Economy/Resources

L’Oréal-owned luxury cosmetics brand Lancôme has closed its flagship store at Beijing’s Wangfujing APM shopping center, less than six years after its high-profile opening in October 2020. The 320-square-meter store, billed as Lancôme’s first flagship in China and its second-largest globally, has been completely cleared out, with outdoor brand Salomon preparing to take over the space.

Lancôme’s withdrawal appears to be part of a broader contraction in China’s offline cosmetics market. According to the China Chain-Store & Franchise Association, the ratio of store openings to closures for cosmetics businesses was just 0.85 across 447 major shopping centers in 13 cities between 2022 and 2024, indicating a shrinking retail footprint. NielsenIQ data show that the number of cosmetics counters in department stores and shopping centers across 51 Chinese cities fell from more than 15,000 in 2019 to about 9,500 in 2023, a decline of nearly 6,000.

In 2025, China’s beauty market experienced a new wave of brand withdrawals. According to an incomplete tally by beauty industry media outlet Jumeili based on public information, more than 30 international and domestic beauty brands closed online flagship stores, withdrew offline counters, or ceased operations in China, including about 17 domestic brands. Among international companies, Japanese and South Korean brands accounted for the largest share. The trend continued into 2026, with French skincare brand Filorga closing its official Tmall flagship store in January and Yakult’s cosmetics business ending its cross-border e-commerce operations in China.

Source: Epoch Times, August 5, 2026
https://www.epochtimes.com/gb/26/8/5/n14823536.htm

China’s National Healthcare Security Administration (NHSA) reported that spending from the country’s basic medical insurance fund exceeded RMB 3 trillion for the first time in 2025, reaching RMB 3.01 trillion (US$420 billion), according to its 2025 National Healthcare Security Development Statistical Bulletin. Total fund revenue reached RMB 3.59 trillion, while the annual surplus of the pooled insurance fund stood at RMB 525.8 billion. The insurance fund finances outpatient and inpatient care, prescription drugs, and maternity benefits for enrolled participants.

The report also highlights the growing impact of China’s aging population on the healthcare system. The number of retired participants covered by the employee medical insurance program increased by 3.37 million in 2025, surpassing 103 million, representing a 3.2 percent year-on-year increase—well above the 2 percent growth in actively employed contributors. As a result, the ratio of active workers to retirees continued to decline, falling from 3.0 in 2012 to 2.6 in 2025.

Source: Sohu, July 28, 2026
https://www.sohu.com/a/1055861830_121106832

China’s Ministry of Finance and State Taxation Administration issued a regulation on July 24 clarifying the personal income tax treatment of offshore trusts. Under the new rules, Chinese tax residents must declare and pay personal income tax both when transferring assets into offshore trusts and on income generated during the trusts’ operation. The measure is designed to close a long-standing tax loophole and strengthen oversight of offshore wealth held by Chinese residents.

The regulation establishes tax obligations at each stage of an offshore trust’s lifecycle. At the establishment stage, transferring assets into an offshore trust will be treated as a taxable asset transfer, with taxable gains calculated as the asset’s market value minus its original cost and reasonable expenses. The resulting gains will be subject to a 20 percent personal income tax. During the trust’s operation, investment gains, interest, dividends, and other qualifying income will also be taxed annually at 20 percent, based on the nature of the income.

The regulation also introduces transitional arrangements for existing offshore trusts. Trusts established more than three years before the announcement will not be subject to taxes on the initial asset transfer, but income generated during the trust’s operation must still be declared regardless of when the trust was established. Taxpayers will be granted a three-month grace period to file returns without incurring late-payment penalties. The new rules underscore Beijing’s broader campaign to strengthen tax enforcement, curb offshore tax avoidance, and enhance oversight of cross-border assets held by Chinese residents.

Related reading: China Expands Tax Scrutiny of Offshore Trusts Held by Wealthy Individuals

Source: Xinhua, July 24, 2026
https://www.news.cn/20260724/bafc54eba6bc49f19c0e7192d5176315/c.html

Chinese universities are increasingly merging or eliminating foreign language departments as Artificial Intelligence (AI) transforms language education and employment prospects deteriorate. Recently, Guilin University of Information Technology dissolved its School of Foreign Trade and Foreign Languages, transferring language instruction to a newly established School of General Education while merging its faculty into the Business School. According to Chinese media, at least 10 universities have restructured foreign language departments since 2025, with several also suspending enrollment in language majors.

Analysts attribute the trend to rapid advances in AI-powered translation, which have diminished demand for traditional language skills, as well as a weakening job market for language graduates. Employment data show that foreign language majors have below-average job placement rates and salaries, while English has been identified as an oversupplied major in several provinces.

Rather than abandoning foreign language education, many universities are integrating language training with disciplines such as business, communications, and international studies to cultivate graduates with broader, interdisciplinary skill sets that are better aligned with evolving labor market demands.

Source: Epoch Times, May 31, 2026
https://www.epochtimes.com/gb/26/5/31/n14778725.htm