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By Bargainplace UK · December 8, 2025 · Curated by George's Blog
780 Chinese sellers changed their Amazon legal entity to Hong Kong in November 2025 alone.
For context: throughout all of 2024, there were 114 total relocations, 30 of which were to Hong Kong.
Early 2025 remained similar, then September brought 117. October brought 380. November exploded to 780.
The trigger was China's first-ever mandate requiring Amazon to report quarterly seller revenue data. The first submission was due October 31, 2025 - precisely when the exodus began.
Hong Kong's appeal is obvious: territorial taxation, no VAT, and lower corporate rates versus China's 25% tax on worldwide income. But the escape route may be narrower than sellers expect.
Chinese tax law allows authorities to claim jurisdiction over Hong Kong companies if actual operations or controllers remain in mainland China. With cross-border data sharing through the Common Reporting Standard, information barriers are eroding fast.
Bloomberg reports that sellers aligning filings with platform data could face back taxes that "wipe out profit margins."
For American sellers who've long called for a level playing field, this enforcement could finally deliver tax parity - though through Beijing's fiscal priorities rather than Washington's trade policy.
The structural pricing advantages Chinese sellers have wielded for years may be facing their most serious threat yet.
Read more: https://lnkd.in/e8NnjRur