China has demanded more than CNY 7.7 billion in back taxes from over 100 listed companies in the first half of 2026, exceeding the combined corporate back taxes collected during the 14 years since President Xi Jinping took power in 2012. The campaign is targeting state-owned and private companies over previously misapplied corporate income-tax deductions, overclaimed value-added-tax credits and revoked preferential-rate qualifications. Heilongjiang Beidahuang Agriculture Co. (600598.SS), China’s third-largest agricultural conglomerate, expects a CNY 537 million first-half loss after tax authorities ordered it to repay a land-lease-related corporate income-tax benefit enjoyed since 2021. The charge equals 120% of its net profit last year; its shares hit the daily downside limit for two sessions and lost a fifth of their market value in three trading sessions. The drive reflects local-government fiscal stress as tax revenue declines from its 2023 peak and land-sale income shrinks at a double-digit rate, marking a retreat from the subsidy- and tax-incentive-led growth model that supported Chinese investment and industry for decades.