unified technical and security standards to ensure trust and prevent industry fragmentation as vein recognition moves toward mass adoption. Academician Zheng Zhiming and IT standardization expert Zheng Yinfei stressed that vein recognition’s higher-dimensional data provides fundamentally stronger security against evolving digital threats like AI-generated deepfakes, and that establishing evaluation and security benchmarks is critical to protect users and unlock the technology’s full value.

Global Times | English | News | Jan. 23, 2026 | Shifting Geopolitical Alliances

China emphasized its commitment to upholding the principles of the UN Charter, respecting the sovereignty and territorial integrity of countries, and resolving disputes through dialogue. Foreign Ministry spokesperson Guo Jiakun stressed that China does not engage in geopolitical rivalry or seek spheres of influence in Asia but aims to build a community with a shared future based on good-neighborliness and friendship.

China plans to work with regional countries to foster friendly, secure, and prosperous relations, adhering to principles of amity, sincerity, mutual benefit, and inclusiveness. It seeks to create a peaceful, secure, prosperous, and harmonious shared home and is a defender of international peace and security.

China promotes a vision of common, comprehensive, cooperative, and sustainable security, advancing the Global Security Initiative to achieve universal and common security. The country is actively applying its unique approach to resolve hotspot issues and aims to build an Asian security model based on shared security, respect for differences, dialogue, and consultation, jointly safeguarding international peace and tranquility.