CX Daily: China Mulls Tax System Overhaul to Ease Record Local Government Debt
TOP STORIES
Taxation /
China’s Central Economic Work Conference in December proposed the first reforms to the country’s 30-year-old fiscal and taxation system, sparking widespread debate among academics and tax experts. The recommendations – and reactions to them – underscore the urgency for change amid current budget challenges and record local government debt.
The health of the fiscal and taxation system is crucial for economic stability and growth, and reforming these systems is essential for sustaining development and enhancing the effectiveness of governance.
Tariffs /
Germany’s economy minister urged further discussion of the European Union’s tariffs on imports of Chinese electric vehicles (EVs), calling on relevant parties to take advantage of the “room for maneuver” before the duties are set to apply next month.
Speaking at a press conference in Shanghai on Saturday, Robert Habeck said the EU’s approach is not “take it or leave it,” but welcomes feedback and negotiations.
Landslide /
Eight villagers have been killed in a landslide caused by torrential rain in Central China’s Hunan province, state media reported Monday.
The victims, buried by the landslide in their houses in the remote Xinhuang county in the southwestern part of the province, were found dead Sunday, the state-owned Xinhua News Agency reported. The landslide occurred in the early morning, causing the destruction of four home in the village of Douxi.
FINANCE & ECONOMY
Exchanges /
Authorities across China are ramping up the closure of local financial asset exchanges (地方金融资产交易所) in a sweeping crackdown on financial risks and illegal fundraising.
Financial regulators in central China’s Henan province Friday revoked the business license of Zhongyuan Financial Asset Exchange Co. Ltd., one of more than a dozen local authorities to have shut down such institutions citing the risk of “pseudo-financial exchanges.”
VC /
China’s State Council has published guidelines to boost investment by the country’s venture capital (VC) industry in technology companies at various stages of development, aiming to invigorate a sector that’s been in the doldrums and provide more financing to drive innovation.
The guidelines, released on Wednesday, call for improvements in the policy environment and management system for the entire VC chain, from fundraising and investment to management and exit channels.
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WeBank /
WeBank Co. Ltd. has been cleared to set up a tech subsidiary in Hong Kong, as the Tencent Holdings Ltd.-backed online lender looks to expand into new markets.
The Shenzhen office of the National Financial Regulatory Administration released an approval on Friday for WeBank’s application, allowing it to set up the wholly owned company with $150 million.
Quick hits /
BUSINESS & TECH
Solar /
China’s energy regulator said that it will take steps to slow the breakneck expansion of the country’s solar industry, such as by limiting the addition of “low-end” manufacturing capacity, following industry leaders’ call for greater government intervention at a conference earlier this month.
The competition in China’s solar power industry is “indeed very fierce,” an official at the National Energy Administration (NEA) said at a press conference Thursday.
SAIC /
China’s largest state-owned automaker, SAIC Motor Corp. (上汽集团), is undergoing a leadership reshuffle amid dual headwinds of sluggish growth at home and tariff hikes by the European Union, a key market in its overseas expansion.
Wang Xiaoqiu, 59, president of SAIC, is set to become chairman of the Shanghai-based group, according to a Friday announcement by the municipal government on its WeChat account. Wang succeeds Chen Hong, who is retiring after holding the position since 2014, public information shows.
Quick hits /
Long Read /
GALLERY
Robert Habeck, who is also minister for economic affairs and climate action, arrived in China on Friday for a three-day trip to Beijing, Shanghai and Hangzhou. Habeck met with China’s Minister of Commerce Wang Wentao and the head of the country’s top economic planner in the capital, while going on to tour a BMW research center and give a speech at Zhejiang University over the weekend. He also spoke at a press conference in Shanghai about the EU’s recent decision to implement provisional tariffs on imports of Chinese-made electric vehicles, which will affect some of Germany’s major automakers that produce cars in local factories.
China learning to stay cool meanwhile