China’s ‘Invoice Economy’ Crackdown Leaves Copper Trade Reeling

At Asia’s biggest metal industry gathering last week, a single word dominated almost every conversation — fapiao, China’s humble tax receipt.

At their most basic, these official forms — printed and distributed by the government, and vital for closing payments — offer proof of purchase and ensure tax compliance. Crucially, they can also be used to secure financing, meaning these slips also grease the trade that keeps metals and other commodities flowing around the world’s largest consumer.

Now Beijing is pulling apart the so-called ‘invoice economy’ in order to crack down on fraudulent trades and to rein in a ...