Published by ChinaMNC · Jinxiang
China's State Council Meeting: What Foreign Founders Need to Know
A summary of the March 13, 2026 State Council executive meeting, covering local fiscal subsidy negative list, agricultural census, and implications for foreign founders operating in China.
China's State Council Meeting: What Foreign Founders Need to Know
On March 13, 2026, Premier Li Qiang chaired a State Council executive meeting to study and implement the spirit of General Secretary Xi Jinping's important speeches during the National People's Congress and the Chinese People's Political Consultative Conference (Two Sessions), and the spirit of the Two Sessions. The meeting discussed and approved the 2026 Key Work Division Plan of the State Council, studied the establishment of a negative list management mechanism for local fiscal subsidies, and deliberated and approved the Regulations on National Agricultural Census (Revised Draft). For foreign founders registering or operating a company in China, these policy directions can signal important compliance and strategic considerations.
Implementation of Two Sessions Spirit and Annual Targets
The meeting emphasized the need to earnestly study and implement the spirit of General Secretary Xi Jinping's important speeches during the Two Sessions and the spirit of the Two Sessions, thoroughly implement the decisions and arrangements of the Party Central Committee, and carry out the arrangements of the Government Work Report. Departments and units are urged to take proactive responsibility, enhance their sense of urgency and execution, and focus on the key tasks identified in the Government Work Report. They are encouraged to take early action, improve quality and efficiency, and introduce pragmatic and effective policy measures to accelerate the implementation of various tasks. The meeting also stressed improving coordination and穿透性 (penetration) of work, strengthening the overall situation and systematic thinking, and working efficiently in a linked manner. It called for enhanced categorized guidance for local governments, paying attention to studying new situations and solving new problems, creating more useful experiences, and leveraging local comparative advantages to build development characteristics, thereby continuously improving the precision and effectiveness of policy support. Additionally, tracking, supervision, and coordination should be strengthened, with timely effectiveness evaluations of important policies and key matters to form a closed-loop management process.
Negative List for Local Fiscal Subsidies
The meeting pointed out that standardizing local fiscal subsidy policies is of great significance for maintaining a fair competitive market order and deepening the construction of a unified national market. Building on previous work, a negative list management approach will be applied to local fiscal subsidies. A nationally unified negative list for local fiscal subsidies will be formulated to further clarify specific circumstances under which local governments are prohibited from implementing fiscal subsidies. For foreign founders, this suggests that fiscal incentives offered by local governments may become more standardized and transparent, reducing uncertainties related to subsidies. Companies should stay informed about the negative list once it is released to ensure compliance and avoid relying on subsidies that may be prohibited.
Agricultural Census and Revised Regulations
The meeting noted that the agricultural census is an important basis for comprehensively understanding the situation of agriculture, rural areas, and farmers, and for scientifically formulating policies related to these areas. Taking the revision of the Regulations as an opportunity, the fourth national agricultural census will be carried out with high quality, adhering to scientific and law-based census, strictly controlling data quality and material management, actively applying modern information technology, strengthening departmental coordination and organizational support, and further improving the efficiency and quality of the census. While this may not directly affect most foreign founders, it reflects the government's focus on data-driven policy-making, which can influence the broader business environment.
Implications for Foreign Founders
These policy directions, while not specifically targeting foreign investment, can have implications for foreign founders operating in China. The emphasis on implementing the Government Work Report's key tasks and improving policy precision suggests a continued focus on economic stability and growth, which can be favorable for business planning. The move to regulate local fiscal subsidies through a negative list may level the playing field and enhance market fairness, but companies should be cautious about any subsidies they receive and ensure they are not on the prohibited list once available. The strengthening of coordination and closed-loop management indicates that policy implementation may become more consistent and monitored, so foreign founders should maintain good compliance practices.
At the meeting, other matters were also studied. Foreign founders are advised to monitor official announcements for the specific negative list and any further details on the implementation of these policies. For assistance with company registration, compliance, and navigating China's regulatory environment, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.