China business glossary

Partial refund of the 13% VAT when goods are exported (0–13% by product). A higher rebate lets a supplier quote a lower net FOB price — always factor it into sourcing negotiations.

China's main indirect tax, standard rate 13% on most goods. Levied at each value-add stage; exporters can recover it via the export rebate.

Harmonized System product classification (China uses 13 digits). Determines import tariff, VAT, rebate rate and regulatory requirements.

Customs-supervised area where goods can be stored, processed or trans-shipped with duties/VAT deferred until they enter the domestic market.

Pilot zones (Shanghai, Hainan, etc.) with liberalized customs, investment and currency rules — often the easiest entry point for foreign trade.

Import/export sold directly to consumers via platforms, under a dedicated customs and tax regime (lower per-parcel duties) distinct from general trade.

Standard import/export at full duty and VAT — the default regime, contrasted with bonded or cross-border-e-commerce channels.

The 18-character ID every registered Chinese entity carries — the reliable key for identity, screening and registry lookup. Ask any counterparty for theirs.

Mandatory product certification for ~17 categories (electronics, appliances, toys, auto parts…). Without it, listed products cannot legally be sold or imported.

China's national standards. GB = mandatory, GB/T = recommended. Conformity is often a market-entry gate for regulated products.

Statutory repair, replacement and refund obligations for consumer goods — a key after-sales liability for anyone selling to Chinese consumers.

Mandatory registration (filing) or license to operate a website/online service hosted in mainland China. No ICP = the site is blocked domestically.

Multi-Level Protection Scheme — graded cybersecurity compliance required for IT systems operated in China.

Moving personal/important data out of China is restricted under PIPL/DSL — may require security assessment, certification or standard contract. Critical for any data-handling operation.

Court-published list of entities that failed to honor judgments — a core red flag in counterparty due diligence.

China's two largest shopping festivals (Nov 11 / Jun 18). Demand and ad costs spike enormously — they shape annual planning for any consumer brand.

Selling via live video with hosts/KOLs — a dominant Chinese retail channel with no direct Western equivalent in scale.

Influencer/peer content that creates desire for a product before purchase — the top of China's social-commerce funnel (e.g. on Xiaohongshu).

Owned audiences a brand can re-market to for free (WeChat groups, mini-programs), versus paid "public" platform traffic.

Consumer preference for domestic brands and Chinese cultural design — a structural headwind for foreign brands in some categories.

Lower-tier cities and rural areas — large, price-sensitive growth pools beyond the tier-1 metros.

Informal city ranking by size/wealth. Tier-1 (Beijing, Shanghai, Guangzhou, Shenzhen) = premium beachhead; lower tiers = scale.

Wholly Foreign-Owned Enterprise — the most common vehicle for foreign companies to operate directly in China without a local partner.

Contractual control structure used to list China operations offshore in sectors restricted to foreign ownership — carries regulatory and enforceability risk.

A-shares = mainland-listed (RMB); H-shares = Hong Kong-listed mainland firms; Red chip = HK-listed, mainland-controlled, incorporated offshore.

Government-designated specialized, high-growth SMEs in priority tech sectors — a signal of policy support and supply-chain importance.

State-owned Assets Supervision & Administration Commission — controls major central state-owned enterprises; a frequent ultimate controller behind listed firms.

National Development & Reform Commission — top economic-planning body; sets industrial policy and the foreign-investment access lists.

Ministry of Industry & Information Technology — regulates manufacturing, telecoms and the internet sector.

State Administration for Market Regulation — company registration, antitrust, product quality and CCC certification.

China's twin goals: carbon peak by 2030, neutrality by 2060 — driving policy across energy, manufacturing and exports (incl. rebate cuts on high-emission goods).