At least 71 listed Chinese companies have reported back-tax payments totaling over 6.6 billion yuan in the first half of 2026. Heilongjiang Agriculture (Beidahuang) faces a back-tax demand of approximately 1.41 billion yuan, equivalent to 120% of its projected 2025 annual net profit, triggering a 10% share price drop on the day of disclosure. The pharmaceutical and technology sectors are also targeted, with BeOne Medicines agreeing to pay around 446 million yuan. This large-scale tax recovery campaign reflects local governments’ need to compensate for the collapse of their land sale and property tax revenues without raising overall tax rates.
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