US president Donald Trump’s pledge to cut corporate taxes has triggered a debate across the Pacific about the taxes and fees China levies on businesses and whether those could leave the manufacturing colossus uncompetitive in future.
The attention comes amid a revamp of the country’s tax structures that for now would increase the budget deficit, yet long-term aims to channel more tax revenues to local governments, reducing their unstable reliance on land sales and ad hoc fees to meet budget needs.
Chinese officials are scrutinising Mr Trump’s proposals following pledges to revamp the US tax code and keep manufacturing jobs at home by imposing steep tariffs on imports from China. So far, the only proposal from the White House has been for a “border adjustment tax” to be levied on imports to the US.