Photo: gruntzooki on flickr
China is ending a longstanding policy of tax breaks for companies with foreign investment, according to Global Times.Bloomberg reported on Wednesday that China is also ending tax breaks for foreign companies that do business in China.
The changes will take place on December 1.
This is about two things. First, a recognition that there shouldn’t be a discount for investing in the hottest economy in the world. Second, this is another measure to slow investments in an economy that’s a little too hot.
China has announced several steps toward tightening this morning.