Home / English Column / Business (new) / Inside View Tools: Save | Print | E-mail | Most Read | Comment
Economic Development Zones Facing New Challenge
Adjust font size:

China's economic development zones, which have attracted huge foreign investment for over 20 years, are facing a new challenge.

 

A draft corporate income tax law, which suggests a unified income tax rate of 25 percent for domestic and foreign-funded enterprises to create an environment of fair competition, is expected to be adopted at the ongoing parliamentary session.

 

Foreign-funded companies in economic development zones have long enjoyed preferential tax rates. The law will reduce the significance of economic development zones as they will be stripped of this competitive advantage.

 

If the law is adopted, only certain industries, including high-technology projects, energy conservation and environmentally-friendly industries, will enjoy tax breaks.

 

All this leaves China's economic development zones with plenty of thinking to do on how to maintain high levels of investment.

 

"We have realized that our current operations overly rely on short-term methods and are too unstable to continue to attract foreign investment," said Wang Kai, director of the research institute of Tianjin Economic-Technological Development Area (TEBA), near Beijing.

 

TEBA has extended its projects from low-profit processing industries to automobiles, telecommunications and biological products, Wang said.

 

The area has attracted 4,316 foreign-funded enterprises involving a total investment of US$34.577 billion since it was established in 1984.

 

"Although the law will affect the economic development zones relying too much on the tax waivers, it does prove the determination of the Chinese government to standardize domestic economic order and promote the investment environment," Wang said.

 

The economic development zones are the products of China's policy of reform and opening-up and they mushroomed in the hope of forming powerful economic engines for the whole local economy.

 

China has established 147 national economic development zones since 1984, of which 54 zones used one quarter of the nation's gross foreign investment. So far, China has used US$685.4 billion from more than 590,000 foreign-funded enterprises.

 

But the development of the zones began to spawn problems.

 

"The advantages of the economic development zones have been fading with the promotion of the whole investment climate nationwide," professor Xu Fu of Nankai University, in Tianjin.

 

"Many zones specialise in low-profit processing industries, which have limited their development," Xu said.

 

"The extensive management of the economy needs to be switched to intensive management," Xu said.

 

"The law will promote development zones to accelerate economic restructuring," said Song Jinbiao, an official from the Shanghai Foreign Economic Relation and Trade Commission.

 

Song's view has been echoed by Li Zhiqun, director of the Foreign Investment Department of the Ministry of Commerce.

 

"The unified income tax policy places emphasis on the preferential regulations for certain industries, which offers an opportunity for the economic development zones to carry out structural reforms," Li said.

 

"The government plans to hold a meeting on the new strategies for economic development zones some time this year," Li said.

 

Shenzhen Special Economic Zone (SEZ), the earliest established economic development zone in China, has been striving to make the high-tech industry the region's mainstay industry.

 

Shenzhen SEZ has attracted thousands of high-tech enterprises, including almost one fifth of the world's top 500 enterprises.

 

(Xinhua News Agency March 15, 2007)

 

Tools: Save | Print | E-mail | Most Read
Comment
Pet Name
Anonymous
China Archives
Related >>
- Nobel Laureate: China's Unification of Corporate Tax Rates a Positive Move
- WB Economist: Unified Corporate Income Tax to Have Little Effect on Foreign Investment
- Unified Corporate Taxation to Reduce Revenue by US$12.5 Bln
- More Details Requested of New Tax Law
- Draft Corporate Income Tax Law Revised for Final Vote
- Draft Tax Law Reflects Shift in Gov't Focus
Most Viewed >>

Product Directory
China Search
Country Search
Hot Buys
主站蜘蛛池模板: 久久久久综合一本久道| 国产精品99久久久| 亚洲中文字幕久久精品无码喷水| 色天使久久综合网天天| 国模无码视频一区| 久久亚洲国产精品| 欧美综合人人做人人爱| 国产亚洲一区二区三区在线观看| 99久久免费只有精品国产| 日韩乱码人妻无码中文字幕久久| 亚洲色大情网站www| 被黑化男配做到哭h| 国产无遮挡吃胸膜奶免费看| julia无码人妻中文字幕在线| 日韩毛片免费看| 亚洲精品无码专区| 老司机永久免费视频| 国产精品密入口导航游戏| 99在线精品视频| 拔播拔播华人永久免费| 亚洲国产欧美日韩精品一区二区三区 | 国产欧美日韩精品丝袜高跟鞋| 东北少妇不带套对白| 最近最新中文字幕2018| 亚洲国产美女在线观看| 欧美肥老太肥506070| 又黄又爽视频好爽视频| 色综合久久天天影视网| 天天看片日日夜夜| 久久五月天婷婷| 日韩免费在线看| 亚洲国产超清无码专区| 欧美黑人xxxx| 亚洲精品成人av在线| 激情综合色五月丁香六月欧美| 四虎永久在线观看免费网站网址| 蜜臀AV在线播放一区二区三区| 国产免费直播在线观看视频| 网址在线观看你懂的| 好猛好深好爽好硬免费视频| 久久亚洲精品11p|