China’s economic transformation during the 14th Five-Year Plan period (2021-2025) has been underscored by robust tax reforms and industrial modernization, according to new data from the State Taxation Administration (STA). Total tax revenue is projected to reach 85 trillion yuan ($11.89 trillion) by the plan’s conclusion – a 13 trillion yuan leap from the previous five-year cycle.
Driving Innovation and Market Vitality
STA Director Hu Jinglin revealed that tax-paying business entities surpassed 100 million in June 2025, reflecting a 30 million net increase since 2020. Strategic tax cuts totaling 10.5 trillion yuan have empowered key sectors: 3.6 trillion yuan boosted technological innovation, while 7.2 trillion yuan supported private enterprises and self-employed households.
Deputy STA Director Cai Zili noted these measures helped high-tech industries achieve 13.9% annual sales growth, with private sector sales contributing 71.7% of national totals in early 2025. Clean energy sectors like wind and solar saw 13.1% average annual revenue growth through 2024, signaling accelerated green transition.
Global Integration Intensifies
China’s opening-up efforts attracted 12.7% more foreign-invested enterprises since 2020, generating over 630 billion yuan in profits. Tourism rebounded dramatically, with tax refund claims jumping 186% in early 2025 as 7,200+ refund stores catered to international visitors.
STA Deputy Director Wang Daoshu highlighted expanded global cooperation, with China now holding tax treaties across 114 countries and regions. Participation in UN and OECD tax governance frameworks has positioned Beijing as a key player in international fiscal policy.
