BEIJING: China will waive income tax for three years for foreign investors trading the country’s new crude futures contract, the Ministry of Finance said on Tuesday, in a bid to attract overseas capital for the much anticipated launch.
The start of trading on Monday will mark the culmination of a years-long push by China to create Asia’s first oil futures benchmark, and is aimed at giving the world’s biggest oil importer more clout in pricing crude sold to Asia.
It will potentially give the Shanghai International Energy Exchange, which will operate the new contract, a share of the trillions of dollars each year in oil futures trading.
The finance ministry said foreign brokers will be exempted from paying income tax on commissions they earn from dealing in the new Shanghai crude futures.
The tax exemption could help encourage foreign players to engage with the new contract, despite concerns about issues such as foreign exchange conversion and potential capital curbs.
The number of foreign investors seeking to open non-resident accounts to allow trading has so far been below expectations, a source at CITIC, one of eight banks that is handling margin deposits for foreign investors, said. The source declined to be named as he is not authorized to talk with media.
The oil market is closely watching the liquidity of the contract, as institutional investors and brokers expect trading volumes and open interest to be relatively small compared with China’s iron ore, copper and steel futures contracts.
China in recent days has provided more details on the contract, including margins, trading limits and transaction fees, and has approved the use of six bonded storage warehouses.
China waives income tax for foreign investors trading yuan crude futures
China waives income tax for foreign investors trading yuan crude futures
Gulf-EU value chain integration signals shift toward long-term economic partnership: GCC secretary general
RIYADH: Value chains between the Gulf and Europe are poised to become deeper and more resilient as economic ties shift beyond traditional trade toward long-term industrial and investment integration, according to the secretary general of the Gulf Cooperation Council.
Speaking on the sidelines of the World Governments Summit 2026 in Dubai, Jasem Al-Budaiwi said Gulf-European economic relations are shifting from simple commodity trade toward the joint development of sustainable value chains, reflecting a more strategic and lasting partnership.
His remarks were made during a dialogue session titled “The next investment and trade race,” held with Luigi Di Maio, the EU’s special representative for external affairs.
Al-Budaiwi said relations between the GCC and the EU are among the bloc’s most established partnerships, built on decades of institutional collaboration that began with the signing of the 1988 cooperation agreement.
He noted that the deal laid a solid foundation for political and economic dialogue and opened broad avenues for collaboration in trade, investment, and energy, as well as development and education.
The secretary general added that the partnership has undergone a qualitative shift in recent years, particularly following the adoption of the joint action program for the 2022–2027 period and the convening of the Gulf–European summit in Brussels.
Subsequent ministerial meetings, he said, have focused on implementing agreed outcomes, enhancing trade and investment cooperation, improving market access, and supporting supply chains and sustainable development.
According to Al-Budaiwi, merchandise trade between the two sides has reached around $197 billion, positioning the EU as one of the GCC’s most important trading partners.
He also pointed to the continued growth of European foreign direct investment into Gulf countries, which he said reflects the depth of economic interdependence and rising confidence in the Gulf business environment.
Looking ahead, Al-Budaiwi emphasized that the economic transformation across GCC states, driven by ambitious national visions, is creating broad opportunities for expanded cooperation with Europe.
He highlighted clean energy, green hydrogen, and digital transformation, as well as artificial intelligence, smart infrastructure, and cybersecurity, as priority areas for future partnership.
He added that the success of Gulf-European cooperation should not be measured solely by trade volumes or investment flows, but by its ability to evolve into an integrated model based on trust, risk-sharing, and the joint creation of economic value, contributing to stability and growth in the global economy.
GCC–EU plans to build shared value chains look well-timed as trade policy volatility rises.
In recent weeks, Washington’s renewed push over Greenland has been tied to tariff threats against European countries, prompting the EU to keep a €93 billion ($109.7 billion) retaliation package on standby.
At the same time, tighter US sanctions on Iran are increasing compliance risks for energy and shipping-related finance. Meanwhile, the World Trade Organization and UNCTAD warn that higher tariffs and ongoing uncertainty could weaken trade and investment across both regions in 2026.
