2026 is proving to be a pivotal year for China’s elevator and lift sector, with landmark regulatory updates reshaping safety accountability, taxation, and residential retrofitting. From stricter safety governance to game-changing tax adjustments and simplified lift-installation rules for older communities, these policies are set to drive industry standardization and long-term transformation.
TSG 08‑2026: China’s Toughest-Ever Lift Safety Rules Take Effect
On March 20, 2026, China’s State Administration for Market Regulation officially introduced TSG 08‑2026, the revised Special Equipment Use Management Rules, replacing the 2017 edition with what is widely regarded as the strictest lift safety framework to date.
Key regulatory changes include:
Clear legal accountability: Property management firms are formally designated the primary legally responsible party for residential elevator safety.
Three-tier safety governance: A mandatory management structure is now required, consisting of a principal person-in-charge, a dedicated safety director, and on-site safety officers.
Higher operational standards: Strengthened requirements for routine maintenance, regular inspections, and emergency response protocols to reduce risks and improve reliability.
Tax Reform No.13 (2026): End of Split Billing, Leveling the Playing Field
The Ministry of Finance’s Announcement No.13 (2026) has brought significant tax restructuring to the lift industry, eliminating long-standing split-tax practices.
Under the new rules:
Combined elevator sales + installation services will be subject to a unified 13% VAT, ending the previous split model (13% for equipment, 3% for installation).
Pure maintenance services continue to be taxed at 6% VAT.
This reform removes tax incentives for low-ball bidding and cutthroat price competition, pushing unqualified operators out of the market and paving the way for industry consolidation and healthier competition.
Old Community Retrofit: Easier Approval & ¥9.58 Billion in Subsidies
To accelerate elevator installation in aging residential complexes, China has overhauled its approval mechanism and rolled out substantial financial support:
The controversial “one-veto” rule has been abolished. Lift installation now requires two-thirds resident participation and three-fourths approval, rather than unanimous consent.
A combined total of ¥9.58 billion in central and local government subsidies will support elevator retrofits and upgrades for older communities, boosting demand for modernization solutions across the lift industry.
