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EuroBiz magazine is the internal journal of the European Union Chamber of Commerce in China, published monthly for Chamber members by SinoMedia Ltd. Distributed to over 20,000 China-based company decision-makers.

Cover Story: Corporate Tax
As China’s tax system modernises, the burden on foreign companies is increasing. Good preparation is the key
By Dan Shupp

Since opening its economy to the world in the 1970s, the word "China" has been practically synonymous with low-cost manufacturing. Foreign investment poured in, attracted by a massive, cheap labour force and pulled toward one city or another by generous incentives, including preferential tax policies. These days, however, observers find China acting less and less like a developing country.

It is set to become the world's third-largest economy soon, and has developed globe-spanning companies to match. Priorities are now shifting. "Quality growth" was a buzzword at the National People's Congress in March, marking an emphasis on promoting industries that enhance China's technological prowess or help reduce its social and environmental problems, while the "growth at all costs" model is receding into the past.

 

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