Banking
Xinjiang exempts tax to attract investment
Taxation authorities in China’s far western Xinjiang unveiled a new rule Saturday exempting enterprise income tax to attract investment to the border cities of Kashgar and Horgos.
URUMQI – Taxation authorities in China’s far western Xinjiang unveiled a new rule Saturday exempting enterprise income tax to attract investment to the border cities of Kashgar and Horgos.
The new businesses are exempt from the enterprise income tax for five years, the regional taxation bureau said a statement, citing a notice from the Ministry of Finance and State Administration of Taxation.
The tax-free period lasts from 2010 to 2020, according to the statement.
For those who have paid the tax over the past two years, they can get refunds, it added.
The State Council, China’s Cabinet, announced in October a plan to set up economic zones in Kashgar and Horgos. The move is expected to bring prosperity to the relatively poor Xinjiang and shift the country’s opening-up strategy from focusing on eastern coastal regions to a more balanced approach.
Kashgar, an ancient Silk Road town that borders Pakistan through the plateau of Pamirs, will become a regional logistics center, a financial and trading hub, and a key processing center for internationally traded goods. Horgos, a China-Kazakhstan border town, will focus on chemicals, farm products, machinery, pharmaceuticals, and renewable energy, according to the plan.
The central government has drawn up ten favorable policies to help establish the two economic zones, ranging from tax exemptions, subsidized electricity and transportation, low-interest loans for infrastructure to development of better rail and air links with neighboring countries.
See original here:
Xinjiang exempts tax to attract investment
Banking
Bow to Beijing a low move by HSBC
HSBC has put money before morality to back China’s new security law: one that’s an assault on the freedoms of Hong Kong’s people.
Luckily for HSBC, it’s headquartered in Britain: a country where you can say what you like about Boris Johnson and his shambolic handling of the pandemic.
(more…)Banking
How China’s role in global finance has changed radically
Within the space of just 15 years, China has gone from being the largest net lender to the world to now being a net borrower. The implications for the global economy, and China’s role within that economy, could be significant.
‘If you owe the bank $1 million, you have a problem. But if you owe the bank $1 trillion, then the bank has a problem’. It’s an old gag, but it underscores an important point: the size of your borrowing or lending can have profound implications for your role in the world.
(more…)Banking
Could China’s financial repression be good for growth?
China’s financial reform and development over the past four decades could be described as strong in establishing financial institutions and growing financial assets, but weak in liberalising financial markets and improving corporate governance.
When China began economic reform in 1978, it had only one financial institution — the People’s Bank of China. As a centrally planned economy, the state arranged the transfer of funds and there was little demand for financial intermediation.
(more…)- Italy and China New DTA Set to Take Effect in 2025: Important Changes and Implications
- China’s New Home Prices Stabilize After 17-Month Decline Following Support Measures
- U.S. national debt is its Achilles’ heel, but China sees it as an opportunity
- Business Update: Southern Sun Reports Earnings Growth; China Stimulates Property Market – News24
- Vietnam’s Approach to China: A Balance of Cooperation and Struggle
- 2025 Schedule of Public Holidays in China
