China

JunHe LLP | English | AcademicThink | Jan. 23, 2026 | Regulation

On January 20, 2026, a practical seminar on the World Bank’s newly revised "Integrity Compliance Guidelines" was successfully held, supported by the Expert Committee of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products and jointly hosted by JunHe Law Offices and Tianjin University's International Engineering Management School. The seminar concentrated on the World Bank’s December 2025 updates to the guidelines and common compliance errors among Chinese companies, gathering key representatives from the World Bank’s core investigation and compliance departments, compliance leaders from Chinese enterprises, and senior lawyers from multilateral development banks. The event aimed to provide a precise, in-depth compliance empowerment platform for Chinese companies involved in World Bank-financed projects.

The seminar was chaired by JunHe partner lawyer Zhou Xianfeng and featured welcome speeches from JunHe director Hua Xiaojun, China Chamber of Commerce deputy chairman Zheng Chao, and Tianjin University professor Zhang Shuibo. They collectively emphasized that multilateral development bank compliance standards form a critical foundation for improving Chinese companies' compliance levels in the current international market environment.

Key highlights included authoritative presentations from three core World Bank departments. Anthony Pan from the Integrity Compliance Office detailed critical updates in the new guidelines, including management responsibilities, technology usage compliance, accessibility of policies and records, anti-retaliation protections, and regulations on donations and sponsorships. Xuan Luo from the Integrity Vice Presidency addressed frequent compliance risks faced by Chinese companies in World Bank projects such as conflicts of interest, commissions, subcontracting, key personnel changes, and fraudulent disclosures, clarifying standards for collusion and corporate liability for employee misconduct. Chang Liu from the Office of Suspension and Debarment explained the World Bank’s sanctions framework, covering prohibited misconduct, recent case data, sanction measures, aggravating and mitigating factors, and cross-sanctions, providing a comprehensive overview of the system.

In a practical sharing session, JunHe partner Liu Zhen highlighted seven common misconceptions Chinese companies have about World Bank compliance requirements and offered actionable advice informed by recent policies and case examples. The closing session featured in-depth analyses on compliance system establishment and implementation from Yang Songlin, Chief Legal Counsel and Chief Compliance Officer of China Power Engineering Corporation, and Liu Yufei, Deputy Director and Acting General Manager of Compliance Management at China Power Construction Group International Engineering Company, enriching attendees with valuable insights.

JunHe’s experienced legal team continues to provide comprehensive compliance legal services to Chinese companies engaged in multilateral development bank projects, including risk assessments, internal investigations, audit cooperation, compliance system construction, and sanction lifting. The seminar reinforced JunHe’s commitment to supporting Chinese enterprises with multi-level compliance solutions as they expand globally.

Peoples Daily | English | News | Jan. 23, 2026 | UndeterminedTaxes

In 2025, China's manufacturing sector accelerated its shift toward intelligent and green development, solidifying its role as a key stabilizer of the national economy. The sector's sales revenue growth exceeded the national average by 1.7 percentage points, reaching 29.7 percent of the country’s total sales revenue, a 0.5-percentage-point increase from 2024.

Procurement of automated and digital equipment by manufacturing enterprises rose by 11.3 percent and 10 percent respectively, illustrating progress in intelligent transformation and digital upgrading. The intelligent equipment manufacturing industry's sales revenue jumped 28.1 percent, supported by output increases in industrial robots (17.4 percent) and special operation robots (42.1 percent).

The share of high-energy-consuming manufacturing enterprises' sales revenue declined by 1.1 percentage points, indicating ongoing industrial structure optimization. Spending on environmental governance services by manufacturing enterprises also increased steadily. Moreover, procurement of digital technologies surged 10.4 percent in value, an acceleration of 3.5 percentage points compared to the previous year.

Going forward, China's tax authorities plan to implement preferential tax and fee policies to support the sector's transformation and upgrading. They will continue optimizing tax and fee services to promote the high-quality development of the manufacturing industry.

China Daily | English | News | Jan. 23, 2026 | Shifting Geopolitical Alliances

Chinese private firms are increasingly embedding themselves in Southeast Asia through comprehensive investments in industrial development, infrastructure, and workforce training. Zhenshi Holding Group, a diversified Chinese industrial firm, has established the Indonesia Huabao Industrial Park in Morowali, Central Sulawesi, which serves as a key example of this trend. The park integrates nickel-iron smelting and related industries with supporting infrastructure such as power facilities, roads, housing, and ports, transforming undeveloped land into a significant industrial hub.

Local employment is a central focus, with Indonesian workers making up over 91 percent of Huabao’s workforce, totaling 2,555 on-site employees and 8,217 including affiliated projects. The company has invested heavily in workforce development, providing thousands of training hours and skill-building programs in vocational, leadership, and digital areas, including Mandarin language courses tailored for the workplace. These efforts have earned recognition from local government and business associations for contributions to employment and human resource development.

Zhenshi’s investment strategy extends beyond manufacturing to stimulating local supply chains, infrastructural improvements, and community development. The park has developed over 300 suppliers, including Indonesian firms, and invested $10 million to expand Morowali’s airport, enhancing regional transport capacity. Ongoing social responsibility projects cover infrastructure, education, healthcare, environmental protection, and economic support, reflecting a broader shift in Chinese overseas investment towards industrial upgrading and sustainable local engagement.

Southeast Asia is a growing priority for Chinese firms aiming to diversify supply chains and markets, with over 6,500 Chinese companies investing directly in ASEAN countries. Indonesia’s large market and rich nickel reserves make it particularly attractive amid growing electric vehicle and new materials industries. The China-ASEAN economic relationship remains strong, bolstered by trade agreements such as the China-ASEAN Free Trade Area 3.0 Upgrade Protocol.

For Zhenshi, the Indonesian experience has shifted its overseas approach from isolated projects to integrated industrial platforms that promote long-term regional development. The Huabao Industrial Park exemplifies how Chinese private enterprises are positioning themselves as enduring partners in Southeast Asia’s economic growth.