Published by ChinaMNC · Zoucheng

China’s State Council Meeting: What Foreign Founders Need to Know

A summary of the March 13, 2026 State Council executive meeting, covering the 2026 key work division plan, a new negative list for local fiscal subsidies, and the revision of the national agricultural census regulations, with practical implications for foreign entrepreneurs operating in China.

State Council Executive Meeting: Key Takeaways for Foreign Founders

On March 13, 2026, Premier Li Qiang chaired a State Council executive meeting to study and implement the guiding principles of General Secretary Xi Jinping’s speeches during the National Two Sessions and the spirit of the Two Sessions. The meeting discussed and adopted the 2026 Key Work Division Plan of the State Council, examined the establishment of a negative list management mechanism for local fiscal subsidies, and deliberated and adopted the Revised Draft of the National Agricultural Census Regulations. For foreign founders registering or operating a company in China, these policy directions signal important changes in the business environment, particularly regarding fair competition and government support measures.

Implementation of the 2026 Key Work Division Plan

The meeting emphasized the need to thoroughly study and implement the guiding principles of General Secretary Xi Jinping’s important speeches during the National Two Sessions and the spirit of the Two Sessions, deeply implement the decisions and arrangements of the Party Central Committee, and carry out the arrangements of the Government Work Report. Departments and units are required to take proactive responsibility, enhance their sense of urgency and execution, and promptly and effectively implement the key tasks identified in the Government Work Report. They must take early action, improve quality and efficiency, and introduce pragmatic and effective policy measures to accelerate the implementation of all work. The meeting called for improving coordination and penetration in work, strengthening the overall situation awareness and systematic thinking, and conducting work through efficient linkages. Guidance for local governments should be categorized; while attention should be paid to studying new situations and solving new problems to create more useful experience, it is also necessary to leverage the comparative advantages of different regions and develop distinctive features, continuously improving the precision and effectiveness of policy support. Tracking, supervision, and coordination should be strengthened, and effectiveness evaluations should be conducted in a timely manner for important policies and key matters, forming a closed-loop management process throughout.

Practical takeaway for foreign founders: The emphasis on implementing the Government Work Report and ensuring a good start for the 15th Five-Year Plan indicates that policy support for businesses will continue, but with a focus on precision and effectiveness. Foreign founders should monitor local implementation measures, as provincial and municipal governments may introduce specific incentives or support programs aligned with the national plan. The call to leverage local comparative advantages suggests that opportunities may vary by region, so choosing the right location for your company could be more important than ever.

Negative List for Local Fiscal Subsidies

The meeting pointed out that regulating 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, and a nationally unified negative list for local fiscal subsidies will be formulated to further clarify the specific circumstances under which local governments are prohibited from implementing fiscal subsidies.

Why this matters for foreign founders: This is a critical development for any company that relies on or plans to seek local government subsidies. The negative list will define what types of subsidies local governments cannot offer, aiming to prevent distorted competition and promote a level playing field. For foreign-invested enterprises, this means that subsidy policies will become more transparent and consistent across regions. However, it also means that some previously available incentives may be phased out if they fall under the prohibited categories. Founders should carefully review any proposed subsidy arrangements with local authorities to ensure they comply with the upcoming negative list. It is advisable to seek professional advice and to stay informed about the final list, which is expected to be published following this meeting.

Revision of the National Agricultural Census Regulations

The meeting noted that 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 practices, 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.

Relevance to foreign founders: While the agricultural census may seem distant from most foreign-founded companies, it reflects the government’s broader push for data accuracy and modern technology application in governance. For businesses in the agri-tech or rural development sectors, the census could generate valuable data and insights. Additionally, the emphasis on law-based practices and data quality may signal a more standardized regulatory environment across all sectors.

Other Matters

The meeting also studied other matters.

Actionable guidance for foreign founders: Based on the outcomes of this meeting, foreign entrepreneurs should take the following steps:

• Monitor local policy implementation: Keep an eye on how provincial and municipal governments translate the 2026 Key Work Division Plan into local measures. This could include new support programs for foreign investment, innovation, or specific industries.
• Review subsidy arrangements: If your company receives or plans to seek local fiscal subsidies, assess whether they might be affected by the forthcoming negative list. Engage with local authorities and legal advisors to ensure compliance.
• Stay informed on regulatory changes: The revision of the Agricultural Census Regulations is part of a broader trend of updating regulations. Ensure your business complies with all relevant laws and stays abreast of changes that could impact your operations.
• Leverage regional advantages: The meeting’s call to leverage local comparative advantages suggests that different regions may offer distinct benefits. Consider how your business can align with local development priorities.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.