As China intensifies offshore tax hunt, exporters struggle with compliance

South China Morning PostCenter-RightEN 1 min read 100% complete by Luna SunFebruary 8, 2026 at 03:00 AM

AI Summary

short article 1 min

China is intensifying its efforts to collect taxes on unreported overseas income, impacting exporters involved in cross-border trade. Since 2022, local authorities have been using data analysis to identify individuals who have not declared overseas earnings, prompting them to become compliant. This tax crackdown is squeezing profit margins for exporters like Henry Huang, who face increased tax burdens without the ability to raise prices for customers in the US and Europe. The increased scrutiny stems from Beijing's tightened enforcement and local governments' need to expand revenue sources. Exporters are being compelled to cooperate fully, as Chinese authorities can access transaction records from both domestic and overseas platforms.

Key Entities & Roles

Key Player Opposition Context

United States 50% Europe 50% Zhejiang 60% Beijing 70% Henry Huang ×270% Chinese authorities ×280% China 90%

Keywords

offshore tax 90% tax crackdown 80% cross-border trade 70% export 70% overseas income 60% tax compliance 60% big data analyses 50% revenue sources 50% audit 40%