CPO & Partners was honored to participate as a guest at the 2025 Jiangsu Nantong Su-Xi-Tong Science & Technology Park Investment Promoting Conference in Shanghai.

An insightful event focused on international cooperation, investment opportunities, and innovation. Grateful for the opportunity to exchange ideas and strengthen business relations between Europe and China.

#CPOPartners #InternationalBusiness #Investment #China #GlobalExpansion

On 13 September 2024 the Standing Committee of China’s National People’s Congress approved the “Measures of the State Council on Gradually Delaying the Statutory Retirement Age”, effective from 1 January 2025. The Measures provide for a gradual increasing of the statutory retirement age in a period of 15 years: male employees and female employees in white-collar positions, previously retiring at 60 and 55 years old respectively, will see an increase of 1 month for every 4-month period, to reach 63 and 58 in 2040. Female employees in blue-collar position will pass from the current 50 to 55 in 2040, with a raise of 1 month for every 2-months period. For example, a male employee who was supposed to retire on 1 January 2025 will now retire on 1 February 2025 (1 month increase); one who was going to retire on 1 May 2025 will now retire on 1 July 2025 (2 months increase).

Additionally, minimum contribution years to enjoy pension benefits will also gradually increase from 1 January 2030. From 15 years of paid contributions, each year 6 months will be added, until reaching 20 years.

On 31 December 2024 the “Interim Measures for the Implementation of the Flexible Retirement System” Notice was released by three Ministries and the Organization Department of the Party’s Central Committee. The Notice, also in force from 1 January 2025, expands on the provisions for the flexible early and delayed retirement: employees that reached the minimum contribution period and those who reached the legal retirement age can respectively choose to retire early, given that the retirement age is not lower than the pre-2025 thresholds, and to retire later than the legal retirement age.

The attached document includes the related comparison tables, according to gender and job positions, explaining how the statutory retirement age will be progressively delayed. The tables are in Chinese language with an English translation for reference.

CPO & Partners was awarded the Nanhu District of Jiaxing, Excellent Partner

Last 10 January 2025, a delegation of CPO Shanghai was invited to visit the complex of the People’s Government of Jiaxing City’s Nanhu District, to attend the 2025 Nanhu District Investment Promotion Conference and receive the award of Excellent Partner. On the occasion, at the presence of the authorities representing the District, Mr. Chen Fangtian, Legal Associate, representing CPO, retrieved the award of Excellent Partner, in recognition of the networking activities organized as an investment promotion ambassador of Nanhu District in China and abroad. Last year, CPO and its Joint Venture Dragon Bridge Investment cooperated with representatives from Nanhu to facilitate the introduction of the District as an ideal hub for foreign investors in China.

In particular, CPO was among the sponsors of the event “Destination Yangtze River Delta: Meeting with Jiaxing, Nanhu District”, held in Milan, Palazzo Clerici, on 5 September 2024 with more than 80 participants whose most part were renowned and excellent Italian SMEs, while both CPO and Dragon Bridge Investment sponsored the event “Shanghai and Jiaxing: A New Opportunity”, activity organized in the context of the November 2024 CIIE (China International Import Expo).

This award brings forth a new year sets to build on past achievements and make further progress in the bilateral investment promotion between Italy and China.

Great Year of the Snake 2025

CPO & Partners Shanghai Office Holiday Closure Announcement

CPO & Partners Shanghai will observe the Chinese New Year Holiday from January 28th to February 4th, 2025.

The Carbon Border Adjustment Mechanism (CBAM), established with the EU Regulation No. 2023/956 of 10 May 2023, is an environment protection policy aimed to put a price on the emissions generated in the production of specific goods imported into the EU. Currently in its transitional period, 1 October 2023 – 31 December 2025, the definitive regime will start from 2026.

At the moment the CBAM applies to cement, iron and steel, aluminium, fertilisers, electricity and hydrogen: when importing from non-EU countries, importers have to report related emissions, considering both the direct emissions from manufacturing, and the indirect emissions from the generation of used electricity.

On last 1 January 2025, the CBAM-related compliance entered a new phase, with the official launch of the CBAM Registry’s new section allowing suppliers outside the EU to share goods’ emissions data with the EU importers.

After the full implementation, importers will need to purchase CBAM certificates corresponding to the emissions of imported goods, with deductions allowed for costs incurred in the country of origin. A system of penalties for non-compliance is already in place.

The CBAM will surely impact on companies that import from non-EU countries such as China, thus making it essential to have up-to-date information to proceed with the related compliance activities.

Last 15 November 2024, China’s Ministry of Finance and the State Taxation Administration released the Announcement No. 15 on the Adjustment of Export Tax Rebate Policies, effective from 1 December. It is set to impact the future business planning of local and foreign companies involved in export operations from China to foreign countries, especially in terms of higher costs and lower export volumes.

