High-Level Strategic Dialogue in Hangzhou:

Day 2 of the “Foreign Enterprises Zhejiang Visit”

2026 “投资浙里” 外国企业浙江行・走进杭州

We are pleased to share that we take part in the official high-level cooperation and matchmaking conference in Hangzhou, closing the 2026 “Invest in Zhejiang” Foreign Enterprises Zhejiang Visit.

The day focused on institutional dialogue, investment promotion and business networking, highlighting Zhejiang’s high-quality development goals, opening-up policies and key industrial sectors. The event hosted more than 230 global companies, with key speeches delivered by Mr. Wang Hao, Secretary of Zhejiang Provincial Party Committee, and Mr. Xi Guohua, Chairman of CITIC Group. The main session was moderated by Mr. Liu Jie, Governor of Zhejiang Province.

A highlight was the roundtable discussion on investment incentives and new opportunities for foreign businesses across advanced manufacturing, digital economy, new energy and cross-border e-commerce.

Why this summit matters for CPO & Partners As a leading Italy‑China cross-border legal & tax advisory firm, this high-level conference allowed us to:

✅ Strengthen connections with Zhejiang provincial authorities

✅ Collect first-hand updates on policies and regulations

✅ Network with major regional enterprises and global investors

✅ Better support European and Italian clients investing in the region

Zhejiang stands out as a strategic hub for international trade and investment, with great potential for long-term cooperation between Italy, Europe and China. We aim to turn these exchanges into solid joint projects.

Thank you to the Zhejiang Provincial Department of Commerce, CITIC Group and the European Union Chamber of Commerce in China.

CPO & Partners is proud to join the 2026 “Invest in Zhejiang” Foreign Enterprises Zhejiang Visit with the official delegation of the European Union Chamber of Commerce in China.

Organized by Zhejiang Provincial Government and CITIC Group, this top-tier event gathered over 230 international companies to explore advanced manufacturing, new energy, digital trade and cross‑border investment.

Our delegation visited Jinhua’s key hubs:

• East China International Intermodal Port
• Zhejiang Panshi Dynamics Technology Co., Ltd.
• Leapmotor Automobile Co., Ltd.
• Yiwu Global Digital Trade Center

A highlight was the high‑level meeting with Mr. Zhang Jian, Mayor of Jinhua, and Ms. Huang Hui, Vice Mayor, focused on investment policies and opportunities for European and Italian enterprises.

For CPO & Partners – a leading Italy‑China legal & tax advisory firm with 18+ years of experience – this mission strengthens our role as a trusted bridge between international businesses and China.

We enhance institutional relations, gain first‑hand policy insights, expand our industrial network, and deliver tailored support to clients investing in Zhejiang.

We remain committed to win‑win cooperation between Italy, Europe and Zhejiang.

Thank you to Zhejiang Provincial Department of Commerce, CITIC Group and the European Union Chamber of Commerce in China.

Recently, our team joined the exclusive on-site institutional and technical visit directly onboard the Adora Flora City at Shanghai Waigaoqiao Shipyard, an important flagship result of joint Italy-China shipbuilding cooperation, organised by the Italian Chamber of Commerce in China. During the day, we attended institutional briefings, reviewed dedicated technical project presentations, analysed the dedicated 3D project models, and exchanged direct insights with key industry managers and operators working daily on this high-value industrial project. The initiative offered a clear, first-hand overview of concrete joint workflows, operational industrial collaboration standards and large-scale project development practices within the international cruise shipbuilding sector.

For CPO & Partners, these regular field activities strengthen our daily advisory capabilities across all industries. They allow our international team of lawyers, tax advisors and corporate consultants to support companies with solid, updated, on‑the‑ground insights for market entry, regulatory compliance, corporate structuring and bilateral business development between Italy and China.

We keep building reliable connections, working synergy and practical knowledge to deliver concrete, tailored consultancy to all our clients operating across every industrial and commercial sector between Europe and China.

Our team attended a briefing at the European Chamber Shanghai Office, hosted by President Jens Eskelund, focusing on the critical report Exporting Control — China’s New Strategic Strategic Toolkit.

The briefing dealt with updates on the expansion of China’s export control regime, severe supply chain vulnerabilities for rare earths and critical raw materials, and the operational risks tied to new extraterritorial controls effective November 2026. The closed-door session outlined the future direction of China’s trade policy tools and practical risk mitigation strategies for European firms managing international supply chains.

CPO & Partners put strong attention on the expertise of its personnel and events like this deliver important information and updates. It is very important to listen, understand and evaluate messages of institutions like the European Chamber through its leadership, capture real-time policy intelligence, and integrate such insights into advisory services. This allows us to provide clients with precise, forward-looking support on cross-border trade compliance, critical supply chain optimization, and geopolitical risk management.

Amid rising trade tensions, we continuously monitor China-EU regulatory shifts, turning complex export control challenges into clear, safe, and executable operational roadmaps for our partners.

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 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.

On November 13th, 2025, the European Commission agreed to eliminate the €150 customs duty relief threshold and potentially introduce “handling fees” on e-commerce packages as of 2026.

Given the evolution of the e-commerce model, this exemption is no longer justified and creates unfair competition. This initiative directly addresses the sharp rise in low-value B2C parcels shipped from non-EU platforms to EU consumers.

This measure aligns with the VAT framework already in force since 2021, which abolished the €22 VAT relief threshold, applying VAT on all commercial goods imported into the EU from third countries and requiring an import declaration.

The removal of the customs duty exemption threshold means that all goods, regardless of their value, will no longer be exempt from customs duties – ensuring fairer conditions between wholesale and retail importers.

Until mid-2028, a temporary system will be in place to facilitate duty calculation on low-value parcels; afterwards. the EU Customs Data Hub will centralize the entire customs processing.

This agreement marks a pivotal step in the modernization of EU customs procedures, paving the way for a more streamlined, transparent, and equitable system.

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CBAM – Final Phase: Sustainability as Market-Access Requirement

Starting January 1^st, 2026, the Carbon Border Adjustment Mechanism (CBAM) will enter into full force, introducing a carbon cost on imports with high embedded emissions – including aluminum, cement, electricity, fertilizers, iron and steel – to support more sustainable global trade.

The New Regulation (EU) 2025/2083 launches the definitive phase of CBAM, fully integrating climate policy into international trade.

Importers and their indirect customs representatives will be required to obtain the status of authorized CBAM declarant and operate through the EU’s digital CBAM Registry.

The annual CBAM declaration must be submitted by September 30^th of the year following the imports (first deadline: 2027), while the purchase of CBAM certificates to offset emissions will begin in 2027 for emissions related to 2026.

Updates:

• A de minimis threshold – 50 tons per year for CBAM goods, easing the burden on smaller firms.
• Reduction of the mandatory certificate holding requirement from 80% to 50% of quarterly emissions.
• Possibility for authorized declarants to delegate the CBAM declaration to a third party.

What to do?

• Check whether exempt due to the de minimis
• Apply for CBAM authorization before the end of 2025 (temporary waiver until March 31^st, 2026).
• Set up robust systems for collecting data on embedded emissions in imported goods.

To receive the PDF with details and insights on the topic “CBAM – Definitive Phase 2026,” please subscribe to our newsletter by clicking on the following link:

https://www.cpopartners.com/cpo-newsletter-cbam/

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