The Eyes on China Monthly
December 2009
1. Foreign Trade Growth to Increase in Coming Year
2. Tax Changes for Service Providers
3. Green Movement in China
1. Foreign Trade Growth to Increase in Coming Year
Due to a decrease in demand for Chinese goods from the global economic situation, China had seen a corresponding decrease in exports. Nevertheless, according to the China Institute for WTO Studies, a 15 percent increase in foreign trade is expected for 2010. The increase is expected to result from both a growth in international demand as well as a stimulus package aimed at spurring internal demand for Chinese and international products. Despite fear that other countries will boycott certain Chinese goods in order to spur growth in their own economy, the report still predicts that, unlike 2009, foreign trade will contribute positively to GDP in 2010.
2. Tax Changes for Service Providers
The Chinese Ministry of Finance has recently announced tax policy changes for service providers in China. Perhaps the most significant of these incentives comes in the form of an exemption from tax for real property owned or used by the service provider. Service providers are also excused from paying certain taxes on applicable subsidies as well as paying the stamp tax. For detailed information about how these changes may influence your business operations in or with China, please consult the Chinese Ministry of Finance website.
3.Green Movement in China
Earlier in the year at the UN climate change summit, President Hu Jintao had pledged to cut carbon dioxide emissions by 2020, but what steps are China actually taking in order to make good on this promise? One of China’s biggest indicators of its commitment to reverse the climate trends is the fact that, for the last two years running, they managed to plant 150% more trees than all other countries combined. China also offers incentives for local engineers to develop renewable and nuclear energy. China has also been able to establish strong sources of wind-generated energy, particularly in inner Mongolia, which is planned to be transferred to Hebei Province within the next couple of years. China has also worked extensively with developing technology to store the wind-generated energy a hydro-electric power. A more specific and tangible plan than the pledge made by President Hu Jintao at the beginning of the year, China hopes to produce 15% of its own energy by the year 2020.
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