China’s Evolving Bonded Zone Policy: What to Know Ahead of June Update

Key Takeaways

• China is set to relax restrictions on bonded zone regulations imposed in April in response to US tariffs.
• At the same time, the new regulations tighten controls on select sensitive imports, not just for the United States but globally.
• To close tax loopholes and prevent country-of-origin manipulation through simple processing, the new regime shifts from reactive retaliation to more active enforcement of rules.