Two different sets of adjustments were introduced on China’s export tax rebate, incentive system started in 1985 through which refunds are given to exporters on VAT and consumption tax (CT) paid before the export of their products abroad. The first set provides for the cancellation of the tax rebate on 59 items, including copper and aluminium products (plates, sheets, bars etc.), chemically modified oils and fats, and other kinds of metals.

The second set includes a reduction of the VAT rebate rate from 13% (which entailed a full refund of VAT on purchases, being 13% in China) to 9% for 209 items. Refined oils, batteries, photovoltaic products are among the affected categories.

Seen since its inception as a strategic policy to improve the competitiveness of exported goods in the international market, the VAT Tax Rebate (出口退税) system allows exporters to recover VAT on goods intended for export, receiving the VAT paid on purchases (in full or in part, based on the specific VAT refund percentage defined for each customs code) directly into the company bank account, in a relatively short time (1-2 months) from the submission of the necessary documentation relating to export. The Tax Rebate system is applicable both to companies that carry out trading activities and to the manufacturing companies, with different application rules.

On 4 December, a delegation of CPO visited Automechanika Shanghai 2024, the annual trade fair, this year at its twentieth edition, hosted at the National Exhibition and Convention Center in Shanghai. The 2024 edition, held from 2 to 5 December, saw the confirmed participation of 6,763 exhibitors, including 17 pavilions dedicated to specific international countries and regions.

A reference point in the auto-motorcycle sector for domestic and international exhibitors and buyers interested in exchanging information, connecting with key market players and negotiating business agreements, Automechanika covers a wide range of industry sectors, from components to electric vehicles, from repairing to customization.

CPO has among its clients business enterprises that are excellencies in the sector, and therefore considers the participation in this year’s fair to be positive, especially in terms of networking with the companies present, international and Chinese, among which there were also some Italian companies gathered in an Italian Pavilion set up for the occasion.

China Visa Exemption Update: Extended Stay and New Eligible Countries

From November 30, 2024, travelers from Italy and nine additional countries recently added to the list – Bulgaria, Romania, Croatia, Montenegro, North Macedonia, Malta, Estonia, Latvia, and Japan – can visit China without a visa for up to 30 days per stay, after the extension of the previous limit of 15 days per stay. This policy is valid until December 31, 2025 and covers purposes such as business, tourism, visiting relatives and friends, transit and exchange visits. This last purpose was newly added.

Key Clarifications:

Multiple Entries: There are no restrictions on the number of visa-free entries or total cumulative days of stay.

Documentation: Travelers should carry relevant documents, such as invitations, flight tickets, and hotel reservations, correspondent with the purpose of their visit.

This update simplifies travel for business and leisure, fostering stronger connections between China and these countries.

New Italy-China Double Taxation Agreement soon in force

On 5 November 2024, the Italian Chamber of Deputies approved the bill for the ratification and execution of the Double Taxation Agreement (DTA) signed in 2019 between the governments of the Italian Republic and the People’s Republic of China regarding income taxes double taxation and the prevention of tax evasion and avoidance. With the Meloni government taking office in October 2022, the bill had to obtain a new approval by the Italian Council of Ministers, and subsequently underwent Parliament discussion. The Agreement will enter into force following the exchange of ratification instruments between the contracting countries, expected by 1 January 2025.

The 2019 Agreement updates the previous DTA signed on 31 October 1986, adapting the latter to the OECD/G20 BEPS Project.

Among the revisions, Article 10 provides for a reduced withholding tax rate from 10% to 5% in relation to dividends from investments participated for at least 25% of the capital, and continuously for 365 days.

Article 11 regulates interests, providing for a reduction to 8% for interests paid to financial institutions for 3 years minimum duration loans aimed at investment projects.

Finally, Article 12 confirms a standard rate at 10% for royalties, with a reduction to 5% for royalties on industrial, commercial or scientific equipment.

Yesterday, 6 November, the meeting “Shanghai and Jiaxing: a New Opportunity” was held as part of the CIIE currently underway in Shanghai at the National Exhibition and Convention Center, a new opportunity for exchange and dialogue between entities linked by common views.

Sponsored by Nanhu District, located in the Chinese city of Jiaxing, China-Italy Chamber of Commerce, Intesa Sanpaolo Bank, Dragon Bridge Investment, and CPO, the event saw the participation, in addition to representatives of the sponsors, of some representatives of Italian companies present in China. The theme of the meeting, a follow-up to the event held last 5 September in Milan with the participation of a delegation from Jiaxing, was the presentation of Nanhu District as an ideal investment hub for foreign players seeking a strategic positioning within the Chinese market.