The Qingming Festival 清明节, known in English as Tomb-Sweeping Day, is a traditional Chinese holiday. As the name suggests, it is a day when Chinese families traditionally honour their ancestors by visiting their tombs to clean the gravesites, pray, and make ritual offerings.

It is also customary to burn paper money, sometimes even outdoors in the streets, as it is believed that deceased relatives still need material goods in the afterlife. A traditional food eaten during this festival is qingtuan – delicious green dumplings made from glutinous rice and Chinese mugwort.

CPO & Partners is proud to have taken part in the “Talk over Lunch with Paolo Gentiloni”, organized by the Italian Chamber of Commerce in China (CICC) in Shanghai.

Engaging directly with European Commissioner for Economy Paolo Gentiloni offered a valuable opportunity to reflect on Europe’s economic dynamics, the EU–China relationship, and the evolving landscape for Italian enterprises operating internationally.

Moments like these are essential to strengthening the dialogue between European institutions and the business community, while allowing us to provide our clients with strategic insights into global economic developments.

On December 12th, 2025, the Council of the EU agreed to accelerate the tightening measures on extra-UE low-value parcels, strategically targeting Chinese e-commerce platforms like Shein and Temu with a fixed €3 customs duty on items valued under €150, set to take effect on July 1st, 2026.

📦 The idea is to stop the growing wave of cheap goods that enter Europe without customs duties, putting local businesses at a disadvantage. However, a recent unilateral action by Italy serves as a warning of potential unintended consequences.

On January 1st, 2026, Italy introduced a €2 tax on parcels valued below €150 arriving from non-EU countries. The result was immediate: e-commerce companies simply rerouted shipments through Poland, Germany, and other EU member states. Hence, Italian logistics hubs might lose substantial revenues, while consumers continue receiving the same products with minimal delay.

⚠️ The Italian experience underscores a critical vulnerability in the EU’s new plan. Without a perfectly synchronized and harmonized enforcement strategy across all 27 member states, the €3 duty risks becoming a mere redirect, rather than a reduction, of the Chinese e-commerce volume. The measure is a first step toward fair competition, but its success depends on unified implementation.

CPO & Partners is delighted to share its active participation in the prestigious European Union Chamber of Commerce in China Site Tour at China Mobile Shanghai Industrial Research Institute and Shanghai Mobile New-Quality Productivity Exhibition Hall.

🚀 This event showcased cutting-edge innovations in 5G, AI, big data, IoT, and new-quality productivity, with demonstrations of Baidou Satellite guidance, drone navigation, and smart transportation.

🎤 Keynotes on cross-border compliance, cloud-network integration, and data pathways by China Mobile experts provided invaluable insights for Sino-European digital collaboration.

🤝 Our presence underscores our commitment to bridging Italy-China business, leveraging nearly 20 years in Shanghai to explore compliant digital infrastructure opportunities for our clients.

Great Year of the Horse 2026

CPO & Partners Shanghai Office Holiday Closure Announcement

CPO & Partners Shanghai will observe the Chinese New Year Holiday from Feb 15th to Feb 23th 2026.

Published 9 January 2026, Legislative Decree 30 December 2025, no. 211 enters into force 24 January 2026. Implementing Directive (EU) 2024/1226, the decree transforms administrative violations of EU restrictive measures into criminal offences with direct entity liability under Legislative Decree 231/2001.

• New Criminal Code offences (Articles 275-bis et seq.) target asset freezes, making funds available to designated entities, authorisation breaches, and gross negligence in dual-use classification. Extraterritorial reach covers Italian nationals abroad.
• Entity liability (Article 25-octies.2): 1-5% global turnover sanctions (min. €3-40M), 1-6 year disqualifications. Exemption requires updated 231 Models with CONSIS screening and dual-use protocols.
• Italian groups with China WFOEs, joint ventures and minority stakes: Chinese supply chains circumvent Russia sanctions (19 EU packages). Parent companies risk liability for subsidiary/participated entity violations if exercising direction or deriving benefit.

Actions: CONSIS screening, 231 Model update, training for China operations.

On December 24, 2025, China released the Catalogue of Encouraged Industries for Foreign Investment 2025, effective February 1, 2026, updating the list of sectors and activities eligible for preferential treatment, streamlined procedures, and operational advantages.

Compared to the previous version, the new Catalogue shows a broader scope – with 200+ new items and 300+ revisions – and a more targeted focus on:

• Advanced manufacturing, with items from terminal products and components to raw materials;
• Green technologies and modern services, such as lifestyle, consumer-facing, and digitalized service industries;
• Additional incentives for central, western, northeastern regions (underdeveloped areas), and Hainan.

Four preferential policies:

1. Customs duty exemptions for imported self-use equipment;
2. Preferential industrial land access – reductions down to 70% and more flexibility;
3. Reduced CIT (15%) for eligible projects located in western China and Hainan;
4. Tax credits for profits reinvestment into National Catalogue’s projects.

This update confirms China’s intention to attract foreign investment, especially when aligned with its high-quality growth, innovation, and regional development goals, offering a key instrument for recalibrating China and Far East investment strategies.

Pdf Source (Chinese language)

https://www.ndrc.gov.cn/xxgk/zcfb/fzggwl/202512/P020251224301773999332.pdf

On December 9, 2025, Francesco Marano took part in the “Zhejiang–Shanghai Connect | Jiaxing Special Event” held in Shanghai, delivering a speech focused on foreign investment projects in China.

His contribution addressed key aspects related to market entry strategies, investment pathways, and the role of tax and legal advisory in supporting cross-border operations within an evolving regulatory and economic framework.

The event provided a valuable platform for dialogue between institutions and international stakeholders, highlighting the importance of cooperation between European and Chinese business ecosystems.

A new policy notice on government procurement introduces a 20% price evaluation advantage for qualifying “Made in China” products – a move designated to strengthen domestic manufacturing while ensuring foreign-invested enterprises (FIEs) can still participate on equal footing.

Key points:

• Domestic products meeting specific transformation and cost criteria can enjoy a 20% bid advantage.
• Mixed procurement packages qualify as “Made in China” if 80% or more of the products are domestically produced.
• Stricter requirements apply to high-tech and security-sensitive components.
• A five-year rollout period followed by a 3-5-year transition ensures smooth implementation.

This policy underscores China’s push for high-quality industrial development, local innovation, and balanced global participation in its procurement ecosystem.

The event has successfully concluded

Changzhou City – Zhonglou District, China 2030:

Opportunities and Challenges of China’s 15th Five-Year Plan, hosted in Barcelona

CPO & Partners participated alongside FELIU as an internationalization partner, contributing to the discussion on the strategic directions shaping China’s market in the coming years.

During his presentation, Fabio Enrico Pessina provided an in-depth overview of China’s economic and regulatory outlook toward 2030, highlighting implications for European companies across technology, green transition, and advanced manufacturing sectors.

We extend our thanks to FELIU for the excellent organization and to all participants for the valuable exchange.

An important opportunity to strengthen business connections between Europe and China in an increasingly complex global landscape.