Rachel Farmer

Last month, the Chinese Communist Party’s 20th Central Committee concluded its fourth plenary session, during which it adopted the Central Committee’s proposal for formulating the 15th five-year plan covering 2026 to 2030. Beijing has acknowledged a growing pressure to maintain social stability and advance reforms amid more volatile geopolitical conditions. As such, the proposal points to an enhanced role for indigenous innovation, industrial upgrading, and domestic consumption as key drivers of secure and sustainable growth.

China’s economy has grown faster than expected this year, but growth in tax receipts has fallen behind. In response, Beijing is turning to tax reform as a cornerstone of fiscal stabilization, combining short-term measures to raise revenue from existing sources with longer-term efforts to standardize its tax regime.

In a statement released on June 6, the Shanghai Stock Exchange pledged to guide listed companies to raise the share and frequency of dividend distribution, as well as to make better use of tools such as share buybacks, M&As, and investor engagement. The SSE is hoping the moves will boost confidence in Chinese assets and make the domestic capital market more attractive for long-term investment.

Beijing is contemplating how to secure a foothold in the international monetary system as Washington pushes ahead with dollar-linked stablecoins to solidify the greenback’s dominance. Today’s total stablecoin market capitalization is roughly $265 billion, with US dollar-denominated stablecoins accounting for about 99% of the global market.

A subset of lawmakers have long argued that listing on US exchanges allows Chinese firms to benefit from American capital while supporting China’s military modernization efforts. In his first term, President Donald Trump launched an effort to prohibit US investments in Chinese companies deemed to be connected to China’s military, resulting in the delisting of several major Chinese state-owned enterprises.