China Advances Cross-Border Trade Facilitation: State Council Deployment for Nationwide Policy Expansion

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On December 31, 2025, the State Council of the People’s Republic of China held an executive meeting (国务院常务会议) chaired by Premier Li Qiang to deploy policy measures that will replicate and promote cross-border trade facilitation special actions nationwide.

This initiative marks a transition from pilot reform measures toward broader systemic adoption designed to strengthen China’s foreign trade ecosystem, optimize the trade environment, and enhance the efficiency of cross-border logistics and regulatory services. The announcement reflects the government’s strategic emphasis on supply chain resilience and international trade competitiveness as part of efforts to sustain economic stability.

Executive Summary

  • The State Council of the People’s Republic of China deployed initiatives to replicate and promote cross-border trade facilitation special action policy measures during an executive meeting on December 31, 2025.
  • The meeting confirmed that cross-border trade facilitation is a core component of building a first-class business environment.
  • As part of scaling trade facilitation, 25 mature measures from pilot actions conducted in 25 cities from April to September 2025 will be replicated nationwide.
  • Key areas of replication include cross-border logistics efficiency, new trade models, regulatory optimization, digital customs systems, and enterprise-centric services.
  • These measures aim to improve operational efficiency, reduce trade costs, and strengthen China’s position in global supply chains.
  • For business stakeholders, this policy elevation signals expanded opportunities and expectations for integrated digital, logistics, and export-oriented solutions.

Policy Background and National Trade Priorities

Cross-border trade facilitation has been a recurring agenda item in China’s economic strategy, particularly under its high-quality development framework and efforts to bolster a stable external economic environment. The move to adopt the pilot measures nationwide reflects confidence in initial outcomes from the cross-border trade facilitation special actions piloted in 25 cities during 2025. These pilot reforms demonstrated the effectiveness of targeted facilitation in enhancing clearance speeds, reducing trade friction, and supporting enterprises in complex global market conditions.

The State Council’s decision to scale these measures underscores the imperative to formalize successful mechanisms that can be institutionalized across provinces and ports, thereby creating a more consistent and predictable operational environment for cross-border trade.

Efficient Cross-Border Logistics

A central pillar of the policy replication is to improve cross-border logistics efficiency. Measures that have demonstrated effectiveness in the pilot cities, such as coordinated multimodal transport integration, will be extended nationwide. For example, strengthening cooperation between maritime routes like Silk Road maritime transport and overland corridors such as the China-Europe freight trains and the New International Land-Sea Trade Corridor aims to reduce transit times and cost inefficiencies inherent in fragmented logistics chains. By harmonizing key logistical channels and reducing handoff delays between transportation modes, China seeks to enhance supply chain agility and expand international trade throughput.

Support for New Trade Models and Green Trade

Another priority in the facilitation measures is supporting emerging trade models, including cross-border e-commerce and green trade sectors. Nationwide replication includes broad implementation of policies such as departure tax rebate at point of exit and post-sale tax reconciliations for cross-border e-commerce, alongside relaxed requirements for the handling of special goods like lithium-battery products. The formal inclusion of green trade initiatives encourages expansion in environmentally sustainable export categories and aligns with broader strategic goals to integrate sustainability into trade growth, improve trade balance quality, and enhance competitiveness in global markets.

Regulatory Optimization and Smart Supervision

Policy scaling also prioritizes optimization of cross-border regulatory processes. This includes simplified clearance regimes for specific categories, such as the expansion of two-certificate consolidation pilot applications for imported motor vehicles to reduce procedural burdens.

Importantly, building intelligent supervision systems, often termed Smart Customs or Smart Port initiatives, is a key modernization objective. These systems leverage digital interfaces, unified data exchange platforms, and enhanced cooperation among regulatory bodies to reduce redundant declarations and streamline inspection workflows. Smart systems are projected to significantly reduce processing times and enhance transparency for importers and exporters alike.

Enhancing Enterprise-Centric Services

The facilitation policy stresses service quality improvements targeted at enterprises. Representative measures include the creation of integrated trade finance and credit service platforms that align financing instruments with trade operations, helping qualified enterprises secure credit and risk guarantees more efficiently. Such platforms have already supported thousands of enterprises during pilot phases. Provisions also include policies to reduce tax penalties for conditionally eligible firms, lower procedural costs, and optimize documentation requirements. Together, these adjustments reduce financial burdens and operational obstacles for outward-looking enterprises.

Cross-Agency Coordination

The success of replicating trade facilitation policies nationwide depends on multi-agency coordination. The pilot actions were co-led by the General Administration of Customs (GAC) in cooperation with agencies such as the Ministry of Commerce, National Development and Reform Commission, Cyberspace Administration, and Ministry of Foreign Affairs, among others. Coordinated governance ensures that logistics, customs, digital certification, and regulatory frameworks are aligned to deliver integrated improvements rather than isolated procedural reforms.

National Standardization and Scaling

The national replication of 25 mature pilot measures reflects a shift toward standardized national protocols. Rather than ad hoc local practices, standardized approaches are expected to reduce enterprise uncertainty, enhance compliance consistency, and enable trade partners to anticipate procedural expectations across regions. This lays a foundation for institutionalizing trade facilitation as a core element of China’s external economic governance.

Global Supply Chains and Resilience

The expanded facilitation measures contribute directly to supply chain resilience and global competitiveness. By enhancing clearance efficiency, logistics integration, and digital processes, China strengthens its position as a central node in global trade flows. These reforms are particularly relevant amid global uncertainties where regional trade dynamics, geopolitical tensions, and fragmented supply chains demand adaptable and efficient facilitation infrastructures. Through systemic improvements, China aims to shore up trade continuity and flexibility across sectors, including manufacturing, consumer goods, and high-tech exports.

What This Means for Business

  1. Improved Operational Efficiency: National replication of logistics and customs facilitation mechanisms will shorten clearance times and reduce trade costs.
  2. Enhanced Digital and Regulatory Infrastructure: Firms can expect uniformity in digital trade reporting; smart customs support and reduced procedural complexity across ports and regions.
  3. Growth in New Trade Sectors: Expanded support for cross-border e-commerce and green trade models opens new revenue streams and business verticals aligned with market trends.
  4. Reduced Financial Burdens: Integrated financing platforms and optimized tax and documentation policies enhance capital fluidity for trade enterprises.
  5. Stronger Supply Chain Resilience: The holistic approach to facilitation strengthens inward and outward trade logistics, enabling companies to build more robust, geographically diversified supply networks.

Sources

  • State Council Executive Meeting Deployment on Replication and Promotion of Cross-Border Trade Facilitation Special Action Policy Measures, State Council of the People’s Republic of China, 31 December 2025 (reported by Xinhua via People’s Daily and official channels).
    https://www.chinanews.com.cn/cj/2026/01-16/10552846.shtml (China News)
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