China Opening the West


Just as was done in China's coastal regions over the past several years, the PRC government is now offering income tax incentives so as to attract investment into China's central and western regions. The State Administration of Taxation recently passed a three year, 15% income tax reduction for foreign funded enterprises that establish themselves in China's central and western regions such as Xinjiang, Quinghai, Sichuan provinces. Although there are still other tax incentives in other regions of the country, companies are offered these additional benefits to establish in the west and to take advantage of the plentiful labor pool.

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