Police intensify crackdown on tax crimes

Chinese police have filed more than 8,400 tax-related criminal cases and recovered over 2.3 billion yuan ($337 million) in economic losses since 2025 to this April, as authorities intensify efforts to combat crimes undermining tax collection and market order, the Ministry of Public Security said on Wednesday.

The crackdown has targeted major tax-related offenses, including false invoicing through shell companies, export tax rebate fraud and crimes involving unlawful customs brokers, freight forwarders and bookkeeping agencies, said Hua Liebing, head of the ministry's economic crime investigation bureau.

Under a regular joint mechanism involving eight central departments, public security organs have strengthened coordination with tax authorities to identify emerging risks and launch targeted enforcement operations, Hua said.

Since 2025, police have filed more than 300 cases involving export tax rebate fraud, with direct economic losses recovered so far this year rising 20.8 percent year-on-year.

Authorities have also moved to standardize law enforcement. The ministry and the Supreme People's Procuratorate jointly issued evidence guidelines for cases involving false issuance of special value-added tax invoices and export tax rebate fraud to improve case handling and enforcement standards.

Police have also carried out a campaign to regulate enterprise-related law enforcement, aiming to prevent improper cross-regional investigations and profit-driven enforcement practices while safeguarding the rule-of-law business environment, Hua said.

As May 20 marked the first anniversary of the implementation of the law on promoting the private economy, police in Jiangsu province said they have strengthened protection for private enterprises.

Zhou Yu, head of the economic crime investigation division of the Jiangsu Provincial Public Security Department, said recent cases reveal new trends in crimes targeting private businesses.

Financial crimes against enterprises remain prominent, with some offenders forming criminal chains involving "professional loan frontmen" who borrow on behalf of others to fraudulently obtain bank loans, intermediaries that falsify application materials, and appraisal agencies colluding in the fraud, Zhou said.

He added that internal duty-related crimes have become more concealed, often involving key employees in procurement, sales and finance. Cross-regional crimes have also become more common as offenders exploit Jiangsu's developed manufacturing, trade and supply chains.

According to the ministry, since 2025, police in Jiangsu have filed and investigated more than 3,700 such cases, helping enterprises avoid over 1 billion yuan in economic losses.

Zhou said Jiangsu police have promoted standardized enterprise-related law enforcement and improved services for private companies through embedded police-enterprise liaison mechanisms, consultation services and tailored legal briefings aimed at strengthening risk prevention.