Heads up: Major tax compliance shift for China-based sellers is happening now (Amazon reporting data to CCP)

Not sure if this has been discussed here yet, but I’ve been tracking a huge development this week that impacts the whole Amazon ecosystem.

As of Oct 31, Amazon is officially required to start reporting detailed seller data (revenue, identity, etc.) for all China-based sellers directly to the Chinese tax authorities. This is based on new regulations from the Chinese government that went into effect this month.

I was reading a breakdown on China Briefing and a few other sources, and it seems this is the end of a long era where many sellers could operate in a tax gray area. The first report covers Q3 2025, and apparently, audit notices are already going out.

Seems like this could have some significant ripple effects on competition, ad costs, and pricing across the platform. It’s not a simple “US vs. China” thing, as many of the big, compliant Chinese brands will be fine, but the smaller, non-compliant sellers who relied on this to keep prices artificially low are likely in for a rough time.

Just wanted to put this on everyone’s radar as it seems like a pretty fundamental market shift.

What are your thoughts? Anyone seeing any immediate effects on their ad campaigns or categories?