China’s crackdown on the so-called invoice economy is disrupting parts of the copper trade, traders said last week at Asia’s biggest metal industry gathering in Hong Kong. [1, 2]
Fapiao are official tax receipts used to prove a purchase, show tax compliance and help secure financing. The campaign is aimed at fraudulent trades and at curbing a system that can inflate revenue and blur the line between real demand and financial engineering. [1, 2]
Traders said the pressure has hit physical metals dealers hard and strained liquidity. Jia Zheng said, "The crackdown has left many physical metals traders unable to do their businesses," while Tiger Shi said, "With fewer tax invoices available, it’s going to get harder to bring copper into China." [2]
Bloomberg surveyed more than 20 traders during last week’s meetings in Hong Kong, and they said the crackdown is affecting a market where over half of China’s spot copper trading volumes have been hit. Some traders are now looking for workarounds, including setting up new entities in Hong Kong or restructuring books. [2]
The Edge Malaysia published its report on May 12, 2026, and some traders expect the campaign to last until the end of July 2026. [2]
