On 21 March, the Guangdong Provincial Tax Service unveiled 30 tax measures geared towards facilitating a modern industrial system. The measures aim to stimulate the drive for science and technology innovation through implementing preferential tax policies such as a lower income tax rate for high-tech enterprises and value added tax refunds for the purchase of domestic-made equipment by R&D institutions. They are also designed to strengthen emerging future industries and give rise to taxation systems and collection and administration measures suited to various industries. Qualifying modern service enterprises in Hengqin and Nansha are eligible for a reduced enterprise income tax rate of 15%. Traditional industries will also be helped to undergo transformation and upgrading. Steps will be taken to enhance the alignment of tax regulations in Guangdong, Hong Kong and Macao in a bid to optimise the regional industrial structure. Industrial openness and co-operation will be deepened by helping “going out” businesses and individuals to better understand the tax policies of their investment destinations and implementing “refund-upon-departure” measures for cross-border e-commerce exports to overseas warehouses. Preferential tax policies and services will also be offered to attract high-calibre talents.

An Implementation Plan for Improving the Security of Data Circulation Governance and Better Promoting the Marketisation and Value Realisation of Data Elements jointly released by the National Development and Reform Commission and five other government departments on 15 January clarifies the security rules for corporate data circulation. The document will provide support to enterprises in compiling catalogues of data resources, analysing the security risks of data circulation and formulating measures for data protection by categories and grades. The Plan calls for efforts to provide strong safeguards for the circulation of personal data and improve the mechanisms for personal data rights protection. Mechanisms for defining responsibility for data circulation security will be formulated and improved and efforts will be made to explore and establish mechanisms for data circulation security audits and traceability.

The provincial government of Guangdong unveiled its 2025 action plan for building a modern industrial system on 6 February. The plan puts forward eight tasks: building a strong foundation for scientific and technological innovation; fostering outstanding industrial clusters; empowering intelligent technologies; promoting regional coordination and collaboration; encouraging industrial opening up and cooperation; introducing and nurturing authorised economic operators; upgrading quality and brands; and ensuring that the security of resources and production factors is guaranteed. Through these eight tasks, the plan seeks to strengthen core technologies, promote the effective commercialisation of scientific and technological achievements, consolidate and upgrade conventional industries while making deployments to drive industries of the future, expand the application of software and information services, promote the in-depth application of artificial intelligence, open up overseas markets while tapping into the domestic market, foster and attract the arrival of authorised economic operators, and strengthen the fiscal and financial system and the security of basic production factors.

The Bureau of Industry and Security has finalised a proposal prohibiting certain transactions involving the sale or import of connected vehicles integrating specific pieces of hardware and software, or those components sold separately, with a sufficient nexus to mainland China, Hong Kong, Macau or Russia.

Promulgated by the State Council on 30 September, new Regulations on Network Data Security Management will be implemented from 1 January 2025. The new regulations cover overall network data security requirements and rules, elaborate personal information protections, improve security for important data, optimise the administration of cross-border data flows, and set out the obligations of network platform service providers.

U.S. Customs and Border Protection will accept public input through 30 November on separate proposals to modify the tariff classifications of certain women’s pants and video goggles.

Hong Kong’s electronics industry is the territory’s largest merchandise export earner, accounting for 70.4% of the city’s total exports in 2023. A substantial portion of this business, largely re-exports, are regarded as high-tech products, especially those related to telecommunications equipment, semiconductors and computer items.

The Second Agreement Concerning Amendments to the Mainland & Hong Kong Closer Economic Partnership Arrangement (CEPA) Agreement on Trade in Services (Amendment Agreement II) was signed by the Ministry of Commerce and the Hong Kong Government on 9 October this year. Set to be implemented as of 1 March 2025, the amendments introduce new liberalisation measures across several sectors, including financial services, construction and related engineering services, testing and certification, telecommunication, motion pictures, television and tourism services.

Cambodia is emerging as a promising destination for investors seeking new markets in Southeast Asia. The country has a rapidly growing economy and its government implements policies aimed at fostering a conducive business environment. Its location and geography provide it with economic advantages – it borders several nations which are major regional manufacturers, and it possesses an international deepwater seaport, Sihanoukville International Port. All these factors mean that Cambodia presents a compelling case for international investors looking to capitalise on its untapped potential.

On 8 September, the National Development and Reform Commission and the Ministry of Commerce released Special Administrative Measures for Access of Foreign Investment (Negative List) (2024 Edition). The new list reduces the number of access restrictions from 31 to 29.