China has stepped up its tax crackdown on undeclared overseas income, hitting exporters hard. Local authorities use big data to spot taxpayers hiding offshore earnings. This increased scrutiny is raising costs and shrinking profits for exporters. "It has taken a real bite out of profits," said Henry Huang, an exporter from Zhejiang. He added that there is little room to raise prices for customers in the US and Europe. The crackdown started in 2022 with local tax bodies urging people to declare their overseas income properly. Huang highlighted, "All platform transaction records are traceable – it’s as straightforward as checking your phone bill." He also noted that "Even overseas platforms provide access for audits conducted by Chinese authorities, so there’s really no option but to cooperate and stay fully compliant." This push is seen as Beijing’s move to increase revenue and enforce tax laws more strictly across sectors involved in cross-border trade.