The sweep marks an unprecedented tightening of enforcement against offshore channels that solicit Chinese investors outside approved domestic rules.
As China cracks down on illicit finance, can its market-opening measures truly win over wary foreign investors?
With criminals using AI for scams, can China's regulatory crackdown win the war against high-tech financial crime?
China’s High-Stakes 2025–2026 Crackdown: Digital Assets, Illicit Trade, and the New Era of Regulatory Fragmentation
Overview
In 2025, China launched a sweeping two-year campaign to crack down on illicit cross-border trading and related crimes, aiming to protect national security and economic stability. This effort is led by top government agencies and combines strict enforcement with selective leniency. Authorities have targeted a wide range of activities, from online crimes and digital asset violations to drug trafficking and illegal trade in emerging sectors like tobacco and vaping products. By intensifying prosecution and regulation across these areas, China seeks to address both traditional and new threats, reinforcing its commitment to balancing development with security.