China has taken significant steps to address the ongoing issue of fraudulent export practices, which have been criticized in the international market for enabling tax evasion.

On March 28, five government departments, including the State Taxation Administration, Ministry of Finance, Ministry of Commerce, General Administration of Customs, and State Administration for Market Regulation, jointly issued a new policy targeting this practice. The new regulations elevate enforcement from sporadic actions to a legal framework, effectively ending the fraudulent export issue. 

The policy mandates that exporters must complete tax registration with the authorities before processing customs procedures. This move is expected to impact buyers seeking discounted exports, as it makes the practice more challenging and legally regulated.