China Offers Tax Incentives to Persuade U.S. Companies to Stay

[Landon Caeli]

BEIJING — China said on Thursday that it would temporarily exempt foreign companies from paying tax on their earnings, a bid to keep American businesses from taking their profits out of China following Washington’s overhaul of the United States tax code.

There is, however, a catch: To be eligible, foreign companies must invest those earnings in sectors encouraged by China’s government — including railways, mining, technology and agriculture — according to a statement from the Finance Ministry. The measure is retroactive from Jan. 1 this year, the ministry said.

China Offers Tax Incentives to Persuade U.S. Companies to Stay

 

[CRAZY_CAT_WOMAN]

What do they lose? Nothing . They have very cheap labor, a giving a tax ride off. I'm not really surprise.

 

[TLK Valentine]

What do they lose? Nothing . They have very cheap labor, a giving a tax ride off. I'm not really surprise.

Plus, when you factor in that Donald will no doubt try to offer an even better incentive -- which the govt' can probably ill-afford and will only hurt the US somewhere down the road -- in order to make himself look good, it's pretty much a win-win for China.

 

[TerryWoodenpic]

China thinks things trough for the long term.
Something Trump is incapable of.
But note, China said temporarily.
I do not know how good Trump is at playing Go.
But this is just the first move, of many, ready to be played.

There will come a time when American companies need to repatriate those profit fed investments.
What then....? .... they will be taxed.
But china will retain the new infrastructure.
Paid for by deferred taxation. which they don't need right now.

Clever stuff.

 

[Yonny Costopoulis]

BEIJING — China said on Thursday that it would temporarily exempt foreign companies from paying tax on their earnings, a bid to keep American businesses from taking their profits out of China following Washington’s overhaul of the United States tax code.

There is, however, a catch: To be eligible, foreign companies must invest those earnings in sectors encouraged by China’s government — including railways, mining, technology and agriculture — according to a statement from the Finance Ministry. The measure is retroactive from Jan. 1 this year, the ministry said.

China Offers Tax Incentives to Persuade U.S. Companies to Stay

So more of Trump's businesses will be moving to China.

 

[CRAZY_CAT_WOMAN]

So more of Trump's businesses will be moving to China.

I think Trump prefers China to get United States companies, than Mexico. So it's a win for Trump.

 

[Yonny Costopoulis]

I think Trump prefers China to get United States companies, than Mexico. So it's a win for Trump.

Yes, Trump is still not happy that when he got down on his knees and begged the Mexico president to pay for wall he refused.

 

[Liza B.]

BEIJING — China said on Thursday that it would temporarily exempt foreign companies from paying tax on their earnings, a bid to keep American businesses from taking their profits out of China following Washington’s overhaul of the United States tax code.

There is, however, a catch: To be eligible, foreign companies must invest those earnings in sectors encouraged by China’s government — including railways, mining, technology and agriculture — according to a statement from the Finance Ministry. The measure is retroactive from Jan. 1 this year, the ministry said.

China Offers Tax Incentives to Persuade U.S. Companies to Stay

The whining that ensues in this thread tells us all we need to know.

Are you tired of winning yet, Landon? Because I'm not tired of winning.

 

[TLK Valentine]

The whining that ensues in this thread tells us all we need to know.

Are you tired of winning yet, Landon? Because I'm not tired of winning.

What whining?

 

[CRAZY_CAT_WOMAN]

Yes, Trump is still not happy that when he got down on his knees and begged the Mexico president to pay for wall he refused.

It was before that. When he stopped a company from moving to Mexico. That company ended up sending a lot of their business to China.

 

[Yonny Costopoulis]

The whining that ensues in this thread tells us all we need to know.

Are you tired of winning yet, Landon? Because I'm not tired of winning.

What whinging? I find it humorous that the American president who states that he wants to have business come back to the USA bases has his based in China. And this will like encourage him to move more of his businesses to China. And his base who he sells with "American first" is fine with this.

It is all very humorous.

 

[TLK Valentine]

What whinging? I find it humorous that the American president who states that he wants to have business come back to the USA bases has his based in China. And this will like encourage him to move more of his businesses to China. And his base who he sells with "American first" is fine with this.

It is all very humorous.

Of course, Mr. "Art of the Deal" has to at least pretend to make a deal with a business or two to keep them in the country... after offering them the Moon, stars, and Sun, they'll accept -- for which Donald will tout his success for the eager masses...

...while the business in question quietly lays off employees or outsources a year later, once all the hubbub has died down.