Japanese Garden

Chinese foreign investment law and local policies offer many tax breaks and other financial incentives to encourage foreign investment, particularly with respect to Enterprise Income Tax (the equivalent of US corporate tax). Keep in mind that China intends to phase out these favorable policies toward foreign capital over a five-year period in line with its WTO commitments. Nevertheless, it remains unclear whether China will raise FIE tax rates, lower general tax rates, or simply use nationality-neutral standards that will nevertheless disproportionately benefit FIEsNational incentives vary according to how much you are investing and whether your project is located in special economic zones; local incentives vary according to jurisdiction and relative bargaining power. In recent years China