Opinions on Chinese manuf. taxes (from the Chinese government) getting out of hand ?

Is below really the situation now ?

This Chinese Billionaire Is Moving Production to the U.S. to Cut Costs | Fortune.com

I think this is posturing ahead of this years politburo elections.

Biography said:

Cao Dewang, male, Han nationality, is a native of Fuqing, Fujian Province. He is educated through junior middle school.

Cao's company, the Fuyao Glass Industry Group, produces glass used in automobiles. His company is listed on the Shanghai Securities Exchange market and was one of the first non-public Sino-foreign joint ventures listed.

A chairman of both the China Automobile Glass Association and the Fujian Golf Players' Association, Cao is a special government economic researcher. In addition, he is a member of the Fujian provincial committee of the CPPCC.

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China Vitae : Biography of Cao Dewang

Milacron said:

Is below really the situation now ?

This Chinese Billionaire Is Moving Production to the U.S. to Cut Costs | Fortune.com

Click to expand...

Twenty years or so now, just counting ones I have had personal knowledge of.

The driver is much the same as it is here in the US. Very seldom is it nationwide or 'federal'.

State/Provincial and County/City/Prefecture/Municipal governments can, and DO, seize on a 'wealthy' industry - or even individual enterprise - to enact taxes, fees, regulations - that are very specific to that 'cash cow'.

The politicos don't CARE if they kill the goose that lays the golden eggs. They care only that forever and always THEY be the ones in control to decide the fate of each and every goose, golden or otherwise.

Cost of taxes OR regulations get too high, business folds tent.
Not alway even able to survive to move to a more favorable venue.

I think we've seen that movie already, and in theatres closer to home...



Bill

i have heard of Chinese partnership with international company where partner is 80% or less and government is a partner of business with 20% or more
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they charge no taxes but as full partner get % of profits. i have heard of VAT or value added tax but do not know specifics
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i would not believe anything in the news. they lie and exaggerate to the point i do not believe anything they say. obviously if hundreds of millions of Chinese jobs were to come back to USA we would notice it. so obviously news is a lie or a exageration

Been nearly decade since I was in China, but back then business folks were complaining about much higher official tax rates than in the US. The far-higher taxation thing is real; though it's not clear how many pay it. Wages are still low, but rising beyond places like India and Vietnam.

Far as I can tell, their tax system is like ours. Whether you pay the official tax rate depends a whole lot on who you are and what favors you get. China is apparently now second only to the US in the number of millionaires. Just as the Japanese and Arabs in past decades, the Russians in more recent years, they are buying up assets around the world -- sports teams, real estate, companies, etc.

PeteM said:

Been nearly decade since I was in China, but back then business folks were complaining about much higher official tax rates than in the US. The far-higher taxation thing is real; though it's not clear how many pay it. Wages are still low, but rising beyond places like India and Vietnam.

Far as I can tell, their tax system is like ours. Whether you pay the official tax rate depends a whole lot on who you are and what favors you get. China is apparently now second only to the US in the number of millionaires. Just as the Japanese and Arabs in past decades, the Russians in more recent years, they are buying up assets around the world -- sports teams, real estate, companies, etc.

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China has many millionaires who treat their workers fairly badly especially considering it is a communist in theory country. many people also have a 2nd or 3rd home and get rental income from it. being a landlord was considered very very bad in the 1950's how the country has changed