Wednesday, January 26, 2011

"The end" super national treatment more Chinese investment "carefully selected"

As China's foreign policy continues to improve, to enjoy the preferential treatment of the parts used foreign-funded enterprises will not be able to adapt to the moment. For this reason, the Chinese investment environment "deterioration" recently been waimei constantly rendering. From 1 December this year, China's reunification and foreign enterprises and individuals urban maintenance and construction tax and education expenses surtax system, domestic and foreign-invested enterprises a comprehensive unified tax regime, foreign enterprise in tax policy on national treatment for the "super" was completely end, this makes real foreign-funded enterprises in China for a taste of China foreign investment direction changes.

"China ' 12% ' planning proposals had been submitted, the utilization of foreign capital to optimize the structure and improve quality. Foreign-funded enterprises such as not to abandon the Chinese business environment reform jealousies, timely adjustment of business strategy, will be eliminated. "A well-known multinational leader told reporters. Admittedly, China is gradually adjust the way the introduction of foreign capital, compared to past use of incentives to attract investment, today China is more "carefully selected".

On foreign-funded enterprises the progressive realization of national treatment in the 15 years ago has set the tone

Foreign enterprise "hyper-national treatment" was published end once the policies, many attracting foreign investors, while at the same time, many complain that they pass to some waimei China's investment environment becomes unkind remarks. But in fact, the weakening of national treatment of foreign capital "super" this trend since 2008 the new income tax law a unified foreign enterprises since it started tax rates, and the two tax-policy making can be traced back to the end of 2004. But further back, you can find since 1994, the national people's Congress, the State Council has initiated the progressive unification of the tax system and foreign-funded enterprises. In 1995, the 14 th of the formulation of national economic and social development in the ninth five-year plan and the 2010 vision of recommendations made it clear that the next 15 years, to active, rational, effective utilization of foreign capital and foreign-funded enterprises gradually implemented national treatment. Thus with the deepening of reform and opening up, China's current tax system, tax, consumption tax, business tax, corporate income tax, and township land use tax, Che chuanshui, arable land tax and estate tax that foreign enterprises are located in the system has achieved a consolidated, on 1 December only urban maintenance and construction tax and education expenses surtax still implement differentiated system. Thus, at present China is according to the principle of 15 years ago to develop steadily tax harmonization.

Foreign enterprise "hyper-national treatment" end more reflect changes in the economic development of China, the establishment of a more fair and sound market economy system.

"The end" super national treatment is conducive to fair competition in the domestic and foreign-invested enterprises

China's domestic enterprises pay urban maintenance and construction tax and education expenses surtax has for decades, this unified foreign enterprises tax initiatives in line with the relevant provisions of the WTO, China is close to the international rules.

Chinese Academy of Social Sciences Institute, Deputy Director of gaopeiyong think, on the one hand, foreign-funded enterprises enjoying urban infrastructure and education, and public resources; on the other hand these enterprises do not fulfil the relevant tax paid (fee), this from every aspect is justified. This grant-funded enterprise of "hyper-national treatment" policy, in fact is a of domestic enterprises, and has had an inhibitory effect on the development of domestic enterprises.

Because foreign priority, some areas have been foreign controlled or monopoly. During this year's "two sessions, suning appliance Board Chairman Zhang jindong will appeal to cancel the foreign retail enterprises enjoy the" hyper-national treatment "granting foreign retail enterprises equal treatment. Because the "could not stand on the same starting line competitive" has become a national enterprises in China's retail industry declining.

On foreign-funded enterprises to implement differentiated taxation policy, in particular the formation of the historical context. Under the new historical conditions, China foreign investment through cancellation of national treatment will help China to adapt to the needs of the global economy, on the basis of fair competition, built with Chinese characteristics, fair and efficient market system.

China to attract foreign investments into the "quality" stage

Data show that China's foreign direct investment in the global ranking by th end of the fourth to the second and consecutive 18 years ranked first in the developing countries. For the future development of China's economy, experts generally agreed that foreign-funded enterprises will continue to be strong "booster". In breaking down trade monopolies, help domestic enterprises to absorb advanced technology and maintaining healthy competition in the market, the role of foreign capital enterprise.

In fact, even in the "hyper-national treatment", foreign-funded enterprise advantage still evident. The CPC Central Committee on the development of national economic and social development, 12 five-year plan of recommendations that China's future focus on the development of high-end manufacturing, hi-tech, modern service industry, new energy and energy-saving environmental protection industry, etc. These areas are the strengths of foreign-funded enterprises, huge room for future development.

For foreign-funded enterprises, top priority is to fully understand China's new foreign policy to avoid the unnecessary misunderstanding. Including previously announced by the State Council on better utilization of foreign investment in a number of views "with comments, China high-tech industry, services, energy saving and environmental protection industry welcomes overseas investment, but the heavy pollution and energy consumption and the overcapacity in the industry's investment is restricted. Qualified foreign companies can even listed in China, issuance of corporate bonds or medium-term instruments business ... China to foreign investment policy in the appropriate adjustment, the aim is to encourage foreign industrial structure and promote its capital scarce in the Midwest. Policy of the end result is to the greatest degree guarantee mix the quantity market efficiency and equity.

To this end, Renmin University of China School of Economics, Professor Weiping also pointed out that "there are some different sounds quite normal. "For example, for foreign capital investment environment in China complain, especially those targeting our marketing system is not perfect, it should be a high degree of attention. In particular, all levels of Government and departmental policies and behavior of instability lead to market environment is expected. Frankly, this

Problems not only foreign companies will feel the Mainland enterprises especially private enterprises more deeply, it also has been the impact of China's economic market of important obstacles. To this end, Weiping believes that policy directors should accept this kind of "complaints", collectively, the "complain".

"We want to legally for foreign enterprises in China to create a level playing field and allow foreign companies to be able to enjoy the same as the Chinese enterprise of national treatment. "Premier Wen Jiabao has this year my Government's external to clarify this point of view and positions. In transition economies development way of background, the future of China will be more open and more dynamic. To this end, to revisit and locate their own investment management idea, by taking advantage of the economic and social development of the enormous space and strategic opportunities that foreign-funded enterprises necessary choice.

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