JPM-Eyes on Asia Consumer China new gold VAT policy；latest on...-20251103

Asia Consumer News Headlines

• Mainland China implements new gold taxation policy. The Ministry of Finance and the State Administration of Taxation jointly announced new tax policies related to gold, effective immediately. The policy explicitly exempts “standard gold” traded on the Shanghai Gold Exchange and the Shanghai Futures Exchange from value-added tax (VAT) on exchange transactions. VAT will be levied based on the intended use once physical delivery occurs. This policy will take effect on November 1, 2025, and remain in force until December 31, 2027. Details see source.

• ASEAN: Latest on US trade deals. During the 47th ASEAN Summit held in Kuala Lumpur this past weekend, the US made further progress on trade agreements with Malaysia, Thailand, Vietnam, and Cambodia. The effective tariff on Malaysia drops by over 2%pt. but uncertainty remains on sectoral and transshipment tariffs. ASEAN also provided broad-based concessions on tariff and non-tariff barriers. Estimated annual import commitments range from 1% of GDP to 8% of GDP, but there are important caveats such as import substitution. The US has also inked an MOU on critical minerals with Malaysia,but the language is non-committal. See report by JPM’s economics team.