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China targets ‘happy fat water’ soft drinks for economic sugar fix

One of the last major economies without a tax on sweetened beverages may change tack

Chinese policymakers in search of a sugar rush for their finances might have found just the fix they need — a tax on sweet drinks that would net billions of renminbi a year and also bring Beijing into line with global norms.

China remains one of the last major economies without a nationwide tax on sugar-sweetened beverages. At least 116 countries had imposed national taxes on sugary drinks by mid-2024, according to the World Health Organization.

Days ahead of China’s annual rubber-stamp political meetings, officials are considering taxing beverages with the greatest sugar content, according to people familiar with the policy discussion. This would have the twin benefit of addressing a widening fiscal deficit alongside mounting public health challenges.

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